The New York Herald Newspaper, January 26, 1863, Page 2

2 THE CONTINENTAL CURRENCY. Bee ITs AMOUNT AND INFLUENCE. How Long it Was Equivalent to Specie, ITS GRADUAL DEPRECIATION JOHN ADAMS ON EXCESSIVE ISSUES. COLONIAL BILLS OF CREDIT. Frankiia’s Foreign Loans and Their Effect on the Paper Currency. PRICHS OF GOODS IN 1780. TOR RATES OF FOREIGN EXCHAY Final Disappearance of Continental ‘ from Circulation, ken Reo Whichever of the Onansial bills now before Congress may ultimately be adopted, tt is certain that the volum® of the circulation must receive considerable augmentation’ and,our ship of State,bemng thus trrotrievably launched ‘among tho whirlpools, rocks and quicksands of trredeem,_ ‘able paper money, it is at once the duty and the interest of overy citizen to learn something of the means by which shipwreck and disaster may be avoided. If we believe certain members of Congress, tho perils feared are all ‘imaginary, and will never be more than the childish ‘Actions of drvarsing ignorance, Others, less sanguino, but ‘equally honest, point us to past Distory and declare that raja and bankruptcy will certainly overtake the whole country. Neithor of these extreme viows is absolutely true. Paper money has usually proved a good ser- ‘vant, but always a bad master. In confirmation of this ‘we have often referred to the English paper money, which during the French war sustained its credit and depre- ciated on the average less than five per cent. We now Propose to examine a still more interesting example—that of the Continental currency issued in this country during the war of independence. It has long been thefashion to deride the Revolutionary paper money as the worst example of an trredeomable currency which the world has ever seen. The history of that financial oxperiment bas yet to be writ- ten, and tho materials for such a history have to @ groat degree perished, Enough; however, ts oxtant to ehow that the Continental currency was not wholly a failure. And ono of tho mos, illustrious statesmen of the Revolution bas declared that * the Continental victory was largely duo to tlie Conti- mental money, the momory of which shoald be forever enshrined in the hearts of: the people ag that of a cham- pion who vindicated tho liberties of the American colo- nics, and fell gloriously in the moment of victory.” We cannot within the limits of this article attempt more than a brief review of some of the most interesting facis relative to this first experiment in~Amsrica of a ‘national uniform paper eurrency. Still, as the country is Bow, after the lapse of three generations of unexampled Prosperity, making a second trial of the same perilous financial policy, we may deduce from our former want of success some lessons which, if wisely regarded by Con- gress and tbe people, may spare us some of that public calamity and private suffering the apprehension of which ig depreciating the public stocks, enhancing the value of gold, eproading gloom aud distrust throughout our com meroial classes, and deranging the business machinery of the nation, ‘The Continental money began to be emitted in the ‘summer of 1776, The war was then fairly begun; news of the reatof she British at Loxington bad just arrived; the battle of Bunker Hill had proved the valer and vadurance of our troops in the face of the disciplined, com- pact and well oficered European veterans. The patriotism of the people was strung to the highest pitch; Washington, by universal acclamation, was appointed Commander-iu- Obiof, segiments of ‘minute mon’ sprung to arms, and ommittecs of safety wore organized throughout the sountry. The most resolute, unswerving zeal for liberty parried away the population ew masse. Evory cottage had es musketeer, and every hillside and valley resounded with tho din of martial preparation. Nothing was wanted but money. ‘From taxation no funds whatevor could be raised; for tbe farmers could not sell their produce, commerce was suppressed, the wheels of productive industry stood still, and the whole country was impoverished by the troubles ‘tnd incipienf anarchy of the preceding years. There was wo alternative but to borrow, and no expedient was known capable of raising loans except by means of paper money. Congress had, therefore, to constitute itself a bank of circulation and to issue bills of credit, such as in limes of financial pressure the individual colonies had fof Acentury or more been accustomed to emit in limitey amounts. The plan was opposed in vain. A relentiess necessity forced its adoption, and there followed such an unexpected and immeiate success as for the time silenced every cavilling voice. The now currency was welcomed ‘by the people; for they had long suffered from tie scarcity of coin, Passing freely among the sol. diers and the traders who furnished supplies, it soon received the namo of “Continental money,” both to distinguiab it from the billa of credit of the indi- widoal Biptay, and also because it was authorized and gua. eantoed by the Continental Congress. This embryo na. ional logislaturo had first met in Philadelphia, about nine months before—on the 16th September, 1774—and under ite auspices the war, which lasted oigist yeargy was conducted to a victorious termination, at a cost ef one hundred and thirty-five millions ef dollars, of which, as we shall presently see, almost one-fourth was raised by paper money. The first issue—on tho 234 June, 1776—was for two millfons of dollars. To give value to this new govern- ment currency, it was supposed that taxes must be im- posed equal to the amount of the notes, so that there might bea certainty of redemption. If no taxation was laid, the notes, in the opinion of Congress, would be severed altogether from the basis of specie. "They could not consequently pass current, or reprosent any value whatever. Here, then, was a dilemma. Taxes were in- ke. grees solemnly to give au explicit guarantee that taxos should be laid on the return of peace, The two millions of dollars were to be redeemed in four annual instalments, to commence at the ond of four years. An slaborate calculation divided the burthen of ‘redemption among the several colonies in the ratio of their sup- number of inhabitants. Before long the public ‘voice hailed the experiment as ® wonderful financial tri- umph. r was found to be e: le freely ‘at its nomi ‘vaine for and silver coin. is @atiafactory result wan attributed to the NEW YURK HERALD, MONDAY, JANUARY 25, 1863. After delaying as ‘ag possible, Congress succumbed to necessity, sad