The New York Herald Newspaper, June 13, 1862, Page 4

hi ‘ JAMES GORDON BENNETT, KDITOR AND PROPRIETOR. jorricen. W. CORNER OF FULTON AND NASSAU STS. TERMS cash in advance. Money sent By mail will be at the othe sanier “Nonabut Bank’ bills current in New ork THE DAILY HERALD, two centeper copy. $7 per annum, THE WEEKLY HERALD, every Saturday, at six cente fer B87 annum: the Buropean Baition story W. i, {3 cents par copy. $A per annum fo Great Britain, part 0 $6 2 to. ‘of the Continent, both to include postage; the fuivornia kn hei Tith and 21s¢ af each month, at siz (a per copy, oF $3 TB Der anna, mente FAMILY HERALD, on Wednesiay, at four cents per j. OF $2 per annum. ‘OLUNTARY CORRESPONDENCE, eontatning important Rews, solicited from any quarter of the world: if used, will be Birally pat for. 'eg-OUn Fousian CounesronDeyrs ane 'ARTICULARLY REQUESTED TO SKAL ALL Larrers AnD Pack- AGES SENT UR — AMUSEMENTS THIS EVENING + ACADEMY OF MUSIC, Irving Place,—! Et ‘cACADEMY QF MUSIO, Irving Place.—Itailan Opera. ‘SIBLO'S GARDEN, Broadway.—Tuz Srxex. WALLAGR'S THEATRE, 844 Broadway.—Hany AxpY— ‘apr or Lyons, we LAURA KEENE’S THEATRE, Broadway.—Faxcnow, on tus Cricket. WINTER GARDEN, Broadway—Tux Wisinn’s Txu- » WEW BOWERY THEATRE, Bowery.—Tax Waistizn— WOmerorgorep fxxate—Tom anv JERRY. r) BOWERY THEATRE, Bowery.—Jzw or Norat Dau— Sen Luw—Woop Dzxon—Bavir Host. BARNUM’S AMERICAN MUSEUM, Broadway.—Basy juow—Com. Notr—Living Wuatw, &c., at all hours.— Your Lire's 1x Daxcze. SRYANTS’ MINSTRELS’ Mechanics’ Broad- ‘Way.—Biack Wizaxn's Tearzst. Sa Oe AMERICAN MUSIC HALL, Ni fs ‘Buareseues, Dances, &c. ps A Been sang Senay; "NEW NATIONAL THEATRE, Ct Dances, Bouixsaves, do. pepe Seeek- ome, GATETIES CONCER’ ro) poate, = T HALL, 616 Broadway.—Drawinc PEOPLE'S MUSIC 45 Be . emeneene ee HALL, jowery.-Soxas, Dancxs, PARISIAN GABINET OF WONDERS, 563 Broadway.— “Dpen daily from 10 A. M. ull 10 P. M. ” ATHENARUM,. Rrooklyn.—Hoozsr’ Mrnsteets i E: ‘tax Soncs, Dances, 4c. eiieings aay 13, 1862, —————————————— THE SITUATION. All the reports which reach us from the army in ‘front of Richmond state that the success of Gen. McClellan is certain, although the condition of the Country in which he has to operate is rendered so miserable by the floods that his movements are Meocessarily delayed. All preparations for carry- hog on the siege are, however, psogressing fa- Wrorably. The advance of our army from General Fre- Mont’s headgarters to Port Republic, Va., ascer- Rained the fact that none of the enemy were in the \way except the wounded, who lay in every house, (Since the battle of Cross Keys, as it is now called, which was fought on Sunday. The dead found in ‘the road shows that the rebels lost five hundred in ehat fight. Ambulances and wagons, arms and S@ccoutrements were strewn along the route. A Wespatch received at the War Department yester- May puts our loss at 125 killed and 500 wounded. ‘Our own loss in officers was severe, as will be seen by General Fremont's official despatch in another column. The brilliant action of our fleet in the Missis- Bippi is testified to by the rebel press. The Vicks- burg papers state, for example, that the city of De ito, Mise., has been destroyed by our fieet, and ‘ that ‘but three little buildings now mark the ' wpot which once glorified in the title of a city.” he same report adds that the federal gunboats Bhelled the town of Grand Gulf on Monday, and Sheir transports landed a number of troops, who pillaged and sacked the town of everything they could lay their hands on. While we doubt the story of the pillage and gacking by our troops, we freely accept the an- ement that another town on the Mississippi sarenan into our hands. In fact we now hold the entire valley, and with all the rebel strongholds, from New Orleans to Cairo, in our possession, a town or city here and there can make but little difference. The condition of Memphis at the latest accounts was most satisfactory. The people generally seew fejoiced to enter once more under the protection ‘of the government. The stores are being opened, ‘nd many of the merchants are starting for the Northern cities to buy goods in the old fashion, @nd applications to ship 6,600 bales of cotton have @lready been made to our authorities; while, at the ame time, the robel cavalry, who are scouring the ‘country in the vicinity of Grand Junction, are wan- tonly destroying as much of the staple as they can. The people of Memphis treat our soldiers with kindness and cordiality. Our news from North Carolina will be found ‘very interesting. The battle fought at Tranter’s reek was a brilliant and successful one, as will be Been by our correspondent’s description. The jmap which accompanies it illustrates the fight very CONGRESS. In the Senate yesterday, a bill in addition to the Act to provide for salvage in cases of capture was Yeported by the Committee on Commerce. The - Yesolution to admit to tho floor of the Senate the Senators elect from Deseret was laid over. Mr. Davis. of Kentucky, offered a resolution that the rebel General Buckner, captured at Fort Donel- Bon, and now a prisoner at Fort Warren, ought to be transferred to the civil authorities to be tried Jor treason, whereof he stands indicted, in the Kontucky District Court. After some discussion, uring which Mr. Davis said Buckner ought not to be exchanged, but taken to Kentucky and hanged, the Bubject was laid aside till to-day. A bill to repeal Bhe act to prevent and punish frauds on the part wf officers entrusted with making contracts for the overnment, was introduced by Mr. maa Are- polution was adopted calling on the Secretary of tate to inform the Senate what amount of money been paid Maine and