The Sun.
London, England, 1861-11-02 00:00:00

EVENING, NOVEMBER, 2, 1.861.

for strengthening the coast and lake defences, pub-
lished in New York on the 17th October, caused on
that day the greatest excitement on the New York
Stock-market and stocks, which for several days
previously had been steadily advancing, fell from
to 3 per cent., under the impression that a foreign
war was about to be added to the present civil com-
motions. The 11Yetv York Times and Herald approve
the circular ; the former attributes the issuing of it
to the attitude of the leading European Powers to-
wards Mexico, which has excited the anxiety of the
Federal Government, as it has little doubt the
United States is prepared to extend the utmost aid
to Mexico in her extremity, and to offer armed re-
sistance, if necessary, against the attempts at inva-
sion and conquest which Spain may make, and con-
siders American prestige and national honour are
involved in resisting any effort to plant a hostile
flag on the weakest and most opposed frontier of
the United States. The New York Tribune con-
siders the circular ill-timed and unnecessary. The
Evening Post says it may mean a great deal, or it
may mean nothing, and thinks that as Congress as-
sembles in December, and the State Legislature do
not come together until one month later, Congress
will have time to make the appeal if the general Go-
vernment then requires the•aid of the State, and is
of opinion that Mr. Seward's letter needs a com-
mentary to be clearly understood.

A despatch from the Washington Correspondent
of the Associated Press sags Information has
been received -by thrFelAirCTOVEr'nhaent, from a
source entitled to credit, that Messrs. Slidell and
Mason, the Secessionist Ministers to France and
England, are not only authorised to negotiate
treaties of extraordinary commercial advantage with
those Powers, but to place the Southern Confede-
racy for a limited period under their protection."
The New York, Shoe and Leather Reporter pub.
lishes statistics to prove that the Southerners are
not as badly off for shoes as has been represented.
It shows that during the past three-quarters of the
present year a sufficient quantity of brogans went
South to supply an army of 400,000 men for twelve
months, and allow three pairs to each man.
The St. Petersburg (Virginia) Gazette has the
following particulars concerning the late reported
naval engagement at New Orleans :—" The Turtle
ran against the Preble without firing a gun, and
immediately sank her by staving in her sides, she,
in the meantime, being fired upon by the whole
squadron, but the balls glanced from her iron form
without doing the least damage. The Turtle then
turnedvessels, which, seeing the
fate o on f
their thee
companion,
otherpa two
00n
endeavoured to get out of
the way, in which effort they were driven on shore,
their crews deserting them."

Commander Rollins, in his report, says he thinks
he will be able to capture and Carry them both into
New Orleans. The Preble cannot be raised. A
large number of arms, prisoners, ammunition, &c.,
were taken during the action. Commander Hollins
confirms the account of the defeat of Billy Wilson's
Zouaves on Santa Rosa Island. Commander Hollins
arrived in New Orleans on the 14th ult. The city
was illuminated on receipt of the intelligence; the
number of men under Commander Hollins was 300,
the Federalists numbered 1,000.

The following order was issued by the Secretary
of War after he had visited General Fremont :
" St. Louis, Missouri, Oct. 14, 1861.
" GENERAL,—The Secretary of War requests me
to communicate the following as his instructions for
your Government. In view of the heavy sums due,
especially in the Quartermaster's Department in
this city, amounting to some 4,500,000 dols., it is
important that the money which may now be in
the hands of the disbursing officers, or be received
by them, be applies to the current expenses of your
army in Missouri, and these debts to remain unpaid
until they can be properly examined and sent to
Washington for settlement; the aisbursing officers
of the army to disburse the funds, and not
transfer them to irresponsible agents; in other
words, those who do not hold commissions from the
President, and are not under bonds. All contracts

necessary to be made to be made by the disbursing
officers.

" The Senior Quartermasters here have been ver-
bally instructed by the Secretary as above. It is
deemed unnecessary to erect field works around this

city, and you will direct their discontinuance ; also
those,lif any, in course of construction at Jefferson

City.

In this connexion it is seen that a number of

commissions have been given by you. No payments
will be made to such officers, except to those whose
appointments have been approved by the President.
This of course does not apply to the officers of va.
lunteer troops. Col. Andrews has been verbally so
instructed by the Secretary, also not to make trans-
fer of funds, except for the purpose of paying the

troops.
" The erection of barracks near your quarters in
this city to be at once discontinued. The Secretary
has been informed that the troops of General Lane's
command are committing depredations on our friends
In Western Missouri. Your attention is directed to

this in the expectation that you will apply the cor-
rective. Major Allen desires the services of Capt.
Turnley, and the Secretary hopes you may find it
proper to accede thereto.—l have the honour to be,

very respectfully, your obedient servant,
" L. THOMAS, Adjutant-General.
" Major-General S. C. Fremont, Commanding
Department of the West Tipton, Missouri."
The Evening Post says—We learn that the banks
have offered to take the third 50 millions of the

7 30 loan on the condition that:interest is allowed
from Oct. 1. This Mr. Chase declines to do, and
names No. 1 as the date of this instalment. We
hear also that Mr. Chase, in answer to a proposition
of the banks in regard to the 100 million 7 per cent.
bonds which he is authorised to issue, informed the
agents of the banks that he had an offer from fo-

reign capitalists equal to 61 per cent, interest at par
for the entire loan. Mr. Chase of course expressed
his willingness to entertain offers from the asso-
ciated banks at anything near the same terms.

