The New York Herald Newspaper, September 25, 1869, Page 4

a TAN ag Ce ON ERC. LTO OR OER fp 4 NEW YORK HERALD, SATURDAY, SEPTEMBER 25, 1869.-TRIPLE SHEET. “WESTERN CHINA. Tho Indo-Burmose Route to the Territory. Adventures and Discoveries of the Sladen Expedition. The Mohammedan Empire ia West China. RANGooy, August 1, 1369, Travelling in the East, a8 a correspondent of the HERALD, the writer is met at every turn with eager questienings concerning the Pacific Ratiroad and what Americans expect to accomplisk. The Anglo- Indians, or Anglo-Chinese, who question him, rarely seem, however, to be much in need of informauion on the subject. They know exactly how many miles the road is in length and what the fares and ser- vices are; and they can quote some of the HsRaLp's editorials on its prospects and the national future that is bound up in it almost by heart. And, what 1s more, they have atiained, as they will fear- lessly avow, @ sure and settled conviction shat the said railroad, if it {is to pay any dividends whatever, must pay them outof its receipts for local trafic, and that {ts shareholders had better at once disimiss from thety minds all hopo of making any dollars out of tue Eastern trade, either in freight or passengers. Yet, tn eptte of all this, it is easy to see that the mind of the Anglo- Indian 1s sorely troubled, and that the Pacific Rall- Toad has taken its place bestde che bugbears that have for years haunted his waking dreams—the slow but resistiess approach of the Rugsians through Central Asia to Northern India, the constant acquisi- tions of the French tn Cochin China, and their intrigues against Siam, and lastly, the steady growth of American influence in China. It has probably been from some vague feeling that {ts commercial omnipotence in the East is silently passing away taat the English government has frected {ts attention to the possibiltiy of opening out a new route to Western China, through Burmab, ‘The advautages of this route are so obvious thas it is surprising any Power in possession of a large part of Burmal!, and with control over the rest, should have 80 long overlookea them. A large river, navi- @able at all seasons of the year for steamtugs of light dreuzht towing flatboats, runs up the country to within 430 miles of the Yantse-Kiang and to within 230 miles of the provincial capital of Yunnan. A short railroad, which might be easily constructed, or a safe caravan road would fii up these gaps, and enable the Merchants of Rangoon to tap the most fertile provinces of Western China, Yuunan and Szechuen, Peopled by 3u,000,000 of people, whose produce has &t the present time to be transported 1,200 or 1,500 miles before tt reaches Shanghae or any of the ports on the eastern coast of China. Ana, as will be shown below, in establishing thia route there are no difficulties to be encountered in the shape of hos- tility from the peoples througa which it passes. Half of Burmal already belongs to the British; Upper Burman is pracitcally tributary to them, snd the Pauthays, who have obtained control in Southwestern China, aud are independent of the Cuinese imperial government, are eager to open out a western chan- nel for their commerce. Rangoon, the chief port of Burmah, is a ‘mrd of the voyage nearer Europe than any of the Chinese ports, and the ruinous rates of insurance in the China seas would be saved. Both in distance to the coast and in distance from the coast to Kurope, therefore, this route has a great superiority over the route via the Yantse to Shanghee. It has, in fact, only been kept ous of sight by the non-progressive character of the aris tocratic blockheads who have, as a rule of late years, had the main control of the British Indian government. And even now, when its importance ts plainly seen by every white resident In Burmah, and after the practicability of opening it and the commercia! benefits that would accrue from doing £0 have been demonstrated by the Sladen expedt- tion, the authorities seem unwilling to tage active steps to place this channel of trade in safe working order. < For many years it has ‘Khown that Engtsh and European goods-haye made thelr way to China through UpperPurmai by this rou'e, though ina Very ‘uyHiod degree, and entirely by native agencies. Thetherchants of Rangoon, fully cousctous of the fact, have repeatedly pressed upon the government the duty of throwing it open tn some way to Euro- peans, and Inthe spring of last year they succeeded 80 far as Lo persuade the authorities to send out an exploring expedition to spy o' sound the peopies through which Toad must pass. siarted from Bhamo, a town further frontier of the au’s territo- ries, in the latter part of Fevruary, and ing as far as Momicn, one of me prin- esof the Panthays, rott to Rangoon he end of 1863 For a long tme, bowever, the facts of the expedition were kepe comparatively secret, and it has only been cently that Captain Bowers, one of the representa merce, jr particul: Ties of the exploration part the Journey oilicial report of erged irom the han.!s of ished in Ume. probs ag not yet e' but will be jon party was organ , and was place st on a very ‘apla the task, and Who is nov of the British India & capital of Upper bur were Uaplat the Caicutta cowart and Cap tain Bow ytatives; FN, Burn, inte Mohammed Ali Khan and fity rank and file of the Rangoon and Prome police force, In addition to here was a sur- veying stad’ nub lozeu, and or seven men under t . Andersoy, a3 collecting par: fisted of betw: expedition con- qtipped and with a well: Uwere taken irrawaddl te il boat. ‘The King of Burmah, who 1 regard to te expedition, had promised to transport them from thenve to Bhamoin his own steamer, and to give (hem every facility for passing through bis dominions, He did not, bowever, give t a very cordial welcome, and although, after some delay, he sent them up to Khamo, Captain Siaden soon dis- covered, on atriving at that place, that the King in- tended io adopt every masaus in his power to defeat the purposes of the expedition. On various pre- Uexts tho pariy were detained at this point for a month, The governor of tue place had a few days before ther arriv: been killed, and the Teeckay or local cliefs, recelvea them in the coldest possible manner, and told Chem Uhat the mules, which the King bad promised them should be Ia readiness, bad not been collected, and that it was impossible to say When they could have them. It was only with the greatest diticulty that they ob- tained @ house to jive in, aud the provisions they needed were charged at ridiculously extortionate rates, Alter a few Gays a new governor arrived, but this magnate would not land for three days, be- cause be Caucied they were unlucky, aud after he did land he would not see anybody’ for two more Gays, for the same reason. From ins man the patty got no better treatment than from hig deputies, aud gradually Capiain Sladen, from one source and another, obtained proofs of the doable dealing of tue King. ‘Yne full particulars of his berfldy ave, however, outy been Known since tho revurn of the party. Iteeems the King issued orders to the authorities at Bia:no that bie Exped ton was On No account to be Allowed to return to’ Mandalay; that 1 “was to be lost, or disposed of,” at some con: Yenient point of the journey. Acting on these Anstructions the Tseekays and Goveraor of Bhamo sent emissaries among the Rakhens, who are a fierce and warlike people, to sir the up to destroy the Party among the hills, The Shans, who occupy the country beyoud the Kakiens, were warned that me English were going to aunex tuetr lauds, and mes. sengers were sent to Taifoo to poixon the mind of the King of the Vanthays, Suliman 1, against the expedition. A caravan, wito presents, was aiso secretly despatched to the Goveraor of Motien Sa Kone, on 0 similar errand, but luekily Was una bie to proceed beyond sheegyeen. ‘Tie motives that actuated theKing of Burmat to instigate tiiose weach- erous measures it is Komewhat hard to discover, Probably influenced to # great extent by unmixed Malice, perhaps aiso he may have thought that bi) dominions would be annexed to Uritisn burials if