The New York Herald Newspaper, December 12, 1863, Page 4

4 NEW YORK HERALD. to perceive, ia folowing the law of all similar re- volts of @ disorganized mob against adisciplined gee army. The riotera and revolutionists wore com- JAMES GORDON BENNETT, ing in by hundreds, and submitting to the Spanish EDITOR AND PROPRIETOR commander. Some had taken to the mountains, = but cannot long remain there; while others, ex- — = = Wolame XXVIII. -Ne. 344 | pecting to fiud safety aud protection across the = ~ = Haytien frontier, have been seized by the soldiers of Jeflrard and surrendered. There is nothing im- portaat from Mexico, The chances are all atill favorable to the French, although there are 10 ounts of further movements on any side, he Board of Aldermen held another session yesterday—the fourth this week—and transacted considerable routine business, The Street Com- missioner was directed to report the probable coat repairing piers Nos, 51, 52, 53 and 64, where the receat conflagration took place, aud also the cost of removing the sunken vessels. By the monthly report from the Department of Finance it appears that the amount of expenditures in tho year 1863 was $6,733,340 92, and that the unex- peuded balaace in the hands of the City Treasurer on the 30th of November was $1,393,009 15. Tho bills of Charles Stetson for $36,290, for banquets furnished to several returned regiments, and $6,750 for the banquet to the Russian officers at the Astor House, were presented and laid over. The Board will meet again to-day at one o'clock. The Board of Councilmen met et one o'clock yesterday, when Mr. Haviland offered a resotution directing the Harbor Commissioners to take im- mediate steps to remove the hulls of the veasels which were deatroyed by fire at the foot of Charles and Christopher streets, North river, on Wednea- day last. Referred to the Committee on Wharves, Piers and Slips. The Board remained in session about one hour, duriog which the business trans- acted was mostly of a routine nature, aud on mo- tion adjourned uutil noon to-day. Yesterday the Surrogate heard E. J. Biankman inan argument of four hours’ continuance in fa- vor of admitting the will of Charles Hopper to probate. James ?. Brady was preaeat on the side of the contestants, Judge Betts, of the United States District Court, has rendered an elaborate and important opinion, condemning the prize schooner Stephen Hart and her cargo, partly owned by British subjects. The casea of the Springbok and other British vessels is now under the consideration of the Court. IMPORTANT FROM MEXICO. New York, Saturday, December 12, 1863. THE LIST OF LETTERS. We are this moraing compelled to leave out the list of Letters remaining in the Post office. It will It will, how- ac be published on Monday morning. of ever, be posted early to-day at the Post Office aud on the Hgraco bulletin, IMPORTANT REPORTS Annual Reports of the General-in.Chiet and the Commissioner of Internal Rev- enuc—Jef. Davis’ Message. , We have rec d the full reports of General Halleck. the General-in-Chief, of the operations ‘of the army during the last twelve months, and of Judge Lewis, the Commissioner of Internal Re- menue, showing the operation of internal taxation Yor the same period of time. The latter is crowed but tiilto-morrow. General Halleck’s report will pe found in elsewhere. We have also re- Ceived Jeff. Dayis’ message to the rebel Congress, It is unusually long—twice which we give in full. as long aa avy previous message of the rebel Chief. THE SITUATION. As an evidence of the total cessation of all war- like operations it may be stated that for the past three days the President has not received a tele- fraphie report from either the Army of the Poto- mac or the Army of the West. Mosby's and White's guerillas are very active around Lovetts- Ville. ‘They are watching our transportation trains and forage wagons closely, and making an occa- sional dash on them, The pursuit of the Chesapeake continues, but go far withont success. A vessel supposed Gondedi Gia catent ixebindoied eid to resemble her is reported to be at St. at Queretaroand Guanajuato—Juarez Marys, near Halifax, where she did not dic., de. rt ceed in getting any coal. Proceedings Ban Faanoisco, Deo, 0, 1863. men eee re rn Oe . 88 | Arrived stoamor Goidea Ago, from Panama, steamer were about to be taken by the law offi: | panama, from Mazatlan, witn one bundred and forty cers ia case she should prove to be the | thousand dollars in treasure Dates from Colima, Moxico, aro to November 27. General Comonfort was killed on the road botwoea San Luia Potosi and Guanajuato, while Aghting a baad of Mex- ieavs who favored French occupation. ‘The Freuch had possession of Querctoro avd Guana- juato, aud were marchiag on Guadalajara and Morolia. Manzitia was sacked by robbers on the 18th of Novem- ber and the Custom House was destroyed. Colima was sarrounddd by Conservadores, The Juaror goveramoent was reprosevted to be powerless, and anar- chy reigned withia bis nomina! jurisdiction. This news comes through private letters toa commer: cial house of Sap Francisco. NEWS FROM WASHINGTON. Wasmmatoy, Dec. 11, 1465. FINANOLAL MATTERS. The advance in gold in Now York, notwithstanding the uvexpectediy favorable cuudiiion of the national fimances exhibited by the report of Bir. Chaso, excites considerable remark. Pubic attention does not appear to have beco attracted to that part of the Message witch indicates an intention on the part of ube Secretary to conduct his fu- ture operations with a view to an cartier roturn to specie payments than is gonorally supposed to bo possible. It is stated, in explanation of the stiffaess of the gold market, that a combiuation ‘exists iu New York, composed of a number of Leavy capi- talists and wealthy merchants, holding large amounts of cotton, as also of sugar, dry goods, &o., imported