The Sun.
London, England, 1864-01-06 00:00:00

THE COTTON LOAN.

Mr. Memminger, the Secretary of the Treasury of the
Confederate States, says in his report :—" The purchases
of cotton under the Act of April 30, 1863, amount to
399,753 bales at the date of the reports last received, at
a cost of £30,314,769. The average price paid was
16 dol. 85c. per lb , exclusive of Sea Island cotton—the
lowest price being 61, and the highest 36f, and five-
sixths of the entire purchase-money have been paid in ,
bonds. The difficulty of procuring reports in detail from
the agents in Louisiana, Mississippi, Arkansas, and Texas
has prevented a precise return of the cotton which has been
destroyed ; but from the estimates made by each of them it
may be assumed that the entire loss is not more than
3.x,000 bales. To this must be added several thousand bales
used for military and naval defences, and also several thou-
sand more turned over to the ordnance and Quartermaster's
departments to fulfil contracts for supplies, and also for
shipments made by the Treasury Department. The whole
of these deductions may be set down at 70,202 bales, leaving
on hand an aggregate of about 329,500 bales. Of this
amount about 30,000 hales are stored in warehouses in
cities, and the remainder in cotton-houses on the planta-
tions where they have been purchased, The time which
has elapsed since much of this cotton was purchased has
damaged the rope and bagging of a portion thereof ; and
the aid of Congress is ssked in procuring the means of re-
newing it. I had hoped that the skill of our people would
discover a substitute for rope and bagging, and probably an
offer of a reward for the best plan would produce beneficial
results. If resort must be had to foreign supplies, the plan
which may be adopted to ship the cotton will furnish the
means of importing the rope and bagging, and in either view
it will be necessary to make an appropriation to cover the
expense. The cotton interest Loads will naturally fall within
the management of this division of the Treasury Depart-
ment, and it is proposed that they should take that course.
It is not clear what was the design of Congress in authorising
these bonds. The first law passed was in connection with the
Funding Act, and the coupons was thereby made payable at
the option of the holder of the bond in coin, or cotton valued
at Bd. sterling per lb. The object of this law was obviously to
provide the means of raising money abroad, and after it wao
passed I recommended that the rate at which the cotton
was to be taken should be reduced to 6d., or the average
price at Liverpool before the war. At this rate purchasers
could have been produced at any time before the fall of
Vicksburg. The amendment which was made to the law by
Congress reduced the price as proposed, but shifting the
option of being paid in cotton from the purchaser to the
Government. This converted the bond in the view of a
European purchase into a simple six per cent. money bond,
with the interest payable here. The absence of the right to
require cotton for the bonds took away their availableness
in the foreign market. On the other hand, the option which
they allowed the holders to receive cotton at 6d. when it
was selling at three or four times that price made the opera-
tion very unfavourable for the Government unless the bonds
were sold at a large advance. For this reason, I deemed it
my duty, after due' explanation of the nature of the bonds,
to advertise for bids; and, al an experiment, I accordingly
offered five millions. The bids ranged at various rates from
par up to 100 per cent. I accepted all the bids at and over
50 per cent. premium, and issued a second advertisement.
The bids which wree offered in both cases were far below
the amount of goods offered for sale. But those bids which
came from persons of known intelligence and patriotism in-
dicated that 50 per cent. was the probable value of the bonds,
I therefore adopted that rate and authorised sales to be made
accordingly. Those sales have been made to a very limited
extent, chiefly because it was believed that the blockade
would prevent the shipment of any cotton to be received in
payment. This impediment was so serious that, in the
judgment of men of business, even a reduction of the price
of bonds to par would not induce large sales."

COTTON GROWING IN ILLINOIS.—The farmers in
Sodthern Illinois have been busily engaged for some weeks
past in cotton picking on high grounds, where the crops
have been little injured by the frost. On the bottom and
low lands the crops are totally ruined. Cotton presses are
going up in H-tron and Jackson counties, and gins are
running in every neighbourhood,—Few York 11-wald.

SPIRIT OF THE PUBLIC JOURNALS,

TIMES.—At the present time the Duchy of Hol-
stein may be considered to have piHsvci ewireiy out
binds of t.he Myles. Not 0711. y 14.-.ve the

