The Sun.
London, England, 1864-07-22 00:00:00

MINISTERIAL REPLIES.

Lord PALMERSTON—The noble lord the member for
Huntingdonshire (Lord &Montagu) asks under what autho-
rity a force of Royal Marines has been sent to Japan. Sir,
the force was sent in consequence of a decision of the Cabi•
net, who thought it was desirable to increase our military
defences at that station. With regard to the question of
the hon. member for Northamptonshire (Mr. Hunt), I have
to state I thought it my duty to avail myself of the earliest
moment after the report of the committee was in the hands
of members, to ask the house to do justice to my right hon.
friend the member for Caine (Mr. Lowe), and the depart-
ment to which he belonged, and to rescind the resolution
which it had passed. I apprehend, in all probability, there
may be quite as large an attendance of members on Mon-
day next as when the resolution was passed. There were not
200 members present then, and I think there will be at
least that number present on Monday. tinder these cir-
cumstances I cannot postpone the notice which I have

given.

Lord HOTHAM regretted very much the decision which
the noble lord had come to, and hoped he would reconsider
it. He said that, considering the period of the seseion at
which they had arrived, and the smallness of the attend-
ance which might be expected on Monday evening. There
was this further objection to the course the noble viscount
proposed to take. There were two parties to this question ;
there was the right hon. gentleman the member tor Calne
(Mr Lowe), who was there in his place, and would probably
be there on Monday, and the noble lord the member for
Stamford, who was not in his place, and who might not be
there on Monday. Therefore he asked the noble lord not to
come to a conclusion upon a point of form which might be
erroneously thought to affect the facts of the case, and
might give rise to some misapprehension.
The subject then droppea, and the motion for the ad-
journment of the house was withdrawn.
THE INDIAN BUDGET.

Sir C. WOOD made his annual statement of the finances
of India. He began by observing that the favourable anti-
cipations he had made in past years had been confirmed,
and the hopes he had held out had been more than realised.
The result was that, after an equilibrium of revenue and
expenditure in one year, there has been a considerable sur-
plus in three successive years, £8,313,000 of debt had been
paid off, and there was a balance in the Treasury of upwards
of £19,000,000. There had been a steady increase, he said,
in all the items of revenue, the augmentation of the land
revenue having resulted from the large quantity of land
taken into cultivation. He went over the other sources of
supply to the Indian Exchequer, explaining, as he pro-
ceesled, the nature of each and the modifications they had
undergone, remarking that most of them were derived from
internal taxati, n, falling upon the people of India. He
then adverted to the expenditure, to the increase in the
pr,ce of commodities and in the rate of wages. He entered
very fully into the state of the cotton cultivation, showing
that there had been a progressive increase in the produc-
tion and in the importation of East India cotton, and stated
the measures taken to eheck its adulteration. He read
statements of the augmentation of the exports of other
articles of Indian produce—coffee, indigo, jute, woods, tea,
and chincona bark. He gave details respecting the state of
public works in India, where there was now an excessive
demand and competition for labour; the railroads, tele-
graphs, &o.; and he then, after remarking that tranquillity
prevailed within our own territories in India, traced the
origin of the late operations against the fanatical tribes be-
yond the Punjab frontier, from the time of the Mahomedan
schismatic, Syed Ahmed, to that of the Akhoond of Swat,
their present head, and adverted to the quarrel with the
chief of Boutan and his treatment of Mr Eden, indicating
the inexpensive measures to be adopted to bring the chief to
reason, by occupying the passes of his territory, and cutting
off ala communications and supplies. In conclusion, he re-
viewed some of the leading measures of the Indian local
Government during the past year, and vindicated the policy
and administration of the home authorities. He concluded
by moving the first of a series of resolutions on the financial
condition of the several Governments of British India,
The resolutions presented the following result :
The total net revenues of the several Presi-
dencies for the year ended the 30:h of April,

1863 4 L 36,662,867
The total charges

Surplus of Indian revenue
Interest on debt
Charges defrayed in England

9,867,281

Surplus of Indian income £1,827,346
Mr H. SEYMOUR considered the statement, on the
whole, highly satisfactory ; suggesting, however, the more
ready sale of waste lands in India in lee-simple by the
Government.