Massachusetts for yield- to the Ashburton treaty, and what has been lone with the money stipulated to be paid for in lands takem by Great Britain, and if the same 48 not been paid, why not. The bill for the re- of General Grant was passed. The Pacific iiroad bill was then taken up and discussed, , after an executive session, the Senate ad- ned. In the House of Representatives, the Tax bill as reported back from the Committee on Ways 1 Means. Mr. Stevens recommended a general on-comourrence in the Senate's three hundred nd fourtoon amendments, and a committee of onference on the points in dispute between the wo houses, This was agreed to by a vote of ghty against fifty-eight. The report of the Con- ference Committee on the amendments to the In- NEW YORK HERALD. | dian Appropriation bill was accepted. A petition from New York merchants, asking an extension of the time for warehousing goods, was presented and referred. The bill defining the pay and emoluments of certain army officers, conferring citizenship upon all volunteers who serve and are honorably discharged on proving one year’s resi- dence, and punishing fraudulent contractors by court martial with fine and imprisonment, and bringing all contractors under the Articles of War, was passed. The report of the Conference Com- mittee on the bill appropriating five million dol- lars for bounties for volunteers was accepted. ‘The bill for the erection of a new penitentiary and jail in the District of Columbia was defeated, and the House adjourned. MISCELLANEOUS NEWS. We publish some very important news from Mexico this morning, fully confirming previous re- ports of thedefeat of the French on the 4th and 5th of May last. The battle was @ sanguinary one, and the French Zouaves, who must have fought with great gallantry, suffered severely. The French were only 4,000 strong; but the num- bers of the Mexicans are not given, though they may be computed at from fifteen to twenty thou- sand men. We give an abstract of the official re- port of the battle, together with other very inte- resting documents, which will repay careful pern- sal. From South America we have news dated in Buenos Ayres on the 14th of April. Citizens of the United States resident there were elated at the reports of the Union war news dated to the 23d of February, which had just been received. The republics were greatly alarmed at the reports of the allied operations against Mexico, fearing that Spain would endeavor to apply the new principle of European invasion to themselves. Uruguay especially felt uneasy concerning the rumor of an Italian fleet being despatched to her waters. France was steadily urging her many claims against Buenos Ayres. Mr. Palmer, Minister of the United States in the Argentine Confederation, had left for home, and Mr. Helper, our new Consul, had arrived. Manuel Rosas, ex-Dictator of the Confederation, had been condemned to death, after a ten years’ trial. His property is declared confis- cated; but, as Rosas resides in Southampton, Eng- land, the death penalty cannot be enforced, and no person seemed inclined to purchase his estates. The produce market of Buenos Ayres was quiet. Foreign lumber went off freely, and flour, on board, was at $8 a $9. Our correspondent in St. Domingo City, writing on the 17th of May, furnishes a very important let- ter with regard to the progress of the island under the new rule of Spain, as well as the position of the great social problem of the continuance of negro slavery or the initiation of the emancipation of the black population in the Spanish West Indies. St. Domingo, he says, has already benefitted vastly in all her material interests under the ‘liberal and enlightened policy’’ of Queen Isabella. Great lines of railroad, calculated to open up the trade of the valley of Yuna, with extensive plans for river navigation, were already decided on, and, as Spain invariably pays in hard cash for her public works, it was thought that many Americans would find profitable investments for their capital ae well as personal employment. The Spanish officials expected large arrivals of negro contrabands and free blacks from North America, and the writer asserts that slavery is doomed to soon end in the Spanish colonies. Indeed it is said that the “institution” is now so hampered in its workings that the planters of Cuba and Porto Rico are seriously debating to propose to the gov- ernment in Madrid a plan of emancipa- tion, with compensation. Spain intends, it is thought, to build up im the Antilles a powerful free black empire, in which the colored man will enjoy fully, as he now does, the same measure of political, military, municipal and re- ligious liberty as the white, even if he is still ex- cluded from the social circle by prejudices of caste. Real estate had advanced greatly in value im St. Domingo. Trade was lively in the city. Carpen- ters, masons and painters commanded good wages. The health of the city was good. The Hon. Owen Lovejoy, of Illinois, delivered the second of a series of lectures before the Emancipation League at the Cooper Institute last evening. His theme, as may be expected, was the abolition of slavery. He held that the safety and welfare of the republic depend upon the emancipation of the slave, a right to which he says the negro is entitled beyond all contradic- tion. It was sheer folly to suppose that we can ever have a lasting peace until we remove the difficulty that disturbs our tranquility. Freedom is the schecinah of the American republic. We may as well expect this rebellion to cure itself as to expect slavery to do so. Rebellion is the whelp of disunion, slavery the old wolf; therefore the old wolf should die. He spoke of the