The Sun.
London, England, 1868-12-26 00:00:00

TH 4. SUN, LONDON, SATURDAY EVENING, DECEMBER 26, 1868

that Septem, or Septa, which was captured in
534 during the African campaign of BELISARIUS
which was wrested from the Moors in 1415 by King
JOHN I. of Portugal—and which in 15S0 passed
at length under the rule of the Spanish
Monarchy. Now we want it. Let us have
Ceuta—it is proposed that we should say
to the Spaniards—let us have Ceuta and we
will hand over to you in return the dismantled
fortifications of the rock of Gibraltar ! Nothing like
doing a thing handsomely ! There was no barter
when we ceded the lonian Islands to Greece. But
let us have a little bartering, as but just now pro-
posed, in the instance of the fortifications of
Gibraltar. It will tend so much to raise the
character of England for generosity and mag-
nanimity ! However, the matter may really stand
in respect of that question of barter, there can be no
doubt of it that Mr. GOLDWIN SMITH'S at one time
flouted propo.itiors for the disintegration, as we
have called it, of the British Empire, are looking
up. The lonian Islands have gone by the board.
We, nearly five years ago, cut them loose
and allowed them to drift over to Greece. Gibraltar
may follow—drifting in that case back again into the
possession of Spain. Could notwe get rid of Canada,
while we are about it—entreating the United Statesto
absorb the two Canadas, and Nova Scotia, and New
Brunswick, and all the rest of them, into their domi-
nions? Australia might be delivered over to itself.
India might be given back to its own native rulers.
There is no use doing these things by halves. Let us
take heart of grace, now that we are so inclined to strip
ourselves of one colony after another --do by all means
let us take heart of grace and do the thing thoroughly.
The British Empire, M. LEDRU ROLLIN wrote of
several years ago as in its decadence. Let us justify
his assertions. Non-intervention is all the rage now
in diplomacy—let us supplement it with the system
sketched out by the wonderfully patriotic genius of Mr
GOLDWIN SMITH : the system, by a careful adoption of
which, by the careful carrying out of which, this vast
and heroic empire may effectually be broken up and
scattered—England shrinking back into herself and
returning, as we might then have reason to hope, to
a diet of acorns and a substitution of woad, for
the new fangled raiments at present in vogue among
the degenerate descendants of the subjects—not of
VICTORIA, but—of some earlier Queen even than
BOADECIA.

IT has been proposed that a conference of the Great
Powers should be held for the purpose of settling the
dispute which has sprung up between Turkey and
Greece ; and it is just possible that such an attempt
might be attended with success. It is true that
this remedy is not popular in Europe, and past
experience is not of a kind to promote confi-
dence in it. Conference projects have generally
come to nothing, or have been attended with disas-
trous results in the end. To the deliberations at
Vienna in 1815, to the distribution of territory
regardless of the nationality of its inhabitants,
may be attributed many of the evils that
have since befallen Europe. A general unhinging
of diplomatic relations was the effect of the rejection
of the French Emperor's proposal in 1863. And the
imperfect settlement which followed the Crimean
war has done not a little to aggravate the troubles
which now threaten to culminate in hostilities.
On the other hand, the London Conference
of last year was decidedly successful. It
averted a war the imminence of which has since
been established by the most abundant testimony.
The issue of the Luxemburg question went far to
prove that a conference is a hopeful resource when
the objects of negotiation are well defined and
limited in number ; the failure of previous
meetings may not unreasonably be ascribed to
the comple:.ity of the business which was under-
taken. In this case the chances of successful delibera-
tion are greatly increased by the fact that the
proposal has been put forward at once by two, if not
three, of the greatest continental States. It
emanated, in the first instance, from Russia and
Prussia, neither of which has hitherto exhibited any
great predilection for international juries. Then we are
assured, on very trustworthy information from Paris,
that the new French Foreign Minister was about to
signalise his advent to office by the same project as
that which has been put forth but a day or two in
advance by the Northern Powers. The telegrams
from the various Courts must ahnost have crossed each
other on the way. The proposition, coming from
Russia and Prussia only, would have been deserving
of consideration; but when made with the concurrence
of three sovereigns who hold very different views on
the Eastern question, it assumes the character of a
great negotiation, which must command the respect,
.if it does not gain the agreement, of the other
Powers.

