The Sun.
London, England, 1862-01-29 00:00:00

Y~l

and had arrived at the conclusion that British Ame-

rica could neither be con queredby the United States
nor permanently held by England. He i dicates

his belief to be that British America witl become

a sort of Protestant and civilised Russia, and
calls on the United States " to propitiate and secure
the allegiance of Canada while it is yet young and
incurious of its future." It is but fair to give Mr.
Seward's precise terms. As the impression referred
to does certainly exist, it would be worth while to I
inquire how it originated, and it will be found, in all
likelihood, that it has been mainly created by the
language and windy menaces of certain journals
which declare themselves to the world as Mr.
Seward's organs and the exponents of his policy.
That Mr. Seward, into pictore, has a respect and ad-
miration for England, which does not extend, how-
ever, either to the Government or the social sys-
tem of the country, I have reason to believe.
His sympathies, probably, are rather with the
England of Cromwell and Milton than with the
later England of George 111. and Lord North ;
and, although he has not unsuccessfully courted
the Irish and Catholic element in the United
States, he is rather of the Protestant and
Puritan type, and would, at the Battle of the
Boyne, have been assuredly found wading after King
William. The spirit unmistakably shown by all
classes of the people of Canada recently has created
respect for them, instead of irritation against them,
and we see and hear no more of the threats which
were rife in the more violent papers here a short
time ago. Meanwhile, Mr. Seward has, it is said,
telegraphed instructions to the United States autho-
rities to permit the British troops to proceed into
Canada by Portland if it is so desired—a strange
act, which is certainly more than courteous, and is
of excessive civility. Mr. Seward is said to have de-
clared that the United States would not permit them-
selves to be forced into a war with Great Britain, no
matter what happened; it looks as if he were resolved
to inaugurate a contest of compliments. The Ameri-
can press, so far as I have read, passes over the in-
telligence in silence, or with brief and ambiguous
comments, but the New York. Times grumbles
audibly at the order, and deprecates the idea of
lightening the next English Budget. By the last
accounts, the troops at Halifax were by no means
comfortably situated. Some were still on board the
ships, and the weather was not at all agreeable. The
apprehension or uncertainty respecting the Rinaldo
must exist till there is decisive intelligence that she
has reached Bermuda, St. Thomas's, or England.
Capt. Hewett had an excellent master on board, and
if, as is likely, he could not run for Halifax in the
wind and sea which prevailed, he might have
yielded to the wishes of the Commissioners, and have
borne away for Europe; but he was short of coal,
and not well off for provisions. Mr. Slidell would
in all probability press him to make for a British
port, and if the Rinaldo ran south of the Georgia
shoals (which have only 15 feet of water in parts;
and would bring her up in such a sea as was run-
ning), she might have some difficulty in hitting on
Bermuda. If blown off the coast, it would be no
easy work to make Halifax against the westerly
and south-westerly breezes which have been lately
blowing. I understand the Rinaldo proved very
uncomfortable in a breeze of wind off the coast of
Georgia some time ago, and that the crew were all
standing by, axe in hand, to cut the masts at one
moment till the gale abated. I confess it will be
very agreeable to hear that she is in safety. The
Pensacola has at last moved, and she ran the fire of
the batteries before daybreak on Sunday morning
without being hit, having dodged down very judi-
ciously the night before, so as to make her start
when the Confederate gunners least expected her.
They have proved wretched gunners, notwithstand-
ing all their practice, and even sailing vessels have
run the gauntlet with impunity. The Pensacola
will prove a very formidable addition to the flotilla
at Fortress Monroe, where the expedition under
General Burnside has at last arrived. There will
be some delay before it proceeds on its final desti-
nation. I doubt if the exact place to be attacked
is yet determined, but it is plain, from the character
of the vessels and the nature of the stores and
victualling, that some position not very far from
Fortress Monroe is to be attempted ; and in all
probability the land forces will disembark on the
banks of some of the rivers in the rear of the
right flank of the Confederates, and menace
Richmond by the great watercourses which run up
towards it. The town of Suffolk, which is in rear
of Norfolk, and holds an important position on the
railway communications, might be seized, if the
Federalists defeated the Confederates under Huger
at Norfolk. The expedition is not at all suited for a
demonstration against any strong sea•coast city ; it
could not reach New Orleans, Mobile, or Savannah.
It is too small to attempt Richmond directly, but
is large enough to make its mark on Wilmington,
Brunswick, Beaufort, or Fernandina. The latter
is too far for its reach. Beaufort is defended by
the formidable works of Fort Macon, and Wilming-
ton is said to be well covered by batteries up the
Cape Fear River. The North is hungering for
something to be done.
By this time you are aware, that dangerous as it

is to essay prophecy, I was not very much in error
when I stated that before filo year closed a tre-
mendous financial crisis would come upon the
United States. The Bank committees from New

York, Boston, and Philadelphia are sitting in
conclave with Mr. Chase and the Finance Com-
mittees of both houses of Congress, but their
proposals are by no means palatable to the Go-
vernment, and as the latter are all-powerful now
the banks will run the risk of defeat and over-
throw if they enter the field against the Secre-
tary of the Treasury. There are doubts whether
Congress has a right to make notes of the proposed
issue of 150,000,000 dols. a legal tender ; but the
Attorney-General and other lawyers of repute have
given their opinion in support of the power, and,
as the country will sanction the course which will
open the most facile mode of escaping from their
difficulties, the banks will scarcely be able to resist
such a measure if once adopted. A national cur-
rency is distateful to the banks, which are at the
same time anxious to do all the banking business of

the Government and to do away with the sub-Trea-
sury. Tomorrow will enable us to know more about
the matter, which is only one phase of the embar-
rassments and difficulties which settle down on the
Government every day. Nothwithstanding the
denials which appear in the Ministerial organs there
can be no doubt that a large and increasing phalanx
in both Houses of Congress view the policy of the
Government and of the Commander-in-Chief with
dislike, which is not suppressed in private, and finds
such external outlets new and then as the speech of
Mr. Roscoe Conkling, Mr. Hale, or Mr. Thomas, or
the hints and innuendos of the Tribune. The cla-
mour for an advance is only kept down by the fear
of failure, and of the subsequent consequences to 1
the criers. A bad state of feeling is growing up
between the Congress and the military authorities,
and I am given to understand that within the
last few days an altercatim occurred between
Senator and Colonel Wi!son, Chairman of the Mili
tary Committee of the Senate and Aide-de-Camp
to the Commander-in-Chief, and the latter, in the
presence of the President, which led to the re-
signation of the former. The Senator censured
the inaction of the army in terms which General
111‘Clellan resented, and the President took the oc-
casion to repeat the assurances of his confidence in
the General, and of bis submission to his judgment
in matters relating to the conduct of the war.
TUESDAY, Jan. 14.—The Burnside expedition has
sailed from Fortress Monroe, and all the newspapers
affect to know a great deal about it, and to suppress
their knowledge on public grounds. The secret has
been well kept, but I venture to anticipate some
expression of dissatisfaction at the result. Already
one regiment is taken from the force of tLe expe-
dition by the grounding of the vessel on which they
were embarked, and the wind to-day is not very
tavourable or kindly. The vessels steered out to sea,
so that any operations up the rivers close to Fortress
Monroe, as at one time supposed, are not likely at
present. The force is too small to effect any great
object. If any political economist or financial re-
former desires to see how money goes in the United
States and produces the minimum of results, let him
study the list of appropriations or estimates for the
army, and be happy.
The Government is not going to permit its cur-