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--It is said to be rumored in Washington that the order in relation to the exchange of prisoners which has been issued from the headquarters of the Federal army well speedily lead to a discharge of all the prisoners of war held by the Federal Government and the Confederates. Such an arrangement would be a very convenient one for she Federalists. We have probably about ten prisoners' to their one, and they are trying our gallant privateers for their lives. We appealed that the Confederate Government attend to keep the best pledges possible in it hands to prevent the execution of Lincoln threats to treat our privateers as pirates. President Davis has already assured him that he shall pay for life, and he is undoubtedly man to keep his word. Nothing else will prevent the execution of Southern men in Northern prisons, and hence we should always keep the best of the Federal officers and men as hostages for the good conduct of the many. Not a hair of their heads should be touch, not even an insulting word or look ad to them, so long as the despot at Washington adheres to the rules of civilized warfare; but when he departs from these-- an eye for an eye, a tooth for a tooth, a life be a life."

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