The Sun.
London, England, 1862-01-02 00:00:00

THE SUN, LONDON, THURSDAY EVENING, JANUARY 2, 1862.

AMERICA.

QUEENSTOWN, JAN. 1.

The Royal Mail steamship Africa, from New
York on the 20th ult., arrived here at 2 a.m. She
brings 49 passengers and 191,384 dols. in specie.
She landed 96 sacks of mails and six passengers,
and proceeded for Liverpool at 2 45 a.m., all well ;
she experienced strong easterly winds on the pas-
sage.

NEW YORK, DEC. 19, EVENTNG.
The steamship Europa arrived at Halifax on the
morning of Sunday, Dec, 16, bringing European
advices to Dec. 2. A very full summary of the
opinions of the English press on the Mason and
Slidell case, and the important decision of the Bri-
tish Government, as well as the opinions of the Law
Officers of the Crown, was telegraphed to New York
and Washington, where the news was received on
Sunday afternoon. No journal was published, how-
ever, on Sunday ; but the nature of the news gained
currency through private circles, and caused intense
excitement, the more so as the previous advices per
the Hansa had led the public to believe that there
would be no difficulty with England on this ques-
tion.

A full telegraphic summary was published in
the American journals of Monday, the 16th of De-
cember, and the Mason and Slidell case became
the absorbing topic of the day. The press and
the public generally seemed to deprecate war with
England, and to cling to a vague idea that the
matter would be settled by some diplomatic arrange.
ment. Unanimity at first, however, appeared to
prevail among the press and public upon the most
important part of the question—namely, the sur-
render of Messrs. Mason and Slidell ; and the uni-
versal opinion was that the "national honour" of
the country could never permit the surrender of the
prisoners under any circumstances whatever.
The following day, December 17, the feeling
universally was much calmer and quieter through-
out all circles, and the general opinion was that war
would certainly not ensue; the idea of giving up
Messrs. Mason and Slidell was even discussed, and
its probability entertained, the argument being, if
the Federal Government was in the wrong in tak-
ing these men, there is no disgrace in surrendering
them; and if they were right, the question can be
discussed or settled by arbitration. The startling
rumour that the Federal Government had forbidden
tho export of specie gained credence in New York
for some time on the afternoon of December 17, but it
was soon ascertained that such a thought had never
even entered the head of the Washington Cabinet.!
The Europa reached Boston late on the afternoon
of December 17, having been 40 hours from Hali-
fax to Boston against strong head winds. It was
then announced that within 30 minutes after the
Europa touched at Halifax the British steam sloop
of war Rinaldo got up steam and left, in pursuance
of some orders, it was supposed, brought by the
Queen's messenger, to communicate with the Ad-
miral of the British North American squadron.
The Europa's mails were delivered in New
York December 18, and their contents largely
scrutinised. Captain Seymour, Queen's messenger,
and Mr. Cooke, messenger from Mr. Adams, arrived
in New York on the morning of Dee. 18, and at once
left for Washington by special train, where they
arrived at midnight.
The tone of the New York morning journals of
Dec. 18 was materially changed on the Mason and
Slidell question, and a degree of moderation was ob-
servable in discussing this subject, very different
from the articles of the few previous weeks. Whe-
ther through chance or any other cause, none of '
thorn oontainaa any aParntrhPq from Washington
on this question. On the afternoon of the lstn news
from England to 6th Dec. was telegraphed from
Portland, and the announcement of the formidable
warlike progress being made in Great Britain again
created great excitement and affected the money
market injuriously.
The following despatch from Washington was
published in the New York Times of December 19 ;
"A Cabinet was held to-day, at which the Eng-
lish question was discussed—of course informally,
as the nature of the despatches brought by the
royal messenger had not been divulged. There was
but one sentiment prevalent, and that was that no
quarrel with England must be permitted to inter-
fere at this moment to stay the reduction of the
Southern rebels. The Government is probably satis-
fied that the clamour for a war with England origi-
nates with and is progagated by sympathisers with
the Southern rebellion. It knows that nothing would
so gratify the rebels, would so restore their vanish-
ing confidence, and reinvigorate them to redoubled
efforts at defence, as the news that England is per-
mitted to come to their rescue. It believes it has no
right to give new life to the rebellion by entering
upon another and vaster quarrel, which would
at the same time increase tenfold the burdens
upon the people of the North, and it naturally
hesitates to adopt a policy which would carry
joy to every traitor in the country, and weigh down
to poverty the loyal and law-observing citizen. But,
whether these or other considerations govern in the
matter, I have the best authority for saying the
demands of England will be met in a spirit of con-
ciliation, which will at once refute the calumny that
Mr. Seward or any other member of the Cabinet
has been eager to provoke a foreign war. The in-
telligence received by the Jura, that thedespatches
with which Slidell and Mason were intrusted
reached England notwithstanding their arrest,ren-
ders the question as to the disposition of the persons
of the rebel envoys one of secondary moment, and a
most inadequate one on which to base a great in-
ternational struggle. It will be borne in mind that
the Administration is still uncommitted on the
Trent business. The subject was not mentioned in
the President's Message ; and the language of Sec-
retary Welles, in his report, and his letter to Capt.
Wilkes, are rather professional and personal than
diplomatic, and in no degree bind the State Depart-
ment. Of one thing the public may rest assured,
the subject will not be settled without an important
curtailment of the English pretensions to enforce a
right of search, which she finds it so unpalatable to
concede to other Powers."

