The Sun.
London, England, 1862-10-28 00:00:00

THE SUN, LONOON, TUESDAY 'EVENING, OCTOBER 28, 1862.

vagance and corruption in public officers, give new
vigour to the prosecution of the present war, and
assure the people that the Union and the constitu-
tion for which our fathers made sacrifices still live
in all their original vigour."
A draft for 2,000 men was expected to be carried
out at Boston on the day the Europa left that
port.

1 in loans, 937,499 dols. in specie, and 5,020,493.d015,
i in deposits.
(Per Europa, by Telegraph to Halifax, and via
Queenstown.)
NEW YORK, OCT. 16.
A letter has been received in Washington from
the Governor of Pennsylvania stating that the
Federal generals at Hagerstown knew that the
Confederates had crossed the Pennsylvania border
at 10 o'clock on Friday morning, 20 miles by
rail from Chambersburg and a like distatce by
good roads. The latter were in possession of the
Federals, and as the Confederates did not leave
Chambersburg until 9 o'clock on Saturday morning
their whole force might have been captured, and
Pennsylvania saved from the disgrace cast upon her.
The governor demands, in conclusion, a thorough
investigation into the matter.
General Pleasanton lays the blame of the escape
of the Confederates on General Stoneman.
Washington dispatches of the 15th inst. say it is
now evident that a considerable Confederate force
has moved in the direction of Centreville. This
movement is thought to be only a feint to occupy
the Federals in advance and cover the retreat of
the main body of the Confederate army down the
Shenandoah Valley towards Gordonsville. It is not
believed that General Lee will turn out of his course
to attack Sigel, but that he will send a sufficient
force to occupy Sigel's advance while the Confede-
rates move southwards.
There is no reason to believe that the Confede-
rate General J. Johnson is advancing on Manassas.
Nashville papers assert that the Federals are con-
centrating a large force at Fort Donnelson, with the
intention of clearing that portion of Tennessee of
rebels.

It was supposed that the draft in New York
would take place on or about the 10th of November
—i.e., after the coming election.
Copies of two confidential letters, written by
General Beauregard as to the Confederate plans in
Kentucky, had fallen into the hands of the Federal
Government, and were made public. It appears
from these captured papers that the programme
laid down by General Bragg was really nothing
less than the capture of Louisville and Cincinnati,
and carrying the war into the North-West. Beau-
regard even goes so far as to give Bragg minute
directions how to proceed, and points out the works
that it would be necessary to construct at Louis-
ville and Cincinnati to hold these cities after cap-
ture.

The New York limes of Oct. 14 gives the fol-
lowing summary of news :
" Our special correspondent at Harper's Ferry
sends us the gratifying assurance that a forward
moment of the army of the Potomac has been de-
termined upon, and that in a few days at furthest
it will be on the Virginia side of the Potomac, en-
gaged in offensive operations against the rebels.
Our correspondent traces this promise of action
directly to the late visit of the President.
" Our despatches published yesterday morning,
giving accounts of the escape of the rebel cavalry
across the Potomac, are fully confirmed this morn-
ing. They first attempted to cross at Norland's
Ford, but met with opposition there from a force of
our infantry. They then divided and crossed the
river in small bodies at different points. It is said
that General Stuart and General Wade Hampton
were both with the expedition, and that the cavalry
consisted of detachments from Virginia and South
Carolina regiments. Our cavalry, undsr General
Pleasanton, was a little too late to intercept the
rebels before they crossed the river. The skir-
mishing appears to have been without material
results. The Pennsylvanians were again thrown
into a state of perturbation yesterday, by the report
received in Harrisburg, that a rebel force, 30,000
strong, had made their appearance in Franklin
county, and carried off untold numbers of horses,
&c. It subsequently transpired that the fright
was occasioned by a number of stragglers from
Stuart's force, who appeared more anxious to make
their escape than to do any damage.
"It is now believed that the draft will take place
in this State on the 10th of November.
" It is said that henceforth Rienzi is to be the
head quarters of the national forces in Mississippi,
instead of Corinth as heretofore. Rienzi is a short
distance south of Corinth on the Mobile and Ohio
Railroad.

