LATEST EUROPEAN AND AMERICAN INTELLIGENCE.

Wellington Independent, Volume XVII, Issue 1712, 1 April 1862, Page 5

LATEST EUROPEAN AND AMERICAN INTELLIGENCE.

[from oub own cobrespohdeht.] London, 27th January, 1862. When I last wrote to you, the great question of the day was the impending war with America. Indeed for several weeks, war with the Federal States seemed all but inevitable. The English people had made up their minds for the worst ; and however unwilling they were to enter upon a sanguinary contest with their Transatlantic kinsfolk, they were unanimous in the sentiment that war was the only alternative whereby the national honour and the indefeasible rights of the British flag could be effectually maintained. Accordingly in anticipation of this dire ultima ratio regum, and we may well add Republlcarum que,) a powerful fleet was fitted out in a few days, and from fifteen to twenty thousand picked troops were forwarded without delay to Canada, as being the ground that seemed destined to become the bat-tle-field between our Yankee brethren and ourselves—at least in the first instance. Upon the Americans themselves depended the issue of peace or war. It was hoped that motives of prudence arising out of their present circumstances, if not a sense of justice, would urge them in favour of a pacific solution of the question involved, and that necessity would in the last resource oompel them to make such reparation for the offence committed as should satisfy the outraged honour of the British people. The hope thus indulged — though faint and wavering — was not destined to be disappointed. The American Government yielded at the last moment, and complied with our just demands, by surrendering the Southern Commissioners, Messrs. Mason and Slidell, who have been restored to the protection of the British flag, and who have probably by this time reached Liverpool. They were liberated from prison on the 29th December, — intelligence of which iact reached England on the Bth instant. Peace ii therefore secured for the present ; for which we have, doubtless, to thank the firm attitude of Lord Palinerston's Government, no leas than the vigour and promptitude of its warlike demonstratious. And yet the end was attained without any threats, imperious demands, or exacting conditions on the part of the British Government. Lord Russell's despatch to Lord Lyons was by no means so peremptory as had been supposed. On the contrary, it was couched in the most courteous and conciliating terms, and did not contain a single expression which could wound the susceptibilities of the most sensitive American statesman or citizen. After a brief examination of the facts connected with the outrage on the Trent, Earl Russell expresses his belief that the act was wholly unauthorised by the Government at Washington, and that being a direct violation of the law of nations, and of the rights of neutrals, he hopes th© American Government will make suitable redress by giving up the prisoners. But should Mr. Seward not do so of his own accord, Lord Lyons is instructed to " propose to him ;" that is to say, in other words, he is to aßk the Federal Government to surrender the prisoners— no threat however, being expressed, or necessarily implied by the terms of the demand. This despatch was formally presented to Mr. Seward on Monday, the 33rd of December. The tenor thereof had been communicated to him some time, or four daye previously by Lord Lyons, who wished to save the American Government any humiliation involved in their compliance, with an urgent, howevei courteous, demand. Still the Federal Cabinet did

. not yield until the last moment, and it was only on the 26th of December that the reply of Mr. 1 Seward was communicated to Lord Lyons. This reply— which like all American State papers is ' very lengthy and verbose — as well as the whole ol • the correspondence on both sides touching the Trent affair has since been published, and we are now in a position to form a complete and mature judgment upon the merits of the whole question under the different aspects in which it is viewed by the several parties concerned. From this cor- : respondence it now appears that a ' note " (which, however, haa not the character or authority of a formal despatch), under date of November 30, ad.dressed by Mr. Seward to the American Minister in London, was read by Mr. Adams to Lord Russell on the 18th of December. In this note, Mr. Seward says, that the act of Captain Wilkes was unauthorized, and hopes that the British Government would regard the matter in a friendly temper, as the Federal Government was disposed to do so. This fact, however, was not suffered to transpire by the British Secretary for Foreign Afiairs. Had it been made public it would have tended greatly to mitigate the anxiety which continued to be felt by all classes for more than three weeks after, until the final decision of the American Cabinet reached London. When this " note " appeared therefore, there was a great outcry raised against our own Government for not having made known its contents at an earlier date. But by this time I believe the public are satisfied that Earl Russell acted with proper prudence and discretion in withholding the purport of the note in question. For in point of faot, beyond the impression