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4 NEW YORK HERALD. JAMES GORDON BENNETT, EDNOR AND PROPRIETOR. orrign ‘W. CORNER OF FULTON AND NASSAU SEW. = 02 ei Volume XXVI......sccsscesseerecoveres NOs BBR a ——— AMUSEMENTS THIS EVENING. ‘WINTER GARDEN, Broadway.—Mz Naicusor's Wire— Toopius—Finst Nica. ° BARNUM'S AMERICAN MUSEUM, Brondway.—Dny ‘and Evoning—Stark Peisomen—Auryul Dopaw—Htrrdro- taxuséin4 Dion, Bears, ato OTuxm Curiosrrixs. RYANW'S’ MINSTRE! Mechanics’ 472 Broad. waybowat in OLD pied — MELODEON CONCERT HA! No. _— Sonas, Daxcus, BuaLesquas, &0.—CuiLD OF TI EOIMENT CANSERBURY Music HALL, 885 Broadway.—Soxas, Daroxs, BUnpesquas, dc. 8 GAIETIBS CONCERT ROOM, 616 Broadway.—Daawina Room Enrentauments Ba.iets, Pantommmes, Faxcxs, &c. AMERICAN MUSIC HALL, 444 Broadway.—Sonas, Bar ‘Lars, Paxtomimes, &0.—Porwtart Painree, CRYSTAL PALACE CONCERT HALL. No. 45 Bowery.— Bour.xgques, SoMbs, Dances, £0.—M. Bau. New York, Wedne ne ——— THE SITUATION. Everything around Washington continues peace- @ble. All rumors of an attack by the rebels at the Chain Bridge, or in other quarters, prove to be untrue, and for the present, at least, the capital ig unmotested. What the future disposition of the rebel army may be remains to be seen. A day or two, however, may bring forth some startling events, The organization of the army of the Potomac ia rapidly progressing under the vigilant control of General MoClellan. The Secretary of War has issued another important order—which we publish to-day—for the speedy construction of regiments aud parts of regiments, with a view to augment the army as fast as possible, by facilitating their muster into the service. ‘The administration of the eath of allegiance to government officials is developing some curious in” cidents. The Mayor of Washington, Mr. J. G. Berrett, upon being tendered the oath yesterday, as an ex qfficio member of the Police Board, re- fused to take it. ‘The court martial which has been trying Col. J. H. McOunn, of the New York Thirty-seventh regj- ment, for unofficerlike conduct, has found him guilty of the charges, and he has been deposed from his command of Colonel of the regiment, and broken of all military rank. In critical times like these misconduct i€ commanding officers deserves, as it has received in this instance, a peremptory rebuke and punishment. ‘The call for additional troops receives a ready response in all quarters. Governor Andrew, of Massachusetts, has issued a spirited proclamation to the citizens of that State, which we give to-day. Tho Western States are coming forward also with several regiments, Indiana offering thirteen in ad- dition to those already in the field. Active military operations continue in Missouri. We learn from Cairo that a battle took place on Monday night at twelve o'clock, at Charleston, be- tween the Union force, about 250 strong, consist- ing of the Twenty-second Illinois regiment, under command of Colonel Dougherty, accompanied by Lieutenant Colonel Ransom, of the Eleventh Ili- nois regiment. The rebel force was estimated at 600 to 700 men, and commanded by Colonel Hun- ter, of Jeff. Thompson’s army. The Union force was victorious, completely routing the rebels, killing forty and taking seventeen prisoners. Captain Haleman, with fifty mounted men, left Bird's Point at about six o’clock the same evening, for Charleston, to join the forces under Colonel Dougherty, but failed to form a junction with them. They met a party of rebels about one hun- dred strong, and gave them battle, killing two and taking thirty-three prisoners ; they also captured thirty-five horses, without the loss of a man. Rumors were rife at Jefferson City that an attack on that place was intended. There are three thousand five hundred Union troops thereto de- fend it. The rebels under General Price were said to be in possession of severalimportant positionsin the sonthwestern part of the State, such as War- rensburg, Johnson, Georgetown and Sedlia, in Pet- tis county. Gen. Siegel had arrived at Rolla. An officer with a flag of truce was despatched to seek the body of Gen. Lyon. Gen. Price, of the rebel army, has issued a bombastic proclamation to the citizens of Mis- souri, the purport of which is, that he is in com- mand of an army whose objects is to protect the homes and firesides of Missouri against the assaults of the usurper at Washington, and so forth. The town of Commerce, about forty miles above Gairo, which had been taken possession of by the rebels some time ago, was retaken on Mon- day night by a force of 500 Union troops sent for- ward by order of General Fremont from Cape Girardeau. The city of Galveston, Texas, was subjected to a pretty severe bombardment by the United States war veasels South Carolina and Dart, on Monday, the 6th instant. They continued to throw shells into the city for half an hour, do- ing considerable damage. The batteries on shere responded, and it was thought tha, the South Garolina had received some hurt, as it was observed that she was undergoing repuirs after the fight was over. The citizens of Galveston sent a protest on board, under a flag of truce, against the alleged violation of tho rules of war in shelling the city without giving notice to remove the women and children. These facts