The Sun.
London, England, 1863-04-16 00:00:00

every time since the outbreak of the civil war.
Here is the Federal Army, wretchedly generalled,
cruelly discomfited, perpetually outman ceuvred,
time and again brought by the foe into some de- I
plorable fix, upon occasion so utterly routed that
there is no adequate word besides the newly-coined
one of stampede, by wbich to give expression to the
mere pace of their scattering! Yet—before the
tide in the Federal fortunes has given any indication
whatever of even a tendency to turn—the Fede-
rals themselves are going to do, we don't
know what all ! To enumerate in plain
words a few of the little exploits they have now
complacently chalked out for themselves—they are
going then—almost immediately—(ZADKlEL was
not at their elbow to supply them with the precise
date)—to re-establish the American Republic one
and indivisible! And simultaneously with the ac-
complishment of that little feat, to absorb the two
Canadas, New Brunswick, Nova Scotia, Newfound-
land, the whole sweep of the Hudson Bay Com-
pany's Territory, British Columbia, and Vancouver!
Such are absolutely the meaning of the cool pre-
dictions enunciated by the Federal wiseacres at
this grand demonstration of theirs pro Gen. BUTLER
and con Great Britain ! Mrs. GLASSE% recommen-
dation, in regard to the hare, never probably occur-
ring to the Federals, while they talked thus glibly
about the goose they are evidently bent upon cook-
ing for that old_ man of the sea, JOHN BULL, that
SINBAD among the Nations. It is precisely in the

same sublime spirit of exaggerated self-complacency
that one of the aspirants to the Presidential chair
in succession to Mr. ABRAHAM LINCOLN had it put
put forth, a brief while since, that he would never
consent to be PRESIDENT of part of the States, but
must have them all, without all reservation
whatever, owning allegiance to his supreme magis-
terial authority. So now, precisely in a kindred
spirit, your true Federal, not content with exulting
over what is to him the dead certainty of a Re-
union very soon between North and South—must
needs blow a fanfaronade in honour of the absorp-
tion into those re-United States, of all the British
possessions but just now enumerated! Of such a
revivified American Republic as that, there can be
ene only suitable President—to wit, Gen. BUTLER
himself ! The supreme commander of his maritime
forces being, as a matter of course, Admiral
WILKES! His aptest Secretary of State, we would
suggest, moreover, might be Mr. G. F. TRAIN !
His Chaplain in Ordinary, or extra-Ordinary, no
ether than the Rev. Mr. BEECHER ! The New
York _Herald, let us hint, the Official Gazette of
the new Government ! And then, probably, we
should see—what we should see!

Earl RUSSELL'S indignant remonstrance and the
firm stand taken by Lord LYONS in regard to the
seizure of British vessels have produced the desired
effect. The instructions to Federal cruisers that
have been drawn up and were published yesterday,
are only a revival of the ordinary regulations
adopted by belligerent Powers in regard to
neutrals, and which have hitherto been so
grossly violated by Admiral WILKES and
others. In all probability this result has
been in a great measure brought about through
motives of expediency. The Government at Wash-
ington were more influenced by the fear of a colli-
sion with British cruisers than animated by the
feelings of justice or desirous of obeying those laws
of courtesy which ought to regulate the actions of
all great Powers, whether in war or peace. Admiral
WILKES, whose overbearing insolence has been the
source of so much comment, has had to undergo the
mortification of looking on while two steamers,
known to be destined for Confederate ports, were
convoyed by a British frigate from Barbadoes.
Had no English cruiser been in port the vessels
must inevitably have been seized, Admiral WILKES
having announced his intention of capturing them
directly they left port. In fact, one of them having
made an attempt to go out, the Vanderbilt imme-
diately got up steam, whereupon the English
steamer dropped anchor and demanded the protec-
tion of the frigate, which the Captain of the
Phaeton immediately accorded, and forthwith
communicated with Admiral WILKES, and
the steamers left port without further molesta-
tion. 'This circumstance proves the necessity of
our having a large fleet in the American waters;
and there are plenty of idle ships in our dockyards
which might be made available. Precautions of
this kind would do much to prevent the arrogant
assumption and insolent interference of American
commanders. Had a fifty-gun frigate like the
Phaeton been in the vicinity Commodore WILKES
would never have dared to interfere with the
Trent. He would then have found discretion the
better part of valour. It is all very well for the
American Government to make promises, but to be
certain of their being kept it is prudent to be in a
position to compel their observance. Indeed, it is
more than probable that while Mr. STUART is
assuring Earl RUSSELL of his desire to meet his
views, his secretary may be writing private
instructions to commanders of Federal cruisers
in direct contravention to their public orders.
Earl RUSSELL'S letter is an admirable one,
so far as it goes, and mare decided and
determined in its tone than his lordship often is
in similar cases. He says that he is glad, on the
part of our Government, that the orders have been
rescinded which regarded any interference with
neutral vessels. He then goes on to say, with
something threatening in his manner, that had
they been sanctioned by the Government of the
United States, they would have called for prompt
and firm remonstrance on our part. This is
exactly the style in which the Cabinet at Washing-
ton must be treated in order to arrive at any satin_
factory conclusion of a vexed question, or to enable
us to maintain an incontestable right with dignity
and decorum. His Lordship then authorises Mr.
STUART to intimate to Mr. SEWARD that "to order
vessels, though apparently and prima facie carrying
on a lawful trade, to be systematically seized
on the high seas, without any preliminary
search, and without the discovery during such
search of any strong evidence of suspicion
against such vessel, would be to subject
the mercantile marine of neutrals to
a system of
oppression and annoyance which no neutral Go-
vernment could be expected to tolerate." This is
the most fitting language in which to express the
extreme dissatisfaction that the conduct of the
Federal navy has given in all quarters. Lord
RUSSELL thus concludes his letter to Mr.
STUART :—" The unjust seizure under urgent
circumstances of a neutral vessel may be
considered as one of the occasional bur-
dens which a state of war may impose upon
a neutral, and it may be partially compensated
by the condemnation of the captor in coats, or in
costs and damages; but the indiscriminate and
general seizure of merchant vessels without previous
search converts an occasional exception into an in-
tolerable rule.
" It is desirable that you should ascertain from
Mr. Seward whether the Government of the
United States admits the principle that her Majesty's
mail bags shall neither be searched not detained."
That phrase which characterises the converting of
an "occasional exception', into an " intolerable
- - anti most aptl