under existing rates of exchange, and that (bis. combination have @ targe fund pledged, tho amount boing statod at seven millions of dollars, for the purpose of counteractiog the eftvct which the Secretary's report might have upon Ube price of gold and exchange. Influontial gentiomen {rom New York and other commercial ceatres have ropre- sented to Mr. Chase the importance to the government and the country of breaking up this combination, and varions plans bave beea propared to accomplish this. He will, however, carry out bis own policy, and it is be- lieved that it will thwart auy combinarion having in viow the depression of the aational currency and increase of the expense of the goverament in the supprossion of tho rebellir Chesapeake. The collector at Portland received a despatch yesterday stating that she might be cap- tured by guaboats if they reached the ground to- day. The directions furnished by the rebel Captain Parker to Lieutenant Braine for the seizure of the Chesapeake are given in our columns to-day. His instructions were to bring the prize to the island of Grand Menan—Seal Cove harbor, if accessible— find there await further orders, The guaboat Acacia, which went in pursuit and sprung a-leak was hauled up on the flats at Port- The gunboat Aga- into Rockland for coal. land yesterday for repairs. wam p By the arrival, last evening, of the steam trans port Palton, from Port Royal, we have the intelli- gence of the the Monitor iron-clad Weehawken, which sunk at her aachor inside of Charleston bar, on the afternoon of Sunday last. Four of her engineers and twenty-six of her crew were drowned. A furious gule prevailed at the time, but no damage was sustained by the rest of Admiral Dahigren’s fleet. The details of the calamity are given in oar special correspond- ence, in agother columa. The transport Fulton, on ber way from Port Royal to this port, on the 9th inat., captured the British schooucr G. O. Bigelow, eleven days out from Bermuda, with a cargo of salt, for Newbern, N.C. Her papers were informal; but, after tow- ing her two hundred miles, the Fulton relin- quished her prize on account of the violence of the weather aad the impossibility of getting ahead with her till the gale subsided The military situation before Charleston was unchaaged wheu the Fulton left. Deapatches from Camberland confirm the rebel loss of THE CAPTURED STEAMER CHESAPEAKE. The Steamer Reported to be at 8 vurne and St. Mary’s—Arrival of Oapt. Wi letts at Port ai—The Rebet Capt Se. Vowrians, Me., Dee. 11, 1865. The ageats of the steamer Chesapeake here have evidence that tho cargo of the Chesapeake was owned exclusively by American and Cavadian merchants, aod was not tatended to run the blockade, as reported by the St. John Globe. Rebel sympathizers bere originated that report, to the prejudice Of the British authorities, Noither had she ever been a Southorn vessel or attompted to run the blockade. Tue Collector at Fastport tvlegeaphs the Collector at Portiand that @ Mr. Killaa loft Publico, too miles south of Yarmouth, last Monday, aud that three French vessels laden with coat were lying in the harbor Tho gunboat Acacia is atitl loaking, aod will bo bauied up for examination SRCOND DRBPATOH. Portiano, Dec. 11, 1863. sui at Halifax telegraphs Collector Wash- or ia in Buelbourne answoring tothe description of tke Chesapeake. She attempted to coal at Halifax Iaat night. The goveroment was applied to, but ho encouragement was given for want of evidence of murder committed. An alfidayit of the charge would be made to-day The crown officer was dotiberating upow it, ‘The guaboat Aco was bauled up oa the fats to day, and one side examined, witbout finding the leak. ‘he water m ber would pot rua out. The ganboat Agawam, honce in pursuit of the Cheaa- peake, arrived at Rockland today short of cox! Bho awaits orders. * statements, which we published yesterday, that G nessee, to which poiat he retreated after his de- feat at Kaoxville, The rebel guerillas are reported to#be very neral Lougstreet is at Morristown, East Ten- troublesome in Chester, Wayne and Cumberland counties, Keatucky We present to our readers this moruing, amongst other very important subjecta of interest, Jeff. Davis’ Message to his rebel Congress in extenso, Itisatengthy document, commencing with a review of the war for the past year, and closing with the “the only hope of peace is on the vigor of resistance.’’ Passages will be found, however, through the Message, which be- tray the fact that Mr. Davisis rather dubious as to how the means of vigorous resistance can be | seatiment that The Vics buroe that» raised. The policy of foreign governments and the currency question, with the mode of raising | increased taxation, are the topics most elaborate- | Ly diacuased. bat oa the latter rather despondent. meads largely increased taxation and fresh levies | of troops. He informs Congress that the mines | On the former he is very eloquent, He recom- of the South and its foundries and workshops can THIRD DRIPATON. Vowri.amo, Doo 11, 1363. The steamer Now Eoglant arrived this morning from St. Jobo, bringing Captain Witlet and a portion of the crow of the Chesapeake, al\ of whom, with the exception | of the mate, who is badly wounded, procesded to Boston. plain Willets reports having met two steamers bound supply (hem with all the munitions and meferie! needed for continuing the war. MISCELLANEOUS NEWS. Tae steamship Canata, from Queenstowa on the 29th of Nofember, reached Halifax yesterday, on her voyage to Boston. Hor nows is three days | @@st, undoubtedly in pursuit of the pirates—both side later. The rebel agents had added some British | We! steamers. He also reports that al! tho persons on. watt he. ° he Sadeina | gaged in the capture of the Cheaapoake from St steamers to the Davis navy. The jnigment in the | Sofi to Boston in the steamer New