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4 tleman gaid:—Before I explain the grounds upon which, in my opinion, this document may fairly, and with advantage to the public service, be lai upon the table, I hope the House will permit me to make a short explanation, which is,{ think, ren- dered necessary by the somewhat abrupt contra~ diction which was given the other day by the right honorable Pay for India (Sir C." Wood) to a statement which f then made. (Hear.) I then asked whether there would be any objection to lay on the table a communication made on behalf of her Majesty’s government, fins, advice to the Courts ‘of Germany as to the course they should ursue with reference to the war now raging in taly. I referred to this communication as one which I might fairly impute to the government upon the authority of the right honorable Secretary of State for India; but that right honorable gentle- man with, I think, more vivacity than courtesy, at once exclaimed, “I never said anything of the kind.” Now, of course, I am bound ‘to accept the disclaimer of the right honorable gentleman; but I deem it due to myself that I should state the grounds upon which, as I think fairly and justly, I ‘was led to attribute that statement to the right honorable gentleman. On referring to the report in the Zimes newspaper of the right honorable gen- tleman’s speech to his ccnstituents at Halifax, I find these words attributed to him:— We bave seen rere anon [vgs ty a any @ strong spirit prevail wi oa amon to mol in howtilules. T hope aad trust that their own good sense, aided by the advice which we have given them since we came to power, will induce them to abstain from hostilides, (Hear, hear.) The right honorable gentleman far- ther said,— I believe that in the endeavor to:keep Germaay out of the war we shail be consuliicg the best interests of tho country. : Now, I find that report is identical in the Daily News, the Morning Herald, the Morning Chron cele and other morning ret Tie pers of the following day. Even if this were all, | should be entitled to attribute to the right honorable gentleman the an- nouncement that advice had been given by her Majesty's government as to the course which should be pursued by the German Powers with rogard to the war in Italy. 1 tind, however, that the right honorable gentleman's speech has apparently led not only me but others into error, for that speect was thus commented upon in the leading article of the Zimes:— ? We learn from Sir C.Wood that our Fore'ga Minister bas not been idle, aud Prussia is supjected to the same admo- nitions, expostulat ops warnings which so signally failed of their effect w idressed by Lord Malmesbury to France, Austria and Sardinia, As far as I was concerned, the case doesnoteven rest here; for the speech of the right honorable entleman had attracted the notice of my noble riend, Lord Malmesbury, and he thought it his duty to make some observations with reference to it in another place, where he expressed his fear lest this officious giving of advice should be found to preju- dice our position of neutrality—(cheers ndmight | therefore impose unnecessary respon: ty upon the government of this country. I find that, in an- | swer to the observations of my noble friend, one of the colleagues of the right honorable gentleman, the Duke of Newcastle, said that although he had | not been able to read the report of the right | honorable baronet’s speech, he had no doubt | of the accuracy of that report, aud he further said that the despatch alluded to by the right honorable gentleman would not” bear the | construction to which Lord Malmesbury seemed to | apprehend it was open. Now, when I found an identical report in al] the morning newspapers at- tributing to the right honorable gentleman a state- ment that the present government had given advice to the Powers of Germany wil! erence to the course to be pursued with ard to the war in Italy—when I found that that languaze was under- stood in the same sense by ra, and that a noble duke—the colleagu t honorable gentleman—expreasly stated 4 held by the right honorable gentlen: ed to a des- patch of which that noble duke was cognizant, I think I was perfectly entitled to attribute these sen- timents'to the. tight honorable pentlarmen (hear, | hear); and while | entirely accept his disclaimer, I cannot but think he has been somewhat precipitate in stating so decidedly that he not only had not said whatl attributed to him, but that he never said anything of the kind. Now, with reference to the juestion I wish to putto the noble lord the Secretary br Foreign Affairs, I beg to assure him that my ex- erience of the department over which he presidesis he too recent to permit me to press him to pro- duce any papers which he may think it desirable | for the public interest to withhold; but I must say, | at the same time, that [think the paper to which I refer does not come within that catego: T do not ask for a portion of any correspondence, or for anything having reference to pending negotia- tions, but we have had a circular from the govern- ment of Russia expressing their views with regard to the present position of Germany—we have had a circular addressed to the various French Minis- ters by M. Walewski—and I think this country and Parliament should be in possession of the most au- thentic records of the opi 3 of our own govern- ment upon the same subject, I think it is not only of y seem dis- un ref desirable that we should be in possession of the views of her Majesty's government upon this sub- ject, but thatitis also very necessary that this House should know the language in which these views have been language is judici tor: sed. li may be that that | may be that it is concilia- | pre it may be that it is all this House could | but, on the other hand, it may be such as | lated to irritate and to wound the sus- | ceptibilities of those to whom it is addressed. How- | ever guarded statesmen may be in writing their | despatches, itis not always that a public man is | successful in attaining the object he has in view. | A very remarkable instance of that occurs to my mind, because, on a former occasion, when the | noble lord (Lord J. Russell) held the seals of the | Foreign Office, he addressed a very important des- | atch to the Courtof Russia. The laudable ob- | ject of that despatch no one doubted; but, laudable | as was ils object, itonly paced the way for the | outbreak of hostitities,and encouraged the Empe- ror of Russia im the pursuit of those | designs and the adoption of those mea- | sures which aflerwards rendered a war | between Russia and this country inevitable. | It is therefore desirable that we should know not only what the policy of the government is, but what ere the exact terms and phrases in which they have conveyed that policy to foreign govern- ments. If, under present circumstances, and es- | pecially after the news which has just been re- | ceived, the noble lord thinks it better that the des- | patch should not now be produced, will sa: | nothing further. But I shall now conclude with | asking whether there is any objection to lay on the | table the despatch alluded to by the right honora- | ble member for Halifax on the occasion to which I | have referred? (Hear, hear.) Sir C. Woop (who was indistinctly heard) was | understood to say—Sir, I may be permitted, before | the noble lord rises, to offer a few words in expla- nation of what I did say at Halifax, and of why I made the answer that I did yesterday to which the - honorable ee has adverted: I understood the honorable member yesterday