we Jearn from Southern sources. By the Canada, off Cape Race, we have news from Europe to the 11th of August. The Ameri- can question claimed undivided attention in Eng- jand, and the London journals are filled with speculations as to the probable issue of the con- flict, both as regards the fature rule of the North anfl South, and the effect of the blockade on the commerce of foreign nations. The London Post’ the government organ, observes that if England should “be compelled to drift into the quarrel” ‘the blame will rest with the government in Wash ington, which is “manifestly incompetent to main. tain” the blockade. Other papers take almost the same view of the subject. Two vesselshad arrived in Europe from the blockaded ports, vis:—the Ge- B08, from Savenpab, at Deal, and the Kaler, from | NEW YORK HERALD, WEDNESDAY, AUGUST ZI, 1861. ‘Now Orleans, at Barcelona, The London Times publishes another letter from Mz. Russell en the battle and reteeat of the Union army from Bull rn. THE NEWS. The steamship Canada, from Liverpool on the 10th and Queenstown on the 114h instant, passed Cape Race, on her way to Halifax and Bosten, on Monday afternoon. Her news is two days later than that received by the Bohemian, and our report has been telegraphed from St. Johns, Newfound- he Liverpool cotton market remained quiet on the 10th instant, at firm prices. Breadstuffs were heavy and the rates drooping. Consols closed on the 10th instant, in London, a 9034 9 90% both for money and account. There was considerable fluc- tuation in the market for American securities in eonsequence of the war news. We publish the quo- tations for Illinois Central and Erie as ruling in Lon- don on the 3d, 7th and 10th of August, as follows:— ne 24 neta renee 39 ugust 7. 24 ‘August 10. 39-22%, 0 2282 The gencral European news summary by the Ca- nada is nnimportant. By the arrival of the brig A. B. Cook, Capt. Perkius, at this port, from Bathurst, west coast of Africa, July 9, we learn there had been a large fire at Yannejah, on the river Gambia, one of the principal points for the collection of ground nats. Prices had risen very much in consequence, Capt. Perkins reports:—‘‘ On Sunday night, August 11, at midnight, saw a ship on fire, bearing N. N. W. of us, Kept off for her, the wind at the time being very light. At daylight she was about nine miles off. She appeared to be an American ship of about 1,200 tons. Her spars were gone, and she seemed to be completely burnt out. At eight A.M., when we were about four miles off, she sunk, in latitude thirty degrees, longitude sixty degrees, ten minutes. The weather was very clear, but saw no boats nor any signs of the fate of the crew. Sailed for the place where she sank, and picked up royalmast and yard, with half the sail attached.” By the arrival of the Santiago de Cuba, we have dates from Havana to the ith, St. Domingo the 3d, Vera Cruz the 1st inst. and the City of Mexico to July 29. There is nothing important from Havana or St. Domingo, but the news from Mexico is as bad as can be. Murder, rapine and desolation reign with full sway. To make bad worse, while the distracted government is doing all in its power agdinst its ferocious enemies at home, the French and English Ministers have taken umbrage at the two years’ stay law—a measure of absolute neces- sity—and have suspended diplomatic relations with Juarez. Hon. Mr. Corwin, United States Minister, has very sensibly refrained from joining with those personages in their unreasonable conduct. The news in full we give elsewhere. News from St. Domingo is to the 3d inat. On signed to operate against the Navajo Indians and to relHove tyro or three companies of the Fifth in- fantry of the regular army, who have been order- ed to the Northern States. Company G, of the Fifth infantry, had left for Santa Fe and Fort Union. The two regiments of New Mexican volun- teers, called out for three years to aid in suppress- ing the rebellion, were nearly all mustored into service. New Mexico still stands inflexible for the Union, The Indians continued to be troublesome. Lively times were expected in the Mesilla Valley, as present indications show that a conflict must ensue there between the rebels and the Union interest, The Normant Cotton Fastory, located near Boll. var, Tennessee, one of the largest manufacturing establishments in the South, was destroyed by fire on the night of the 8th inst. Loss $25,000. The Portland Argus (secession) takes sides with the Dana democracy of Maine. This is the wing that denounces the present struggle to maintain the Union as an ‘‘infamous war.’’ With centinued-heavy receipts of beef cattle, the opening day at Allerton’s has been rather dull, and prices ruled nearly half a cent lower, ranging from 6 to8 conte per pound, with only afew sales at over 734 cents. Veals were steady. Sheep and lambs were in fair demand at prices substantially the same. Swine were more plenty, dull and near- ly one cent per pound lower, corn fed selling at four cents for the best. ‘ihe cotton market continued to rule quite firm yester- day, while tho sales embraced about 700 bales, closing on the basis of 18c, a 1814. for middling uplands. The flour market wat fi 50. To 100. por barrel lower for common and medium extra grades, with a fair domestic and export demand, Wheat was heavy, and from le. to 2c. per bushel ower, while a good demand existed for export, chiefly to France. Coun was casior, but: moro active at tho conces- sion, with sales chiefly for export to British ports. Pork was heavy, but tolerably active, with sales of mess at $15 a $15 50, and at $10 for prime. Sugars wore active and firm, with sales of 2,500 hhds., chiefly Cubas, mt rates given in another column. Coffee was firm: A cargo of 2,500 bags of Rio was sold on private terms, and 250 mats Java at 19c. The stock of Rie comprisdd 125,254 bags, and of all kinds 147,513 bags, Freights were steady, with shipmonts of considerable quantities of grain at unchanged rates, The advance in naval stores recently have been most extraordinary. Before the blockade spirits turpentine sold at 360. a 400. Yesterday it brought $1 65 a $1 673, to $4 70 asked. Common rosin, which sold at about $1 50 a $1 60 por barrel, sold at $5. Crude turpentine, which sold at $2 75 8 $3, was sold at $10. Every cargo which has run the blockade from North Carolina must have realized large profits. ‘The Government and the Press—Mr. Chase in Wall Street. When enlightened governments of highly ci- vilized nations, like England and France, have been, within the last quarter of a century or more, on the eve of embarking in any grave political negotiation, or venturing to hazard that day the Governor General of Cuba arrived in the Bay of Samana, He was received with the usual ceremonies, and the peoplesare represented to have manifested “the greatest demonstrations of joy.”” The health of the troops at Samana was not good. Gen. Santana was sigk, but not seriously. Everything was quiet. The frigate Berenguela, corvette Mazarredo and two transports were in.the bay. His Excellency the Captain General left for the capital the same evening. Foreign ship owners and importers Have mani- fested much anxiety recently regarding the inter- pretation of the third section of the late Tariff act, and opinions differ regarding the legitimate con- struction to be put upon it. They contend that al; though the ten per cent is imposed as an additional duty on goods under certain circumstances, and not as tonnage dues, it nevertheless indirectly operates as a tax on foreign shipping and discrimi- nates to that extent in favor of American vessels, which if levied directly would contravene existing treaties with France, England and other Powers. The section of the act referred to is in the follow- ing words:— Sec. 3. And be it fusther enacted, That all articles, goods, wares and mercharidise, imported from beyond the Cape of Good Hope in foroign vessels, not entiled by re- ciprocal treaties to be exempt from discriminating duties, tonnage, and other charges, and all other articlts, goods, wares and merchandise not imported direct from tho Place of their growth or production, or in foreign vessols, entitled by reciprocal treaties to be exempt from dis- criminating duties, tonnage, and other charges, shall be subject to pay, in addition to the duties imposed by this act, ten per contum ad valorem: Provided, That this rule shall not apply to goods, wares and merchandise im- ported from beyond the Cape of Good Hope in American vessels. Importers and foreign ship agents and owners have made application to the Collector of the port for his opinion in regard to the legitimate construction of the law, who, however, ex- pressed himself as unable at present to give a decision. Itis said that the Secretary of the Treasury has been appealed to, and that an answer from him is expected to reach here in a few days. The subject is deemed to be one of much importance, both to American and foreign ship owners. Should it prove adverse to the lat- ter, it will, it is said, seriously affect the interests of foreign steamers and other vessels running to ports of the United States, and cause much dissatis- faction. Parties interested were very anxious to ,have received an answer frem government yester- day, in time to have sent it out by the Canada, from Boston. A special call fora meeting of the Board of Aldermen has been issued for this (Wednesday) evening, at five o’clock. A comparison of the aggregate number of killed, wounded and prisoners on both sides since the commencement of the present troubles, in all the battles and skirmishes which have taken place, show more favorably for the North than is gene- rally supposed. In looking over the accounts of the various battles that have occurred we find the whole number of killed, wounded and prisoners reported as follow, with the exception of the loss sustained by the rebels at the recent engagement in Missouri, of which we have no account, and we give the number the same as our own, although there is no doubt it was mftch greater:— Urtion ret Rebel Loss. Killed. . 