England Alexandra caése was to be given on the ith instant. Minister Adams made an important speceh at a Thanksgiving dinner in London, The privateer Georgia was at Cherbourg. ‘The Czar was not _ You ate bereby ordered to proceed to the city of New wiverse to the a of a congress; but Napo York with the followi Firat Lieutenant H. A. Parr, n was ovidently chagrined at England's refusal. | >" - a enh tape ae oa os o< t and the crew of elew 0 rmany wad still deeply agitated towards war val eogage passage oo board the steamer, and use x.co and Cochin China have produced a deficit bd A a x as to the proper By Ly place to the Preach treasury of £10,000,000. Lord Elgin | wiii be strictly tn ac the ‘President's ta. is svid to have died in China. Cotton had ad- | structious. You wit, stances will permit, ease: : “| pring your prize to the Isiand of Grand Magan for Cur anced. Breadstutfs and provisions were steady. | ther orders—Seal Cove harbor. if accessible ouden, ou the 28th ul ousols, for money, | JNO. PARKER, Captain Privateer Retribution d at 0224 a 924, FOURTH Dearatod, sof Cap Good Hope papers, dated Powr.ano, Dec, LL, 1963. On the 16th of Ootot are full of items concera c ¢ Waahburac has just received the following ing the movements of tho Alabama and Vander. | {0M Halifax -"Tbe Chesapeake 19 at St. Marys des bilt; but the important points of the reports have | of coal, Guuboats will take hor i (hore to-morrow already reached us from Mogland. On the Iithof | The Centeat Ratiroad Klection—ton. October two large ste were seen from the | K Corning Chosca President. Kareiga, and the reports of sixty cannonshots were | Avaany, Doo 11, 1365 counted there during the day. It was supposed The election for Directors of the Coenmtral Raitroad way from this that the two vessels had had an cugage. | ited thie evening. About twelve and a halt m', ment > fiona wore voted for the olf board, aad aie millions fo” B ‘the ‘ | the opposition By the steamer Bagle, from Havana, we have | qThe directors sabacquentiy hold a mesting, electing jortant news from St. Domingo. The revo- | Brastus Corning, Vresideat, aod Maan Michmond, Vico Wwyee Ogaingt Spanish domination, as it was easy | Provigema a IMPORTANT REBEL NEWS. Mesgage of Jeff. Davis to the Rebel Congress. REVIEW OF THE WAR. Serious and Grave Reverses Acknowledged. European Governments Posi- tively Untriendly. Tho Rebel Government Denied Admis- sion Into the Family of Nations, Jeff. Davis Seeks to Retaliate, bat Can’t See How. THE FINANCES. Increased Taxation Strongly Recommended. The Currency to be Limited to a Fixed Sum, ARMY. THE Important Reforms to be Instituted. THE EXCHANGE OF PRISONERS. “The Only Hope of Peace is in the Vigor ef Resistance,” Ge. &., Ge. To THe Senate AND Hoo o Repassaneatives oF Tua Con. reperate States: — Tho necessity for logistative action, arising out Of the important events that bavo markod the interval since your adjournment, avd my desire to have the aid of your counsel on other matters of grave public intercat, render your presence at this time more than ordinarily welcome, Indeed, but for gorious obatacios to coavoking you in ex- traordinary seasion, and the necessity for my own tem. porary abseoce from the seat of govorament, I would have invited you to an earlier meeting (haa that Gxed at the date of your adjournment. Grave reverses befel our arms soon atter your depari- ure from Ricbmond. Early in July our strongholds at Vicksburg and Port Hudson, togother with their entire garrisons, capitulated to the combined land and naval forces of the enemy. The important tierior position of Jackson next felt into their temporary possession. Our unsuccessful agxatilt on the post at Hoieoa was followed, at a later period, by the invasion of Arkansas; and the retreat of our army from Litile Rock gave to the enemy the omtro! of the tmportant valley in which tt ts situated ‘The resolute spirit of the people soon rose superior to tho temporary despondency naturally resulting from these reverses. The gallant trovps ao ably commanded. inthe States bayoad tho Mississippi inflicted dofeats on tho invading armies ia Lousiana aud On the coast of Texas. Detachments of troopa und active bodies of partisans kept up 80 effective a war oo the Mississippi rivor aa practically to destroy its value a8 an avenue of commerce. ‘The determised and success’y! defence of Charleston agatose the joiut land aad naval operattousof the cuemy rded au inspiring oxample ot our ability to repel the attacks even of (ho ion clad feat, oa which they chiefly while oa (he Nertharia froatiar oue success was 6till more ‘kod. ‘Toe able commander who oorducted the campaiga ta Virgints determined to meet the threatoned advance on Richmon hich the enemy had made long and ot costly preparations—by forcing their armi¢a to cross the Potomac and fight ia defence of their own capital and homes, ‘Transiorring the battle fiali to thoir own aoil, he succesded in compelling thir rapid rotre t from Virginim, and ia tho hard fought battle of Gettysburg inflicted auch severity of punishment as disabled them {rom early renewal of (ho campaign ag originally projected. Unfortunately, the communications oa which our generat relied for re 4 his supplies of menitions were interrupted by extraordinary floods which 60 swelled tha Votomar a3 to render impassable the fords by which hig advaace Lad besn raade, and be was thus torced toa withérawal, which was conducted with deliberation, after securing large trains of captured Supplies, and with a constant bul voaccepted tender of ‘On more than one ¥ on the enemy bas domongirations of a purpose to advance, inv: lowed by a precipitate retreat (> otronched ines ou the approach of our forces ‘The effective check thus Opposed to tho advance of im waders at al! poinis was such a9 to ailord hope of their earty expulsion (rom portions of tho (orritory