they should be shown to have any groat value. Ag the event has turned out, however, his treacherouy icy has proved to be agreat mistake. Capiain and his Companions havo escaped the dau. gers with which he enlivened their journey; and sithough the Britisn guvel it have never made formal complaint on tt iy and eve: to Kuow noting at all of uw pecddy. yet etill It Is treasured up against him, to bo produced at a couvenient opportunity, BHAMO. Bhamo, which ig of some importance, a3 being the largest place near the frontier of upper Barmah, and aiso aa bem necessarily one of the reading places on the proposed new route since the irrawaday 13 only NaVigablo to that point, is about 200 mies be- youd Maudaiay, and ts a town of some 3,000 or 4,000 inhabitants, swaggliug along for about a mile on the left bauk of the river, It 13 surrounded with a dilapidated teak stockade, with gates at the princi- pal entrances; and outside the stockade a ditch, whitch, during the rainy season, 1s filled with water, runs round the town and serves as an ad- ditional protection against tigers and da. colts (or robbers). The Dopala ton gauss of Burmese, Shaus and Chinese, the Burmese belug far the most numerous, ‘The Chinese, whoare the prin- pal traders live in brick houses in the centre of the 1, and have their joss-house in their midst. The Stans and Burmese live in bamboo huts, butlt, after the native fashion, on plies some few feet above the ground, The town boasts of several pagodas tn Various stages Of decay, some of them b-ing very ancient, and there are aisoa “gubernatorial man- sion’ and a court house, but these are sad!y out of repair, ‘{ho trade of Bhamo is capable of great developement. At present the Burmen trafic all along the river for fifty or sixty miles, but are afraid to go into the back country on account of the Kak- hens. The river at Bhamo rises about forty fect during the raing, and for several mouths, therefore, is navigable for ships of any draught. But in the ary season there are sometimes only two or three fathoms of water, and (hen, of course, the river is only practicable for tugs and flatboats. To enable the people to get down to the river when the water 18 low about a dozen wooden ladders have teen hung over the clims of dry mud, which rise up on h side of the stream curing the dry season. Bhamo and the district about It are governed by & Woon or chief, who is appointed by tie King of Barmah, Tue Woon pass the King a fixed annual subsidy and acknowledges his authority, bat in all othor respects is au inde- pendent despot. He levies from hts subjects exactly What taxes he pleases, and ts the judge, governor aud sherty, all in one, of the district. He 18 assisted by & few subordinate chiefs, who are cailed vseekaya, To uphoid his authority there 18 a sirong guard of Burmese soldiers, who go about almost naked, have scarcely any arms and are destitute of the faintest vesige of discipline. Such are the mata features of Bhamo, as descrived by Captain Bowers. FROM BUAMO 10 PONSER. Captain Sladen having discovered to some extent the maciloations that were gomg on agalust Lim, and being especially incensed at inding out that the Chinese traders nad been instigated to send a letter to a notorious Cainese dacoit named Lee Sit Kye, asking him to tutercept the party, expostu- lated with the Bhamo Governor, and threatened that if means of transportation were noi at once pro- vided for the expedition the British govern- ment would hold the King of Burman respon- sible. This produced @ very salutary eifect, and Captain Sladen also contrived to send some letters to Ta La Kone, the Governor of Momien, through the agency of a petty Kakhen chieftain named Lawloo, which subsequently proved to have been of the greatest service and to have dis- abused the mind of the Panthay authorities of the lies whica the Burmese had told them about the objects of the journey. Leaving Biamo on foot, the party marched to a place cailed Tsiccan, about cighteen mes from Buamo, where mules had been collected, About 120 animals were hired, and as soon as they had been laden with the baggage the party began to ascend the hiils, and in a pingie day veacued Poonline @ little aiter dark, Having mus tered the party together a dreadful discovery was made—nothing Jess than that the cash chest, the whole of the ammunition and half the baggage had beea in some way stolen. That night, “witu no beds to lie On, and the prospect of the ex- pedition being ruined,” Captain Bowers says, was spenc “very miserably.’ The next day, however, Captain Siaden, by threats and persuasion, succeed- ed in inducing the locai Tsaubvwa, or Hakhen ciel, to recover the stolen properiy. The Tsaubwa made up & cock aud a bull story about the ‘loot’ having been taken by @ neighboring Tsaubwa, and sald that he had encountered great aim. culty in getting it back; but there is little doubt that his own people, robably at his own instigation, were the thieves, Having irightened the Tsaubwa nearly out of his wits by firing @ volley of musketry in his Qonor, the party marched for a couple of days farther tnto the moun- tains, until they reached the village of Ponsee. Here they wi brought to a dead stop by ageneral and preconcerted strike of the mule-drivers, who courpiained that on the previous day’s march a bative town bad been set on fire by the party, or some of its followers, and who threatened that unless the sat of €0) reals were paid as reparation for the damage inficted they should retuse to go to Manwine, a8 they had contracted, and would at once return to siccan, taking thelr mules along with them Their demand, which had purely an imaginary foundation, was, of course, refused, aad Captain Sladen very naturally and properiy dectined a'so to pay them for the distance they had already come, unless they fulfilled their agreement and carried the expedition on to Man- wine, Aftera great deal of controversy the mules and their owners went away, and the party were left at the mercy of Kakhens, in whose country they had now fairly emerged, without any means appa- renuy of either ‘retreating or going forward, At this place the expedition was detained two montis, and kept in a constant state of alarm by the menacing behavior ot the Kakhens, But for the fear — that Captain Siadeu's little party of eighty or-ninety men would seil their lives dearly,-tney would no doubt have been attacked and “murdered. Levers were, howevgr, secretiy forwarded to the Paniiags, apprising Wém of the condition of the expedition, Ad Girfuswer was patiently awalied, rrequent— almost daily—interviews with the local Kpaken ciueis Wok place during this time; but they led to no result, and were very uupleasant sensations while they lasted, The Tsaubwas, with a large bod: ol their ragged foliowers at their heels, would rush tuto Captam Sladen’s tent, sometimes with drawn dans (or swords) and endeavor by all man- ner of intimidating questons and noisy menaces to induce him to return to Bhamo, Thetr favorite pastime on these occasions seemed to be to go through a sort of a pantomime, in which they imitated the cutting of of @ man’s bead, sawing bls body asun- der or dasbing out his brains, taking care to My ars to Captain Sladen that such would be his fate if ne persisted in ois journeys. One cay two shots were fired from the MIM opposite the encampment, and passed close to Captain Siaden’s head. Everything needed for the party in the way of provisions were sold at very high rates, and some Shans, who hear- ing of their stay at Ponsee brought in some sup- ples, and sold them at reasonable prices, were threat- eued by the Khakens with death if they dared to come again. But this fairly exhausted Captain Sladen’s patience, and he assured the Tsaubwas that if he could get food in no other way he would make @ raid on the bazaar (or mar- ket), and alter that little dimicaity was found in procuring provisions, After a time areply was received from the Governor of Momien, urging Captain Sladen to lose no Une and come on as soon as possible, ‘Jiis was of course impossible without carriage, and in addition to this a strong force of Chinese dacoits, headed