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From Portsmouth.

[special Correspondence of the Dispatch.]
Portsmouth, Va., May 28, 1861.
The rumor here yesterday was that the vessels of the Baboon stopped off Newport News to water, and then proceeded up James River. Four of the steamers were seen yesterday morning from the top of the Hospital steaming it in that direction. There were large volumes of smoke in the direction of Old Point and Hampton. Some say that the people of Hampton have set fire to their town; others that the outside buildings at Fort Monroe have been destroyed. Either needs confirmation.

On the 24th, the Quaker City appeared off Cape Henry beach, and attempted to land — A portion of a cavalry company under Capt. Fentress, of Princess Anne, made their appearance. At this she fired several shots which passed within less than five feet of them, but no one was hurt.

Now that cotton cannot be exported except through a Southern port, Yankee cupidity will experience deeper chagrin than ever, and thus has superadded a thousand fold stimulus in the libidinous warfare in which it is engaged to sustain King Commerce.

The sceptre of this Northern despot — which has been sustained hitherto by Southern wealth, by the products of Southern soil — must depart from this Northern Judah; for the basis upon which its power was reared, and by which it has been upheld, has been made to crumble into ruin by its own folly.--No more shall the white fields of the South laugh and sing in unison with the rumbling mill-music of a ready and ungrateful Lowell. There, the cheerful hum shall be hushed, and the motion of the spindle shall give place to the silence and stillness of desolation. It will then be, indeed, ‘"water, water all around, but not a drop to drink."’

Yesterday evening I saw two friends just returned from Sewell's Point. All was quiet there, and upon the broad expanse between it and the Sebastopol of the baboon, three steamers in sight — and the immense volume of smoke still rising and ascending on high.

Chief Engineer Michael Quinn is very much slandered in the Northern news in the Dispatch of yesterday. He is guilty of no such act as he is there charged with. Mr. Quinn is from Norfolk, and is now on duty at the Navy-Yard here. He had been ordered to sea, but got leave of absence for a week and availed himself of the privilege of resigning and sloping by the first favorable opportunity. He is a gentleman of capacity — skilled in his profession — and a bond fide acquisition to the Confederate States.

Jas. W. Owen, whose name is on the Black List of 75, comes out in a card this morning — asks for forgiveness for voting for rejection of the Ordinance — says he has found out better office — that he is for the State, and hopes the people of Virginia will not believe he would wrong his mother for his right arm. I believe he is sincere.

Old Dominion.

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