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the Potomac, and that it was not so much reduced as Lee had supposed, and Davis advised Lee to return to Virginia at once. Davis says he sent him all the troops he could spare from Richmond, and could not give him Beauregard's army as he exported. Davis thinks Lee made a mistake going into Pennsylvania, and fears serious disaster if Lee does not immediately return. The tone of his letter was very disparaging. The other letters were unimportant. A rebel mail was also captured by Capt. Dahlgren, at the same time, with many letters, but none of special importance that threw much light on rebel operations. Miscellaneous. The Yankees say that in pressing Bragg in his retreat to Bridgeport they lost 1,000 men. The dates from Port Hudson are to the 1st inst. Banks's supplies were not cut off, and he was still bombarding the place. Gen. Morgan is in Kentucky. He set fire to Lebanon, Ky., on the 5th, and captured the 20th Kentucky (Yankee) regiment. Troops are