It cannot, however, be overlooked that whilst a
conference on the Eastern question generally would
be attended by difficulties all but insuperable, a con-
ference intended to settle only the present quarrel is
not without serious objections. The mere proposal
of such an expedient shews that the Powers are much
at variance respecting this dispute. The culpability
of Greece is so cicar, that if the arbitrators of
Europe had been actuated by no personal interests,
decision must have been already given in favour of
the Porte. Ordinary negotiation could end in but
one of two ways : either the disputants would be left
to settle their own quarrel, or the judicial award
must be against the aggressor. The Powers decided
to prevent war, and it is not a hopeful circum-
stance that, after the interference had taken place,
the Powers could not agree to condemn the breach of
international law committed by Greece. The result
points to the conclusion that Russia hopes to get
better terms for her ally. The jackal has not unfaith-
fully done the work of the lion, and is to be rewarded
by support. The Conference might decide in favour
of plain justice ; the counsel of Russia might
be outweighted by the other Powers ; but it is not
surprising that Turkey has declined to run the risk,
and views the project with disfavour. To the Porte,
the quarter in which the initiative has been taken is
anything but friendly. Moreover, the demands of
the Ottoman Government, though numerous and
stringent, are confined entirely to the cessa-
tion of the hostile proceedings of the Greeks;
they do not involve any question of nationality.
Greece is asked only to abandon carrying on
indirect war against Turkey, not to abandon
" the grand idea " of an Hellenic Empire. Why,
then, should the common law of nations be
inapplicable to this case, and the chancery
of a conference be necessary ? It is only
the desire to avoid a war which can ensure
the success of an expedient which ought not
to be required. If the object of the Conference be
limited to the ultimatum of Turkey or kindred
questions, the evident desire of the Powers to pre-
vent hostilities may have a beneficial issue; but it is
clear that an error has been made in interfering
with this quarrel without a fixed plan of action.

'ee o'clock.—The market

LATEST INTELL MENGE.

(REUTER'S TELEGRAMS.)

THE REVOLUTION IN SPAIN

MADRID, Dec. 24.

The journals publish a manifesto from the Duke
of Montpensier, dated Lisbon, the 19th instant.
The Duke explains the purpose of his recent
journey to Spain, which he justifies on the plea
that ho was anxious as a citizen to exercise his
right to offer, as in duty bound, his services to
his country as a soldier, in order to aid in its de-
fence against an outbreak which, he believed, had
been instigated by the Reactionary party. He
simply intended to serve as a combatant, and gave
no preliminary official notice of his step, as it was
his intention to throw off his incognito so soon
as he should have reached the scene of contest.
Upo❑ his arrival at Cordova he discovered that
the true aim of the insurrection was not of a Re-
actionary character, and he returned to Portugal.
The letter declares untrue certain accusations
which had been raised against him, and pro-
ceeds to recall the fact that he wished to have
taken part in the war against Morocco, as could
be proved from official documents. Further, that
he and his consort, the Infanta, had unceasingly
endeavoured to induce the late Queen Isabella, in
1859 and in 1866, to follow a liberal policy—efforts
which unfortunately had been unavailing. He re-
spects the principle of universal suffrage as the
source of the legitimate claim of a nation to share
the political administration of a free country. The
Duke says that, notwithstanding the fact that he
himself is a devoted Catholic, he wishes that
every one in Spain should worship God according
to the promptings of his conscience, with as much
liberty as is enjoyed by Spanish residents in London,
Edinburgh, or Geneva.