by Lee Sit Eye, had taken up a position directly in the proposed line of march, and with the express purpose of attacking the y. Lettera were, therefore, sent to la Sa Kone, ing for neip, Which Was at once granted in the most cheerful and efiicient manner. Ta Sa Kone raised a force of 6,000 men, him- took the field against Lee Sit Eye, and succeeded in routing him and clearing the road, though not without sustainin; heavy loss, He also summoned the Shan chiels, an warned them that uniess* the expedition were brought at once out of the hilia he would himself fetch them away. Upon this the Shans, who scarcely liked the prospect of their lands being overrun by a Pauthay army, sent deputies to Ponsee to make the necessary arrdngements, and at length the party were once more furnished with mules and set out agaia on their forward march, During the stay at Ponsee Captain Wilitams and Mr. Stewart retarned to Bhamo, hopeless of the success of tie expedi- tion. FROM PONSERTO MAN WINE, A day's journey brougut the expedition to Man- wine, the most linportant of the Shan towns, On their way there, through thriving little towns and villages, they were everywhere welcomed most cor- dialiy, the Women turning out with presents and flowers. and the principal men at tho head of depu- tations making them complimentary addresses, On their arrival at Manwine they were lodged at a kyonng or priest’s house, holding the same position towards the Burmese religion a3 4 monastery did in Kuvope during ithe middie ages, or in the Holy Land at the present day. The difficulties of the expedition ended here practically, though the con- duct of the Kahken muleteers and a few of tue Shans gavegreat uneasiness for the first two or turee days, Of course, in settling with the muileteers, they demanded more than was justly their duc, claiming for the services of 180 mules instead of the 120 which had really been employed; and it was only after several stormy interviews Viat they were Induced to accept the amount that was offered them, The distrust that still existed among the Shans was soon dispelled by Captain Sladen’s explanations, aided, no doubt, by some valuable presenta which he made to their chiefs. Manwine itself t8 a town of some three or four thousand inhabitants, who are mostly Shans, though there are also @ few Chimese. It is built of briex, and ia enclosed by ® wall in very good repair, ‘he streets are narrow, dirty and irregular, There 1s @ bazaar every fifth day, which is always well attended, Provisions are plentiful, good and cheap, and the peo seem extremely courteous and intelligent. The general appearance of Man- wine, and indeed of all the Shan country which was traversed, was very superior to that of cither Barmah or the Kahken country. The people are evidentiy industrious and well-to-do, and need only opportunities of commerce to be woaltiy. At present their dress is better and thelr standard of living nie than that of the peopie who surrounds them. While at Manwine Captain Siaden was honored with a visit from a commuaity of Buddhist nuns, headed by their supertoress, The latter lady had ence been to Rangoon to see General Phayre, and hearing that some Englishmen had arrived at Mau- wine she made haste to pay her respects to them. ‘Tbe position which these sisterhoods seem to pos- sess among the Buddhists of Upper Burmah and the aqjacent countries correspou very nearly to that which Christian organizauons of the same kind fill in Burope. They devote thomseivos to charity ana good works, and religious exercises; tney make # vow vt Jifelong chastity, and their numbers are recruited culefy from the ranks of the unfor- ‘unate and the criminal. The supertoress just mon- tioned seems, however, to have had @ sharp eye to business, for she complained loudly to Captain Sladen of the poverty of the country, and the conse- quent privations to which her community was fre- Queutly reduced, aud gald abe baer tte > { would sucvesd ta his plans for opantag up tie cow | try, as she thought the prone would s800n be more | prosperous H they could bave some outiet for thelr produce, FROM MANWINB TO SANDA, the next peegnee? haiting place, thero are two roads, and Captain Sladen, by deciaing in favor of ons, 80 displeased the people Who lived on the oLler tat they fired a shot or go at the party soon after it sel out, No damage, however, was done, and it was wisely deiermined to take no notice of suc a puertle demonstration, At Sanda, as at Manwine, the party was lodged in kyoung, and the day after their arrival they were vistied by the chief oiticials of the town, who brought with them very accepta ble presents of rice, meat, fowls and firewood. Witn the Tsanbwa of this district, who Is a very old man, Ga Lay mine bee a on yeh succeeded in inducing him to promisg doll his power fo further the Peres ot ‘a road from Barmah to China, In return for this Captal! Sladen assured him he would give a good report o! him to the Panthays, of whose power he seemed very apprehensive. On the morning of departure the old Tsaubwa came to see the peer on, bringing with bim bis little grandson, who only seven years old, and who igs heir apparent to the office of chief. After a little hesitation Captain Sladen was imformod that the night previous there had been a rand consuitation with the Nats (or spirits) about this oy, and the Nats had recommended that he should be “ailiiated” to the leador of the Englishmen—that is that the gallant captain should be persuaded to adopt him as a son. it appeared that tuts assump- tion of paternity did not invoive any actual respon- sibility, but was purely a matter of form, Captain Siaden cheerfully assented to the old man's wish, ‘The ceremony consisted simply in @ pledge being given to the friends of the boy thaé, for tue future, Captain Sladen regarded himself as his father, The best of the Joke Was that the boy hmself howled loudly when the captam tried to get him to sit on his knee, and ran away to the outside of the crowd. SANDA TO MAINGLA AND NANTIN. Leaving Sanda, amid a great demonstration in the shape of complimentary volleys, blowing of truinpets and fmmense crowds, the expedition, staying over a couple of days at Maingla, in due time reachea Nan- tin, At Maingla, which is a thriving little town of about 4,000 inhabitants, and which is only remark- abie as being tho frontier town ol the Shan States, Captain Sladen was received in much the same way that he was at Sanda, He paid a visit to tne Teaubwa, but that tmportant functiouary turned out to bea boy only twelve years old, whose capacity was of course limited to sweetmeats and Chinese firecrackers. ‘The power benind the throne ig his mother; but she ex- cused herself from admitting the explorers to her presence by a message, in which she said she was very old avd had lost her teeth, and go could not see them, The town at present is in a very unpleasant pecuniary fix, having to pay tribuce both to the Pan- thays and the leader of the Chinese dacoils, Lee Sit Eye. Within the past few years, however, it has beon frequently sacked by both parties, and has no desire to piovoke another raid by disputing the right of either party to levy tribute. On their way from Maingla to Nantin the party was joined by the Tsanbwa of the Hotha Valley, who seized the opportunity to obtain a convoy tor fifty mule loads of cotton, which he brought with iim. With the exception of picking up & poor wretch who had been robbed by dacoits and leit mortally wounded on the highway, tho journey to Nantin was accomplished without any further incl. dents, It must be mentioned, though, that the late ler part of the distance was protected by Panthay guards, which the thoughtiul care of the Governor of Momien had ordered to be posted there, At Nautin the party entered the Panthay country, and from that point to Momten they experienced the most flattering attention and courtesy. They were struck at once by the difference tn the demeanorand bearing of the people, Hitherto they had been salaamed and cocowed to in true Burmese fashion, and when they saw the King of Burmah they had been themselves compelled to kotow to? him. (A kotow