tate 17th of February, 1776, four mil- hhons of noles wore iy ‘and were left to support their credit as Dest they vould. ‘The hoped for ‘pence did mot arrive; but neither did the predicted depreciation. It was soon found that the new edifice of public credit stood us well without the aid o: tax ‘ation as with it. Sanguine politicians took heart, and do- the effete ial theories of the Vid World were too narrow for the destinies of the free, intottigect ulation of tho New World. A specie basis, they said, fea been found unnecessary. Equally needless was & redemption. The of revenue for country Jost then was wild with the excitement and es. ‘thusiagn ef emancipation from the tyran- ny of governmental systems borrowed from teudal rope. As to these new political. ideas, thoy found expression on the 4th of July, 1776, ip the Dec!ara- tion of Independence: and the Dow financial ideas on the 13th of August following, whoa five millions wiore of pa- per money were issued, Swelling the amount in circuls- tion to fourtcon millions of dollars. The delight of the ab the success of thelr now wealth-creating inery was abvut this tiune abruptly chilled. From some unknown cause the mystic wand of the magician was losing its power. At the very moment when ali apprehevsion passed away the spectre of depreciation appeared. Now it so happened that a series of military reverses occurred about the same time; and, as disasters were known to depress the value of interest bearing stocks, it was urged that the paper securities of Congress had temporarily lost value from the game cause. What = Line othe ccaiy believed. baa (ete Ad ue tinantal money was anally :papoun * New York had boon takon by the British, fleet from sei es ont a AREAS ne paralyzed and powerless in Ys . ton, ‘after the affairs at Flatbush and var Furge, was in full retreat across New Jorsey, «beyond thd Delaware. Clearly the mischief was due to these untoward events, Tne depression of the public mind caused the decline in the government paper, and all thas was wanted to stop the evil and restore the Continental menor, pac was, military suocess. Thus arguod the leas intefligent majority to Soon this hope- ful thoory was put to the test. The tide of battle turned. Glorious victories crowned with laurel wreaths the heroes of the Revolution. The whole country rang with triam; t notes of rejoicing at the nows from Trenton and Princeton, from Bennington and 4 Acting on the bolief that deoisive successes could undo all the mischief sustained by the: public erodit, Congress, on the 20th May, 1777, determined to issue five millions more of paper monoy. But, to their astonishment, it ap- that no one would peared take the or at par, Victories bad no power to check Seneca, The five millions of paper were nO more ta the treasury than $1,877,275 in specie. ‘A Thus rudely and suddenly was the magic spell broken, and from the shock tnus given to the paper currenc; never rallicd, nor ever rose again to par. As every ft issue increased the depreciation, it bogan to be sus] ‘hat the loss: in the value of the paper was caused by its being excessive in quantity. This theory, which is now known to be tho true one, attracted as yet but little attontion. Public opinion absolutely persisted ia still attributing the evil to want of military success. But, as the depreciation did not keep pace with the fortunes of the war, and marched with steady step whother the army of the republic was hoa mye or de- feated, the tories began to be charged with the crime of discrediting the paper money, and severe laws were with pitiless rigor put in force to ‘check such traitorous prac- tices. Counterfeitors came in for @ share of the blame, and the penalty of death was denounced against them. ‘The faltering patriotism of the people was also accused, and committees of safety, armed with despotic powers, wore entrusted with tho task of dealing with the refrac- tory persons who brandod themselves with infamy and become cnemies to their country by disparaging aud discrediting the Continental money. All was, howover, in vain. Depreciation, the evil genius of the republic, bad lata his hand on ité currency and refused to release it from his paisying grasp. Evory successive issue increased tho glut of currency and lower- ed its value as compared with coin, We need not pursue this portion of the history further. Congress, at length, alarmed at the consequences should they lose the resource of paper money altogether, made a vigorous offort to stop the downward course of depreciation. The cause they saw was that more had boetR issued than the normal quantity required for the business of the people. ‘They therefore, in September, 1779, determined that tho amount atloat should not exceed at any time two hundred millions of dollars, to which sum they were then nearly arrived. Although they knew that twenty dullars of what they wero thea emitting would buy no more for their army than one silver dollar Would buy, yet they thought it would be worth while to submit to the sacrifice of nine- teen otit of twenty dollars if they could thereby stop fur- ther depreciation. They thefore published an address to their constituents, in which they renewod their declara- tions that this paper money should be redecmed dollar for dollar. ‘They entered into long statistical arguments to-prove that the States were able to fulfil this engage. ment. Liberty, they said, would be cheaply purchasod at thig price, These conservative efforts, however, failed of their purpose. Facilis descensus Averni. In the following spring the Continental money had fallon till forty dollars ‘wore worth but one dollar in coin. ‘The next experiment was not more successful. Alaw was passed to require all the Continental bills to be brought in at their present value of forty for one. New bills equivalent to gold apd efiver were to be given in exchange. The circulation would thus have been reduced to five millions, a sum which it was believed was not too large, and therefore was in no danger of leading to de- preciation. . Very little of the money, however, was brought in. It -eciate till the end of 1780, continued to circulate and dey when it bad failen to seventy-five for one. At this time tho money circulated {rom the French army,and by means of the loan trom Holland, France and Spain became sensi- dle inall the States north of the Potomac. Hence payer soon jen ag wg rater Dealers refused to take it for their goods. inia and North Carolina it continued @ year longer. But its value fell to 1,000 for ‘and then {t expired, as in the ether States, without a groan, ‘The following table contains the official statement !nid before Congress of the various issues, with their respect- ive values in Spanish dollars at the time of emission. The third celumn gives the number of paper dollars which were equivalent to one dollar in specte:— ‘TABLE OF THE AMOUNT OF CONTINENTAL MONEY ISSUED DURING ‘THR WAR OF INDRPENDENCS, WITH THE RATK OF (TS DEPRE- CIATION AND TUE SPROU VALUE OP BACH BSCE. No. of perdollars Total Va- Total am’t of “equiv’t to lwe in Date of Issue. Paper issued. $1 Spanish. Specie. 