The Sun.
London, England, 1859-03-16 00:00:00

INDIA AND CHINA.

By the arrival of the Calcutta mail we (Times)
have received our private correspondence and files
of papers from Calcutta to the 9th of February
and from Hong Kong to the 29th of January.
The following is the letter of our Calcutta cor-
respondent :
" The position may almost be described in the
old telegraphic formula, 'lndia is profoundly quiet.'
There are riots in the Deccan, and riots reported
from Travancore ; there are Sepoys who still refuse
to submit in Behar, and ladies have been flying
from Hissar. But war, for the first time since May,
1857, has ceased. Not a movement has been re-
ported from Oude, and the people of that province
have at last comprehended their position, and re-
turned to their ordinary avocations. Here and
there a Killadar requires a menace and a few shots
just to satisfy his liajpoot notion" of honour; but
there is nothing approaching to resistance. 483
forts have been levelled, and in a few days the
number of arms surrendered will reach a million
stand.

Mr. Montgomery in a single night (20th January)
dismissed every member of the old police force,
which was as corrupt, as cowardly, and as inefficient
as the police everywhere else, and replaced them
by armed and drilled constabulary after the Irish
plan. Each division—a division contains usually
three .counties—is occupied by a regiment of
mounted police, and three Kegiments of infantry.
The cities have a police of their own, aided by a
corps of trained detectives, and commanded by a
Kotwal or Mayor. The police are forbidden to re-
ceive confessions or take evidence, the only success-
ful precaution against torture, and the investigation
is left exclusively to the civil magistracy. The
landlords are compelled to give information of all
crime on their own estates, and the village police,
a band of ruffians who are the curse of Bengal and
the North-West, though not abolished, are
ignored. The magistrate, it is proclaimed, will
look to their master, the landholder, and not to
them. The new system is, of course, experimental,

but it contains many elements of success, and at all
events rids us, of the vile traditionary police, who
had neither discipline, courage, organisaiion, nor

honour.

"P. J. HUGHES."

Her Majesty's steamer Inflexible left this for
Japan (calling at Shanghai) on the 18th inst., in
pursuance of these instructions, and it is to be
feared that her mission will be productive of harm.
We know not whence Lord Malmesbury can have
derived information so erroneous. The vessels of
all treaty Powers which have lately visited Japan
have been duly admitted to legal trade, and we
believe no complaints have been made by the
Japanese Government of the introduction of for-
bidden goods, or other irregularity.
We extract the following from the North China
Herald, which is the latest we have from. Japan :
" From Japan (Nagasaki) we have dates to the
31st ult. The Japanese of that port now have per-
mission to sell bullocks to foreigners, and they do
so at three Mexican dollars a herd ; the Governor
has also imported a large number of sheep for
breeding, from Shanghai, with a view to providing
foreigners and shipping with supplies."
From Cochin China we have no news.

Exchange on London at six months' sight 4s.
lid. to. 4s. 22. Opening prices for new crop sugar
are expected to be high. Our dates from the coast
are :—AMoy, 26th ; Foochow, 24th ; and Shanghai,
22d inst., but beyond our commercial news there
is nothing worthy of notice.

COMMERCIAL INTELLIGENCE.
CALCUTTA, TUESDAY, FEB. 8.
THE MONEY MARKET.—An extraordinary meet-
ing of the directors of the Bank of Bengal was held
on the 24th ult., and on it breaking up we learnt
that the minimum rates of interest had been raised
1 per cent. all round. This move was attributed
to the tightneis of the money market at Bombay,
and large demands thence being expected here.
On the 26th ult. Government issued a notification
that subscription in part to the 5 per cent. loan of
the 34- per cent. promissory notes would be closed
after the 30th of April next, after which only cash
or bills of the new denomination would be received.
A new loan was advertised on conditions novel to
this market, viz., that the Sub-Treasurers of the
three Presidencies were authorised to receive sub-
scriptions for Treasury Bills after the manner of
Exchequer Bills in England, and bearing interest
at the rate of 3 pies, or one-fourth of an anna, per
day for every 100 rupees. This rate is equal to 5
and 7.loths per annum.
These bills are to be payable on demand after the
expiration of one year from the date of issue. They
will also be received at the expiration of that period
in payment of Government revenue, or in subscrip-
tion to the present 5 per cent. loan, the interest
payable half-yearly.
The New Treasury Bills are not in favour, and
the sums paid into the Treasury to date are very
triflin
bNotwithstanding these disturbing causes, money
is easy in the Bazaar, and loans are obtainable on
Government paper at 7 per cent.
THE IMPORT MARKET.—An unprecedented acti-
vity continued to prevail in this market until lately,
when unfavourable accounts from most of the up-
country principal markets caused a general reaction
in our market, and business has been checked con-
siderably owing also to the very high prices paid
for every article of piece goods. Yarn is dull and
declining in prices, particularly No. 40. Metals
generally quiet. We have no alteration to note in
the state of our metal market. Prices, however,
are firmly maintained, and a slight advance may be
looked for in iron, as the imports have considerably
fallen •off. Sheathing copper and yellow metal in
better demand.

