The Sun.
London, England, 1846-10-29 00:00:00

AMERICAN AFFAIRS.

NEW YORK, SEPT. 30.—During the last two weeks
we have had various rumours as to propositions said to
have been made by this Government to Mexico in refer-
ence to a negotiation for the restoration of peace. That
some suggestion of this character has been made, I con-
sider certain ; but whether any reply, and if any, what
has been received from Mexico, the public aro in igno-
rance. Indeed, the Administration, on all matters in
reference to the Mexican war, preserve a studied si-
lence ; nor am I able to assign a satisfactory reason for
this caution.

There are those who think, and so express them-
selves, that the Government commenced the war under
the most erroneous impressions, and in complete igno-
rance of the manner in which it should be conducted to
bring about a speedy and triumphant issue. The Ad-
ministration considered the Mexican a poor distracted
people, without the means of self-defence, and destitute
of the money necessary to procure those means. So
thinking, and not having an elevated idea of the personal
bravery of the Mexicans, the conclusion was, no doubt,
that they would be incapable of anything like a syste-
matic resistance to a powerful invading army.
In the arrangements which the Government proceeded
to make no reference was had to the climate ; none
to the impracticability of moving an army of
15,000 or 20,000 men during the summer months.
The means of transport seem to have been en-
tirely forgotten until the moment arrived when they
were wanted. The roads, the ravines, and the
mountains afforded the most formidable difficulties,
which seem not to have been taken into calculation
as presenting impediments and delays of a ruinous
character. It was thought by the friends of the
Government, that three or four months were all that was
necessary to overrun Mexico. We are now in the fifth
month of the war, and nothing comparatively has been
effected ; and yet we have done ail that could be done
under this Administration.

The impression is universal, or nearly so, that we are
now about to press our army forward, and, with as little
delay as may be, drive the Mexicans into their moun-
tains, and then quietly take possession of their country.
This idea is about as visionary as was their first, which
was, that in ninety days an invading army would be in
peaceable possession of the halls of the Montenumas.
It is now understood that the mediation of Great
Britain has been declined by this Government. Tho
Union, the acknowledged Government organ at
Washington, has treated this friendly tender of kind
offices in a rude and indelicate manner. I trust,
and sincerely hope, that in this particular the organ
does not fairly represent the feelings of the Execu-
tive, and that the mediation will be declined at
least in a courteous and gentlemanly manner. How
the British Premier will feel on the occasion is not
for me to judge. The rejection of this offer is a part
of the policy by which the present Administration is
and will continue to be governed, so long as it remains
in power. That policy forbids and will prohibit all inter-
ference, friendly or unfriendly, of any of the European
Powers in the affairs of this continent. It is, I think,
becoming more popular daily, and must, sooner or later,
give rise to serious collisions between the Governments
of the two hemispheres. There are those in the United
States who hope and believe that they will live to see the
day when this whole continent will be under one Go-
vernment, and that a Federal Government ; or, in other
words, a Government of States.

We have no late news from any section of the in-
vading army, except a rumour this day, not well authen-
ticated, but yet generally believed, that General Wool
has taken possession, without opposition; of Santa Fe.
Such a state of things has been anticipated for several
weeks. All accounts have agreed in the statement that
there were no Mexican troops in Santa F 6 ; and conse-
quently that General Wool, who is a gallant and expe-
rienced officer, would have no fighting to do in that
quarter.
On the whole, there is little or no change in the aspect
of Mexican affairs and this country. As yet no injury has
been done to Mexico. She has expended no money in
war preparations, and appears to stand perfectly still,
waiting our movements. What will be Santa Anna's
policy none seems to know. He professes and announces
himself " the slave of public opinion." Consequently,
if the Mexican people are for war, ho is for war.
Now, the Mexicans have suffered so little, and gained
so much by the war, that they seem to consider it
child's play, and apparently have no objection to its
continuance. The opposite of this is the condition of
the United States, and, if peace were to trice place to-
morrow, this Government could not close its account of
war expenditures for less than 50,000,000 doll.

The Administration have not yet experienced any in-
convenience from the want ofmoney, but soon must, if their
war expenditures are to continue at the extravagant rate
they have been during the last five months. When war
was declared, they had over 12,000,000 doll. surplus on
deposit in the banks ; more than two-thirds of that is
expended. All the revenue collected is in like manner
expended, a❑d the President was authorised to issue
10,000,000 &As. in Treasury notes, which has in part
been done, and expended. Such is the state of the
finances.

The different state elections are now coming on. So far as
they have progressed the result is favourable to the Whig
cause. The two most important states in the Union, Penn-
sylvania and New York, are both doubtful. So far as the
tariff of 1842 is concerned, Pennsylvania will undoubtedly
return members to Congress favourable to a repeal of
the present and the re-enactment of the Act of 1842.
But whether they will be Whigs or the friends of the
present Administration on other subjects is very doubtful.
New York will be warmly contested. Both parties
entertain, or appear to do so, strong hopes of success.
My own opinion, aftcr closely examining the question,
is, that the Locofocos have decidedly the best chance of
victory. Indeed. it cau hardly be said that I have a
doubt on the subject.

