EUROPEAN INTELLIGENCE.

Wellington Independent, Volume XVII, Issue 1715, 11 April 1862, Page 3

EUROPEAN INTELLIGENCE.

[from our iondon correspondent.] London, 26th December, 1861. The news which you will receive by the present mail is of the most gloomy and melancholy cha^ racter. All England is arrayed in the garb of mourning. The hand of death has been stretched forth in our midst, and has seized the Prince Consort in its'iey fingers. It is not too much to say that this sad event— sudden and unexpected —has filled the entire nation with inexpressible grief — I might say anguish. It is regarded as a great publio calamity, as witnessed by the universal sorrow and lamentation which it has called forth throughout' England, and indeed throughout Europe. The Prince was taken away from the land of his adoption, which he loved so well, from his family and his cherished wife the Queen — in the very prime and pride of manhood. He had barely completed his forty second year ; and, as he had always enjoyed good health, it ' was hoped that he would survive to a good old age. to carry out with more complete success those labors of high (enterprise and great public utility, which, he had inaugurated many years since— in advancing, promoting, and fostering Arts, Science, and Industry in thia country, and with which labours the name of Prince Albert will for ever be identified in the annals of England. Now that he is gone from us, we fully realise his loss ; and, the voice of England, speaking through the press, has not been backward in acknowledging the great merits and virtues of the deceased Prince, and the pre-eminent services which he rendered to the country at large. As well in his public as in his domestic capacity he had conciliated the good will, the esteem, the admiration and the love of all classes of the community. He was a model father and a model husband ; and while excluded, by his position, from pursuing the of a statesman, or a politician, he was, jievertheless, enabled by his great experience, and by his intimate knowledge of European politics, to assist and guide the Queen with his wise counsels. This delicate task he performed with a prudence and discretion (though not wholly free perhaps from a. certain bias, for it is supposed that he always entertained Austrian tendencies) which disarmed cavil, and which begat the confidence of those statesmen with whom he was brought into .contact in the Cabinet or in the Council, where for many years he had held a seat as the husband and adviser of the Queen, — albeit his position thera was considered somewhat abnormal — if not unconstitutional. The Prince Consort died of an

&UAdk 6f I't'pkcnd fowr, oh Saturday flight* thd 14th' hist., && 10 minutes to li o'elodk, and fit midnight tlie great bell of St. Paul's, which is only tolled on the occasion of a death in the royal family, proclaimed to the inhabitants of London that the Prince was no more. On the next day, Sunday, the telegraph conveyed the mournful news to nearly all parts of the United Kingdom ; but the first intelligence which many persons had of the event was the circumstance of the Prince's name being omitted from the usual prayers in the Liturgy for the Koyal Family. In many cases the clergy made special allusion to the fact, from the pulpit, and on Sunday last, there was scarcely a pulpit in the Kingdom, regardless of sect or persuasion, in which a funeral sorinon was not delivered. As already stated the public were taken quite unawares, for although it was known that the Prince had been suffering from a severe cold for upwards of a fortnight, yet it was only on the day before his death that the symptoms became at all serious or alarming, and it was not until then that it was thought necessary to send a telegraphic message to the Prince of Wales, who was at Cambridge. The immediate cause of death was congestion of the lungs, brought on by excessive weakness. The Prince himself was said to have had a foreboding of his approaching end for four or five days before his decease, and long before the doctors in attendance could perceive any symptoms of danger. In every sense of the term •* his end was peace." He was tranquil and collected up to the last moment. The Queen, the Prince of Wales and the other children, as well as the numerous attendants of the Prince, all stood around his bed, and to each of them he addressed a few words of consolation, and of each in turn took a parting farewell : some he addressed in French, others in German, and others in English, according to the nationality of each. And thus he continued placidly resigned to the summons of death, in calm and affectionate converse with his children, and with his royal wife — so soon to become a widow — while their mingling tears bedewed his couch — until the lessening voice was hushed, and the spirit had returned to the God who gave it. Surely this was an end worthy of a Christian philosopher — for such was the. Prince Consort in the highest sense of the term. But one drawback was there at that solemn hour, when the Prince was bidding farewell to those whom he held dearest on earth, three of his children were absent from his bedside, namely, the