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THE SUN, LONDON, WEDNESDAY EVENING, JANUARY 15, 1562,

THE IRENT AFFAIR (OFFICIAL

nations. I need not discuss the modifications in my state-
ment of facts which Mr. Seward says he has derived from
the reports of officers of his Goveinment.

TEE NA Vl'.

CORRESPOADENCE).

(From the _London Gazette of last Evening.)
EARL RUSSELL TO LORD LYONS.
Foreign Office, December 19, 1861.
My Lord,—Mr. Adams came to me to-day, at the Foreign
Office, at 3 o'clock. He said ho came to ask two questions
which concerned himself personally. -
I interrupted him to ask whether what he was going to
say was by order of his Government, or from his own sense
of what he ought to do.
Mr. Adams answered that the proceeding was entirely his
own, but that he had with him a despatch from Mr. Seward
which he was authorised to read to me if ho should think fit
to do so. It appeared, he said, from that despatch, that the
Government of Washington had not authoried the capture
of the two insurgents, Mason and Slidell, and that the
United States' Government stood quite uncommitted at the
time of sending the despatch.
I said that if the despatch did not enter into any contro-
versy with regard to the case of ;Messrs. Mason and Slidell
I should be glad to hear it read.
-Mr. Adams then proceeded to- read the despatch. It
commenced by referring with approbation to a speech made
by Mr. Adams at the Mansion House, and proceeded to
notice• with gratification the sentiments which had been
expredsed by Lord Palmerston in a conversation he had held
with,gr.Adams in reference to the " James Adger."
Mr. Seward then proceeds to declare . that the American
Government value highly the friendship of Great Britain,
and hunent that certain causes of difference have arisen,
owing, as Mr. Seward imagines, to the want of attention
on the part..of the British Government to the perform-
awe of the duties incumbent on a. friendly Power dur-
ing the struggle in which the United States are engaged.
Mr. Seward gives as instances the case of communication
to flu? Confederate authorities, tunch ; the stdmis •
sion of the " Sumter," privateer, to purchase coal and pros.
at Trinidad, in distinction, as he said, to the con-
duct of every European State ; and the at rival in the
Southern States of vessels laden witharms and ammunition
from England.
Mr. Seward then proceeds to the case of the "Trent,'
from which ship the two insurgents -had been taken. He
affirms that no instructions were given to Captain Wilkes
which: authorised him to act in themanner he had done.
Neither had the United States Government committed
itself with regard to any decision upon the character of that
act. • The Government would wait for any representation
the British Government might make before coming to any
positive decision. He desires that, if Mr. Adams shall
think it desirable, this despatch shall be read to me, and
else to Lord Palmerston.
In answer to Mr. Adams, I touched upon most of the
points treated of in the despatch. I did not think it neces-
sary, however, to recur to the case of Mr. Bunch.
With regard to the Confederate privateer, I said that I
could not see that our conduct had been different from that
of France and Holland, or of Spain. The Sumter had been
refused coal from the Government stores at Trinidad, but
had been allowed to get coal and provisions from private
merchants. The same thing had taken place at Martinique
and at Curacoa. I did not find that the rule of twenty-four
hours had been observed in practice, but there would •be
little difficulty in coming to an agreement on this point.
In regard to the export of arms and ammunition to the
Confederate States, 1 had lately read the opinion of the
Attorney-General, and believe it was in entire conformity
with the provisions of the Foreign Enlistment Act
—warlike equipment of a vessel was prohibited ;
the loading a vessel with arms and ammunition
was not prohibited. But in point of fact, a much greater
amount of arms and ammunition had been sent to
the Federal States, where there was no obstacle to the
export or the import, than to the ports of the Confederate
States which were blockaded. Mr. Adams admitted this to
be the fact, and said he had refrained from pressing a more
rigorous compliance with the Foreign Enlistment Act for