emanci- pation of the slaves in the District of Columbia as one of the greatest acts this country ever per- formed since the Declaration of Independence, and he longed for the coming of the day when he shall be called upon to give a vote that shall strike the chain from every limb throughout the land. The audience was very mderate, but *enthusi- astic. Wm. Cullen Bryant presided, and made a brief introductory speech. The Board of Councilmen met last evening, and adopted a preamble and reselution approving of the conservative and patriotic course of Secretary Seward, and placing the Governor's Room at his disposal to receive our citizens during his visit to his native State. The Board concurred with the Aldermen in passing an ordinance appropriating $500,000 for the relief of the families of New York city volunteers. After the transaction of considerable routine business, the Board adjourn- ed till Monday. The usual weekly statement of the Commis- sioners of Public Charities and Correction was presented yesterday, and shows that 2,090 persons were admitted to the different institutions during the week ending onthe 7th instant, making a total of 6,821 remaining there on that date—an increase of thirteen on the preceding week. The Court of General Sessions was obliged to adjourn yesterday without trying any prisoners, the counsel in the cases put on the calendar hav- ing succeeded in moving them off till next week, Thomas Hadden, said to be a notorious character, was brought into Court on a bench warrant, he having been indicted for robbing sailors. The Recorder fixed the bail at $5,000. Hadden has served a term of five years in the State I'rison, was subsequently acquitted on a charge of man- slaughter, and convicted in the Sessions on a simi- lar charge to the one for which he is now indicted, which conviction was set aside by the Supreme Conrt on a technical point. We have been unable to procure from Halifax the Liverpool markets of Saturday, 31st ult., or the price of console om that day. The closing Price of consols on the 30th was 935% a 93%. ‘The stock market was very buoyant yesterday, and Prices advanced from % tw 1 per eent allround. The inquiry for dividend paying shares ts very active indeed, and some shares which pay large dividends, such as Panama, are advancing nearly one per cent aday. Mo- noy was easy at3.a3\. percent on eall. Exchange ad- vaneed to 116 and gold to 105. This, and the advance in stocks, were mainly due to the understanding that the government proposes to isuse another $160,000,000 of jogal tender paper. ‘The cotton market was firm yesterday, while the sales embraced about 1,100 bales, cloring on the basis of Sle. 231 ic. for middling uplands. Owing to the advanee in freighte, and to liberal receipts, the flour market was beavy;and closed at a decline of Se. per bbi. Wheat was affected by the same causes, and fell off 24. 0 3c. per bushel. The market at the concession was tolerabiy active. Corn closed with less buoyancy, while prices wore without change Of moment, Sales of okt Wostern mixed, in s'ore amd dalivered, were made at 520. a 63 340, NEW YORK HERALD, Pork was heovy and lower for mess, with sales at $10 95 4 $11, and of prime at $9 a $9 26; some extra heavy meas was reported sold at $1126. Sugars were unchanged, while the salos embraced 178 hhds. and about 600 boxes Coftee was steady. The cargo of the Onward, comprising 2,722 bags of Rio, was sold on private terms. Freight’ were more active, and closed at am advance on previous rates, as will be seen from the report in another column, The Union—The Absurdities of Southern Alienation a: an Endices Guerilla War. The British aristocracy have never found anything to admire, but everything to detest, in the republican institutions of the United States of America. Between the feudal privileges of aruling class and the American doctrine of popular sovereignty there is “an irrepressible conflict” going on in Europe, which will not end until the barons or the people are finally put down. Hence the strong secession sympa- thies of England's aristocracy in reference to this rebellion. Hence the zealous, persistent, unscrupulous and shameless efforts of the news. paper organs of this feudal English aristocracy to “give aid and comfort” fo Jeff. Davis and his hopeless cause. Taking the London Times as the leading or- gan of its unprincipled class, mark how like a paid advocate it has stuck to the fortunes of Davis. Thus, our victory at Cape Hatteras amounted to nothing; Port Royal put us in possession of only a few uninhabited and miasmatio sea islands; Roanoke Island only admitted us into a region of impassable swamps ; Fort Donelson was a misfortune to the Southern Confederates, but nothing very serious; the loss of Nashville was to be re- gretted, but Nashville was a place of secondary importance ; the rebel evacuation of Manassas was a masterly military movement; the iron- clad ship fight in Hampton Roads showed that the Merrimac was worth a dozen Monitors; the repeated escapes of the steamer Nashville and other rebel craft, through our blockading squadrons proved our Southern blockade a mockery and a nuisance; the battle at Pitts- burg Landing was a splendid Confederate vic" tory, from which it was manifest that the armies of the Southern confederacy could never be conquered; and so on until the news was received in England of our capture of New Orleans and of Norfolk, and of the blowing up of the Merrimac by the rebels to save her from capture. But what says this aforesaid zealous and in- defatigable British organ of Jeff. Davis to all this? It is forced to the conclusion that the naval establishment of Davis has been destroyed, and that