is performed by falling down on one’s knees aud bowing the head until the forehead almost touches the earth, The British resident at Mandaday does this at every interview he has with the King.) But now they were only greeted by a manly salute, which was given with great dignity and an unem- barrassed air; they saw no salaaiming or taking off of shoes until they returned to the Shan and Burmese territory, ‘The Governor at Nantin, who came to visit them, attended by a strong guard and @ couple of haga Chinese lanterns, apologised for the discomfort of the Kyoung, where they had been lodged, on the ground that so much of his time was occupied in putting down the dacolts that be bad not had leis- ure to repair the pablic buildings, He volunteered the further information that he bad once been a dacoit himself, but had seen the error of his ways and intended to hang all his old acquain- tances who declined to follow his example, He was accompanied by the nephew of the Governor of Momien whom Captain Bowera describes as ‘a youth of very good address, but a little too fat.” Nantin 1s of course of great importance, as the boraer town of the Pan- thi It 18 garrisoned by a very strong force, ch is constantly appara against predatory roving bands of Tartar Chinese. Toe whole district ig In fact in a deplorable condition of disorder,-and although the Panthays use every effoft to restore quiet they will probably never be successful until the trade of the country is revived. It is the full Consciousness they have of this fact that has made ‘hem go eager to further the aims of the expediuon. NANTIN TO MOMIBN, On the 26th May the party leit Nantin with a strong escort of Panthay cavalry and infantry, who tooked extremely martial with long spears and huge banuers, while a band of noisy gongs added much to the general effect. Their way at frst jay through @ country that exbibited @ dreadful scene of desolation. For fifteen years it has been a battle ground, aud the number of ruined towns and vil- lages, Many of them now wioily deserted, attest the severity of the struggle, And while they wero still passing through this melancholy region the expedition pad ocular proof of the miserable siate of the country. About ning miles from Nantin shots were heard in front, and riding forward they found that the guard had been attacked by dacoits. ‘The robbers had waited in ambuscade just behind a sharp angie of the road, and had made adash at the bag . Which was being taken on in the front. They kui ‘0 of the Pantiay oilicers, and speared asick man who was on his way to Momien in a litter, and succeeded tu getting off with two boxes of government treasure, and in rifling the baggage belonging to the expedition. Dr, Ander- son lost all lis notes and several medical books in the foray. Tue dacoits at once decamped with their booty, and they were too numerous to be salely attacked in the wood where they took refuge. Towards Momien the aspect of the countiy visibly improved, and the valiey of Momlen itseil 13 de- acribed as being extremely beautiful, It is filled up with dozens of Jitte towns and hamlets, surrounded by rice fleids and protected from the ‘thieves who Bpoll the otuer sections of the country by the ancient city of Momien, Which stauds ip one corner of the valley, looking very aucient and venerabie, with ita blackened and time-worn walls of brown stone MOMIEN. The reception of the pariy at Momien was a per- fect ovation. ‘Ta Sa Kone, the Governor, dressed in gorgeous attire, together with all his principal ofiicers, about @ thousand soldiers and an immense crowd of civilians, came out to welcome them and escort them into the city. As fey descended from their ponies to shake hands with him salvos of guns were fired in thelr honor, and bands of gongs and tomtoms made a hideous noise that was supposed to express joy and gratulation. After the usual salutations the Governor led them into the city, and in @ sort of triumphal procession they were taken through the bazaar and most of the priucipal streets, and at last deposited in a Confuctan tewple wich lad been fitted up for their accommodation. The following day the party took the presents they had brought with them to we Goveruor’s palace. fie received them very graciously and put them corm- pletely at thoir ease, The gifts consisted of long, Turkey red, Poonghee (priests’) and Spanish cloths, Nannels, carpets, rugs, tabie covers, wusiins, four double-barreled guos, four revolvers, powder and shot, neodies and thread, two music boxes, two electro-magnetic machines, some looking glasses and halfa dozen muskets. All these Ta 5a Kone said he intended to send to the King, whose palace 13 at Taitfoo, The third day of thoir stay at Momien Ta Sa Kono aid them @ return vis! nd after that, at his own all ceremony was laid aside, Captain Sia- don and his companions went about the city or visited the Governor without the slightest restraint, and Ta Sa Kone reciprocated these imformal calls by making recurn visits at the most unexpected times, On these occasions he exhibited himself to reat advantage, a3 his natural disposition is to be rank and cordial; in fact, in common with ail the Panthays, his manners are more those of the camp than of the court. His personal appearance is very striking, He siands over x feet in height, and fis proportions correspond in bulk to huis inchi His face is in its general expression good humored, sincere and intellectual, put ap un- seemly scar on the forehead, just above tho nose, Which was caused by @ bullet wound, haa somewhat disfigured him. Jn one of their iaterviews he showed Captain Sladen tho scars of a number of other wounds, which were usually concealed by his dress, His courage ts Indeed aimost proverbial among the Panthays, and during the past dozen yeara Le has been constantly in the Held, The city of Moimien is abont one mile square in extent, and ia surrounded by a massive wall of hewn stone, which is surmounted with patttements, and 18 some twenty-five feet in height. Outside the Wall 18 adeep ditch, but between the wall and the ditch 14 @ road. ‘There are four gates to the city, one on each side, which are immensely strong, the arch- ways resembling those of an old European cathe- dral or castie, and the doors being covered with thick plates of iron. The gates are closed e night. Inside the wail an eartnwork about eighteen feet bigh and thirty leet thick runs round the city. Near the gates towers bave been buiic on this earthwork, which are used as guard rooms for the gariiwon. The streets of Momien are laid out at right apgies, and aro very broad for @ Chinese city. The houses aro all large and in good repair, and are generally surrounded by @ litte garden and @ wail. Tho Governor's mansion 13 ou the northwest sido of the city, aud 14 approached through three courts, the innermost being lis reception room 1 court of Justice, Lhe surniture is very simple, consisting only of @ few tables and chairs of the usual Chinese pattern. Curtains of bright-colored cloth are hang up over the Windows and doors, and the walla are ornamented with mottoes painted in Chinese and Arabic characters on red and green papers, Beyond thia audience chamber is the armory, filed wita helmets, breastplates and all sorts of weapons, This leads out ingo a miniature garden of fruit trees aad dwart shrabs, some of which are growing m wooden pots. Around this gardeu are the family apart- ments. Momien is purely a military city, and none but Panthays are allowed to live within the wails, All the trade of the pine ta carried the WEA suburon, There yuo fuses of, WP POvUINKOD. consisting chiedy of Tartar-Chinese and the less wealthy panthays, reside. In the bazaars, which are Very large, there 4 au immense amount of busi- ness transacted—quilo suaicient to convince Capiain Slagen of the truth of the statements made by the oider residents that, a generation ago, Momien was the chief emporium of Western China, The articles @xposed for sale were nearly all of native production, but there were aiso some English piece goods, flannel and need'cs and thread. The only currency seemed to be copper “cash,” and as it takes 