Her Majesty's screw steam store-vessel Buffalo,
Masten:Commander Alexander Brown, from the
West Coast of Africo, arrived at Purfleet yester-
day afternoon, and discharged her ' powder. She
will require extensive repairs and alterations
throughout, the ship and machinery having been
in commission since 1857. She is under orders to
be dismasted and.paid off at Woolwich.
For the information of those concerned, we are
requested to state that the announcement contained
in some of the morning journals of yesterday under
the heading of " Naval Intelligence," from Wool-
wich, that " the steam storeship Supply, now'load-
ing at Deptford, was under orders for Rio and
Ascenscion," is inaccurate. Her destination is
Gibraltar and Malta. The statement that the
whole of the hired labourers in Woolwich Dock-
yard are under orders to be discharged at the end
of the financial year, is likewise incorrect, as no
order of the kind has been received at Woolwich.
The steam storeship LOrd Panmure, Mr. Moore,
Commander, arrived alongside the landing wharf at
Woolwich Arsenal yesterday morning from Devon-
port, Liverpool, and Parfleet, laden with over-
vented guns from the former place, a number of
hospital waggons and carriages, military saddles,
pickaxes, and shovels, and numerous other stores
discharged at Marchwood, near Southampton;from
transport vessels over loaded for North America.
Prior to her arrival at Woolwich, the Lord Pan-
mare landed at Purfleet 1,400 barrels of powder
from Devonport.
The screw frigate Galatea, 26, 800 horse power,
Master:Commander H. Goldsmith, was yesterday
towed from Folly-point, Chatham, to Sheerness, by
the Adder and African steamers, to join the first
division of the steam reserve under the command of
Capt. C. F. Schomberg. The Galatea has her guns,
shot, shell, and all her stores on board.
The screw corvette Pylades, 41, 400 horse power,
is undergoing some very extensive repairs in No. 4
dock at Chatham. The whole of her copper is being
stripped off, a great deal of her planking being
found to be very rotten. Both her decks will also be
removed. Several new plates will be required to be
placed in her boilers, which have been removed for
that purpose.

I cannot conclude, however, without adverting shortly
to the discussions which Mr. Seward has raised upon• points
not prominently brought into- question in my despatch of
the 30th of November: I there objected, on the part of her
Majesty's Government, to that which Captain Wilkes had
done. Mr. Seward, in his answer, points out what he con-
ceives Captain Wilkes might have done without violating
thelaw of nations.

It is not necessary that I should here discuss in detail
the five questions ably argued by the Secretary of State;
but it is necessary that I should say that l'er ➢lajesty's
Government differ from Mr. Seward in some of the conclu•
sionsat which he has arrived. And it may lead to abetter
understanding between the two nafons on several points
of international law which may during the 'resent contest
or at some future time be brought into question, that I
should state to you, for communication to the Secretary of
State, wherein those differences consist; I hope to do so in
a few days.

In the meantime it will be desirable that the commanders
of the United States cruisers should be instructed not to
repeat acts for which the British Government will have to
ask for redress, and which the United States Government
cannot undertake to justify.
You will read and give a copy of this despatch to the
Secretary of State.—l am, &c.,

(Signed)

RUSSELL:

EARL RUSSELL To LORD LYONS.
Foreign-office, January 11, 1862.
My Lord,—Your conduct in the important matter of the
f‘ Trent" is entirely approved by Her Majesty. The dis-
cretion and good temper you have shewn have contributed
greatly to the success of our operations.
In order to give your lonlshir, by a rublic document, a
proof that yei have acted strk'tly,.xtording* the instruc-
tions you have received; inclose an extract, annexed to
this dispatch, of a private letter' I addressed to you on the
Ist of December last.—l mu, &c.,

(Signed) RUSSELL.

Extract of a private letter from Earl Russell to Lord

Lyons, Doc. 1, 1861.

" The despatches which were agreed to at the Cabinet
yesterday, and which I have signed this morning, impose
upon you a disagreeable task. My wish would be that, at
your first interview with' Mr. Seward, you should not take
my despatch with you, but should prepare him for it, and
ask him to settle with the President and the Cabinet what
course they would propose..

