We now return to trace the progress of events in Upper Canada. After the British disasters on Lake Erie, and at Moravian Town, Sir George Prevost instructed Vincent to fall back on Kingston, abandoning the western peninsula to the enemy--a desperate resolve, only to be adopted in the last extremity. At a council of war held at Burlington Heights, however, it was wisely decided by Vincent and his officers to stand their ground as long as possible. Colonel McClure, the commandant of the American force, was strongly posted at Twenty Mile Creek, and his foraging parties ravaged the country, and pillaged the inhabitants. The season for active operations in the field having now passed, the Canadian militia were dismissed to their homes with instructions to hold themselves in readiness for immediate action should necessity demand their aid. Zenas Drayton had returned to The Holms, quite recovered of his wound and covered with glory by the distinction it had conferred upon him. He strode about with a martial air, to the undisguised admiration of the maids of the household and of all the damsels of the neighbourhood. His father's eyes followed him sometimes with a look of pride, but oftener with one of glistening wistfulness, for in these troublous times pre-eminence of merit was pre-eminence of peril. But Kate lavished all the love and homage of her woman's heart upon her brother, as the ideal hero of her dreams. The lad was in a fair way to be spoiled, if he was not also pretty sure to have the conceit taken, out of him in the stern school of adversity. One evening, early in December, the family were sitting around their kitchen fire, which snapped and roared up the wide chimney throat as merrily as though such a thing as war had never been known. The squire and Zenas sat on opposite sides of the hearth comparing the old soldier's reminiscences of the Revolutionary War with the boy's recent military experiences. Between them sat Kate as she had sat on that memorable evening, more than a year before, on the eve of the fatal fight of Queenston Heights. How much she had lived in that short time! The outbreak of the war had found her a light-hearted girl; she had now the graver mien and sometimes the thought-weighted expression of a woman. But to- night, a look of happy contentment rested on her face an she gazed musingly on the glowing embers, or occasionally took part in the conversation of her father and brother. Suddenly was heard without the fierce harking of the mastiff watch-dog, which as suddenly subsided and was followed by a quick, joyous yelp of recognition. Shuffling feet were then heard in the outer kitchen, stamping off the snow. "Who can that he?" asked the squire. "Some of the neighbours, I suppose," said Kate, for the hospitable hearth presented rare attractions to the rustic swains of the vicinity. "Some of Kate's admirers I should say," laughed Zenas, as he rose to open the door, "only they don't hunt in couples."