1,139 Woundét 1,844 31129 1216 1243 INA os scot recesceca nity 3,828 5,503 It is reported that a council of war was recently “held in Fortress Monroe at which a plan was pro” posed and adopted to destroy the city of Norfolk’ It was shown that the place could be fired at two hundred difterent points, which would render the conflagration certain. Gen. Butler, it is said, ex- pressed himself in favor of the plan, and communi- cated the decision of the council to the War De- partment in Washington. The government has a station at Principio, in Cecil county, Maryland, where they intend to lo- cate four thousand horses and a large number of army wagons and ambulances. Arrangements will be made to ship from that place to any point where most needed horses and wagons on the shortest notice. Governor Curtin has issued an order, dismissing from the service of the State the disaffected men of Colonel Mann's regiment, and directs their names to be published. All mustering officers are also directed to prevent their re-enlistment in any of the regiments now forming for the defence of the country. It is reported that the Grand Jnry, at the hold- ing of the United States Circuit Court in Trenton, New Jersey, in September next, will present the Trenton American, Newark Journal, Paterson Register, and two or three other papers for treason. Letters from New Mexico to the St. Louis Re- publican state that, on the 22d of July, two compa- nies of the Second regiment of New Mexican volunteers would leave the camp at Albuquerque for Fort Fauntleroy, whore they have been as- some mighty military enterprise, it has become an understood necessity thatthe representatives of leading journals should first be entrusted with the knowledge of the events in the course of preparation, and that their patriotic co-ope- ration should be secured for such measures as were about to be inaugurated. Ministers of State, to whatever party they may have be- longed, and rulers not less far-sighted and wise than Napoleon IIL, Lord Palmerston and his predecessors, since the time of Castlereagh, have unfolded their plans in the utmost detail to those who exercise so large a degree of influ- ence over public opinion, and have had the sa. gacity to comprehend that the press standing midway, as it does, between the people and the administrations of the day, has grown into an institution which is one of the most important elements in the fabrid of modern society. Aid- ed by statesmanlike and leading newspapers, government can effect any legitimate and proper object. It can rely, through them, upon the good will and. support of the masses of the community, which oan be obtained by no other means. In the United States of America, no adminis- tration has raised itself, as yet, to the high point of broadly comprehending its own exi- gencies, and the succor it may derive from re- liance upon the honor and public spirit of the independent press, While every one acquainted with the inside workings of European Cabinets, is aware that the Crimean war, as well as the later struggle in Italy, were paved the way for by popular journals, whose leaders had been taken into the counsels of the English and French governments, here, where the liberty of the press is perfectly unrestrained, newspapers have comé' to be regarded as the mere re- echoings of the narrow-minded views of petty: local politicians, and, through the very distrust in which they have been held, they have failed to reach the level they are entitled to, of knowledge, integrity and statesmanship. Under the dominion of the old parties into which the country was divided—whig and democrat— and from the beginning of the present century down to the departure for Wheatland of our last Ghief Magistrate, the same mean, fettered and contemptible idea has prevailed concerning the vocation of the public press, and it is much to be feared that both Mr. Lincoln and his Cabinet, are controlled by equally small preju- dices, and are foliowing a track which is cer- tainly impolitic and in many cases must prove dangerous, with rospect to a power from which it should never conse to invoke assistance. A few days ago, Mr. Chase, one of the ablest and- most intellectual of Mr. Lincoln’s advisers, visited our city for the purpose of consulting with Wall street capitalists over the affairs of the nation. He made speeches to them and confided to them the knowledge of the measures by which the administration hoped to re-esta- blish the integrity of the Union, provided the pecuniary means of doing so were placed with- in their reach. Nothing could be more proper and judicious. The moneyed men of, New York, Boston and Philadelphia are the representatives of the aggregate surplus of capital of the North- ern States. They are the reservoirs of wealth from which the government must replenish its* coffers, and reinvigorate its strength. If they give their money, however, they have a right to know for what purpose it will be used, and to be assured that it will be properly expended by the Departments of War and the Navy, through which the greater portion of it will pass. But, while the Secretary of the Treasury performed what was incumbent on him, in this respect, and even told some of our capitalists to whom the Secretaries of War and Navy had given out their contracts, he utterly overlooked an obli- gation which never Would have escaped a Bri- tish Chancellor of the Exchequer, namely that of calling around him the leading representa- tives of the press of our largest cities, and ad- vising and coming to a fitting understanding with them. No government can ever put itself into direct communication with the people at large. Nolens