"The nest, time you should bring my despatch, and read
to him fully.

" If he asks what will be the consequence of his refusing
compliance, I think you should say that you wish to leave
him and the President quite free to take their own course,
and that you desire to abstain front anything like menace."

The Calypso, 18, Capt. Montressor, dismantling
at Chatham, will be paid off on Monday next.
By direction of the Admiralty, No. 1 dock at
Chatham has been entirely floored over, the opening
at the entrance enclosed and glazed, and the whole
converted into a large fitting and workshop for the
workmen employed on the Achilles, 50, iron steamer,
building in the adjacent dock. A considerable por-
tion on the land side of the dock has also been taken
in and covered with a corrugated iron roof by Messrs
Grissell and Co., in order to extend the workshop
for the large number of additional hands who will
shortly be employed on the Achilles.
From letters received from the West Indies, dated
Jamaica, Dec. 21, by our Chatham correspondent,
several important movements on the part of the va-
rious vessels of war are announced. The Mersey,
40, 1,000 horse power, Capt. H. Caldwell, C. 8., ar-
rived at Port Royal on 13th Dec. from Bermuda,
and was shortly expected to leave. The Donegal,
99, 800 horse power, Capt. Osborn, C. 8., and the
Sanspareil, 70, 400 horse power, Capt. Bowyer, ar-
rived from England on the 16th, with part of the
marine battalion for Mexico on board. The Hima-
laya, 700 horse power, Capt. Seccombe, had arrived
from Bermuda, and was to leave for Barbadoes and
England on Dec. 22. The Conqueror, 101, 800 horse
power, Capt. Sotheby, C. 8., had arrived out with
her Marines, and was to leave for Bermuda about
the 24th of December. Her Majesty's paddlewheel
steamer Barracouta, 6, Capt. Malcolm, arrived at
Jamaica, from England, on the 15th of December.
The Sanspareil passed the Cadmus, 21, Captain
jiillyar, C. 8., near Antigua, standing to the south-
ward, on the 9th December, last from St. Thomas.
Her Mbjesty's screw steamers St. George, 86, Cap-
tain the Hon. F. Egerton, and Cygnet, 5, Comman-
der Thrupp, arrived at Port Royal, on the 21st of
December, also a small French screw sloop of war.
All were well on board these_ships.

this reason.
I then stated to Mr. Adams the substance of the two de-
spatches I had written to Lord Lyons on the subject of the
Trent.
I told him that in a private letter I had directed Lord
Lyons to talk the matter over with Mr. Seward two days
before reading to him the despatch. Mr. Adams asked
whether thedirection to Lord Lyons to leave Washington
in seven days was in the despatch to be read- I said it was
not, and that in case Mr. Seward should ask what would
be the consequence of a refusal on his part to comply
with our conditions, Lord Lyons was to decline to answer
that question, in order not to have the appearance of a
threat. 1 said that I thought the explanation that the Go
vernment had not authorised the seizure would stand in
the place of an apology.
asentita condition was, that Mr. MaksullaMl
Slidell should be given up to Lord Lyons.
Mr. Adams said that if the matter was stated to Mr.
Seward in the manner I had explained, he hoped for an
amicable termination of the difference ; he thought that if
the Government of the United States insisted on maintain-
ing the act of Captain Wilkes, the United States would be
abandoning their doctrine and adopting ours.
Mr. Adams asked me a further question, which he said I
might decline to answer ; it was whether, if. Lord Lyons
came away, a declaration of war would be the immediate
consequence.
I told him nothing was decided on that point ; we should
wait for the reply from America, and then decide upon our
course.
I stated to Mr. Adams the substance of M. Thouvenel's
despatch to M. Mercier as I had heard it from M. de Fla-
hault.

