On the morning of the seventh the fleet under the command of Captain Goldsborough, attacked that of the enemy, and after a sharp cannonade, the rebel vessels were, with one exception, captured or destroyed. As soon as the naval action ceased, General Burnside landed his troops at the lower part of the island, where they were forced to wade through mud and water; but nothing could retard the valor of these New-England soldiers, who, pressing on toward the centre of the Island, carried the entrenchments and drove the enemy before them. The rebels retreated to the northern end of the island and surrendered as prisoners of war, in number about twenty-five hundred men, with all their stores and implements. The fleet and army subsequently visited Edenton, Pascotank, the Chowan, Neuse, and Roanoke rivers, and planted the National flag over them--visiting nearly the same shores so long ago explored by Lane and his adventurers, and like him returning victorious to the headquarters at Roanoke Island. * * * * * A STORY OF MEXICAN LIFE. 'You are an unbelieving set of fellows, and though you admire my rings, my breastpin, and my studs, and though you willingly accept any stray gems that I occasionally offer you, still you sneer and laugh at my mine; but it is no laughing matter, and now that we are all here together, I suppose I may as well gratify you by telling you all about it. However, as the yarn is a long one, I will first of all put the cigars and the wine within reach, so that you can help yourselves during the recital.