The New York Herald Newspaper, July 2, 1863, Page 6

6 NEW YORK HERALD. JAMES GORDON BENNETT, EDITOR AND PKOPRIKLOR, OFFIOB WM. W.COKNER OF FULTON AND NASSAU STS. —_— a AMUSEMENTS THIS BVENING WIBLO'S GARDEN Broadway. Tus Duce's Morro. WINTER GARDEN, Broadway.—Littix TaeasvRi~ Hanvy Anpy—Sxorar, THEATRE, Broadway.—Wivas OF EATS, Lavita KEEN: Pasie—Ticut Ror: NEW BOWERY THEATRE, Bowory.—Dratu Puawe— Fino Jacm—Kina s GakoeneR—WARLOOK OF THE LN. BOWERY THEATRE, Bowery.—Soaurs or Loxpox— Rap Guomux—Fiving Dotouman. BARNUM'S AMERIOAM MUS&UM, Broadway —Geu. Tom Tuvas amp Wire, Com. Norr amp Minnim Warren, atall hours. Ovp House at Homz. Aiternoon and Bvening. DRT Ars: MINSTRELS, Mechanics’ Hall, 72 Broad. Boncs. buatesqums. Dancea 46.—Cuaw Rossr Buay. Eee Saat NOOW'S MINSTREL HALL, 516 Brosdway.—Brarorsa: Bonds, Dances. a0.—Tizaut xouasiow AND Pawonaaa on vam Nomen Rivas. IBVING HALL, Irving placo.—Tas Staasorticon, THE NEW IDEA. 68% Brosdway.—Sonas. Buacasques, Bassevs, d0.—Suonuacse. mr AMERICAN THEATRE. No, 646 Broadway.—Butsts, Pamvommms, Bontzsavas 46 NEW YORK MUSEUM OF ANATOMY, 618 Broadway.— Cumiosrtims amp Lacrunss, from 9 A. M.'till 10 P, M. TRIPLE SHEET. New Yerk, Thursday, July 2, 1863. THE SITUATION. There was some apprehension in Washington yesterday that the army of General Lee might make a line of retreat from Maryland and reach the federal capital before the army of General Meade canintercept it. Some hopes were enter- tained that General Meade might be able to strike the rebels on the flank, and thus prevent them from reaching Washington. The good fighting quali- ties of General Meade are relied upon to effect this object. The army are reported to be willing to suffer any fatigue within the power of human en- darance. General Meade has issued a circular, urging upon the commanders of army corps, Givisions and brigades to explain to their men the “immense issues” involved in the coming conilict. Homes, firesides, and domestic altars, he says, are in danger. The enemy is on our own soil; the army which has fought well heretofore, he thinks, if properly appealed to, will now fight more des- perately than ever. He authorizes all eommand- ing officers to order the instant death of any solder who fails te do his duty. All these’ precautions ‘would indicate not only the ayproach of a decisive battle, but the earnest and anxions anticipations of the Commanding Geperal that the result shall be @ success. Beouts sent out from Washington yesterday re- port that no rebels were seen between Frede- tick and the Potomac, and that certainly none of thom were within ten miles ef Washington. A battle took place yesterday at Hanover Junc- tdom between the Union cavalry of General Plea- @anton and General Stuart'sforce. It lasted nearly the entire afternoon, .and resulted in the success of cur troops. The rebels lost, according to some weports, four hundred in killed and wounded and ix pieces of artillery, and acoording to others not move than twenty. Our loss is reported at two hundred. The accounts upon this point are evi- evidenly conflicting. Our forces occupied York om Tuesday night. Heavy firing was then going on in the direction of Gettysburg. The rebel army ‘was reported to be between that place and Cham- bersburg. Heavy firing was heard yesterday afternoon at Harrisburg, which appeared to be in the direction of Carlisle. It was reported that a heavy battle between Generals Lee and Meade was in progress; but at what point was not known. The excite- ment in Philadelphia continues. A resolutien call- ing upon the President to restore General McClel- laa to command passed the City Council. Immense trains of supplies have been sent back soross the Potomac by the rebels, the results of Lee’s raid. Despatches from Sharpsburg yester- day state that forthe past few days large forces of the enemy have been crossing at that point an moving towards Pennsylvania. Despatches from Memphis bring news from Vicksburg to the 25th ult., at which time every- thing was going on favorably as usual. On the 32d General Grant advanced to meet the rebe! General Johnston, but could not find his where- abouts. His troops are said to be between Can- ton and Bridgeport. We have news from Bermuda to the 23d of some importance. The rebel steamer Lady Davie arrived at St. George’s the day previous, from W!!miugton, 4. C., with despatches from the rebel government te the British representatives at Bermula. The Royal Gasette of Bermuda, of the 22d, announces the arrival on board the Lady Davis of Mr. Vallad- » on his wayteoCanada. The alledged rebel Lady Clyde, trom Greenock, Pcotland, via had arrived at St. George's on the loth 94 subsequently clenred for Nassau. Gazette, of Bermnda, of the 16th al- A An order from the War Depart- ment, Washington, prohibiting the exportation of horses, mules, and all Ive stock, which of course includes oxen, &c., went into operation on the 80th of May last; and so strictly has this order ‘Deon enforced, that several vessels, then laden at New York for Barbados, Nassau, and other