Mr J. B. SMITH complained that the Indian Budget
was not brought before the house at an earlier period of the
session, and that it was not accompanied by the explana •
tions of the Finance Minister in India. He complained
likewise that so little attention was paid to opening out the
internal navigation in that country. He, however, con-
gratulated the house upon the satisfactory character of the
report given of the finances of India.

Cursory observations upon the various topics touched
upon in the statements of Sir C. Wood were made by Mr
Kinnaird, Mr Yansittart, Mr Crawford, Mr Torrena, Mr
Gregson, and other members, some of whom could not help
animadverting upon the state of the house, and especially
the vacant benches on the Opposition side, during this dis-
cussion.

Sir C. WOOD made a general detailed reply to objec-
tions and inquiries.
The resolutions were then agreed to.
On the order for going into committee on the Consoli-
dated Fund (Appropriation) Bill,

The CHANCELLOR of the EXCHEQUER explained
the financial changes which had affected the balance be..
tween revenue and charges for the year, the result of which
had reduced the surplus, calculated by him in his budget
statement at £238,000, to £65,000.

After some remarks by Sir H. Willoughby, Mr J. White,
and Mr Walpole, upon the subject of the surplus,

Mr AYHTON called attention to the balance of po werin
Europe, for the maintenance of which the army supplies
ere appropriated, He observed that Prussia, as an indepen-
dent kingdom, apart from the Germanic Confederation, had
been guaranteed in the possession of a portion of Saxony
by the Treaty of Vienna. He contended that Prussia bad
aeparted from that treaty by invading Schleswig and Den-
mark and had broken the peace of Europe, and, in the
name of the people of England, he protested against this
proceeding on her part, and insisted that we were not
bound to adhere to the arrangements of the treaty of 1815
in respect to Saxony.

Sir J. FERGUSSON remarked that if the doctrines now
held were to be maintained, other treaties might be as easily
set aside.

Lord PALMERSTON said he did not stand up to defend
the conduct of Prussia; but he could not concur with Mr
Ayrton in thinking that, because Prussia had made war
upon Denmark, we were relieved from the engagements and
obligations we had contracted, along with other Powers,
under the Treaty of Vienna.

The house then went into committee upon the bill, the
clauses of which were agreed to atter some discussion.
On the order for the third reading of the New Zealand
(Guarantee of Loan) Bill,

Mr NV HALLEY called upon the Government to give
an explicit answer to the question whether Governor Sir
George Grey had not attributed the war in New Zsaland
to the machinations of the Roman Catholic priests.
Mr HENNESSY moved to defer the third reading for a
month. He cited testimonies favourable to the character of
the Maories, and denounced the war, which, he said, com-
promised the honour of the country,
_ _

Mr CARDWELL reminded the house that the hostile
natives occupied a very limited part of the colony, and he
read a sratement of Governor Grey as to the real origin of
the war, the object of which was to put down a conspiracy
by a small minority of thl: natives.

Upon a division, the amendment was negatived by 75
to 32.

The bill was then read the third time and passed.
The house then went into committee upon the Fortifica-
tions (Provision for Expenses) Bill, when
The Ma' quis of lIARTINGTON made a short explana-
tory statement, in which he described the progress and con-
dition of the works.

The clauses of the bill were agreed to, after considerable
(Infusion.
.The other orders were proceeded with, and the house
sojourned
at half past 3 o'clock.