" The new force is to be deprived of its muskets
as soon as the population is disarmed, and compelled
to rely on the sabre, the spike, and its superior dis-
cipline. The civil officers, I understand, are not
pleased with the change. Men who have grown
up under any system, however bad, are seldom de-
lighted with its sudden and total abolition.
" Tantia Topee has disappeared. He and his
men entered the desert of Bikaneer and have never
been heard of since. Apparently they have split
into small parties, but whether to disperse or to
reunite at some point still further to the north is
not yet known. Neither he nor Feroze Shah has
been captured.
" You will have received by the Bombay mail
the announcement of an issue of Exchequer-bills.
The plan has failed, and the experiment has done
some mischief. The rate offered, 51 per .cent.
per annum, or three pice a-day, was so high,
that the Five per Cents. receded at once to 89a,
while the offer to pay them off at the expiration
of a year deterred permanent investers. The
class who in England buy these bills—men with
large balances which must be held ready at call—
will not buy them in India, for the simple reason
that they can make 8 per cent. by advances,
usually only for a few days, on Government
paper. The utter absurdity, also, of an open
loan at 5 per cent., and another at 51 per cent.,
daunted speculators, by making them believe a 6
per cent. loan imminent. The true reason of these
failings is the perverse secresy always maintained
by the Indian Government about its financial posi-
tion. No capitalist can' obtain the smallest idea
how much Government is likely to want, or when
it will cease borrowing ; and confidence, particu-
larly among natives, is destroyed by financial coups
de theatre. Railway stock, always unpopular here,
has sunk with the Government notes, and we have
the absurdity of East Indian Railway stock quoted
in Calcutta at 89 and in London at 107.
"Your contemporaries, I see, are urging on gua-
rantees, on the ground that the consequent physical
improvement of the country will remove the deficit.
This is a mistake arising from a misconception of
our revenue system. If the State built the railways
and cut the canals it might be the case, but the
profits under the guarantee system go to English
shareholders. Even irrigation will not help the
deficit if private companies are to reap the profits.
The improvements will benefit the country, but not
the treasury. In Bengal, for example, whatever
happens we cannot increase the land-tax, that
would be a breach of faith. In the North-West
and Bombay we cannot increase it for 30 years,
and in Madras, though we have as yet no time
settlement, Government is conceding one as fast as
the land is surveyed. Guarantees will give us a
complete system of communication, a thing of in-
estimable value, but they cannot, from the nature
of our taxation, affect the deficit. If it is to be
met by public works, which is quite possibly,
Government must do the work itself and take the
profit. It cannot allow the Madras Irrigation
Company to sell its water at full value and then
tax the ryots for the mere privilege of buying. If
the work is done by the State a financial equilibrium
is ultimately certain, and the only remaining ques-
tion is one of time. Can we live on loans for ten
years ? The permanent deficit, I repeat, will be
five millions a year, unless the native armies are
abolished; and an addition of fifty millions to the
territorial debt, and probably of as much more in the
shape of guarantees, will make your boldest finan-
ciers pause. The Council may struggle for a time,
but the extinction of the native armies or a new
tax are the only immediate alternatives.
" Our communication with England is in a curi-
ous condition. The Peninsular and Oriental Com-
pany have not a single vacant berth before June,
and the overland route is in effect closed. Sir J.
Lawrence, for example, has been refused a passage,
and compelled to go via Bombay, The amount of
annoyance, and often of positive suffering, thus
'caused is very great, and the Company should
instantly put on extra steamers. They ,have one or
two to spare here, but the agent says he has no
authority to act without orders from England. The
rush homewards is unprecedented."

CHINA.

HONG KONG, JAN. 29.

The London mail of the 9th of December arrived
here, per steamer Pekin, on the 27th inst. The
Cadiz, with the outward mail, leaves at 9 a.m. to-

morrow.

Lord Elgin remains at Shanghai, and his future
movements are unknown.

At Canton affairs are more peaceful.

HONG KONG, JAN. 29.

The export of tea from China to Great Britain is
36,401,5001 b., against 37,632,0001 b., or a decrease
for season 1858.59 of 1,230,7001 b. To the United
States the decrease is 681,8001 b.

Silk export to Europe is 54,689 bales against
53,155 bales, or an increase this season of 1,543
bales.

At Hong Kong and Canton trade has been dull
during the fortnight, and the approach of the China
new year, which commences on the 3d of February,
has for the present put a stop to business among
Chinese, the settlement of whose accounts takes
place at this period. Our quotations are, therefore,
nominal, and on the resumption of business a fair
demand for imports is looked for.
Tea.—Arrivals are five chops, mostly of very
inferior quality. Settlements of nine chops Con-
gou at 231 to 29 tacls, and about 12,000 boxes
scented and green teas. Teamen are very firm in
their demands, and supplies come forward even
more slowly than was anticipated. Stocks are
only 3 chops old, and 7 chops new Congou ;
Souchong, 7 chops old, and 1 new.
Freights to En,,,,land—.£2 to £2 10s. Four
vessels sailed, and five circulated to load for Great
Britain, but making little progress.
Exchange is unchanged; Bank bills, 4s. 51d. ;
credits, 4s. 6d. ; for six months' sight ; on India, at
three days' sight, 216 r. per 100 dollars.
Shanghai.—lmports have been in good demand,
and a considerable business was done until the
holydays affected the market, which closed firmly,
and is expected to re-open at higher prices.