5. $2,000,000 100 2,000,000 3,000,000 10 3,000,000 4,000,000 100 4 5,000,000 100 8000000 5,000,000 233 1,877,273 1,000,000 3 00 333,833 1,000,000 400 250,000 1,000,000 400 250,000 . 1,000,000 400 250,000 2,000,000 400 600,000 2,000,000 5 00 400,000 + 2,000,000 6 00 490,000 + 1,000,000 6 00 166,666 + 5,000,600 6 00 600,000 6 00 333 ++ 5,000,000 5 00 1 = 5,000,000 400 1,25 + 5,000,000 460 1 + 6,000,000 5 00 1 +10,000,100 5 00 2 -10,000,100 6 00 1 000,100 6 00 1,666, 447,620 8 00 8,055,962 000,160 10 00 {000,160 10 00 + 6,000,100 17 00 +10,000,100 24 00 ++10,000,100 20 00 {000,280 = 20 00 000,260 24 00 osoisa0 88-50 10,050 5 000,140 38 60 It will be observed from the foregoing table that in 1778—the third year of the war—and once or twice after- wards, there was a slight reaction from the depreciation of the paper money. This improvement, on the principles to which we have just referred, is easily explained. The legitimate demand for currency was increased by the im Provement of trade and the increased activity of inter- nal exchange. Hence more was absorbed and its value rose. The reaction, though temporary, was decisive. France had recognized the young ;republic. Lafayette, Kosotusko and other accomplished officers bad come from Europe to fight the battles of freedom in the New World. Thousands of disciplined troops followed, and were re- ceived into our armies. A French fleet appeared in the Franklin had negotiated loans in France, in and an improverent im trade, greater number of exchanges had to be made, and the required from these exchanges, being more in de- mone) teand| tose in value, or, at least, was prevented for atime from further. of the you anaes ing re] ThO stern cxigencien war ten The public exchequer was drained paper dollar be sustained without the corner-stone ot taxation 0 connect ft with the basis of specie ‘And how could ¢ give any pledge of future taxes, whon the estimated revenues for twenty years to coms already mortgaged? Jt wore a mere farce wo taxation. Hence no guarantee of future redomp tion could be given. Depreciation, with all its evils, counted on as cortain. war, it w me ‘though only jost begun, was itg ond, In England a powerful opposition to the war was organized, bow in aad out of Parliament. Peace, it was hoped, woukl cag Bie tag country time / -erm~sr FFM is extanet ou i about seven dollars for every inbabitant. This sum, as was rds inferred, was as much as couid be absorbed by tho business of the country. And it was because this Batural limit was exceeded that depre. ciation in. Had this gut been prevented, had the oon paper money kept precisely equal to what tl of metallic money would have beon if no paper were fa circulation, the dey | have occurred. Johu Adame was ono of the first to set Uhese principles in a clear light, and to discover thelr ap. | plication tothe anomalous state of things around him. lis views are summed up by himself a8 followe:—<The amount of ordinary commereo, internal and external, of country may be computed ala fixed sum. A cortain } sum of me is needed to circulate among the society in order tocarey ou their business. This precise sum is discoverarie by caleution nd reducible to certainty | You may omit Hatt? Ge ad¥ oer CUPrency for tis pur be ee rule, and it will not depreciate. Sher vou exe ¢ it will depreciate, and ny vows: react th avers: ‘or act of legislation hitherto invented can prevent t. In ‘the case of paper, if you go on emitting forever, the whole mass will be worth ne more than was whigb was omitted withi a ‘The diffioulty is what amount Of Carrency fequtired, especially in comme: cial Countries, where banking facii- ties are great, isa variable quantity. Its volume fluctu- ates from day to day. ‘and depends 00 the activity of bu- 68 , the growtl opulence, the state of cont. Gabon’ the fervign beceeeenalt ‘bor ies tao numerous to mention. te ’ Ot tho enhancement of prices from the depreciation of the Continental money we will give a single example. john Adama, writing ou the 20th June, 1780, to the Count Virgennes, saya that “linens which ‘two francs dol. a yard io were Bold: at nein - Broadcloth, a jous d'or a yard, sold attwo eb prs lars a yard. Ironmongery. of all sorts one hundred and ‘\weoty for one, Millinery of all sorts at an advance far exeecding. Bohos tea, which cost in Pound, was selling at forty-five dollars; which used to be at one was forty dollars @ bushel, hupdred dollars in some of tho to see how history rome are now eullerin, aa did the Both cand to opoation of sean Connection the varying rates of during the circulation of the Continental money are ex- pees interesting, The following table is compiled from bn ra re alge Nicaea ote money, in computing ‘were toone dollar in coin:— : dle ‘TABLE OF THE CURRENT RATES QV FOREIGN XCHANGE AT PHILA- DELPHLA DURING THR WAR OF INDEPENDENCE, BNOWLNG OW T1T. 1778. 1779. 1780. pS m6 400 800 4300 100 00 50 00 1000 6000 11000 00 00 1100 6200 128 ov 60 00 1800 6000 17000 60 00 «2300 6000 850 00 oo 00 «2000 «6000. 600 00 co 50 1900 «662 00 - 0 600 2000 00 - 0 6500 2800 7600 - October... 800° 600 38000 1800 _ November...400 600 8850 9000 ~_ December.... 