The Sun.
London, England, 1869-12-15 00:00:00

F 11E SUN, LONDON, WEDNESDAY EMING, DECEMBER 15, 1869.

FOTIBIGN NOTES,

DISTITRRINCB9 IN PORTUGAL.

The Morning Post has been requested to state-on-official
authority that the Government of Portugal enjoy the full
confidence of the Crown and the support of the country, and
that no disturbances are apprehended. If this intelligence
should prove correct, the accounts lately furnished are of
course inaccurate.

THE ALABAMA QUES7IOY.

(From the Anglo American Times.)
The Times distinguished itself by producing la3t
Tuesday two columns and a half of the PRESIDENT'S
Message through the Atlantic Cable. A summary
thus full prevents any great misconception of the

PRESIDENT'S remarks, and as those portions relating
to Europe mast have been given at more consider-

able length, we perhaps get most of what Gen.

GRANT said about the dispute between Great Bri-

.ain and the United States, commonly known as

the Alabama question. Practically, the PRESIDENT
endorses the celebrated speech of Senator SUMNER,
and as the Senate also has endorsed that speech,
England cannot mistake the general tone, and she
ought not to mistake the views of the Executive and
the Senate,in which case she may begin to comprehend

what is demanded., and accept or reject it accord-
ing to the national sense of justice and of honour.
it has been truthfully asserted that the dispute
might have been settled immediately on the close
of the American war by a mere reimbursement
of the losses sustained by American citizens from
the depredations of the cruisers fitted out in Eng-

[and. Both Mr. SU3INER and the late Mr. COB-

DEN, in common with the numerous party each
represented, who look mainly to a firm alliance be-

,ween the nations, grounded on the broadest prin-

ciples of justice, rather rejoice than regret that such
a settlement failed to be effected, and Gen. GRANT
gives an emphatic support to their reasoning. Be-
lieving that a Convention inadequate in its pro-

visions could not have produced that hearty and

cordial settlement of pending questions, which alone

would have been consistent with the relations which
the PRESIDENT desires to have established between

;he United States and Great Britain, he regarded
the action of the Senate in rejecting the treaty to

have been wisely taken in the interest of peace,
and as a necessary step in the direction of a perfect
and cordial friendship between the two countries.
In his celebrated speech Senator SUMNER said—

"It cannot be for the interest of either party that such
a treaty should be ratified ; it cannot promoto the interests
of the United States, for we naturally seek justice as the
foundation of a good understanding with Great Britain;

nor can it promote the interests of Groat Britain, which
must also seek a real settlement of all pending questions.

Surely I do not. orr when I say that a wise statesmanship,
whether on our side or on the other side, must apply itself
to find out the real root of the evil, and then, with cour-

age, tempered by candour and moderation, see that it is
extirpated. This is for the interest of both parties, and
anything short of it is a failure. it is sufficient to say
that the present treaty does no such thing; and whatever
may have been the disposition of the negotiators the real

root of evil remains untouched in all its original strength."

What is this evil, which both the PRESIDENT and
Mr. SUMNER consider necessary to eradicate ere the
relations between the countries can be placed on a

satisfactory footing ? This question, like most
others, is more easily propounded than satisfacto-
rily answered. The truth is that enmity is the soil iu
which this root has been nourished, alike by the sub-
jects of her MAJESTY and the citizens of the United
States. Through each runs a vein of dislike to the
other, but, unfortunately for England, that dislike
was in the upper crust of the island, or the governing
classes ; hence it as:umed au aspect and an activity
for evil, which led the casual spectator into the be-
lief that the whole country was saturated with the
eruption of the hostility spread along its surface.

In his now well-known letter to Mr. F. M. EDGE,
which that gentleman quotes in his pamphlet ad-
dressed to Mr. GLADSTONE, the late Mr. COBDEN
gave very forcible expression to this truth in these
words :

" The fact is, and the whole fact, that our ruling class,
and a large section of the upper middle class, have been so
rampant in their hostility to the great Republic, of whose
strength and resources they aro dangerously ignorant, that
they jumped instantly to the conclusion that, to use their
own unhappy phrase, 'the Republican bubble had burst,'
and they commenced to treat that country as they would
Brazil."