The Tribune of the same date published the fol-
lowing :
'4 Captain Seymour and Mr. Adams's messenger
arrived about midnight in consequence of a delay
caused by a railway accident. Lord Lyons has de-
tained the Africa on Friday. Nothing can, of
course, be known of the despatches till to-morrow,
when the President will send a message to the
Senate on the subject of our relations with Great
Britain, which will be considered in Executive
Session.

" A rumour is afloat that:the Government has de-
cided to return Messrs. Mason and Slidell ; but we
are satisfied, after inquiry, that it is untrue.

" The question would not be decided in advance
of the receipt of Mr. Adams's despatches, and there
has been no Cabinet meeting since yesterday. The
Africa will carry to England a despatch from Lord
Lyons, containing little more than the intelligence
that he has received and delivered to the American
Government his instructions from the Foreign-
office."

These despatches, it will be seen, entertain the
idea of the surrender of Messrs. Mason and Slidell
—the first time that the New York press has argued
the possibility of their surrender since their seizure.
The detention of the Africa for despatches was
settled immediately on receipt of the Europa's ad-
vices.

In Congress on Dec. 16 Mr. Vallandigham (Oppo-
sition, Ohio) introduced a preamble and resolution :
"Whereas, the Secretary of the Navy has reported
to this house that Capt. Charles Wilkes, in command
of the San Jacinto, an armed public vessel of the
United States, did, on the Bth November, 1861, on
the high seas, intercept the Trent, a British mail
atcamero and forcibly remove therefrom Memo.

James M. Mason and John Slidell, disloyal citizens,
leading conspirators, rebel enemies, and dangerous
men, who, with their suite, were on their way to
Europe to promote the cause of the insurrection,
claiming to be the Ambassadors from the Seceded
Confederate States; and
" Whereas, the Secretary of the Navy has further
reported to this house that the prompt and decisive
action of Capt. Wilkes on this occasion merited and
received the emphatic approval of the Department,
and, moreover, in a public letter has thanked Capt.
Wilkes for the act; and

4, Whereas, this horse on the first day of the
session did propose to tender the thanks of Congress
to Capt. Wilkes for his brave, adroit, and patriotic
conduct in the arrest a the traitors Messrs. Mason
and Slidell; and

W hereas, on the same day this house did request
the President to confine the said James M. Mason
and John Slidell in the cells of convicted felons until
certain military officers of the United States, cap-
tured and held by the so-called Confederate States,
should be treated as prisoners of war ;
Therefore be it reso'ved, 'as the sense of this
House, that it is the dut7 of the President to now
firmly maintain the stela thus taken, approving
and adopting the act of Captain Wilkes, in spite of
any menace or demand of the British Government;
and that this House pla4..s its jail support to
him in upholding now the honour and vindicating
the courage of the Government and people of the
United States against 3, foreign Power."
Mr. Vallandigham noved the previous question.
They had heard the fist growl of the British Lion.
It remained to be Ben who would be cowed.

