The Sun.
London, England, 1861-05-27 00:00:00

may arrive. And the moneys arising therefrom
shall be held and are hereby pledged by the Go-
vernment of the Confederate States as a fund for
the support and maintenance of the widows and
orphans of such persons as may be slain, and for
the support and maintenance of such parsons as
may be wounded and disabled on board of the pri-
vate armed vessels commissioned as aforesaid, in
any engagement with the enemy, to be assigned
and distributed in such manner as shall hereafter be
provided by law."
In reference to the surrender of Confederate
troops to a Federal force at Camp Jackson a tele-
gram from St. Louis says :--
" Ginnct All)onald, Captain of the Mounted
Rifles belonging to the South-west expedition,
who refused to swear allegiance to the United
States, or to accept of his relase on parole, is still
confined in the arsenal as a prisoner of war. Judge
Treat, of the United States Circuit Court, was
petitioned yesterday for a writ of habeas corpus,
and his decision is anxiously looked for, as it will
involve the constitutional question which has been
raised relative to the capture of Camp Jackson,
with three 32-pounders, a large quantity of balls,
bombs, several pieces of artillery in boxes, 1,200
rifles f a late model, six brass field- pieces, six brass
mortars, one 10-inch iron cannon, several iron
cannon, several chests of muskets, five boxes of
cannister shot, 96 10-inch and 306 6-inch shells, 25
kegs of powder, a large number of musket stocks
and barrels, between 30 and 40 horses, and a con-
siderable quantity of camp tools. The number of
prisoners taken to the arsenal was 639 and 50
officers."

A statement had been published by General Frost
and his staff, explaining why Camp Jackson was
surrendered. They say there were only five rounds'
of ammunition in the camp, and neither arms nor
provisions enough to supply the force—Soo men—
under their command. To attempt resistance, sur-
rounded as they were by 6,000 to 8,000 troops well
armed, with every appliance of war, would have
been mere suicide, and retreat was impossible, they
being without means of transport or provisions,
and no credit to procure either. They censure the
State authorities for not paying its just military
debts, say proper supplies could be procured, and
pronounce Captain Lyon's demand illegal, unconsti-
tutional, and wanton, trampling under foot the
laws of their common country. Respecting the dis
turbance in St. Louis, an official statement says,—

" The first firing at Camp Jackson Friday even-
ing was some half-dozen shots near the head of the
column of the Ist Regiment, headed by a volley of
stones and a pistol-shot from the crowd. No one
was hurt at this point. The second firing occurred
from the rear of the column guarding the prison-
ers. The crowd hire was large and very
abusive, and one man discharged three
barrels -of a revolver at Lieutenant Faxon,
of the regular service, many of the mob
cheering him, and drawing revolvers and firing at
the troops. The man who eunmenced the attack
then laid his pistol across his arm, and was taking
deliberate aim at Lieut. Faxon, when he was thrust
through with a bayonet, and fired upon at the same
time, and instantly killed. The column then moved
on, having received orders to march, and the Com-
pany, being assaulted by the crowd, and several of
them shot, halted and fired, causing the deaths
already reported. The order was then given by
Captain Lyon to cease firing, which was promptly
obeyed."
A vessel is reported to have arrived at New
Orleans with 230,000 stand of arms.

The reported negro insurrection in Owen county,
Kentucky, is contradicted.
Advices from California report that a number of
vessels were loading grain for England.

