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July 2, 1863, The New York Herald

There was some apprehension in Washington yesterday that the army of General Lee might make a line of retreat from Maryland and reach the federal capital before the army of General Meade can intercept it. Some hopes were entertained that General Meade might be able to strike the rebels on the flank, and thus prevent them from reaching Washington. The good fighting qualities of General Meade are relied upon to effect this object. The army wre reported to be willing to suffer any fatigue within the power of human endurance. General Meade has issued a circular, urging upon the commanders of army corps, divisions and brigades to explain to their men the issues’ involved in the coming conflict. Homes, firesides, and domestic altars, he says, are in danger. The enemy is on our own soil; the army which has fought well heretofore, he thinks, if properly appealed to, will now fight more desperately than ever. He authorizes all commanding officers to order the instant death of any soldier who fails to do his duty. All these precautions would indicate not only the approach of a decisive battle, but the earnest and anxious anticipations of the Commanding General that the result shall be a success.

Scouts sent out from Washington yesterday report that no rebels were seen between Frederick and the Potomac, and that certainly none of them were within ten miles of Washington.

A battle took place yesterday at Hanover Junction between the Union cavalry of General Pleasanton and General Stuart force. It lasted nearly the entire afternoon, and resulted in the success of our troops. The rebels lost, according to some reports, four hundred in killed and wounded and six pieces of artillery, and according to others not more than twenty. Our loss is reported at two hundred. The accounts upon this point are evidently conflicting. Our forces occupied York on Tuesday night. Heavy firing was then going on in the direction of Gettysburg. The rebel army was reported to be between that place and Chambersburg.

Heavy firing was heard yesterday afternoon at Harrisburg, which appeared to be in the direction of Carlisle. It was reported that a heavy battle between Generals Lee and Meade was in progress; but at what point was not known. The excitement in Philadelphia continues. A resolution calling upon the President to restore General McClellan to command passed the City Council.

Immense trains of supplies have been sent back across the Potomac by the rebels, the results of Lee’s raid. Despatches from Sharpsburg yesterday state that for the past few days large forces of the enemy have been crossing at that point and moving towards Pennsylvania.

Despatches from Memphis bring news from Vicksburg to the 25th ult., at which time everything was going on favorably as usual. On the 22d General Grant advanced to meet the rebel General Johnston, but could not find his whereabouts. His troops are said to be between Canton and Bridgeport.

We have news from Bermuda to the 23d of some importance. The rebel steamer Lady Davis arrived at St. George’s the day previous, from Wilmington, N.C., with despatches from the rebel government to the British representatives at Bermuda. The Royal Gazette of Bermuda, of the 22d, announces the arrival on board the Lady Davis of Mr. Vallandigham, on his way to Canada. The alleged rebel steamer Lady Clyde, from Greenock, Scotland, via Tayal, had arrived at St. George’s on the 15th ult., and subsequently cleared for Nassau.

The Royal Gazette, of Bermuda, of the 16th ultimo, remarks: — An order from the War Department, Washington, prohibiting the exportation of horses, mules, and all live stock, which of course includes oxen, &c., went into operation on the 30th of May last; and so strictly has this order been enforced, that several vessels, then laden at New York for Barbados, Nassau, and other places in the West Indies, were compelled to reland their cargoes of cattle. We presume that this order will have the effect of reopening our cattle trade with St. Andrews, New Brunswick. We fear, however, that the contractor for supplying the army and navy with beef at this station will be much inconvenienced by this very singular order of the Federal government.

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