400 660 4200 100 00 _- Co ee hae rocen te ee marae, waeeives the Btate of the ex and appreciation of gold, a Paper currency cannot bo in exceas if it be in euch active demand that are no large unemployed masses of it in the great business centres of the country. This ia a fal lacy. sy forget that the demand may be factitious. ‘The circulation of the Continental curreucy was nover more active when its value was five hundred for one. * On the return of peace no atterpt was made to cancel the originat obligation by redcoming the bills; for, as the depreciation had boen slowly progressing while the paper money was gradually circulating, it was obviously impos- sible to measure the exact loss which each holder had suffered, To gay the last holder in full would only have ‘Aggravated the injustice, by taxing the nation again to give ‘him more than his due, while his predecessors, whose loss was greator than his own, were left without any compen- sation whatever. It was strongly urged that the depreci. ation of the paper money ought to be considered as a tax, inasmuch ag the issue was made only to relieve the peo- ple from the necessity of paying tax. Each person through whose hands the money had passed parted with it again at a small lose, secon ding, to the quantity he heid and the timo for which he held It. As the currency cir- culated among the whole people—the rich and the poor holding it, and suffering from its depreciation in propor- tion to the respective amounts of thoir cash purchases and sales—the whole loss was divided among them very ‘nearly ju just proportion to their ability and liability’ to pa atax. The payment of the whole value borno on the face of the bill to one who had received it, perhaps at the rate of one hundred for one, could have been mado only by a second tax on the same persons who had been. fairly and heavily taxed by its depreciation. How far the depreciation of the Continental money might have been check:d or prevented, bad some means for its absorption been contrived, either by the payment of taxes or by investment in the public stocks, it is impos- sible to say. oth these methods of diminishing the volume of the circulation, and thus checking the tondeuey to depreciate, are, however, in operation at present. Heace, we may fairly infer that our second national expe- riment in paper money will throw as much light on these ‘new financial principles as was thrown by the Continental money on the great fundamental principle, that paper money. will not depreciate, except it be excessive in quan- tity, and that the rate of depreciation 1 usually propor- tiopal to the amount of excess in tho issue. ADDITIONAL FROM EUROPE. Qur Paris, London and Berlin Correspondence. MEDIATION RUMORS RIFE IN FRANCE. What Marshals MicMZahon and Weil Think of the Union Troops and Their Cause. Our Lomdon Correspondence. Lownor, Jan. 10, 1963. The Meneyed and Commercial Circles in Favor of the Union—Advance in the Value of United States Treasury Notes—Mr. Chase's Chances with John Bull—Opinion of the Mexican Campaign—The Atlanti¢ Telegraph—No In, tervention, de. Politically the feeling in this country towards the United Statos is no worse than it was months ago, and financiallY and commercially it is materially better. Ihave taken notice of the value of **greenbacks,’’ and find that among the money brokers they are gradually rising, instead of falling. One hundred dollars of United States greenback notes could be purchased in I ombard street three months ago for £14 6s. 8d., while now they bring £16 5s. 1 believe Mr. Chase’s bonds could be floated here at a fair rate for one or two bundred million dollars, John Bull is woo shrewd a business man to care who he douls with or lends money to, provided he gets a good customer or good security. Very sinister nnd unfavorable rumors aro abroad here as to the position of France tn Mexico. Opinions are very general that Louis Napoleon has put his foot in it The Atlantic Telegraph Company has como forward again, and under cireumstances that seem to guarantee the best prospects of success. Without any fuse, puffiug, or any of those tricks so common in stock exchange mat- ters, they have obtained at least £150,000 subscription on their new shares. Two persons that 1 hove heard of baye subscribed £25,000 apiece. The whole gist of the case seems to lie in two prominent facts: first, the absolute certainty Of a large and highly Temunerative busivess when once a cable has beon suc- cessfully laid; secondly, the very wide experience in ocean and submarine telography has given the electrical engineers and telegraph companies an amount of informa- tion that the world did not possess four or five years ago, when the first Atlantic calle was laid amd broke down, The Submarine Telegraph Company, who have connection from bere to all parts of Europe, to Northern Africa, Alex andria, Syria and to the interior of Siberia, and who doa large and profitable business, are so certain of success across the Atlantic that they are promoting the under. taking very fpae f bore’ they would be perfectly certain of doing a safe and profitable business with their present connection alone. And, whoever lays the Atlantic cable, the business from that side—a are of it—must at any rate be sent over their wires, whether thoy promote the undertaking or not, It looks now as if the great scheme of connecting the two continents by a direct wire was destined to be suce If it fail it will not be for want of faith in the the same causes that rendered the Abroad— Mediation Mentioned to the Britith Ambassador— England Thinks the Moment Is Not Come— What Mar’ shale Ne and McMahon Think of tht American Ar* nics Feo Bnglish Visitors, de., de. It fa all very woll for the Emperor of the French to take high ground when speaking of the civil strife prevailing {n America, as if the sole object was to stay the further shedding of kindred blood; but those who know anything of the internal economy of the country he now governs with so strong © hand know perfectly woll that au fend bis Majesty must have in view & more material amd jess sentimental object. The fact is that the distress in Nor- mandy, in consequence of the dearth of cotton, is every day becoming too serions for the gevernment any longer to be indifferent to it. No less than 64,000 hand looms ‘id 14,000 machines aro brought to a dead look, and 100,000 families are deprived of the only means of earn ing their broad It is not here as om the other side o qeat feudal barons with Felwtovs the channe) where reat rgiis aad mer Chant princes club up ate sittinghatfe million sterting, | 16th of Junc, and Burnsid@ has shown 0 con- weer ethane TATE mle “ee 1m ~ ; Materof ate hash, welt en ign ‘orvst, that Mo One in any great national calamity will stir hand or foot without its tustructioa. It i# an absolute {act that the apppal made to peblic besgvolence. on the peat & thie ist regs bas simply resulted in a sum lesa than £10,000 sterling, not a tithe of the amount for- warded by Liverpool alone for the distressed workmen of heater. Well may the United pistes ging toa Poltotion of its own " ant io Sah “ ral made 6 the crteucationeé the civilised each ‘and which oven Low, ‘fm ite dark of mourning and sorrow, ts exhibiting {tself in works of love and H who have