Royal troops retired beyond the Schieswig fron-
tier, but the officials engaged in the local adminis
tration have either been obliged to follow them
or to acknowledge the Prince of Augustenburg, and
conduct their business in his name. The Federal
Execution has led to what every man of sense must
have foreseen, the transfer of the Ducal throne to
the new claimant. As the Danish troops retire the
party favourable to him engage actively in the work
of revolution, and even those who do not favour a
change think it well to acquiesce in a cause which
is evidently supported by the whole German Fede-
ration, and apparently abandoned by the Danes
themselves. Prince Frederick actually remains on
Holstein soil after having caused himself to be pro-
claimed in defiance of the assertion of the Diet that
the decision rests entirely with them; yet though
he thus takes the matter into his own hands, a mo-
tion requesting him to leave the Duchies is rejected
at Frankfort, and the Diet consequently accepts a
complicity in his acts. Although the Corps of
Execution occupies only a small portion of the soil
of Holstein, yet the protection it affords to the
revolutionary party is general. At Kiel are situated
the headquarters of the Prince's supporters, and
from that city the emissaries of the party are sent
out to carry on the agitation against the Govern-
ment, not only in Holstein, but in Schleswig. But
it is in Holstein only that any open measures can
be ventured upon. There the field is clear for the
malcontents through the entire abandonment of the
country by the King's forces. The Danes have now,
probably, not a single man in Holstein. They have
retired beyond the Eider, and even abandoned the
positions of Frederickstadt and Rendsburg. This
sacrifice has cost them much in pride, and pos-
sibly in territory. The result may be the loss of
Holstein, in which the will of the people if
decisively expressed for the Prince of Augusten-
burg may seem to nullify any former claims. But,
unless we are much mistaken, the concessions of
Denmark will stop at the Eider. Tue Danes have
now raised a considerable army, and are posted in
strong positions along the southern frontier of
Schleswig. The foreign Powers which have advised
Denmark to yield so Jar in order to avoid a conflict
have not thought it possible to urge upon the
King's Government the surrender of Schleswig.
Tae Danes have always asserted that Schleswig is
in no way connected with Germany, but indissolu-
bly united to Denmark by historical traditions and
by a public act in the early part of the last century.
And though it has been recommended by Lord
Wodehouse and by the Russian Envoy that the de-
mands of Germany, based on alleged agreements
with Denmark twelve years ago, should be so far
conceded as that the King should withdraw the
common Constitution, yet it would be going beyond
what justice demands were we to press un the Danes
the abandonment of Schleswig to the invaders,
especially since it is now clear that Federal Execu-
tion simply means the occupation of the country for
the purpose of allowing the Prince of Augusten.
burg's partisans to eject the King's officials, and
force the people into demonstrations against the
succession that has been recognised by Europe.
Whatever course the King may take with respect
to the revocation of the Constitution, it is not
likely that either England or Russia will urge upon
him a military abandonment of the northern Duchy,
or that he would acquiesce in such advice. We
must, then, look forward to an abatement of the
German pretensions or war. It has been announced
that Prussia and Austria propose to summon the
King to undo the work of November, and in case of
non-compliance will enter the Duchy of Schleswig
and treat it as Holstein has been treated. In case
this is attempted it is the intention of the Danes to
resist to the utmost of their power. At present the
forces of the two leading States have taken little
part in the operations. The Austrians are only
just across the Holstein frontier; the Prussians
have not yet entered. It is the Saxons and Henove-
rians who have taken possession wherever the
Danes have retreated, and who now connive at
the proceedings of the Augustenburg party. The
troops of these two States, though only amounting
to 12,000, are probably by this time opposed to
the Danes on the northern frontier of Holstein.
Were they to try to force an entrance by them-
selves there could be little doubt of the result. The
Danes are superior in numbers, and if they were
not, the history of a former contest shows that they
are quite able to repel a German attack made by an
equal force. But should an appeal to arms be made
at last we may be pretty sure that the minor States,
which now provide so large a part of the enthu-
siasm, would soon fall into the background. On
Prussia chiefly would rest the task of really conquer-
ing Schleswig against the resistance of the Danish
Monarchy. On the issue of such a contest it is in
vain to speculate. All that can be said is that the
invasion of a little State like Denmark by a first-
rate Power, in defiance of international engage-
ments entered into so recently, is an act which, in
the present state of Europe, must have the most
mischievous consequences. Even though the Danes
were eventually overpowered, the injury done k.o
Prussia and Germany by so insolent a triumph
would be incalculable. A series of battles, in which
a people numerically feeble resisted a monarchy so
unpopular throughout Europe as the Pruesianenight
arouse more speedily than Germans look for that
sympathy of which the Emperor Napoleon speke in
his letter to the Prince of Augustenburg. As to
ourselves, and, we believe the Russian Government
also, it would :certainly take away any impu:se
which ma;'still exist towards aiding Prussia in any
future diffictulL es. But we have no desire to use the
ambition of others et:.
an argument to persuade Prus-
sia and the German Stagy into conduct. We would
former and its sense
rather rely on the justice of he
of its responsibility as a great A. ower. As for the
minor German States it is welts.' to reason with
them. Those Sovereigns have found it to their
interest to obtain a cheap popularity by ouling or
obeying the political passions of their stiejecls-
They know that they can never be called to account
and that stronger States must bear the brunt of
any contest which they may provoke. Bat if
Prussia will do her duty this useless war may be
avoided. It is also incumbent on the French Go-
vernment to do its best to prevent what is now
threatened. There are those who say the Emperor
Napoleon is not sorry to see the German Powers
showing themselves to the world as invaders, and
raising up in Europe an ill feeling towards them-
selves. Such persons will have it that to the irri-
tation against England for refusing the Congress
is joined a perception that war of any kind will be
to the advantage of a power which hopes for
gains by conquest. If Prussia be content to trouble
the waters that the French ruler may fish, he is not
likely to stop her in such a course. But we cannot
assume that a European Sovereign has such sinister
views; and we must hope that when it is proved
that the advance of German aggression will really
lead to war on the Schleswig frontier, the Western
Powers will be found united to prevent such a
calamity.
POST.—The present position of the Mexican
campaign has been clearly delineated in the Illoni-
tour, which has afforded us considerab e information
in advance of the public intelligence brought by the
last mail. After an inactivity caused chiefly by the
season of the year, the French had resumed, in two
directions simultaneously, a march to which the
feeble opposition of tie Republican arms no longer
imparts the character of real hostilities. The French
authorities in Mexico, with the view of reinforcing
their army on the spot, had succeeded in establish-
ing a considerable native corps under their own
standard. Thus strengthened independently of
fresh European regimen's, General Bazeine divided
the bulk of his combined force into two advancing
divisions. At the head of one of these, the latest
intelligence left him making an uncontested pro-
gress through the Western States lying between
the city of Mexico and the Pacific coast. The other
division 15,000 strong, of whom 5,01,0 were native
auxiliaries,were advancing northward,being already
in possession of Queretaro, about 150 miles north of
Mexico. Having gained this important centre,
they had pushed on to the neighbourhood of Gua-
naxuato, some 80 miles nearer. In advance of Gua-
naxuato, however, it appeared that such ragged re-
giments of the Republicans as remained were
stationing themselves, with desperate temerity, as
though prepared to dispute the possession of that
city. The mail, unfortunately, left a few days too
early to bring intelligence of the result of the atti-
tude they had taken up; but if they stood to their
ground it was probable that the opportunity would
be given to the French of crushing the lest relic of
opposition in the north of Mexico. We find thtt
the direct intelligence from Guanexu t a by way
of Tampico, is that the French were expected to
enter that city within a few days from
the date of it—that is, by the Ist of December
last at the latest ; and from Gutriaxuato to San
Luis, where Jaurez had affected to establish the
headquarters he has since b en obliged to ab in don,
is no more than a few days' march. From this brief
tracing of the movements of the French forces, it
will be seen that the character of the French domi-
nion in Maxico is now undergoing a great and at
length a rapid change. Until very lately the French
forces were masters only of the comparatively small
territory between Vera Cruz and the capital. They
nave now pushed out both to the west and to the
north. Towards the Pacific it is probable that the
great centre of Guadalaxara is now in their hands,
as well as the important outpost of Valladolid ; and
these positions in the hands of the French, the
Westerh,States fall almost necessarily under their
authority. Nor does it appear that the party of
J uarez has had any following in that pert of the