1,200 of these to make up an American dollar it can easily be understood why many trans- actions aro carriod On by barter, The condition of the country since the rising of the Panthays haa been 89 uusettied that ali the sliver coin has been ayAined away, It ig eagerly sought after, however, gud ec taken at a high preimtum—about 1,500 cash to a dollar, ‘The trace’ Of the severity of tho struggle which has been wageu between the iaienal government and the Panthays are plainly vislole in every direc tion, Many of tha suburbs are only partially re- stored to their former dimensions, and inside the city all the josshouses and kyoungs have been destroyed by the new Mohammedan rulers. The gov- ernment, however, 13 now pretty weil settled, and @ menerat revival of commerce and industry is taking piace, TUB NEW MOHAMMEDAN EMPIRE CHINA, It Is only proper to give now some account of tne “Panthay Empire,” which has, atter a terrible con: Alct with the Pokin government, succeeded in estab- lishing itseif on @ prevty secure basis, It is true that every month we hear, by way of Eastern China, that the “Panthays have been suppressed;" but itis certain that at the close of last year they were stronger and more prosperous than ever betore, and 1¥1s hard to believe that the iinperial government, haraased tn every quarter by constant, though abortive, rebellion, could have mustered since thas time wn army of sufficient strength to re- store their authority in Western China. The Panthays are, as ts well known, Chinese of the original stock, who rebelled against the Tartar brett about fifteen years ago, partly on the ground of this difference of race, and partly also because, having been converted to Mohammedanism, their religion was opposed to their remaining longer than they could help under pagan rule. Their present leader, King Sullman the First, tg a hadjeo, or returned pilgrim, having visited the tomb of the Frophet at Mecca, via Calcutta, a number of years ag At first their success seemoa very doubtful, bat the high military qualites of their generals, the stubborn resolution of the rank aud file, and the generaily distracted condition of the empire in con- sequence of the Taeping insurrection, have enabled them to wring from his Celestial Majesty the two most fertile provinces over which ha has ever held sway—viz., Yunnan and Szechuen, Talifoo, {n the Provinco of Yunnan, 13 the capital of the new empire, where King Suliman holds kis court. Momten was captured about cight years ago, and while Captain Sladen was in that city the news came to Hand that the immense city of Yunnan, the only remaining important stronghold of the lmperiatisis in the west, had fallen into Panthay aands, The prociamation declaring the victory—an immense paper placard eight feet in leogth—was pet the walls of all the larger thoroughfares of aty. The present Panthay government is maintained, as it bas been established and consolidated, on a strictly military basis. Every Panthay who can bear arms 48 required to serve in the army for a certain term, and even after this period has expired he 1s again liable to conscription in any pressing emergency. At present the empire la mapped of into eight dis- tricts, containing altogetier about 30,000,000 of pecple. Each district is under the government of a military chier, who has an honorary ttle of ‘Ta Sa, or Governor. The revenues of the country are levied in @ uniform manner, and although they are heavy the fixed nature of the mpost 1s an infinite improvement upon the arbitrary aud yet heavier exactions of the mandarins in the interiur of China, or of the ‘tsaub- was in the Shan States. Justice 18 dispensed in a very pure maaner, though of course there is as yet no settled law code. The Governor of the district, or his Geputies, act as judges, and frame their dect- slona on the apparent equity of the cases, Criminal offences are punished with more lenity than in China, and most of the old barbarous penalties havo been abolished. The best evidence of the beneficent character of the government is the contented sub- mission to it of the Tartar Chinese, who, although 9 conquered people, are allowed to practice their old religion without any restraint, ‘The Islamism of the Pantuays 1s of a very tolerant and mild character wheu compared with the rabid fanaticism of the Mussulmans of India and Aravia. It {g not uncommon to come across a Panthay who eats pork and drinks samshoo (Chinese brandy), but they never use either tobacco or opium, having adopted the betel nut as their natural narcotic. In their re- gious observances they are by no means strict, and the mosque in Momien is in shape and form a Chinese temple, though of course it 1s destitute of idols, ‘The services are conducted in Arabic, which is re- garded as a sort of sacred language, ag Sanscrit is among the Braiming. They are very careful to marry only those who are of their own faith, but women are allowed to go about the streets with their faces uncovered, the same a8 men, contrary to the usual Moslem practice. Although the country under Panthay rule ia gradu- boy being restored to an orderly condition It a sitll sadly disorganized, and the great routes of trade are infested by lawless bands of Chinese dacoits, and frequently commercial communication between the principal cities 1g only possible when the mules are accompanied by a strong military escort. The prin- cipal leaders of these banditti are Les Quang Fung, formerly au oficer in the imperial service, and Lee Sit Eye, who beiongs to Bhamo, his mother belag a Burmese woman still residing there. The robber chieis were formerly much more numerous, but many of them, for instance the Governor of Nantin, have been brived by tne Panthay government with official positions to cast in their lot with the new empire. While Captain Siaden was at Momien an attempt was made by Les Quang Fung to join the Panthays in this manner, and the papers of agreo- ment were drawn out, but there was a hitch in the negotiations and they tuerefore fell through, THR PRESENT TRADE OF MOMIEN, Talifoo, Yunnan and Yunchan, with Mandalay inUpper Burmah, 4s mostly conducted by Chinese merchants, and must be a very lucrative trafitc, aa the Burmese duties, both import and export, are ten per cent ad talorem, and the goods are also subject to Panthay imposts. In addition to these charges transporta. tion by mules 1a very expensive, and the caravan Taust be guarded by a strong escort, which muat be aid for by the traders. In spite of all these draw- acks, however, caravans are constantly iraveiling between Mandalay and the Panthay cities, and a larger quantity of English and European commodt- ties 1s absorbed in this way than 13 generaliy be- lieved. Although unable to proceed farther than Monien the expedition gathered some valuable in- formation as to the other Panthay cities, The pria- cipal of these are Tatifoo and the recently captured Yunnan. Talifoo is twelve days march from Momien, and ts situated on the borders of @ vastlake. It has an immense population both in the city itself and on the shores of tie lake. There & very largo local trafic by boats and large craft on thia inland sea, The trading operations between alifoo and all parts or China are very ex- tensive. Yunnan, however, is yet larger and very much wealthier than Talifoo, and ts in future to be the seat of the Panthay empire, King Suliman has already moved his court there. Its length is 80 gent that from one end of the city to tho other is a air day’s march, Like ‘Talifoo, tt is on the shores of an immense lake. It is fourteen days’ march from Momlen, Yunchan, between Momien and Tal- foo, 18 much larger than Momien, and has a very im- portant commerce, It exports gold, sliver, lead, si'k and salt, and is inthe centre of an extremely rich mineral conntry. Kits, Meinseen and Tatong are also described as flourishing centres of trade. Mein- coon and Young Yeen are aiso important places, and are the seat of the manufacture of a species of felt carpets, very thick and impervious to rain, which find their way largely into Burmah., Although these details are necessarily very meagre, they are