The letter concludes with the assurance that the
writer is not influenced by ambition ; that, in fact,
he covets nothing, save once more to belong to
Spain, the new Spain of liberty.

GIBRALTAR, Dec. 21.
has been appointed Governor of the island of Do-

minica.
On the 17th Lady Aire), presented the 28th Re-
giment with new colours.
The British bark Dunsandale struck on the rocks
off Tarifa. She was towed here in an a leaky state
to exchange cargo an repair.
Exchange on London, 484 9 ; Paris, 5 19.
SUEZ, Dec. 25.
The Peninsular and Oriental Company's steamer
Sumaha, from Bomay, 12th inst., arrived at 7 a.m.
to-day.
Mr. Freeling, the Colonial Secretary at Gibraltar,

AMERICA.

NEW YORK, Dec. 25.

According to Mr. Adam Moffatt's Report the
receipts of cotton at American ports up to Thurs-
day evening were 80,000 bales. Since the Ist of
September, 970,000. Shipments to England 25,000
bales ; to France, 12,000 bales ; to the Continent,
6,000 bales. Total export to date, 470,000 bales.
Stock, 300,000 bales. Market steady. Middling
upland, 9 11-16 cost and freight per steamer,

WASHINGTON, Dec. 25.

President Johnston bas issued a proclamation
granting an unconditional pardon to all participants
in the rebellion, with restoration of all rights, pri-
vileges, and immunities under the Constitution,
and laws enacted in pursuance thereof.
Whelan has been respited until the Ist of Feb-
ruary.

NEW YORK, Dec. 24.

The Inman steamers City of London and City of
Cork arrived out to-day, all well, and the North
German Lloyd steamer Berlin at nine p.m. yes-
terday.

CORRESPONDENCE FROM PARIS.

(FROM OUR OWN CORRESPONDENT.)

PARIS, FRIDAY, December 25.

Sir George Grey's proposition to give up Gibraltar to
Spain in exchange for Ceuta, finds no favour here. I
cannot perceive that the French are particularly proud of
their empire in North Africa, but they certainly do not
desire to have the übiquitous Englishman as a
neighbour. Ceuta is on Moorish ground, and its
acquisition by England would, beyond doubt, speedily be
followed by accessions of African territory. It would
agglomerate to us, whether wo wanted it or not, and we
should soon have French ground for our boundary. This
is objected to here. The French are content with the
stationary Spaniard, and do not desire to exchange him
for the Englishman.
Olozaga has at length been received by the Emperor,
who has doubtless found it necessary to counteract the
natural impressiDn of his visit to the Queen at the Pavillon
Rohan. The reception is important, for though the Em-
peror retains the friendship of the Queen, he thus fully
acquiesces in her downfall. The Spanish Ambassador
here has found leisure to send a despatch to Spain de-
claring that the present state of things cannot last for a
month ; the Carlists and Republicans must be put down,
and the Monarchy declared at once. This document has
not met with a very favourable reception.
The illness of M. de Moustier arose in the first place

