The Sun.
London, England, 1864-08-09 00:00:00

be required to pay the interest, thus leaving the
whole proceeds of the internal revenue deficient by
no less than 95,000,000 dole. as a security for the

existing debt. Mr. Fessenden and the Northern
people may, perhaps, imagine that the pr ice of gold
will fall. Perhaps it will ; but if it do not ? There
must in the latter case be either a repudiation of the
contract to pay in gold, or new loans, not only to
carry on the war, but to cover a daily augmenting
deficiency.

July 27.
Last night the town was again startled by the
details of a new irruption of the Confederates,
under Generals Early and Breckenridge, into the
valley of the Shenandoah, the defeat of the
Federals under Generals Averill and Crook, and
the retreat of those officers with the remnants of
their force to Harper's Ferry. Mr. Lincoln and Mr.
Stanton, imagining, when the victorious invaders
so suddenly disappeared from before Washington,
that all danger was past, sent home the militiamen
whom they had summoned to their aid; and went
to sleep with their usual poco-curantism—or optim-
ism—believing, with Candide, that all was for the
best in this beautiful world. The result is that
Washington is again at the mercy of the Con-
federates, that there is a panic amongst the
Unionist population, secret rejoicing among those
who sympathise with the Confederates, and a
general exodus of the timid. Governor Curtin,
of Pennsylvania, has not yet found time to
appeal to New York for assistance to repel the
invaders, and Mr. Lincoln, uncertain whether the
irruption is great or small, intended for the plunder
of farmyards or for the sack of the capital, has issued
no proclamation to the loyal people, and demanded
no assistance. He is urged, however, to meet the
difficulty, whatever may be its real character, by
appointing Gen. M'Clellan to the command of the
defences of Washington, and promised if he will but
have the magnanimity to forgive a political oppo.
nent, especially one who threatens to be his success-
ful rival for the Presidency, that at least 100,000
Volunteers will respond to the magic of that name,
and make Washington safe now and for the re.
mainder of the war. If the danger be imminent it is
possible, though not probable, that Mr Lincoln will
act upon this suggestion. If called upon, M'Clellan
is too sincere a patriot, and too good a soldier, to
refuse obedience to the call. Meanwhile, the posi-
tion is, to say the least of it, humiliating to the
Federal Government, after which, 105 days since
Grant crossed the Rapidan to take Richmond sees
its own capital in much greater danger of capture
than that of the Confederates. Grant has not a
man to spare from Petersburg to assist in the de-
fence of the Shenandoah or other approaches to
Washington, while Lee is not only able to spare
from Richmond as many men as are sufficient to
make Maryland and Pennsylvania a profitable and
comparatively safe foraging ground, but to send
Longstreet with a force of 25,000 to the support of
Hood at Atlanta. And yet the friends of the Ad-
ministration persist in asserting that Grant's cam.
paign is not a failure, and that the rebellion is on
its last legs.

RAILWAY INTELLIGENCE,

LONDON AND SOUTH-WESTERN.

The directors of this company have resolved to recom-
mend to the proprietors at the half-yearly general meeting
on the 18th inst. that the dividend for the half-year end-
ing June 30, 1864, be at the rate of 41 per cent. per annum
on the ordinary capital stock of the company, carrying over
a balance of £8,400.