The Sun.
London, England, 1863-02-19 00:00:00

THE SUN, LONDON, THURSDAY EVENING, FEBRUARY 19, 1863.

duce a dead-lock, instead of stimulating a progres-
sive motion. Take the article of tea for instance.
At a duty of four shillings the pound, it staggered
under the impost so as to yield but a trifling
return ; but when the duty was reduced to
one shilling, the consumption rose like a
rocket, and the revenue increased accordingly.
As with tea the consumption would naturally in-
crease in other articles, though not, perhaps, in pro.
portion, because tea is the beverage of the people
—and whatever is universally in demand must
yield a corresponding amount to the revenue. The
war-tax—that is, the blessed Russian War—is
still continued on tea—but a reduction would
be hailed as a boon to the poor, and compen-
sate for the presumed sacrifice by a more productive
revenue. Now that our commerce with China is
open•—so many more ports at command, all that is
wanted to test the productive capability of that in-
dustrious people is to meet their requirements in a
liberal spirit, and the result will be that our trade
will be increased in a ratio far exceeding our most
sanguine speculations. Give Chinamen a chance of
dealing with us in cordial frankness, and
they will appreciate our magnanimity from the
first of all motives—self-interest. The natural
consequence will prove mutually beneficial, and
increase their desire to cultivate still more, re-
lations of friendship with a people whose inter-
course is so profitable, individually as well as
collectively. Thus, instead of raising taxes to pay
for our wars with the Chinese, we shall be receiving
increase of revenue by cultivating friendly rela-
tion with an indistrious and inoffensive people.
As to tea, so with tobacco. Sir M. PETO says
that in the history of taxation nothing has been
more satisfactorily established than the fallacy of
imposing duties at rates which have a ten-
dency to check consumption and therefore
he thinks that all duties upon articles
of consumption ought to be assessed upon a scale
which permits the expansion of the consumption
with the population and prosperity of the country.
This works twofold. Increased consumption implies
increasing trade, which ranges throughout the
nation generally, by enlarging the sphere of employ-
ment of capital and labour in every department not
only at home, but giving a stimulus to our enter-
prise abroad.

Besides, as liberality begets a corresponding de-
gree of mutual goodwill, so the converse produces
just the contrary. Exorbitant taxation disgusts the
payer, and begets smuggling to eacape the deficiency
consequent on the extra duty. This is a national
loss on the score of morality as well as revenue.
As fair play is bonnie play, so unjust taxation
raises opposition where a moderate and wise rate
proportionate to the ability of the payer would be
cheerfully submitted to, and so benefit trade, the re-
venue, and morality. Let Mr. GLADSTONE look to
this and reduce his odious Income Tax preparatory
to a final repeal. Let him tax property, and wel-
come—that is a fair and just subject for taxation;
and if his tax be moderate, that too will realise far
more than an excessive rate because people will not
resort to evasion but pay with cheerfulness for
the protection of what they have acquired by in
dustry or otherwise.

Large as is the consumption of tobacco in Eng.
land, it is nothing as compared with foreign coun-
tries. For every 12 ounces of duty-paid tobacco
consumed in England, the Belgians are estimated
to consume 22 ; the Germans, 48; the Dutch, 54;
and the Americans, 84ounces per head. No wonder
that smuggling should increase with the duty on
tobacco, for it is amusing to read the tricks resorted
to by ingenuity to evade paying so enormous a rate
as from nine shillings and fivepence the pound on
American cigars, to eleven shillings and sixpence
on real Havannahs. Besides the profit derived by
the smuggler and consequent loss to the revenue,
public sympathy goes freely with the enterprising
adventurer, and nobody cares for the " tarnation"
taxgatherer, a monster, that to be hated, needs but
to be seen !

LATEST INTELLIGENCE,

[REUTER'S TELEGRAMS.]

AMERICA,

(Per Edinburgh.)
QUEENSTOWN, FEB. 19,

The Inman steamer Edinburgh, from New York
on the 7th, arrived here this morning. She brings
22 cabin and 57 steerage passengers, and 913,000
dols. in specie.

NEW YORK, FEB. 6.

The third editions of the Richmond papers con-
tains no comments whatever on the Charleston
affair.

The Southern journals of the 2d assert that im-
mediately after raising the blockade a vessel was
despatched from Charleston to notify the authorities
at Nassau.