plac: fin the Wost dndios, were compelled to reland their Gargoos of cattle. We presume that this order ‘will have the effect of reopening our cattle trade with St. Andrews, New Brunswick. We fear, however, that the contractor for supplying the army and navy with beef at this station, will be Much inconvenienced by this very singuiar order @f the Federal government. EUROPEAN HEWs, took breakfa t with the Emperor Napoleon. They , enjoyed a private conversation afterwards, It Was inferred that Napoleon would renew his offer of mediation in the war affairs of the United States, The correspondence which passed between Mr. Conway, the alleged representative of the Ame- rican abolitionist party, and Mr. Mason, the envoy of the rebel States in London, is published. Tho Liverpool journals again assert that the for the rebel service, The case of the Alexandra ‘was to eome up for trial in the Court of Exchequer, London, on the 22d of June, A letter from Rio Janiero, of the 23d of May, has | the following:—The Florida (Confederate steamer) left Pernambuco May 12, and with her the late federa) brig Clarence, which she had taken; the latter has been armed with four guns and forty men, It és reported that the Florida had destroyed nine vessels, some laden with flour, from New York for the Brazils, previous to entering Pernambuco. | Advices from Bahia, of the 29th of May, report:— | The Alabama (Confederate steamer), sailed hence | May 21; and the Georgia, (Confederate steamer), whic arrived here from the Clyde on the 13th May, left on the 22d. The Mohican, (Federal steamer-of-war), put in here on the 25th May, and sailed on the 27th May in search of tho above. The London Times expresses the opinion that the interview of Fernande Wood with President Lincoln would incline the public mind towards Peace. Tho New York steam fire engine Manhattan, No. 8—intended for the London exhibition—had reach: ed Liverpool just previous to the departure of the China. France was still jubilant over the news of the triumph at Puebla. General Forey, in an addi- tional report to the Emperor, says that the speeches of MM. Jules Favre and Picard, inthe Paris Legis- lature, against the expedition, were found trans- lated into Spanish by the thousand in the hands of the Mexicans. The General adds—‘ I have alrea- dy stated that the defence of Puebla organized by the European demagogy preves that there are per- sons in the place thoroughly acquainted with bar- ricades.”” It was said that France would claim the State of Sonora as Mexican territory, and that Forey would be ordered to seize the city of Aca- pulco and the mines in that neighborhood to reim- burse the French for the expenses of the war. Twenty-one guns were fired from the Castle of San Angelo, in Rome, in honor of the fall of Puebla. The Emperor telegraphed to Pius the Ninth that he would send a representative to confer with him on all matters relating to the church in Mexico. The Paris papers of the 21st of June announce that with a view of facilitating commerce with Mexico, merchandise consigned to ports ocenpied by the French and destined for the portions of the country in French occupation, shall only pay half of the import duty to which it is liable by the regular tariff. Lord Palmerston’s speech on the subject of the close alliance of England with France appears in our columi Earl Russell had directed the English Minister in Brazil to +k for his passports. It was thought that Russia would refuse the al- lied propositions in the case of Poland. Captains Speke and Grant, the explorers of the Nile, had reached England. A London journal des- cribes the travellers as ‘sundried, sunburned, lean and gaunt as greyhounds.” A number of romances in real life, or causes celebres, had transpired in England and France, Captain Nathaniel W. Massey, the hero of the MacTavish-Canadian clopement, had been sued in the London Divorce Court by his wife, Mrs, Mas- Be whose complaint is very unfavorable to the Captain. The Yelverton marriage case was again in the Scotch Courts in a new shape. In Paria an action is brought by Madame Civry, to recover from the royal Duke of Brunswick, whose natural child she claims to be, an allowance of 35,000 francs a year. She alleges that she is the child of the Duke by Lady Colville, of England, whom he seduced, The London Saturday Review furnishes a resume of the late Patti law suit, giving the views of the writer on the merits of the case. Console closed in London, on June 20, at 92 a 923g. The Liverpool cotton market was dull, with prices unchanged, on the 20th ult. Breadstuffs were fiat but steady. Provisions dull. MISCELLANEOUS NEWS. The Missouri Emancipation ordinance has passed the State Convention by a vote of fifty-one to thirty. Slavery is to be abolished in 1870. Those then over forty are to be servants during life; tnose under twelve till they are twenty-three; those over twelve until the 4th of July, 1876. An ordinance has passed the Philadelphia Com- mon Counvil providing for giving to New York and Boston, from the herd of