to ask for the pro- duction of a despatch which I stated had been ad- dressed to the different Courts of Germany, urgin; on them an adherence to a course of firm neutrali- ty in the present war; and in reference to that as- sertion, speaking perhaps with a little warmth, I remarked that I had said nothing of that kind. ‘What occurred at Halifax was this: many persons there were very much interested in the trade of the Continent, and, apprehending that their busi- ness would be entirely stopped by the war, they expressed great alarm ata report which they had heard, that Prussia was on the point of taking an_active part in this struggle. On the other hand,a large number of people were also apprehensive lest the preparations going on in this country should render the maintenance of our neu- trality much more difficult. In the first place, I told them that the present government were not more likely than the last to abandon the policy of neutrality,and I assured them that the naval and military preparations which have been for some time in progress were not intended, as J believed, by the late government, and certainly not intended by the present d Shier rng in any way as a depar- ture from at policy. But I added that events might happen elsewhere, for example in Germany, by which, if the war extended, this ie | might possibly become involved; and that dut of consideration for our own terests, and even for our own obligations we might be called upon to interfere. I further said I hoped and trusted that this would not be the case— thal the statement that Prussia was on the point of taking an active partin the war was unfound- ed—that that Was a course which I thought a re- | po Bp nec should induce Sern | 3 hat we had also given our ad- vice to that effect. Not that we had siven ot Ger- many tha ine rea to remain neutral. That | |, perhaps, have been going furthe n } had a right to do; but that, iodtdag to. ae tase rest which this country felt in the question, she was justified in urging Prussia notto take aun immediate and active part in the war now raging in Italy. | Mr. SuyMour FirzGeRaLp—1 certainly “never | used in relation to this despatch the words which | the right honorable gentleman has described. 1 | oke of it merely a3 a communication on the part a her Majesty's government giving advice to Prus- aia as to the course tobe pursued with reference to | the war. IGLISH OPINION OF SARDINIAN ANNEXA- = we TION IN LOMBARDY. GOUNT GAVOUR'S CIRCULAR AND THE GERMAN QUESTION. In the House of Commons on the 8th instant, Mr. B. acme (in the absence of Lord W. Graham) rose to ask the Secretary of State for Foreign Shire whether the circular of Count Cavour, daved regard to Prussia, owing to rumors that were in | some degree countenanced by official statements, | of | ry that there sl | any member of this House to enter into discussion | regard to Mexico. NEW YORK HERALD, FRIDAY, JULY 22, 1859--TRIPLE SHEET. Pi ssa nO ek eran meee TE angel eeaiigeeenenan 2 lanl dink alee la }, had been officially com- p Court; and if so,whether ent with his duty to make to address any observations dinian Minister in this country. teh of the Mth of June Connt Cavour refe oa previous despateh of the Ist of March, which bad been laid on the table. In the first of those despatches allusion had been made to an in dependent government for Lombardy and Venice, whie in the second the following language was held:— The feclivgs of the inhabitants have hrokea out; the mynicipal aniborities—the very same that bat beou watt tuted by Avstria—have proolaimed the fall of the ancient governtocnt—bave renewed the union of 1818, and uvani- mously confirmed their anvexstion to Piedmont The munt- cipalty of Bilan proclaimed ft even within tho range of Avttrian cannov, The King, by accepting this ata neous act Of the national will, iofituges the exuling trea- ties in no respect, gince Austria, by refusing to acoopt a Conirces having for its basis the maintenance of these treaties, acd by invading the dominions of his Majesty, has tcrp up, io bo far ae coccerns hercels, the (ransactious of 1814 ano 1815, ‘That despatch covveyed eo much meauing, aud differed so much from the first to which he had reterred, that he wished to eek the noble lord whether he had any obdjeo- tions to lay the anawer to it on the table. Lord J. Russeui—In answer to the question which has just been put by the honorable gentle- man, and which was to have been put by a noble lord, relating to a despatch or circular of Connt Cavour of the lth of June, I have to state that it has not been officially commanicated to the British government, There is a des- patch from Sir J. Hudson, stating the sub- stance of a circular written by Conat Cayour— Lam not exactly sure whether the same circular or not—which alludes to certain States being an nexed to Piedmont. The answer of her Majesty's government to Sir J. Hudson was that they could not acknowledge any of these annerations of other Slates; that the system of occupation must be decided finally by the wishes of the inhabitants by the fortune of war, and by any general treaty of peace that might be concluded. This answer Sir J. Hudson was desired to communicate to Count Ca- your. There is, therefore, no acknowledgment by her Majesty’s government of any of the annexations that may have taken place. (Hear, hear.) I will next reply to the question which has been ut by the honorable gentleman the Jate Under Becretary of Stete for Foreign Affairs. His question is, whether I have any objection to lay on the table of the House a despateh addressed to the Prussian government or her Majesty's Minister at Ber- lin as to the course of condact which Prussia ought to pursue with reference to the warin Italy, In answer, I have to state that it would be very in- convenient to the public service if that despatch were laid on the table. Itisa despatch to which an answer has been given by Prussia, while, again, another was sent only last night by her Majesty's government, continuing the correspondence. I think, therefore, the honorable gentleman will see that it would be highly inconvenient to give pate cation to part only of a correspondence. (Hear, hear.) But with respect to the nature of the cor- respondence the honorable gentleman has very naturally fallen into some errors. Tho hono- rable gentleman speaks of a circular addressed to the Germanic Confederation from the Court of Russia, and of another circular signed by the French Minister of Foreign Affairs, M. Walewski. The circular of the Court of Russia, and I think also that of the French Minister of Foreign Affairs, spoke of the rights and duties of the Germanic Confederation, and of what was the proper course for that Confederation to pursue in regard to foreign nations. Now, that is a kind of discussion natura] enongh for the States of Ger- many; but we have not followed any such course. We fave not discussed at all the rights and duties of the German Confederation, and the rights and duties of the several States, or what should deter- mine their relations to other Powers. But with the Mth day of June, 18. municated to the he bad deemed it ply thereto, 6 to the we addressed a despatch to that Court. Now, in looking at the Italian papers on the table, I seea despatch from Lord Malmesbury to Lord Bloom- field, our Minister at Berlin, in which, after stating that the government of this country intends to remain neutral, he says:—“Her Ma- jesty’s government, therefore, deprecate any act Ww might unnecessarily extend the theatre of | war, and they are prepared to take advantage of any favorable