Mr.. Fenton (Republican, New York) hoped the
resolution would be re:erred to the Committee on
Foreign Affairs. _ _

Mr. Vallandigham remarked that a former re-
solution approbatory of Captain Wilkes was passed
without being so referred. He (Vallandigham)
had offered this resolution in good faith and would
stand by it.
The House then refused to second the demand
for the previous question.
Mr. Fenton again moved that the preamble and
resolution be referred to the Committee on Foreign
Affairs. The motion was agreed to by yeas 109,
nays N.

At 1 p.m. to-day (Dec. 19) a general impression
prevailed among well-informed circles that the
Washington Cabinet will surrender Messrs. Mason
and Slidell if the demand of England is couched
in such terms that it can be complied with without
hurting the susceptibilities and wounding the
national honour of one great nation in its inter-
course with another.

The immediate effect of the Europa's news upon
the stock and money market on the 16th December
was startling. There was a general fall of about
3 per cent. in the stock market, and a depreciation
in several instances of from 6 to 6 per cent. Western
shares fell from 3to 5 per cent. Sterling exchange
rose to 1101 to 111.
The New Fork Herald, in its edition of Dec. 17,
in a characteristic article on England, argued that
there was probably 600,000,000 dols. worth of pro-
perty of various kinds—stocks, bonds, real estate,
merchandise, &c., belonging to British and French
subjects; and, in case of war with England and
France, the Berald urged the Government to appro-
priate the whole of the property of private indi-
viduals, and also recommended the Government to
prohibit immediately the further export of bread
stuffs to Europe.

The Bank statement of December 16 showed an
unexpected large decrease in specie, the decrease
amounting to nearly three millions, without any
specie shipments to Europe. A suspension of specie
payments by the Boston, New York, and Phila-
delphia banks was considered certain, but, contrary
to expectation, at a meeting of the banks in New
York on December 16th it was resolved not to sus-
pend specie payment. The following resolutions
were passed unanimously
Whereas the public mind has become unduly
agitated in regard to the financial course to be pur-
sued by the banks and the United States Govern-
ment, which has led to a premature discussion of a
suspension of specie payments ; and

" Whereas an examination into the condition of
the specie of the country has resulted in the belief
that we now hold 80,000,000 dols. of bullion more
than we held a year ago, of which a fair proportion
is in the banks ; and

" Whereas the exports of cereals and provisions
have so far exceeded those of former years that,
notwithstanding the loss of the cotton crop, our
exports far exceed our importations, and there is no
demand for foreign exchange to warrant consider-
able shipments of coin ; and

" Whereas, the pending difference with Great
Britain will probably prove to be capable of a
diplomatic solution through the ordinary channels,
or by arbitration, and fears on this core are pre-
mature and groundleo;:and. -
" Whereas, there is.nothing in the position of the
loans to the Government to cause uneasiness, and
the entire arrears -die—upon them from the Banks
of this city (a considerable part of which is to be
reimbursed) do not exceed 21,500,000 dols., pro-
vided the Secretary in his draughts therefore will
consult their wisher, which may be expected from
him from motives of interest and policy, as well as
from his promises ; and
" Whereas, independently of all these considera-
tions, it is not only unbecoming, but bad faith, for
fiduciary agents to refuse the just demands of de-
positors, unless for clear cause and manifest neces-
sity, and nothing but an entire want of public con-
fidence, or great national considerations, rendering
it impossible to comply with all engagements, can
ever justify such refusual ; therefore be it
" Resolved, that the New Jerk Banks, with
assurances from the representatives of banks in
Boston and Philadelphia of their co-operation, see

no reasonable justification or necessity for the sus.

pension of specie payments, under the existing state
of their relations R ith the banks of this country,
the United States Government, and Europei
" Relying therefore confidently on the harmoni-
ous action of the Government, on the continued
confidence of their depositors, and on the patriotism
of the people, they will maintain specie payments."
The America, from Liverpool on the 7th instant,
passed Cape Race on the 18th instant, but was not
intercepted.