of a vague sentiment of friendly disposition, the American Government had committed itself to nothing of a definite character in the note in question. The act itself was neither condemned nor repudiated— much less wa« there any talk of a surrender or apology, m that the British Government could attach no possible value to words which might easily be explained away — should the Washington Government be overruled (as seemed at one time very probable) by the clamour of the mob, and to refuse the surrender the captives. Fortunately however, things took a different course, and prudent counsels prevailed. Mr. Seward's despatch is too long to enter into a minute analysis of its contents. It has been regarded as satisfactory in England only in so far as it complied with the demands of the Government. Otherwise it is looked upon as self-contradictory and as laying j down principles which cannot for a moment be admitted or sustained. There is a certain show of argumentative treatment of the subject which is divided into five heads, and the questions are raised : — 1. Were the persons named, " and their supposed despatches, contraband of war ?" 2. Might Captain Wilkes lawfully stop and search the Trent for these contraband persons and despatches ? 3. Did he exercise the right in a proper manner ? 4. Having found the contraband persons on board, and in presumed possession of the contraband despatches, had he a right to capture the persons ? And 5. Did he exercise that right of capture in the manner allowed and recognised by the law of nations ? All these questions are argued separately, and the four first are answered in the affirmative ; but as regard the fifth, Mr. Sewavd saya that Captain Wilkes ought to have taken the Trent into port for condemnation, and that his release of the ship makes a. flaw in his case, of which the British Government had a right to avail itself, and which the American Government must allow. It is therefore simply upon a mere question of form — a technicality— an " oversight " as to the mode of proceeding, and not upon the broad merits of the case, that the Federal Cabinet grounds the justice of our claims, which it says cannot be denied : and accordingly, Mr. Seward promises that the prisoners shall be " cherfully " restored to the protection of the British flag. And not in direct contradiction to the admitted justice of our demands, and in opposition to his own principles and theories as laid down in thia despatch, Mr. Seward does not hesitate to say : — " In coming to my conclusion, I have not forgotten that if the safety of thia Union required the detention of the captured persons, it would be the right and duty of this Government to detain them. But the effectual check and waning proportions of the existing insurrection, as well as the comparative insignificance of the captured persons themselves, happily forbid me from resorting to that defence." From which we clearly perceive that he acted from motives of expediency ; and it is equally obvious that if we had been less prepared for war, or if the Yankees had been able to offer us effectual resistance, the commissioners would never have been surrendered. This is undoubtedly the im- ' pression that prevails in England. Indeed tho American papers admit that they have only yielded to superior force— to coercion in fact ; but that they will never forgive England " for putting on the screw "in their hour of domestic trial, and that the account only stands over for settlement on a future occasion. Thore was a very sorong feeling throughout the Federal States against the surrender of the commissioners, and it was only amongst the mercantile men of New York, Boston and Philadelphia that moderate and pacific counsels prevailed. These men knew full well what a fearful disaster a war with England would entail upon the United States at such a crisis with their finances exhausted, trade stagnant, commerce and credit paralysed, and the Treasury of the country in a state of utter insolvency— leaving out of the question the fact of their having on hand a gigantic Civil War, and that their fleet would be utterly powerless to protect their seaboard or to stand for a single day before our huge iron plated vessels However, all's well that ends well. Peace is preserved for the present, but it is greatly feared that it will not be permanent. Our manufacturers are proving impatient for their supplies of cotton, and the French are suffering still more than ourselves. It is said that the Emperor Napoleon has several times urged the English Government to join him in breaking the blockade, as being utterly ineffective, and therefore by the law of nations not binding upon neutrals. This the British Government has hitherto refused to do. It will I think wait patiently a little longer, so as not to offend the Federal States ; but my impression is that if within three months at the outside, the North do not succeed in gaining some decisive victory over the Southern States, France and England will recognise them, and will at the same time break the blockade and obtain cotton. This may possibly produce a rupture with the North, but lam inclined to think that by reason of its utter exhaustion in a financial point of view, it could not attempt a war with Great Britain and France. An event long