JULY 9th.—Dry and pleasant.
We have a rumor to-day of the success of a desperate expedition from Wilmington, N. C., to Point Lookout,Md., to liberate the prisoners of war (20,000) confined there and to arm them. If this be confirmed, the prisoners will probably march upon Washington City, and co-operate with Gen. Early, who has taken Martinsburg (with a large supply of stores), and at last accounts had driven Sigel back to Washington, and on the 6th inst. was (by Northern accounts) at Hagerstown, Md. Much excitement prevails there. Lincoln has called for the militia of the surrounding States, etc.
We have British accounts of the sinking of the Alabama, near Cherbourg, by the United States steamer Kearsarge, but Semmes was not taken, and his treasure, etc. had been deposited in France.