PEnC,ayHTER As CLAUDE MEL N OTTE ! —lt i 8 TU•
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contemporary, that Mr Pechter intends to
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lady to play Pauli
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:Kiss Kate Terry pus to his Claude Helnotte. Why not

TIM CIVIL WAR IN AMERICA,

(From the Times Corresponlent.)
NEW YORK, July 8.

Kentucky has been declared in a stage of siege,
and the habeas corpus has been suspended through-
out its whole extent. Mr• Lincoln has appointed a
day of fasting, humiliation, and prayer, but hesi-
tates to call for the 300,000 or 500,000 men so
urgently needed, lest his electioneering prospects
should thereby be clouded. Gold is up at a pre.
mium of 171 yer cent., and is hourly advancing,
Grant has been fairly checkmated at Petersburg,
and has sat before it for 24 days uncertain what to
de. Sherman has gone round the Kenesaw Moun-
tain, which he failed to capture, and approached a
few miles nearer than before to the Chattachoochie
and Atlanta, and Gen. Lee has invaded Maryland,
threatens Pennsylvania, and scared all Washing-
ton, lest he should not be satisfied without captur-
ing Baltimore, and thence marching, all but unop•
posed, through Blandenburg into the Federal cgpi-
tal. Such is a short summary of the situation. Yet,
strange to say, most of the Federal journals find
great comfort in it, and those which more particu-
larly make it their business to support the Admini-
stration are rampant in their exultation that things
look so bright for the loyal and so black for the rebel
cause. The suspension of law and the habeas corpus
in Kentucky is too small a matter for their conside-
ration. The day of humiliation, fasting, and prayer
will please the religious people and the " war
Christians," and will answer exactly the same pur-
pose as if it had been a day of thanksgiving. The
postponement of the draught signifies nothing, '
inasmuch as recruiting goes vigorously on, and the
old soldiers are re-enlisting for the bounty. The
premium on gold looks bad, it is true; but then it
is the work of foreign speculators and unpatziotic
gamblers, who will all be brought to grief by and
by, or as soon as Mr. Fessendenn has leisure to
look into the matter. Grant at Petersburg is in the
very place where he ought to be, and is as eertain
to take Richmond, in an easily computable num-
ber of days, as he was to take Vicksburg. Sherman
is slow, but then he is sure, and is " bound" to take
Atlanta sooner or later—a fact which is proved by
the constant retreats of Johnston, who is evidently
afraid to measare swords with so redoubtable an
antagonist. As for the invasion of Maryland, it is
a mere raid of 5,000 starving cavaliers at the most,
who have gone for plunder, and will not get half as
much as they expect, and who are certain to be cut
off with their booty on their return homewards by
the combined forces of Hunter and Sigel. Indeed,
so little do these easy and happy observers of events
think of the Shenandoah movement, that they ex-
press their fear that Lee does not intend an inva-
sion, and that be has not sent men enough on the
expedition to make the capture of the whole posse
—bag and baggage, arms, ammunition, and horses
—a sufficient dangerous adventure for the Federal
army to make a brag of.
Bat all Americans are not so easily led astray as
to believe the rosy explanations of such public in-
structors as these without judging of the facts for
themselves. The business community has come to
the conclusion that the garbled and contradictory
reports of the state of Grant's and Sherman's
armies—and more especially of the Confederate
movement in Maryland—are not to be depended
upon ; that it is more likely that Lee with 50,000
or 60,000 men intends to raise the siege of Rich-
mood and Petersburg by an attack upon Baltimore
and Washington than that he has sent 5,000 men to
break up the Baltimore and Ohio Railway, destroy
Federal stores and depots, impress men and horses,
and provide the destitute people and garrison of
Richmond with food. They admit, without under.
standing the various reports from the startled and
terrified people of the Border, that whatever Gen.
Lee may mean, his invasion is likely to prove a
serious matter for the people of the North, and one
that will tax the military genius of Gen. Grant to
defeat or render innocuous, and that up to this time
the balance of victory since the passage of theßapidan
has been with the Confederates. It is these consider-
ations, combined with the knowledge that the new
Secretary of the Treasury is printing off greenbacks
at the rate of 2,000,000 per diem, for the payment
of the arrears due to the army and navy, which un-
settle trade and commerce. and send up gold to a
rate that reduces the value of the paper dollar to
about ls. 6d. English money, instead of 4s. 2d., its
normal worth in times of peace, prosperity, and
specie payments-