deer at Logan square, two bucks and four does to each of those cities, aud the Commissioner of city property will send them on in a few days. A Phiiadelphia journal publishes a list of the members of the Loyal League of that city, by which it appears that the association contains 633 members. Of these 241 are goverament con- tractors and office holders. Three of the members have gone to the war, and four to Harrisburg. Forty companies of sharpshooters are to be raised in New Jersey for State defence. Secretary Stanton has informed the Governor of Ohio that colored troops can only receive ten dol- lars a month and no bounty. General Schenck has broken up a nest of seces- sion sympathizers in Baltimore, which was known as the Maryland Club. A detachment of the 6e- venth regiment of this city now occupies the building. The rebel State Convention of Tennessee was held at Wincheste? on the 17th of June. Robert L. Caruthers was nominated for Governor, and the following named persons, to be voted for ona general ticket, were nomirmated for the Confede- rate Congress:—First district, Joseph 8. Heiskeil; Second, William G. Swaa; Third, A. S. Colyer, of Franklin; Fourth, Colon Warren; Fifth, H. 8. Foote: Seventh, James McCallum, of Giles; Kighth, Dr. Thomas Moenees; Ninth, J.D. C. Atkins; Tenth, John V. Wright; Eleventh, D. M. Currin. Mra. Julia Sterrett, wife of Captain Isaac 8. Sterrett, late of the United States Navy, but now in the rebel serviec, was arrested for disloyalty, in Baltimore, on Saturday last, and given a free pasa- age to her friends in the South. The lady has a | son in Fort MoHenry, who is charged with being i a spy. The Fourth of July celebration of the Union | Leagues in Philadelphia, which wae to have been | | participated in by President Lincoln, will not take | place. | ‘Phe firm of B. Hallett & Co. have been appointed | by Generai Fremont President of the Unton Pa- | cifc Railromf Company, Eastern division, its finan- | cia! agents; and for securing the speedy construc- : tion of the road, it ia stated that General Fremont ' has deposited with them two millions of doliars, | of their equivalent, to , best calculated to seo that object. We | this information on the authority of the original ; documents, which have been exhibited by General : Fremont afd are to thas effect. At @ regular Meeting of the Board of Bduoation steamship Southerner, lying in that port, isintended i das they may deem j NEW YORK MERALD, THURSDAY, Communication to the Board from Mr. Augustus F. Dowex, onc of the Trustees. It oo’ tained & statement of the ineffectual efforts he had made to have the young lady restored to her sctiool and Class, in obedience to the request of the Board. Ordered to be laid on the table. Mr. Dunham was elected permanent engineer of the Board, at an lution was adopted to withhold the signatures of the President and Clerk of tho Board from all warrants drawn by the School Trustees of the ; Ninth ward until they shall have reatored Misa | McGean to the school from which she was ox- pelled. United States Commissioner R. BE. Stilwell com- mitted John, Henry and Charles Bressell, in the sum of $250 each, yesterday, for resisting the en- rolling officer. The General Term of the Supreme Court render- ed some decisions yesterday, amongst which is one ordering the Comptroller to prepare and sign the bonds in the sale of the Fort Gansevoort property to James B. Taylor. At the same time the Court does not compel the Comptroller to procure the signatures of tho Mayor and the Clerk of the Common Council. The arguments on the appeals in relation to the olty advertising and the new Court House were set downfor Friday next, at ten o'clock, The Cumberland river is up, and navigation is good to Nashville. The water had risen about eight feet on the 28th ult. ‘The stock market was better yesterday, the advance boing from 1 to 3 por cent all round. Gold fell off 2% per cent, closing very heavy. Exchange was 158, about 2 por cent below gold. Money was pretty easy; call loans rather 6 than 7 per cent. ‘The cotton market was less easy yesterday, and mid- dlings left off tamely at 78c.a Téc. The transactions in flour and wheat were light and at easier prices. Corn was steady, but not active. The demand for sugars, mo- lasses, bay, wool and the principal kinds of provisions wns fair. Mess pork was dearer, Whiskey advanced to 45 3c. s 46c., with heavier sales, Petroleum declined 1c. @ 2c. per gallon, and olosed dull. There were no very re- markable alterations in other articles. The freight en- gagements were light and rates tending downward. Ball Beautifully. General Meade has commenced in Maryland and Pennsylvania, with the most promising re- sults tius far, his active operations against the invading rebel army.of General Lee. Our brief reports from the headquarters of the army of Tuesday’s brilliant operations by the Union cavalry, and the despatch announcing the occupation of York in force by the national troops, lead us to the conclusion that the lines of advance covered by the national