opportunity that may arise of being the medium of restoring peace.” (Hear, bear.) Now, the object of our despatch to the Court of Berlin was to “deprecate any act that might unne- \ cessarily extend the theatre of war. (Hear, hear.) | It appears to me that it is the bounden duty of her Majesty’s government, as far as they can properly do so, to consult with other governments which ave neutral in order to prevent the theatre of war from extending, (Hear, hear.) I need hardly point out to the House, certainly not to the honor- able gentleman, who is so well acquainted with foreign affairs, that while it is a great calami- ty to have war in Italy, it would bea still greater calamity if the war extended to Ger- many, and through Germany to the whole Kurope. should induce Prussia to take part in hostilities, and to discuss in the most friendly manner the inte- rests of Prussia in regard to the war. (Hear, hear.) | In regard to the latter part of the question put by the honorable gentleman, it is peculiarly necessa- fould be no premature publication of correspondence at this moment; for, without | knowing how far the armistice may extend, we are | informed officially by the Moniteur that it leaves room for negotiation. (Hear, hear.) Thatis so important an announcement that it would be unad- visable for the government, and very unwise for | hear. (Hear.) We were, therefore, led | | to consider what were the causes put forth that on this subject. (Hear.) Our disposition must be | the same as that of the late goverument—viz., to take any opportunity afforded us of “being the me- dium of restoring peace.” (Hear, hear.) We may | not take the same view in regard to what would be | the most favorable time for restoring peace; but | with regard to the object we are entirely agreed with them. (Hear, hear.) The honorable gentle- man, surely very unnecessarily referred to a des- patch of mine written some years ago, and commu- nicated to the Court of Russia. The fact with re- | lee to that despatch was that the late Emperor of ussia thought it advisable that there shonld be a | concert between this country and Russia with re- | gard to the future state of Turkey, supposing the | government of the Sultan to be destroyed. We did not think fit to enter into any such concert, and the Emperor of Russia was told so in a despatch that was afterwards in substance reported to the Russian Minister at this court. The Emperor of Russia ac- cordingly wholly abandoned that proposition; and therefore how anybody, even in the extreme of fac- tious misrepresentation. can say that that course of conduct on my part had anything to do with the breaking out of the war with Russia, I cannot undersand. (Hear,hear.) I now come to the question that has been put to me _ with Mexico, most unfortu- nately, has been divided into two envions parties, both of whom have been guilty of many outrages on British subjects. It appears that the British Minister is considered favorable to one side and that the Minister of the United States is considered favorable to another side; but whatever may be the truth of these Hoe it is undoubtedly true that both from the one side and from the other, both from the central party and the constitutional bi Lae subjects have suffered great outrages, ‘heir property has been taken from them, and in certain cases where it has not been given up they have been letde io to be executed, and in one in- stance it required the greatest efforts on the part of the British Minister to save the life of a pro- posed victim. (Hear, hear.) As to the outrages that occurred in the first instance the late govern- ment employed a squadron to procure redress, and this House is aware of what followed. Ican only say that Captain Dunlop did his duty with great zeal and great discretion. But, unfortunately, since the arrangements then made, there is a fresh arrear of outrages to be complained of, and the serious question to be considered is, what should be done to protect British subjects against them. Undoubtedly it is the duty of the government to protect them, and I rae say that no effort will be spared to effect that object. (Hear, hear.) With régard to Mr. Otway, he has lately received leave of absence,in order that he may come to this coun- ty and make his defence against the char; which have been brought against him. He him- self considers those charges totally unfounded; but Iregret to say that he has not entered so mach into particulars as to enable me to lay papers on the table which will show that he is in the right and the British merchants in the wrong. In con- clusion, I have only to repeat that for the protection of British property as much will be done as can ene be done in the circumstances. (Hear, ear. Mr. Bowyzr remarked that the statement of the noble lord, that it was theduty of the government to give such advice to the German Powers as might prevent the theatre of war from being extended, ‘was a very specious and plausible expression. In one sense everybody would consent to it, but it was difficult to see to what extent the meaning of that expreasion might not be carried. i Lord J. Russent—J did not say that advice had been given to the German Powers; what I said was that we had made a communication to the Court of Prussia. Mr. Bowrgr understood that the despatch in question stated the view which the government took of the course which the German Powers ought to pitvoo, Now, Germany was not an island like land, and its different States were placed in a different position from that which we occupied. The German Powers had seen with States, with which neither France nor Sardinia had any cause of quarrel, to revolt against their so- vereigns. He was favorable to the Briasinte of Ita- lian nationality, having always felt that the pre- sence of Austria in Italy was a great difficulty; but when he saw that the war was one of avowed and open conquest, and that it was carried on ina man- ner quite new in the modern history of Europe, he did not wonder at the anxiety and alarin felt by Germany at the progress of the enormous and ap- parently irresistible army of France. Instead of say- ing, “Wait a little, gentlemen; your turn to be de- voured by France will come in due time,” he thought the government would act wisely in leaving the Ger- mans to mind their own business. They understood very well what their own interests required of them, and we, who occupied geographically an iso- lated and therefore comparatively safe position, ought not to use our influence in preventing the German Powers from taking that course which might appear to them expedient tor the purpose of putting some check upon the aggressive and conquering policy of France. He believed that any atlempt to invade England would be defeated in the most effectual manner, wut he did not feel as confident as many persons that our turn might not come; on the con- trary, he was persuaded that Austria had been to a great extent fighting the batile of England as well as her own. (Cries of “Oh,” and “ Ques- tion.”) He looked with hope at the new state of things which had been brought about in Italy by the success of France (‘ Hear, hear,” and a laugh); but he warned the government; when they talked about Fle poxtd ‘with France, to remember that when France had overcome Austria and waged a successful war— probably next year—against Germany, the time might come when we should have to stand upon our defence, because France had to gratify her spirit of hostility to- wards ma, pasa o wipe out the recollec- tion of lerloo. (Cries of “ Oh!”") Mr. Ly ave. asked the Cepretany of State for