his armies are destined to go to the wall; but then we are told that, as there is not a vestige of Union sentiment in the South— that as the Southern people, in their implacable and universal hostility, are forever alienated from the Union—the destruction of their regular armies will only be followed by the most formidable gue- rilla war in the history of mankind—a guerilla war under which, including the burning of Southern cotton, tobacco, corn, rice and sugar, the South will never be subjugated to a recog- nition of the federal government. Suchare the latest excuses and encourage- ments which the secession organs of the British aristocracy have to offer in behalf of the sinking cause of this rebellion. They are, however, only the echoes of the most reckless and desperate of the secession journals and fire- eaters of our rebellious States. But with re- gard, first, to a guerilla war. Our latest re~ ports from Western Virginia, from Tennes- see, and from some portions of the wild moun- tain districts of Kentucky, show that the rebel guerillas in those quarters are pretty active, But these are only the bands of marauders which hang upon the flanks of great pro- tecting armies. The army of Beauregard, though driven off from Corinth, demo- ralized, impoverished and greatly reduced from desertions and detachments captured by our forces, is still sufficiently strong to require the special attention of General Halleck, and hence the appearance of these outside guerilla bands. With the dispersion of Beauregard’s army these guerilla supports, will disappear, as they disappeared from the banks of the Potomac with the rebel evacuation of Manas- sas, and as they disappeared from Missouri with the expulsion of the army of Price. 8o, with the capture or dispersion of the rebel army of Richmond, the guerillas who are now operating within supporting distance of it will vanish; for against an overwhelming force in pursuit of them they will have no longer a place of refuge to fall back upon. Better still, the State being irretrievably lost to Jeff. Davis, there will be mo longer any object or compensation for a guerilla war. fare on the part of the local population; and the rebel troops from other States will cease to have any interest in a guerilla war in Virginia with the restoration of the State to the victorious arms of the Union. The war will end there, guerillas and all, with our occupation of Richmond; for the Virginia rebel troops still adhering to the fortunes of Davis, will follow his retreating forces into other States, after the manner of the intractable fighting rebels of Missouri, Kentucky and Ten- nessee. Thus our Union army will capture or drive before it out of the country all the incu- rable fighting elements of this rebellion, so that the States in the wake of our advancing troops will be relieved of all those active and turbulent rebel chiefs required for guerilla purposes. They will follow their main army to save themselves, or be reduced to submis- sion from sheer necessity or the pressure of public opinion. Next, with regard to the Union sentiment of the South. It is not extinguished. It still exists, and is waiting its opportunity. This Union sentiment was quite as strong in North Carolina and Virginia down to the out- break of this rebellion as it was in Missouri. We are quite sure, therefore, that, with Virginia or North Carolina fairly relieved of its menacing rebel army, the same result will follow as in Missouri. And so of all the other Southern States. With the last forlorn hope of Davia cut off in the final rout of his last remaining regular army, they will all drop back again into the Union so submis sively that the people immediately concerned will wonder how their restoration was so easily and quietly achieved. The wise, sagacious-and eminently patriotic Union policy of President Lincoin will have paved the way for this consummation with our occupation of Riehmond. Strengtien McClel- Jan #0 as to give us a crowning victory at Rich- mond and, we will be content to trust to the developments of the next three months for the complete fulfilment of our opinions concerning a guerilla war and the Union sentiment of the FRIDAY, JUNE 13,’ 1862. Our Nationa, Frvances—Taw Bearmo or tae Tax But on Tas Dirrerenr Sgcrions oF tre Country.—With the passage of the Tax bill by the Senate ends, every lingering doubt relative to the success of the financial schemes of the government. The value of its certificates of indebtedness, whether they be Treasury notes, stocks or other securities, is now estab- lished on a firm and solid basis. As soon as the bill, which .u. ~int? .ouse for concur- rence in the Senat caudments, becomes a law, an annual income of over $200,000,000 will be insured, which is sufficient to pay the interest, at the average rate now paid by the government, on a debt of over $4,000,@00,000. Our expenses, however, can in no event ever be such as to increase our debt to this enor- mous sum. Ifit reaches the sum of $1,500,000,- 000, we shall be able to pay the interest thereon with $75,000,000. To this add $100,000,000 for the current expenses of the government each year, and we have a total of $175,000,000 to be annually paid, leaving $25,000,000, if our income be but $200,000,000, for the yearly contribution to a sinking fund with which’ to extinguish the debt incurred in the prosecu- tion of the war. But after the present year our income will in all probability amount to a larger sum than that above indicated, inasmuch as the customs receipts will increase as the conn- try is restored to tranquillity and the demand for foreign goods increases, and as the tax re- ceipts will be augmented after the stock of goods already manufactured and untaxed is consumed. The most reliable estimates regarding the probable receipts under the Tax bill, as it now stands, fix the sum at about $110,000,000. The following statement of the sum which could probably be realized, had his substitute been adopted, was made in the Senate by Mr. Sim- mons, of Rhode Island. From the figures given an opinion may be formed respecting the amounts which will be derived from the various sources of revenue:— Tncome tax............ Ne Ria eee $46,200,000 Spirits, at thirty-five cents per gallon.. 42,000,000 Rectified spirits 6,000,000 Beer at $2...... 10,000,000 ‘Tobacco, snuff and segars. 20,000,000 Licenses.............. 0,000,000 Auctiongers’ duties, & 15,000,000 Other sources. . 5,800,000 Total. « $155 000,000 The above must be modified, as spirits are taxed but twenty instead of thirty-five cents per gallon, and beer one dollar instead of two dol- laps per barrel. These changes would make a difference of $23,800,000, leaving the possible amount to be actually received $131,200,000. The receipts of the New York Custom House since the beginning of the present year have been such as to justify the belief that, even in the present state of trade, the revenue from duties on imported goods, with an additional duty levied on a few articles, will reach $100,000,000. The opportunity afforded brew- ers and distillers to manufacture their liquors until the Ist of July without rendering them subject to taxation will deprive the govern- ment of a considerable sum which should have been realized. From the very nature of the foreign trade and internal commerce of the country, the re- ceipts of the government will increase as the prosperity of the country returns; for the im- portation of foreign products and manufactures will be stimulated, and the manufactures of the United States, on which the chief portion of the tax is laid, will be encouraged at the end of the war by the increased demand and the protection afforded by a high tariff. The taxes to be imposed, being on such ar- ticles as all are compelled to use in their daily pursuits, and in the support of; life, will fall on each and every person in the land, affording each an opportunity to contribute his mite towards the support of the government: The taxea will be burdensome on very few, as those who are required to pay large sums for duty immediately receive them back—payment of the taxes not being required till the goods are sold. Thus the Eastern States, where most of the factories are located, will immediately draw back the money which they pay, from the consumer in the Middle, Western and Southern States. We shall also be enabled to derive several millions of dollars from England and France, which nations have acted ina hostile spirit towards us during the war, in the increased price which they will be compelled to pay for the cotton which they must receive from us. Tue Bevticerent Resoves or Tux Sournern Crrms.—One of the remarkable features of the war has been the passage of fighting resolutions by the authorities and people of the Southern cities. At New Orleans they resolved never to surrender, and to defend it to the last. It was surrendered the moment that our gunboats and the flotilla of Farragut arrived there. At Nashville the citizens and authorities went through with the same wordy declaration of making Nashville the last ditch. No sooner had the advance column of General Buell’s army arrived in sight of the city than the Governor and other State officials took to their heela and “skedaddled,” leaving the city in possession of the Union army. And immediately the intelligence came over the wires that all was quiet at Nash- ville. The same form was gone through with at Norfolk; but there the Mayor and Common Council were so anxious to do the very reverse from their resolve that they could not wait for the arrival of General Wool's force, but met him half way and surrendered, the military and uaval forces in the meantime scattering in every direction, and destroying what they could not carry with them. The next thing that was heard from that quarter was, “All is quiet at Norfolk.” This has been so often resorted to that the publie have at length begun to look upon the adoption of resolutions of that kind as meaning that they will surrender at the first opportunity. Resolutions of the same nature have already been passed in Mobile, Savannah, Charleston and Richmond, which, according to precedents means that those cities will each, in their regular turn, surrender, and come into the possecsion of the Union army, and the very persons who promulgated the fighting resolu- tions be the first to yield. The next mornigg our correspondents from those cities will in- form us that the city is as quiet as New York; and here we are as’ peaceable as lambs. Awt Quiet at Memrnis.—A few days since the Common Council at Memphis met and re- solved that they would defend the city to the Inst. Their belligerent resolves and flourish of words gave the public the impression that Memphis was the last ditch. Our rams went down the river, met and demolished the rebel rans, the city quietly surrendered, and the next we hear is that “All is quiet at Memphis,” and that the merchants intend starting imme- diatelp for the North to purchase goods. New Issvuz or Demanp Nores.