The New York correspondent of The Times mentions a rumour
current in the North that Mr. Davis has resigned, and that General Lee has been appointed Dictator with the consent of -Congress. No confirmation of the story has been received, but it is certain that a considerable party in Richmond desire the change, and that this is the natural course of revolution. Should the dictatorship be created it will probably lend new 'vigour for a moment, but prove the ultimate cause of destruction. Any State which wishes to yield can do so under pretence that -all legal central authority having ceased to exist, she has regained -the plenitude of her sovereign rights.