Li om an attack of acute influenza, which he thought to
cure by the air and hunting of- Compiegne. He
returned to_'iris, however, and immediately set to
work upon the Eastern question, which then began
to assume an unpromising aspect. He was up night
and day, and speedily aggravated his disorder to such an
extent that he is now in great danger. The Memorial
Diplomatique says his malady has become complicated by
a disease of the heart, the symptoms of which cause
serious uneasiness to his physicians. " Three days ago the
upper part of his body was swelling in an alarming
manner ; happily, the night before last an improvement
took place in the state of the patient, so as to dis-
sipate the fears which had been inspired by the crisis,
which had arrived at its maximum ; the Marquis de
Moustier will not, however, be able to leave the apart-
ments at the Ministry of Foreign Affairs before the end of
the year."
That old nuisance, the imaginary Customs union
between Belgium and France, has been revived.
Several journals have stated that the French Minister
at Brussels has made overtures to the Belgian
Government, and has been refused. The Pays thinks itself
called upon to deny these rumours. The French official
papers are unexampled for the persistence with which they
deny even the most absurd statements which do not
happen to be palatable to Imperial tastes or favourable
to Imperial views.
The press prosecution list numbers only three journals
and five individuals to-day. The editor of the Emancipa•
tion, of Toulouse, and a contributor to that paper, have
been fined £2O each for an offensive article on the
coup d'etat ; the editor and printer of the Demerits
have been fined and imprisoned for publish'ng
political matter without caution-money ; and the Palais
has been threatened, but let off, for language insulting to
the secret police.
The capacity of the crinoline as a medium for smuggling
has again been called into requisition on behalf of the
Lanterne. In the Ardennes department a bookseller and
four women have been prosecuted for introducing the
objectionable print, and some others, into France. The
accused had been searched on arriving from Belgium,
when the women were found to have 1,886 copies
of the Lanterne, and ninety-eight obscene engrav-
ings, sewed up in their crinolines. They said
that they had been paid thirty francs and
the cost of their journey to come from Brussels into
France, but were ignorant as to the nature of the articles
which they were smuggling, as the crinolines had been
given to them prepared beforehand to put on. They
received a light sentence, though it seems odd that this
plea should succeed. " Prepared" crinolines are not
usually selected as Christmas boxes. The bookseller,
however, was visited severely—eight months' imprison-
ment and a fine of £4O.
Prince Napoleon has written a letter to Captain Gustav
Lambert, who is about to undertake an expedition to the
North Pole. After pointing out the advantages of private
action in such undertakings, the Prince announces that he
forwards 2400 towarls the expenses of the undertaking.
Another inundation of the Rhone and Saone is to be
feared. The waters of both streams have risen rapidly.

To-day the Bourse and all the public offices are closed.

THE WEATHER TABLE.-THIS DAY.

-4-
METEOROLOGICAL RETORTS.

Extreme Sea
Saturday, I F. 0
Dec. 26, B. T. W. Ito P. W R. to
8 a.m. 1, l2
--9
Nairn
Aberdeen
Leith
Shields
Scarborough 29•42 r. 40 (40 W. 1 2 Y.N.W. c.o. 007 2
Yarmouth 29•41r. 41 41 .N.W. 3 4 W.S.W. c.m 3
Helder
Cuz haven
Skudesnves
Ardrossan 129•38 r. 43 ,40 S.W. 3 2 r. o.c. o'os 2
Green castle 29 26f. 39 j3B S.S.W. 4 6 N.N.W. e.ro 0'36
Holyhead
Liverpool 29 49 44 143 W. 3 3 S.W. r.o. 0'29 2
Valentia 29•54 f. 45 44 S.S.W. 7 8 N.N.W. c.hr 0'22 7
Cape Clear 29'37f. 45 j 43 W.S.W. 9 7 N. e.r. 614 5
Roches rt. 29•60 f. 44, 43 I W. 4 6 N.W. C. 3
Penzance
Plymouth
Weymouth
Portsmouth 29"67r. 43 j4l W. 5 5 W.N.W. c. I'ls 4
London I'9 56r. 41 39 W. 3 4 IV. r.c. o'l9
UpeGrlsNez 29"52r. 46 41 IV. 8 7 W. 0. o'ol 5
Brest
L'Orient 29'Blr. 46 44 W.N.IV. 5 5 W.N.IV. c. 4
Roch efort 29'96r. 46 44 I W. 5 7 W. c. 015 4
Biarritz
Corunna —
Brussels —
Paris . .
Strasbourg —
Toulon
Heart's n-
tent (9 a.m.
local time)

SPECIAL PAYMENTS.