here you have the baneful soil which has nourished
the baneful root, and had not its elements iu a
measure changed, in vain one root might have been
pulled up, for it would rapidly have been re-
placed by another. The true evil lies in this enmity,
which we are thankful to say is rapidly chang-
ing with the Democratic tendencies of the Bri:ish.
Almost its whole strength lay in the oligarchical insti-
• ution which it was the direct interest of a power-
ful sec.ion of the country to uphold. This could not
be done unless " the Republican bubble burst," and
when that appeared probable every other considera-
tion gave way before it. Active help was given to
the rebels, not from sympathy with the Confederate
cause, but to burst the bubble. Denunciations as
E
strong of the North, as cheering and encouraging
to the South, were wafted across the ocean from Eng-
land, and New Englanders beheld with amazement
the country of WILBERFORCE, and the Parliament
that voted £20,000,000 for the liberation of the West
Indian negro, and which suppressed by armed inter-
vention the slave trade, in an unholy alliance with a
slave-holding Confederation against them, while in
the agony of a struggle to expunge the very blot
upon their Republican institutions which England
had never ceased to denounce. The Tory action
fully upheld their declarations, and are Englishmen

idiotic enough to suppose that those thus doubly
struck can quickly forget and forgive the injury.
'the Tory feeling which had produced the lampoons
on the Republic, the sarcastic remarks on its
citizens, which for many years had tended to fo-
ment American dislike to England, then culminated
not only in gross misrepresentations, in falsifying
the news, and making little Confederate Generals
big, and big Federal Generals little, in making suc-
cessful skirmishes on the one side brilliant victories,
and the brilliant victories of the other doubtful and
obscure affairs (this impression of the war actually
remaining in Europe till now), but in acts as da-
maging to the material interests of the Government
and the people. Here we have the injury and its
cause ; but how are we to get at the remedy ?
America has attributed the animus to the na-
tion, and it is hard to persuade a people who
rule that a kindred people who did not at that time
rule could allow themselves to be thus misrepre-
sented. If Americans generally believed Lord Rus-
SELL'S statement to be true, that had England been
polled a large majority would have been found
to favour the North, much of the irritation would
be allayed, for a people so eminently just would
not wish, even if they had the power, to enforce
an atonement to the injury of their friends as well
as of their enemies. Another fact favours a settle-
ment beneficial alike to both countries. Instead of
the Republican bubble bursting it came out very like
a chilled Palisser shot, which
_struck down all the

fortifications of its enemies, and bounded along
with little injury to itself. This bubble has turned
out to be an uncommonly hard nut to crack, and its
enemies, now recognizing the fact, bow to the in-
evitable and desire reconciliation, leaving the fur-
ther march of events to progress unobstructed. The
change has been great in England in knowledge,
and consequently in feeling, with regard to the
United States since 1860, and the Americans of to-
day are in a measure aware of this truth, that they
are dealing with a very different nation from the
English of the period of the war. Mr. EDGE, in his
pamphlet, says :
"Speaking in behalf of the entire nation, the American
Senate by its action upon the Treaty announces the fol-
lowing determination :---‘ We will never give our consent
to any proposed arrangement of disputes with Great Bri-
tain which does not include full consideration and settle-
ment of all queStions which have arisen between the two
Governments since 1861;' and if we may judge by the
correspondence which has passed between Lord STANLEY,
Earl CLARENDON, and Hr. REVERDY JOHNSON, our position
is this : We will never consent to the actions or policy
of her MAJESTY'S Government being called in question or
subinittell to arbitration.' We agree, in fact, to negotiate
upon individual claims, but we positively decline to listen
to any complaint of damage suffered by the citizens of the
United States in the aggregate, consequent upon our po-
licy, or laclies, as a Government."
Now the PitEstnr.xfs Message emphatically sustains
the position taken by the Senate and the American
people. Thus it appears that the Executive, Congress,
and the citizens are pretty well united on the sub-
ject, and the only effect of discussion has been to
confirm and affirm this unanimity. The Times regrets
that the PRESIDENT can only see one side to the
question, regretting as well that ideas are still pre-
valent in Washington which are absolutely inconsis-
tent with the prospect of an early settlement of the
question. These ideas General GRANT gives a
sound reason to show will be lasting—" A sensitive

people, conscious of their power, are more at ease
under a great wrong wholly unatoned for than
under the restraint of a settlement that satisfied
neither their idea of justice nor their grave sense
of the grievance they had sustained." Ilencedelibe-
rately the PRESIDENT, as well as the people, prefer
no settlement to one they consider inadequate ; and
we have studied the American Press to no purpose
if we cannot fully endorse this as the decision of the
American people.