volens, the newspapers of the land must be the intermediaries between the authorities and the community. The iadependent press, moreover, of the North, and especially of this metropolis, has attained a degree of power and enlightenment, which causes its views to be looked up to with a deference which no administration can acquire unaided by it. It occupies the position of perpetual Congress, and the measures upon which it agrees are invariably adopted, before any considerable lapse of time. It was a fatal error, therefore, on the part of Mr. Chase, to haye passed over the journals of this city as he did, and not until American governments emu- late the example of the more civilized nations ef the Old World in their treatment of the press, can they expect to secure any permanent hold upon public estimation. The English Press and the War. e Since the news of the battle at Manassas reached Europe the English press and the Eng- lish government have displayed more of their malignity than ever to the American people. It is not that they exult at the victory of the South, but that they exhibit their hatred of North and South alike, and cannot conceal their joy that ‘both sections are now committed to a deadly struggle in which they will use each other up for the special benefit and amusement of John Bull. British statesmen and journalists now think they see their long-cherished object fully accomplished—the permanent division of the American Union. For thirty years they have labored to bring it about by thelr anti- slavery agitation in Exeter Hall and by their emissaries sont out to this eountry; and now that North and South are embarked in the deadly feud, and that Lord Palmerston, Barl Derby, the London Times and other lead- ing representatives of the English aris- tocracy of birth and the aristocacy of wealth believe they have succeeded in breaking up this great republic, they cast their anti- slavery principles to the winds, and, while pro- fessing neutrality, really favor the South. They have no sympathy with either side; but, by in- | directly backing the South up to a certain point, they calculated that section would be so encouraged as to commit itself to a mortal struggle with its Northern antagonist, and that thus a permanent schism of the republic would be effected. Thoir assumed abolition zeal is no longer necessary, and therefore we find it sud- denly extinguished. And now, on the other hand, lest the break- ing of the blockade by the English squadron should have the effect of compelling peace by aiding the South, the British government will not meddle with the blockade. So we are in- formed by the London Times. They will mus- ter all the cotton they can get from every other part of the world, and they will try to make England independent of the American staple, Rather than take such action as would bo likely to force peace, they would advance to the cotton spinners as much money as the last war in India cost them, so as to enable Manches- ter to purchase the fibre for immedisite use with eash in China, Africa and other countries, till an abundant supply is stimulated and another system of credit is organized. The crafty Bri- tish statesmen will not, therefore, break. the blockade. They desire not peace among us, but exhausting war. They have sold and deluded the South by holding to its ear a promise of aid which they will break to the hope. By their Machiavellian wiles they have encouraged both sections of the-country to wage a war af mutual extermination, and now they mock both and chuckle with delight at their own suceess, They selfishly gloat over the misfortunes of the nation because they think they will thus get rid of a hated naval and commercial rival, and at the same time the contagious example of suc- cessful democracy. In continual fear of revolu- tion from the action of their own masses, they conclude that the effect of the civil war in this country will be to check for years to come the principles of republican government in Europe, and that a respite is given to a doomed oli- garchy. Hence their self-congratulation knows no bounds. They have sent out here vagabond corres. pondents, equally remarkable for their drunken | habits, their mendacity, and their meanness in borrowing money which they do not repay, but on the contrary, abuse in their letters the victims of misplaced confidence who had relieved their necessities. These fellows ridicule North and South with perfect impartiality. Their cue is to lower and debase the character of the whole country. What is the duty of the goverment and the people of the free States under these cir- cumstances? It is to put forth every effort to defeat the rebel army in the next great batile. If this is done a victory for the North is certain, and the experience we have gained at Big Bethel, Bull run and Davis creek is not in vain. The next turn to win is rightfully ours; and old scores being thus wiped out, and the sting of Southern superiority in arms extracted, let arrangements immediately be made for the restoration of peace, instead of continuing an insane and suicidal strife for the amusement of England, France, Spain and all the naval Powers of Europe. IntRopvction or THE Passport System.