Princess Frederick William of Prussia, Prince Alfred, who is absent in Canada, and Prince Leopold, who has lately been sent to the South of France for the benefit of his health. Doubtless, however, the affectionate father remembered these absent ones, and remembering blessed. The bereaved and widowed Queen is said to have borne this heavy trial and affliction with more than ordinary fortitude. It was greatly feared that her health would give way under this severe shock, seeing how much the death of her mother had previously affected her. However, she seems to have been supported by a sense of the heavy responsibilities of her position, at a most critical juncture of public affairs, when all her powers, as a Sovereign, will be called into operation, and accordingly we find that as soon as the first outburst of grief was over, she called the Prince of Wales and her other children around her and besought them in solemn and affectionate words to give her all the aid and sympathy in their power, to enable her to sustain her heavy loss, and to discharge the duties which she owes her kingdom at the present crisis. That the royal children will respond to the prayer of their bereaved mother cannot be doubted, nor will the sympathies of her subjects at large be wanting to the widowed Sovereign of this kingdom, not figuratively, hut literally, the tears of thousands have been shed for the Prince who is gone Never, perhaps, in the history of this com itry, was grief" for any royal personage so universal, and sincere ; never has the press given vent to such a spontaneous and long-continued outburst of sorrow — deep and unfeigned. Surely in this her hour of affliction, it must be a source of consolation to her Majesty to find all her subjects uniting with her in lamentation over the husband of her youth — the faithful and affectionate spouse — the father of her children — her guide, companion, counsellor, and friend. Ifc would be utterly impossible for me to convey an adequate idea of the profound ; sensation which this melancholy event has produced throughout the length and breadth of the land. All persons, from the highest to the lowest, aeemed to take a personal interest in the happiness and welfare of the royal household, which had become a type and model of all the domestic J virtues. It was well known with what anxious solicitude the deceased Prince had watched over the education of his children, so as to make them worthy of the exalted position which they were destined hereafter to fill. His love, tenderness, and constancy towards the Queen was no less recognised and appreciated ; while the active interest which he had always evinced in every movement which had for its object the moral, social and material progress of this kingdom, was the theme of universal praise. Not to speak in detail of the active part which he took in promoting agricultural, science, the fine arts, education, the improvement of the dwellings of the poor, and army reform, it was to him that we were indebted for the great International Exhibition of 1851 — the antitype and forerunner of numerous other exhibitions, both at home and abroad— of the Crystal Palace at Sydenham, and of the great Exhibition to be inaugurated during the ensuing year. W ithout his initiative and encouragement none of these things would have taken place. The original idea was his, and we all know how he labored to carry it out with a labor of love. If or this work alone we owe him much gratitude ; for it is not too much to say that England hag made more progress in taste, mental cultivation and refinement, and in all that constitutes real civilisation, within the last ten years than it would otherwise have .attained for the next half century. The country feels and knows this instinctively. One has only to look around him to perceive the vast strides which this country has made since J 850. All the useful arts of life have become developed to an extent which is perfectly marvellous, if not incredible. The Schools of Art and Science which have been established all over the United Kingdom in connection with the Great Intertrial Museum at Brompton, owe their origin to Prince Albert. They have already done wonders in the way of diffusing (what was sadly wanted) practical knowledge and good taste throughout the country. Had the life of the Prince been spared for a longer period, he would doubtless in the course of years have brought to raatu> rity many schemes which were only partially developed, for promoting what is now called social science in England. As it was, he was only permitted to sow the seeds of progress, hereafter to blossom and bear fruit for generations yet unborn. As it is, the country at large will miss him for many years to come, and greatly will he be missed at the opening of the Great Exhibition of 1862. True indeed sanguine hopes are entertained that the Prince of Wales, who has now attained the age of manhood, will shortly be able to fill the place which the Prince Consort so worthily occupied, but it cannot be expected that the youthful Prince should possess the varied knowledge and experience combined with the peculiar tastes and^ predilections of his lamented father, who iv addition to his extensive political information as a statesman, was considered to be the most intellectually endowed and accomplished gentleman in Europe. And now that the grave has closed around him, and that the full meed of praise, which, owing perhaps to our English pride, and to the Prince's foreign origin, waa but sparingly bestowed upon him in his life time — now that that praise is no longer withheld, we may truly say that in our generation Englishmen 11 will not look upon his like again." He has won for himself a place of the first rank among the worthies of the land. He has deserved well of England who will cherish his memory to the the latest posterity, His name will adore one of

