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Exchange of prisoners.

It seems that the Federal Government has at last so far condescended to recognize the Confederacy as a propose negotiations for a general exchange of prisoners. On Monday afternoon dispatches reached this city under seal, addressed to the "Commander-in-Chief" of the Confederate forces, which was immediately sent out to Gen. Lee. It has since transpired that these dispatches relate to a general exchange of prisoners, and it is stated that Maj. Gen. D. H. Hill has been appointed to conduct the negotiations upon our part, and that arrangements will be entered into to effect the desired object. This will be gratifying to those who have friends ted in Northern bastiles.

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