War whether the government had had under their con- sideration Bessemer’s economical process of manu- facturing steel, and whether there was the intention of substituting that metal for iron to any extent in the manufacture of guns for the artillery and ord- nance. Mr. S. Hensert replied that a proposal had been made to Mr. Bessemer to the effect that if he would send in a block of iron from which a gun could be constructed, the experiment Should be made; but the government had declined to become ironmas- ters, or to adopt a process which had not been tho- rough] tented, If the invention combined econo- my with efficiency, there were, no doubt, plenty of capitalists who would take it up: but the govern- ment were unwilling to incur the expense of expe- riments of which, if they failed, the whole loss would fall upon the country, while, if they suc- ceeded, the gain would be reaped by Mr. Bessemer alone, Mr. DisraELi—I do not wish to revive the discus- sion which seemed to be terminated by the obser- vations of the noble lord the Foreign Secretary, for lam sure that the noble lord having stated that the correspondence with Prussia is gtill going on, the House will not press for its production; but at the same time I am bound to state that the descrip- tion which the noble lord has given us of his own despatch is one of a somewhat alarming character. (Hear, hear.) Giving advice is interference, and if you profess a policy of non-intervention and at the same time indulge in giving advice to foreign Pow- ers, you will eventually find yourselves involved in engagements which you never contemplated. (Hear, hear.) The noble lord has rested a des- patch of Lord Malmesbury, which fairly described the general policy of the late government, show- ing that they were in favor of a strict and impartial neutrality, but at the same time that they felt they were free to avail themselves of any favorable op- portunity to mediate in the interests of peace. The noble lord gives his adhesion to a principle which I believe no gentleman will be inclined to impugn. But there is in the despatches of Lord Malmesbury another Paragraph much more germane to the matter which has been brought under our notice this evening than the very general passage to which the noble lord bas referred in vindication of the course pursued by the present government. Ina despatch of Lord Malmesbury to Sir James Hudson, dated the 20th of May, I find the following sentence:— Ber Majesty’s government have done toeir utmost, within the bounds of friendly representation, to calm the excitement prevaillog in Germany; but they have not foit themselves called upon or authorized to dissuade the Ger- man States from takiag such mossures ag those States considered to be necessary for the maintenance of their several interests, for they could not assume the responst- bility of even morally guaranteeing them against the eventualitica of the Italian war. Now, if you sanction a policy which gives advice to neutral Powers, and in consequence of that advice those Powers take a particular course which may prove to them a disastrous one, you will find that you are involved in what is very hap- pily and accurately called at least a moral gnar- antee as the consequence of your advice. (Hear, I think, therefore, the House of Commons will do well not to favor the advice which the noble lord seeems anxious to give to those Powers at present occupying, like ourselves, the position of neutral States. (Hear.) I felt it my duty to call attention to the difference between the quotation made by the noble Jord and the principle laid down in the quotation which I have read, and which ap- pears to me of such importance that the House (aot omnia! to watch over its observance. (Bear. Lord J. Rvssrtr—I do not wish to enter again into this discussion, but I think it right to oF that the right honorable gentleman has taken far from a correct view of the course which her Majesty's gov- ernment have pursued. Tke motion for adjournment was then agreed to. THE ALLEGED MASSACRE AT PERUGIA. Mr. Ric asked the Secretary of State for For- eign Affairs, in the House of Commons, July 7, if he had received any despatch relating to recent events at Perugia; and, if so, whether he would lay the same on the table, or state the substance of them to the House. Lord J. Russstu—We have received more than one despatch respecting the late events at Peru- gia—one from Rome and another from Turin, but the facts therein stated are disputed. It is said by the Foreign Minister in Paris that the events at Pe- rugia have been very much exaggerated, and I have directed further inquiries to be made. T would rather not produce the despatches until the real facts have been ascertained, (Hear.) ALLEGED TREATY BETWEEN FRANCE AND RUSSIA. Jn the House of Commons, on the 7th of July, Mr, Kixcuake asked the Secretary of State for Foreign Aflairs whether regard for the public ser- vice made it expedient to withhold the answers of Sir J. Crampton to the despatches, dated respec- tively the 25th and the 29th of A last, in which Lor toleeetatl directed ing 3 to be made concerning the alleged engagements between Rus- sia and France. Lord J. Russett—The only despatch which I have found in the Foreign Office is one of the 8th of May from Sir J. Crampton, which consists of a telegraphic despatch that has already been made ublic by the late Under Secretary of State for ‘oreign Affairs. There will be no objection to pro- duce it if it is required, but it contains nothing more than what I have mentioned, OUTRAGES ON BRITISH SUBJECTS IN MEXI Inthe House of Commons, on the 8th instant, Mr, Scunrer wished, before the noble lord the Foreign Secretary rose, to call attention to the present state of Mexico, especially with reference to the outrages which have been committed npon British subjects. The honorable member mentioned several cases of gross outrage upon the lives and property of British residents in Mexico, and stated that the Conduct of Mr. Otway, the British Minister in that country, had been strongly complained of in connection with those proceedings. The speech delivered from the throne in February last inti- mated that our government had sent a squadron to the Gulf Mexico for the protection of British subjects and to obtain redress for the injuries inflicted upon them by the centralist party, at the head of which wag the present President of the republic. Mr. Otway was on the most intimate terms with the President, and it was believed that if he had exerted himself as he might have done, the pardon of an innocent British on ek who had been condemned to death might easily have been obtained. Without casting any aspersion on the character of Mr. Otway, or charging him with want of energy or zeal, it was, nevertheless, the fact that reports vey prejudici to his reputation as a public servant were circu- lated and generally credited in Mexico, and there- fore he ought to have an opportunity of refating the charges brought against him. the outrages in question, instead of diminishing, were increasing in frequency, and even after the arrival of the British squadron they had become worse and worse. He therefore hoped that the noble lord would inform the House what steps had been taken to obtain proper reparation for such injuries. Government did not reply. THE GALWAY STEAMSHIP AND OTHER MAIL CONTRACTS. In the House of Commons on the 7th inst., the Chancellor of the Exchequer moved for a select committee to Ha into the manner in which contracts extending over periods of years have been formed or modified by her Majesty’s. govern ment