oils df the brightest pfig&s of Uid history bf tlte nineteenth centilrj 1 , atld rb the promote)! 1 of every good, virtuous and laudable object, he will hereafter share with the Great Queen Victoria the glory of her memorable and distinguisned reign. Well might we apo3trd«lfcize him in the words of tlie Alantuan Board : — " Semper honos nomenquo tuum laudesque mauebuut." It is only left for me to add, that on Monday last the remains of the Prince were committed to their final resting place in the vaults of St. George's Chapel at Windsor. The funeral (a full and interesting account of which is contained in the Times, which I. send you herewith lest it should not reach you through another source) waß private, and was only attended by the members of the household and of the Government and by such of the nobility as had received special invitations. The Prince of Wales followed as chief mourner, and little Prince Arthur was also present ; but the other children as well as the Queen, left Windsor for Oaborne on Thursday last. May God comfort her in her great tribulation, is the fervant prayer which has been uttered by all her loyal and devoted subjects, who evinced their sympathy on Monday last by an almost total cessation of business, and by closing their shops and windows in all the great towns and cities of the United Kingdom. Having said so much on the foregoing topic, I must now approach a subject of the gravest and most serious import, in which the interests of England, of America, of Europe, and of the world at large are deeply involved — I mean the prospect of aa immediate war-between Great Britain and the United States. The question of war or peace will be decided within the ,next few days — no other subject (excepting the Prince Consort's death) has occupied the public mind for the last three or four weeks. The cause may be briefly stated in a few words. Intelligence reached England on the 27th of last month, that the West India Royal Mail Steamer Trent, homeward bound, was boarded on the high seas by an American War Steamer the San Jacinto, commanded by Captain Wilkes, who brought the mail vessel to, by firing round shot and shell across her bows, and seized by force two passengers who were sailing under the protection of the British flag. These passengers were Messrs. Slulell and Mason, Commissoners from tho Confederate States on their way to Europe, in the character of quasi-ambassadors to England and France. This occurred on the Bth of November. The Trent was at that time one day's journey from the Havannah ; where she had taken up Messrs. Slidell and Mason with their wives, familes, and secretaries as ordinary passengers for England— little suspecting the outrage which wag about to be perpetrated upon a nuetral vessel, and upon the British flag by au American War Steamer. It appears, however, that the San Jacinto which had lately returned homo from the African station, put in at the Island of Cuba where Captain Wilkes ascertained that the Confederate Commissioners were staying (having run the blockade at Charlestown some few days before) with the intention of sailing for Europe ; and it is further stated (I know not with what truth) that Captain Wilkes and his officers insinuated themselves into the society of Messrs. Mason and Slidell, and of their suite, under pretext of sympathising secretly with the South, and that while enjoying the hospitality of the Commissioners, they wormed out their views and intentions — only to lie in wait for and seize them as " rebels " wifhin a few days. Having gained the information he required, and that the Commisssioners were to sail in the Trent, Captain Wilkes got up steam and started a short time before the Trent on the path of which he lay in wait in order to seize his prey. This object he accomplished in the most summary and effectual manner by sending one of his officers, Lteutenant Fairfax, accompanied by several armed men on board the Trent, with peremptory instructions for the capture of Messrs. Mason and Slidell, and of their papers — while the decks of the San Jancito were cleared for action in case of any resistance by the Trent. The latter vessel, however, could of course offer no resistance to a war steamer be- ; yond the solemn protest of the Captain and of Commander Williams, R.N., in charge of the mails, and so the Commissioners were seized by violence, from their families, from under the protection of the British flag, and carried oft' in I triumph