The Sun.
London, England, 1864-12-19 00:00:00

RELATIONS WITH OTIIEIt STATES,

close.

THE ATLANTIC TELEGRAPH.
I learn with much satisfaction that the noble
design of a telegraphic communication between the
Eastern coast of American and Great Britain bee
been renewed, with full expectation of its early
accomplishment.
Thus it is hoped that with the return of domestic
peace, the country will be able to resume, With
energy and advantage, her former high career of
commerce and civilisation. Our very popular and
estimable representative in Egypt died in AP"
!est.

An unpleasant altercation which arose between
the temporary incumbent of the office and the Gn;
vernment of the Pacha, resulted in a suspension °
intercourse. The evil was promptly corrected °/1
the arrival of the successor in the Consulate, and
our relations with Egypt, as well as our relations
with Barbary powers, are entirely satisfactory.
The rebellion which has long been fisgrant is
China, has at last been suppressed with the co-°7B°
rating good offices of the Government and of t",
other Western commercial States. The judicla:
consular establishment has become very difficult el):
onerous, and it will need legislative requisition t
adapt it to the extension of our commerce, and to
the more intimate intercourse which has been Doti:
tuted with the Goverment and people of that 05

empire.
China seems to be accepting with hearty g°°cl
will the conventional laws which regulate cowl:net.
cial and social intercourse among the Western
nations.

Owing to the peculiar situation of Japan and the
anomalous form of its Goverment the action of at'
empire in performing treaty stipulations is inc°ll:
stant and capricious. Nevertheless, good progre6
has been effected by the Western Powers mooing
with enlightened concert. Our own pecuniary
claims have been allowed or put in course of settle"
ment, and the Inland Sea has been re-opened t
commerce.

There is also reason to believe that these Pr°:
ceedings have increased rather than dimioished ,
friendship of Japan toward the United States.
INSURRECTIONARY PORTS.
The ports of Norfolk, Fernaudina and Pensacola base
been opened by proclamation. It is hoped that foreiSi:
merchants will now consider whether it is not ea" t':(l's
more profitable to themselves as well as just to the Tirit to
States to resort to thote and other open ports than it iso..
pursue through many hazards, and at vast cost, a coll,by
band trade with other ports which are closed, if not
actual military occupation, at least by a lawful and tirdc„Na
blockade.

SLAVE TRADER.
For myself, I have no doubt of theS power and atitY°f °
executive, under the law of nations, to exclude enenueB
the human race from an asylum in the United States.
If Congress; should think that proceedings in such catl
lack the authority of law, it ought to be further regal
31
by it. I recommend that provision be made for efloctu..ll;
preventing foreign slave traders from acquir:ng
and facilities for their criminal occupation in our COulltr,'
REBEL BELLIC4BREN CY

rY-
It is possible that if it wore a now and open questioll,
maritime Powers, with the light they now enjoy, wct,..
not concede the privileges cf a naval belligerent to the 1-ti
surgents of the United States, destitute es they ere':tir.
always have been, equally of ships and of ports and "-
Weirs.
Disloyal emissaries have been neither less assiclueu:i-0,3
more successful during the last year than they vNle
to
that time, in their efforts under favour of that privilleg'
embroil our country in foreign wars. States toThe desire and determination of the maritime 11-
defeat that design are believed to be as sincere as, 8/3' -a
not be more earnest than, our own.

Nevertheless unforcestiPnLpolitical
N:
northernespeclally in Brazilian and British ports, and on the
boundary of the United States which 1:°,0
required
and are likely to continue to require
and
practice of constNnt vigilance, and a iv'! ,fs
conciliatory spirit on the part of the United tao:
as well as of the nations concerned, and their Govern
lellita
Commissioners have be en appointed under the treat,' °to.,
Ifficulties have arisen,-
Great Britain on the adjustment of the claims of tl3° .11 ja
son's Bay and Puget Sound Agricltural orepani°tila
Oregon, and are now proceeding to the execution ca
trust assigned to theme
THE clAx 41DA BORDER. ,i cat (0
In view of the insecurity ,of life in the region ("va