In addition to the powerful forts and batteries
which are now under construction at the entrance
to the Medway, two exceedingly strong batteries
are being erected a few miles up the Thames, on
the Essex and Kent sides of the river, about mid
distance between Gravesend and the Nore, in order
still further to protect the river should any hostile
vessel succeed in accomplishing the almost impos-
sible feat of passing the guns of the fortifications on
the Isle of Grain and the batteries at Sheerness.
Notwithstanding the numerous and almost insur-
mountable natural difficulties which have been ex-
perienced during the progress of the undertaking
ever since-its commencement, especially in driving
the piles on which the structure will be reared, the
works are being pushed forward as rapidly as cir-
cumstances will permit. The battery at Coalhouse
Point, on the Essex side of the river, will probably
be completed some time before that at Shornmeade,
on the opposite shore, it being considered desirable
to finish it as early as possible, in order that the
armament may be placed in position. The Coalhouse
Point battery is being erected on the site of the
small line of fortifications which were built a few
years since, at considerable expense, the whole of
whieh are now levelled. This will be the larger
and more important of the two batteries. The ut-
most care and skill are being used in preparing the
foundation. In consequence of the soft, spongy
nature of the soil, nearly every inch of the ground
has been piled to a depth of some 30 or 40 feet, 12
steam pile driving machines being used in this por-
tion of the undertaking. The beds of concrete on
which the superstructure will be raised are of enor-
mous strength, and apparently capable of support-
ing any weight. The battery will be bomb proof,
with two tiers of guns, the tier above being placed
en barbette. The walls will be no less than 12 feet in
thickness of solid masonry, over which again will
be placed layers of concrete and asphalte. The de-
molished works mounted a vastly inferior armament,

Mr. Adams said that the French Government had always
been very consistent in their maintenance of the rights of
neutrals. He added that he could not pay our Government
the same compliment.
I said I would dispense with compliments if this matter
could be amicably arranged.
We parted on very friendly terms.

I am, &c.,

(Signed)

RUSSELL.

EARL RUSSELL TO LORD LYONS.

Foreign-office, January 11, 1862.

My Lord,—ln my despatch to you of the 30th of Novem-
ber, after info]. ming you of the circumstances which had
occurred in relation to the capture of the four persons
taken from on board the Trent, I stated to you that it thus
appeared that certain individuals had been forcibly taken
from on board a British vessel, the ship of a neutral power,
while such vessel was pursuing a lawful and innocent
voyage, an act of violence whieh was an affront to the
British flag, and a violation of international law. I
concluded by directing you, it case the reparation, which
her Majesty's Government expected to receive, should
not be offered by Mr. Seward, to propose to that
minister to make such redress as alone would satisfy the
British nation, namely, first, the liberation of the four gen-
tlemen taken from on board the Trent, and their delivery
to your lordship, in order that they might again be placed
under British protection ; and, secondly, a suitable apology
for the aggression which had been committed.

I received, yesterday, your despatch of the 27th ultimo,
inclosing a note to you from Mr. Seward, which is in sub-
stance the answer to my despatch of the 30th of November.
Proceeding at once to the main points in discussion
between us, her Majesty's Government have carefully
examined how far Mr. Seward's note, and the conduct it
announces, complies substantially with the two proposals 1
have recited.

With regard to the first, viz., the liberation of the pri-
soners with a view to their being again placed under British
protection, I find that the note concludes by stating that
the prisoners will be cheerfully liberated, and by calling
upon your lordship to indicate a time and place for receiv-
ing them.