with steampacket companies for the convey- ance of the mails by sea, and into any arrange- ments adopted at the public charge, actual or pros- considerable alarm a revolutionary war carried on by France, in conjunction with Tedmont_—a war fostered by appeals to nationalities and by avempts to stir up the subjects of independent pective, for telegraphic nications beyond sea, and to report their oggiion, with any recom: mendations as‘to rules to Be observed by the goy- ernment in making contracts for services not yet sanctioned by Parliament, or which extend over # series of years. In stating the general reasons for the motion, he adverted to the origin of contracts by government for postal services in anticipa- tion of the judgment of the House, which tended, le observed, to oust the House of Commons of its jurisdiction over a form of public expenditure. He pointed out the evils which might arise unless the House took serious cognizance of the subject, and he thought the time had come when the matter should be subjected to a systematic and searching examination, Mr. H. Hexnexr objected to the words “by sea,” substituted for “beyond the limits of the United Kingdom,” as the motion ofiginally stood in the rBause, Wake he thought sufficiently compre- hensive. Mr. Bouverre wished to say a few words on the contract for the conveyance of mails between Gal- way and the United States. The contract was, he thought he might say, the occasion of the motion for the committee now proposed; and, without attempt- ing to prejudge the question, he must say, judging from the papers that mf on the table of the House, that a more hasty, reckless and ill considered waste of public money had never taken place than in the case of that contract. He did net see that the terms of the reference made by the Chancellor of tae Exchequer would enable the committee to go into that particular case, for he considered that no actual contract had been entered into with the com- pny, but that merely the basis of a contract had een agreed to. If this were so, he should move an amendment which would include the basis of a contract in the matter referred to the committee. Mr. Winson intimated that there was a contract in the case to which the right honorable gentleman referred. Mr. Bouverre—Then the case would, of course, come before the committee. Besides having en- tered into a most reckless and ill-considered con- tract, the late government had been guilty of con- duct towards a powerful company in Liverpool which no gentleman would be guilty of in the transaction of his private affairs. The late Secre- tary for the Treasury had cx premed his plea- sure at the manner in which the Chancellor of the Exchequer proposed to deal with the subject. He (Mr. Bouverie) did not wonder at it, because by the peaponsd arrangement the Galwa: contract would be glossed over. The company whic had the line of packets between Galway and the United States applied some months ago for a con- tract for the carriage of the mails from Ireland to Newfoundland, and so onto Boston and New York. The government here agreed to go shares with the government of Newfoundland in a subsidy to the company. By a minute dated on the 8th of Octo- ber, the Treasury authorized an advance of £4,500, in addition to the sum which had hitherto been pa for the conveyance of the mails to Newfound- land. In the same month Lord Bury, one of the di- rectors of the company, went out to Newfound- land, and on the 23d of October his lordship got a contract from the Governor. The home goyern- ment had a veto on that contract, and they agreed to a subsidy to the company for a year. It appear- ed that the Liverpool compavy got wind of some of those proceedings, for on the 25th of October they wrote to the government to say that they had hitherto conducted an independent communica- tion—that was, one for which they received no sub- sidy, naring but the usual sum paid for ocean postage—and that they wished for an opportunity of tendering for the ‘conveyance of the mails to Newfoundland. The Lords of the Treasury replied that when any postal service was required it was the practice of their lordships to invite tenders by advertisement. Now, that reply was given after the government here had parted with the power of taking any such proceeding. (Hear.) In the month of January the Galway Company wrote, offering to contract for the mails from Galway to New York for a sum of £3,000 a voyage, which, on a fortnightly service, would amount to about £70,000 a year. What did the preaeiy do on re- ceipt of that offer? They very properly referred the matter to the Post Office, by minute of the 18th January. Early in February the Postmaster Gene- ral made his report; and it was a matter of astonish- ment to him (Mr. Bouverie) how, after receiving that report of the Postmaster General, condemnin; as it aid in the strongest manner the contract ani stating with great ability the objections to it—the treasury should, by minute dated two days later, state that they were prepared to enter into that contract. The late Secretary of the Treasury had stated that the recommendation made by the com- mittee which sat six years ago was a discretionary one, and had not been acted on by the govern- ments that had preceded the late administration, But could the late government show that it was for the interest of the public that they should, in the Galway case, depart fromthe recommendation of the PostmasterGeneral? He now came to a matter which he could not understand. On the 22d of February, the very day on which the Lords of the Treasury had assented to the proposal of the com- pany, & question on the subject was asked of the war of Derby, in the House of Lords, by Lord Stan- ley of Alderley, and the noble Earl was represented by Hansard to have said:—"He could not state that her Majesty’s government had actually entered into any such contract; but the Lords of the Treasury had determined on entering into negotiations wit) the Atlantic Cenpeny. for the conveyance of a mail once a fortnight between the port of Galway and North America upon the general terms which had been proposed by that company. The Lords of the Treasury would of course, however, reserve to themselves the power, in the first place, of ascer- taining the entire solvency of the company; and secondly, that of insisting on such conditions as would enable them to secure the performance of the service in the adequate mannerin which it was performed by the Cunard steamers. Mr. Extick wished to draw attention to the in- jury done to the provinces of Canada by this con- tract. The Canadian government had ‘granted a large subsidy for the purpose of completing a com- munication that now existed once a week with Liverpool, and from personal experiencs he was able to say that no better communication, not ex- cepting even the Cunard line, could possibly be found. They carried letters without the smallest cost to the country, and this being the case, he thought the Treasury might devise some means of following so good an ‘example. He considered that Sir Samuel Cunard was entitled to the thanks of the country for the services he had performed, and that therefore he was entitled to have bis contract extended; but before this was done it onght to be ascertained whether the service could not be performed ina more economical manner (Hear, nese) He thought it rather strange that the Treasury should, as he efilled it, squander the public money in the way they had done in this matter. He believed the time had come when the correspondence out to be made to pay its own expenses, but whether favor should be shown to Sir Samuel Cunard or not, he thought that while there existed an efficient means of con- ducting correspondence with America, paying £72,000 a year fora new contract was throwing away public money. He begged the house to be jealous of the two quarters from which this propo- sition for a committee emanated, and especially to inquire into the merits of the Galway contract, to see what securities had been obtained from the par- ties for its due fulfilment. Lord Duncan asked the Chancellor of the Exche- quer whetber the Galway contract had been actually concluded, and said he should like to know whether the Lords of the Treasury were to be permitted to bind the house to every profligate piece of expen- diture they might choose to commit, (Cries of “oh, oh,” and laughter.) He protested vehemently against the expenditure of £72,000 for seven years in respect of such a contract. Mr. Disraztt.