On December 17th, the steamer Chesapeake, plying between New York and Portland, was seized on her passage to the latter place, when about twenty miles northeast of Cape Cod, by sixteen of her passengers, who represented themselves as belonging to the Confederate States. The captain was put in irons, one of the engineers killed and thrown overboard, and the first mate wounded. The crew and passengers, with the exception of the first engineer, retained to manage the steamer, were subsequently put ashore in a boat, and the Chesapeake sailed to the eastward. Upon the reception of the news in the United States, a fleet of cruisers started in pursuit, and on the 17th the Chesapeake was captured by the Ella and Anna, in Sambro harbor, Nova Scotia, and, with a portion of her crew, was carried to Halifax and delivered to the authorities. The prisoners were released by a mob, but the Chesapeake was subsequently restored to her American owners by an order of the chief colonial tribunal. The number of vessels captured by the several squadrons, from the commencement of the war to November 1, 1863, was one thousand and forty-five, valued at thirteen millions of dollars. During the same period the rebels had destroyed or captured one hundred and eighty-four Federal vessels, valued at fifteen millions of dollars. THE FIELD OF OPERATIONS IN 1864. At the beginning of the year 1864, the authority of the United States Government—established by the dauntless courage and determined valor of the armies of the Union—extended over a very large portion of the territory which had been controlled by the rebellion. The capture of Vicksburg and Port Hudson had opened the navigation of the Mississippi river. The State of Missouri had been redeemed, and the rebel power had been broken in Arkansas. From Kentucky and Tennessee the rebel flag had been driven out, by the victorious banner of the Republic. In Florida, in the Carolinas, and in Southern Virginia, the arms of the Union had effected a permanent lodgment. The mouth of the Rio Grande had been closed, thus cutting off an important channel of rebel communication with foreign markets, and with disloyal traders at the North. In Louisiana the power of the Government was growing stronger, day by day. Victory, moreover, had strengthened the hands and hearts of the patriots at the North, soldiers as well as civilians. The army and the navy were in excellent condition, and the War Department felt justified in making a reduction of upwards of two millions of dollars, in its estimate of military and naval expenditure for the next year. Thus, in every particular, the condition of the country seemed much improved, while the prospects for the future were full of comfort and promise. Important work yet remained to be done: sacrifices were yet to be made. But the work was enjoined by a sacred sense of duty, and the loyal people of the United Slates were ready to make any and every sacrifice that might be