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Our army correspondence.

Army Northern Virginia,
August 17th, 1863.
A report from a seemingly well authenticated source, prevailed yesterday, that the Yankees were advancing. Few gave it any credence. Later and official information states that they have all withdrawn to the other side of the river, leaving Gen. Stuart and his cavalry in undisputed possession and "master of the situation," on the hither side.

This movement, news of which comes in so authentic a form, indicates no present intention on the part of Gen. Meade to advance, but the reverse, that his army is badly crippled and demoralized; that he is in no-condition for offensive operations. Such is the sequel of his boasted victory at Gettysburg which has been the source of much despondency to the timid and weak-minded in certain portions of the Confederacy. All accounts from that direction concur as to the weak and demoralized condition of the Yankee army.

I am satisfied from the statement of a respectable gentleman recently escaped from the vicinity of the Yankees that Meade has been reinforced to the extent of several regiments of "contrabands."

The ubiquitous and daring Mosby has made another dash, and penetrated with his men to within five miles of Alexandria capturing near thirty prisoners, and wagons and horses in proportion. He could have gone five miles further with impunity.

A day or two since a portion of the Yankee signal corps were operating at Watery Mountain. Capt. Randolph, with less than half a dozen men, came upon them and captured the whole parts. All but one, however, subsequently made their escape.

It is believed that the Valley is now free from the presence of Yankees. The raiding party that went lately down to Brook's Gap was the same that entered Winchester and were driven out a short time before. They will probably keep a small force in the Lower Valley to prevent rabbis on the Baltimore and Ohio Road, which the Yankees, it is understood, have retired and put in running order.

Gen. Laboden has been made a Major General, and Col. Jackson, who has operate so successfully in Western Virginia recently, has been promoted to the rank of Brigadier General. The promotion of General William Smith Governor elect, to Major-General, was doubtless for the purpose of assigning him to the command of the Department of Henrico, vice Gen. Eliezer, relieved at his own request. The latter will probably be returned to active duty in the field and assigned to the command of a division of the army, monitor more of which there are vacancies to be filled. The change would be appropriate, and doubtless mutually agreeable to Gen' Is Smith and Elzey; to the former an account of his present relations to the people as their Governor elect; to the latter on account of his removal to a more congenial field, where few officer's stand as favorably, and where he has displayed great gallantry since the beginning of this war. Gen. Ewell, than whom there is no more competent judge, is said to entertain a high appreciation of Gen. Eley as an officer.

As the time for closing the mail is hastening I must close, in order that this may be forwarded by to-day's train for Richmond.

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