—So far as the late poxerameny is concerned I should like to have heard that the ques- tion of the Galway contract was to be specifically brought forward in this house. I am quite ready to admit that as respects the subject generally the go- vernment should be supported; at the same time there could be no objection to bring the question of From what the Galway packet contract forgrard. reached me as to the intention of the govern- ment before I entered the house I certainly was not prepared for the question of that con- tract being brought forward as part of the gene- ral question. (Hear, hear). The subject has been inci dentally introduced by the right hon. gentleman the member for Kilmarnock (Mr. Bouverie,) but I cer® tainly should have thought that it was one which deserved to be preceded by a formal notice. (Hear, hear.) With regard to” the contract itself, when the vote is brought forward I think it will be the opinion of the House that the contract which has been entered into with the Galway company is one which can readily be defended on the ground of Roe advantage. (Hear, hear.) It is to be consi- ered that a contract of this kind must necessaril come before Parliament before a single farthing is expended on account of it; and that it is entirely subject to the pleasure of Parliament. (Hear, hear.) The House will therefore have an opporty nity of expressing an opinion on the course pursyfd by the late government in reference to fhis matter. I canmot attempt, under cumstances, to answer in detail the allegaybns of the right hon. gentleman; butjl atill hope, fotwith- standing the f peste! character of the refrence to the proposed committee, that it will/be found convenient to bring the subject before gle House in a definite form as soon as peels, lear, hear.) As regards the Cunard and Galway o@ftracts, I can assure the House that the late government were influenced by no other consideratjén than that of public advantage; and the Houge will find when the matter comes regularly befdre them that our conduct in respect to those contracts is not open to animadversion. (Hear,hear.) No doubt it will be said that those who advised the entering into this contract ought not to have done so while they held the responsible position of Ministers, hat they will at all events be able to justify the course which they took on the general ground that they believed it to be for the public advantage. While Iam on this subject I think it right to notice an observation made by the right honorable geuleman wiih rete- ee rence to a charge of inconsistency which has been urged against a noble friend of mine in another place. It was said that Lord Derby in the evening of the day on which a Treasury minute was issued, intimating that the Treasury were pre- ared to enter into the contract, stated that the reasury had not entered into any contract, and the right honorable gentleman dilated upon the “gross inconsistency” of the noble lord in reference to that circumstance. But really there was no in- consistency whatever in the matter, for, in making that announcement Lord Derby stated what was pre- cisely the fact, namely, that the government ad not entered into any contract with the Galwa company, although 4 proposition was under con: deration. I believe on the same ise Treasury mi- nute was issued announcing that the foreraey was prepared to enter into a contract, but that mi- nute at the same time announced that they were so prepared subject only to certain conditions, and no contract could be made before those conditions were ascertained and agreed to. Therefore there was no inconsistency whatever in the language of Lord Derby. (Hear, ea) It was due to the noble lord that I should make those observations (hear, hear); but inasmuch as, from the course taken by the right honorable gentleman, my vindication of the conduct of the government is limited to a particular point, I can only repeat for myself and my oulseanes that we shall be perfectly prepared to defend the course we have taken if the subject of government con- tracts is brought formally under the consideration of the House. (Hear, and cheers.’ Mr. Macurer said that, in dealing with the Gal- way packet service, every attempt had been made to stir up local jealousies. In Irels the feeling was strongly in favor of the establishment of the line. He was himself an inhabitant of Cork, and he had naturally a strong feeling in its favor. He be- lieved that the Cork harbor was the best in the world; but the success of the Lever undertaking had at least been attended with this benefit to Cork, that it had directed the attention of all parties engaged in transatlantic communication to its unrivalled natural advantages. The Liverpool steamers now often called at Queenstown, and by that means several hours were saved in the convey- ance of the mails between this country and Ameri- ca. He beldeved that if the present’ government were to attempt to annul the contract with the Le- ver company they would incur—and justly incur— the indignation of every portion of the people of Ireland. (Hear, hear). That country contributed its fair share to the imperial taxation, and it had a sright to a full share in the outlay of the public money. Whatever might be his feeling in favor of his own port, he was anxious to FS fair play to Galway, and to allow the peonis of that port to en- joy the legitimate fruits of their enterprise. (Hear, ear). Lord J. Browne said that a sum of about £1,000,- 000 was annually voted by that House for the con- veyance of our foreign and colonial mails, and he saw no reason why Ireland should not have a share of that money. Hitherto it had all been expended in England; and it was not until Galway had been allowed to participate in the advan- tages of the system that it had become in any quarter the subject of the slightest animadversion. The government had entered into-a contract with the Cunard company, which excited no opposition, by which they bound themselves to make them an annual allowance of £173,000 fora period of eight or nine yeas; and yet English patriotism now boiled over because a much smaller sum was to be given for the conveyance ofa mail from an Irish port. (Hear.) Let the House look for a moment at the advantages offered by the ports of Liverpool and Galway. At Liverpool a Cunard steamer had been known to be detained outside the harbor fora pedod of eight or nine hours in consequence of the state of the tide. No such inconvenience could occur at Gal- way. There was a saving of between 300 and 400 miles of sea passage by adopting the Galway route; that space could not be traversed in less than about aday and a half; and, although there