by Gideon Welles

December 31, Thursday. The year closes more satisfactorily than it commenced. The wretched faction in the Free States which makes country secondary to party had then an apparent ascendency. They were dissatisfied with the way in which the War was conducted, — with what they called the imbecility of the Administration, — and, uniting with another faction which is opposed to the War, they swept the States. The country understands them better than it did. The War has been waged with success, although there have been in some instances errors and misfortunes. But the heart of the nation is sounder and its hopes brighter. The national faith was always strong, and grows firmer. The Rebels show discontent, distrust, and feebleness. They evidently begin to despair, and the loud declarations that they do not and will not yield confirm it.

The President has well maintained his position, and under trying circumstances acquitted himself in a manner that will be better appreciated in the future than now. It is not strange that he is sometimes deceived and fails to discriminate rightly between true and false friends, and has, though rarely, been the victim of the prejudices and duplicity of others.

The Cabinet, if a little discordant in some of its elements, has been united as regards him. Chase has doubtless some aspirations for the place of Chief Executive, which are conflicting. Seward has, I think, surrendered any expectation for the present, and shows wisdom in giving the President a fair support. Blair and Bates are earnest friends of the President, and so, I think, is Usher. Stanton is insincere, but will, I have no doubt, act with Seward under present circumstances.

by John Beauchamp Jones

            DECEMBER 31ST.—Yesterday the Senate passed the following bill, it having previously passed the House:

            “A Bill to be entitled An Act to put an end to the exemption, from military service of those who have heretofore furnished substitutes.

            “Whereas, in the present circumstances of the country, it requires the aid of all who are able to bear arms, the Congress of the Confederate States of America do enact, That no person shall be exempted from military service by reason of his having furnished a substitute; but this act shall not be so construed as to affect persons who, though not liable to render military service, have, nevertheless, put in substitutes.”

            It was preceded by discussion, yet only two votes were cast in the negative. Mr. Wigfall, it is said, was strangely indisposed; however that might be, his speech is represented as being one of the best ever delivered by him.

            To-morrow the President throws open his house for a public reception : his enemies allege that this is with a view to recovering popularity

            It rained during the whole of this day. Nevertheless, the Jews have been fleeing to the woods with their gold, resolved to take up their abode in the United States rather than fight for the Confederate States, where they leave in the ranks the substitutes hired by them.