—We have made another step in European civiliza- fion, and the passport system, once thoroughly in vogue, will very likely become a permanent institution. The State Department has apprised all whom it may concern that no person will be allowed to go abroad from a port of the United States without that torment of European travel- lers—a passport, either issued from that source or countersigned by the Secretary of State- Moreover, no one will be allowed to step ashore in the United States without a similar document from a minister or consul of this or some other government to which he may claim allegiance. The latter part of this notice will, ef course, not come into operation, unless in special instances, till sufficient time has elapsed for its becoming known in the countries from which passengers may come. The effect of this measure will be that the free passage to and fro of rebél agents will be interrupted. This salutary check upon communication between Richmond and Europe is not imposed by any means too soon, nor without sufficient rea- son, as recent occurrences have clearly demon- strated. No complaints need, therefore, be made about the public inconvenience of the system, It is one of the many and smaller evils which inevitably attend a state of war. RestGvaTion OF THE VOLUNTERR OFFICERS.— Among the list of two hundred and fifty officers in the volunteer regiments who have, under the new order of things at Washington—which is changing our army from a political to a military standard—resigned, one hundred and seventy-se- ven—or more than two thirds—are from the State of New York. What better evidence does the pub- lic desire of the demoralizing work of the late Military Board? How many of these. officers return with a physician’s certificato like that eaid to have been given to a certain Colonel, certifying that they are suffering with disease of the heart in their logs, we ere unable to say. Tr Cuamons AGatnst rue Canrrer—We re- cently published an article from the Albany Evening Journal, marked with indignation and sarcasm against certain members of the Cabinet. A few days later it was published in an organ of the administration in this city, accompanied with lengthy comments, commendations, &c. ‘What is the cause of this virtuous attack on the part of these journals? Why should the Albany Evening Journal and the World, whose religion is the almighty dollar and their church the inner circle of the lebby, just at this moment use so harsh language against two members of the Cabinet who, by virtue of the war, have a large amount of patronage at their disposal, and let Messrs. Seward and Caleb B. Smith, who have no patronage, go free? Upon reflection we have come to the conclu- sion that there is more in this clamor than is seen on the surface. A more careful considera- tion causes us to look with distrust upon those bitter denunciations, originating with the Tritune and Times, followed up by the Union Defence Committee and con- tinued by the Hvening Journal and World. The circumstances connected with this outcry look very mygh as though there was an African of large dimensions hidden away somewhere under all this. As to Secretary Cameron, he is the wealthiest man in the Cabinet—probably worth one million and a half more than all the rest: he certainly does not want tomake money out of the war. He may havo some of the old friénds of Buchanan in Pennsylvania, who deceived, cheated and disgraced that ex-Presi- dent, now hanging around his department, and playing tho same game that they did with Buchanaa. As for Welles, we doubt if he has wi enough to tell whether he is doing things right or wrong. ‘We would like to see the whole matter tho- roughly investigated. Whenever it is, it will be found that the military and naval authorities are responsible for the recent failures; but when General Scott, in his statement to the President, declared himself a coward, he placed the responsibility on the wrong shoulder. Gen. Scott coward: there is not a particle of that element in his composition. He has, however, been guilty of blunders, and We are glad to see,him superseded by Gen. McClel- lan. As to the navy, it will turn out that the Na- val Commissioners are the responsible parties jn that arm of the service, or else we mistake the evidence that is to be seen everywhere. The best mode for a complete reconstruction of the Cabinet would be for Secretary Seward to take the same course that Van: Buren did in the first Cabinet of Jackson—take up his hat and leave, and invite the other Secretaries to follow. as See Geveras, Joun E. Woor.We notice that the arrival of General Wool at Fortress Monroe has increased the confidence of the troops in that vicinity and awakened a new zeal amang them. The General is one of the best officers. of the army, and, althoughgsmewhat advanced in years isas full of vigor and activityas many at one half his age, and his being kept in retirement at Troy by the government, when his serviees were so much needed, has been one of the blunders of the administration. Had he been placed in charge of the army at Washington, in the place of McDowell, he would have placed those forces under. a discipline that would have brought about a far different result than that which met our army at Bull run. Or even had he been placed