POLITICAL AFFAIRS.--At the North, there was much dissatisfaction with the conduct of the war. The debt had become about $2,000,000, 000. In July of this year, paper money reached its greatest depreciation, and it required two dollars and ninety cents in greenbacks to buy one dollar in gold. It was at the time of Grant's repulse from Cold Harbor and of Early's raid. Yet, in the midst of these discouragements, Abraham Lincoln was renominated by the republican party. George B. McClellan was the democratic candidate; he stood firmly for the prosecution of the war, and the maintenance of the Union, but was not in full sympathy with the policy of the administration. He carried only three States. Lincoln had a popular majority of over four hundred thousand. GENERAL REVIEW OF THE FOURTH YEAR OF THE WAR.-- The Confederates had gained the battles of Olustee, [Footnote: This battle ended an expedition fitted out by General Gilmore, at Hilton Head, S. C, to recover Florida. After some success his troops, under General Seymour, advanced to _Olustee_, where (February 20) they met a disastrous defeat and were forced to relinquish much they had gained. The men were afterwards taken to Virginia to engage in more important work.] Sabine Cross Roads, the Wilderness, Bermuda Hundred, Spottsylvania, New Market, Cold Harbor, and Monocacy; had defeated the expeditions into Florida and the Red River country, the two attacks upon Petersburg, and one against Fort Fisher, and yet held Grant at bay before Richmond. They had, however, lost ground on every side. Of the States east of the Mississippi, only North and South Carolina were fully retained. Mississippi, Alabama, Tennessee, Virginia, Georgia and Florida were overrun by the Union armies. The Federals had gained the battles of Pleasant Hill, Resaca, Dallas, Kenesaw, Atlanta, Winchester, Fisher's Hill, Cedar Creek and Nashville. They had captured Fort de Russy, the forts in Mobile harbor, and Fort McAlister, and had taken Atlanta and Savannah. Sherman had swept across Georgia; Sheridan had devastated the Shenandoah, driving its defenders before him; Thomas had annihilated Hood's army; Grant held Lee firmly grasped at Richmond, and the navy swept the entire coast. 1865. THE SITUATION.--The plan of the campaign was very simple. The end of the war was clearly at hand. Sherman was to move north from Savannah against Johnston, and then join Grant in the final attack upon Lee. Sheridan, with ten thousand troopers, had swept down from the Shenandoah, cut the railroads north of Richmond, and taken his place in the Union lines before Petersburg. Wilson, with thirteen thousand horsemen, rode at large through Alabama and Georgia, and at Macon held a line of retreat from Virginia westward. Stoneman, with five thousand cavalry from Tennessee, poured through the passes of the Alleghanies and waited in North Carolina for the issue in Virginia. [Illustration: SHERMAN'S MARCH.]