The Sun.
London, England, 1862-02-06 00:00:00

THE CIVIL WAR IA AMERICA.

(From the Special Correspondent of the Times.)
NEW YORK, JAN. 21.
Within a little while the assurances that some-
thing is going to be done, often trusted to and often
falsified during the weary months which have rolled
over us since July last, have been revived and be-
lieved. The appearance and evidence of General
M'Clellanbefore the Military Inquisition have given
rise to many rumours, and he is thought to have
opened the eyes of the members in reference to some
matters respecting which they had infirm and per-
-verse theories. The idea, of which a good deal was
heard before General Scott's retirement, that a large
boa constrictor of armed men was enfolded round
the Southern States, and at some given signal would
contract its folds and squeeze out their vitals, is
once more in favour. It is the cherished image,
and it imparts much comfort to the minds of people
who have seen in their childhood prints of the
reptile engaged in smashing in the cracking ribs of
an unhappy buffalo, and who think some similar
operation is about to be performed on the whole of
becessia. But there is another boa winding round the
Northern States themselves in the shape of an enor-•
mous financial crisis, full of deficits and dangers,
and if the other boa does not begin to work very
soon on the South this one will either kill the North
or reduce it to such a state that it cannot continue
its exertions. Within a month—in the month of
February—it is declared by those who pretend to
know that the army of the Potomac, co-operating
with the forces on the coact and with the 'Western
expedition, and with the Kentucky army, will ad-
vance and crush out rebellion. If they do not suc-
ceed? Well, then, the minds of men will be found
to have worked out some process of demonstration
that the continuance of the war is impossible, and
that it will become necessary to ascertain on what
terms the Southern States will enter upon negotia-
tions. There will be many to resist such a conclu-
sion ; many who will talk about the last man and
the last dollar ; but if the mass of the nation see
clearly that all their efforts are in vain—that they
have lavished men and money, and saddled them-
selves with a prodigious debt without having ad-
vanced perceptibly nearer to their object—if they
discover that there is no Union sentiment where
they looked for it, and that, on the contrary, the
hatred to the "Yankees," which seems an animating
principle in the South, has become a universal
passion,—they will, probably, abandon the pursuit
of an object which carries ruin in the endeavours to
seek it and is; of doubtful attainment in the end.
The Hatteras expedition, the Ship Island expe-
dition, said the Port Royal expedition, from which
were expected the occupation of North Carolina,
'the possession of New Orleans or Mobile, and the
capture of Charleston or Savannah, have as yet
ended in nothing but the conquest of sandhills and
of the ground held by the troops. Burnside's ex-
pedition added to the list of failures would provoke
infinite discontent. It is intended, probably, to cut
in on the line of communications between the South
and Richmond, near Gainaborough. The Cairo
expedition is far more important in reference to the
grand scheme of operations, if there be any, than
these operations along the sea-shore ; but the fact
is gradually growing on the people, in despite of
promises, that there is a want of military qualities
in their officers which forbids them to look for
certain results from the best planned and best
equipped columns ; and, were it not that I have the
authority of American papers to rest upon, I should
hesitate to admit the wholesala accusations which
are made against the men in the seryce who have
been honoured by the confidence of heir fellow-
citizens. Regiments have been drawing pay which
cannot be found in any local habitation, and have
only a name which is an airy nothing except on the
paymaster's list. It is stated to-day that a number
of recruiting officers have been sent out of the ser-
vice because they obtained money as rent for offices
which were only the taprooms of public-houses, A
number of cavalry regiments have been turned into
infantry battalions, or are to be so metamorphosed,
because of misunderstood relations between the men
and the horses. Nothing that could be said by any
stranger against the effect of unrestrained demo-
cracy could equal in severity or authority the
charges which are made against its developments
and the men it produces by native Americans.
Corruption in every shape is alleged as a guiding
principle of action and mode of success, and the
masses are reached through the pockets of their
pockets.
FRIDAY, Jan. 17.—There is nothing of conse-
quence to report—a day of miserable rain. An officer
just from Washington tells me the roads are quite
impassable.
SATURDAY, Jan. 18.—The Committee of Ways
and Means does not approveMr.Chate's plan agreed
upon with the representatives of the banks, but the
Senate has passed the resolution of the Finance
Committe declaring it to be the intention of Con-
gress to impose taxes to the extent of £30,000,000
a-year with only one dissentient. It remains to be
seen what course the Committee of Ways and Means
will propose in order to put the Treasury into
working order, but the rejection of the Secretary's
proposals and the bank propositions produced, it is
said, a good effect on the funds and the stock market
in New York yesterday, Mr. Cameron's nomination
to Russia was carried by a vote of 24 to 14 in the
Senate, after much debate, and that gentleman will
no doubt repair to St. Petersburg in a few weeks.
The steamers Gladiator and Vanderbilt had run the
blockade, and had arrived respectively at Savannah
and Charleston—how, one cannot understand,
Some of the papers are very angry at the arrival of
the Sumter iu Cadiz, and at her reception in a
Spanish port after the "piratical arson " of three
merchantmen. It would look as if the mortarboat
expedition now fitting out is intended for the
Southern cities on the seaboard. No news of the
Burnside expedition. The duel between Braxton
Bragg and Harvey Brown had been renewed and
ended at Pensacola, without loss of life on
either side. A railway for horse cars is to
be made across Hilton Head, where there are
signs of another expedition beiLg prepared. And
yet again the Mississippi expedition has made
a move, and has crept down within 12 miles of
Columbus, on the Kentucky side of the river, whence
there is a railway to Memphis. So much for the
heads of news. As to the great questions of the day,
there are few novel considerations presented which
demand attention. The New York 7imes urges the
enormous cost of the army as a reason for immediate
action ; the weather says, "No ; you must stand
fast." Itie raining now on deep masses of snow. As
each. 'United States' soldier in arms costs £2OO a
year, it ise_az,,,4 desirable to use him when he is
multiplied by hundreds of thousands. The army
and navy together of the United States are now
drawing an the nation at the rate of over
£160,000,000 sterling per annum (L 162,000,000).
Fiance paid or got
credits for X 1.3,000,000 in 1860
to maintain a larger army. Ten times the rate of
expenditure which reduced France to own a deficit
of £40,000,000 is rather alarming. Besides, the
French army could be depended upon ; it is a perfect
machine ; it moves and acts and obeys and fights.
The Aezo York Nines says,
"Our armies have rushedinto the field." So they have, but their advance
has been checked. It is affirmed on the same autho-
rity that the Government owes a floating debt of
100,000,000 dole, or £20,000,000 sterling, and its ex-
penditure is certainly not less than £450,000 a day
at present. Well may the journalist exclaim,
cannot indefinitely prolong the war; we shall, if
continued long, sink under the exhaustion." And
7 per cent. on th© loans too ! Well, this is all very
true ; but move your armies you cannot. It is asto-
nishing what apathy or self-conceit has prevailed
among military men in Washington on this subject.
They talked about famous winter campaigns made
by great Generals in Eerope, as if they had either
the armies or the experience or the country of which
they spoke; or they referred to some paltry expo
cations of a few hundred men on the frontiers with-
out artillery or cavalry, or snch vast baggage and
transport trains as would be required for the heavy
corps are to be set in motion, as proof that there
would be tin great difficulty in undertaking, opera-
tions in the winter. One General, for whom I have
a high respect in every way, thought it would be
easy to march to battle over corduroy roads to be
laid down as the troops went along. As to the