—The govern- ment is about to make a new issue of demand notes of small denominations, amounting in the aggregate to one hundred and fifty millions of dollars. Some objection has been made to this currency; but experience has proved that it is the best and the safest for the community. Heretofore brokers made fortunes by the de- preciation of the small notes of the different States. So great was the discount that some ‘wildcat currency was deprecinted even tea per cent. The discount came, of course, -out of the pockets of the people, and the money dealers were made rich at their expense. Sometimes the banks issuing bills were broken, and the notes became worthless. In this way the losses of the people were considerable. The new currency of the general govern- ment remedies all these evils. Itis safe and sound. It is as good as gold everywhere. Such is the appreciation in which it is held at the South that as soon as our armies take posses- sion of a rebel city there is great anxiety to invest in these demand notes, and to get rid of the Confederate shinplasters as soon as possible. Why is it that federal paper holds so high a rank? It is because of the basis on which it rests, the strength and stability of the govern- ment, its good faith to the creditor, and its ability to pay. The value of the demand notes is further enhanced by the patriotism of the people, who, under no circumstances, will de- preciate them; for that would be only destroy- ing their own public credit, and the loss would have to fall ultimately upon themselves. All that is needed to perfect the security of these notes, and to make assurance doubly sure, is to pass the Tax bill, and that is now at such a stage that a few days will suffice for its final passage, by the agreement of the Senate and House of Representatives on the points on which they differ. It will be immediately signed by the President, as a matter of course: By this bill and the tariff an income will be secured of over two hundred millions per an- num. According to the calculations of Mr. Chase, the average of the interest paid on the government bonds is four and three-quarters per cent; but let us put it at five per cent, and we would thus have, by the results of the Tax bill and the tariff, the ways and means of not only paying the interest on the war debt, but of creating « sinking fund to pay the prin. cipal—a payment which will be so rarely de- manded that it is merely nominal. Even should the expenditures finally foot up four thousand millions, which is a far higher figure than they can ever reach, the estimated products of the Tax bill and the tariff would be ample for the payment of the interest. Thus from the vast resources of the country, from the diffusion of wealth and the patriotism of the people, a tremendous war can bé carried on without material injury to the finances of the country, which would render bankrupt in one year the greatest Power of Europe. ‘his is the secret of the safety and security of the demand notes of the govern- ment of the United States—a mystery which astonishes and confounds the calculations of all the great financiers of England and France. Tae News rrom Mexico—Tue Dergat or ae Frencu.—The news from Mexico which we publish this morning is of the highest importance. It more fully confirms the intelligence we have previously received of. the defeat of the French army at the gates of Puebla. This reverse to the Frenth arms is but a natural consequence of an invasion which the better judgment of the Emperor Napoleon should have prevented him from undertaking. This first sanguinary encounter is only a foretaste of other conflicts more severe and terrible which must hereafter occur in that unfortunate country, unless the Emperor should, as soon as he hears this news, decide to recall his shattered army and aban- don the Mexicans to themselves. If he consult the interest of France and the welfare of his own dynasty, he will not seek to prolong a bloody war, at a long distance from his empire, at enormous expense, and for no useful or pro- gressive purpose whatever. Surely the unjust claims of Jecker & Co., and the welfare of a di- lapidated branch of the house of Hapsburg, are not considerations of sufficient weight to cause the useless sacrifice of thousands of valuable lives. But this will be the result if the Em} peror, instead of recalling the present troops, should decide to send new levies into Mexico to sustain the French troops already in the country. The repulse of the hitherto unconquerable soldiers of France, the heroes of Africa and of Italy, cannot be expected to please the Emperor very muoh. But whether he will send a large army to Mexico or not remains to be seen. The injured pride of the nation may prompt him to attempt to overrun the Mexicans; but his calm, sober second thought will cause him to beware. He cannot forget that there are six millions of Mexicans, divided in politics, but united like one man for the repulse of their in- vaders. However large an army the French may be able to send in ships across the ocean, the Mexicans on the spot will overwhelm them; and after a desperate struggle of months, if not years, the invading army will have to retire greatly the losers. Besides, the Ameri- can rebellion is drawing rapidly to a close, and the great army of this republic may find some work in Mexico, if the existence of that re- public be endangered by European invaders. The Emperor of the French had therefore bet- ter accept his defeat by the Mexicans, draw off his army from this continent, and leave the Mexicans to reorganize their government and pay their debts in the best way they can. New York Post Ovrice.