The next day was brilliant. Snow had fallen during the night, and the sun, which arose without a cloud, was reflected back from it with dazzling brightness, while every branch and spray glittered in its casing of ice as though it had been a huge diamond. Before we met at breakfast, the younger members of the party had decided on a sleigh-ride. Even Col. Donaldson malgré old age and rheumatism, found himself unable to resist the cheerful morning and their gay solicitations, and accompanied them. Mrs. Donaldson and I were left alone, a circumstance which did not afflict either of us. Mrs. Donaldson was never at a loss for pleasant occupation for her hours, and Annie had given me something to do in parting.

"Remember, Aunt Nancy, we shall look to you for our entertainment this evening; you shall be permitted to choose your subject. Is not that gracious?" she added, with a laugh at her own style of command, springing at the same moment from the sleigh in which Mr. Arlington had already placed himself at her side, and running up the steps to the piazza, where I stood, that she might give me another kiss, and satisfy herself that she had not wounded the amour propre of her old friend, by speaking so much en reine. I was, in truth, pleased to be reminded of the demand which might be made on me in the evening, while I had time to glance over sketches intended only for myself, and ascertain whether they contained any thing likely to interest others.

A late dinner re-united us, and the fatigues of the morning having been repaired by an hour's rest in the afternoon, our party was more than usually fresh and ready for enjoyment when we met in the evening. I had availed myself of Annie's permission, and selected my subject. It was a crayon sketch of a lovely lake, taken by Philip Oswald, the son of one of my most valued friends. The sketch was made while all around remained in the wilderness of uncultivated nature. Since that day, the stillness has been disturbed by the sound of the axe and the hammer. Upon the borders of that sweet lake, a fair home has risen, from which the incense of grateful and loving hearts has gone up to the Creator of so much beauty. The associations which made this scene peculiarly interesting to me I had long since written out, and now give to the reader under the title of

[LOSS AND GAIN;]

OR, HEARTS VERSUS DIAMONDS.

Winter had thrown its icy fetters over the Hudson, and stilled even the stormier waves of the East River, as the inhabitants of New-York designate that portion of the Harbor which lies between their city and Brooklyn. The city itself—its streets—its houses—all wore the livery of this "ruler of the inverted year"—while in many a garret and cellar of its crowded streets, ragged children huddled together, seeking to warm their frozen limbs beneath the scanty covering of their beds, or cowering over the few half-dying embers, which they misnamed a fire. Yet the social affections were not chilled—rather did they seem to glow more warmly, as though rejoicing in their triumph over the mighty conqueror of the physical world. Christian charity went forth unchecked through the frosty air and over the snow-clad streets, to shelter the houseless, to clothe the naked, to warm the freezing. Human sympathies awoke to new-life, the dying hopes and failing energies of man; and the sleigh-bells, ringing out their joyous peals through the day, and far, far into the night, told that the young and fair were abroad braving all the severities of the season, in their eager search after pleasure. In the neighborhood of Waverley Place, especially, on the evening of the 16th of December, did this merry music "wake the silent air" to respond to the quick beatings of the gay young hearts anticipating the fête of fêtes, the most brilliant party of the season, which was that evening to be given at the house of the ruler of fashion—the elegant Mrs. Bruton.

Instead of introducing our readers to the gay assemblage of this lady's guests, we will take them to the dressing-room of the fairest among them, the beautiful, the gay, the brilliant Caroline Danby. As the door of this inner temple of beauty opens at the touch of our magic wand, its inmate is seen standing before a mirror, and her eye beams, and her lip is smiling with anticipated triumph. Does there seem vanity in the gaze she fastens there? Look on that form of graceful symmetry, on those large black eyes with their jetty fringes, on the rich coloring of her rounded cheeks, and the dewy freshness of her red lip, and you will forget to censure. But see, the mirror reflects another form—a form so slender that it seems scarcely to have attained the full proportions of womanhood, and a face whose soft gray eyes and fair complexion, and hair of the palest gold, present a singular contrast to the dark yet glowing beauty beside her. This is Mary Grayson, the orphan cousin of Caroline Danby, who has grown up in her father's house. She has glided in with her usual gentle movement, and light, noiseless step, and Caroline first perceives her in the glass.

"Ah, Mary!" she exclaims, "I sent for you to put this diamond spray in my hair; you arrange it with so much more taste than any one else."

Mary smilingly receives the expensive ornament, and fastens it amidst the dark, glossy tresses. At this moment the doorbell gives forth a hasty peal, and going to the head of the stairs, Mary remains listening till the door is opened, and then comes back to say, "Mrs. Oswald, Caroline, and Philip."

"Pray, go down and entertain them till I come, Mary"—and seemingly nothing loth, Mary complies with the request.