NEWSPAPER
tre-ft4
i ÷(31,0:1,011,. ti 44
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:kit; Ak-AQ
•= •
BAIN K RET
- ii=
By the return of the Bank up to the 16th inp
st.,
it appeared that a diminution of the bullion to the
extent of £491,173 had taken place since the for-
mer return, lea,ving the stock of bullion £12,382,446.
The unemployed notes in the banking department
had decreased by £387,820, leaving the amount in
hand £5,978,195.
In May, 1859, the stock of bullion sTas larger by
about £5,000,000, and the notes in hand £3,000,000
more. Discounts were then 4 per cent.
The rise of the rate to 6 per cent. was, under all
circumstances, generally anticipated. Government
is making 'remittances of silver to India, and a
considerable amount of gold has been sent to the
United States. Should these remittances to Ame-
rica ssrtie,ie a further rise in the rate is certain,
awl the enects will become speedily apparent in au
increase in the number of failures, and a further de-
pression in trade.
- A system entirely opposite to that which Peel's
Bills force on the Bank, would he the one which
the national interests at present require. Last
year's harvest was defective, and we have had a
large baker's bill to pay. India, under the irra-
tional currency system adopted there, drains away
our Silver. The more labour is engaged on rail-
way and irrigation works, the more necessatj. it
should be supplied to o
becomes that
carryl a m '
sonaltlhedecnoonminiinotaiticon-,.
changes of daily life. More employment of labour
calls out more wages; more wages, more buying
and selling, more small change is required. So Sir
Charles Wood interferes with Mr. Wilson's plan
to make the proposed paper money of a larger
denomination ! Why, we repeat, should not notes
circulate in India for one, two, and three rupees
This would diminish the drain of silver, have a
tendency to keep down the rate of discount, and,
prevent many a failure in Manchester, and the
misery of the family of many an unemployed ope-
rative.
But in addition to the causes for anxiety referred
to, the contest in America is raising the price of
cotton, depressing trade, and draining away gold.
Now, under such circumstances the wise finan-
cial policy of a Government would be, not to dimi-
nish the circulating medium of the country, but to
increase it by prudent and judicious advances to
all mercnants and traders holding goods, real pro-
perty, or good bills of exchange. This should be
done at a fair, moderate rate of interest. And this
would be done did not Peel's bills of 1819 and 1844
interfere most injuriously to diminish the circulat-
ing medium, and to raise the rate of discount when-
ever a time comes at which, from a drain of bullion,
the paper money currency becomes more useful and
necessary than usual for domestic circulation.
The reformation of the monetary system of a
country is not to be undertaken lightly or inconsi-
derately, but the experience of the panics of 1847
and 1857 has proved to the mind of every impartial
observer that Peel's system is a disgraceful failure.
Australian gold, it is true, enables the country to
endure it for the present. But it will not be always
so, and let the supply of gold be what it may, there
must under the existing monetary laws be times of
great depression of trade, and monetary panics.
Compared with the currency reform so urgently
demanded, the disputes about the paper duty and
the tea duty, which have engaged so much of the
attention of the legislature, appear to us frivolous
and trivial as the sports of children. Mr. Gladstone
may depend upon it that the country cannot, and
will not, bear the enormous load of taxation, with
a high rate of interest, and a contracted circulating
medium. For the present the disgraceful display
made by the United States is disgusting all think-
ing men with democratic misgovernment, but dis-
tress, privation, and ruin make men dissatified with.
the Government under which they live, be its form
what it may.
The people will begin to doubt the excellence of
the British Constitution when they are reduced to
beggary under its enactments.—Derbyshire Courier.

THE DANGERS OF THE MORRILL
TARIFF 20 THE MUTED STATES.

(Pion the Money Markel Review.)
In our last impression various considerations were
enumerated illustrating the influence of the. 'Morrill
Tariff in embittering the enmity between the North
and the South. But that Tariff is also full of
danger to the United States themselves. li, intro-.
duces a wedge which may yet split the Northern
Confederation asunder. It is in this sense that it
is condemned by the most enlightened commercial
authorities in the North itself. The United State.*
Economist, for example, pronounces " the Morrill
Tariff the most revolutionary instrument of modern
times." "Itis no use disguising the fact," observes
that journal, " that among the mercantile comma.
pity of New York there is a strong feeling growing
up in favour of making the city a free port, in the,
event of the protective party persisting in the per-
manent imposition of higher duties than those of
the Tariff of 1837. Men whose devotion to the
Union has always been unswerving have had their-
faith in Federal legislation so severely shaken
by the madness that passed the Tariff law
that they begin to say, 'if we cannot save
our trade in the Union, we must try to
save it out of the LUnion.'" Not less signifi-
cant arc the following excellent messages, which
will be read with great interest in this country
" The thoughts of the people are beginning to shape
themselves into such awkward questions as these—
Is it right that a petty minority of States should
control the commercial policy of the whole Union ?
Is it not giving too much for the advantages of
union that we should have to pay a premium
amounting to hundreds of millions annually on the •
incompetency of our own manufacturers toproduce
as cheaply as those of other countries? Are we,
not sacrificing our own interests when, by allow-
ing the building up of an exclusive system of com-
merce, we are preventing foreigners from buying
from us our immense annual exports of natural pro-
duce ? Is not a section of the manufacturing in-
terest building up for itself a monopoly oppressive to
all the interests of the country ? Can we afford to
be everlastingly paying 30 per cent, more than is
necessary for all we wear, all we drink, and, in
short, for everything for which our money is given
in exchange ? Is it not clear that a union imposing
upon the people such heavy burdens has to some
extent failed to realise those purposes of sub-
stantial interest for the securing of which it was
first formed ? These are some of the ominous
thoughts naturally suggested by the present con-
dition of the country and by the recent tariff
legislation. The bonds that unite the several States
to each other are loosened; and under such circum-
stances those sections naturally classed together by
similarity of interests are beginning to ask them-
selves the grave question, whether they would not.
prosper better if freed from the heavy imposts
levied by the manufacturing interests of the coun-
try. The fact that there is in the country a knot
of Protectionists powerful enough to pass such an
oppressive Act as Morrill's Tariff gives them no
assurance that in the future these burthens are
likely to be lessened ; whilst the fact that seven
States are now gone from the Union whose opposi-
tion has always kept the Protectionists in check
gives promise of their increased power. This
aspect of affairs is unquestionably promoting the
various sections to balance the question—interest
in the Union, and interest out of it. Such facts as
the foregoing cannot fail to tell upon their fealty to
the Union if the Protectionist party should press
too heavily upon them."