Mexico continues to be a theaf re of civil Wet
While our political relations with that country have
undergone no cnange, we have at the same titra
strictly maintained neutrality between the belli-

gerents.
At the request of the States of Costa Rica and
Nicaragua, a competent engineer has been authorised
to make a survey of the River San Juan. It is a
source of much satisfaution that the difficulti'3
which for a moment excited some political aPPre'
henaions and c ruscd a closing of the inter-
oceanic transit route have been amicably ad:
justed, and that there is a good proaP-e"
that the route will soon be reopened with an in-
crease of cipacity and adaptation. We could not ex-
aggerate either the commercial or political impart-
mace of that great improvement. It would be do
ing injustice to an important South American State
riot to acknowledge the directness, frankness, and
cordiality with which the United States of Colour
his have entered into intimate relations with t 13113
Government. A Claims Convention has been Oa°
stituted to complete the unfinished work of the "a
which closed its session in 1861.
The new liberal constitution of Venezuela Will
gone into effect with the universal acquit scenca e
the people, the Government under it has been re'
cognised, and diplomatic intercourse with it bag
been opened in a cordial and friendly spirit.
The long-deferred Ayes Island claim has bee°
satisfactorily paid and discharged. Mutual Par'
ments have been made of the claims awarded by Ole
late joint commission for the settlement of chair°
between the United States and Peru.
An earnest and cordial friendship continues f°
exist between the two countries, and such elf)rts 59
were in my power have been used to remove
misunderstanding, and avert a threatened war
between Peru and Spain. Our relations are Of the
most friendly nature with Chili, the Argentine Re-
public, Bolivar, Costa R'ca, Paraguay, San S-11°'-
dor, and Hayti. During the pet yeai no differenc°
of any kind have arisen with any of these Re Peb:
lice; and, on the other hand, their sympathies wit'
the United States are constantly expressed wit'
cordiality and earnestness.

The claim arising from the seizure of the narVi
of the brig Macedonia in 1821 has been paid in fill'
by the Government of Chili.

Civil war continues in the Spanish part of San
Domingo, apparently without prospect of an o'l/

Official correspondence has been freely opened
f
with Liberia, and it gives us a pleasing viol,
social and political progress in that Republic.
may be expected to derive new vigour from /We.
dean influence, improved by the rapid disappear'
ante of slavery in the United States.
I solicit your authority to furnish to the Republic
a gunboat at a moderate cost, to be reimbursed t°
the United States by instalments. Such a vessel le
needed for the safety of that State against the native
African races, and in Liberian hands it would be
more effective in arresting the African slave trade
than a squadron in our own hands. The possessice
of the least organised naval force would stimulate 3
generous ambition in the Republic, and the 000.4
deuce which we should manifest by furnishing It
would win forbearance and favour toward the colony
from all civilised nations.
The proposed overland telegraph between Areeric!
and Europe, by the way of Behring's Straits and
Asiatic Russia, which was sanctioned by Congress
at the la3t session, has been undertaken, under very
favourable circumstances, by an association of
American citizens, with the cordial goodwill and
support as well of this Government ns of those 0'
Great Britain and Russia.
Assurances have been received from most of the
South American States of their high appreciation
of the enterprise, and their readiness to co-operate
in constructing lines tributary to that world-en'
circling communications.

tbe Canadian border by recent assaults and depredations
eolonlitted by inimical and desperate persons who are har-
,94red there, it has been thought proper to give notice that
4
zter the expiration of six months, the period conditionally
,11plated in the existing arrangements with Great Britain,
t", united States must hold themselves as liberty to. increase
ueir naval armament or the Lakes, if they shall find that
proceeding necessary. The condition of the border will neces-
holY come into consideration in connection with the ques-
of continuing or modifying the rights of transit from
Irada through the United States, as well as the regulation
:imposts which were temporarily established by the Reci-
w,,_Y Treaty of June 5, 1854. I desire, however, to be
`laderstood while making this statement, that the colonial
;111thorities are not deemed to be intentionally unjust or tin-
itillerldlY towards the United States, but on the contrary,
re is every reason to expect that with the approval of
~,s7 Imperial Government they will take the necessary mut,.
-,eB 10 prevent new incursions across the border.

EMIGRATION.
The act passed at the last session for the encouragement
.f
emigration, has, as far as was possible, been put into
aeration.
It seems to need amendments which will enable the
°facers of the Government to prevent the practice of frauds
'Nast the immigrants while on their way and on their
!that in the ports, so as to secure them here a free choice
"I avocations and places of settlement.
liberal disposition toward this great national policy is
manifested by most of the European States and ought to be
reciprocated on our part by giving the immigrants effective
Ilatlonal protection. I regard our immigrants as one of the
principal replenishing streams which are appointed by Pro-
'detee to repair the savages of internal war, and its wastes
"'national strength and health.
All that is necessary is to secure the flow of that stream
'll its fulness, and to that end the Government must in
tv
.2 'rY way make it manifest that it neither needs nor de-
'"Obs to impose involuntary military service upon those who
tOl1-le from other lands to cast their lot in our country.