used it end of fire are these tons of grain thrown to the distressed operatives of a country whose hear of sdisasterto government and poopie never its national cause without mockery and triumph. It isa noble and Christian act, and arcat shall be ite reward in the respect of every Christian community, Bul return to the distress of France, which private benevolence ig thus slow to alleviate. - In the state of the frorican capedning’ Se ayia Sut flourishing oo jox! are apy! }, Mus! cannot be from the tive bodies, and there- dy the relia fon eos ie bee pared (or some proceeding on ‘range with @ view of terminating the exiat 3 1 am informed from Since the me, that tho Em- Saori! Maccage te Lend Coiroeias won diatinrtie’® on is i Oe effect that nN =. bim in 5 58 thougheit ia far from desi permitted to act alone, under present she is dotermined on guch @ proceeding, It. is better that et Om ae way ead Boglind hers. So, for it, it would appear you aro not to expect interveation From that juarter, though before the meet- ing of Parliament on the 6tb of February there is no saying what may occur. A curious comversation was related to me last night as having taken between M. the Kmpo- ror’s private secretary, and a . “What can be the réason,”’ said this lattor, “that tho North does not obtain what Mr. Lincola justly romarks it go much requires—military success?’ '? “Marshal Neil ny replicd Moquard, ‘that the North bas but one man rving the name of a goneral, and ‘that is McClellan; though he is only what Moreau was to Napoleon—a slow ember to a crackling fiama; but McMa- hon differs from pim and says the North could easily have a ‘military success’ if the South would fairly put tt on the defensive. What the North lacks, 61y's the Marshal, is heartiness in ight. The mon who go forth to battle do not carry thoi hearts in their hands; they are hirelings swept from all countries, ailured by high pay: but there 18 no patriotism in their souls, while the South has burned its ships fighting for tndépendence, though that indepen- dence is perhaps only & chimerical idea; still they believe in it, and thus stand to their guns. Let,howover, the South Domb irda city of the North; let the twenty millions of the North be put upon their mottlo for their homestead? aud all that men hold dear, and you will seo that both geucralship and fighting stuff will rise to the occasion." “Tbe Limperor believes,” added M. Moquard, ‘that tho South will never give the North an opportunity for the display of such patriotism, and that it is too well aware that a heterogeneous m’ss, without real substance and cohe- sion, only requires pressuro to become strong, compact aud formidable.” In the menntime, 60 great is tho distress in consequence of the Amertean rebellion, that M. de Persiguy taid yes terday be‘cre tbe Emperer a pile of reports feom the authorities, the purport of which was (bat. tranquillity would be disturbed unless the government immediatoly ‘Bupplied relief. Thore are very fow Eugiish in Paris, and the trade which generally prepares for the visits of foreigners at this season of the year complains very much. Many Amoricans are to be Seen at the two great hotels—the Loavre and the Grand Hotel, lately started by the same company; but it is observed that all expenditures from th is confined to their mere creature comiorts. No pur- c ‘are made; no extraneous expenses incurred ; a look of pain and sorrow is visible in features which nover belore seemed lacking in viyacity; anda very large por- tion of the trading community feels tiat it has substan- tial reason to sympathize with the cause. Ta fact, all we want here is—as President Lincoln forcibly expresses it— y success, and then, instead of the dolorons let- ich you now receive from this gay capital, eo long the joyous liome of travelled Americans, you would have nothing but peaue and cries of jubllate that the people's land was itself again, and America, the home of tho friendless, the persecuted and the bruised in spirit, was ‘still the promised land of the nineteenth century. Paris, Jan. 9, 1863. A Mediation Canard— What the Emperor Thinks—Chang. of Feeling in England—The Archbishp’s Funeral—Diso trese in the French Cotton Districts—List of Americans Presented (o the Emperor and Empress—Opening of the Corps Legislatif, dc., de. ‘The Bulletin de Paris, in its issue of day beforo yeater- day, states that Mr. Dayton had an interview with the Emperor the day before, in which his Majesty recom- mended the Minister @o recommend to his government an armistice, with a view to the settlement of our domestic diMcuities. Lest this statement, which has alroady been copied into some of the other Paris journals, ghould reach the United States and obtain credence there, I am able to state that there is not single word of truth in it, Mr- Dayton not having had any interview with the Emperor since New Year's day, when his Majesty “ hoped the news would be better in the course of the year.” Wo believe here now that the Emperor means to let us alone; but it is my opinion that he will do so because he ig not yet convinced that we have the power to crush the rebellion, and believes that our differences will be soon patched up, or the South be permitted to ‘depart in peace.”” The Moniteur of this morning contains an article, ex tracted from an American paper, in favor of calling a Convention of States, and which the official jouraai con siders of suilicient importance, as an exponent of the opinions of the democratic party, to cal! specint attention to it in its bulletin. A friend jnst over from Fogland, where he has been spending @ fortnight, expresses the belief that public opinion is rapidly changing there in our favor, and that the facts elicited relative to the coustruction And fitting out of the privateer Alabama, and the friendly spirit ex- hibited by our people in forwarding supplies to the starv- ing operatives, have had a very good effect in that dirce- tion. On the other hand, there are gentlemen here who are half frightened to death at the prospect of a with England growing eut of the refusat of or naval authorities in the Europesn waters to recognize the trans- fer of the privateer Sumter to au English subject. ‘The funeral services of the late Cardinal Archbishop of Paris were celebrated yesterday with great pomp. As cardinals hold the same rank as marshals not incom mand, a large contingent of troops had been furnished to follow the cortege. The ceremonies commenced at half past eight in the morning, when the coffin was