A large Federal force has left Helena, Arkansas,
' and ascended the Mississippi, landing at Cape Girar-
deau. Its destination is unknown.
Another vessel is reported to have arrived at a
Southern port laden with army supplies.
Liverpool salt is worth at Atalanta (Ga.) 1 dol. 25c.
per sack, and flour 30 dols. per barrel.
The Richmond Inquirer of Oct. 11 soya there are
prospects of an early peace, founded on the results
of the battles in Virginia and Maryland and the
campaign now progressing. The battle of Antietam
was, it states, to the Federal forces, the most terri-
ble defeat of the war.
The same journal affirms that President Lincoln
issued his emancipation proclamation in anticipa-
tion that foreign nations would interfere, and thus
afford him an apology for terminating the war, and
calls for the removal of all slaves from the border
by military force as a measure of precaution. It
also advocates the employment of slaves by Govern-
ment in the interior of the country, with fair wages
to the owners.
The Hon. T. A. R. Nelson, up to the present
time a strong Union man, has issued an address to
the people of East Tennessee announcing President
Lincoln's emancipation proclamation, and saying
that of all the despotic acts which th.e civil war has
produced none are equal in atrocity and barbarism
to this proclamation.
Mr. Nelson urges the people of East Tennessee, if
they would save themselves from a species of carnage
unexampled in the history of North America, but
unequivocally invited by the President's proclama-
tion, to at once, without waiting for the conscrip-
tion, buckle on their 'armour and volunteer in the
struggle against Lincoln's Government. "No
despot in Europe (he says) would dare to exercise
the powers which Mr. Lincoln in two years had
usurped. He now claims the prerogative of abolish-
ing slavery without the consent of the people of East
Tennessee. If he thus takes negroes why may he
not take lands, and reduce the people to a state of
vassalage, of which no parallel can be found except
in the history of the middle ages.
The governor of Virginia has forbidden the ex-
portation of salt beyond the limits of that State.
The draft in the State of New York will commence
on Nov- 10. Drafting in Boston commenced yester-
day. The quota required was 2,000. In Baltimore
drafting took place yesterday. Only 46 men were
required.
Secretary Chase is better. The New York Herald
states that Mr. Chase gave permission to parties in
Boston to send two vessels laden with provisions to
Norfolk to be exchanged for slaves or other mer-
chandise. Oae of the vessels arrived at Norfolk,
discharged her cargo, and left on the return voyage,
but was sent back by the Federal vessels in Hamp-
ton Roads on the ground that Norfolk was blockaded,
and trade could not be carried on.
The matter has been referred to the Government.
The inhabitants of Norfolk are short of provisions.
The British steamer Racer arrived at Fortress
Monroe on the 13th and left on the 14th inst. The
British steamer Petrel is now anchored in Hampton
Roads.
The French steamer Massena arrived at New
York on the 15th inst. from Vera Cruz.

" The rebels in Memphis had reports on Tuesday
that the Confederates, who were so badly beaten at
Corinth, had recovered themselves, and given Ro-
sencranz a severe whipping on Sunday. They have
found out their mistake by this time.
" From the statements of refugees lately from
Richmond we learn that the Merrimac No. 2, or
Richmond, as she is named by the rebels, is nearly
ready for service, having received her iron armour,
which is five inches thick. She is pierced for six
guns—two Columbiads on each side, and a pivot
gun fore and aft. At the Tredegard work a 10-inch
rifle gun, 15 feet long, is being finished, for which
at the same time steel-pointed shot are being made.
The rebels state that they have now 10 gunboats on
the James River similar to the Teazer, each of which
carries rifled guns, and that they have but little to
fear for the safety of the city from a naval attack.
"It is understood that the division of Gen. Cox,
which lately occupied the Kanawha Valley, and
which has lately passed through a brief campaign
in the east, is now on its way to Western Virginia,
and will form a part of Major-Gen. Cox's command
in that department. These troops are now at or
near Cumberland."

The latest despatches confirm the statement that
Stuart's Confederate cavalry succeeded in recrossing
the Potomac into Virginia, almost without moles-
tation. It is stated that General M'Clellan had
given instructions to the divisional commander at
Poolesville, which, if carried out, would have
prevented the return of Gen, Stuart to Virginia,
but that these instructions were not carried out.
An investigation into the cause of this error was
going on at Washington, with a view to elicit all
the facts, and put the charge of this negligence
upon the proper parties. That there was gross
neglect somewhere is evident. A Washington
telegram of the 14th says:—

