During the day we got good observations with which our soundings agreed; and at sunset our position was sixty miles due east of the entrance to Wilmington river, off which place were cruising a strong squadron of blockading ships. The American blockading squadron, which had undertaken the almost impossible task of stopping all traffic along 3,000 miles of coast, consisted of nearly a hundred vessels of different sorts and sizes--_bonâ-fide_ men-of-war, captured blockade-runners, unemployed steam-packets, with many other vessels pressed into government service. Speed and sufficient strength to carry a long gun were the only requisites, the Confederate men-of-war being few and far between. These vessels were generally well commanded and officered, but badly manned. The inshore squadron off Wilmington consisted of about thirty vessels, and lay in the form of a crescent facing the entrance to Cape Clear river, the centre being just out of range of the heavy guns mounted on Fort Fisher, the horns, as it were, gradually approaching the shore on each side; the whole line or curve covered about ten miles. The blockade-runners had been in the habit of trying to get between the vessel at either extremity; and the coast being quite flat and dangerous, without any landmark, excepting here and there a tree somewhat taller than others, the cruisers generally kept at a sufficient distance to allow of this being done. The runner would then crawl close along the shore, and when as near as could be judged opposite the entrance of the river, would show a light on the vessel's inshore side, which was answered by a very indistinct light being shown on the beach, close to the water's edge, and another at the background. These two lights being got into a line was a proof that the opening was arrived at; the vessels then steered straight in and anchored under the Confederate batteries at Fort Fisher. More vessels were lost crawling along this dangerous beach than were taken by the cruisers. I have seen three burning at one time, for the moment a vessel struck she was set fire to, to prevent the blockaders getting her off when daylight came.