foreseen in this country, has at length come to pass, the Federal Government has suspended specie payments, and so have the Banks of New York, and of the other houses and Cities of, the Northern States. This resolution was adopted { at the close of the old year, it was inevitable.! The Federal Government, after having obtained and expended a loan of £24,000,000 (only seven and a half millions of which was subscribed by the public), drawn chiefly from the New York Banks, iouud itself uu sec ; and that while deeply involved to contractors and others it could not obtain another dollar from the banks— which had absolutely refused to advance any further loans. In fact they could not help themselves, and had they too not suspended specie payments they would have been utterly drained out in about two or three weeks; for there had been such a rush for gold, for purposes of •• hoarding" and exportation that in the course of a few days the specie in Hthe in the bank vaults at New York had diminished from 40,000,000 to 25,000,000 dollars, tho latter being the sum on hand at the period of suspension. It is therefore upon inconvertible paper that the Civil War and the other transactions of the Government and of the commercial community will have to be conducted for an indefinite tim» to come in the United States. Tho result may be i imagined. The Federal Government will requiri

-■ £20,000,000 for its immediate wants, all of which . will have to be issued in paper, and then more t and more will follow; and a3 the flood of paper i continues to deluge the country so will it con- ' tinue to become depreciated, while the credit of i the Government will decline, the nominal value i of provisions still rise in the market, and gold, it i is expected, will in six months time, should the war continue, be at a premium of 50 per cent. It is already at a premium of 5 per cent., which figure will be doubled within anoeher month. And while the Country is thus becoming bankrupt the revenue has no adequate proportion to ;the expenditure. At the outside it ia not more than a sixth of the outlay. All has hitherto been done by means of loans and Treasury demand notes, now no longer convertible. Congress it is said by the New York journals must at once impose taxes so as to produce a revenue of at least 200,000,000 dollars, or 40 millions sterling ; but ' 1 do not think it will succeed in the attempt. The Americans have always been impatient of taxation : their revenue has been chiefly raised from Custom's duties, and they will scarcely submit to the heavy burden which they are now called upon to bear. They are willing enough to transmit the load of their debts and liabilities to their posterity, to be liquidated if possible at some future and indefinite period ; but at present they do not seem inclined to raise even sufficient to pay for tho interest of their public loans. In short nothing will save the country from impending ruin, national bankruptcy and eventual repudiation, but immediate peace with the South. In my letter of August last 1 expressed an opinion that the war could not last a twelvemonth longer for want of funds. And I find from a recent letter of Mr. Russell, the Times, correspondent, that he is of opinion that the war must come to a conclusion within the next six mouths for the reason above stated. While speaking of Mr. Russell, I must observe that no letters have been received from him for the last fortnight, and it ia rumoured that he is laid up at Washington with an attack of typhoid fever. However, to conclude this epitome of American affairs, I must sum up by saying that as regards the Civil War, matters are in much the same condition as when I last wrote. We are still waiting for the second great battle which has been expected every day for the last five months. As usual some skirmishes which have taken place between the belligerents have been magnified into " battles " in which victory has been claimed by the Federals — however no value is to be attached to such petty engagements. They are a mere wanton waste of blood, and decide nothing. Doubtless when General M'Clellan makes a move it will be to some better purpose than the Bull's Run affair, for he is taking his time to drill, discipline and thoroughly organise the troeps under his command ; while, if the accounts contained in some of the Richmond papers be true, the Confederate army on the Potomac is suffering fearfully from relaxed discipline, want of drill and exercise, from listlessness and ennui, from dirt, drunkenness, gambling, insubordination,— in fact from all the miseries and vjces incidental to camp life. These facts were put forward prominently in a Richmond paper some few weeks since ; and if they can only be relied upon (which I doubt) General M'Clellan will be able to make short work of the Southern campaign when once he gets into motion. Very severe strictures have been made here in England and indeed throughout commercial Europe, upon the United States Government, for having caused the harbours of Charleston and Savannah to be closed up, or as it is said " destroyed," by means of a '-stone blockade" consisting of large whalers filled with granite and sunk at the entrance of the harbors before named. This vindictive measure, whichcannot but prejudice the interests of