previously occupied by them, when the covntry was painfally sur- priged by the {ntelltgence that the oifiver in command of Cumberland Gap lad surrendered that important and easily defensibie pass without firing ® shot, upoo the summons of a force stil! believed to have been tnade- quate to its reauction, aod when reinforcements wore within supporting distance asd bad been or dered to his The entice garrison, includicg the commander, being atili bold as prisoners by the onomy, [ am unable to suggest any explanation of (his disaster which laid open fern Tenneasee and Soulhwestarn Fi gira to hostile operations, and brok: ("Line of commumy- Cation behoaen the scat of government ond Middls Tennessee. ‘This easy success of the opemy was followed by an ad vance of Geverat Rosecrans into Georgia, aad our army evacuated Chattagooga and availed itself of tue oppor. tunity thus afforded of wiunlag ov (he held of Chicka. mauge ove Of the most brillant and decisive victories of the war. ‘This signal defeat of General Roseorans was fol- lowed by nis retreat into Chalisnooge, where his im- perilied position bad the immediats olvct of relieving the pressure of (he invasion at other points, forcing the con- ‘ation, for his reliel, of lary bolios of troopa with from the armies in tho Mississippi Valley and in ro Virginia. The combine’ (orees thus accumu- iated against ag in Tennessee #0 groxt!” outnumbered our army as (o encourage the enemy to attack. Aftor a long nd severe battle, ta which great carnage was inflicted on him, some of our troaps inexplica)!y abandoned postions of grea! strength, and by @ disorderly retreat compelled the wom to withdraw the forces elsewhere sue cessful, and finally to relire with his whole army ‘position some twenty or thirty mile to the . It is believed that if the troops whe rieided to the assault had fought with the valor which they had disptayed on jous Occasions, and which was mani- fosted ia this battie on the other parts of the lives, the onemy would bave beea repuisel with very great siaughter, and Our country would havo escaped the mis- fortune and the army the mortification of the first dofeat that has resalted from misconduct by the troops. In the meantime the army of Gooeral iturnside was driven from all tte feld positions in Matera ) and force’ to retreat into its introochmeats at Knoxville, whoro for some weeks it was threatened with capture by the forces ander General Longstreet. No information has reached ma of the final resw’! of the operations of our commander, though tnielligence hay arrived of his with: drawal from that place Whilo, therefore, our success in déiving the enemy from our #o\| bas not equaliod (he expectations confident ly entertained at the commencement of the campaign, hits Curthor progress haa beet checked. If we are foreed to rogrot losses ta Tennosses ant Arkansas, wo are not ind for congratulation oa snecesses to Louisi ana and Texas. Om the sea cose he is exhausiod by cain forts (@ capture Our porls, while om the worthern wntier he has mn turn fel the ‘pressure and dreads the renewal of invuvien ho indomitable cour. 6 and perseverance of the people tm the defence of their homes bave been oobiy arcestod by the unanimity with which the Legisiatures of \iegima, North Carotion and Goorgia have receotly givon expression to the popu lar sontiment: and like maoi‘ostations may be antict pated from all the States Whatever obstinaoy may be displayed by the enemy io bis ‘encriflioes of mouoy, life and liberty, to the lope of eoslaying us, the experience of mankind haa too conclusively shown the superior endurance of those who aght for 0, livorty ‘and indepeadence, to permi( ay doubt of the rovult FORKIGN RELATIONS, LT ragrot to toform you that there baa been no Improve meat \o the state Of our rolations with foroigo Countries since my meneage in January last On the cootrary, hore haa beoa a still greater divergence ta the conduct of European nations from that practical impartiality which alone deserves (bo cams of nowtrality, ard ther action, tm some Cases, has assumed a character postinely wniriondy You bage bordtofors bose iaformed that, by common wodoratapgiodiog, (bo Wil 791 a!) agtian Wragmiag te A Hail ill S83 E ite ; | Hy those sources Of information by their official publication, ln May, 1861, the government of her Britannic Majesty iaformed Our enemics that it bad not “allowed any other thau an tutormediate position on the part of the Southern the ies of this country (Great Britain) were rather wii ¢ North than with the South." On the 1st day of Jane, 1861, tho British “government interdicted the use of its ports ‘to armed auips and, a vateors, both of tho United States and the so-called Cop. fodorate Statea,” with their prizes. Tne Secretary of the United States fully appreciated the ter Stato of and motive of this interdiction, when he observed to Lord Lyons, who coumunioated bes yal this measure, and that of tho game charactor wh been adopted by France, would probably prove a death blow to South- ern privateering.’”” ~ On the 12th of Juno, 1861, the United States Minister 1a Loadoa informed her Majesty's Seoretary for Forei Allurs that the fact of bis baving beid solorviews wil the commissioners of this had given “groat dissatiafaction,"’ and that ® protraction of relation would be viewed by the United States. ‘as hostile in spirit, and to require aome corresponding action aceord- tagiy.”’ im response to this intimaii her Majesty's Secrotary assured the Minister shat tion of geeing them any more.” By proclamation, issued on the 19th and 27th page 1861, President Liocoin prociaimed the blockade of tho entire coast of the confederacy, extending from the Poto- mac the Rio Grande, ombracing, according to the ro- turns of the United States coast survey, @ coast line of three thousand five hundred aad forty-nine statute miles, ‘ou which the uutmber of rivera, bays, harbors, inlets, sounds and paaaes is one Lundred and eighty vino. The vavy possessed by the United States for enforcing this Diockade was atated io the reports communicated by iacoia to the of the United States to consist of twenty-four vossels of all classes ia commission, of which half were jn distant seas. ‘The absurdity of the of such @ blockade, io the face of the autboritative declaration of tho maritime rights of ooutrala made at Paris, 10 1856, was so glaring that the attempt waa rogarded aa an experimont on the forbearance of neutral Powors, which they would prompt. ly resist. ‘This conclusion was justified by the fact that the governments of France and Great Britain determined that it was -y for their interests to obtain from necessar; both bell ite “wecurities the ir treat. po ge gp ne had no expecta- which “confided tho aogotiatioa dn thia matter’ to tho British Conéul at Charleston, be was informed that ‘the most perfect ac- cord on this question exista betwoon her Majcaty’s gov- ernment aad the goverimoat of the Fumperor of the Frenob,” and these instruct! wero Atcompauicd by a copy of tho deapatch of the British Foreiga oifice of the 18th May, 1961, stating that there was no difference of opinion between Groat Britain and the United Statos as to the validity of the prin- ciples enunciated in the fourth article of the doeciara- tion of Paris in refereace to blockades. Your pre- docessors of (he Proyistopal Congress had therefore, no diffcully in proclaiming, oor! in approving, the resolu- tions which abandoned ia favor of Groat ‘britain and France our right to capture enemy's property ‘whoo covered by the flags of those Powers. 10 “nocurities’* dosirod by thoge goveraments were understood by us to be required from both boiltgerents. Neutrals were ex- posed on our pirt to the exerowe of tho bolligerent right of capturing their vessels whan conveying the property of our enemies. They were oxposed, On the part of the United States, to interruption im thei unquestioned right of trading with ua by the declaration of the paper block ade abave See We ooh becca rit gvod fait Proposal made to tis, nor to suspect that we wore to be the only parties bound by its fg see It is-true that the instructions of the neutral Powers informed-their agoots that it was ‘essential under pre- sent circumstances that they should act with great cau- tion in order to avoid raising Lhe quesiivn of the recogul- tion of the new copfederativa,’’ and that the understand. ing on tho Subject did uot assume, for that roa- son, tho shape of «a forma! convention, But it was not deemed just by us to decline tho ar rangemeut ou tbls ground, #4 little more than pinety days bad thon elapsed since the arrival of our commissioners in Kurope, aud peutral nations wero fairly entitled toa reasonable delay in actiug on a subject of 80 much importance, aad which, from their poiat of view, Jed difficulties that wo, pertaps, did not fully ap prectate. Cortaia it is that the action of this govorninent ‘on the occasion, and iis faithful performance of its own engagements, have been auch as to oatitle it to expect oa the part of thosy who sought in thelr own interests @ mu- tual un the most gorupulous adberenco to their OwD promises. | foo! constraiued to tnform you (hat in this expectation we lave heen di ted , and arc y commerce with us, Which bap bos alotatod oe the United States, ia deliaave of the tew of nations, but that this coacension of Mbele ueatral cigtita to our detriment has on moro than one Occasion besa Olaimod in tMtercourse with ove euomies, as au evidence of friendly feeling to. wards them. A few extrscts (rom tha corres; of her Chiet Secretary of Scave for F wilt guifice to show marked envot t to the United Btates (o perseorre mm wis paper blockade, and wnmisvakable iatimations (hat her Majesty's gourramen! would nol contest us ng udtty. On Une 21st of May, 1361, Kart Russell pointed out to the United States Minister ia Loudon “the blookado Tight no doubt be made effective, cousidoring the small number of harbors on tbo Kouthern coant, even though the exteat of iheee thousand miles were com ohegded ta torms of that blockade. * Ou the Lith of Jouvary, 1882, hor Ma‘eaty’a Miniater in Washington commoticated W his goveroment that io extontation of the barbarous attompt to destroy the port of Charteaton by sinking a stoos feet in the harbor, Mr. Seward bad oxplained ‘that the government of the United States bad, last spring, with a uavy vory little proparet for 89 extensive an operation, undertaken to blockade upwarda of three thousand mites of coast. ‘The Secretary of the Navy bad reported (hat he could atop up the “large holes’ by meaos ot iia abips. bat that be could vot stop up the ‘aumail ones.’ it bas beea found necoasary, therefore, to close sume of the aumerons sunatt iatets by suuk (ng vessels it the channes far from e! aiming (he right of Is to trade with us a belt nd to-diaregard the blockade on the ground of it coafession by ovr enemy of bis inability to ollectiv of Blate for States for # (0 Cloveu States Of the Union, ve moult, endeavored to ee (uousand miles of coast blockade, kept up irregularly, but when enforced, eaioreod severely, bax aerionaly tajured the trade and manufactures of the United Kiagdou, ‘Thousands are auw obliged to resort ty tae poor rates for subsisteace owing (9 this blockade. Yet lee Majesty's government Lave over aouglit Lo Lake advantage of the cbvious im fectiong of this blockade ia order to declare it ine’. Rective. “they bave, to the ios and detriment. of tho Br beer ved the duties of Gro t Britato towards a (rtendly =! Again, on the 22d Sentomber, 1362, tho same nobie car! eswoclod that the United Sta P from beiog in ‘ta condition to ask that every port of the coasts of 1 States 1s eflvctivety blockaded” Whoa, in view of thezo facta, of tuo