TB'E LAST INDIA AND CrIIINA NAILS.

The:Llavy portion of these mails arrived at South-
ampton y esterday morning, at eig ht o'clock, by the
Peninsular. and Oriental Company's screw steamer
Pera, Capt. T. Jamieson, which le: Ft Alexandria on
the 20th ult. , Malta on the 23d, a nd Gibraltar on
the 27th. Fine weather was expel fenced through-
out the voyage, with north-westerly winds between
Alexandria and Malta, easterly to Gibraltar,: south-
westerly (strong) to Lisbon, and northerly across
the Bay of Biscay and up Channel.
The Perm bro tight 61 passengers (of wh 3m 25
were first-class, 15 second, 12 children, and 9 deck),
a list of whom was published in The Sun of Wed-
nesday, and on freight four packages of specie,
value £3,800 sterling; 1,844 bales of silk, '6 cases
of dates, 600 bags of wheat, 500 bags of beans, two
cases of indigo, and 84 packages of sundri.es.
A letter from Melilla states that the Kabyles of
Benisiar, having heard of the departure of Muley
had made peace with. the garri-
son.i s for This tribe, int,will be remembered, wras opposed
tAobtbhaeintrorb
dSiuleea tion of provisions into that fortress.
In proof of their oincerity the Moors handed over
to a sailor the value of a boat which thoy,had taken
away from him, and brought back some heads of
cattle belonging to employes at Melilla. Abundance
of all articles of consumption from the Moorish
frontier is already noticeable. The settlement of
the new boundary line was expected. The Moors
affirm that they will far the future live with the
Christians in as peaceable a manner as with their
own brethren.
The Gibraltar Chronicle says that Don Rafael
del Moral, a gentleman belonging to the Govern-
ment telegraph department in Madrid, has recently
been taking soundings and making the necessary ex-
amination to determine the best manner to connect
by a submarine cable the Spanish coast with Ceuta.
He is of opinion that the cable may be laid
either between Tarifa and Ceuta or Marbella and
Ceuta; but his own opinion is most favourable to
the line from Marbella.
Exchanges at Gibraltar were last quoted as fol-
lows :—London (90 days' date), 49a to 11-16 ; Paris
(ditto), sf: 25c. ; Marseilles (ditto), sf. 26c. ; Genoa
(ditto), sf. 27c.; Brussels (ditto), sf. 30c.; Madrid
(8 days' sight), / dis. ; Cadiz (ditto), t dis. ; Malaga,
(ditto, par; Seville, dis. ; Alicante, 3- dis. ; Va-
lencia, I pm. ; Barcelona, I pm.; Spanish pillared
dollars, Ferdinand, 2/ per cent. pm.—no demand ;
ditto, Carolus, 22 per cent. pm.—in demand. Silver
five-franc pieces, 1 per cent. pm.; Mexican dollars,
3 per cent. pm.

Freights to London and outports in the United
Kingdom, 255. to 30s. per ton by steamer, and 10
per cent; Brazil and River Plate, 12 dols. per ton,
and 10 per cent., nominal ; Gulf of Mexico and
Havannah 12 dols per ton, and 10 per cent nominal.
Three French transports, with troops for China,
were in harbour at Alexandria, and also the usual
Egyptian fleet, when the Pera left that port on the
20th ult.

Her Majesty's ships Hannibal, Melpomene,
Hibernia, Wanderer, Intrepid, and Doris were at
Malta on the 23d; and the Trident, Malacca,
Scourge, and Procris at Gibraltar on the 27th.
The Ceylon steamer, Capt. W. R. Evans, from
Southampton on the 20th, with the East India,
China, and Australian mails, arrived at Gibraltar
on the 25th, at 7 a.m., 4 days 21 hours out, and
went on to Malta and Alexandria the same day
The steam ships Olympus, Capt. J. R. Bell, 5 days
from Liverpool, and Palermo, Capt. W. Taylor, 19
days from Glasgow and 2 from Lisbon, arrived at
Gibraltar on the 25th, with cargoes for Genoa, Leg-
horn, &c. The Bcuotia steamer, for Liverpool,
arrived at Gibraltar from the eastward just as the
Pera left.

The British brig General Havelock, from New-
port for Malaga, with a cargo-of coati, sank on the
sth ult., 70 miles south-east of the Sorlingas, after
being in collision with another vessel; crew saved.
Advices from Cadiz state that the keel of a new
Spanish 50-gun frigate, to be called Las Navas de
Tolosa, was to be laid in the arsenal of the Carraca
on the 30th of October; and the keel of another
frigate for the Spanish Government is about to be
laid down in the arsenal of the Ferrol.

During the passage home the Pera spoke the fol-
.owing vessels :—Oct. 23, the Peninsular and

Oriental steamer Euxine, with the outward Bombay
mails of the 12th, steering to the eastward ; 27th,
in the Straits of Gibraltar, the bark Highlander ;
2Sth, off Cape St. Vincent,- the steamer Laconia ;
and on the 30th, at 4.30 p.m., the Peninsular and
Oriental steamer Tagus, bound for Vigo, steering
to the southward.