to Washington, I believe, and lodged as | " traitors "in Fort Warren. This outrageous act j was hailed in the United States (if such they may now be termed) with shouts of exultation and wild delight. The Federalists had got within grasp two of the chief Conspirators, and arch traitors of southern rebeldom, and thus their joy knew no bounds. They greeted the Captain for having accomplished the bravest, the boldest and he most undaunted enterprise on record. And such indeed it was in one sense, for it was nothing less than bearding the British Lion in his own den, and with unexampled temerity, pulling the noble animal's nose and attempting to cut his claws, The deed was not only bold but foolhardy in the extreme. The British Lion is not an animal to be trifled with. His motto is Nemo me impune lacessit, which he has appropriated in fact, if not in words. And accordingly in the present instance he gave a growl which was much louder than usual — so'loud in fact that it was heard not only all over the United Kingdom and throughout Europe, but before this time it has penetrated into the veiy inmost recesses of the American backwoods — not we may persume without causing some terror by the significance with which it was uttered. For in the presentinstaneeit sounded like the distant thunder of "deep mouthed-cannon." However, to drop this figure of speech, the news of the seizure of Messrs. Slidell and Mason produced a powerful sensation in England. A general feeling of astonishment— mingled with indignation was the first result. There was an instinctive feeling of prospective war, as suddenly indicated by that barometer of public sentiment, the Stock Exchange, and the Funds, which in the early part of Nov., had reached 94.J, fell in the course of a few days to about 89 or 90. The Government lo9t no time in taking the matter up. Cabinet Councils were held. Authorities, precidents, and the Law Officers of the Crown were consulted — the result of which was that the seizure of the Confederate Commisaioners, under the circumstanced named, was declared to be a gross violation of International Law, and of the rights of neutrals, as well as an outrage and insult to the British flag. Whereupon a dispatch was at once forwarded (on the fourth day after the news reached England), to the British Minister at Washington, directing him to demand the immediate liberation of the captured Envoys unconditionally and without any negotiation ; and that should this request not be complied with, he was to ask for his passports, and leave Washington forthwith. Not only this, but immediate preparations" were made for war in all the dockyards and in all the naval and military stations in the Kingdom. A Proclamation wag issued forbidding the export of arms and ammunition, and of all kinds of warlike implements and stores, including saltpetre, large quantities of which had just been bought up at a high price by the American government, but which, of course, was not allowed to leave the kingdom. Besides this, large numbers of troops, including, amongst others, several batteries of artillery, and about 1500 of the guards, were at once sent out to Canada. Already, some six or eight thousand men have been forwarded, and others will speedily follow. The prospect of impending war has been the subject of discussion in the press, and of conversation in private circles, and in public ever since the news of the Trent affair reached this country. To do the press of this country justice, the question involved, namely, the right of belligerents to take " Ambassadors or rebels," as they have been alternately called in America, out of neutral vessels on the high seas, as articles, contraband of war, has been ably and temperately discussed by all the leading journals in the kingdom. All the great writers upon International Law have been overhauled, and their opinions brought to.bear on the subject in hand. The his-

tsty o$ ; tile Met tiertiiii'jr, Incliitthig fid original Amartc&n Wdr', tae ailbiieijtidiit protmdted w&tf wltji France, and thd Second war with America in 1812, haa been dilligently ransacked for precedents. Not only so, but the whole continent ef Europe, (whose rights as neutrals were equally involved with our own) has joined in the discussion, and the unanimous result has been the condemnation of the course pursued by the San Jacinto. On the other, hand the American press have • been equally unanimous in supporting Captain I Wilkes, who has been lauded to the skies, as the greatest hero of modern times, ti e has received ovations and addresses at Boston, and at Washington. The naval department of America have expressed their unqualified approval of his conduct, and only deprecated his moderation in not seizing the Trent, and taking it into an American port as a prize of war. And by way of climax, the Congress presented this hero with a vote of thanks. The great question now to be decided is this, will the President and his Cabinet comply with the peremptory demand of England for restoring Messrs. Mason and Slidell, and for making a suitable apology for the insult offered to the British flag. Should they refuse to do so, we shall be in the midst