Mexican Confederation ; and it becomes therefore
more easy to acknowledge the probability of the ad-
vance of the French forces into the Westrn STAtea,
producing a geo:ro-at coucurreuee thonew iTicyver -
nwn t. Moreover, the combination. of an i-AY-T-tivf.,

native force with the French army no?! serves to
relieve the latter in great degree of the character of
an invading force. If we turn to the north, we find
the Frerch authority now carried, in the heart. of
the country, as tar north as the latitude of Tampico.
We may also fairly presume that during the past
month of December the States of San Luis Potosi
and Zacatecas have come into the new system, and
have acknowledged the Government now established
at Mexico ; for the French and Mexican combined
force was within a short distance of Luis
Potosi, the capital, when the last intelligence left.
A glance at the map will show that within the
rayon described by these towns and States is com-
prised the bulk of what is really and vitally the
Federal State of Mexico. There are still, indeed,
beyond this rayon certain outlying provinces or
States; and their area, too, is not inconsiderable.
But they are thinly peopled. They have little con-
cern in making up either the population or the
public opinion of Mexico; they have always lain
but loosely around the other States ; and they have
scarcely a more vital or direct concern with the
system of government that may prevail to the
southward than California and Texas used to nave.
On the whole, therefore, it can hardly be doubted
that the establishment of the French authority
within the line indicated by the cities of Tampico,
San Luis Potosi, Zacatecas, and Guadalaxara, and
from thence to the Pacific coast, would be practi-
cally equivalent to the general recognition of the
new regime. It will not, indeed, follow that the
guerilla bands will be thereby suppressed immedi-
ately; but there i- good reason to anticipate that
they will lose much of their political character, and.
guerillas reduced to a banditti are a social grievance
rather than the maintenance of a civil war. In the
meantime, to the south of the line of Mexico,
Puebla, and Vera Cruz, the French authority ap-
pears to have been submitted to without much show
of opposition ; and the story brought by the Etna
of the recapture of Pueola by the Republicans hardly
requires even the confutation which the later dates
of. the Shannon afford. It has been our lot. on
several occasions to differ with the policy of the
French intervention in the character which it as
sumed after the Convention of Soledad, but we
cannot trace without a feeling of satisfaction the
success which has attended the arms of a neigh-
bour and an ally, after so much treasure and b end
had been expended in the work which the French
Government now seem in a fair way of bringing to
a close.

COUNTRY MARKETS.