—We understand that the removals of employes in the New York Post Office by Postmaster Wakeman are not made solely upon political considerations, but that bis action in this matter is influenced by the quali- fications of the individual employes and their attention to their duties. It is also stated that all the old hands remain there, and that none will be removed who faithfully attend to their duties. If this is the true state of the affair we hope that Postmaster Wakeman’s course will be the guide of other government officials, and that hereafter the appointments will be made upon the peréonal qualifications of the appli- cants, and not solely on political considera- tions. The war has wiped out of existence all the old political parties, and this is the appro- priate time to inaugurate a reform ia our pub- Jie offices, and, by adboring to it, public officials will better serve the interest of the public, and hear less complaints, than under the long exist- ing systeny of political favoritism. NEWS FROM WASHINGTON. Wasamartos, Juny £2, 1862 THE NEW DEMAND TREASURY NOTE SILL. ‘The excitement in New York about the proposed au thorization 0! an additional $150,000,000 of United Simos notes, is regarded hero as unwarranted by ‘the the case. The whole noininal circulation of the States notes at this time is only $117,500,000. are in the Treasury to the credit of disbursing off about $32,000,000, leaving about half a million with whieh to meet drafts from tho department, Of the $17,000,000, about $7,000,000 (being the amount of the demand notes) are practically withdrawn from eirculs” tion and hoarded for payment of custums. Of the pro- posed new issue, therefore, $57,000,000 may replaco tho amount thus hoarded, and about $46,000,000 will be withheld from issue to meet possible demands for temporary deposits beyoud tho immedinte moans, Thus $17,000,000 will make no practical ad- dition to the circulation. It is well undorstood, also, that tho Secrotary will ia no event issue any part of the new notes, if authorized, excepting small notes to take the place of large in pay- ments to the soldiers and other creditors preferring them, so long as the duties on imports, the im” crease of the temporary ican and the con version of the United States netes already is- sued into five-twonty par bonds yield revenue enough to meet the daily expenditures. During the prescud week, thus far, the income from these sources has more than met current expenses. The conversives alone have supplied more than half a million of dollars a day, aua will probably increase under the circumstances. Very little use will be made of the additional authority pro- Posed to be given to the Secrotary, though it is thought prudent to guard against possible exigencies by giving it an expansion of the currency, which may take place, and therefore will not be attributable to the Treasury Department, to whatever cise it may be ascribed. The new demand Treasury note, bill, authorizing the issue of an additional one hundred and fifty millions of demand notes, will take precedence of all other busiuess. in Congress. A disposition ts manifested to pass it without delay. The admirable management of our financial affairs by tho Secretary of the Treasury, and the unexpected and unexampled success of all bis recommendations in con- nection with the public nanees, have inspired universal confidence in his ability,and induced a willingness to <compiy with his every request in connection with the Treasury department, in which be hasalready wrought so many reforms, at first startlingfrom their novelty, butso smooth working, as soon as thoy are put in operation, that all wonder at their simplicity and excollence. ‘The proposition that the engraving, printing and execu. tion of these notes shall be done at the Treasury Dopart- ment, with machinery and materials belonging exclu. ly to the government, after the munner of the execution of tho notes of the Bank of Engiand, is regarded as a wise provision, although it is much doubted if it will prove more economical than thes. mode of doing such things by contract. There are” other reasons, however, which recommend this measure, Step by step Mr. Chase is developing the grandest sys- tem of natienal finance ever conceived, and which wiil not only immortalize his name, but, when fully carried out, willgive to this country a stability of credit and financial prosperity unequalled by any government ta the world. The national banking project, the capstone of the whole system, alone remaina to make it a haxmo- nious, simple and self-sustaining whole, as enduring as tho government itself, anda source of continuing ease and prosperity in the monetary affairs of the nation. THS TAX BILL IN THE HOUSE. The Tax bill is speeding on tho way to its final pas- sage. Its immediate roference to-day to a committee of conferonce expedites its progress to become a law during next week. There are over three hundred Senate amendments to be considered. Most of them are unim™ portant. There is quite an array of agents and repre- sentatives of various interests in attendance, hoping to have one more chance, before the Committee of Confe- rence, to make their. points; but it is understood that the committee will hear no arguments, but decide ail questtons upon the information alroady adduced. IMPORTANT LETTER FROM THE SECRETARY OF THR NAVY—IRON-PLATED SHIPS OF WAR—NECESSITY OF PREPARATION FOR THEIR CONSTRUCTION, ETC. Tho following letter has been addressed by the Secre- tary of the Navy to the Naval Committee of both Houses = Navy Dsearruast, June 9, 1862. Sin—I had the honor to addreas the Naval Committee, under date of tho 25h of March last, on the subjoct of armorod ships, and the necessity of preliminary measures in tho future construction of vessels for the naval sor- vice. The fact that a radical change has commenced ia the construction and armament of ships—which change in effect dispenses with the navies that have hitherto existed—is obvious, and it is a question for Congress to decide whether the government will