A return to specie payments is the subject ex-
citing most attention just now iu the United States;
and among the many articles in which this question
is discussed one of more than usual interest ap-
peared in the Nation of the 10th inst. Its object
was to expose the fallacy generally held, that the
Government had but to will it to effect it on a fixed
date using the gold balance in the Treasury for the
purpose. The writer goes over all the ground, and
shows conclusively how difficult the achievement
will be, requiring careful attention and no light
national effort for its success, while any crude attempt
can but end in irremediable confusion and ultimate
disaster. Before we discuss Mr. M‘Cunnocit's in-
teresting and exhaustive Report, it is desirable to
enumerate the more obvious of these difficulties.
The .Nation says specie payment means the redemp-
tion in gold of a promise to pay gold ; the redemp-
tion in specie of a promise to pay specie ; the pro-
mise being necessary before there can be a specie
payment in a sense applicable to national finance.
Previous to 1857 specie payments prevailed in the
United States, but in October of that year, owing
to an extraordinary efflux of specie at a time
when more than usual was required at home,
a financial disturbance took place, and the
banks, which had issued many promises to pay in
coin on demand, failed to redeem these promises,
and suspended specie payments. The public who
held these obligations, instead of plunging the
banks into bankruptcy, by tacit consent agreed to
wait, and in the summer of 1858 these banks an-
nounced that they were prepared to redeem in spe-
cie, and soon after specie payments were resumed
throughout the country. la 1860 the banks were
again compelled to suspend specie payments. For
some time their unredeemed promises were held by
the public, and eventually redeemed, but not in
specie. Congress passed the Legal Tender Act,
which made greenbacks a legal tender for every
form of debt. This was an irredeemable currency
—three hundred and sixty millions being issued in
notes of one dollar and upwards, and thirty millions
in fractional currency. Paper such as this differed
only from the Five-Twenty and Ten-Forty Bonds
in bearing no interest, in not being payable at a
specified time, and in being irredemab]e and in pos-
sessing the peculiar value of being a legal tender
for debt in the United States. The banks, like all
other debtors, grasped the opportunity to withdraw
their notes, paying for them in this depre-
ciated currency, so that gradually the promises
to pay in specie were cancelled and disappeared,
leaving no trace. There is not then in the United
States, according to this writer, any promises to
redeem in specie ; nor are there people to ask for
the fulfilment of such obligation, nor if there were is
there anybody on whom to make it. Hence the United
States cannot be said to have suspended specie pay-
ment, as did England from 1797 to 1823, or as did
the United States from 1857 to 1858, and therefore
the position now differs from that prior to 1861.
This fact is generally overlooked, and without un-
derstanding the nature of the financial disease a
remcdy cannot be devised. The writer believes the
Legal-Tender currency to be a far worse financial
evil than suspension, and much more difficult to
deal with. It is shown that the large cash balance
on band on which so much reliance is placed for
resumption is not in truth available. On Novem-
ber 1 the nominal cash balance was $114,000,000.
Of this $27,000,000 were due for coin interest,
$10,000,000 for overdue debt not presented for
payment, nearly $20,000,000 for coin certificates,
and $58,000,000f0r three per cent. loan certificates
virtually payable on demand, which more than
absorbs the whole sum. If there be a surplus in
the revenue it could be employed in redeeming and
cancelling greenbacks, but such a surplus must
always be problematical,and the debt of the country,
according to the official statement, had increased
$36,000,000 by Nov., 1868, over the same date of
the previous year. That the Government expendi-
ture has been materially reduced is true ; that the
reform in the Civil Service, and the check likely to
be administered to corruption, will improve the
financial position is probable ; but in dealing with
the dry material fact we cannot assume what is not
only problematical but against the experience of the
year just elapsed. There was in the Treasury, Nov.
1, $103,000,000 in gold; and it is on such a balance
that so many mainly rely for a return to specie pay-
ment. Nearly $18,000,000 of it, however, belong
to depositors, $27,000,000 were due for interest, of
which another $25,000,000 had accrued, making with
other liabilities $72,000,000, which the Secretary could
not touch, leaving only $31,000,000 for the purpose,
which is the largest amount available for the trial
of the experiment. The figures, then, would be
$31,000,000 in gold to redeem $390,000,000 in
paper ; but what the advocates of the trial assert is
that an exhaustive demand for the exchange would
not be made. We hold with them so far, that
people would not rush to change their paper
if its volume had previously been considerably de-
creased and the value nearly equalized with gold ;
but we have to deal with the case as it stands,
and there can be little doubt that the thirty-
one millions would evaporate in the course of
a few hours if the Government offered to redeem at
par a currency depreciated one-third in value. In
May, 1866, in one week, foreign houses bought of
the Treasury $25,000,000 of gold at a premium in
greenbacks of 30 per cent. Would these houses
repeat the experiment if they could exchange
$31,000,000 greenbacks for gold at par ? The
answer is that a great demand for specie followed
the panic in London, requiring a large gold export,
but a return to specie payment would rapidly raise
United States Securities abroad, and cause a call
for them instead of a return of them, which would

