The Sun.
London, England, 1862-01-09 00:00:00

LATEST NEWS.

._~.~___

PEACE W H AMERICA

RELEASE OF MESSRS. SLIDELL
AND MASON.

A telegram, dated the 27th of December, was
received at the Foreign-office from Lord Lyons,
soon after four o'clock this afternoon, announcing
that the United States Government had consented
to deliver to him the prisoners when and where he
pleased.
Foreign-office, Jan. 8, 1862.

CORK., JAN. 8.

Shortly before the Washington left New York a
telegram was received at Inman's office from Wash-
ington saying that the Commissioners would be
surrendered, and leave for England by the next
mail. The prisoners were to be set free on the 29th.

DIPLOMATIC CORRESPONDENCE ON THE
TRENT AFFAIR.
LONDONDERRY, JAN. 9.
The Canadian steamer Jura, which arrived here
this morning, was detained at Portland six hours
for Lord Lyons' despatches, which she takes to
Liverpool direct.

NEW YORK, DEC. 28.
(Per Jura, via Portland and Londonderry.)

The diplomatic correspondence in reference to
the case of Messrs. Mason and Slidell has been
published.

It commences with a despatch from Mr. Seward
to Mr. Adams in London, declaring that Captain
Wilkes acted without instructions, and hoping that
the British Government would consider the subject
in a friendly temper. Mr. Seward says also that
the British Government may expect the best dis-
position on the part of the Federal Government.
The next despatch is from Earl Russell to Lord
Lyons, stating the outrage on the British flag, and
hoping that the act was committed without instruc-
tions from the Federal Government, as that Govern-
ment must be aware that Great Britain cannot allow
such an affront to pass without reparation. Earl
Russell expresses a hope that the Federal Govern-
ment will offer suitable redress by giving up the
four prisoners to Lord Lyons.
Mr. Seward, who was furnished with a copy of
Earl Russell's despatch, replied that the English
Government rightly conjectured that the act was
without the authority or knowledge of the Federal
Government. He trusts that England will see that
the Federal Government neither practised nor ap-
proved any deliberate wrong in the transaction,
and declares that Great Britain has a right to de•
mand the same reparation as the United States
would expect from any friendly nation in a similar
case. Mr. Seward says he is aware that he argues
on the British side of the case, but in doing so he
is only defending American principles. He quotes
the instructions from Mr. Madison, Secretary of
State in 1804, to Mr. Monroe, Minister to England,
and says :—" If I decide this case in favour of my
own Government I must disallow its most cherished
principles, and for ever abandon its most cherished
policy ; but the country cannot afford such a sacri-
fice ; the Government cannot deny the justice of
England's claim." Mr. Seward, in conclusion,
states that the four prisoners are at the disposal of
Lord Lyons, and asks his lordship to indicate a
time and place for receiving them.
Lord Lyons, in his reply, says he will forward
Mr. Seward's communication to the British Go.
vernment, and will confer personally with him in
regard to the reception of the four gentlemen.

The note from M. Thouvenel to the French
Minister on the Trent affair is included in the cor-
respondence.

LATER BY TELEGRAPH TO PORTLAND.

NEW YORK, DEC. 28.
A suspension of specie payments by the banks is
considered probable.
Exchange—Bankers' bills, 1101.

LATEST BF TELEGRAPH TO PORTLAND.

NEW YORK, DEC. 28, 2 P.M.

The Trent affair has been amicably settled.
Messrs. Mason and Slidell are to be surrendered.

A long correspondence between Earl Russell and
Mr. Seward is now being published.

COMMERCEAL INTELLIGENCE.

Exchange—Bankers' bills, 1101. Stocks buoyant;
New York Central, 78t ; Illinois, 601 ; Erie, 301.
Cotton quiet ; middling Upland, 36c. Breadstuffs
steady, but quiet. Provisions steady.

NEW YORK, DEC. 27, EVENING.

(PER CITY OF WASHINGTON via QUEENSTOWN.)
An Associated Press Washington despatch says
it is reported and generally credited that the
Trent affair has been adjusted. The terms of the
adjustment are not, however, stated in this
despatch.

The New Fork Tunes announces that it has
authority to state that the matter has been

adjusted.

The New York herald argues that the Federal
Government gains no advantage in retaining Messrs.
Mason and Slidell, and that their surrender may
take away the pretext for English and French inter-
ference.

The New York _Herald continues, " The storm
may blow over, but it will leave a debt of abuse
from England to be repaid hereafter by America."
The New York limes thinks " that while Eng-
land regards the rebels as bell;gerents and America
regards them as rebels a pretext for war will event-
ually arise."
A false rumour of the release of 'Messrs. Mason
and Slidell, which was set afloat yesterday, caused
rather a feeling of relief than indignation in the
popular mind at a settlement of the question.
The New York World is of opinion that people
will submit to the surrender of Messrs. Mason and
Slidell as a necessity of the present position, but
with the hope of avenging their surrender here-
after.

General Scott is still in New York. It is sup-
posed that he brought no official offer from

France.

The New York herald urges the passing of a
tariff in favour of French goods, to the exclusion
of English manufactures.

The Government has announced tbat the new
tea, coffee, and sugar tariff came into force from the
25th of December, and applies to all goods in ware-
house and to current importations.

The Journal of Commerce says this announcement
has cause a feeling of wrong and injustice among
commercial classes, and trusts the Government
will reconsider its action.

The main charm :31 of Charleston harbour has been
:otally destroyed by sinking vessels.
. .

The war excitement in Canada is unabated.

The steamers Arago an Edinburgh have arrived
out.

NEW YORK, DEC. 28,, MoRNING.
Messrs. Mason and Slidell have been set at
liberty by the Federal Government.,

The New J ork Associated Press- publish the fol-
lowing telegram
The surrender of Messi.s. Ma oon find Slidell will