mises the whole policy of the Federal commanders,
and the general tenour of the instructions given to
them at head-quarters. Also the paragraph that
relates to the mail-bags is a most important one.
Reference is made to this subject in the course of
the instructions, where arO tipulation is made that
"no official seals or fastenings of.foreign authorities
are on any pretext to be broken." After further
directions it is said that all such parcels are to be
delivered to the consul or legislation of the foreign
government to be opened, upon the understanding
that whatever is contraband will be remitted
to the prize court or Secretary of State at
`Washington. Mr. SEWARD has shown unusual
good sense in giving these instructions to naval
Federal officers, and it is to be hoped that they
will be attended to both in the letter and the spirit.
One thing attracts notice, and that is that all the
fuss and pretensions that have been made have not
gained the point of preventing traffic with the
South. In spite of innumerable precautions, we
learn that Char!eaton is enjoying a larger direct
foreign trade than she has ever had before.

This proves that the most violent measures are not
always the most effective ones, and that a more con-
siderate policy from the outset would have been
the wisest and best course for the Washington Go-
vernment to have followed.

Among the notices of motion dropped on Tuesday.
owing to the rising of the house, was one by Mr.
SHERIDAN with regard to Fire Insurances. The
hon. member last night expressed his hope that the

Government would make some arrangement re•

pecting these notices, but he also indulged in the
anticipation that the financial statement, which we
are all anxiously awaiting, might render his own

motion superfluous. There are certainly few sources
of taxation which more imperatively demand relief,

Ind Mr. GLADSTONE could hardly dispose better

of a portion of his surplus than by removing this
obnoxious and unfair impost. It is, in fact, only
another form of property tax, charging a man's
property in proportion to his prudence, his caution,
and all those qualities which the Legislature is
bound to encourage rather than to levy duty upon.
The mere principle of the tax is unjust and censur-
able; but the rate at which it is levied is simply
preposterous. The insurance offices, as we all know,
charge in proportion to risk, but the Government fol-
lows a plan of as own, sometimes being so moderate
as to charge only 100 per cent, at other times rising

in its demands to 200 or 300 per cent. Thus
if the office charge at the rate of 2s. 6d. per cent. on
the amount of the insurance, the Government duty

on that half-crown will be 3s. 6d., raising the sum
aid as security against fire to a height which is a
very serious discouragement to men of property.
The consequence is that the greed of the Govern-
ment, as is so often the case, defeats itself and large
amounts are insured in Hamburg and elsewhere
where there is no duty, and thus a good deal of busi-
ness that should, by rights, be transacted in London
is carried to foreign offices. It is not to be expected
that men who wish to insure for tens of thousands

will be very willing to pay mere than double the
amount claimed as a a fair investment by the office,
knowing all the while that for these large sums
disbursed yearly they will get not one penny of
value. A merchant may insure in Hamburg for
£lO,OOO for less than half what it will cost him in
London to insure for £5,000, and it is not pro-
bable that under these conditions he should put
the matter in the hands of his countrymen
when foreigners conduct their business on more
reasonable terms. The duty on fire insurances has
long been complained of, but the complaints have
been passed over, and less pressing claims disposed
ef, while this very urgent reform was left unheeded.
We are inclined to regret that Mr. SHERIDAN's
motion has not been discussed before the Budget
came on, as a strong expression of public feeling on
the subject might have had weight with the Chan-
cellor ef the Exchequer. That brilliant but eccentric
financier does not always think fit to give us
what we most need. Perhaps he thinks we
shall appreciate his gifts the more if he
keeps us a few years in eager expectation. It is
very possible he may think it more advisable to take
the duty off some elaborate luxury used only by the
upper ten thousand than to relieve us of this heavy
burden, which presses most severely on those com-
mercial classes which Mr. GLADSTONE professes to
favour. We must hope, however, that the financial
statement will carry out Mr. SHERIDAN'S anticipa-
tions, by abolishing a duty so contrary to-every
sound principle of fiscal legislation. Every
branch of insurance should be free of
duty, and every encouragement should be
afforded to commercial prudence, instead of
obstacles and impediments being thus placed
in the way. The Government certainly take no
part in protecting property from fire. The ela-
borate system of our Fire Brigades, the well-
appointed engines and efficient men, are not regu-
lated under any Government system, or with official
help. It is a matter of business between the in-
surers and the insured. The owner of valuable pro-
perty is unwilling to incur the risk of damage or
destruction without some compensation for the
loss. The office, in its turn, accepts the risk
and provides the means of protection. Why should
the Government step in to take the lion's share by
imposing a tax which doubles the expense of the
one party without adding to the profits of the other.
Were such interference of frequent occurrence
in commercial transactions the trade of London
would certainly not be what it is. We shall look
with interest for Mr. GLADSTONE'S views on this
matter, hoping they will be in accordance with
,he doctrines of common sense and justice.