The Sun.
London, England, 1862-02-10 00:00:00

federates, besides the loss of their general. The
victory is in fact a double one. The Federalists
first repulsed a formidable attack, after a hard-
fought day; they next drove the enemy out of
their own entrenched lines. They so dispersed
them that the " residue of the Kentucky
campaign will be fought in Tennessee."
Looked at in every light, the victory is
invaluable to the North; it cheers the money
market with the prospect of an earlier con-
clusion to the campaign ; it encourages the army
by the prestige of returned success, and it puts the
extinguisher on one favourite project of the South.
Finding themselves being gradually surrounded by
the coast and river movements of the North co-
operating with the frontier forces, the scheme advo-
cated at Richmond has been to burst through from
Kentucky into Ohio, and to create a diversion
there. Now, Kentucky seems to be at the feet
of General SCHOEPFF. As a border State,
its loyalty was divided ; the Unionists, however,
proved the strongest. The South poured in troops
to aid the Secessionists, but the battle of Mills
Spring seems to have given the military as well
as the political superiority to the Union party.

The new Secretary of War, Mr. STANTON, thus
enters on office with a happy omen, nor does he
neglect to avail himself of it, Almost his first
general order, is one of thanks to the United States
forces for a brilliant victory, accompanied by an in-
timation that the people of the United States will
rejoice to honour every officer and soldier, who
proves his courage by " charging with the bayonet,
and storming intrenehments, or in the blaze of the
enemies fire." The Americans in Paris are delighted,
and predict that the South will now quickly give up
the contest ; though they acknowledge that some
financial confusion must follow. The North is not
doing much besides of an aggressive character.
Another stone fleet is reported to be already off the
second deep-water entrance to Charleston har-
bour, and General BURNSIDE'S naval expedition,
with 25,000 men, to be in Pamlico Sound; but the
great battle of Mill Spring, Kentucky, is quite
enough for one mail.

But the same mail brings us the definite particu-
lars of Mr. CHASE'S proposals. They are pretty
nearly what had been rumoured previously. The
Secretary of State is empowered to issue one
hundred millions sterling of bonds, bearing six per
cent. interest. These are the basis for an issue of
thirty millions of legal tender paper, receivable for
all purposes; and the value of this paper is to be
retained at par, by its being convertible at pleasure
into the Government Six per Cent. Stock above
mentioned. Whoever finds he has too much paper
inconvertible into gold, will, therefore, be enabled
to convert it into a six per cent. stock which can-
not be paid off in less than twenty years. While
American Six per Cent. Stock remains, therefore, at
par, the otherwise inconvertible paper will remain
at par also. It would almost appear as if the
Government purposed to issue so much inconver-
tible paper as should drive the holders of it to in-
vest it in the six per cents. The thirty millions
they propose to issue are, it is understood, absorbed
by existing engagements. They propose to raise
also another thirty millions by taxation, but the
gravest doubts are entertained whether it be pos-
sible to get the money. If so, there seems to be
no remedy, but the inconvertible paper, which—as
few persons who supply the Government want to
invest in the fends—must rapidly depreciate in the
holders' hands. Very soon even the Government
itself must find that it will have to give two or
three dollar notes for what might be purchased for
a single silver dollar.

What is to be the issue of all this ? Victory
is dawning on the North, and stone fleets,
and sea and river expeditions, are annoying
and even alarming the South. For the moment all
is exultation north of the Potomac. Will it last ?
If victory follow victory—yes. But what if one
reverse should concur with a depreciated currency,
and demand for double and treble taxes ? Would
there not then be a cry for a settlement by negotia-
tion ? Would it be rage and revenge, or,
" smart" prudence betimes ? It is astonish-
ing how coolly, at present, the Northerners look
upon their own insolvency. Even the money
market does not feel it to the extent which might
have been expected. The banks, of course, have
the greatest interest in sustaining the credit of
their debtor, the Government, and they have one
thing in their favour—" repudiation" seems to be
impossible. However heavy the debt, it will all
be due to citizens, and it seems, therefore, pretty
certain that the interest will be duly paid.

