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The siege of Washington, N. C. Much interest is felt in the progressing siege of Washington, N. C., by the Confederates under Gen. Hill, which is increased from the fact that a force of about 10,000 Yankees manured from Newbern, thirty miles, to the relief of the place, was met at Blount creek, seventeen miles from Washington, and defeated by Gen. Pettigrew. The Yankees were attempting to gain Gen. Hill's rear, but after their defeat fled precipitately, cutting down the forest for miles Washington, N. C., by the Confederates under Gen. Hill, which is increased from the fact that a force of about 10,000 Yankees manured from Newbern, thirty miles, to the relief of the place, was met at Blount creek, seventeen miles from Washington, and defeated by Gen. Pettigrew. The Yankees were attempting to gain Gen. Hill's rear, but after their defeat fled precipitately, cutting down the forest for miles in their own rear to impede the progress of our pursuing troops. As the garrison at Washington can no longer receive reinforcements or provisions by the river they will be forced to surrender. A good deal of shelling between our batteries and the gunboats and town batteries has been going on. We have lost only two killed--Jas. McKonnie and --Kelly, both of Wyatt's Virginia artillery. A letter to the Fayetteville (N. C.) Observer gives some account of the progress of the "siege." It says: