The Sun.
London, England, 1861-11-30 00:00:00

'ON BE7WEEN ENGLAND
2IERICA,

THE QUESTII
AND A

The following document was drawn up on Thurs-
day on board the President, and signed by all the
men of the Naval Reserve in that ship. It is under-
stood (says the Shipping Gazette) that a similar
expression of feeling is about to emanate from the
naval volunteers at our principal outports :—" To
Captain Lacy, R.N., her Majesty's ship President,
City Canal. Sir,—Having heard that our flag has
been grossly insulted by an American ship of war,
and people who claimed its protection forcibly taken
from it and made prisoners, we write this to let you
know that we are ready to fulfil our engagement,
and protect the honour of our flag, our good Queen
and country, whenever called upon to do so. We
respectfully request you will make this determina-
tion known in the proper quarter."—(Signed on
behalf of the Volunteer Reserve on board the Pre-
sident.)

LIVERPOOL, FRIDAY.

Attention is still absorbed upon this exciting
topic, to the complete neglect of business. Yester-
day people were beginning to settle down to the
conviction that the stoppage of the Trent and the
seizure of the Confederate Commissioners, though a
very ugly and nauseous pill to swallow, could not
be legally objected to; but a revulsion of feeling
immediately took place today, on the receipt of the
telegraphic advices to the effect that the law officers
of the British Crown had decided that the action of
the Federal officers was unjustifiable. War or the
prospect of war with America is, of course, in a
port like Liverpool, a matter which causes the
most intense anxiety and interest. As the day
advanced a greater assurance and quietude took
possession of the public mind, as, upon re-
flection, the probability gained ground that Mr.
Lincoln's government would make► a prompt and
handsome acknowledgment that their officials had
exceeded the authority given to them under inter-
national law. There was no demonstration on
'Change to-day, and the " Indignation" meeting of
Wednesday is now generally regarded as a most
premature and inconsiderate manifestation. The
sales of cotton to-day were only 1,000 bales, the
smallest amount known for a quarter of a century.

MANCHESTER, Nov. 29.

The excitement arising out of the stoppage of
the Trent, m -.AI-steamer, by an American war
frigate, has occasioned an entire suspension of
business in this market, and more especially since
the receipt of telegraphic advises from London that
the law officers of the Crown had declared the
act to be one of illegality, and that the Govern-
ment were determined to demand reparation. Most
people here seem to display a good deal more calm-
ness than it appears by all reports to hand has been
the case in London, Liverpool, and some other
towns; but at the same time it is undoubted that
there is a strong war party, who will not see any
way out of the difficulty but that which would
depend upon the arbitrament of the sword. Some
of the Americans hero seem to think that their
government will be disposed to make every repara-
tion consistent with honour, if it shall be shown
that they have acted contrary to the law of nations
as laid down in such matters, whilst others regard
the matter as one almost sure to lead to war,
seeing the strong sympathy which prevails
for the Confederates on this side the Atlantic.
People are not at all disposed to do business. Some
of our manufacturers have been very anxious to
sell, and are offering shirtings at a reduction of as
much as 6d. per piece, but it does not appear that
any sales have been made, or indeed that business
could be effected at any prices. The yarn market
is greatly deranged. Prices are reported weaker,
but there is no business doing at all. Many of
the spinners and manufacturers attending the mar-
ket have left town much disheartened at the prospect
of ruin and misery which must result to this district
in the event of war, however triumphant to British
arms might be the result of a conflict.

EFFECT OF TEE INSULT 70 THE
B.RITISJI FLAG ON THE 1101VEY MARKET.

- -

The announcement that the Law Officers of the
Crown have given an opinion that the proceedings
of the Captain of the American frigate San Jacinto
were illegal, caused Consols to open yesterday
morning at a further fall of three-quarters per
cent. Subsequently the heaviness increased, until
transactions took place at one per cent. below the
last price of Thursday, and two per cent. below the
highest price of last week. Before the termination
of business, however, there was a rally of about a
half per cent.
The recovery in the stock-market yesterday after-
noon was attributed partly to an impression that
the Cunard steamer due on Sunday may bring a
disavowal of the act of the San Jacinto, and partly
to a report that Mr. Adams, the United States'
Minister in London, has expressed a belief that it
could not have been authorised by the Washington
Cabinet. The natural impression as to the conduct
which civilised nations are entitled to anticipate
from each other would, of course, strongly favour
this view, but any very sanguine expectations are
damped not merely by the numerous indications
during the past six months of the determination to
provoke a conflict, but also by the symptoms that
the United States' ship of war recently at South-
ampton contemplated a similar aggression. It is
likewise feared that even if a disposition to a mode-
rate course should prevail at Washington the ques-
tion may be taken out of the hands of the Govern-
ment by the mob. The feeling in the City is, that
were it not for this consideration there would be
little reason to apprehend serious consequences.
Although there has never been much doubt as to
the views of Mr. Seward, it has been believed for
some time past that an influential section of the
Cabinet have been strongly opposed to the policy
of attacking this country, and it is certain that all
the respectable trading classes in Now York and
the principal cities were desirous only of maintain-
ing friendly relations. The banking interest espe-
cially, who have just subscribed for £30,000,000 of
stock, the chief part of which still remains on their
hands, would naturally view with dismay the de-
preciation that must instantly follow the prospect
of a rupture. Another and still more valuable
ground of hope is seen to consist in the prompt,
clear, and temperate expression of opinion on the
part of the French press; and, although the latter
circumstance can have no effect in mitigating any
hostility of tone that may be brought by the in-
coming steamer, there can be little doubt that it
will have immense weight in facilitating an adjust-
ment, so long as the means of adjustment are still
open.-7imes' City Article.