of a terrible war, long before this letter reaches you. A few days will decide. We are at the present moment waiting with anxious expectation the answer of Mr. Lincoln. It will doubtless reach us to-morrow or the day after, but should a telegram arrive by this evening, I will enclose the result. Only seven days were to be allowed the American cabinet for delibbj'ation. The British ultimatum, which was desptftehed on the 30th ult., would reach Washington about the 14th instant, and, therefore, by New Year's day, we may look for Messrs. Mason and Sliddell, or else for Lord Lyons at Liverpool. No terms will be listened to, short of the liberation of the captive commissioners, for it is felt that tha honour of the British flag is at stake. It is truly observed that the deck of a British ship is as sacred as British soil, of which, in the eye of the law, it forms a part ; and that if the Federal States were to seize their rebels or others, under the protection of the JEgis of England, and to do so with impunity, our glory as a nation would vanish, and the prestige of this country as mistress of the eeas, would be a thing that was. It is thought in England that this impending rupture between ourselves and the United States has been a preconcerted plan of the Federal Government, with a view to find a pretext for seizing upon Canada, in order to satisfy the national amour propre ' which lias been eorely wounded by the loss of the Southern States, and that the prospect of a great war with England would afford the Federalists an opportunity of coming to terms, and making peace with the Confederates ; for it is tolerably clear by this time that the restoration of the Union on ita former basis has become all but impossible. True, indeed, the Federalists have lately gained some advantages by sea on the coast of South Carolina, where they have taken Beaufort, Port Royal, and other places, which they now hold, though /vith little apparent advantage in a strategical point of view, as those places are too far south of the base of operations along the Potomac. True it is that they have effectually blocked up the mouths of the harbours of Charleston and Savannah by sinking a great number of hulks, laden with heavy stones at the entrance of the channels leading to both thoso cities. It is also true that they contemplate a descent upon New Orleans with 125,000 men, by way of Mississippi, and that according to the report of the Secretary for war, they have an army of 650,000 men in the field, yet for all this, their ultimate chances of success are more doubtful than ever. As yet, General McLellan has not dared to advance his lines, or to offer battle to his southern opponents — sensible of the great risk which he would run, for ho knows that his enemies number at least half a million of desperate men, who have made up their minds to do or to die in the great contest, who are fightim? for their nationality- ami who hate their northern foes with a hatred of the fiercest and most vindictive character. The j southerners are full of confidence in themselves, and in their resources to prosecute the war to a successful issue, at least, if we may credit the message of their president, Mr. Jeffei'son Davis, which has lately reached Europe. This message which is a state paper, drawn up with great skill and ability. It is calm and temperate in its tone, entirely free from swagger and bombast, terse and well expressed, and is infinitely superior in every point of view to the long-winded productions which we have generally emanated from Washington. He speaks of an abundant harvest, manufactures prosperous, new fields of industry opened, and abundant supplies of all the necessaries of life, and of the means for prosecuting the war. He refers in terms of praise to the work already accomplished in the victories gained, and in the creation of a great volunteer army in the face of war itself; and he says that after seven months fighting, the enemy has lost ground, and has been put on the defensive, while the Confederates gained over States and depen» dencies. He states that the treasury notes (with cotton as their basis) have been found abundantly succeessful as a circulating medium ; and that the provision that they shall be convertible into Confederate Stock, bearing 8 per cent, at the option of the holder, will keep them from depreciation so long as the interest is paid. Having, he said, dissolved the league which existed, the Confederates now shrink with aversion from the bare idea of renewing the connection which it is sought to force upon them. He alludes briefly to the seizure of the Confederate Commissioners, and says that with equally good reason the Federal government might have claimed the right of capturing them in the streets of London. He hints to Europe that by a not improbable diversion of labour, the cotton supply might altogether cease, and so bring ruin on the nations dependant on that staple. This hint, or rather threat, was, of course, specially intended for England, with a view to urge her to raise the blockade. Should war break out, of course the blockade would immediately be raised, and in view of such a contingency, cotton has