obligations of the British nation to adbore to thy pledge made by thoir gov orameat at Paris io 1356, aod ranewod to this confederacy in 1961, and of these ted aud explicit avowals of the imperfection, irregutartty and iveflicieacy of the pro tonded blockade of our coast, | directed our Commissioner at Loadon to call upon the British goveromeat (o redeem its promwme and to witbholt tis moral ait aud sanction frum the flagradt violation of public committed by Our enemies, we werd informed that ber S| 7 atyled Confederate erument could not regard the blockade of the Sout ports as baving been otherwise than ‘practically effect ," ia February, 1962, and tuat “the maouer web it bas since been enforced gives to aeutral coments 00 excuse for a that the lockade has not beon effectually, * We were fertuer informet, when we iosisted that by the terms of agreeweat no blockade was to be considered effective unless ‘‘nuitiowat really to ‘access to our q@oast "’ that the deciaration of was, ip trath, directed agaraat not sustained by aay actua! (ores, or sustained by a aotoriously nedoqunte force, such a8 the occasional appearadce of a mau of war tu the offing. Or the like.” It was unpoasible that this moto of courtruing an agreement, 90 a8 to chako ita terms mean almost the re verse of what they pisialy conveyed, could be cousidered Otherwise than as a potidcation of the refusal of the Brit- jah goveroment to remain bound by its agreement, or longer to respect (hove articles of the declaration of Paris, whiot bad been repeatedly denounced by British statos. meo, and tad been characterized by Kari Russell ‘every impradent”’ and “most unsatisfactory.’ i any bt remained of the motives by which the Brith Ministry bave beeo actuated in their conduct it given toan ina‘tective blockade, the following language is used —‘l¢ ts anid wo have, contrary to the deciarations of Paris, Contrary to internatioual law, permitted the blockade of three thousand mites of American coast. It i quite true we did ao, aud the presumabie cause of com. plaint is quite true, that although the bieckade ts kept up by a sufcteut number of ships, yot (hese abips were seat into the Uvited States navy in a burry, and aro ill Atted tar tho aod did not & ups aod ofterts ae was roquired ao tive Mi Ths cmfesion of rolation, both of agret raent with ws and of inernational law, 1 defended on grownds the valedity of which we submit with confidence to the camaid gudgment of maniind These are thus stated — ‘Still looking at the , waa & blockade we, aa a great boiligerout former times, should have acknowledged. bad a blockade of thousand =miles, and tt did we wore bond in juatice upwards of som | me to the foderat that blockade. with their roduatey, fr wduatry soit vaterent whether wo should But to my two that States of Amorica to acknowl Tet there wae another reason whieh wel uve. Our people wore sulforing soy that material which was tho maio stat i ween hen sup posed to roquire that her colouias ehould bo made slave walt the other ground stated is of a vi vor 12 - Ibasserts that ot the law of uations by Great Britain in 1807, when that t declared a paper bi of Of coast (a violde oe Shee detente FRY Jourta and jurists an the solo her Wri retaliatory), affords a justif- cation for Cecrage on neutral rights by tho United States in 18vi,for which no palliation can be ; apd that Great Britain ‘is bound, in justico States," to make return for the war w: oot fog ‘States in resistance of '» by am acquiescence in the federal legal blockade of 1361. cy moat ‘alarming’ foatare io this statoment is ita admission of a just claim on the part of the United States to require of Great Britain, during this war, a disregard of the recoguized principles of mod- era public law aud of her own compacts, whenever any questional conduct of Great Britaia ‘in former times’? can be cited ag a precedent. It is not inconsistent with respect and admiration for the great poople whose government have given us this warning, to 4 that: their history, like that of mankind in general, ox. Osptional instances of indefensible couduct ‘in former times,” and we tony Ait deny the morality of violating ita through deference to tho evil prece- dents of the past. After defending, ia the manner just stated, the course wo hor Majesty's Foreign doubt of the fuetber purpose of the British govornment to prevent our Of vessels iu Great Britain, whilo supplying our enemies with rifles and other munitions of war, ‘Btates the iateotion to ppoly to Parliament for the futherance of thie design. He givas to the United States the assurance that he wil! do in their favor not only “everything that the law of natious roquires, everything ‘that the present Foreign Enlistment act requires,’’ but that be will ask the sanction of Paritament ‘to further meastires that her Majesty’s miotstors may still add.’’ Tova language fs 60 uomistakably an official exposition of the policy adopted by the British goverameat in relation to our affairs, ¢uat the duty imposed ov me by the cousti- tutwon, of giving you, from time time, * mation of tho state of confederacy," would not have been per- furmed If | bad failed to pince it distinctly before you. { refer you for Leyargooge oa this whole subject to paper blockade of the Un: bon Lo betieve thal an justice Tho partiality of ber favor of our fpomice » thé marked differance ils conduct on tho subject of the purchase of supplies by the two belligerents. This diflerence bas been conspicuous since the very commencement of the war. As carly as the Ist May, 1861, tho British Midister ia Waabl was in- formed by the Secretary of Stato of the United Stares that be had gent agents to Kngtand, and that others would go to France, to purchase arme, and this fact was com municated to the British Foreign Uflloe, interposed ne objedtion. Yet ia October of the same year Ear! Rus- sel! entertained