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The war in the Southwest.

Mobile, July 1.
--A special dispatch to the Tribune, dated Grenada, 25th ult., states that Northern papers of the 25th say that Buell was advancing on Chattanooga, and that Morgan (Yankee) was simultaneously advancing on Knoxville ‘"for the relief of East Tennessee."’

A dispatch to the Chicago Tribune says that Gen. Hindman's (Confederate) army in Arkansas numbers from 25,000 to 30,000. The Yankee General Curtis is being reinforced.

Jackson's Tennessee cavalry burnt fifteen hundred bales of cotton, last Thursday, within twelve miles of Memphis. The vote in the municipal election at Memphis was small. No responsible person was a candidate for office.

Jackson, Miss., June 30.--Gen. Chalmers has taken Bolivar, Tenn. Col. Tappen, of Arkansas, says that Gen. Hindman, with 30,000 men, has Curtis completely cornered. The State is blazing with excitement. The battery at Duval's Bluff commands White river, and is supported by 5,000 Confederates. The people along the rivers refuse to trade with the Yankees.

Knoxville, June 30.--Buell's army is rapidly crossing the Tennessee river at Florence, and concentrating at Bridgeport, thirty-four miles from Chattanooga. The enemy crossed a regiment of artillery over Battle Creek yesterday. Gen. Harry Heth has been assigned to the command of the forces at Chattanooga. All quiet towards Cumberland Gap.

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