suin- cient to thow the extensive character of the trade that might be established between Hurope aad these Bearer if the proposed new route should ve es- ablished. CAPTAIN BLADEN’3 TREATY WITH THR PANTMAYS, After a seven weeks’ stay in Momien it became very evident that the expedition must abandon tue project of going further eastward. Their means were only sufficient to enable them to pay the ex- yan of their return journey, and, although Ta Sa Kone would cheerfully have advanced thom money orsent them on gratuitously, they did not feel it right to strain his hospitality to so great an extens as this would involve, And, although he was very anxtous that they should see the king, Ta Sa Kone frankly told them that it would be a journey of some danger, as the roads were just at that time infesied by dacoits, and he was unable to spare them an es- cort Of suficient strength to adequately protect them. Taking all theso things into consideration Captain Siaden determined to at once return, espe- cially as the king had empowered Ta Sa Kone to make the commercial treaty which it waa the malo Ms of the expedition to obtain. The negotiations in regard to this treaty wore of a very satisfactory nature. Both parties were ex- fremely anxious that tt should be concluded, and Ta Sa Kone consented to the most liberal arrange. ment possible, ag he said, “ne would be more willing to take haifarupee than @ whole one tn customs duty if the commerce, which he knew was the one thing needfal to quiet the country, could only be established.” ‘The final terms agreed upon Were that jor every 259 rupees ($125) of declared value tm- ported to Mometn from the west ten rupees of duty Should be paid, and that once admitted into Pan- thay territory no new imposts should be exacted Until the goods bad left the hands of the original tut. porters, in addition to this, ib was stipulated that the various Shan Tsaubwas, who are tributary to the Panthays, suould receive® present of four aunas (twelve cents) for every mule load that migit pass through their districts, This treaty was at once formally agreed to and signed, and the expedition @ few days alterwards commenced IN WESTERN THE RETURN MARCI. The parting froin Ta Sa Kone was Of a very cor- dial character, He had previously presented Cap- tatu Sladen with @ gold dagger, some Valuable rings, and his own robe and hat, and he hadgiven each niember of tho party a roll of silk, a jacket, hat and boow. He now promised that at no distant date an embassy from King Suliman should be sent to Ran- bse and Captain siaden pledged nimself to have an Pugileh sieamer at Bhamo to take them down the Irrawaddy. ‘fhe journey from Momten to Bhamo was accomplished without any very great diniculty, On the wayside they found at one point the warm body of a@dacolt who had been captured and sum marily executed by the Panthay giardd which had been posted by Ta Sa Kone to protect their passage out of his dominions, At Sanda, a silver spear be- lon, ing to Captain stolen during the 'y who was detected and ent route to that by whieh they came, passing through the Hotta valiey, bat (ue Shans an! Kakhens Whom they met were equally noisy, treacherous aad cowardly with those they had cucouutered a fow months before, THE TREATY WITH THE TSAUBWAS. Nothing now remained to bo done to complete the arrangements for the proposed new road but to get the assent of the various Tsaubwas, whose districts le between the Burmese and Panthay frontiers. ‘The Brelimtnarios of a gencral meeting of all these ‘Tsanbwas bad already been confided to the more friendly of the cutefs, and on the Lath of September thirty-one Tsaubwas had a sort of ‘convention,’ Captain Sladen presiding. A scaffolding haa been erected, with an aitar, on which tho usual offerings to the Nats could be made, ‘The ceremony of swear- ing friendship to Captain Sladen, as the representa- tive of the British governmént, was duly performed by cutting the throat of a buffalo, when each man DAVIE: dipped his dah (or sword) ito the blood of the victim, the blood was mixed with shamshoo (native brandy) and quaffed in a social bowl. ‘This Constitutes an oath of tho most binding character possible, and was (ollowed by offerings to the Nats of Nesh and rice, The Woon at Bhamo, the representative of the Kin; of Burmab, refused to take any part inthese proceed. ings, and when the Tsaubwas sent him @ piece of meat, dripping with blood, as an offer of reconcilla- tion he refused to accept it, thus prociatming that henceforward he was at deadly feud with thein. When Captain Sladea expostulated with the Woon about his conduct, he said tne Burmese would never con- sent to look upon the Kakhens, or bill people, as on ao equality with themselves, out would always ‘egard them as robbere, The Tsaubwas, oo thelr side, said they would never again come to Bhamo, unless tt were to see the representative of the Eug- lish government, THB RESULTS OF THE EXPEDITION may now be summed up. Owing to the efforts of Captain Sladen there is no obatacie of any importance remaining tn the way of the establishment of tie pro- posed route. The Panthays, (o supply whose markets 13 of course the grand object to be attained, are evi- dently anxious todo all in their power to make It n acconiplished fact, and there can be no douvt that their roduce, which now finds its way to Kurope by the Yantse-Kiang and the Eastern ports, could be largely diverted into. this channel. The Shaus are to a great extent under the control of the Panthays, and ho diMculty need therefore be Duper from them. The Kakhens have by their Tsaubwas also given in their assent, and should they at any time become fractious a very small force would be suf- ficient to give toem @ salutary lesson, which they ‘would never forget, The only marplotin the way ts the King of Bur- mah, and his opposition, from whatever motives it may spring, Will not be allowed to disturb the carrying out of the Jee As has been ex- | sagen in another letter his throne 13 very shaky, is subjects are anxious for bis overthrow and the substitution of British rule, and nothing but the deeply rooted determination of the English govern- ment not to extend further their dominions in the East preserves him in bis present station. No power that he couid command would withstand for three montis the attack of a couple of English regiments and half adozen gunboats. A litue bullying 13 all that is needed to make him acquiesce in any scheme that may be submitted to him, The one thing needful tsaguarantee from the Indian government that the road shall be kept open and cleared of dacoits, and thia might be readily given, since the duties that would be levied in Ran- goon on the vast additional exports and imports would far more than cover the cost of a few thou- sand native policemen and of the maintenance of & few stations at the principal points on the route. Residents to represent English Interests would have to be appointed to the ane the Kakhens, but this would entail only a sligi® expenditure. Nothing, therefore, interposes to stop tue immedi- ate opening of the caravan road, except the hesita- tion of the Indian government to incur further respon- sibility, It is true that the population of India—the Mussulmen at any rate—are still dangerously disaf- fected to their British rulers, and that @ second mutiny may at avy time break out. But even if it should, Burmah is one of the few poxses- sions they hola in the East that would give them no trouble, as the natives dread very arongiy failing again into the clutches of the Burmese King and hia nobles, So, at least, ali the American missionaries, who are perhaps the only whites in the country who have en intimate knowledge of the real sentiments of the natives, unt- versally affirm. Under theso circumstances, it is more than probable that the government will, at no very remote date, yield to the demands of the mer- chants of Rangoon, who are every month becoming more clamorous in favor of the new route. So far as a railroad is concerned, although it will have to be built by the government, owing to tho dearth of local capital, it is sure to follow speedily the Opening