promptly take the initiatory stops to place our country in the front rank of maritime Powers. It is unpocessary that I should recapituiate the sug- gestions contained in my letter of tho 25th of March; but T would again call your attention to thein, and siate my earnost desire that Congress should take action ve- fore its adjournment on the gubject not ouly of supply- ing itself with the armature and beavy ordnance for ships, but of the substitution by the government of iron for wood, in whole or in part, in the construction of naval vossels. It has hitherto been he gong: to be the true interest of the government to build its own ships- of-war, and to manufacture the arms and most of the ar- ticles which are requisite for the naval service. This necessity has arisen chieily from the fact that naval vessels and naval rposes and objects wre in many respects #0 essentially differ- ent from those of the mercantile marine as to place them out of the usual line of private enterprise, The government has consequently to pay an extra cost fur extra aud better work. In naval and military matters it ts indispensable tbat vessels, guns, machinery, and everything pertaining to them, shoula be of the’ best quality, reliable and always ready at any moment to meat the publie necessitics. ‘The government has several large Navy Yards for build- ing ships ; and the iutroductioa of steam, which is necessa- ry for, and made applicable to, all naval vessels now con- structed has compelled it to erect extevsivesbops for mak- jsteam machinery. But these shops are inadequate to the wantsof the navy, and for some years it will bo necessary under any circumstances to ¢ utract for much the largor portion of the work that wiil be required. it is now ganeraily conceded that vessels for fighting Purposes, must be heavily plated with iron, if they are not built entirely of that material. Jn this, as in most costly fabzics, economy is reached turough durability. Iron ship building is new in this country, but few per- sons are engaged in it, aud itis @ noveily in our navy yards. Heavy iron beams, shafting, and thick iron plates can be procured from only two or three parties, and then in limited quantities, and subject to great delay, Individuals have littie use for iron of such magnitude as the navy must have, and thore must un- avoidably be great outlay to prepare for the execution of auch work. With only the navy for a purchasor, there can be no competition, and the goveroment will be com- polled, under such circumstances, to pay almost any price the mills and forges may demand. No tnconsiderable portion of an iron ship cau be made and procured at the Page | milis, and, 40 far as itean be done, be be the best policy to be so supplied; but the heavy aad ex- ive portivus cannet be so procured, and ualess the government is prepared to execute the work, it will be gubject to imposition, and its vessels to marked in- feriority. ‘Othe: nations, whose wooden ships-of-war far exceed our own in number, cannot afford te iay them aside, but are compelled to plate them with iron ata very great cost. They ‘are not unaware of the disadvantage of this weding, itis @ present necessity. [t must be rne ia mind, howevor, that those governments which are striving for naval supremacy @re sparing no expense to strengtheu themasives by building iron vessels; and already their dockyards are undergoing the necessary jon for this change in navai architecture, not- withstanding those governments have at their eummand exporience and the most ‘extensive and complete iron and machine factories that private enterprise can produce. These facts are suggestive to our government, and I desire to cail your attention to the necessity of making the necessary provision for our- selves by ‘iding means and conveniences for butlding and repairing a uavy such asthe strength and character of our goverument aud couttry require, in order to maintain ts true position among meritine Powers. Welave been engaged for years, and havo spent mib- lions in our navy yards aod on our ateam machine shops for shipbuilding purposes, and yet have not been able to keep up With the wauts of the navy aod the exigencios of the service. It i# Dot the part of wisdom to close our eyes to the to evade the responsibilities that ‘The creation of a wew and dit. the development of science and 0 Ab & Recess ity, calls for vi Ty rv; art already demon: measures, aud prompt and euergetie action. go- vernment should not, in justice to itseit, be dependent on private establishmeute for 11s most important and ex. sive works, but should rely npon itself. Great works, te T, require time in their preparation, and lavish e ‘tures cannot basten them. Congress has boun 1 in {ts appropriations for building vessels, but these appropriationa cannot be made available m obtain ing the proper locations, miils, forges, furnaces and shops, all of which are requisite, aud which, to be se- ‘cured properly, noed time and enreful consideration. If the money for these purposes be now appropriated, we shall cvmmeuce, under as favorable ciroummstances ay apy nation, the coustruction of a one adapted to the wants of ovr country and the times. No nation can have an advantage over us if we avail ourselves of our means and opportunities, and it is ne louger doubtful that ous future satety and welfare are dependent on our naval strength and oMiciency. It is a duty as well as a nocogsi ty that wo make these United States 4 great daval Pawor, /e OWO iLto OUrse: ves lo ommende at Che thig work, aud the presont Congress should, in my opinion. take the raliminary steps nt the present sesdion OF La: une foundation (om the Construgtjon of 8 oATy Ramm eumtirate