was a greater amount of railway travelling by the Gal- way line, it ensured the saving of a day in the whole journey between England and America. The establishment of the Galway route was also at- tended with this important advantage, that it af- forded great facilities fer the conveyance of Irish emigrants to America. Ifthe House were to annul either of the two contracts, why should they net select the Liverpool company for that extreme ex- ercise of their power? The CoaNceLLOR OF THE Excrequer said that some points had been raised in the course of that discussion which he felt it his duty briefly to notice. An impression seemed to exist in the minds of some gentlemen that a portion at least of the English members were jealous of Irish enterprise. But he was persuaded that no such feeling existed on the part of any of the members of that House; and that, from whatever part offthe country they came they all gladly welcomed every indication of pros- perity either in England, in Ireland or in Scotland. (Hear, hear.) But the suspicion to which he refer- red was one of the evils inseparable from the grant- ing of public subsidies of that description. The in- evitable result of such a system was, along with other secondary a ae el the introduction of a painful rivalry and a conflict between the claims, or the eupposed claims, of different parts of the kingdom. With regard to the order of proceeding at committee, he ventured to anticipate that in consequence of the obvious conclusion of the case, and with a full recognition of all the obligations, whatever they might be, the country had contract- ed, it would be expedient the committee should inquire at a very early period into the Galway contract. After so much had been said bothin condemnation and in defence of that transaction, it was eminently desirable that it should, without any unnecessary delay, be brought under the re- view of the committee. At the same time he ad- mitted the force of what had fallen from his right honorable friend the member for Portsmonth (Sir F. Baring) with respect to the inexpediency of their making a grant for the Dover contract until they should have received the opinion of the com- mittee aes that subject; and it would be well perhaps that the committee should give their early, possibly even their first, attention to that limited case, and that his noble friend the Secretary to the Admiralty (Lord C. Paget) should, in the mean- time, postpone that vote, if such a course could be adopted without inconvenience to the public ser- vice, Mr. Brasisn said that after the statement of the right honorable gentleman he would not press his amendment. The amendment was accordingly withdrawn, and the motion was agreed to. SEIZURE OF BRITISH GUANO AT BALTI- MORE. In the House of Commons on the 7th of Jaly, Mr. D. Seymour asked the Vice President of the Board of Trade whether it was true that the British ship Laurel, laden with a cargo of guano, had been seized at Baltimore, and if he was informed as to the circumstances attending the seizure; and whether he was in a position to state the Ate if any, upon which such seizure was justified by the American authorities. Mr. Wixson said, in the first place, it was not the ship but merely the cargo that had been seized. The circumstances were these:—A British vessel was chartered to convey a cargo of guano from a smallisland between Hayti and Jamaica to Bulti- more. Upon entering the latter port the cargo was seized by the Custom House officers, but not the chip. It appeared that the Custom House officer was not in the first instance aware of the cireum- stances under which the seizure took place, but on application to the Secretary of State's office he was informed that two years ago an act was passed b; the rato te of the United States to the effect that henceforth all discovered guano should be imported into the United States in American ships, and treated peter tley the same principles as the coasting trade. it consequently confined the trade to American ships, eee British ships. The Board of Trade considered that that was a distinct infraction of the rights of British shipowners under the treaties between the two countries, which gave reciprocal advantages in all cases to the shippin of both Nitta | the coasting trade; for this exception were to be made in the case of gu- ano imported from a foreign possession, there was no reason why the American government should not extend the same restriction to any other atti- cle, and thereby entirely repeal those obligations which at present existed between the two coun- tries as regards the foreign trade as well as the coasting trade. (Hear.) The course which the Trade pursued was to send a representa- ffice, which in order that this infraction of treaty obligatio: might ~ stopped before it proceeded further WHAT IS THE COASTING TRADE OF THE UNITED STATES. In the Commons Horse of Parliament, on the 8th of July, Mr. D. Seymour rose to ask whether the American government regarded the trade by sea between New York and California as a coastin| trade, when the goods are unshipped at ‘Aspinwall and carried across the Isthmus of Panama to be reshipped for California; and, if so, whether it was proposed by Her Majesty's government to address any remonstrance upon the subject to the govern- ment at Washington? The hon. member said that since he had given notice of his queation he had heard “ay ceed ee te been seized, upon the ‘round of an infraction of the coast ti Ered Statow ting trade of the T. WILSON was sorry to say he was informed that the cargo of another British vessel, consisting of guano, bad been seized upon its way from one port to another of the ports ef the United States, which was an infraction of the treaty between the two countries, The qnestion was one of great im- portauce to the shipping interest, aud, in the pre- sent depressed state of that interest, it devolved upon the Houee and the government to take spa- cial care that the existing arrangements between the two countries were fairly carried out. It would be recollected that the understanding with the Unit- ed States, which was embodied ina correspondence between the English Minister at Washington and the Secretary of State for the United States, was that the whole of the privileges conferred by the laws of Great Britain upon the oe of the United States should be conferred upon British ships by the Unit ed States, except as regarded the coasting trade. A very large and expansive meaning was at od by the United States to the term “coasting trade,” for thoy made it include the trade from the east coast of America, from New York and New Orleans round Cape Horn to California on the other side of the continent. He did not, at the present moment, contend that they were not technically right im that interpretation, because by the law of 1817 the coast- ing trade was declared to be the trade from one port in the United States to another, so that if a veesel were chartered from one port of the Unit- ed States toanother in one continuous voyage, it might be contended, by an extreme application of the term, that itcame ‘under the definition of the “coasting trade.” It was urged by the United States that a similar state of things prevailed in Ba- rope, and that when a vessel made a voyage from Havre to Marseilles, alone a part of Portugal nd Spain intervened, yet that she was engaged nthe coasting trade. It was therefore contended that the question was,.one of degree and not of principle. Admitting this, he must say that to cons- true as coming within the definition of the coasting trade a cargo