at Fortress Monroe at the time that Butler was sent there, with the same force under his command, there would have been no Big Bethel blunder to record; on the contrary, he would have long since occupied Norfolk, Yorktown, and even been knocking at Richmond as soon as the Washington army reached Bull run. It is known that he had prepared a plan to save Norfolk from the destruction that befell it and the benefit that the rebels have received by coming in possession of the three thousand cannon stationed there, and would have car- ried it out in time to have saved the men-of-war at the Gosport Navy Yard, if he had not been hampered by the jobbers at New York and else- where. But he is there at Fortress Monroe at last, but not until after all the damage that could be done has been accomplished, and we fear that the government do not intend to give him a sufficient force to accomplish anything, but compel. him to act on the defensive. He should have reinforcements at once, and if a large force is placed under his control we will guarantee the most favorable results. Fortress Monroe is unquestionably the basis for opera- tions upon Richmond. The rebels have been looking for the advance of our army from Wash- ington, and there are their main army and best generals. A sufficient force should be forth- with raised, pot only to strengthen the army ut Washington, but to give Gen. Wool all that he wants at Fortress Monroe, and but a short time will elapse before some of the rebel army now in the vicinity of Washington will be compelled to return to James river to prevent Richmond from falling into the hands of General Wool. -If the administration wish to redeem them- selves let this be done without delay. Tue GOVERNMENT AND THE SLAVBRY QUES- TIoN.—In another column will be found a report of an important speech of Hon. Caleb B. Smith, Secretary of the Interior, delivered in Provi- dence, Rhode Island. It derives its chief value from the fact that it is the utterance of a Cabi- net Minister, and probably expresses the senti- ments of the majority of the Cabinet. @ertain. ly we have seen nothing as yet to indicate the contrary. In this speech Mr. Smith declares that the war is a war for the restoration of the Union and the vindication of the constitution, and not to abolish slavery. He says:— ‘The theory of thie government is, that the States are sovereign within their proper sphere. ‘The government. of the United States has no more right to interfere with the institution of slavery in South Carolina than it has to interfere with the peculiar institution of Rhode Island, whose benefits I have enjoyed today. *** Wo make no war upon Southern institutions. We recognise the right of South Carolina and Georgia to hold slaves if they desire them. This is very decided and very explicit. None can mistake its meaning. But though such is the voice of the administration, it cannot be denied that there is at the North a powerful and rampant anti-slavery faction whose darling ob- ject is the overthrow of the Southern institu- tion, and who would prefer separation to-mor- row if they could not accomplish it. This faction is represented by Greeley, Garrison, Phillips, Beecher, the Independent and other radical chiefs and journalists. They are doing their utmost to drag the administration into their plan. But the government well knows that it is impracticable and never could suc- ceed, The conservative masses of the North would not tolerate it. As for the relianoe of abolition fanatics upon servile insurrection, it is utterly futile. With the armed power of the South in the hands of the whites there could no ee, More be an insurrection there than there could be a seditious rising of mobs here. ‘The military organizations are equally effectual in both sec” tions to suppress every attempt at revolt. ‘ pena 8 Comme to Cuosn Quanrers—Mos Law oa Maria, Law.—We publish elsewhere, extract- ed from the Daily News, a list of the so-called “peace newspapers,” in the Northern States. This is only another name, of course, for those journals which sympathize at heart with the South, and are endeavoring to disturb the ac- tion of the general government in putting 4n end to rebellion. Five of these papers have been recently mobbed, an indignant populace gutting their establishments from top to bot tom, in two instances offering violence tq the editors and setting an example of destructiom which, if followed to any great extent, would lead to anarchy. Yet it is right that something should be done to prevent the dissemination of sympathy with treason in the loyal States, an@ the constant propagandism of discontent with the war, in which this large portion of the preas isengaged. In the Confederate States, not @ voice is raised anywhere in opposition to the ime surrection, nor doos any one dare to apeak, much less write, in hostility to the acts of the rebey leaders. These latter are rapidly maturing their plans, and the indications are that the principal of their ebjects is to seize upon the national capital, and thenge divide the Northers: States in sentiment, and indace an acquiescence in the overthrow of the constitution, through the aid of these very journals, which now pre- tend to be simply in favor of peace. It ise therefore, of