The Sun.
London, England, 1862-01-20 00:00:00

AMERICA.

ARRIVAL OF TEE NIAGARA.
QUEENSTOWN, SUNDAY MORNING.
The royal mail steamer Niagara arrived here at
4.30 a:m. She brings 38 passengers, and 312,550
hollers, She !raided 100 sacks of mails, and pro-
ceeded at five a.m. all well. She left Boston on the
Bth, and Halifax on the 10th instant.
NEW YORK, JAN. 7, EVENING.
There has been a debate in Congress on the Trent

question.
Mr. Vallandigham was dissatisfied with the sur-
render of Messrs. Mason and Slidell. He said Ame-
rica would be at war with England in less than
three months, u n less the Federal Government tamely
submitted to a recognition of the South, and to a
raising of the blockade.
Mr. Hutchins considered that Me. Vallandigham
wanted a war with England for the benefit of the
South.
Mr. Thomas considered that England had done
that which had implanted within American breasts
a sense of wrong, which would wait an opportunity
to strike a blow of retributive justice.
At a crowded meeting of British residents, held
at the English consulate, New York, an address of
sympathy and condolence with the Queen was
adopted.
The New York Times says:—" The Congressional
Committee will report a bill authorising the issue
of 100,000,000 dols demand notes, and making them
a legal tender, exchangeable for six per cent, bonds.
Similar privileges are to be extended to the demand
notes already issued."
The Richmond papers report the arrival at
Charleston of the Confederate steamer Isabel, from
Nassau, with a cargo of arms.
The New I ork Tribune states that England in-
tends to occupy Matamoras, and open a cotton trade
with the South, through Brownsville, Texas.
The new tea and coffee tariff will not be enforced
on goods now in bond.
The Mayor of New York, in a message, says that
in the present critical condition of relations, the
British Government giving repeated evidence of
unfriendliness, the defences of New York demand
attention. He urges that rafts, or other barriers
should be anchored at the Narrows, in readiness to
obstruct the channel, if necessary.
3,600 bales of Sea Island cotton have arrived at
New York from Port Royal,
The Feder had po-tacked the Confederates at
Port Royal Ferry, destroying some Confederate
works there,
The Secretary of the Treasury, in reply to the
urgent representations of the commercial commu-
nity, addressed a letter to the Committee of Com-
►nerce of the Senate, and the Committee of Ways
and Means of the House of Representatives, urging
that tea and coffee at present in bond, should be
allowed to be withdrawn on payment of duties
under the old tariff, and the amount already levied.
on goods withdrawn under the new tariff should be
refunded. Both houses of Congress have passed.
resolutions accordingly to this effect.
General Fremont is now in Washington, and is
giving his evidence before the Committee of Inves-
tigation sitting there.

A scouting party from Fortress Monroe disco_
vered that Big Bethel has been deserted by the
Confederates. It had apparently been occupied by
3,000 or 4,000 men, including 200 or 300 cavalry.
Breastworks were found nearly half a mile in ex-
tent and pierced for 12 guns. No guard of Federals
was left there. The Burnside expedition is daily
expected at Fortress Monroe.
Two hundred and forty exchanged prisoners have
arrived at Fortress Monroe from the South. It
would appear that some arrangement has been
made by which a mutual exchange of prisoners will
in future take place between the Federals and Con-
federates in a regular manner.
The New York Times says :—" A resolution has
already been framed and will soon be offered for
the abrogation of the reciprocity treaty with the
Canadets. Under the provisions of that document
a year's notice is required before it can be abro-
gated."

The Confederates are said to be fortifying Lees-
burgh, and collecting a large force there.
A despatch from Mobile, dated Jan. 1, says :
" A Confederate steamer, going from Pensacola to
the Navy-yard, was fired upon from the batteries at
Fort Pickens. General Bragg's batteries replied,'
and the firing was continued at last accounts,"
The Richmond Despatch says that according to a
private despatch from Mobile the Federals have
nominal possession of Biloxi, and it is believed
they will occupy all the towns on the coast in
that region. They captured two cannon at Biloxi.
It is stated that they landed there froin 5,000 to
7,000 troops, and it is further rumoured that they
intend to push.forward their forces to Jackson.
No important military movements have been
made.

In Mr. Sumner's speech, in the Senate, he states
that Captain Wilkes was not justified in searching.
the Trent and seizing the Commissioners, though,
Captain Wilkes acted according to international
law, as expounded by British authorities. If Cap-
tain Wilkes suspected the Trent, he should have
taken the Trent into port for decision. But no
Federal court, recognising American precedents,
could have lawfully condemned the Treat, or held
the Commissioners. Captain Wilkes, misled by
British law books, violated American principles.
England, by demanding the Commissioners, stulti-
fied her history, and virtually acknowledged the
justice of the position long maintained by America►.
The people were indebted to Captain Wilkes for the
act, and to Secretary Seward's statesmanship for a
great political triumph.
The Congressional Committee reported a bill for
the issue of 100,000,000 dollars demand notes, to be
a legal tender, receivable for Government dues, a nd
exchangeable at any time for six per cent. 20 years'
coupon or registered bonds.
The Senate has not yet passed the modified ar-
rangeMent in the Tea and Coffee Tariff Bill.
The .2rew York ribuno states that Messrs.
Zachary and Rodgers have been released from Fort
Lafayette,

Several boxes of Canadian wool (?), marked
"W. D., Rift) Brigade, Australasian," have been
washed ashore at Ashe Bay.
The steamer Ella Warlev, from Nassau, ran the
Charleston blockade.
The steamers Bremen, Kangaroo, and Bohemian,
have arrived out.
The Australasian has arrived at New York.
The Parana is safe, was at Sydaey coaling, and
will he at Hal;fax on the 10th. •
The Cleopatra has arrived, all well.

COMMERCIAL INTELLIGENCE.
NEW YORK, JAN. 9.
Exchange: Bankers' bills, 115; gold, 43 per cent.
premium. Stooks firm, hut Ti.e New York
Centr.al, 813; Illinois, 611 ; Erie, 24. Bieadstuffs
firm. Cotton dull, and nominal; middling Up-
lands, 36c.

- LIVERPOOL, MONDAY, 12 20 A.M.
The Niagara, from Boston, is off the port.

Viscount Canterbury has left town on a visit to
ale Marquis and Marchioness of Ailesbury at Tottenham
Park;