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The War News.

Our dispatches this morning are exceedingly full, furnishing news from all quarters. In Virginia the great struggle continues, with increasing signs of rebel weakness and corresponding advantage to the Union cause. The great battle of Tuesday evening, which is very fully described, appears to have been one of the most terrible hand to hand struggles of the war, evidently resulting in great damage on Lee. Gen. Sherman has performed an important service in the rear of Lee, in destroying the railroad, locomotives, cars, Commissary stores, etc. There is a report that Gen. Sigel is engaged in a similar manner on the railroad in the direction of Lynchburg, but this needs confirmation.

The morale of Gen. Grant's army seems to be perfect, and it has performed prodigies of valor. The number of prisoners held by him is estimated from four to six thousand. Lee has obtained a less number, and Gen. Sheridan is reported to have recaptured five hundred of these.

At latest advices fighting was going on between Gen. Butler and Beauregard. No decided result had been attained. Another gunboat (the Bermuda) had been blown up on the Appomatox. Gen. Kantz and Col. Spear are believed to have performed effective service on the road below Petersburg.

From General Sherman the news is highly favorable. He has driven the enemy from Buzzard Roost and Rocky Face Ridge.

Another disaster has befallen us on the Red river, in the destruction of several gunboats and transports by a rebel battery twelve miles below Alexandria. There's a report that reinforcements have gone to Gen. Banks.

Our latest dispatches refer to a report that Grant has defeated Lee and captured 20,000 prisoners, but this bears evidence of being a sensation report.