fallen considerably in the Liverpool markets. In fact, trade at Manchester, and in all the large manufacturing towns, has been almost paralysed for the last month. It has been merely of a hand to mouth character, nothing doing but small orders— although army clothing is expected to give some stimulus to the wool and cotton trade. In France, the wool trade has been very dull. At the sales at Rouen on the 20th and 25th ult., of 6,000 bags of Spanish, - Russian, Australian, African, and other wools of a superior quality, only 1,300 found bidders. The demand for wool in England (though its general feature is flatness) has been somewhat better since the opening of the London sales on the 7th inst. For all the better kinds of Port Phillip, Van Dieman's Land and New Zealand wools, former prices have been generally realised. The same has been the case with Cape Wools, of which large quantities have been sold. As regards cotton, should war break out, we shall shortly have a glut of that article at Liverpool, and then good bye to the various enterprises afloat for raising cotton in India and elsewhere. To revert, however, to the American subject, it is thought that the popular feeling in America is such that the Government there dare not surrender the Confederate envoys. Defiance is flung in the face of England by the rowdy press and by the populace. Not that they think we will go to war with them exactly; but even if we do, they are quite prepared to whip us, as' they have done" more than once before — and this, too, while carrying on a desperate war with the Southern States. Of course this determination is the result of dowmight madness. England was never better prepared for war, whether as regards ships, sailors, or soldiers, than she is at the present moment. Our naval reserve, recruited from the merchant service, and which is highly efficient and can be called out at any moment, musters some fifteen

or twenty thotlsatid inim dl2 ! 6ady,afid sauid easily be Inei'eas&lj {f neSess'ar'y. Thia body, which had been entirely organised since the time of the Crimean war, consists of able seamen, and is auxiliary to the regular navy. They receive jGH per annum from the Government, With a pension or Greenwich Hospital in old age. They are called out for drill 28 days in the year, during which time they receive a guinea a-week wages — alter which they are free to follow their usual avocations until required for active service in H. M. navy. A body of naval officers will also be raised, from amongst the elite of the merchant service, on such conditions as to secure their services for 1 the navy whenever occasion should require. Hence our naval arm, to say nothing of our immense fleet of war steamers, and iron-clad vessels carrying Armstrong guns, was never stronger. And then our home volunteers will be able to ' defend the country, should a large number of I regular troops be required in Canada. In the latter country they have an immense effective militia, very strong in all its branches of artillery, cavalry, and infantry, and amounting probably to 20D,000 men. Already Canada has shown a very bold and defiant attitude ; and should the Yankees desecrate her soil, she will, doubtless, with the aid of England, be able to give a good account of them. The Federal Secretary for War has already ordered (as if contemplating hostilities) preparations to bo made for defending the coast line, as well as the Canadian boundaries. In the message of President Lincoln, which was received here about a fortnight since, no allusion whatever is made to the capture of the Trent, lest, doubtless, he should commit his Government to any declaration from which they could not afterwards recede, on learning the views of the British Government. At the present, divided counsels prevail, not only in the Cabinet, but in the camp, and, in fact, throughout the whole of the Northern States, respecting the end and object of the civil war now raging. There are two great parties (with numerous shades and sub-divisions) — one, the " Union" party, which merely contemplates putting down the " rebellion," leaving the Slave States to enjoy all their former rights, privileges, and " institutions" — the other is the " Abolition" party, which insists upon crushing out slavery, and therefore urges the immediate emancipationofall the Negroes of the South ; — nay, even the most fanatical amongst this party, suggests that the slaves should all be armed, and turned loose upon their masters. These divided councils tend greatly to weaken the moral force of the Federal belligerents; and it will be no matter of surprise in England if, in the face of these divisions, the Federal Government should collapse and fall to the ground. But again, should they be mad enough to go to war with this country, the question arises, where will they find men and money, not to speak of a fleet. Their present fleet is simply contemptible in the face of ours. We could sweep their navy from the seas in a few weeks, and their only reliance would be upon their mercantile marine, which is very strong, and which, if fitted out as privateers, could do a good deal of damage to our commerce. In anticipation of