in point of number and calibre, to the heavy guns
which will be placed in commanding positions
at points having unlimited control of the mid
ehannel of our great commercial highway. The
precise number of guns which will be mounted
on each battery has not yet been finally decided
upon, but it is probable that each will be furnished
with an armament of 50 guns and mortars. It is,
however, decided to mount nothing but the 100
pounder, 70 pounder, and 40 pounder Armstrongs,
together with the ordinary 10 inch and 68 pounder
cast iron guns. Each battery will also be furnished
with furnaces and cupolas for preparing red-hot
shot and filling the shells with molten iron. The
two forts, which stand at the important junction of
Lewer Hope and Gravesend Reaches, will thus cross
their fire either against any force ascending the
Lower Hope or in rear of a hostile fleet should it
have succeeded in forcing this difficult bend of the
stream, which would again be met by a sweeping
fire of the heavy armament mounted at New Tavern
Fort, on the Kent shore, and that of Tilbury Fort,
on the Essex bide, the latter having a direct bearing
down Gravesend Reach. The armament intended
to be mounted on the new fortifications will be fitted
with flanged trucks and raised racers, the invention
of Col. Colquhoun, Royal Artillery, which, after
repeated and severe tests, has been found to be far
superior, in point of durability and strength, to the
old pattern principle of flat racers and front pivots.
This system has recently been applied to the 10 inch
and 68 pounder guns mounted at New Tavern and
Tiibury Forts, as well as to similar descriptions of
or

No condition of any kind ie coupled with the liberation of
the prisoners.
With regard to the suitable apology which the British
Government had a right to expect, I find that the Govern-
ment of the United States distinctly and unequivocally de-
clares that no directions had been given to Captain Wilkes,
or to any other naval officer, to arrest the four persons
named, or any of them, on the Trent, or on any other
British vessel, or on any other neutral vessel, at the place
where it occurred or elsewhere.

I find, further, that the Secretary of State expressly for-
bears to justify tbo particular act of which her Majesty's
Government complained. If the United States Govern-
ment hti alleged that although Captain Wilkes had
no previous instruction for that purpose, he was right in
capturing the persons of the four prisoners, and in remov-
ing them from the Trent on board his own vessel, to be
afterwards carried into a port of the United States, the Go-
vernment which had thus sanctioned the proceeding of
Captain Wilkes would have become responsible for the
original violence and insult of the act. But Mr. Seward
contents himself with stating that what has happened
has been simply an inadvertency, consisting in a de-
parture by a naval officer, free from any wrongful motive,
from a rude uncertainty established, and probably by the
several parties concerned either imperfectly understood
or entirely unknown. The Secretary of State goes on to
affirm that for this error the British Government has a right
to expect the same reparation which the United States, as
an independent State, should expect from Great Britain, or
from any other friendly nation, in a similar case.

Her Majesty's Government having carefully taken into
their consideration the liberation of the prisoners, the de-
livery of them into your hands, and the explanations to
which I have referred, have arrived at the conclusion that
they constitute the reparation which her Majesty and the
British nation had a right to expect.
It gives her Majesty's Government .great satisfaction to
be enabled to arrive at a conclusion favourable to the main-
tow() of the most friendly relations between the two

.dnance mounted on the batteries at the entrance
o the Medway. During the progress of the forti-
fications the security of the Thames is maintained
by the floating batteries Etna, 16, and Thunderbolt,
16, which are stationed on each side of the river.
Eaoh of the floating batteries is armed with 16 68

0F441.7 PAYMENTS
IX 4mElac4.