OCTOBER 8.
You are advised of the carelessness of the Boston post-
office, which caused about 7,000 letters, intended for the
laLt steamer, to be left behind. These letters have been
returned to the New York post-office, and will be for-
warded by the Great Western, which sails to-day.
Among them it one for you.
Santa Fc is in quiet possession of a division of the
American army, commanded by General Wool. Since
the date of my last, so far as we have heard, the
troops have not changed position ; but the most
active preparations are risking for an onward move.
It is understood that the Government have de-
termined on a Radical Change of their system for
carrying on the war against the Mexicans. The army
of the United States entered the territory of Mexico with
assurances and proclamations that the Mexicans and
their property should be protected from all injury, pro-
vided that they (the citizens) would remain in their
houses, pursuing their usual avocations ; and these pro-
clamations added that whatever supplies were required
for the army, and were furnished by the Mexicans, should
be promptly paid for by the commanders ordering or re-
ceiving them.
In this way the war has been carried on for nearly j
five months; and, so far as I can learn, the Mexicans j

can have no objection to continue it on the same terms,
But it is becoming ruinously expensive to this Govern-
ment, while it is doing, substantially, no harm to their
enemies. Under such circumstances, the Administra-
tion finds it necessary to change their system; and it is
now confidently asserted that the Cabinet have deter-
mined that, hereafter, the inhabitants shall furnish such
American troops as may be in their vicinity with neces-
saries without any charge whatsoever. Indeed, it is
believed that such orders, in (ffcct, have already been
issued from the proper department.
It is not my intention to discuss the merits of this
question under existing circumstances, and the manner
in which we invaded the territory of Mexico. Nor do
I mean to express any opinion as to the policy of this
new delaration of war, after the pledges made by oar
proclamations, &c., at the commencement of this conflict.
These topics I leave to the animadversion of you and
your readers. All I will say is, that under such a system,
and when such a people are the victims of it, the most
sanguinary results may be anticipated.
Heretofore this Government has experienced no incon-
♦enience from the want of money, nor do the Adminis-
tration even now feel it. Bat before the month of Novem-
ber expires I apprehend they will be pinched. Indeed,
the Secretary of the Treasury has recently exhibited some
"premonitory symptoms" of approaching want. Mr. Wal-
ker, the Secretary, has been here for ereral days nomi•
nally to make arrangemen is for carrying into effect the Su b-
Treasury and Warehouse Bills, but really, as many
suspect, to borrow money on Treasury notes, or in
some other way. He has made an application to our
city banks for 4,000,000 dols., on Treasury notes,
bearing an interest of five per cent. per annum, pay-
able in twelve months. ' This the banks have declined,
but have offered him the money at six per cent, per
annum.

Congress, at their last session, authorised him to
borrow 10,000,000 dols. on Treasury notes, or on Six
per Cent. Stock, or a part of each. He has not yet
attempted to dispose of any part of the stock. The
money-market, at present, is quite easy, and there is a
considerable amount of idle money, waiting, it is sup-
posed, for Government to come into market. It is well
known that their necessities will compel them soon to
borrow 10,000,000 dols. or 15,000,000 dols. A loan
for that amount would readily be taken at par, or a
fraction above it, for a Six per Cent. Stock.

From Santa Anna we hear nothing ; he remains
perfectly still ; nor do we hear a word as to his in-
tended policy or his wishes. Ile appears disposed
to take no active part until the new Congress shall
have been chosen and convened, and by some action
evidence the policy, as to the question of peace or
war, they would recommend. Whatever that policy
may be, it is more than probable Santa Anna will
not attempt to thwart it ; but, on the contrary, as "the
slave of public opinion," will use his influence to carry it
into effect. If he should assume that position—and I
repeat that I think he will—nothing in the way of ne-
gotiation can be effected before January, 1847, inasmuch
as the Mexican Congress will not convene before De-
cember. In addition to which, the Spanish race, and all
connected therewith, are everlasting negotiators.
Since the sailing on the Ist of the last steamer no-
thing has transpired in relation to the mediation, which,
it is understood, was courteously declined. You may
consider it as the settled policy of the party in power,
and I think a majority of their opponents, that they will
not permit any European interference with the people or
established Governments on this continent. Tho opinion
is certainly gaining ground here, that all these Govern-
ments, sooner or later, must and will, as sovereign and
independent states, be annexed under a federal Govern-
ment to the United States.
The system of free trade is producing some excite-
ment in Canada. In the discussions on this subject,
they say the Imperial Government has put the United
States in the home-market on a footing with Canada;
that the interchange of commodities which this will lead
to, and the friendly feelings which will arise out of it
between the Americans and the Canadians, may pro-
duce resulto nem anticipated by either party, They