lessen the export of gold from the United • States.
The writer iu the Nation asserts, on the contrary,
that experience has shown whenever gold rapidly
fell, in America, bonds were returned from Europe
—and this he maintains will again be the effect.
We think that a return to specie payment will ma-
terially check the import of luxuries, and tend
rapidly to equalize the balanc3 of trade ; for it
has the reverse effect of a depraved currency,
which induces gambling and extravagance, and
Mr. M'CuLLoca's opinion is strong on this point.
His proposal is to issue a new loan of five hundred
million dollars to enable the Government to return
to specie payment, and this is the true solution.
The people have had this depraved currency forced
on them as a loan, and, notwithstanding the argu-
ment of the Nation, we hold that greenbacks are
United States promises to pay coin which, as long as
they remain unredeemed, is a virtual suspension by
the Government of specie payment ; and Secretary
Al‘CuLLocn's proposition seems to amount to this.
The Nation his shown_ how far people are in the
wrong road ; we hupe it will next point out the
right oue—a much more difficult task. It is a
matter, we suppose, of national outlay, and the
groundwork of the errors held on the subject is the
attempt to make bricks without straw—to theorize
on a return to specie payment without specie ; sup-
posing that argument can supply the place of gold
—that writing over the Treasury door the name of
Uncle SAM, and hoisting the Stars and Stripes
over the building, will have the effect of a charm.

At the California Academy of Natural Sciences,
in discussing earthquakes, Dr. Blake inclined strongly to
the terrestrial theory of gaseous eruptions and explosions.
There are usually two waves in an.o;trthqualce—one which
moves vertically directly towards the surface, and
_one
which spreads out horizontally
radiating from the centre. It is the last, undulatory
from this oonrthesurface,
illustrated at Sa'n,
distinctly.the surface
shock, id), does most damage. On Sunday evening,
Oct. 25, these two were very
Francisco. The geographical formation of
nothing to do with the cause, although a shock is trans-
mitted with three times the velocity and severity through
granite or hard rock that it is through sand. Bence it is
safer in this case to " build a house up on the sand "
overlying a solid base. The centre of the recent heavy
chock was probably a few miles to the north of
Hayward's. In this place houses had been moved bodily
from their bases ; one two feet to the southward ; another
near by two feet at right angles to the first, and :Ail
another eighteen inches up a slope in an opposite direc-
tion to the last. All the waves seem to converge toward
the San Ramon Valley, to the north of Hayward's. Dr.
Blake and others are going to continue their investiga-
tions. Uol. Ransom offered the following resolution,
which was not acted upon, but laid over until the next
meeting : —That a committee J. to consist of the Presi-
dent, Gregory Yale and Dr. G. Cooper, be appointed
to collect facts connected with the recent earthquake in
this vicinity, and that they report the results at some
subsequent meeting of the Aeae„em.,-.