Savannah despatches state that the Federal fleet
of one iron-clad turret, four gunboats, and one mor-
tar boat, attacked Fort Macallister, at Genesis Point,
on the Ist inst. The firing continued until half-
past two in the afternoon, when the Federals re-
tired defeated. The bombardment was more furious
than the previous one.
Despatches to the 31st ult., from Charleston, an-
nounced that General Ripley bad sent an artillery
force under Colonel Yates to (Tames Island, with the
design of attacking the Federal gunboats cruising
in the Stone River. Colonel Yates posted his guns,
21 in number, about eight miles from the city, in a
semi-circle stretching on both sides of the river,
around the Federal gunboat P. Smith, and at four
o'clock opened a concentrated fire upon her. The
engagement lasted one hour, when the P. Smith
hauled down her flag and surrendered uncondition-
ally, with 180 prisoners. She had 8 killed and
15 wounded. She is now safely anchored under
the guns of Fort Pemberton, and will soon be ready
for sea,

Col. Stewart, Chief of the Cavalry on General
NPClernand's staff at Vicksburg, whilst out on a
reconnaissance with 200 men, was shot and deserted
by them. Col. Stewart had upon his person a me-
morandum book, containing full estimates of the
numbers and calibre of the forces and guns of
Generals Sherman and Welernand, and much use-
ful information respecting canals upon which work
has been commenced. This book fell into the hands
of the enemy.
The canal around Vicksburg which Gen. Grant
is digging is an entirely new one, Gen. Williams'
canal having proved useless. At last accounts
water was beginning to rush into the canal. A
considerable force has been landed and marched
across the peninsula to a point opposite Warrenton,
where they are encamped. They are in a position
to communicate with the troops from below on the
Louisiana side, should the latter be able to pass
Port Hudson.

The weather still renders any movement of the
Army of the Potomac impracticable.
The New Orleans correspondent of the Phtladel-
ph:a Inquirer mentions as a rumour that the negroes
recently sent to garrison the forts had come into
collision with the white soldiers, and that a general
revolt had taken place.
The Federal cavalry have captured 100 Confede-
rates, with their camp equipage, at Middleton, 15
miles from Murfreesboro', Tennessee.
The House of Representatives has passed a bill
providing for the establishment of a Submarine
Telegraph Cable from Fortress Munroe to Galves-
ton, communicating with intermediate points on
the coast.

Secretary Chase is reported to have written a
letter to the Finance Committee, declaring his
ability to carry on the finances without a further
issue of legal tender notes if his currency scheme
is adopted by Congress.

The New York. Herald says that ex-Governor
Morgan is a member of the Conservative portion of
the Republican party, and that his election to the
United States Senate may be looked upon as very
favourable to public interests.
The New .York. Times says—" Ex• Governor
Morgan's election is understood to signalise a de-
cided defeat of the Radicals. It is acceptable to the
more loyal and conservative section of the Demo-
crats, and will give general satisfaction throughout
the country."
The New York World thinks that his election is
a heavy blow to the Radicals, and that he is the
most generally acceptable selection that could have
been taken from the Republican side.

The Albany correspondent of the .New York 7ri-
bune says that Senator Morgan has written a letter
taking ground in favour of the emancipation pro-
clamation, and declaring himself prepared to sup-
port that and all other measures of the adminis-
tration for the suppression of the rebellion. The
New York Tribune says nothing editorially concern-
ing the election.

Mr. Wendell Phillips bas lectured in Brooklyn,
urging the people, before the first of May, to de-
mand of President Lincoln an army of 500,000
negroes with arms in their hands. He advocated
the return of General Butler to New Orleans, and
a command being given to General Fremont. Mr.
Wendell Phillips said he went to Washington but
found no Cabinet, " only a snag." As for the Pre-
sident, he said he found a very honest man, but he
would say what he was made of, and continued,—
" President Lincoln stood for thirty years in
Springfield, the centre of Illinois to the north
of him, the northern half of the State, free
educaed, intelligent, republican; to the south the
southern half of the State Egypt—ignorant, pro-
slavery, Southern, servile, dark. He has been
balancing all his life to be popular with both, and
he is the result of the balance. That is the educa-
tion of 30 years. No blame of his. He had lived
there, and he could not help it. He has succeeded
in being the favourite of that mosaic State of Illi-
nois, and the result is Abraham Lincoln. That is
exactly the honest, cunning, shrewd, western poli-
tician who is now President." Mr. Wendell Phillips
also thought that both the President and Adminis-
tration had a Southern bias, and said that if the
country was saved, it would be in spite of the Ad-
ministration, and because it was not possible for the
President to ruin the country.
The New York World contains an anony-
mous communication from the citizens of New
Orleans, bringing grave charges against General
Butler of spoliation, plunder, and venality during
his administration. The World says :—" If the
facts are as represented by Butler's enemies the
Government should not forbear investigation be-
cause his accusers are bitter secessionists. If these
representations are not true it is due to General
Butler, and to the American name, that they should
be shown to be without foundation ; if true, General
Butler should be disavowed and disgraced."
The Secretary of the Treasury ha 3 informed the
Senate that a reduction of duty upon paper would
increase
the permanent revenue.