" A memorial was submitted to the President to-
day by General Walibridge and Messrs. Stevens,
M'Cendy, Lathrop, Wesandock, and others, on the
practicability of sending a Federal force to retake
Texas, and the demand for a proclamation an-
nouncing the policy of the Government to be simply The predictions with regard to the American cur-
the restoration of the Federal Constitational Go-
rency continue to be fulfilled. Another rise of 4
vernment where it is subverted. After tracing the
per cent. has carried the premium on gold up to 32,
and, as the rate for bills on London is quoted 147;
travention of the Monroe doctrine, the memorial
probable designs of Napoleon with Mexico in con-
further heavy shipments of specie may be expected.
The fact that, although she sailed from Boston, the
says, with reference to Texas :—' Recent advices
inform us that if the loyal people of that section of present steamer has brought £55,000, indicates that
the eountry could be positively assured of the assis- the next mails from New York direct would be
likely to take considerable sums. Everyone, how-
tance of the Federal Government large numbers
would immediately flock to the standard of the old
ever, has a sense that the state of affairs now observ-
able is slight compared with that which is to come.
flag who have been induced by misrepresentation
Even in New York, where only a few weeks back it
to believe that the action of the Constitutional
was recommended that all men should be "marked
Government of the United States has been under-
as traitors" who refused to consider Federal paper as
taken to subjugate them and overthrow all their
good as gold,and where a leading economical jour-
civil and political rights, instead of furnishing
them immunity and protection against the odious nal authoritatively assured the public that as soon
as a sufficient quantity of the postage notes could
oligarchy which, under the title of a Confederate
Government, has endeavoured to subvert the repro-
be printed all demand for small change would cease
and silver would be back at par, some idea that the
senta,tive Constitutional Government of the Federal
Union, and erect upon its ruins a ferocious military United States are not exempt from the operation of
the general laws that regulate these matters in all despotism which ignores the welfare, privileges,
and prosperity of the masses for the advancement other parts of the world seems at length to be
of the few, who, by intimidation and violence, are making head. This feeling, however, appears thus
temporarily directing the administration of their far only to manifest itself in a vague consciousness
public affairs." that everything is not quite right, and there is no
Nashville was said to be completely surrounded bold attempt to warn the public of what is actually
by Confederate guerillas, and the Federal troops in impending. Yet the inevitable results should be
plain to every one acquainted even with the rudi-
the city were living on half rations. Provisions
ments of financial science. There are three roads
were held at fabulous prices.
Ad vices from New Orleans are to the Ist inst. open to the Federal Government. They may limit
their expenditure to the resources of the country—a 1
A correspondence had taken place between Dr.
Mercer and General Butler on the question of measure which would be tantamount to a with- I
neutrality, the former claiming a right to remain drawal from the war ; or they may adopt either of
the two alternatives of issuing fresh notes for all
neutral as between the Rebel Government and the
their wants, or of raising money by loans. That
United States, having never taken the oath of ells- they will not abandon the war is certain. An inde-
giance to the one, and not wishing to do so to the
finite creation of notes or loans may therefore be
other. General Butler replied that he could not
calculated upon, and in either case the consequences
recognise any such neutrality; that every person
must be regarded as either a friend or an e y b
nem . can be seen with perfect precision. If, as will pro-
ably be the case, the system of unlimited issues of
The time for taking the oath of allegiance had
paper be preferred, the depreciation will, of course,
been extended to the 4th inst., and the rush to the
provost marshal's offices continued unabated.
go on until the experience of the French assignats
I shall have been repeated. It was recently pointed
The news of the Federal victories in Maryland, 1 out that so long as the new paper issues were merely
it is said, having done much to stir up the dormant filling the vacuum occasioned by the boarding of
patriotism of the inhabitants, the steamer Iberville the sixty millions or more of specie previously in
sage from lberville.
had been fired upon
by guerillas while on her pas- circulation, the progress of depreciation must be
Forty or
.fifty shots were fired
batteryect in different parts of the boat
of four rifled 6-pounders, 10 slow,. but that
. subsequently
atof which
her i
oh from
took
0 ak
ing. This is now being witnessed, and for every
Californian dates are to Oct. 14. Busi.n.ess was
? article of the value of £6B the Government have to
but without doing material damage. ionoc uo
or
ma
m liability
oroia l
distress.loo.
co But ut
the
e throughout
contrary, i
tt hies r
one
s
unsettled. Merchants were apparently disinclined distinction of this system of finance that it creates
to make new engagements, until further advices ease and confidence in the money market. Being a
from the East in regard to war prospects and cur- legal tender, although the value of the currency
rency matters. There was considerable demitnd for may decrease, it answers just as well the purposes
shipping,which could not be supplied until after of debtors, and meanwhile every fresh-creation is,
the r
in proportion as the public attach faith to it, a crea-
The town of Howland Flats, Sierra county, has tion of so much ' •
onal nominal wealth founded
ariv al of a fleet of vessels.
additional
been almost totally destroyed by fire. on a pledge of the labourof future generations. The
The steamer Sierra Nevada had arrived from the other alternative of raising money by a creation o f
northern coast. She brought 120,000 dols. in tree- 1 public stocks, and allowing the currency to remain
%
sure from British Columbia, and over 100,000 dols. 1 without further I
inflation, would be more likely to be
in the hands of the passengers. I attended with occasional commercial inconvenience,
There was continued excitement in financial and while its ultimate results would be nearly similar to
commercial circles in New York. Gold and ex- those of indiscriminate note issues. In obtaining
The latest ally attract l
affected in a proportionate degree. T
change rapidly advancing, and stocks and produce funds by this means the Government would occasion-
beingarge amounts of the existing circulation
commercial news, via Halifax, has been already to its coffers, and
would thus cause monetary pressure
published, and supersedes that contained in the until the total was again disbursed. Under either
newspapers. The New York City Bank statement system the grand consequence
for the week shows an increase of 4,617,891 dole. Whether the expenditure of the country be kept up