all commercial States, has called forth more than one sharp remonstrance on the part of the Governments of England and France ; and I should not at all wonder if this act should eventually become a groundwork, if not a justification for joint and decisive measures on the part of the British and French Government ; and they will be promptly supported in any such course by the public opinion of this country, which is daily and hourly ripening in favour of European intervention, to put an end to the present desperate complications between the Federal and the Confederate States of America. Such then is what may be termed a brief epitome of the actual position of affairs in America, and of out relationship with that country. A deep and painful sensation has recently been produced in England in consequence of an appalling colliery accident, which took place at the Hartley New Pit, near Blyth, North Shields, whereby 215 lives have been lost. It appears that on Thursday morning the 16th inst., as a number of men were being drawn up in the cage by means of the winding machine, the beam of the engine of 400 horse power which w eighed forty tons, and which overhung the shaft, broke and fell down the pit, meeting in its course the cage which it shattered to pieces, killing some of its occupants. The beam struck the top of the brattice work with such violence that the whole of the massive wood en and iron frame work was hurled to the bottom of tho' mine, producing such an obstruction in the shaft that it was found utterly impracticable to liberate the 215 men and boys who were in the mine, until death by suffocation put an end to their sufferings. Relays of men were kept continually at work night and day endeavouring to remove the immense mass of rubbish and debris that choked up the shaft, and it was hoped at first that their efforts would be attended with success; but this hope was vaiu. When they succeeded after three or four days in driving a hole through the obstruction, the men at work were overpowered by a stifling gas which rushed through the aperture, and came up through the timber like •• blue smoke." This gas was carbonic oxide, very volatile and very deadly in its effects. It prevented the men from pursuing their operations, and it was only on Wednesday last that they succeeded in reaching the subteranean chambers where so many human beings were immured alive. They were all dead having succumbed to the foul air genarated by the fumes. It is said that the poor fellows were heard moving about making efforts to liberate themselves, as late as Saturday and Sunday, that is to say, on the fourth day of their fearful imprisonment. But flesh and blood could not hold out against the deadly gas for which there was no vent until the obstruction in Uie shaft was cleared away. And then all was too late. Death had done its work. The bodiei were found at the bottom of the shaft— frienda lying down side by side clasping each others handa, while the young boys were found in the arms of their fathers and elder brothers. A great sensation has been created throughout the country by this sad accident, and a corresponding amount of active sympathy has been evoked in favour of the unhappy widows and orphans of the poor miners. Already a largo subscription has been set on foot, to which her Majesty has contributed i'2oo, and which will amount to several thousands of pounds. It would appear that the accident was caused by some flaw in the beam of the engine, which was said to be " honeycombed " to a great extent. It is 6aid to have had no parallel in our own day. The home news of the present month iB not important. The weather has been unusually fine aud mild. Up to tho present moment we have only had about four days' frost and one days' snow. Coals which this time twelve mounts were sold at 86s to 40s per ton are now only 24s ; and the price of coals ie generally the beßt guage of the severity or mildness of the season. Still on the whole trade ia very dull, especially in the manufacturing districts, where it is estimated that 27,000 operatives are out of employment, and 167,000 working short time. This of course is owing to the American war, and matters would be still worsa were it not for the beneficial results arising from the French Treaty, which came into operation October last, and by which our export trade with France has been wonderfully stimulated and improved. Indeed this Treaty came to our aid most opportunely just as our exports to the Southern States of America had entirely fallen off, and the imports of the