NEW YORK, DEC. 20, MORNING.
The latest advices receivedfrom Washington this
morning report that Lord Lyons had not yet de-
livered any official despatches to the Federal Go-
vernment.
It is remarked that at the President's last levee
neither the English, French, nor Prussian Minister
was present.
Mr. Secretary Chase, at a Bank meeting, expressed
an opinion that by January the Federal naval and
military operations would give decisive results, and
that the British question was capable of and would
have a pacific solution.
The 62d and 63d Regiments are under orders at
Halifax for Canada.

QUEENSTOWN, JAN. 1.
The Africa, Cunard mail steamer, arrived off the
harbour this morning. She brings news to the
20th ult., but not, of the decisive character expected.
The following is the latest Washington despatch in
the New ork. _Herald :

" The mail bag containing the despatches from
Minister Adams was placed in charge of Captain
George Cook, of the 22d Massachussetts Volunteers,
at Boston, with a view of expediting its transmis-
sion to Washington. Captain Cook travelled with
the Queen's messenger, Captain Seymour, by the
Shore Line route from Boston to New York, where
they arrived more than two hours behind time and
missed the connexion. The English bearer of des-
patches proceeded by special train.

‘.l Captain Cook telegraphed Secretary Seward to

know if he should engage a special train, and re-
ceived answer that it was not necessary. He ar-
rived with his charge this morning, only a few hours
behind Captain Seymour. The despatches were
calmly received by the Secretary. They filled a
large mail bag and weighed 100 lb.
" At New Haven there was great excitement at
the depot when the train arrived. There was an
immense crowd, curious to see the Queen's messen-
ger, who was then fast asleep.
" An absurd rumour was circulated to-day that
the Government decided last evening to surrender
Mason and Slidell. It is without any foundation
whatever.

" Up to 11 o'clock to-night Lord Lyons had made
no communication from his Government to the Pre-
sident or Secretary of State relative to the seizure
of the traitors Mason and Slidell. Mr. Adams, in
his communication to Mr. Seward, gives a clear and
detailed idea of the feeling of the British people
and the sentiments of British statesmen, but does
not indicate that he knows the purport of the in-
structions 'of the English Government to Lord
Lyons.
"Nothing contained. in Mr.Adams' despatches in- i
dicates that that Government will make any exor-
bitant demand upon the United States relative to
the seizure of the traitors. This is not only.trne,
-but I am permitted to' announce, •by high Ada'
authority, that private letters received to-day from
distinguished British statesmen, assert that the Go-
vernment of Great Britain will not demand the
release of Mason and Slidell, but will require an
apology and such reparation as the United States
can honourably grant. This is also confirmed by
other private correspondence from Americans in
London who have facilities for learning something
of the intentions of the British Government.

" The French Minister gave a dinner this evening.
The British, Spanish, Russian, and other Ministers
were present. In conversation the tables were
rather turned upon the French Minister that he had
received no instructions from his Government on
the Mason and Slidell affair, since France was
viewed as the chosen ally of England. This was
pleasantly done, but the French Minister did not
relish the joke.

" The President has important private letters
,hat will have great weight in the summing up of
his traitorous imbroglio." _ _ _