deployment of guns and horses in the deep snow,
mud, or soft pasty earth on either side of the road

it appeared to him to be an easy matteru But let
winter present such aspects all over the theatre of
operations as it does here, and it is quite certain that
the " grand combined movement of columns" on
which the very soul of the North is now depending
must be a physical impossibility. A small corps of
hardy troops could undertake enterprises in winter
which are not feasible for large bodies. Will it be
resented as impertinence to point out such obvious
considerations, or do Americans imagine they are
exempt from the operations of the laws of nature?
The Congress approaches the question of popular
taxation in a very gingerly manner, and with an
obvious hesitation; and they are gently reminded
by a New York paper that if they attempt any mea-
sure which shall practically reduce the soldiers from
13 dols. to 10 dols. a month there are 200,000 armed
men close to the Capitol who may take the law into
their own hands, and who arc pleasantly described
as a guarantee for a sound currency,

IMPORTANT FINANCIAL OPERATION
BY THE FRENCH GOVERNMENT.

(From the Times' City Article)
An artificial operation in French finance on the
London money market, analogous in some respects
to others that have taken place on former occasions,
was announced yesterday afternoon. The French

Government, it is stated, desire to borrow a sum-

ranging, according to different reports, between
£2,000,000 and £4,000,000, but believed to be the
former—from London capitalists, on the security of

French Routes, for a period of three months, with
an option to the lenders of an extension to six months.

The rate of interest to be paid is 4 per cent., with a
commission of a half per cent., which would toge-
ther on a three months' loan be equivalent to the
rate of 6 per cent., and it is to be stipulated that
if the Bank of England minimum should in the
interval be put up to 4 per cent. an additional 1 per
cent. is to be paid from that date. The Rentes to
cover the advance are to be hypotheeated at the
price of 60, and are to be held by Mr. Baring, M.
Hottinguer, and another banker, as trustees. Sub-
scription lists w ere commenced to be formed in the
afternoon, and looking at the present and prospec-
tive state of the discount market, there can be little
doubt the whole amount will speedily be fur-
nished. Concerning the wisdom of the measure
the estimate here will not be ♦ery favourable. The
object, of course, is to sustain the Paris Bourse so as
to facilitate the proposed conversion of the Four-
and.a-Half per Cents., and some persons may be
disposed to question whether it is quite lair or dig-
nified to use extraneous means for such a purpose.
Our own Government, however, in effecting similar
reductions in former years were not altogether
scrupulous on that point, although their measures
were-never so singularly transparent or expensive.
In any case the public will - view the matter in a
friendly light if it should promote the success of M.
Fould in his honest effort to restore the revenue and
expenditure of France to a sound position, and as
far as we are directly concerned there is nothing but
gain to ensue from it. Instead of finding difficulty
in employing their balances at 2 per cent.,as would
certainly have been the case but for the sudden
Paris demand, our capitalists will make 6 per cent.,
and we may at the same time be saved from the
inflation that might have resulted during the period
of three or six months in which money would thus
have been a drug. When the date arrives for its
repayment to us, the American war may, perhaps,
be at an end, or commerce may have found such
openings in other directions as to afford sufficient
employment for our floating funds at fair average
rates. Meanwhile it is not expected that the effect
of the arrangement as regards the Bank of England
terms of discount will be much more than to pre-
vent the lately anticipated reduction. unless the
total should prove to be £4,000,000, and be drawn
away rapidly instead of gradually. At all events,
the utmost change that can be thought likely is
that an approximation may _take place between the
rate of the Bank of France, which is now 41 per
cent., and that of the Bank of England, which is
21. In favour of our market we have the announce-
ment that the Federal Government of America have
resolved to persist in their scheme of flooding their
country with paper, and that the Australian gold
shipments to England during the month of Decem-
ber amounted to about £700,000.