North had materially diminished. All things considered, however, the wool trade has maintained its position better than could have been expected at a period of such stagnation— prices still keeps up tolerably well — especially in short wools, the latest quotations for which have been la 8d to Is 10 jd per lb. Fine wools, however, are not much in demand at the present moment. Steadniss, however, is the characterestic of the market, and there is a tendency upwards. As regards cotton, first class qualities are now realising lid and 12d per lb. — the same quality having been sold a twelvemonth since at from 6d to 7d per lb. There are at present about 700,000 bales still remaining in stock at Liverpool, but they will become rapidly diminished by the quantities taken for France and { for re-exportation to the Federal States of America, I which have not been so successful as they expected in procuring cotton from the Southern seaboard I States. A company is in the course of formation ' for buying cotton in India and sending it to this country ; and a Land Purchase Company is also being formed for speculation in Indian Waste Lands, which can be bought up at 5s for uncleared and 10s for cleared land per acre. This will eventually work a complete revolution in India, and will cause emigration to that country before long. It is said that the capital embarkad has yielded such favourable returns to tea, cotton, and indigo growers that the North-western Provinces will shorly be colonized by enterpriziug young men possessed of capital. i Up to the present moment the discovery of the gold fields in New Zealand has not produced any great sensation in England, and indeed the subjeot has-been very little talked about at all. The adventurous bands of ;diggers who rushed off to Australia in 52, 53, and 54, hoping to realize rapid fortunes, have still some vivid recollection of the disappointments which they wore doomed to en-, dure ; and they will therefore be less anxious for the future to try their luck in other quarters. Still if accounts continue favourable until the ensuing summer you may expect a slight rush to the Otago fields from this quarter of the world. The latest news from the colony, which reached London overland on the 13th, and via Southampton on the 22nd instant, i 3 very barren. There is in fact nothing to be noted. People here are waiting for the developement of Sir George Grey's plans, and it is satisfactory to find that he has already commenced operations by going amongst the native tribes in order to learn their views — their wishes, and their grievances. All wish him God speed, and a peaceful issue to his labours. The affairs of the Taranaka Steel Company are to be wound up under the provisions of the Bankruptcy Act — " three-fourths of the capital having been lost, or having become unavailable within the intent and meaning of the Joint^ Stock Campanies Act." I must not omit to mention that a very influential meeting of Australian and New Zealand colonists now resident in London, was held in the London .Tavern on the 3rd instant, for the purpose of presenting an address of condolence to the Queen on the death of the Prince Consort; The meeting was numerously attended aud the chair was^taken by Sir W. Burton. After several resolutions were moved a committee was formed to draw up the address, consisting of Sir Charles Clifford, Sir James Palmer, Sir Daniel Cooper, Sir J. Dickinson, Mr. Marsh, M.P., Mr. Childers, M.P,, Captain Bagot, Mr. J. A. Youl, and Mr. L. Mackinnon, I enclose the address herewith, together with the names of the principal colonists who attended the meeting : — " Sir Danioll Cooper, late Speakerof the House of Assembly of New South Wales ; Sir John Dickinson, one of the Judges of the Supreme Court of New South Wales; Mr. Justice Therry; M. Marsh, Esq., M.P. ; James A.-Youl, Esq., chairman of the Australian Association ; L. Mackinnon, honorary secretary of the Australian Association ; Captain Bagot, P. J. Smith, Esq. ; Messrs. Ducroz, J,. Morrison, Dalgetty, J. F. Forster, John i Airey, Skene Craig, John Gilchrist, Cape, M'Combie, Marshall, Bowden, Miller, Paton, Barnard, Josephs, Otley, Hislop, Joseph Harrold, Charles G.JPlatts, George Green, D. Power, Alex. Lawson, Venour, J. Alger, Alex. Macfarlane, Farmer, D. P. MeEwen, G. Witt, A. B. Thompson, D. H. Cleve.Vas. Curtis, Chaa. Stephens, J. Hughes, J. 0. R. Looker, Malcolm, Reynolds, Captain Cole, Messrs. D. Larnach, T, B. Rosseter, Nowland, Dr. A'Beckett, A. W. Bell, Robert Russell, Messrs. Airey, Goode, John Gilchrist, Labilliere, Pharazyn, Benjamin Boote, W. Fawdington, C. C. Macdonald, A. C. Daugar, James Palmer." " ' Most Gracious Sovereign — We, your Majesty's loyal and dutiful subjects belonging to the colonies of Australia and New Zealand, now resident in England, assembled in public meeting, in the city of London, desire to express to your Majesty our earnest and sincere sympathy! and condolence under the afflicting bereavement with which Almighty God has recently visited your Majesty, your illustrious family, and your people. That, independently of the deep sorrow with which, as subjects of your Majesty's imperial crown, we deplore the early death of so great, so good, so wise, and so useful a man as his late Royal Highness the Prince Consort, we have the melancholy duty to perform of recording our especial gratitude for, and high appreciation of the great personal interest which his Royal Highness always manifested in the advancement and prosperity of those portions of your Majesty's dominions with which we are most immediately connected. In conclusion, we devoutly pray that the Father of all mercies may sustain and console your Majeßty in the midat of your severe affliction, and that your Majesty may be cheered by the thought, and comforted by the knowledge, that the tears of a sorrowing empire, from the humblest cottage to the stateliest mansion in your Majesty's world-wide dominions, freely mingle with those of your Majesty and the Royal Family in mourning the loss of a Prince whose