The suspension of specie payments in America is
an event which, during the pest six months, has
been so entirely capable of demonstration as certain
tiaehappen at a given period, that its announcement
to-day has been received almost as a matter of
eourse. Its immediate effect upon commerce will be
unimportant, and the only inconvenience on this
side will fall upon the holders of bonds payable in
dollars—a comparatively small body, the ceupons of
most of the American securities held in Europe being
payable in sterling at a fixed exchange. The poli-
tical effect, however, cannot fail to he very serious.
It will either shorten the war, or lead to the flooding
of the country with a currency destined to decline in
value day by day, until all confidence is paralysed
from the dread of ultimate repudiation. If the
warning is accepted by the Federal Government in
its true significance, they will see that a continuance
of their present scale of outlay is out of the question,
ar.d that if the war against the South cannot be
conducted at less cost there is no alternative but
to come to some pacific adjustment. It is to be
feared, however, from recent experience, that the
reckless course will be preferred. For months past
the assertions made in England that the present
stoppage was inevitable have been copied into all
the leading American papers only for the purpose Of
assuring, the ignorant multitude that the prediction
would prove totally erroneous, and that they could
not do better than bring out. their hoarded specie
for investment in the Government loans. A similar
policy of delusion therefore must now be expected,
and, as the manufacture of " money" in the shape
of notes will henceforth not be liable to any cheek
other than that which may ultimately arise from
popular suffering, consequent on the discovery that
when offered in exchange for bread, tea, sugar,
wine, or any other necessary, they will purchase
scarcely anything, the downward course may be
one of unparalleled rapidity. Already the rate of
exehAnge )3aa, advancd to 112,, and for the,future
in its variOini movements we' Shah A;Fele.-wiijek
be presented with an index of the extent to which
the Federal Government are going beyond their
available means. Meanwhile, it may be expected
that the prices of some of the stocks in the New
York market will advance, be!eause the quotations
will represent, not the value of these securities in
specie, but in the inconvertible notes, which are
likely to be issued in profusion. At the same time
it must be borne in mind that railway and other
property, the tolls of which admit of being ad-
justed and increased to meet the depreciation in
the value of the currency, need not necessarily be
injured by the measure. All commercial debts to
foreigners also must, of course, be remitted in the
currency of the country where the debt is con-
tracted or its equivalent. The home annuitants,
and all the elasses that depend upon rents or pay

at fixed terms, are those by whom the pressure
will first be felt, and when the army and navy, as
well as the members of Congress and Government
officials, shall have attained thorough experience of
the practical working of the system, the test of their

patriotism will be complete.—Times' City Article.

THE RIVAL AMERICAN WAR YES-

SELS IN SOUTHAMPION IV4 EE.

SOUTHAMPTON, JAN. 14.

Her 'Majesty's ship Argus has been placed at tho
service of Capt. Patsy, RN., the Admiralty Super-
intendent here, for the purpose of conveying de-
spatches to the Dauntless frigate, and other pur-
poses, rendered necessary by the presence of the
Confederate and Federal war steamers Nashville
and Tuscarora in our waters. The Argus is sta•
tioned at the mouth of the docks.

It is believed that the mysterious movement of the
Tuscarora yesterday, in leaving her moorings, was a
ruse to prevent the Nashville getting under weigh
for 24 hours, since, the former having left, the latter
could not start for a day and a night afterwards.
Southampton, it is said, will be the head-quarters
of the Tuscarora for a year or two. It is said that
the orders of the Tuscarora are never to lose sight
of the Nashville for a longer period than absolutely
necessary; to blockade her in Southampton, and
if she once leaves to chase her as long as she is at
L sea. It is thought tlsnit the Tuscarora would have
not such particular charge of a feebly-armed ship
like the Nashville, when it is known where a dan-
gerous ship like the Sumter is, if some other Federal
man-of-war is not on the look out for the daring
privateer. Some of the guns of the Tuscarora are
nearly 11 feet in length. I3oth Captains Pegrim
and Craven have each a son, an officer, on board
their respective ships. The Royal Mail steamer
Seine brought very few passengers yesterday, Ame-
ricans being afraid to travel on account of the Trent
affair, and because Federal and Confederate war-
ships are in the track of the English mail packets.
At St. Thomas the Federal man-of-war Quaker
City would hold no communication with any one,
Even the English Admiralty agents were not
allowed on board. This conduct was pursued, it
was understood, in order that the movements of the
Quaker City in search of the Confederate privateer
Sumter might be kept secret. This port is likely
to be very shortly crowded with American war
vessels, both Federals and Confederates, who will
be watching each other, while British men-of-war
will be watching both. Even the Tuscarora and
the Nashville here impose a considerable expense
on the British Government; as every movement of
the belligerents has to be taken cognisance of and
reported night and day.