of the caravan road. The steamers that trade up to Mandalay are already paying Lapienalaly, and the firm that own them could be ily induced to send them as far as Bhamo. From Bhamo to Mo- mien ts a distance of only 130 milea, and to Tallfoo about 300 or 400, In constructing @ railroad to bridge over this distance the engineering dimiculties to be eucountered are not very formidable. ‘the mountains that would have to be crossed are less than 4,000 feet above the level of the sea, and there are a number of eligible passes. ‘The rest of the dia- tance ia ali plain salling. What would be the extent of the changes that this railroad, if constructed, about it 1s hard indeed to conjecture, China would be tapped from a new direction, and the favrics of Europe would be exchanged for the silks and teas of the East without any restraint from the rapacity of Celestial custom house oficers or the bigoted devotion of the Orthodox Chinese to the customs of their ancestors. Through the Panthays, who eager to be taught the arts of tho West, civilization would fliter without difficulty to the heart of the mightiest empire of the East. Ran- goon, which 13 now @ flourishing port, would rival aicutta or Hong Kong in weaith and importance. Aad, what is of far more importance to Americans, the new route would be a serious rival to the Pacific Rallroad for goods atany rate, if not alzo for pas- sengers. THE NEW DOMINION. The Grand Trunk Railway—The Montreal and Quebec Ship Channel—Export of Lum. ber from the Dominion to the United States, QUEBEC, Sept. 18, 1869, Richard Potter, M. P., President of the Grand Trunk Railway, has recently arrived here for the purpose of making @ thorough inspection of the road and reporting the coudition and prospects of the same to the English stockholders, There has been a great deal of complaint all around during the past 1ew months concerning the Grand Trunk, the patrons finding fault at its dangerous condition and inadeguate facilities for doing business, and the stockholders grambling because they had been unfortunate in thelr investments, Their demand, it {9 alleged, was so persistent for dividends that they had to be sgatisiied while the road and roiling stock went to decay for the want of funds to keep it up. The Chronicle, of this city, in some editorial comments on the general condition of this great international thoroughfare, remarks that “no man of any feeling can holp sympathizing with men who have lost their all by involving them- selves with the varying fortunes of this and other railways, Still, had this system continued of paying away mone; with which the road should have been renewed, the result would have been still more dis- astrous to all concerned. The decay and consequent insecurity of the road would speedily bring about such frequent accidents that the people of Canada Would insist upon the government, as first creditor, stepping im and seizing the line for the purpose of aclling it to @ company or companies who would find the necessary capital to put It in thorough working order. We tuink there wasa time that, wero it not for the confidence placed ia Mr, Brydges by the goverament that he could ultimately redeem the road, this policy came near being adopted. However that may be, certain itis ne has brought We company out of many diMlculties.’? ‘The expenditures for dredging the ship channel between this city and Montreal, {rom 1861 to 1866 in- clusive, have reached £280,033 138, 2d.; interest on dedentures and loans, £60,488 78. 10d. ‘Total outlay, $1,547,018 20; amount assumed and pala by govern- ment, $1,049,0u3 28; amount expended out of harbor revenue, $303,314 93, About two-thirds of the ex- gg A was connected with the deepening of Lake il. Peter. ‘The Secretary of the New Dominion has just pre- pared a stateinent of ail square pine timber, logs, Diank, soantiing und boards shipped to the United States from each of the Provinces of the Dominion in each year, from March 16, 1863, to 1366 Inclusive, and from March 16, 1866, to March 16, 1869, incin- sive, reducing the whole quantities to superfictal feet of inch thickness. Tho following are the re- sults:—Ontario and Quebec, 1863, 629,950; fiscal year ending June 30, 1865, (361,057,950; 1886, 485,362,840; 1867, 29,220; 1868, ' 662,533,530. Piank and boards constitute the great buik of the exports which, it may be observed, have largely increased since the termination of the Reciprocity treaty. In 1863 white pine reached (board measure) 24,268.040; In 1864, 11,604,480; planks amd boards, 1863, 206,342,000; 1868, 553,703,000; Nova Scotia, 1863, 7,081,680; 1368, 7,676,285; New Brunswick, 1863, 1130; 1865, 20,297,7025 1668, 17,042,111, "Grand 1803, 940,732,600; 1860, 619,499,286; 1867, 000; 1829, 507,251,070, Interuaitonal Exhibition of 1871—Despatch Jrom Karl Granville. OTTAWA, Sept, 18, 1869, ‘The following has beet dant by Karl Granville to Sir John Young:— a Lieutenant Colonel Scott to be Undor Secretary of State, Volonial OMice, ofice of her Majexty’s Com- missioners for the Exhibition of 1811-5, Upper Kensington, Gore, August 10, 1860, Sin—I ain directed by her Majesty’s Commissioners of Exhibition of 1961 to transmit for the Information of the several British colonies copies of the announcemeut of a series of international exhibi- tions of selected specimens of art and industry, which it intended shall be beld m London, 1871, and to request that you wi!l move the Bar! Granville to cause them to be forwarded to each colony as early a3 convenient. Her Majesty’s Commissionora desire me to point out that these exhibitions will be on comparatively limited scale, and that opjects sent from cach colony will not be ttt od as heretofore, but in their oper classes, and that tt ia desired that manufac. Birerm ahali exhibit only a single specimen of each Lor ovens Gommipstoners WI be orepared to roceive colontal objects for exhibition under the fol- lowing special regulations, vis.t— 1, Every objoct Which cap be exhibited in a vertical surface or wall space will be accepted if yea nied by @ certificate from the government of the colony Where it was produced ¢ Such object ws worthy of exhibition, 2. Every producer dostring to exhibit an object which will require for its exibition superfi or floor space must forward to her Majesty’s Com- missioners, before a date to be hereafter appointed, ®& working drawing or photograph of such object, with accurate dimensions or descriptive culara, on receipt of which her Majesty’s Conimissioners wil, if the object be considered worthy of exbibi- tion, transmit direct to the producer Chena egi acceptance of such object, thereby guaranteeing i admission, 8. Any producer may at his option, instead of con- forming with either of the foregoing regulations, send any object direct to the Exhibition buildings for the insbection and sop of fue) jack selected for other British exhibitors, and under game regulatioug aa shall be prescribed with re- {oronee 0 other British goods so submitted for in- Spection, Further partioulars having reference to specialities ot each colony will Be ee sent, . D. SCOTT, Lieutenaut Colonel Royal Engineers, FROM NEW ORLEANS, Big Bond Excitemont—The New Orleans Losn on the Now York Market~Wiiat It Is and How It Got Thore=Facts Withous Comments, New ORLEANS, Sept. 15, 1869. There is one matter which engrosses public atten+ tion here to the exclusion almost of other topics, It 13 a quostion of the partial negotiation in New York of bonds of the city of Now Orieans to the mount of over a million dollars, Aside from the amount involved there are other considerations of much importance attending the affair. A stormy meeting of the Common Council last night had the subject under discussion; the local presé in mere or leas guarded terms have referred to the subject; but no one has yet had the courage to probe the case to the bottom. A plain statement, therefore, of the law and the facts, without note or comment, may be of consideravic value both to Wall street and New Orleans, ‘The first public notice of the transaction came ia the shape of the following New York deapatch to the New Orieans Picayune:— Tho million