In Congress the Bankrupt Bill has been laid upon
the table by a vote of 60 to 63, and the motion to
reconsider it was also voted to be tabled by the
same majority.

NEW YORK, FEB. 6, EVENING.
It is supposed that strong efforts will be made by

the Federal Government for the immediate capture I
of Charleston.

The attack en Savannah and Charleston is said to

have commenced.

General Banks's expedition against Port Hudson
is reported to be delayed owing to an insufficiency
of force and the want of medical supplies.
The Confederates have weakened their force in
the rear of Fredericksburg.
The Confederates have attacked the Federal gun-
boats off Island No. 10, but were repulsed.
The Confederates claim a victory' off Corcoran, on
the Blackwater River.

The military commanders of Georgia and the
Governors of North Carolina and Alabama have
issued appeals to the people not to flinch from their
duty to the South in her hour of peril, and caution-
ing them that attempts to evade the conscription
will be punished with rigour.
The New York Legislature has passed a resolu-
tion declaring President Lincoln's emancipation
proclamation to be justifiable as a war measure.

The New York Chamber of Commerce has passed
resolutions expressing confidence in the Govern-
ment, and pledging its co-operation in quelling the
rebellion.

COMMERCIAL INTELLIGENCE.

NEW YORK, FEB. 6 (Evening).

Money easy. Gold, 67k per cent. premium.
Exchange on London bankers' bills, 173 to 173 k.
Stocks firm, and advancing. New York Centrals,
119 - ; Illinois Centrals, 92 ; Erie, 75 Cotton
flat. Middling Upland, 851 to 86c Flour steady.
Wheat, good demand for export. Corn, good in-
quiry. Provisions and coffee steady. Sugar and
molasses very firm.

NEW YORK, FEB. 7, MORNING.
A company has been started to grow cotton on
the peninsula of Lower California.

The TVashington National Republican states that
her Majesty's frigate Vesuvius has arrived at Ha-
vannah from Mobile with a million and a half dols.
in specie, and thinks that Mr. Seward will ask
explanations from Lord Lyons of this suspicious
circumstance.

A bill has been introduced in the Confederate
Senate to enroll as conscripts all males between 18
and 45, in Government employ, who do not belong
to the army or navy; their plan to be supplied by
persong not liable to military duty.
Two proposals for holding a peace convention are
before the Indiana Legislature. One proposes that
if Congress call a national convention, Indiana
shall invite all the Federal and Confederate States
to meet delegates from Indiana at Nashville in
June next.

Confederate Commander Watkins, commanding
the naval expedition from Galveston, officially re-
ports, on the 21st ult., from Sabine Pass, Texas,
that he engaged and defeated the enemy in the
Gulf, capturing a Federal ship and schooner of 12
guns and 100 prisoners, and brought everything to
Sabine Pass.

General Magruder officially announces, on the
4th inst., that Galveston was open to trade, but
Federal Commodore Bell has issued a counter pro-
clamation declaring Galveston, Sabine Pass, and
the whole of the Texas coast blockaded, and warn-
ing vessels from trading under penalty of capture.
The new Merrimac is lying eight miles below
Richmond.

The Confederates are throwing up earthworks in
every direction for the defence of Richmond.

NEW YORK, FEB. 7, NooN.

Latest despatches from Vicksburg state that the
Federal ram Queen of the West ran the blockade
at Vicksburg on the 2d inst. 01,e hundred Con-
feuerate guns opened fire upon her as she steamed
past. A Confederate steamer also opened fire on
her, but the Queen of the West crippled her. The
ram was under fire three-quarters of an hour.

A rumour is current that General Butler will re-
place General Halleck.
120 Federal vessels have sailed from Newbern,
bound South.

It is rumoured that the Confederate guerilla
General Morgan contemplates an attack on Lexing-
ton, Kentucky.
The Federals are said to have occupied Shelby-
ville.

The reported capture of the Confederate steamer
Oreto is not confirmed.
A bill has been introduced in the New York
Legislature prohibiting the Banks from selling or
loaning on gold at a rate above par during their
suspension of specie payments.

It is reported that Congress will recommend a
tax of one-eighth per cent. on speculative trans-
actions in gold.

ARRIVAL OF THE SAXONIA.
SOUTHAMPTON, FEB. 19.

The Hamburg and American Company's steamer
Saxonia, Captain Frantman, from New York, on
the 7th inst., has arrived off Cowes with 85 passen-
gers, 17,000 dols. for England, 211,700 dollars for
France, and 1,700 dols. for Hamburg.
From the 10th to the 16th she experienced a suc-
cession of heavy gales.