A flood of light, we take it, will have been
thrown upon the oft-discussed question of the
Military Defence of our Colonies, by the recent
manifestation of Loyalty by the Canadians. Loy-
alty or Patriotism—terms under our constitutional
system of government almost identical—has long
ago been wisely and wittily termed the Cheap
Defence of Nations. That cheap defence, we now
have been enabled to recognise, is not by any
means restricted within the intricate variations of
the tide-line marking the seaboard of these islands.
It is a political sentiment or a political principle
, treasured in the heart of every earnest Englishman.
It is a feeling diffused as far and as wide as the
bounds of our dominion. Wherever the Civis
Britannicus is to be found upon soil owning the
sway of VICTORIA, in the western or in the
eastern hemisphere, in Europe or in Asia, in Africa,
or in America, at home or away in our Australian
antipodes, there is that same vital patriotism, that
same ineradicable and enlightened loyalty, which
from the chivalric heart of the Hungarian people
nearly two hundred years ago, drew forth in the
cause of MARIA THERESA that impassioned war-
cry, Ltforiamur pro .Rege Noetro ! It is not ex-
travagant to say this in regard to our colonists
throughout the whole vast scope of our scattered
possessions. Enough if in testimony of this evidence
of a conscious identification of interests between the
mother country and her colonies, we point to the
majestic display of a loyalty and a patriotism of
the most unmistakeable kind, and of the most easily
recognisable unanimity manifested throughout the
Two Canadas during the late dire extremity. By
a singular coincidence, a courtly touchstone had
been applied to the mere graceful sentiment of
loyalty among the Canadians, just before the'dis-
ruption of the United States, upon the occasion cf
the visit to the North American Continent by the
Heir Apparent to the Throne of England.- Cordial
and enthusiastic though that kindly bearing of the
Canadian people was towards his Royal Highness
the Prince of WALES when he came among them,
still, if it had been followed by no more practical
demonstration than that made in the crowded
streets and the gay ball-rooms of the towns and
Cities of the Two Canadas, when the multitude
turned cut in their holiday costumes to cheer the
eldest son of the reigning SOVEREIGN, the Future
Rurvleorui
fe •
otfhetnhe British Empire—all the zeal and
for a token
than a mere
soon
mg more earnest in its way
ofgrnaoctehf displayedu.i
sentiment might have been mistaken
to
followof loyalty.ha d u Tp
ohne
crisis that was fated so
that bright holiday tour of the Royal excursion
has shown, however, betimes, and shown, moreover,
quite unmistakeably, that the loyalty of the Ca-
nadian is xn very truth the patriotism of that

modern Roman boasting the world-over, Civis
Britannicus sum. Brief though the interval was
during which England was threatened through
Canada with " imminent war," it was perfectly
sufficient, as demonstrative of the depth and
diffusion throughout our North American pro-
vinces, through all ranks and classes
there of our colonial fellow-citizens, of
a loyalty and a patriotism as earnest, and real,
and ineradicable as our own. Henceforth our own
imperial share in the military defence of the
colonies need only be as auxiliary. The
QUEEN'S troops need only come judiciously in aid,
and that, moreover, in comparatively small propor-
tions of the troops raised and maintained by the
colonists themselves. It has long been a day-dream
with some that this might be the eventual arrange-
ment of our defences throughout the whole of our
colonial empire. That beautiful day-dream now
appears in a fair way of speedy and practical reali-
sation. The question that has before now puzzled
so many of our ablest administrators may be re-
garded as indeed no longer problematical. The
problem in effect has by this time been fairly
worked out : and we have the solution of it brought
distinctly under recognition by means of the noble
and admirable bearing of those powerful and energe-
tic 3,000,000 Canadians, in whom we recognise not
only loyal subjects of the QUEEN but to all intents
and purposes devoted and patriotic Englishmen.
Three years ago,that is in 1859, an official committee
was appointed to inquire into our military expen-
diture in the colonies. It was composed, this com-
mittee, of men no less admirablyqualified to discharge
the duties devolving upon them as recipients of
this weighty responsibility, then—Mr. HAMILTON,
Assistant Secretary to the Treasury; Mr. FREDERIC
ELLIOT, Assistant Under-Secretary in the Colonial
Department; and Mr. GODLEY, Assistant Under-
Secretary in the War Department—three able
public servants, one of whom (Mr. GODLEY) has
since then passed from the world prema-
turely. There, in the Reports of the Select
Committee—reports comprising within them, for
there were two, the united labours of Mr. HAMIL-
TON, Mr. ELLIOT, and Mr. GODLEY, representing
respectively the Treasury, the Colonial, and the
War Departments of our complex system of Admi-
nistration—there, in that duplex Blue Book, one
report being drawn up independently by Mr.
ELLIOT, of the Colonial-office, and the other, the
companion report, jointly by Messrs. GODLEY and
HAMILTON, the whole of the three somewhat
anxious questions of our Colonial defences was dis-
cussed resolutely and searchingly. What was in
a great measure matter of profound solicitude there
was here simplified very recently by the flooding
its obscure corners of that light of patriotic loyalty
coming to us from the opposite shores of the
Atlantic during the late momentous juncture when
the alternative of War or Peace appeared to be
trembling in the balance between the British Go-
vernment and the Federal Government at Washing-
ton. It is interesting still to look back, however,
to the more authoritative report furnished by the
majority of the little official committee above re-
ferred to—the report that is drawn up con-
jointly by the late Assistant Under-Secretary
in the War Department, and the present
Assistant-Secretary to the Treasury. For it
is curious to call to mind now, that the pro-
posal of Mr. GODLEY and Mr. HAMILTON is " That
(with the exception of Malta, Gibraltar, Corfu,
Bermuda, and a few other garrison-statsons) the
system of defence for the colonies should be founded
on two simple principles, namely, colonial manage-
ment and joint contribution at a uniform rate.
They advise that the Imperial Government should
call upon each colony to decide the nature of its
own defences, and the amount of its garrison, and
should offer to assist it, by bearing a share of the
entire cost. They further recommend that the
Imperial Government should furnish this subsidy
either by a pecuniary contribution towards a local
colonial corps, or by sending imperial troops."
Here comprised within the narrow compass of these
very rational proposals, we find foreshadowed the
very scheme of Military Defence that recent events
have in a manner spontaneously demonstrated to
be at once the most feasible, the most desirable,the
most reliable, and the most economical. Not em-
P:oYing the words, for one instant, profanely, we
might, as the clue of a principle guiding us through
all that labyrinth of difficulties, indicate the conclu-
sion alone to be arrived at in regard to the Military
Defence of our Colonies, by saying that England
henceforth may be looked to, to help those (among
I her colonists) who help themselves.

" The Prince of Wales, travelling under the
name of Baron de Rumford," says a let er from Calais,
dated Saturday, " arrived here this morning in the Admi-
ralty yacht Vivid. His Royal Highness, who is on his
way to Egypt, via Germany, afterwards left for Cologne."
The Marquis and Marchioness of Clanricarde
will come to town to-morrow from Portumna Castle, county
Galway.

The Marthioness of Downshire and Lady Alice
Hill left lolkestone for the Continent, by the South-
Eastern Company's packet the Lord Warden, on Saturday.
The Earl and Countess of Bective have left the
Lodge, 'Virginia, county Cavan, for Thomas's Hotel,
Berkeley-square.

The Countess (Dow.) of Yarborough is expected
in town to-day from Brighton.
Lord Crewe has left his residence in Hill-street,
for Crewe Hall, Cheshire.

Lady Elizabeth Adeane was safely delivered of a
daughter, on Saturday morning, at her residence in Sea-
more.place. Her ladyship and the infant are progressing
favourably.

The Speaker will give his first Parliamentary
dinner on Saturday next, at Westminster Palace.

Fox CLUB.—The first meeting of the Fox Club
this year took place on Saturday evening, at Brooks's.
Present : The Earl of Albemarle, Right Hon. Stephen
Luahington, Hon. Fitzpatrick H, Vernon, Martin Tucker
Smith, Esq., M.P., Col. Hambleton F. Custance, Earl of
Fife, Lord Cremorne, Col. R. A. Shafto Adair, Col. Hon.
Wenman Coke, M.P., Augustus K. Stephenson, Esq.,
Hon. Hamilton H. Duncan, Edward Ayshford Sanford,
Esq., Edward Ellice, Esq., M.P.. Lord Sandys, Lord
Mostyn, Sir M. J. Cholmeley, Bart., M.P., Hon. George
Fitzwilliam. Hon. Leopold Agar Ellis, M.P., Colonel J.
M. Caulfeild, Lord Llanover,

ThE REPRESENTATION OP LEICESTER.—Another
vacancy in the representation of Leicester has occurred,
owing to the retirement of Mr. J. Biggs. On Saturday
evening a meeting of the Committee of the United Liberal
Registration Society was held, Mr. Alderman Whetstone
in the chair. A resolution expressing the great regret of
the committee at Mr. Biggs' resignation, and its thanks to
him for his services, was unanimously passed; as was a
second, recommending that the advanced Liberals make
their F election of a candidate to supply the vacancy created
upon the present occasion. It is believed that Mr. P. A.
Taylor will be invited to represent the borough, as be is
spoken very highly of by those who supported him at the
previous election.

THE INTERNATIONAL EXHIBITION.—On Satur-
d,ty the eastern dome, so far as its main features of con-
struction are concerned, was completed. At three o'clock
the ceutreings, or supports, of the 12 ribs were knocked
away, and the immense mass of metal stood for the first
time supported alone by the columns and groined girders.
When the supports were removed, and the whole weight of
the dome was thrown on to the columns, the enormous mass
deflected only one-eighth of an'inch. At the time of strik-
ing away the blocks, or wedges, there were present—Mr,
Thomas Fairbairn ; Mr. Baker, engineer to the London
and North-Western Railway; Mr. Peter Rolt, of the
Thames Iron Works; Captain Ford; Mr. Meeson, and
several other gentlemen interested in the progress of the
works. Those who were present at the ceremony were
hoisted to the crown of the dome by a square wooden box,
and the tedious ascent by ladders was thus avoided. The
first piece of this dome was raised on the 7th of December,
so that the largest dome in the world has been completed,
so far as the ironwork is concerned, in 62 days. There still
remains the glazing and some of the minor portions of the
work to be completed, but the " big dome" is practically
finished. Two months will probably elapse before the
domes are entirely finished and painted, and the immense
timber staging its removed,--Observer.