sent from New York or New Orleans to Aspinwall, unshipped there, carried across the Isthmus, reshipped on the other side, and sent to Ca- lifornia, would be, both technically and‘in spirit, im- correct. That was, however, the general representa- tion of the ship owners. In consequence of the repre- sentations made to the Board of Trade, they applied to the British Consul at San Francisco, who now Han ened to be in this country. As at present advised, he should be disposed to say that the Eng- lish ship owners were under a mistake, and that it could not be construed as a coasting trade if goods from one port in the United States were landed om one side of the Isthmus, conveyed to the other, and reshipped to California. However, in order that no mistake should arise, and as by the increased facili- ties of communication across the Isthmus it was probable that almost all the shipments for Califor- nia would be conveyed across the Isthmus, the mat- ter became one of the greatest importance. The Board of Trade had therefore called the attention of Lord Lyons to the subject, with the intention of obtaining a satisfactory settlement of this question. Our Berlin Correspondence. Beriw, July 6, 1859. A Prospect of Peace—The Financial Barome- ter—Disaffection in Austria—A Catastrophe Apprehended—Martial Law in Hungary—A French Corps on the Way to Hungary—Dis- content Everywhere—What Will Peace Ac- complish?—The Return of the Austrian Em- peror to the Camp—Position of Prussia— Mistakes of Her Government—Raid on the Liberal Press—A Reaction—Prince, Windisch- gratz in Berlin—Russian Intrigue—Warlike Preparations, &¢., &c. ‘The pacific under current which I mentioned in my last as ronning through the troubled ocean of European politics is becoming daily more percep- tible, in spite of the tremendous armaments that are going on in every direction, and of the fright- ful scenes of carnage enacted at the seat of war. The Bourse especially is almost recovered from the panic it was seized with upon the breaking out of hostilities, fands and securities of all kinds are ris- ing with marvellous rapidity, and to judge from the optimism displayed by speculators, you would imagine that a treaty of peace was al- ready signed, and that the belligerents were just shaking hands and swearing eternal friendship. This impression originates not so much in the con- tinued successes of the Allies—although every fresh victory of Louis Napoleon sends the funds up considerably—as in the opinion that the internal condition of Austria will ren- der it impossible for her to prosecute the war, and force her statesmen to submit toa partial dismemberment of the monarchy in order to save the whole from dissolution. All accounts received from Vienna and other parts of the Aus- trian empire concur in painting the state of things in the darkest and most threatening colors, A few days ago it was asserted that a revolt had actually broken out in the capital; and although this turned out to be unfounded, it is certain that the disaffec- tion prevailing there has reached so high a pitch that a catastrophe may be hourly expected. From Hungary the intelligenge is still more alarming; serious disturbances have occurred in various parta of the country, martial law has been proclaimed, and Count Haller, who acts as Governor during tie absence of Archduke Albert, has informed his Court that without strong reinforcements he can- not hope to keep down the spirit of rebellion that is menacing him on all sides. Under these circum" stances, it is easy to foresee what effect will be produced by the landing of a French corps at Lussin- Piccolo, on the coast of the Hungarian Littoral, of which we were informed yesterday by tele- graph, and there cannot be a doubt that if the war continues a few weeks longer all Hungary will be in flames. A similar feeling is manifested in Gal* licia, in Bohemia and in Croatia. The system of centralization pursued by the Austrian government for the last ten years has had the effect of alienat- ing all the multifarious races subjected to its sway, who have been deprived of their ancient privileges and constitutions, which, though imperfect in them- selves, were endeared to them as forming part and parcel of their nationality. Even the Tyrol, which from time immemorial was distinguished for its fidelity to the house of Hapsburg, begins to show symptoms of dissatisfaction, and the appearance of Garibaldi on its frontiers has been insufficient ta rouse the loyalty of a population disgusted by @ long course of oppression. It would seom impos- sible that even the traditional stubbornness of the Austrian Cabinet should be able to hold out against such an accumulation of difficulties, or refuse to make concessions that may avert the ruin which is staring them in the face; but the question arises whether it is not already too late. Will a peace hastily patched up suffice to allay the agitation that is convulsing the empire from one extremity to the other? Will the Hungarians, the Poles, the Sclavonians, disap- pointed in their hopes of liberation, encouraged by the example of italy, and at the same time filled with contempt for the military power of Austria by’ seeing it utterly prostrated in the course of a two months’ campaign, be content to waive their high wrought aspirations, to forget their ideas of national independence, and to sink once more into the submissive vassals of a disgraced and humi- liated, but still arrogant master? Unless we are prepared to answer theve questions in the affirma- tive, we must consider the pacific expectations en- tertained just now in influential quarters, and the public oceans least Promatare. It not unlikely that the Emperor of Austria, or rather his sdvisers—for he is a mere puppet—might acquiesce in the loss of their Italian previnces, if they were well assured that by so aeing they would secure the quiet possession of their remaining territory; but they are aware that the existence of an Austrian monarchy is looked upon by many of the chief statesmen of Europe as @ mnecassary ingredient in the balance of wer, and they do not despair that it reduced to the utmost extremity, not only Prussia and Germany, but England and even Russia, will interfere to rescue them from destruction. The sud- den return of Francis Joseph to the camp, from which he had fled with such precipitation after the defeat of Bolferino, would seem to indicate, too, that the about to resume active once! and Ishould nobbve surprise if, instead of the armistice that has been’ ed of on ‘Change for several days past, we m hear of another great battle having etween the Mincio and the Adige. re sincerely anxious for peace, and no one, Austria herself hardly excepted, would ita early conclusion relieve from ahr embarrasa- ments than the government of this country. It igan undeniable fact that the mobilization of the Prussian army was undertaken with a view to im- mediate hostilities ein France, contingant upon the rejection of an inadmissible ultimatum. Up to the battle of Magenta the Prince Regent nad re- mained a passive spectator of events; he naturally felt hurt at the disregard with which his advice had been treated by the Cabinet of Vienna, and in- dignant at the violent language indulged in by the Austrian and philo-Austrian ress in reference to the policy of his government, besides which he had @ high opinion of the Austrian army, of whose perfect discipline and precision in all the minutie of the service he had often been an admiring witness, and he had no fears but that, even it repulsed in their ua A A A le TC BS: IC ba ———— ee A