such contingencies, a strong society of ship-owners has been formed for mutual assistance in the event of war, and the General Society of Shipowners have received an assurance from the Admiralty that instructions have been sent out to the naval stations upon the track of ships trading to the East, to afford prompt and efficient assistance to commerce, and that, if necessary, reinforcements would be sent, out for the purpose. At Lloyd's the war risks on homewird bound British vessels from the East, have already advanced, so that the gold ships from Australia and New Zealand must in future keep a bright look out for Yankee privateers, and be prepared to give them a warm, if not a hospitable reception. As regards the strength of the American navy, they have at present something like a dozen ships of the line, of about 84 to 120 guns ; 10 fifty-gun frigates ; 20 frigates of from 16 to 24 guns ; and about 100 smaller vessels, besides some sun-buata — whiia mngiaua nasss first class vessels in reserve, mounting 1,378 guns, not to speak of her immense fleet, which perhaps numbers on the whole some 800 ships of all sizes, not including gun-boats. As to the question or money, the Federal States will be at their wit's end before long, even without the war with England. Their expenditure for the last year was about £'90,000,000 ; and that for the ensuing year ending in July is estimated at ±'109,0U0,000, of which they cannot manage to raise a fourth in the way of ordinary revenue. Still the Secretary for the Treasury speaks boldly of loans, and of direct and indirect taxes (including an income tax) to be raised and increased in a great variety of articles, including paper. One thing is certain iv connexion with this war, and that is, that the holders of American stock in this country, which stock it is said amounts to the sum of 125,000,000 dols., will be ruined. There is, at the present moment, a certain " peace-at any-price party," which is not over sensitive of our national honor, and which is strongly American in its sympathies and " proclivities," and this party, headed by John Bright, is making every effort to get the *' difficulty" between the United States and England settled by arbitration. But, however wellmeaning may be their intentions, this country is in no mood just now for protracted negociations. We don't want any parleying, neither do we want to go to war, if it can be avoided, for by such a war | we can gain nothing, while we ma)- lose much in the way of a stagnation in our trade and commerce. There is not even much military glory to be had by " whipping" the paltry, old-fashioned, and half-rotten war ships of the United States ; so that all our interests point in the direction of peace. But, then, duty and instinct, on the other hand, point to the vindication of our national honor and of our flag in the first instance. When that is done, we shall be ready to listen to negociations as long as Bright & Co. may think proper. Besides, we know that already the whole of the civilized world— that is, the whole of Europe — has declared in our favour, and so the matter is decided by anticipation. Nay, the French Government has addressed a dispatch to Washington, urging the Federalists to give up the prisoners, and telling them plainly that they have violated the plainest principles of international law ; so that, we trust, when President Lincoln learns the views of Europe, and heara from General Scott, who lately returned from Paris to his own country (doubtless with a view to influence his cabinet in favour of peace) that the voice of France, Italy, Austria, and Spain, is in unison with our own upon the Mason and Slidell affair, he will be discreet and prudent enough, even at the risk of losing his popularity, to give up the envoys to the British Government. There are several subjects 'of great interest which I am obliged to pass over for the present, but I will add them in a supplementary letter by next mail. It is now near post hour, and if there be any news in the evening papers, I will subjoin it as a postcript. Thursday evening, half-past 6. P.S. — No decided news as yet from America. The latest telegram from New York, Dee. 14, reports an engagement in Western Virginia, in which the Federals are said to have been successful. Another engagement seems probable in Kentucky. Considerable activity in Canada in organising militia and volunteers. A large fire said to have taken place in Charleston, supposed to be the work of incendiaries — several public buildings burnt down. The O'Donoghue has been superseded in the commission of the peace by the Lord Chancellor, for having recently taken the chair at a meeting of ultra-Irish democrats, at the Rotunda, Dublin, the object of which meeting was to sympathise with America, and to express the good will of the Irish with that country in the contemplated struggle with England. The meeting in question waa as rabid as extreme anglo-phobia could make it, but waa chiefly attended by the rabble of Dublin, and by young lads and mechanics. Mexican privateers are said to be fitting out at

H<s# fotli, fat tfta frtifpdsa d Attadkintf rfnglteli Spanish, mid SVsnch merchant Veesels.