the utmost importance that. they should no longer be permitted to divide our counsels, and that they sliould in an efficteat manner be prevented from distilling their subtle poison in the public mind. Mob law we are totally opposed to. Every good citizen must regard it with abhorence. Under whatever pretext its assistance may be invoked it establishes a precedent for evil, which tends to universal disorder and aims « blow at the very basis upon which society rests. On the other hand, the secession sympathizers of the Northern press, do not violate any exist- ing statute. They cannot be reached under the code, and, ina certain measure, they are pre- tected by the constitution itself in the mischief they are doing. It is, therefore, incumbent upon the administration to proclaim martial law at once. Just as it has been done in St. Louis and Baltimore, let it be put in force here, It will find an abundant number of subjects te work upon, and its first energies should be directed against our so-called “peace” news- papers. Their offices should be closed, one and all. If they continue their work of disturbanoes the insurrection may be looked for, sooner er later, in the Northern States, which Jefferson Davis and his associates have counted on from the beginning, and government will only have itself to blame for having neglected the precau- tions that would have prevented it. Revivat or Brsiness.—A sufficient time has not elapsed since the recent government loam was taken to see any of the beneficial results that will accrue from it, nor need we expect te see any great revival of business until the middle of September or the Ist of October. The entire business of the country has been eo prostrated by the rebellion that its revival is not the work of aday or an hour; but that a change for the better will soon take place is as plainly to be seen as thattwo and two make four. The expenditure of a million per day by the government among our own people cannot fail to bring about great results in the business of the country. New channels of trade, however, will spring up from this expenditure. Those large firms and jobbing houses which have failed will not revive; they are gone beyond re~ surrection. We are on the eve of an entire change in our commercial system. The absorp~ tion of this loan at home, and its expenditure here, will bring about, in the place of large gs™ tablishments importing from abroad, a revival of the manufactories. Our woollen, cotton, iron, and those necessary for the war, will be the branches of trade that are going to be benefitted by the operations of this loan; and the country may look for an activity in these industrial pur- suits such as has not been witnessed before in the history of our country, and that, too, at no distant period. In the meantime a wonderful change and complete revolution will continue in New York. Those large and magnificent marble stores in Broadway and the palatial palaces in Fifth ave- nue will continue to reduce in price, and will never be worth within fifty per cent of what they were before the crisis. The smaller houses, the first class tenements and property in adjacent streets, will increase in value and continue to bring in permanent incomes to their owners, The only large and extensive business—on the scale of the importing and job- bing firms that have gone under in the financial distress—for some time to come will be the beef contractors, pork contractors, clothing contractors, and all others connected with the prosecution of the war, including the contrac- tors of shoddy. It will be necessary, however, for the government to keep out a vigilant eye, and see that their contractors do not cheat the government and rob the soldiers with their Toguery. Symprovs or Every IN THE GOVERNMENT.— By telegraphic intelligence published in yes terday’s Heraxp, we learn that the government have ordered the arrest of Pierce Butler, ona charge of treasonable practices. There is also a rumor of the arrest of Wm. B. Reed, late Minister to China; George W. Wharton, late United States District Attorney; Charles Brown, ex-Collector of the port, and David Saloman. As to the latter gentlemen the intel- ligence is as yet premature, but how soon it may be true none can tell. In Philadelpbia there is a knot of conspirators who wouh? gladly foment an insurrection in Pennsylvania in order to create a diversion and promote the designs of Jefferson Davis upon Washington. The men named have been hitherto leagued with the Southern secessionists and have played into their hands. We would not be surprised to hear soon of the name of Mr. Buchanan being added to the list. Ho gave aid and comfort enough to the enemy when in office by permit™ ting Floyd to transfer the federal arms and mu- nitions of war to the Southern States, and by permitting South Carolina to environ Fort Sumter with such powerful batteries that its fall was inevitable. Would it not be curious -President ether with ei syecideat ‘Pierce, of Now Hamtehire Caleb Cushing and all that crowd? Let martial law be proclaimed at all points where it may be necessary. Without pn oe: and energy the government will be defeated. But from the symptoms we now observe, we anticipate not digraceftl defeat, but glorious victory.