army ex- tend from York southwestwardly to some point near Frederick, in Maryland, thus covering on the south the entire flank of the rebel army, which appears to be rapidly retiring. All these operations, however, were east of the Cumberland valley (the continuation in Pennsylvania of the Shenandoah valley), in which all the heavy columns of Lee are doubtless situated, between Carlisle and the Maryland border. Our forces will probably meet theenemy in strength in crossing over the dividing mountain into this valley, unless, as was reported some days ago, we are already on the west side of the mountains on the left, in which case Lee may be compelled to fall back over the Potomac river. We have no doubt that General Meade’s army heavily outnumbers that of the enemy, and that thus the strategy of concentration on the part of Loe against any point of the Union lines will not avail him. We guess that, while General Meade will bring all his forces into play, if necessary or expedient, he will takp good care that no particular column is beyond the reach of heavy reinforcements. We are satisfied from Lee’s cautious movements that he does not desire a general engagement, except upon the most advantageous terms; and we do not believe that Meade is the man to allow the enemy to choose his own terms for either a defensive or offensive engagement. It is a remarkable fact that on the very next day after the appointment of General Meade to the command of the Potomac Army we should begin to hear of the retreat of the enemy from the line of the Susquehanna. The inference naturally follows that Lee at once appreciated his danger with a bold and skilful opposing general to deal with, who retires at night clear headed, cool and collected, and who proceeds to business in the morning with the strictest re- gard to that all important military requisition of sobriety. In dealing with Meade it is not the question to Lee of “Philip drunk or Philip sober,” but the question of a, trial of strength with a superior army, the l@der of which is always wide awake and with his wits about him. Hence we incline to the opinion that the appointment of General Meade to the head of our army was accepted by General Lee as a warning to prepare for the contingency of a speedy return to the Shenandoah valley. Our apprehensions as to the safety of Wash- ington are gone. We are assured from head- quarters that “our whole army is in splendid spirits,” and that officers and soldiers have the fullest confidence in their new commander. The whole aspect of the campaign is changed from darkness to brightness, from apprehen- sions of serious disasters to anticipations of de- cisive victories. We now feel at liberty to turn from the question of the protection of Washington to the opportunity for the complete overthrow and dispersion of the rebei army. | Had the administration promptly put into exe- cution the laws of Congress and the ample . | powers therein granted for reinforcing our ar- ' mies, we might have had this day an army at H Washington of one hundred thousand men, in | addition to all the forces now assembied there, and within a circuit of sixty miles from the capital. This new army, if now on hand, would be sufficient to secure the complete annihilation of the army of Lee and the death blow to the rebellion. But, under the mischievous counsels of such abolition professors of the art of war as the Wades, Chandlers and Wilsons, the ad- ministration for months was diverted from the | movoments of tho rebels in Virginia to the stupid sayings and doings of peace orators and copper- j head peace journals in the Northwest; while ; Gen. Hooker, instead of vigilantly watching the | enemy in his front, was busy day and night in | regulating or suppressing the circulation of | newspapers and in a foolish campaign against {| the newsboys. But, notwithstanding all this budget of blun- ders, we may congratulate the country that in the orisis of the public danger the proper steps have been adopted for the public safety. | These steps, im the right direction, have been Annual salaryo! twelve hundred dollars. A reso- | morrow, or held to the end of the war. In | giving us at this important juncture a new Commanding general who possesses the confl- dence of the army, and whose abilities for h's | position are already beginning to be illustrated in the field, Harper’s Ferry has resulted in securing us the most desirable of all things de- manded by the exigencies of the day. In view of the speedy expulsion of the rebel forces from Pennsylvenia and Maryland, and in view of the necessity which will then com- pel General Lee to take the back track to Richmond, we should think that the wise heads of the War Office have had experience enough in our past campaigns in Virginia to know what todo. They know by this time all the highways and byways along which an army may get out of the Shenandogh valley into the country east of the Blue Ridge; and how an army, even after crossing the mountains, may be intercepted on the road to Richmond. First, however, let