FINANCES.
The financial affairs of the Government have been sue-
= „ "'Wally administered.
Daring the last year the legislation of the last session of
o
211gress has benefioally effected the revenue, although
*4olcient time has not yet elapsed to experience the full
etre
et of several of the provisions of the acts of Congress
t 'lllPosing increased taxation.
The receipts during the year, from all sources, upon the
"818 of warrants signed by the Secretary of the Treasury,
hiding loans and the balance in Treasury on the first day
fly. 1863, were 1,301,796,007 dole 62c, and the aggro-
!▪ Me. disbursements upon the same basis were 1,298,056,101
4013 19c, leaving a balance in the Treasury as shown by
IPI %Tants of 96,739,905 dole 730. Deduct from these amounts
the amount
amount of the principal of the public debt redeemed, and
a atnount of issues in substitution therefor, and the actual
48411 operations of the Treasury were —Receipts, 884,076,646
4
°lB 77c ; disbursements, 865,234,087 dole 860, which leaves
'▪ emit balance in the treasury of 18,842,558 dols 71c.
100 f the receipts there were derived from customs
-,316,152 dole 99c, from lands 588,333 dots 29c, from
Oct taxes, 475,648 dole 96 cents, from internal revenue
;v9,741,134 dole 10 cents, from miscellaneous sources
1,61),448 dolts 10 cents, and from loans applied to actua
ItPetiditures, including former balance, 623,443,920 dols
tr. There were disbursed for the civil service 27,505,599
1;18 47c, for pensions and Indians 7,517,930 dols 97c, for the
ar Department 60,791,842 dots 97c, for the Navy Depart.
6:11t 85,733,292 dols 790, for interest of the public debt
;u85,421 dots 69c; making an aggregate of 865,234,037
Z 8 860, and leaving a balance in the Treasury of
842,558 dole, 71c, as before stated.
For the actual receipts and disbursements for the first
ttll4l4rter, and the estimated receipts and disbursements for
!be three remaining quarters of the current fiscal year, and
1:6 general operations of the Treasury in detail, I refer yOu
the report of the Secretary of the Treasury,
the Concur with him in the opinion that the proportion of
'll4lot:toys required to meet the expenses consequent upon
e War, derived from taxation, should be still further in-
reased ; and I earnestly invite your attention to this sub-
eret to the end that there may be such additional legislation
:a shall be required to meet the just expectations of the
4oretary.

THE PVBLIO DEBT,
4 the Ist day of July last, as appears by the books of the
1
relsury, amounted to 1,740,690,189 dols, 49 cents.
llrobably, should the war continue for another year, that
field may be increased by not far from 500 millions.
gas it is, for the most part, by our own people, it has
ame a substantial branch of national though private pro-
ty,
LP,O.r obvious reasons the more nearly this property can
i7e distributed among the people the better. To favour such
Iletal distribution greater inducements to become owners
m, perhaps with good effect, and without injury, be pre-
gellted to persons of limited means.
With this view I suggest whether it might not be both
Ilkdient and competent for Congress to provide that a
Ited amount of some future issue of public securities
mii;hbe held by any bona fide purchaser, exempt from
cation and from seizure for debt under such restrictions
.41,4
4 limitation as might be necessary to guard against
4,
IBe of so important a privilege, that this would enable
ent persons to set aside a small.annuity against a pos-
luie day of want.
..Privileges like these would render the possession of such
`%•rities to the amount limited most desirable to every
person of small mean who might be able to secure enough
totthe purpose.
dell an
great advantages of citizens being creditors as
aa debtors, with relation to the-publiu (few, is Wi-
ll°
118. Men readily perceive that they cannot be much
itetessed by a debt which they owe to themselves. The
bite debt, on the Ist day of July last, although some-
ebat exceeding the estimate of the Secretary of the Tres-
nude to Congress at the commencement of last sea-
t 41,1A11s short of the estimate of that officer made in the
seeding December, as to its probable amount at the be-
CtliDg of this year, by the sum of 3,996,079 dols 33c. This
0;,4 exhibits a satisfactory condition and conduct of the
,'Qrations of the Treasury.