r Nor are the failure of the summer campaign and
the state of the national finances the only causes of
disquietude. To these, serious enough to try the
philosophy of statesmen and the patience of the
peopie, have to be added the danger of a collision
between the State and Federal authoritits in the
chief city and State of the Union.
The great cause of the people of New York against
General Dix has entered into a new phase. The
general, remembering that in every civilised coun-
try where martial law has not been regularly de-
clared the civil law is paramount, surrendered to
the warrant of the city judge, and appeared to an-
swer the complaint of the district attorney, that he
had illegally, violently, and burglarionsly entered
and retained possession for two days of the offices
of the Nero York World and Journal of Commerce.
to give him time to prepare his defence, the case
was adjourned for a week, and will come on again
to-morrow for further argument. Meanwhile, Mr
Lincoln, informed either through the newspapers
or by the direct agency of the legal advisers of Gen.
Dix that the general had been arres.ed by civil
pri.cess, wrote to him not to suffer, " under any
circumstances," his personal liberty to be in.
vaded, and to plead the orders of the Commander-
in-Chief as his justification for what he had
done. In other words, Mr Lincoln has assumed
the responsibility, and has dared Governor Sey-
mour, who is as legally and constitutionally the
executive and chief magistrate of the State of New
York as Mr Lincoln is the chief magistrate of the
Union, to try conclusion with him on the great
and vital question, whether in a city not in a state
of siege the military or the civil law is supreme. It
seems as if Governor Seymour, aware of the impor-
tance of the issue, had determined to meet it, and,
in view of the possibility of a conflict between the
Federal troops and the Sheriffs and other officers of
the law, has ordered the militia of the State to be
raised to the quota of 75,000 men, by a draught,
pursuant to the State law for the organisation of
the National Guard. He has at the same time di-
rected that no further steps shall be taken towards
enrolling, equipping, and despatching the 12,000
men which Mr Lincoln has called upon him to
supply for the defence of Washington and Mary-
land. Thus the state of affairs is eminently critical.
Gen. Dix has a noble chance, such a one as rarely
falls to the lot of an American politician. He is a
member of the Democratic party, accomplished,
gentlemanly, popular. His party—not quite agreed
upon Gen. IVlTlellan, and having no other in view
—is in want of a candidate to run against Mr Lin-
coln. Gen. Dix has but to declare that when the
military and the civil law come into collision he is
for the civil law—to plead ia the matter of the
World and the Journal of Commerce that he obeyed
the order of his superior officer, but rather than
incur any future risk of becoming a bad citizen by
acting
as a good soldier he has resigned his position
in the army, and he will (supposing always that
Grant's campaign is really at an end, and that no
military successes of any importance are gained by
him er any one else between this and Nov. 8) he
hailed with acclamation as the candidate of the
great and growing party who prefer liberty to the
Union, and the most formidable competitor that
could be run against Mr Lincoln. Governor Sep
moor has hitherto been braver in speech than in
action. In the case of the World and Journal of
Commerce he is so clearly in the right and Mr
Lincoln is so clearly in the wrong that the friends
of State Rights believe he has at last mustered
up courage to make a stand. He has done it
in a way that has es much offended and surprised the
advocates of centralization and arbitrary power as
it has gratified the hitherto timid but numerous
class who think dominion too dearly purchased at
the price of constitutional freedom, and who only
want a leader o' acknowledged ability and boldness
o become the dominant party. A short time will
Show whether Governor Seymour will maintain the
high position he has assumed, whether General Dtx