the cogaplaint of the United States Minis ter in London, that the Coutedorate States were importi contraband of war (rom the isiaod of Nassau, direoved inquiry into the matter, and obtained a report from tho authorities Of the jsiand deaying tho atiegations, which report was enclosed to Mr. Adama, and rocoived by him ‘as satisfactory evideoce to diasipate “the suspicion na. turalty chrown upon the authorities of Nassau by chat unwarraatabie act." So, loo, when the Confed gov- ernment purchased io Great Hrilata, as a neutral country (aod with atrict observatce bot! the jaw of nations vad the municipal {aw of Geeat Britain), vessels which were subsequently armed and commusioned as vos: sols-of war. after they bad been far comoved -from Kngtiafi wators, the British govoramont, in viola tion of its owa laws and ia deference to tho im portunate demands of the United States, made an ineilectaat attempt to 8970 One vessel, aod did actually solve aud-detain another which teuctod at tho island of Nassau, oa ber way to aConfedorate port, and subjected ber to an_ unfounded prosecution as the very time whoo cargoes of munitions of war were being openly frou: British ports to New York, to be used io fare against us. Kvon oow the publio journals bring fatolli gouce that the British goverument bas ordered the selz. tire, (2 a British port, of two vessols,on tbo bave Leen gold to this government, be hereafter armed and oquippod 3 may fo our service, while Hritish gabjeots are to ireland by tous of \thousands to proceed tv the United Blates tor warfare against the confederacy, iv defiance both of the taw of nations and of the express torms of tho British statutes, and are transporied io British sbips, without ap effort at concealment, (9 the ports of the United States, there to be armed with rifles imported from Groat Britain and to be employed againnt our people in a war foc conquost. No royal prerogative is invoked, O90 execitive iaterforeuce ts interposed this flagrant broach of municipal and ia tow, on the part of our enemies, while sfraioed constructions are pieced on existing statutes, new ooactments pro- posed and questionable expedients devised , (or preciuding the possibitity of purchase by this govornmeut of von- wots that are useless for belligerent purposes qunlons herevfier armed aud equipped outlay the noutral jucisAiction of Great Britain. For aearty (hroo yoars (bia government bas exercised unquestioned jurisdietion over many miilions of willing and united people. ft has met and defeated vast armies of tem whe have mm vain sough! us subversion. Support od by the confidence and affection of its citizens, the con- federacy has lacked %o element which dislinguishes an in- deyendent mation, ciples of public tar Its lowiatative, ox ia its sphere, bave per with a regularity as uediatirbed as ine time of pro- found pesce, and tho whole carrgies of tue people have boon developed in the organization of vast. armies, while their rights and Uberties have rested secure under the protection of the courts of justice. ‘This con- federscy % either indepadent or it vs a dependency of the United Stas, for a0 other earthly power ciaims the cight (9 gover it Without ong bistoric fact, @0 which tho pretension crn rest, wilhoul one lino oF word of treaty or covenant, which can give color to title, the United States having asserted, and the Brith govern: ment has chosen to concede, that these smeragn States are deperdencres of the government which nslered at Washington Great Britain bas accordingly entertained with that government the closest and moss intimate ro- lations, while refuaiug oo tts demaod ordivary amicable intercourse with 8, aad bas, under arrangeaionts mado of iucope, oot only denied our lato the family of nations, bat ive though effectual bar to the ec fodgment of our rights by ober Powers. 80 800n as it tind become appareat, by the deciarations of the British 3, in the debates of the Heitish Tarliament im 'y last, Laat ber Majesty's government was determined to persist indediniteiy ia a course of policy which, under professions of neutrality, had become aiilserviont to the designs of our eavary, | fell missiwors formerly accrediter court, und the correspoadeace on tha subject os autimitted vo you. It due Lo you aad to our oo ratsy that tow Cult slate meat should be made of the just grounds which exist for disgatiataction with thé coaduet of the British goveroment. Lam welt aoare that we are unfortunately without a remedy for the injustice under which we have suffered at the hands of a powerful nation, at @ junciure when our entire reso ave absoried im the defence of nav lives, liberties and invlepndence an enemy posted of greathy superior numbers mat rial resources. Claiming no favor, desiring no aid, Couseiaas of our own ability to do- fend our owo rights, againat the utmost efforts of an in. furiata foe, we bad thought It not extravagant to expect Uuit aatiatance would be withheld from oir enemies, and that (lo conduct of foreign nations would be imaricod by it was a explaining, 19 Correspomteace with our ene mies, bow ~ the impartial observaace of aoutral obhga- tions by her Majesty's goveramout bas thus been exceed- Se Stared ee” Sieam eee ut OF the two onnt tien.” . a 4 TTavorable oooaston for estab lishing, by the amporary #acritlos of thetr ventral rights, 4 prec atont which shall 7 the frtura caerie of those extreme belligerent pretensions (hat thaw naval power ren- ders so formidable. The opportupity fr obtaining the tactt assent of European goverumeuts (0 4 |\ue of conduct wel ignores the obligations of the dectarations of Pacis, aad Create that instrument rather as & theorstical expo- sition privciples than a binding agresment, may be considered by the Aritish ministry as justifying them in seeking a growt wi vantage (or their owa countey at the expense of cura Rut we cannot parmit, without protest, ‘ho assertion that imeernationa! law or morais rogard aa “tinpartial neutrality’ conduct avowed to be exeseding ly advantageous" to one of the bolligerenta. 