AIIIERICAN FINANCE.

Next in i►nportance to Europe to the subject we
have discussed in the foregoing article are the
words of the Message relating to the National

Debt.

The resources of the nation General GRANT

observes, ought to make its credit the best on
earth, for, with a less burden of taxation than has
been endured for the past six years, the entire debt
could be paid in ten years ; but taxation, in order
to pay it so fast, is not desirable. Ile believed the
time was approaching when all the Bonds now due
may be replaced with Bonds at a lesser rate of in-

terest, not exceeding 41 percent., and all the Debt
to fall clue hereafter might be similarly placed. This
opinion is sneeringly alluded to in the Times as that
of a simple soldier who could not have mastered eco-

nomic science; while that paper adds : " But it would

seem obvious to any one acquainted with the ma-
nagement of affairs, that as long as the Six per Cent.
Bonds are below par in the market it is impolsible

to effect a reduction in the rate of the interest they

bear. The contrary opinion, often enough ex-
pressed in American journals, is countenanced by
General GRANT'S language ; but, as no practical
consequence can follow from the error, it may be

allowed to refute itself." This is a good instance

of the way in which the TinzeB discusses American

subjects. Gen. GRANT went on to state, to accom-
plish the object it may be necessary to authbrize inte-
rest to be paid in several European cities, and the

Times was aware that GRANT meant and the Ame-

rican -Press exptessed another condition favourable
to the new Bonds, that the period of their duration
would be considerably lengthened. The price of these

Six per Cent. Bonds has risen upwards of twelve
per cent. on the London market within six months

—seven or eight more would send them over par,
and in the face of this, we ask, was not the PRESI-

DENT justified in stating that the time approaches
when they may be funded at a lower interest ? But
the simplesoldier ignorant of economic science did not
ground his opinion on this fact, for he had some-
thing much more substantial, and he is not in the
habit of going into action ignorant of what and
where his supports are. It is clear that he pointed
to Europe as the place where this financial opera-
tion was to be performed. lle expressly stated
that it would be first necessary to authorize interest
to be paid at several European cities. Now the
value of this can only be shown by the result ; but we
believe it will be found materially to enhance Vie
Bonds in the countries w herein they are made payable.
One of the objections to United States Bonds in
tl:c eyes of European investors is that the coupons
are payable in America. Thus they are placed in
the hands of their bankers, who work out for them
an intricate exchange, and the majority are com-
pelled to acc?pt what they get, as they find it diffi-
cult to comprehend the figures through which the
banker arrives at the result. It is a well-known
fact that if a traveller took one hundred sovereigns
for exchange to a money dealer in London, again

exchanged the untouched proceeds in Paris, went
through the same operation in Berlin and other
capitals, such is the rapacity of these dealers that
before he had gone very far his hundred sovereigns
would have evaporated, or that when he returned to
London it would be with only a few shillings. This
is as true of paper exchange, and in obviating the
necessity for such a process the United States Bonds
will rapidly rise in European estimation. But this is
not all that is required to send them into the
strong boxes of trustees and similar investors. They
must have permanency, as a bond running over
only ten years would scarcely do as the provision
for a widow and child, ea. It is probable, there-
fore, that the time may be extended to 20 or 30
years, and on the face of the Mod wi l be the dis-
tinct condition that it will be repaid without deduc-
tion, in gold, the interest being met semi-annually,
in certain cities of the world, free from any charge
of taxation or from any other charge. Now, will the
Times state what is the value of these conditions,
and can it tell us whereiu will lie the difference which
can impart to the Britizh Consol a higher value for
the same return than to the United States Bond?
General GRANT starts with the proposition that the
resources of the nation ought to make its credit
the best on earth ; and it is this that should be de-
molished by those who wish to demolish his con-

elusion. Batthe fact is undeniable that the resoums
of the United States, other things being equal, ought

to make its credit the best in the world. Those
aware also that the citizens of the Republic have
discovered the truth of the proverb, on which th-y
will act, that honesty is not only good, but the best
policy, would surely prefer a United States Bond at
4 per cent. on the conditions proposed by the PRE-
SIDENT to a British Cousol at 31. If so, the sim-
ple soldier, ignorant of economic science, has but

to show that mankind are not all fools to establish his
assertion that the time approaches when the change
can be made. We admit that there may be another
misunderstanding as regards the attitude taken by
America on the Alabama question, to interrupt
the hitherto steady rise in the price of bonds. But
America's attitude is as dignified as it is firm.
There is nothing in either the PRESIDENT's Message
or in Senator SUMNER's speech but expressions of
good will towards the kindred nation of Great Bri-
tain, and the determination to avoid any interruption
to peaceful relations. That attitude is merely this ;