(From the Daily News City Article.)
It transpired yesterday afternoon, though the '
news was confined to certain circles, that a finan-
cial operation of much importance has just been
arranged between the French Government and
some English capitalists, foremost among whom are
Messrs. Baring Brothers and Co. The Government
of France finds itself hampered by the natural
effects of a course of financial improvidence,
namely, a deficiency in the Treasury. Its embar-
rassments are believed to have been increased by
the large purchases of corn which it made last
autumn,andlwhich were partly but temporarily pro-
vided for by means of bills. Meanwhile it is
anxious to force a feeling of confidence at Paris,
with a view to facilitate the proposed conversion of
the Four and a Half per Cent. Rentes into Three
par Cents. It has accordingly arranged to borrow
the large sum of £4,000,000 sterling from this
country for three or six months (the period being
probably optional on the part of the Government,
depositing as security Three per Cent. Rentes at
the price of 60 per cent. in the names of Messrs.
Narings, Hottinguer, and other trustees. The rate
of interest is to be 41 per teat. with 4 per cent.
commission, or equal to 61 per cent. on the loan.
Private lists have been made, in which the names
have been enrolled of capitalists and other desirous
of taking part in the transaction. From the in-
fluence brought to bear there is no doubt it will be
carried through, although, seeing that at least 10
per cent, can be obtained from solvent persons on
the Paris Bourse for loans on security of the
Rentes, it does not appear at first sight to be a very
tempting one to ordinary subscribers. Neither is it
likely to be viewed with favour in general circles,
for the borrowing propensities of the French Go-
vernment do not deserve encouragement, and there
is a strong suspicion that no small portion of the
money will be applied to purposes connected with
bolstering up the market for a temporary object.
The operation may have a considerable effect
upon the money market, for, unlike one of a some-
what similar character, but for a smaller amount,

which was effected some months back, it comes at
a time when the exchanges have already declined

to the specie point, and when we have embarrassed
ourselves with some considerable purchases of
Italian and other foreign securities. There seems
little reason to doubt, therefore, that a large
amount of gold will leave the Bank of England,

and that that establishment, far from responding

to the anticipation of a reduction to 2 per cent,,
expressed in some quarters, will shortly, in self-
defence, raise its rate of discount. Forced and
temporary luans of the kind under notice, however,
need never excite real uneasiness. A rise in the
value of money from its preset unduly low point
will have a conservative action.

2118 CONSULA7'E AND THE EMPIRE.

in two actions, in which MM.
The Civil Tribunal of the
eLinheehuaresujxusatugdivCeon gm
Coven., the
ppub-
lishersire,,, aohf
M. Ae shald, gtomi raenr
ouf
Consulat
the
United et do '
Journals'Eni
M.
that when
Company, were in turns plaintiffs and defendants. It
appeared from the statement of counsel,
Mires was gerant of the United Journals' Company he
I made a contract with MM. Lheureux and Co. for 20,000
copies of M. Thiers' work, to be given, at a reduced price,
as piemiums for the subscribers to the journals belonging
to the said company. M. D'Anchald, who has succeeded
M. Mires as gerant, now sued MM. Lheureux and Co. for
100,000 fr. damages, on the ground that the publication of
the work had been unduly delayed, that the publishers had
offered the volumes to the public at a price below the mini-
mum mentioned in their contract, and al,o that the work
exceeded the number of volumes agreed upon. MM. Lheu-
lynx and Co. resisted that demand, and on their side sued
M. D'Anchald for the recovery of 42,500 fr., the value of
the volumes already delivered. Tho Tribunal decided that
M. D'Ancliald's demand for damages Was inadmissible, as
the delay in publication was not the fault of the publishers,
but incident to the nature of the work, and that the other
grounds of complaint were net contrary to the contract
made by his predecessor. With regard to the demand of
MM. Lheureux, the Tribunal decided that the 49 00fr.
were due on the Ist January last, and accordingly con-
demned bi. D'Anchald to pay them the said sum, with
moveinterest, from the move date, and all costs of suit,