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Retaliation Recommended.

--The Washington correspondent of the New York Times writes:

‘ The rebel Government have this week hung a man in Richmond, a loyal citizen of the United States, charged with being a national spy.--The United States Government, last winter, arrested one Smithson, a Washington city banker, on the most indubitable evidence that he was a Confederate spy and communicated treasonable matter daily to Jeff. Davis.--Smithson was consigned to Fort Lafayette, but since the rebel Government has act the example of hanging such offenders, Mr. Smithson's friends in the South will not be surprised, perhaps, to learn that he is made to suffer the same doom. The subject has recently received the attention of our Government, but his decision is not yet announced.

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