Since the expedition to Shek-tsing the Braves
have given less trouble, and a naval expedition
sent to Fatshan was received in a friendly manner
by the authorities.
The following is a copy of a despatch (published
in the *Government Gazette) from Lord Malmes-
bury to the Lords Commissioners of the Admiralty,
and by them forwarded to his Excellency Sir
Michael Seymour :

" Foreign-office, Nov. 24, 1858.
" My Lords,—l have the honour to acquaint
your Lordships that I have been informed that
certain British merchants in China contemplate
the immediate despatch to Japan of vessels laden
partly with goods which, even if the treaty were
ratified, and the trade duly opened, could not
legally be imported into Japan.
" Her Majesty's Government would much regret
that the commencement of British intercourse with
Japan should be signalised by acts of smug,,,ling and
any illegality or violence on the part of British
subjects, which, although they might for the mo-
ment be pecuniarily beneficial to the party con-
cerned in them, would tend to check the disp?si-
tions of the Japanese Government to enter into
friendly intercourse with this country, to paralyse

legitimate trade, and to impress the people and in Cairo, where the youthful Prince resided with
Government of Japan with an unfavourable opinion his suite during his sojourn there; and furthermore
of the British character, which would require a daily sends on board the Euryalus, in honour of
long time to efface.
the Prince, according to the Turkish custom, an
" At all events it is the duty of her Majesty's
supply ofprovisions of
abundant
all sorts, costing
Government to do their utmost to avert any such
evil consequences, and I have accordingly to re- about £2OO per diem.
quest your lordships by to-morrow's mail to send Trade continues dull. Wheat has risen enormously
instructions to Sir M. Seymour at once to despatch high in consequence of the demand for the Red Sea.
to Jeddo a ship of adequate force, and to instruct.
Some of our merchants are shipping it hence to
pp the commander of such ship to inform the Japanese
Government that her Majesty's Government are Cairo for transmission thence by rail to Suez and by
not privy to any British subjects carrying on any steamer to Jeddah, where it fetches equal to 9s. per
illicit trade with Japan, if such should be attempted bushel. Our cotton crop this season is about one-
either before or after the exchange of the ratifica- third short of the previous one, and of a very in-
tions of the treaty ; but that her Majesty's Govern- ferior quality
ment, highly disapproving such conduct, will not
P.S. The Calcutta mails on this occasion have
extend their protection to any British subjects who
May violate the laws of Japan. met with a great detention on the isthmus, in con-
" The British commanding officer in Japan should sequence of part of the line between Suez and Cairo
also warn the masters of any British ships so trad- having got blocked up with moving sand during
ing that they will not be protected from the effects the late gale, and one of the engines had to be dug
of any such illegal proecedings on their part. out. I take this opportunity to inform your
" It might also be desirable that Sir M. Seymour
should, in the manner which he may judge most readers that the fares between this and Suez for
suitable, make known to the British subjects in the passengers and cargo have been reduced as follows,
Chinese ports and at Hong Kong the course pre- viz., for first class, £7 per head; second, £3 10s. ;
scribed to her Majesty's naval force in Japan.— cargo, £6 per ton weight. The transit duty of
T have, &C., "MA LMESBURY. per cent. ad valorem on goods has also been taken
" The Lords Commissioners of Admiralty."
" True Copies. off. The companies in the Red Sea have also the
great advantage of having their coals sent across
tne isthmus at 30s. per ton, which will be a con-
siderable saving, considering the extravagantly
high freights paying for vessels to come round the
Cape.

VOCAL ASSOCIATION.-ST. JAMES'S

HALL.

Another undress concert was given here last
evening, the whole of the vocal music being exe-
cuted by members of the Vocal Association, who
evince taste and talent thoroughly worthy of the
unanimous applause bestowed by crowded audiences.
It appears superfluous to distinguish any particular
artiste or performance when all strove zealously
to sing their best ; but if we may venture
on a selection, we can mention that " Beau-

tiful May" was exquisitely sung by Miss
Saunders and encored, that Miss Boden did ample
justice to "Oh ! Bay of Dublin," and that a
fantasia on Irish airs for the pianoforte, played by
Miss Ward, and a solo for the violin by Herr J.
David,, were received with very great pleasure, and
appeared to afford intense gratification to the
attentive and • discriminating listeners. M.
Benedict, as conductor of this association,
evidently bestows an earnest interest in
his duties, which goes far to insure the invariable
success crowning the entertainments. A great ac-
commodation is presented on these occasions by the
absence of full dress ceremony, which allows visitors
to enjoy an evening's delightful amusement without
the fuss of employing a carriage or requiring the
extraneous toilette arrangements of artificial flowers
and white neck-ties. We can cordially and warmly
recommend these charming concerts to the notice
of the music-loving public.