virtuous and exemplary career has shed a lustre on your Majesty's reign, and left an impress on the nation at large of high precept and example which will descend with elevating effect upon generations yet unborn.' " During the past month thousands of addresses of condolence have been forwarded to her Majesty by corporate and other bodies belonging to all classes and ranks of her subjects. And meetings have been held in London, Manchester and elsewhere, in order to raise subscriptions towards suitable memorials, in honor of the deceased Prince. The meeting in London was held at the Mansion House and was called by the Lord Mayor, and the result has already been i*15.000 in that quarter alone. Manchester has shown great spirit and generosity, but I am not aware what the amount raised there has been. The public are still in deep mourning, which, however will be discontinued after the 9th of next month. " The Great Wyndham case" is still before the public. It has excited an unusual amount of public attention and curiosity, in consequence of the peculiar circumstances of the case, and of the great length which the trial has attained. It may be described in a few words. The subject of the investigation is a young gentleman named Wyndham, formerly a Ward in Chancery, and the heir to considerable estates in Norfolk which will eventually realise some £ 15,000 a year. He was educated at Eton, and attained his majority in Autumn last. The first use which he made of his liberty was to marry a lady of great personal attraction, but of somewhat doubtful reputation, who had previously been living with a gentleman who allowed her £2000 a year. Young Wydham Vecame desperately enamoured of this person, and made her an offer of marriage which was accepted upon condition that .£ISOO a year should be settled upon the lady, Miss Willoughby, for life. Tho settlement was made, the •« happy pair" were married, and the young husband presented his bride with Jewels to the extent, it is said, of twelve or fourteen thousand pounds. Shortly after, however, they quarrelled and separated. Whereupon the friends and relations — to wit the uncles, aunts, and cousins of the young man who was an only child— resolved to bring him before a Lunacy Commission, as being an imbecile, who was unable to manage hia own affairs, and who ,

was only fit for a Lunatic Asylum. The principal acting in the case is General Wyndhara, of Crimean celebrity, young Wyndham's guardian, and to whose family the fTyndliam estates would revert in the event of this young man dying without issna. The case has now been before Mr. Commissioner Warren for upwards of 30 day?, and haa not yet been concluded. All the leading counsel ot the English Bar have been engaged on both sides, and it is calculated that the expenaes of the trial will not amount to less than £60,000, all to come out of the estates. The opinion of the public is that there were no good grounds whatever for bringing the case into Court; and that although Mr. Wyndham has been exceedingly wild, reck* less, and extravagant in his habits, owing to a bad education and the neglect of his aristocratic friends and connexions, among whom, are I believe, Lord Alfred Hervey and the Marquis of Bristol— yet that the man is no more mad or imbecile than thousands of young men of his age and position. The Jury have not yet returned their verdict, but it is expected that it will be in favor of the young man. The relatives have incurred great odium for their heartless conduct, and they have received a terrible castigation from the Bar, and from the Press. The speech of Sir Hugh Cairns wh<s was retained for the defence of the supposed lunatic, is especially worthy of perusal : it is a masterpiece of forensic eloquence. Upwards of 3UO witnesses were examined on both sides and their evidence, to say the least, was of- the most conflicting character. Parliament will open on the 6th of February. It is supposed the Chancellor of the Exchequer will be obliged to reimpose an additional lfc or 2 in the pound in. the way of Income Tax, in order to make up for the expenditure caused by the recent preparations for the threatened war with America, and which amounts, it is said, to three or four millions sterling. Several of our county members have been addressing their constituents during the last month, and the burthen of all their speeches was the American complication. Mr. Eoebuck also delivered a highly interesting lecture to a Literary Society at Salisbury, on the subject oi popular education, which I specially commend to the notice and perusal of your readers. It is the most sensible, pithy, pointed and practical address that has been delivered for a long time. I intended to send you a •' supplementary letter" upon the state of continental aflaird, but want of time prevents my doing so. All is quiet at present. The French Chambers opens this day, and should there be anything in the Emperor's speech I will subjoin it from the Evening Telegram. Mr. Fould has presented his Budget. The army is to be reduced to 400,000 infantry and 87,000 horse, but this reduction will not ba effected before the end of 1862. Additional taxes are proposed upon salt, sugar, horses, carriages, stamps, registration, &c, which it is hoped will prevent any deficit for the next year.