—We earnestly desire a satisfactory settlement, bul

in the interests of peace we prefer no settlement to
one which does not cover the whole dispute.—This

is not an attitude calculated to alarm investors. It
could scarcely fail, if Englishmen fully compre-
hended it, to alarm them as a nation, for it leaves
their precedent established that might at any mo-
ment strike them the fatal blow ; but German and
French investors will see.in this no reason against
purchasing the new bonds, which we may now ex-
pect to be soon issued on this side. For these rea-
sons we hold that the limes will, as usual, on Ame-
rican affairs, prove a false prophet, and that Secre-
tary BOUTWELL can accomplish what he very wisely
proposes to effect.
Such a legislation is recommended as will insure
a gradual return to specie payments, and put a stop
to fluctuations in the value of currency. The simple
soldier, ignorant of economic science, brushes away
the numerous speculators in political economy, and
advises that the Treasury be authorized to re-
deem its own paper at a fixed price whenever pre-
sented, and to withhold from circulation all currency
received until sold again for gold. This the Times
believes to be a violation of two implied guarantees,
and a proposal to fix once for all the relative price
of paper and gold. The PRESIDENT'S object is to
reduce the fluctuations in the value of the paper so
detrimental to every interest, and calculated to make
gamblers of all business men. It is evident that
the Times report of the Message is not suffi-
ciently explicit on this point to enable it or any one
else authoritatively to state what the PRESIDENT
meant. It however appears to us that ho proposes,
at a date hereafter to be fixed, to redeem the
currency on presentation at the Treasury, and to
reisue it as the Bank of England issues its notes
in exchange for gold; that is, to keep up the currency
of the United States as now circulating, but to
strengthen the Traasury so fil; it could bear to
give gold to all demanding it in exchange for the
currency, locking the notes thus redeemed up until
the shoe began to pinch, when the notes would be re-
issue .l to the people who required thAti on the sati;
terms as those upon which they had been taken. It
may be observed that if this is the PRESIDENT'S
meaning he associated it with the reissue of bonds
in the European market on lower rates of inte-
rest, and if such a financial operation can be con-
cluded, the United States may easily draw a supply
of gold from Europe to enable the Treasury with
its own accumulated hoard to meet all demands.
Americans arc wholly ::tuaccustomed to deal in coin,
and they do not want a metal currency. What
they have suits them as well asßank of England notes

suit the English if its value could be unchange-
ably fixed, but the value cannot be so fixed until
made exchangeable into the currencies of the world
at a rate settled by law. If the Treasury were en-
abled to proclaim that it would give ten dollars
in gold for every $l.O currency note presented, no
very large amount would be presented, except per-
haps on the first rush. But the simple soldier seems
effectually to provide for this, for he knows that
gold is useless to the American except to remit to
foreigners and to pay import duties; hence he is
aware that on the stringency Ns hich must ensue from
large purchases of the metal in currency the men
who have useless gold in their hands will soon
exchange it into the p Lper which goes. This is a
fact which must be fully understood before what
the PRESIDENT says can be compreleuded, and we
believe that when the Message is received in full
the 'I Mmes will be found to have wholly missed
his meaning. It is open, however, to another in-
terpretation ; for the proposal has been made for
the Treasury to fix the rate, for specified terms,
gradually reducing the premium from the present
figure to par. As the Treasury rules in the gold
market, its decree would settle the price and Pre-
' vent fluctuations, every one basing their transac-
tions on a known figure. But this is open to the
objection that such au arbitrary valuation is a par-
tial repudiation by the United States Government
of its own paper. To buy in the market as any
other party through a broker is one thing, to decree
that the United States " promises to pay" shall be
worth one-fifth less than the figure on their face is
another ; and we can return to the only value at
which the United States Government can by its own
action appraise the United States currency issued
by itself is the sum, in gold, represented on the
face of each note. —Anglo-American 2 imes.