THE AMERICAN CURRENCY.

by home loans or by issues of notes, the exportation
of specie must be the same. Foreigners will not
take either the bonds or the notes, and it is the con-
stunt demand for gold to pay the balances thus due
which will regulate the relative quotations of gold
and paper. In the course of a certain time every
piece of hoarded gold that can be bought on any
terms will have been Bent away, and then the
country will be forced to carry on the war solely
on the annual gains of its own industry, since it
will have nothing but these to barter for any articles
it may require to import. All the devices ever sug-
gested can never keep a people who are continually
expending more than they create from that con-
summation, and in time of war the process is short.
How short it is likely to be in the United States
may be estimated from the fact that with a falling
off of about 50 millions yearly in their productive
power (to say nothing of that which is caused by
the withdrawal of men from industrial occupations
to the army) they have augmented their scale of
expenditure by about £150,000,000. When peace
shall have been arrived at there will be a debt to
be met the magnitude and burden of which will be
in no way affected by the question as to whether it
is in the form of bonds or notes. If specie pay-
ments are then to be resumed the people will find
they are called upon to discharge their liabilities in
a metal which has totally deserted them, and it is
then that every debtor in the country will break
down. The break down, however, will be among
themselves, since all foreign credit, except of the
most temporary character, has necessarily already
been withdrawn.

THE INTERNATIONAL EXHIBI2ION.

Tha total number of visitors yesterday up to 5
o'clock was 58,120—namely, 4,457 by season tickets,
1,056 by shilling day tickets, and 52,607 by pay-
ment at the doors. During the middle of the day
there were upwards of 60,000 people of all classes in
the building, when it seemed, to say the very
least, to be as full as it could conveniently hold.
Among the earliest visitors were their Imperial
Highnesses the Prince Napoleon and the Princess
Clotilde and suite, who were received by Sir Went-
worth Dilke, Mr. Fairbairn, Mr. Sandford, and the
members of the French Imperial Commission. Their
Highnesses, quite undisturbed by the crowd, which,
as we have said, was in some places excessive,
Passed almost the whole of the day on the English
side of the building. A very long visit was paid to
Minton's Court, where the party were received by
Mr. Campbell, the chief of the firm, and where both
the Prince and Princess made some costly pur-
chases. They afterwards proceeded to the French
Court, where, in accordance with their wishes pre-
viously intimated, arrangements had been made
with the London Stereoscopic Company to take the
likenesses of the whole party. For this purpose
chairs of State had been prepared for the Prince and
Princess, with the magnificent display of Sevres
china and Gobelin tapestry as a background. At
a signal a large number of cameras were simultane-
ously uncovered on the whole group, and in less
than 20 seconds a perfect series of photographs,
large and stereoscopic, were obtained. It says some-
thing for the steadiness of the party, under this
concentrated fire of lenses, that not a single member
in a group of more than 20 made the slightest move-
ment, so that all the likenesses were absolutely per-
fect. It was late in the afternoon before the Prince
and Princess quitted the building, which, it is
stated, they intend visiting every day till the close.
Ringing out commenced yesterday, for the first
time, at 4 o'clock, and an endeavour was made to
clear the building at half-past, which, it is almost
needless to say, was not successful, and it was long
past 5 before the last of the lingering visitors were
out and the doors closed.