placed in a splendid funeral car, drawn by six richly caparisoned black horses. Adetachment of the municipal guard and a number of religious orde:s followed it, The Cardmai’s hat was laid upon the car, aad the pastoral cross, the mitre and crozier and his missal were carried by priests in the procession. Two court carriages and a carriage of the Prince Napoleon and the Princess Mathilde were in the procession. A band of music accompanied it, and the body was taken into Notre Dame under a galuto of twelve The charch and all the approaches toit were which consisted ons prescribed by the p-ntiticate, lasted The coffin re- mains upon the catafalqne until to-day, when it will be lowered juto the new vault under the choir, expresely con- structed to receive the remains of the Archbishop of Paris. ‘The distress among the cotton manufacturing popula tion of Normandy, thrown out of employment for want ot the raw material, is said to be daily growing more and ‘tment of the Lower Seine partly allayed by the last arrivals from America, It appears that the defeat sustained by the Union arms was not of that decisive character which the first accounts led tt wae only & bloody repulse, uel us to anticipate. os the Allied mot before with Sebastopol on the vernmomt* | tomptible generaiship in reerossing the Rappa. hannock tm eight of @ victgrioas army, without the loss of his artillery, his military stores, or even of any considerable umber of prisoners. As asct-off, $00, we have the succesefet operations of Genera) Foster in North Carolina, which must seriously inconvenience the Confederates by threatening their line,.of communiga- ton betwoen Rishmond and the South and cutting off thelr aupplies. The London 7imes had announced the cap- ture of Kinston as a victory of the Confederates, and #0 it had been telegraphed over hero; and it was only on receipt of the New York papors that the mistake—if it was a mistake, and neta doliborate falsehood—was dis- covered. However, although things are not quite 0 bad as thoy wore represented, the fact is unde niable that the cause of the North has suffered another severe chock; and it is no wonder, therefore, that the Southern sympathizers are again in high feather, and are looking forward with renewed confidence to the proxi- mate recognition of the Confederate States by the Euro. pean Powers. ‘The Paris correspondent of the Osideutsche Post, who is believed to derive his inspirations from fhe Austrian Am- basaador at the French Court, asserts that the negotia” tions between Lord Palmerston and Louis Napoleon for the purpose of a@ joint intervention in America ave beon reopened, and time with every Praareet ohaa anteott iad had n dacaive offen upon to ricksburg,”’ he says, ‘* ve a British inet, and’io a ‘conversation thas tok place Jest Saturday at the Foreign in Paris between Lord Cowley and M. Drouyn.de Lhuys the first overtures on that subject were made Minister im tho name of his govermment. for what it is worth, scoing that the said correspondent, notwithstanding the quasi official source from which he receives his information, is ratber addicted to sengation articles. We perceiye, too, that the Cons/itulignnal, also ‘& semi.oficial print, contradicts the report of further Bteps being contemplated by France inthe Amorican. question. Oy carer thet the Lager bas created & ie a ropean diplomats Sithough it not easy to forsiell--perhaps they may not even know themselves—what action will be takou by in consequence. Tho Bertin’ papers contain the following notice:—'‘The effects of the cotton famine are folt here with great se- verity, The extensive calico, ‘ios have either suspended their operations or have been closed altogether, and many thousand workmen are already out of mai ‘The distress occasioned by this crisis has u anxious attention of government, and the construction of pablic works on a larger scale ts contomplated, in order to give occupation to tac starving operatives.” From Aix Ia Chapelle we have similar accounts. Most of the facto- rica have stopped, und numbers of workmen aro exposed to the horrors of famine. wt of the Battle DID MOVEMENTS: “MARVELLOUS RAPIDICY'’ AND SPLU: OF THE REBEL ARMY. ‘The Paris Moniteur of the 8th of January publishes an account of the battle of Vredericksburg, from which wo make the following extract:— * * ©’ Une cannot but be deeply impressed by the picture offered by the po- sition of the two armies. On the one side division after division in order of battle, silent, and marked by curtains of trees which the Southern staff had taken care to leave standing before thoir batteries, and crouching at their fect the sappers ready to fell them with axe and saw; on every road aserics of abitis, shettcring sharpshoot2rs and in. fantry, colusons, and which, to the best glaxes of Burn: side, presented nothing but a conivsed appearance of tangled leaves and brushwood. Lastly all those con- summate goldiers Lee, Longstreet, Stuart, watehing from their invisible fastnesses the fine army they saw proudly filing along the bridges over the Rappahaanock, having bul a vague consciousness of the disaster that ‘awaited it. And yet, though vague, that consciousness existed. Tho divisions did not march merrily to meet their doom, Their cheers were cold and their songs mournful. ‘The military instinets of both oflicers and men told them that the silent forests that stretched before them had a bloody surprise in store for them, and that 120,000 wre nit sufficient (o storm ramparts which nature h had taken to fortify. * * * “My plan was very simple,” say’ ral Burnside; “it was to occupy one of the heights, to cut the enemy’ line, and prevent its joining.” ‘The federal Commander-in- Chief ha given height was not soflicient, but that it was neces sary to hold it; and General Lee is far too skilful a strategist not to be aware that a lino of battle six miles Jong, as is his own, runs the risk ot being broken through a hundred times, it the commander has been tmable to concentrate in his hands a powerfal reserve, established ata point whence agsistance maybe rapidly given from the centre to the extremities. He did so, and with a pra- dence and corregtness of judgment for which he was re-. General U1. D, Hill’s“division was posted under his hand, in the rear of the line of battle, at ‘the foot of aheight. Au episode of the fight ws how admirably the position, where it was most wanted, had been selected for it. About hatf-past one in the after- noon, when the division of General A. P. Hill was driven