The following are the comments of the Herald :
" Beyond the safe arrival yesterday in Washington
of the Queen's messenger with his despatches for
Lord Lyons, and our Government messenger with
a heavy mail bag from Mr. Adams, our Minister at
London, we have this morning little additional
facts of any moment to communicate to our readers
upon the Mason-Slidell affair. We presume that
the Cabinet has made a preliminary examination of
the despatches from Mr. Adams, and that Lord
Lyons has been diligently employed upon the facts,
the law, and the merits of the case as submitted to
him, with the instructions from his Government,
whatever those instructions may be, and that
within a few days Mr. Seward may expect to
hear from him. Meantime we are gratified with
our assurances from Washington that no appre-
hensions are there entertained of a rupture with
England upon this little affair of the Trent; that
the President and his Cabinet are perfectly calm
and unruffled ; and that in Congress the only voice
which 'is still for war' is that of Mr. Vallan-
digham, of Ohio, whose zeal is considered as out-
running his discretion. Meantime private letters
from British statesmen give assurance that no de-
mand will be made on our Government for a
peremptory surrender of Mason and Slidell, but
only for such apology as we can honourably grant.
For a day or two past Mr. Chase, our able and in-
defatigable Secretary of the Treasury, has been
consulting in reference to the ' sinews of war' with
our bankers and financiers, and his unshaken equa-
nimity and positive opinions of an amicable adjust-
ment with England have contributed much to re-
store confidence and order in Wall-street. From
the full details of the news by the Jura it has also
been discovered that the lapse of two short days had
produced a visible abatement of the sudden war
panic which had been aroused in England by the
first highly coloured reports of the seizure of
Mason and Slidell. The calm and sensible letter of
Gen. Scott, and the seasonable and convincing peace
speeches of Messrs. Cobden and Bright had been
heard, and evidently set the idea afloat that there
were two sides, not only to the affair of the Trent,
but two sides in England to the question of a war
with the United States at this crisis. We may there-
fore safely conclude that a war panic which is in-
flated to its climax in two days, and which then
begins to collape, is but a bubble, and that the
question at issue will neither be peremptorily pre-
sented for an immediate decision to our Cabinet
nor hastily considered by cur Secretary of State. If
the difficulty is of that grave and commanding im-
portance which the London Ministerial journals
have declared it to be time will be required to con-
sider it ; and if the whole matter lies within the
nutshell of a petty technicality there is no necessity
for precipitate action. We presume that Lord
Lyons will present his case in one of those diplo-
matic notes of several newspaper columns in extent,
and that an appropriate reply will demand an ex-
tension of the argument, and so on until the issue
of war involved shall have melted away into an
amicable arrangement."
The effect of the Europa's news is thus sha-
dowed:— _ _

"PHILADELPHIA, DEC. 16.
" The money article of the Bulletin, of this city
says : _ _

" The foreign news caused a feverish and excited
Stock-market to-day, with a downward tendency,
particularly in fancies.' Reding declined one per
cent. The better class of securities sympathizes
with this downward movement, but, in the absence
of transactions, prices are entirely nominal. The
best bids for State loans are one per cent. below
Saturday's prices. In monetary circles there is
much distrust, and capitalists are holding off until
the bluster and excitement subside. The general
belief is that the English press exaggerates the
.policy of that Government, and that the difficulty
is one that can be settled by diplomacy. The affair
will, however, doubtless have the good effect of
arousing our citizens to a sense of our weakness in
ltbe defences of this locality, and settling the dispute
at present existing between the State Department
aatd the State Government respecting the necessity
off their immediate improvement. There was but
li:ttle movement in cotton to-day, and prices are un-
eltanged. There was some little excitement at the
ce,rn=exchange. Breadstuffs are generally un-
changed. The resolution of Mr. Vallandigham in
Cie House to-day is deprecated as an attempt to
Torte results which the State Department may be
ale to avert.'

BALTIMORE, DEC. 16.

"The effect of the English news in Baltimore has
Toeen to call forth a warm Union sympathy with the
position of the President, while the rebels are re-
j Dicing at the prospect of the aid of England to
overthrow the Union. Nearly all the Irish in Bal-
C..more have been rebels, but they are now rallying
for the Union against England.
"PITTSBURG, PENNSYLVANIA, DEC. 16.

" The English news was received here with gene-.
3ra.l astonishment and profound indignation at the
tone of the English press and the alleged policy of
tie British Government. There is one sentiment
only here, that the honour of our country must be
maintained, and no concession made to British
blus t er.

" LOUISVILLE, KENTUCKY, DEC. 16.

" The English news was received, on the whole,
with indifference. It had a slightly unfavourable
effect on the tobacco sales. Those with Secession
proclivities aro rather elated, in the hope that Eng-
land will assist in opening the Southern ports, while
the Unionists either discredited the news or be-
lieT,ed that the next steamer would show an essen-