BANKS.
toTile 11 ational banking system is proving to be acceptable
I:4Ditalists and to the people. On the 25th day of Nevem-
11111*' 684 National Banks had been organised, a considerable
%illber of which were conversions from State banks,
t4l,4;lltes from the State system to the National system are
,i!j'icll3, taking place, and it is hoped that very soon there
tr` be in the United States no banks of issue not autho-
;'! by Congress, and no bank-note circulation not secured
he Government, That the Government and the people
It derive general benefit from this change in the banking
43tenis of the country, can hardly be questioned.
ICIle national system will create a reliable and permanent
44W:ice in support of the National credit, and protect the
tt 11e against losses in the use of paper money. Whether
kollot any further legislation is advisable for the suppres •
kittleo.l State bank issues, it will be for Congress to deter-

illtl;eerns quite elm that the Treasury cannot be satisfac.
/ conducted unless the Government can exercise a res-
k,,l4lllg power over the bank-noto circulation of the

"%FIR DEPARTMENT.
tjhe report of the Secretary of War and tha aocompany.•
tJ 40eurnents will detail the campaigns of the armies in
(11: field since the date of the last annual message, and also
/Ii• °Aerations of the several administrative bureaus of the
4! Department during the last year.
114;! Wlll also specify the measures deemed essential for the
Ititl.°llal defence, and to keep up and supply the requisite
4-.
eats
force. The report of the Secretary of the Navy
Itte4ta a comprehenbive and satisfactory exhibit of the
lre of that department of the naval service•
tle a subject of congratulation and laudable pride to our
tt;ltYtuen, that a navy of such vast proportions has been
Itt'llieed, in so brief a period with so much Efficiency and
zees.

THE NAVY,
The general extent of the navy, including vessels under
-1111ttnction of the Ist December, 1864. shows a total of
'?essels, carrying 4,610 guns,, and 510,396 tons, being
it,;:otual incre ise during the year over and above all
12, ell by shipwreck or in battle of 83 vessels, 167 guns, and
'p7 tons.
Ipti4e total number of men at this time in the naval service
ty-,4,(ling officers is about 51,000. There have been captured
tittle navy during the year 324 vessels, and the whole
14Zer of naval csptures since hostilities commenced is
14.6, Of which 267 are steamers. The gross proceeds aria-
kt trOM the sale of condemned prize property, thus far
tt.:tted, amounts to 14,396,250 dole; 51c. A large amount
t 1;1401 proceeds is still under adjudication and yet to be
trotted.
dZile total expenditure of the Navy Department of every
tiZiPtion, including the cost of the immense squadrons
141ifillavo been called into existence from the 4th of March,
to the Ist of November, 1864, are 238,647,262 dols 36c.
t cur favourable consideration is invited to the various
t tr"inendatims of the Secretary of the Navy, especially in
tits -(1 to a navy-yardL and suitable establishments for the
144itttliction and repair of iron vessels and the machinery
tityltnnature for our ships, to which reference was made in
message.
t,..111' attention is idea invited to the views expressed
1t1" report in relation to the legislation of Congress
t 4 lan session in respect to prize on our inland waters•
11 to concur in the recommendation of the Secretary
hi
stile propriety of creating the new rank of Vice-Admiral
lipir naval service. Tour attention is invited to the re-
-46,41 the Postmaster-General fora detailedaceount of the
"Attie
_
ata and financial condition of the Post-office Depart-

Th POSTAL SERVICE,
kkk4 Postal revenues for the year ending June 30, 1864,
il2,e444ted to 12,450,253 dole 78c, and the expenditure to
dole 20c, the excess of expenditures over receipts
206,652 doll 42c.
1414:v1ews presented by the Postmaster-General on the
°f special grants by the Government in aid of the
(4,z, h-'lBhlcaent of now lines of ocean mail steamships, and
tolly'„IllieY he recommended for the development of increased
to111;"reial intercourse with adjacent and neighbouring
should receive the careful consideration of

It
0. OUR NATIONAL GROWTH.
ilotevrorthy ixaterot that the eteady expataion of

population, improvement and governmental institutions,
over the new and unoccupied portions of our country, have
scarcely been checked, much less impelled or destroyed, by
our great civil war, which, at first glance, would seem to
have absorbed almost the entire energies of the nation,