THE Otago Daily Times. "Inveniam viam aut faciam." DUNEDIN, FRIDAY, DECEMBER 26.

Otago Daily Times, Issue 318, 26 December 1862, Page 4

THE Otago Daily Times. "Inveniam viam aut faciam." DUNEDIN, FRIDAY, DECEMBER 26.

The probability we pointed out of the American news received via California being ex aggerated and incorrect, is confirmed by the news brought by the English mail. It is certain, however, that the Confederates have received a check in Maryland, not so much, however, owing to any military superiority of the Federe.ls,as from the disinclination of Maryland to compromise itself by openly joining the Southerns, and so far giving a negative support to the Federals. MClelian seems, by extraordinary efforts, to have collected a numerous force to repel the enemy; and an irregular battle took place at Ilagerstown, but was not attended with the great advantages to ihe Federals reported by the Californian papers. But it appears pretty clear that the section of the Confederate army present at this engagement had the worst of ;t. The great collision between the opposing forces took place at Antietam Creek, as previously reported, and according to all accounts was one of the most sanguinary struggles during this sanguinary, war. M'Lellan admits the loss of from 6,000 to 10,000 men, and the resuft of the battle was very doubtful. The position oi the Federal army appears to have beisn at one time exceedingly critical, and but; for the opportune arrival of night, it is, probable the Confederates would have achieved a victory which must have all but annihilated M'Clellan's army and put an end to the'war. The Confederites retired, but were not defeated, and M'Clellan himself claims the victory in but feeble and ambiguous terms. The carnage was fearful, and the aggregate loss of the two armies is estimated to be close upon 30,000

men The capture of Harper's Ferry by the Confederates is fully confirmed, and we have also an account of a brilliant exploit by the Confederate General Stuart, who by a well concocted system of strategy succeeded in making a raid into Maryland and Pennsylvania, capturing one or two towns, and. securing a large quantity of stores much required by the Confederate Army. This coup of General Stuart's is one of the most singular episodes of the war, for he appears i v.o have made a complete circuit of| the Federal Army, and achieved all his successes without his /presence being even suspucited by M'Clellan.; On all hands it is evident that the Confederates have shown superior st. "ategy and greater pluck than their opponents,. and this superiority has been achieved under severe difficulties. Want of provisions, and short supplies of munitions of war appear' to have been only a part of the dispiriting influences with which the Southern Army, has had to; contend. So far it is difficult to*; say which side can claim the advantage in a. military point of view. The Federals have certainly not achieved any material success,, and the Confederates appear to be as much,, if not more, imbued with the spirit of resistance as ever. It is pretty clear that if the^ question at issue between the combatants is tobe decided at all, it will not be accomplished by force of arms. General Butler is fully confirming his; already odious reputation. Whatever doubts may have existed as to the real tenor of his celebrated order respecting the ladies of New Orleans, they must now give way, and the execrable character of the perpetrator^ of such revolting cowardice, be fully admitted. General Butler was shut up in 'New Orleans, which he continued to rule with a rod of iron; but he was evidently uneasy; the Confederates talked about, and appeared likely to accomplish, the driving out of the invading force from their city, and General Butler proclaimed his intention, in case of being invested- and compelled to evacuate New Orleans, to leave it a city of ashes, and prelude the conflagration by handing over the city to the uncontrolled license or his troops. Comment upon such conduct is needless, and bad, indeed, must be thecause which depends for its support upon men~ who are dead to every feeling of humanity. But there is amidst all these horrifying de- - tails, a glimpse of hope that the struggle iai drawing to a clo*e. Already the seeds of dis- 1 affection .and impatience are beginning 'i to fructify in the Federal Councils. President; Lincoln holds his position, and,.,j popula'ity.by a thread, which is straining, and will-soon, snap asunder. He has played bis last card—the emancipation of the slaves of the Confederate States, but it wtll prove I a futile measure. It is impotent under pre- I sent circum stances, and can only, as it has t

I already done, provoke" a spirit of retaliation jon the part of the Southerners. . There was only one thing needful to render the gulf separating the two seotitius of the Union, utteily impassable ; and Lincoln's proclamation has accomplished it.. Nothing but the exhaustion of one or both of the belligerents can put an end to the struggle ; as to the restoration of the Union, it is impossible.