The fire raged hotly on both sides, the opposing batteries moving around each other with the skill, ease and dexterity of knights in a tournament. The Merrimac, though the strongest, did not move with the freedom of her antagonist; hence the Monitor had the advantage, taking choice of position. At a quarter before twelve o’clock, the Merrimac was in full retreat, heading for Sewall’s Point, and chased for a few minutes by the Monitor. The Merrimac had evidently suffered to some extent, and it was thought at one time that she was sinking. After she got safely under the guns of the rebel battery at Sewall’s Point, she stopped and signalled for help from her consorts, who were beating a retreat. Subsequently two tug-boats or gunboats went alongside, took her in tow, and proceeded to Norfolk. This ended the combat. Toward the close of the engagement, Lieutenant Worden was standing in the pilot-house, when a percussion shell struck the turret, and exploded. The openings for sighting outside objects, through one of which Lieutenant Worden was looking, allowed the fine dust and splinters to enter, injuring his eyes. Almost immediately afterward the same thing occurred, and this second injury rendered him completely blind, and he was compelled to retire below. It was feared that he was permanently injured in this gallant encounter, but after careful treatment his sight was restored, and he was again ready for duty. This remarkable encounter between two iron-clad vessels was regarded with the greatest interest throughout Europe, where its importance to the questions of naval architecture and warfare was fully appreciated and understood. It had not only a direct bearing upon the construction and working of floating batteries, but it demonstrated that a new engine of war had been introduced that might render valueless for effective defence all the land batteries against which these iron antagonists might be brought to bear. The destruction of the Cumberland and Congress on the first day of the engagement, and the triumphant condition in which the Merrimac had retired from the heavy broadsides of the Federal frigates, which would almost have destroyed an ordinary vessel, created intense excitement in all the seaport cities of the North. The loud boasts of the rebels over the strength, sailing qualities, and impregnable character of their vessel, apparently justified by the events of March 8th, led to an apprehension that she might be successful in running out to sea, and visiting Philadelphia, New York, Boston, and other cities, which were entirely unprepared for a sudden attack. The appearance of the Monitor alongside of the Minnesota, on the morning of the 9th, was altogether unexpected, and the rebel commander evidently knew that he had no common foe with which to deal. CAPTURE OF JACKSONVILLE, FLA. MARCH 12, 1862.