us await the issue of the movements of the opposing armies in Penn- sylvania and Maryland, and then, with the ex- pulsion of the enemy back into the Shenandoah valley, the failure of the War Office so to co- operate on the enemy’s flank with the move- ments of General Meade upon their rear will result in @ public demand for a reconstruction at Washington which President Lincoln will be able no longer to resist. On the other hand, let the War Office seize the opportunity and ggoure the defeat and dispersion of the rebel y of Virginia, and all the past blun- ders and acts of negligence on the part of Messrs. Stanton and Halleck will be forgotien in the general exultatiens of a grateful people. It is the anny of Lee that is now in danger; and now that the government has the men— volunteers and militia—and the means at hand, for the overthrow and dispersion of his army— now is the time to bring them all into action. The City of Mexico im Possession of the French. We have the most exciting news to-day from Mexico. The French are in ecoupation of the capital, having found no obstacles in their march after the capture of Puebla, which is in itself a very suspicious circumstance. The Mexican troops withdrew four days before the French entered, and the church party tendered their allegiance to Napoleon. The seat of gov- ernment, the treasure and the arms and muni- tions of war have been transferred by Juarez to San Luis de Potosi, which lies considerably northward, among the mountains, in the direc- tion of Texas, where resistance can be continued to the progress of the French arms with greater advantage than in the capital, which the Mexi- can government desired to save from bombard- ment. By moving in this direction Juarez will be enabled to fall back upon the Southern con- federacy if hard pressed, and to form an alliance with it. The new seat of government, moreover, is the centre of the mining region; and it is evi- dent that by taking possession of this point Juarez does not mean to give up the contest. This is further plain from the fact that the twenty thousand men who garrisoned the capital have been withdrawn to Cuernavaca and to intermediate points around the city, for the purpose of carrying on a guerilla warfare, for which the Mexicans, like the Spaniards, are famous, the geographical character of the coun- try of both nations being favorable to this mode of hostilities. With the aid of a small British force of thirty thousand men the Spanish guerillas drove a large French army out of Spain. With the aid of an army of twenty thousand Confederates the French could be as easily driven out of Mexico. Any person, by consulting a map of the Mexican republic, will see that the territory lying south of the capital is about one-fifth, while four-fifths of it are north, including the most valuable mines. The French do not occupy even the southern portion of the country, but merely the road from Vera Cruz to the Halls of the Montezumas, and the Mexican army isstillintact. Cortez in bis expedition con- quered ignorant Indians, unacquainted with fire- arms or the use of iron. General Scott succeeded rapidly in his conquest, because the Mexicans were well aware that the American government did not want to destroy the independence of a sister republic, but merely to obtain redress for wrongs, and they submitted because they hated the yoke of Sunta Anna. The manner in which they fought for their independence against the mother country, and their resist- ance to ambitious rulers, who have since sought to establish a despotism over them, are earn- ests of what Nupoleon has to expect before he can sulflue Mexico. General Forey, too, has already thrown off the mask by issuing a decree confiscating the property of all who have been or are in arms against the French; aud a new journal, started in the interest of Napoleon, states that “the occupation of the city of Mexico settles with absolute certainty that it is necessary to extirpate by root the democratic element, and no longer need there be even a dream of popu- lar sov nity.” Will the Mexicans submit to this? Never. But it fully reveals what are the de- signs of the Emperor of the French, and how deceitful are his circulars, denying that he ever intended to interfere with Mexican independ- ence. Now that*he bas been compelled to show | his band, be will pretend that his object is to educate the Mexican people, like Algeria, into sel’-government, of which they are at present incapable. And to this end he will construct railroads and set on foot other public works to develop the resources of the country. It is already announced that he intends to unite the Atlantic and the Gulf of Mexico with the | Pacific by a railroad extending across Mexico from Vera Crus to the capital, and thence to Acapulco. By this route the Emperor of the French expects to monopolize the trade of the East, and at the same time he hopes to EE the country to the condition of a French province, and to get possession of all its mines. In otber words, he calculates