1 have stated that we are without adequate remedy Against the iajuatios under which we suller Thore are but txo meagures that scem appticabie to (be present condition of our :@ations with neutral Powers. One ts, to tutte the wromy of whieh we complain, to retaliate by the delaraivn of a paper tlockade of the coast of the United States, amd tocaptere all neutral vessels trading with ther ports (hat our cruisers can wniercept on the hugh was. This measure T canuot recommend {ft i true that, in so doing, we should but follow the precedents set by Groat Britain and France io the Borlia aod Milan decrees, and the Heitish orders tn cowndl| at tho baginning of the preseot coutury. Hat it must be remembered that wo, ournetven, protested those very messnres as signal violations of the law Of nations and daciared the attempts to excuse thom, oo the grovnd of their boing retaliatory, utterty iasigaiticant Those blockades are Dy writers 08 puvitc law an & standing 16 game Of the nations who were be- ‘ve to be followed The measure is vot opea to this objection. The Reoond article of the dectaration of Parts, which provides “that the neutral flag covers enemy's goods, with (be ea. Of contraband of war,’ was a new concession and oot aimply the enunciation of a0 acknow' A preexisting rule, like the fourth article, reterced = to ation wt rivarn ‘nod France, ome convention with Great Bet 5 adopted by yout prodoces igerents tn favor of neviteals, i nation, and omineat ‘throne has boen tendered de offer be sanctioned by | make aoy necessary within our reach if we have the Guch idtner as to “Fénder Avaliable while the ae Sona ae 4 , i most exclusively use public crodi s\ttne are alton ofthe Provisional was there-- (ore confined to passing a tariff law and lor ry of fifteen. millions of dollars by loaa, with a rz uma export duty ov eotton to provide for the of the debs. 4 At ita gecoud goasion war was declared to exist between the confedorecy and the United States, wee maderfor the igaue of twonty, to Trea- saucy notes, and.tor borrowing miltions of dottars om bonds. Tho tarlif was revised, aad ‘ moasures: taken to eaable tbe Congress (o levy intornal taxation ot iia succeeding wession. ‘These lawa wore passed tn aod thn susten of Vliginia, Bort irnoy, tn, Arkansas bay! confederaoy ijouraed vo most in tbe oity of Kicbmonal ta Ue - tug moath of Juiy. Prior to the assembling of your predecessors in Rice moni at thelr third session, near tho end Of Juiz, the President of the United States had developed in mossage the purpose “‘to make the contest a ghort decisive one,” aud had called oa Rr Fy for be hundred thousand mon aad four bi millions bed exceeded the ro dollars, Tire Von; Grumondation, aod bad authortacd tne tov mh a {toa of voluateere, besides tand and aaval forces of the me Ler pepe de phat a bo ced _ bo dev on ake eee, 6 vet -pro- ‘tions of Lhe contest a Koowing that the imatoad ‘ and Gocisive,” would be inde) arene suiticiene reatly to prevent access’’ to our const could Le maintained, Wo bad the means, Bot combined Lo aid our enomt by \ilega’ profibition on their commerce), ceipt tuto Une Lreasury of coin aufic: est oa the bonds. and matotaio ab races nearly equal to par in Bpecte, terest continued to be thas paid with the pre-existing (a Our country, experience tas expectations of those who devised Thos on the Ist of the following bart ouly reached a premium of about although tt bad aiready become appareot merce of the country was threateued suspension by reason of the conduct of aud that the Deossenry reantt musi be Our BpeCie reserve, , in the beginuing of 196%, A selling as one faa Mayas thirty bosbet, not excooding, therefore, worage price of peacs. The other agricultural produgts of ube: werg «| simitar moderate rated, thus indicating that was 00 6xcess Of Cerca: that tho rate of promium 0a spec. 9 was heightened exceptional causospwhieh tended to its exhaustion without (ha possibility Of comew- tag the aupply. ‘Tits review of the policy of your pri iny to them, and it exhibits tho Goaaces at the date whea they organized. ja tue meantis tbe popular a’ (0 teteraal tion by the geueral bad lation of the severat States, aad ia: 5 ifs iillif i i z i ili condition the ads wes, ait Caroliaa, Misaiasipe: aad es actaty coltocted juvias dovolvi: remvioing bed-beem Tale! by Toa Wee, ot Plodean moore Notes, ond the public dete of the increases country was thus Avs ead of being diminrshad by the taxation tmposed by Com geese Neither at the frst vor second session of Congress were moaug provided by taxation for qos eee eee thoriving further alos Alth: ropeated edorts wose menose Qa, LJ ‘ere ot weap Fp wore euafronted = obatacte whteb did not tor . ona some taxation. “About of the tame tok ty of the Confederate sinves. The goncral power of taxation vested in Com- grows by the Or ee comnts (ee a4 rary 18 its operati reateietoa say ober condition than that. “all excises should be utiform biouguout the beatae at the confederacy.’ But the permanent conetintion: snctluulag tue prigeipla that Lagation alsd repressseasion, ought (0 rest om the same basis, ‘apecialty: ‘opresentatives and. dil eatauee shall’ be sug the saveeel Staten Booed’ = ee ‘ aumbeca, whicl shall de determined by whole aumber of (ree persvos—inciuding service for a term Of years, and taxed —theoe Afths of all slaves. it waa further ordered that a ceasus should be made within theres years after the first moeting of the Congres, aad that “no capitation or other direct tax shall be iad, ales in proportion to the ceasus or enumeration bereia- before directed to be tatten.” Its plaw that, vader direct taxes must be levied i when made. Congress t provide Hits ite 2