back, and the Northerners app-ared to be gaining grownd, suddenly a black: tine was seen toenvarge from a dep valley, and advance at the double quick towards the threatened twas a of the veserce. With marvellous it deployed as it advanced, and plunged into the woods on the extreme right. A quarter of au hour later+it reappeared, always at the same place, and resumed {ts place in the reserve. ‘The troops it was sent to 6 had judged its aid unnecessary. It ts not merely to bring to light this picturesque incident of the battle that we have mentioned it, but chiefly to covtrast the activity and rapid movements of the Confederate corps with the slowness and difficulties of their adversarirs. SHIPPING NEWS. AC FOR NEW YORK—TiIS DAT, 7 15| moon sets. - 509 warded by victory. int. vapidity mora 12 21 morr 109 AUN RIMES, SUN SETS. utom Wary Port of New York, January 25, 1863. ARRIVED, Steamship Ariel, Jones, Aspinwall, Jan 15, 2:15 PM, witn treasure and passengers, to D B Allen. Had very heavy went ier, Steanabip British Queen (Br). Le Messu: 17, and Nassau, NV, 20.n, with mdse Cunard. Steamship Saxon (US trans Jan 1. New Orleans Lib, aud K weather the enti pany with steam Ship Cynosure and 113 passenze Tr, Havana, Jan Passengers, to ‘ender, Galveston, Had heavy E y West in come ‘ork. 14. with mdse . Had one birth on, inst, iat 48 23, lon 33.50. Thos Williams, of . fell overboard wh ie going aloft; got « boat 10\b, Int 41.48, Jon 48 me Li Phiiadel- the whole passage; but obliged (o haul of pool, Dees, with mdse _ Had W gates op é vale, wad bale ayt Deo 16, e heart; Jan seaman, dicd was up near Sandy Hook in the Is, gale. Ship Harvest Queen, and I74 passengers, (0 to the Banks: was off dt West Indies, with mdse, W steamabips Jan 3, Taskar 8th, a Tho cers, to Wm Tyson. spline, Peavody, Tlverpool, Jan 6, with mdse and 164 pissengers, to CH Marshall & Co, “All well; no deaths or biruy 1), Hosmer, Liverpool, Dec 2 . $2 dayg, with coal, to Grin. yw weather to the Banks, neil, Minturn & Co. thenice strong variable winds, Ship Daniet Webster, Spenc se and London and Plymouth, 25 KE Morgan. 8th inst, in, fel! (rom the main top: during a gale gallaniyard overboard and was lc Ship Fawn, Nelson, London, Dec 20, in ballast, to Thomas Duptam. Bark Fortitude (Br), Gon master. (Seo Miscellaneons. ) Bark Levanter (Br, of Yarm: days, in ballast, to Ediiston B Bark Madras (Fr), last, to AC Rossire & Co the Guif Stream, wry, 85 days, in ba'last, to b, NS), Crosby, Newry, 48 yea vint Petre, 26 days, in bal. Had heavy weather for 6 days in Sehr Agenoria (Br), Dickson, Halifax, 6 days, with fish, to | Thos J Sehr Oniatio, Wilson, Ettzabethport for Providence, Sloop Victorine, Aldrich, West Point Steamer Sea Gull, Kenny, Providence Steamer Falcon.Jones, Providence, Steamer Pelican, Baker, Providence. Rervrxep—Ship Belle of the Sea (of Bostow) 18 for an Francisco, having encountered vy ‘the 19th, during which sprung the foremast and he BELOW. ‘otton, from Liverpool, Dee 12, Ship Harry of the Wer th hire, JB ~—r Red Gaunt Sarah Shi ire, 4 jauntiet; oark Sara! Mandel; pga John ules Elle Choth Br), Fasinse, wehrw M Stedman, Breoze, Julia. Wind at sunset WSW, light. Be Baio Icxx1—Capt Gould, of Br bark Fortiinde, from Newry, reporte:—Jan 6, lat 43 06, lon 2535, during a heavy NW gale, saw & vessel astern, steoring W: she fired two fockets, supposed as signals of distress; at midnight another rocket was shown; kept her !n company until daylight un close-reefed topeaila, and at 7 AM she was some 6 er 7 m! astern; st 10 AM she showed o signa! of distress at the main. mast head; at 11, we ran down under her stern, when she proved to Ye the brig Icen!, of Greenock, from Pernambuco for Liverpool, with ® cargo of sugar and cotton; hafled us, and wished to abandon their vense!, as the cargo was on fire; ‘® boat frem the brig came alongside, when the mate reported Mase b hag! a je two or three eee he confined bettveem Monks en Se ay aed intaliy two boats 4 were taben, fhe brig, which mien oe 0 peeian es fh with slp Yorkshire, of and for from Me! and transferred to her the persons reson brig. Exceutext Passaces—The fine packet ship John J Boyd, Capt Thomas, arrived from Laverpodt, having left that port on the 94 inst, and was off Tuskar on the Sth, thus making the run over in 16 days, which is an excellent passage, more capeciaily at this season of the year. Capt Thomas has made a number of good passages with this vessel The ship Neptune, Capt Peabody, Of the Binck Bat! lines also arflyed yesterday, sailed from Liverpool on the 6th inst’ making the handsome run of 18 days from patt to port Suir BF Hoxre, hence at San Franctato, in Int 258, no date carried away fore topgnilant yard and inizen toomass, had inuch adverse weather, from San Francisco fg¢ Humboldt, returned to mdiion, “n coming to anchor she Wig bu Meigge’ whart, carrying x ORR, ss BAbr uit to 8 leaky ras two tae we aire hing—that to occupy any) | where. recelved conssomante aes noting aud Bu Buic Ina, from Porto Cabello iy fio HHaapion Wanda ‘caro of coffee, cotion, hides, into on the 22d inst’ for a nashen ar belowa reported. She rt her a afoul LANER—The steamtug Amertes arrived at Phila a the 24th inst from Delaware Break water, havi in tow steamer Planet, from New York for Washington wi She put im to repair rudder, which was (twisted in the late gale. Steaunn L Boarvwan, Marshman, arrived at Wilmingtom, Del ‘of 23d inst from Sinepuxent, at which place she oi sprung aleak. Spoken, dsc. Brig Wm Mason, 7 days hence for Trimidad, was scen Jam 14, no lat, &c. Foreign Ports. Canpewas, Jan 10—Arr bark Sarah B Hale, Crowther, New York; brig Jas Davis, Staples, Belfast; schr N Eames, Phila deiphia. Bid 10th, brig Trindelen , Havener, Portland, atangat, Jan io—Arr bark_ Fannie Lincoln, Rivers, New ‘ork 3 reton, Bowen, Ellsworth. jh, Charlotte, pr eh rae stm inney, ; ver,’and Minnie, Morgan, Wilmington, NC; Jan 1 Red Jacket, Amsbury. NYork; 6th, Indus, Keller, do. Cid bth, Bra , Baltimore; 9th, bark Ama- thea, Ryan, fork; 10th, schrs Blanchette, Polick, Baltt- mots tie he, Pilla, neh wii . Industry, fe Sucni LONE, Dee 20" o port barks ‘Ariel, Levenstein, from Boston just arr; Orlando, Parks, do do. erican BOSTON, Jan 24, AM—Arr ‘land for NYork.” Cid steamer Norman, an at ley, Mayo, Baltimore; schi Mar- NG. td betes sms Gisnes: and anchored. Phin bare Tied 7 bar Beaufor uango, Glance, In the tone, bark Archer; brigs Dante! Boone, Alguccabah, MORE, J fromm Bae 23—Beiow, bark Overmann, gehts Glenroy, Wakefield, Boston vis Ch wR