upon a new East Indies in Mexico, and to make France rich by the conquest. But there is many a slip between the cup and the lip. There is no doubt he may build the new rail- road from Vera Cruz to Acapulco, and we should suppose that the Mexicans will not ob ject to a work of such immense value to their country. Let Napoleon, therefore, go on with the enterprise. It will be 80 much done for the benefit of Mexico and the Mexican republic. For when we shall have settled our domestic ‘The steamship North American, from London. | last evening, a communication was received from | delayed to the eleventh hour; but we are | troubles we intend to take possession of the Gerry on the 19th of June, passed Father Point Jeo day morning on her voyage to Quebec. The Okina, which lof? Queenstown on the 21s0 of June, | Bree tay sr, (and very interesting character. the Mayor, designating the Htsaty and Tribune as papers In which the offlcial proceedings of the | Board are to be published. Referred to the Audit. | ward on h ¢ refusal to sing the ‘‘ Battle Hyma Committee. The trouble in the Ninth ward, ; thie port yesterday afternoon. The news po dbeoy School Trustees having distatnaed, | Ferry resalting im Hooker's removal, we think and will be feund of o varied | Miss Kate MoGean from & pubilo sohool in that | | sanguine that they will save the day. From the dispute between General Heoker and General Halleck in regard to the value of Harper's that the capreme importance of Harper's Ferry of | bas been fully cetablished, whether the place Me. Gildell, the rebel commissioner is Paria, the Repablic,' wae mace the subject of & lengthy | may be ebandoned et captured to-dew or to- | eo will give Napoleon great solat in Eurone, railroad, and to drive the French from every | foot of Mexican soil, unless the Southern con- federacy shall have previously done so. Wo hope the Emperor, therefore, will gtve us notice of the completion of the work. Meantime the cocupation of the olty of Mexi- JULY 2, 1863—TRIPLE SHEET. and sastala the prestige of the French arms. Ic will make higr {mmensely popular in France, and enable him td o2rry out his programme touching the Polish question, 22° wili proba- bly proceed to dictate terms to the Zar, asd insist on the independence of Poland. But Sus- sia will not relax her grasp of Poland without a long and bloody struggle; and while Napo- leon is busy in settling the question, either by the arbitrament of the sword or by the arts of diplomacy, or by both, and while he is regu- lating the affairs of the Pope, and pays off to England all old scores, the United States will be in a position to have something to say about the regulation of the affairs of Mexico and of this continent generally. One design of Napoleon is to re-establish the monarohical principle on the ruins of demoo- racy in Mexico; and in this he is supported by all the monarchs of Europe; for it is hoped that the leaven will spread northward, and change the demeoratio institutions of the con- federaoy. On the other hand, the erection in Canada of an independent monarohy in the English interest is aleo projected, both as a counterpoise te French influence in America and with the expectation of gradually absorb- ing the Northern States. In recent years the tendenoy of the Canadian people, particularly of the inhabitants of Canada West, is to gravi- tate towards the United States. The country is, now more'free than the mother country, and far more democratic. But in Canada, as in Mexico, there is a monarchical party who desire to see kingoraft firmly established, and their organs have been recently advocating the erection of a monarchy, with ene of the royal family of England at its head. They say this is the right time to set the ball in motion. The meaning of which is that while the North and South of the United States are engaged in a deadly interne- cine struggle, and when Napoleon is flanking the country on one side with hostile European in- stitutions, Great Britain ought to aid in the work by commencing her flanking operations on the other side. Thus do the great Western Powers of Europe hope to crush out democ- racy in America. But let them keep cool. Their slippery, hypocritical alliance is des- tined to be of brief duration. There is no en- tente cordiale. Jealousy and fear of each other are too strong to permit effective co-operation, and any little accident may in a moment shat- ter even the superficial understanding between them. The day is not distant when al! their elabo- rate arrangements will be snapped asunder like aspider’s web, and the young giant of America, awaking to a sense of his danger from foreign complications, will speedily settle his house- hold affairs, and go forth in his might to sweep from this continent every vestige of European dominion. The Present Position of Napoleon the Third in Europe. The successes of the French forces in Mexi- co have entirely changed the position of the Emperor Napoleon, not only in his own empire, but throughout all Europe. The fall of Puebla relieved