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Norfolk, August 31st, 1861.
No damage was done to the Harmony during the battle yesterday, between that little steamer and the Federal steam-frigate Savannah. Whether or not the Savannah was damaged, I cannot ascertain. But it is reported that several of the shells struck her and that she was considerably injured. The fight lasted about one hour, and was witnessed by a large number of the citizens of Norfolk and Portsmouth, who could see the steamers and the fire and smoke of the battle, the explosion of shells, &c., from the tops of the houses.

The confirmation of the report of the disaster at Hatteras causes a profound sensation here. Some of the officers taken prisoners by the Yankees are well-known citizens of Norfolk. It is greatly regretted that the point taken by the Federal troops had not been better prepared with men, guns and ammunition. Now, it has become necessary to get rid of the vandals as quickly as possible.

Gentlemen, who arrived here last night from Newbern, North Carolina, confirm the unpleasant intelligence which has been received by telegraph relative to the result of the battle.

Two men, Charles Spence and Wm. Leary, nailing from Norfolk, and who arrived at N. York in the Federal ship Brooklyn, made their escape and started on foot from the last named city on the 5th of the present month. After walking about 400 miles through forest and field, fording rivers, and suffering great hardships — hunger, thirst, fatigue, and the scorching heat of the sun — they succeeded in reaching here this morning, stopping at Baltimore, going thence to the Eastern shore of Virginia, thence to Cobb's Island, and finally making their way to Norfolk in a small boat, in which some ladies and gentlemen had accrued passage at a high price. They tell of arrests, hairbreadth escapes, and thrilling adventures during their toilsome and painful journey, ‘"homeward bound,"’ and through the enemy's land.

Our city is quiet and is getting an enviable character for good order. The market was well supplied this morning with the varied seasonable productions of this section — prices reasonable.

The troops here and in the vicinity are active, vigilant and ready for battle. Many are talking about an expected fight at no distant point. Some think the abolition hordes will attempt to march up from North Carolina to attack Norfolk and the Navy-Yard.

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