Gare, Bydor, NYork. id bark Buse M Jouses Bs NA dh ely os alain bo NEWDUMEPONT, Suu 29—Arr ech ausclia, Bayley, May- AN FRANOIACO, Deo 22—Arr Dan bark Jorgen Loreat- el ath Ch ship Blctre Buberos= Sunpay, Jan. 25, 1863. The importations of foreign merchandise at this port for the week ending yesterday amounted to $2,379,835, to which add the declared value of dry goods entered at the port—$2,204,248—and the ag_ gregate weekly imports will foot up $4,584,088, Against this we exported $3,131,189 of produce and $780,816 of specie, footing up together $3,912,005- For the first time for many weeks the balance is against the port. It isto be hoped that this com- ition of affairs may not continue, as it woul@lead to heavier exports of specie than are desirable- At the present rates of exchange there is almoag an obvious profit on shipments of wheat, corn, provisions, petroleum, and almost any of our Breat staples which have not advanced in conse- quence of the war. We regret to be unable to hold out any prospect of an increased supply ot cotton. Whatever may prove the result of the impending operations of our military and naval forces at the Southwest, thus far they have not availed to increase the cotton supply in any material degree, and the staple has ceased to exercise any appreciable influence on the exchange market, Unless unexpected successes should develop a new state of affairs in the South. west, and bring large supplies of cotton to market, we shall still have to rely on the products of the Northwest and of California to pay our debts to the foreign world. Late advices from Europe report encouragingly of the development of cotton culture in India, Egypt and Algeria, and there is rcason to apprehend that, if the war lasts another year, the South will by that time have lost forever the valuable cotton mono- poly which it enjoyed before the war. Money was active last week, though established houses experienced no difficulty, at any time, im borrowing on good eecurity at 6 per cent. Weak speculators, operating on small margins, found it exceedingly difficult to borrow at 7. Commercial paper of the highest grade is readily sold at the brokers at 5 a6; ordinary acceptances rate from 5% a7 per cent, according to the standing of the parties and the length ‘of the paper. Certificates of public indebtedness have fluctuated between 96 and 96, closing yesterday at about 95%. If it were authoritatively announced thatthe interesg on these certificates would be paid in gold—as it most probably will be—they would command a higher price in the market. The future of the money market is so entirely governed by the finan- cial movements of the administration that it ts idle to speculate on the subject until they are definitely aettied. At present the opinion appears to pre- vail in monetary circles that moncy is more likely to grow dear than cheap, and that, ia one way or another, the Treasury Department will contrive to absorb the floating capital which for the past year has been used in Wail and South streets in ine flating and carrying stocks and merchandise. Gold fluctuated last week between 147 and 160%» closing yesterday at 150440 5%. Exchange sold freely yesterday at 16434, and some sales of bank- crs’ bills were made at 165. Late inthe day bankers refused to accept 165, and declined to name a rate. | Yesterday’s sudden rise in gold and bills was oc- casioned iu part by alarming but baseless rumors of disasters to the Army of the Potomac, and the probability is that a rea4tion will ensue. An ad- vance of 18 per cent in gold within a month can- not but be regarded as ample to meet all possible contingencies, and prudent holders, who bought a month ago, wili scarcely resist the temptation to realize profits at present quotations. Safe as gold is as an investment, it costs a large sum tocarry it at present prices, and if we are going to have atight | money market it is pretty clear that a large quantity will be forced upon the market. What ever may be in store for the nation hereafter, the present issues of paper and the present condi. tion of the currency do not by any means justify a premium of 50 per cent on gold. That premium #@ altogether the frait of speculation, and any favora- ble news would cause it to vanish like the baseless fabric of a vision. Bad news, and continued is sues of paper without a prospect of redemption, must enhance the price of the precious metal. But if any fine morning the capture of Wilmingtom, Port Hudson, Vicksburg or Charleston were an. nounced, we should witness a stampede in golé that would be fatal to small operators. “The Honse, in Committee of the Whole, have passed a financia! measure, which we publish else- The chief features of that measure are It authorizes the sale of familiar to the public. | six per cent twenty years bonds; the issue of $00,000,000 legal tender and the issue of $400,. 000,000 interest-bearing Treasury notes, three years to run, and at all.times convertible into legs; tender notes, We gather from private sources ip Congress that the design of the Ways and Means Committee in authorizing this last issue was two- fold—first, to sweep up all the floating capital of the country and tarn it to gold account for the pur- poses of government; and, secondly, to impose & check on the prevailing wild speculation in gol@ and stocks. The new Treasury notes, bearing im- terest ata rate not over six per cent, payable im gold, and being coovertible at all times into legap tender notes, will naturally become a great popa- lar savings bank. Every one who wishes to lay aside money will invest it thereia. Bank deposi~ tors will withdraw their deposits and bay these | notes for the sake of the interest which they wilh | bear. When they want to ase the money other~ wise they will convert the notes into money par, ata moment's notice, at the Sub-Treasury. Wei learn that the purpose of the Treasury De: ia to keep the various sub-treasuries of the Uni Btates well furnished with these notes, 60 that any one who wanta them can always be sap. plied at par. Of the probable effect of thin measure upon the banks and their deposits, it is perhaps dificult to speak. It ia clear that ait deposits in bank mude by parties who propose to leave their money idle for a number of days or, weeks will be/withdrawn and invested in thes notes, Railroad, insurance, gas and other compa. | nies.and public institutions; capitalists, who ual~ ly keep ‘money idle for the purpose of Availing themasives of good qovortuniticg for ativentmanty J -e