the Mexican expedition of the stigma of unsuccess, and, by giving promise of a speedy termination of the campaign, rendered it less upopular with the masses in France. When it shall become known in Europe that the city of Mexico has fallen into the hands of the French without a blow, and that the church party are sworn adherents of the Emperor Napoleon, the prestige of the latter will regain all its lustre which the protracted resistance of the Mexicans had so tarnished. The Emperor will thus escape the blows of the opposition, who had in the Mexican expedition a lever wherewith to un- dermine the influence and power of his Majesty. The people of France will be blinded by vani- ty, and will, for the nonce, shout Vive I'Em- pereur with considerable enthusiasm, as they always do after a victory. It is well known that Napoleon intends im- proving the interna! condition of Mexico; that he will construct railroads, and in every man- ner increase and cultivate the resources of the country. He will work the gold and silver mines, and draw a large revenue from the con- quered people. Thus, on the score of expense, he has now a real and palpable advantage, which the French will not be slow to appreci- ate. They will understand that all the treasure expended will be recovered, and will, from that very fact, look upon the expedition now with as much favor as before they cried out against it. Of course Napoleon will be all the more powerful in Europe, and we may look to see him take such measures in the Polish question as will enable him to push out his frontiers to the Rhine. He will provoke Russia to open war. Prussia, it is well known, will side with Russia in the matter, and Napoleon will not lose the opportunity to seize upon the territory which will give him the Rhine as the boundary between his empire and Germany. Austria has shown a desire to keep clear of any quarrel which may arise apropos of the Polish question. She sides neither with France and England nor with Russia, and will no doubt endeavor to play the same role she enact- ed during the Crimean war. Whother Napo- leon will allow her thus to steer clear of all difficulty remains to be seen. He has a great advantage over the Austrian Emperor, as, through Hungary and Venetia, he can force him to take measures such as will suit the policy of France. Italy will act with Napoleon from the same cause, aad Spain will side with France, because at present she is flushed with success. We have the assurance of Lord Palmers- ton that there is a complete understand- ing between France and England upon ali questions, whether East or West. The suc- ess of the Mexican expedition will render the entente cordiale ali the more likely to be firm, as England will now fear Napoleon more than ever. It is to be apprehended that, flushed with the success of his Mexican scheme, Napo leon will endeavor once more to mediate in the affairs of this country. will feel now that he has recovered ge, and will wish all the world to fame. We do aot doubt that France wi? tet dasume e most prominent position, and that she will dictate to the Powers of Europe with an audacity never but once paralloled. We refer to the days of the great Napoleon. The present Emperor is well aware that to drown the discontent of his subjects he must cater to their vanity, and we shall doubtless see him doing this to a surfeit of the feeling. Europe will fear the man in his great success. Let us hope that we may ere long have time to pay attention to the movements of Napoleon on this continent. The inclination to do #0 is strong enough now. This opportunity will, we hope, soon present iteelf, When it doce Napoleon will find that Mexioo will prove as fatalto him as did Mos- oow to the first Emperor. a en aed The Financial and Political Schemes of Seo: ry Chase. Secretary Chase has twe organs in this oity— one to attend to his financial and the other te his political affairs. Samuel Hallett and Com- | pany, bankers, in Wall street, devote their at tention to the financial department of Secreta- ry Chase’s concerns, and publish once a weeks his financial organ, called “The Amerfoan Cir- cular.” On tke other hand, the New Yora Herarp takes « gts interest in the Secretary's political manceuvres, gnd fellows him, con | amore, in his plans tc outwit President Lincoln, his schemes to get abead of poor Seward, his efforts to organize loyal leagues, and his tm- mense, secret, underground machine?y to upeet | all the other republican candidates and secure his nomination for the next Presidency. With two such organs Seoretary Chase is pretty eff ciently represented, and the public cannot fail to be accurately informed of his financial and political policy and prospects, From the financial organ, to which we have already referred, we learn that the exact com dition of the public debt onthe 29th of June, 1863, is as follows:— Four per cont:-— TOMpOrary loAMserevescesereerrerersreres $28,526,208 Treasury notes 116, Cortifioates of indebtedness. ...156,835,241 1810 bonds, due Aug. 19, 64.. 62,081,000 78-10 bonds, due Ook. 1, '64.... 86,980,600 United States notes Fractional currency: Total...... -41,100,836,548 The Secretary of the Treasury has, however, decided to take advantage of the option given him in the law, and will continue to exchange the five-twenty bonds for legal tender notes during the month of July. “Beyond this,” as we are officially informed from the Treasury Department, “it is impossible to state with much precision what the action of the Depart- ment will be. It must be determined by exi- gencles as they arise; and, as these result from military successes or defeats, their character cannot be foreseen.” The object of continuing the exchange of five-twenty bonds for legal tenders during thirty days more is neverthe- less very evident. It is to get ready for the issue within a year of four hundred millions of dollars worth of legal tender bonds—that is, bonds legal tender on their face. Add this sum to the amount of legal tender notes and legal tender fractional currency in the table given above, and to this add the two hundred millions of dollars in paper money which the national banks are likely to issue during the year to come, sd it will be seen that within a year we shall have the currency increased by over @ thousand millions of dollars worth of government notes. This will inflate stocks, ia- flate business and inflate prices generally, and we may judge with some accuracy of its offects by the present condition of eur currency, with not quite half that amount of psper money fu circulation. Such is the financial situation of the goverm- ment, and such are the financial prospects ef Secretary Chase, subject to the exigencies of the war. Wo are sorry to say that the Seore- tary’s political prospects are subject to the same cruel haps and mishaps. For example, we know that he had prepared for a grand loyal league demonstration in Philadelphis on the Fourth of July, and that he had induced President Lincoln to consent to address the meeting. This would have been a splendid stroke of policy. In the first place, Mr. Chase would have obtained an apparent endorsemeat from the President of his political machinations, of which the loyal leagues form a prominent pert. In the second place, ie would have com- pletely outmancuvred Mr. Seward, who has not arranged for any mass meeting of his fol- lowers. In the third place, he would have greatly diminished Mr. Lincoin’s chances of re- viection by exhibiting our worthy President bound, like a Roman captive, to the chariot wheel of his astute Secretary and political rival. This was@ magnificent conception; bus Lee has ruined it. The rebel invasion has given President Lincoln other fish to fry. He will have as little leisure to make speeches as the Philadelphians have to hear them. The loyal league demonstration will have to be transfer- red to the fortifications at Harrisburg or the trenches now to be dug around Philadel- phia. Such are the accidente and ¢! of life. But etili no one can withhold from Secre- tary Chase great credit for bis brilliant ides. When we lately announced, on the authority of our correspondent in the Treasury building, that the Secretary took his friends out riding whenever he wished to hold confidential politi- cal conversations with them, we pronounced that a fine strategical movement; but this loyal league business displays even a larger grasp of intellect. Now that this stupendous design has failed, however, “it Is impessible to state with much precision” what Secretary Chase wi’! do next. Perhaps we had better conclude, in tho Seeretary’s own words, be fore quoted, that “it must be determined by exigencies as they arise; and, as those result from military successes or defeats, their cha- racter cannot be foreseen.” Provar.e ALU wor Between ram Mexican GOVERNMENT AND THE Sovrnern Convepe- Racy.—The policy of the Mexican government in moving th: seat of government and their army northward, and quietly leaving the Frenok in ocenpation of the capital, indicates a tem dency towards the consummation of what has been so long suspected—an alllance between the Mexicans and the Confederates. . With the aid of from twenty to thirty thousand troops of the confederacy Juarez could capture the whole French army, and clear the country of every hostile foot. In return the Mexicans could give great assistance to the confederacy by supply. ing them with numeroue articles whieh are in- dispensable in war, and are at present shat out by the blockade or only admitted in insufficient quantities, By the very threat of such an alliance at the present moment the confederacy may extort @ recognition of its independence from Napoleoa; and it is worthy of remark that the items of news brought by the China, and pub- lished in another column, {6 the significant announcement that “Mr. Slidell, the envoy of the Confederate States, has hada very long with the Emperor of France. The Emperor sent for him, and had a private teteo- tote with bim at breakfast, and did not part with him until the Counoll of Ministers hed assem.