and @ half seven per sent twenty-f bonds of the olty of New Orleans were plac York) market on Saturday. by Meaura, 9. & Go. of Exchange place, and defore night some the'amount had been dispoued of, ‘To-day (Mond. sales had not been so large whon I last saw the Mesara. $., but they were confident the milion and a half would be ail taken at an early day. Right here it may be well to give a copy of one of the bonds referred to, They run as follow: 81,000, 5 ire ov New OuuANs, Brats or Lou, | IBIANA, Issued in conformity with section I, of | S jotes (or in- Y'TON, President Southern Bantk,, Fiscal Agent. f the Stato Legislature, approved 27th Feb- ary, 1880. Knidw ail men by these presents, That the) 7 city of Now Orloans is Indobted to John A O'Brien, or bearer, in tho or $1,000, which stim the sald olty enga; current money of the United ollice of the City Treasurer, in twenty-fivo| lyears from the date hereof, with interest at ihe rate of seven percentum payable semiannually, om the rat days ol] jarch and September, in each year, on tho delivery of the Interest coupons attached in the clty of Now York, at such bank as the! lesan Agent shall froct, Dated New Or- a that this bond has been ct for cits ‘THOS. (Or indebtedness). {hereby certify ven in exebarge Si btedRess) LIQUIDATION OF CITY CURRENCY enna, Ist March, 1869." (Signatures of} Mayor, Treasurer and Comptroller.) ‘Yhero are two sets of these bonds authorized by the act of the Legisiature—one set of three millions “to be given exclusively in exonange at par for what is Known as city notes, that is to say, those notes for small amounts which have been issued by said city and were used as a currency for several years,” and which bonds, if not used for this purpose ‘and go endorsed by the discal agent, “sual be of no validity in the hands of auy holder.” The second set of bonds, amounting to $2,000,000, is authorized to be given in exchange for the floating indebted- ness of the city also at par, and as It ts bonds of thia description exciusively that have been placed upom the New York market, the position of affairs can be best explained by giving verdatim vhe section of the act which prescribes their mode of issue, leaving the facts to carry their own weight. Section three of tne act of thé State Legislature, approved 27th Feb- ruary, 1869, provides:— That to enable the city of New Orleans to fund and liqul. date its floating debt, now existing, such as Bes renee out. standing warrants, %c., said city’ 1s hereby authorized and empowered to issue bonds to the amount of $2,000,00i, im sums of $50, 8100, $500 and 1,000, payable twenty-five years from dato, Bearing Interest at the rate of seven per contura per annum, payable semi-annually in the city of New Orleans or New York, option of the holders thereof, for which Interest coupons shall be annexed to the bonds, which onde, when rated, shail be depos! agent of clty, and shall be given by said fiscal agent exclusively in payiment at par of debts ow dug by sald city, other ‘hose evidenced by city notes, a full and particular statement! of which devia shall be prepared by the Comp troller and Treasurer of sald olty, verified by tho Mayor and the mem- vera of the Fi m0 ce Commilitees of the Boards of Aldermen and Assistant Aldermen, and sald statement of said debts, Verided and attestod as aforesaid, shall be furatshed 10 the flacal agent of said city, and it shall be the duty of anid figcal agent to give sald borida at par in payment of the debts to the creditors mentioned in ald statement or to nd assicns. It will thus be seen that the requirements of the law are:— 1. That the City Comptroller and Treasurer shall prepare a statement of the indebtedness of the city. 2 Thgt the bonds shall only be disposed of tn pay: ment of the debts so set forth, and only disposed of at par. A subsequent section of the act adds @ third requirement:— Snorton 4. Be it further enacted, &c., That the fiscal agent shail publish every month a sworn’ statement of the number ‘and amount of bonds which have been thus given in payment of sald debts; and of the persons to whom sald Paymoute shall have been made and of the aniounts of wald Bonde at remaining on hand, which statements shall be verified and attested by the Mayor, Comptrolior aud Treasurer of aid city. In juxtaposition to these throe requirements muss be placed the toNowing fact J. On personal inquiry at the Comptroller's office your correspondent was this morning informed that no statement of debts had been prepared by the Comptroller and Treasurer. 2. Covsequently no bonds have been exchanged at par for debts set forth in sald statement. 8 On personal inquiry of the Fiscal Agent your correspondent {s informed that no sworn statement of bonds Issued, or on hand, has been published or prepared. At the meeting of tho City Council last night the Mayor, in response to a call for information as to how the bonds negotiated in New York came to be put upon the market, submitted the following communication:— SovTHERN BANK, NSW ORLEANS, Sept. 14, 1869, Hon. Joun K. NWAY, Mayor of the ay of New Orleans :— Sta—Your: edteomed favor of the 18th has heen duly re- ceived, In reply, I beg to inform you that the Finance Cor mittee of the Common Counell of this etty confided tot care of Victor Prados, Hag. Chalrman of the Finanae Co mittee of the Board of Al ermen, and to the writer, for sal io New York, Ds of New Orleans seven por cent bonds, Under a combination of adv cirs cumstances the nogotiation of sald in New bonds York was attended with great diflculty, and i wasonly in consequence of a desire on the part of eminently re- able gontiemen connected with the Chemical Nation to onty ei! on might for the sald bonds. Aa expression of this hope was communicated | to | this olty telegraph by Mr. Prados and the undersigned to the Finan Commmitige, of the Common Council of New Ori requested Instructions on the subjest. Jn, reply. ‘anid Fidanco Committee teft the decision of tha Enatter to oug judgment; and consequently, a& the rate aforenamed coul only ve obtained through the friendly and considerate inter. vention of the friends hereinbefore referred to, Mr, Prados ‘and myself concluded to accept the same. The’ negotiation of the said #612,000 of New Or! oven per cent bonds was oft an favorably as le under existing ciroum. Stancea, and Lcannot but think that the negotiation may be turned to good account and prot to-the te-ontabe lishment of the bigh credit to ‘New Orleans In juat entivied. A report of the particulars of “the negotiation wi be immodiately transmitte Finance Committee of the Comave ihe honor to Wo, sr, with Rroat regard, your most ave the honor Ir obedient servant, elt) with Oatan ba YTON, President Southern Bank, Fiscal Ageut of the city of New Orleans. Upon the reading of this document the Board of Assistant Aldermen passed the following resolu- tion: Resolved, T! the Fiscal Agent furniah the Common Couns tatement of the seven bor a un the reasons why bo has fal and fourth sections of thi tate We soliton” approw canry fi, 1889, to fis abilities, every month asworn statement of the Humber and mounts of the bonds issued under the act, which he bas exchanged either for city notes or in liquidation of the doating debt exe isting in judgmonte, outstanding accounts, Ac., as well ag those bonis remaining on band, ‘Theso are the simple facts of the loan tmbrogiio, I make no comments and draw no deductions. fhe remarks that follow are not your correspondents, but are made at the request of and in justice to those interested in placing the bonds on the New York market, The circumstances are stated to be that the two mitiions of bonds authorized exceed considerably the existing Noating debt of the olty. A. pressing necessity betng felt of restoring the crealé of the city, the Finanve Committee, being authorized by the Counct! todo wiat they thou ‘ie best, first paid to the Comra)ssioners of the Fink and MoVon- ough fund—a trust fund to which the city is always more or less indebied—a sum of some 1,000 1m bonds, and then borrowed them back and sent them to New York Jor negotiation, With a atiniiar object some $400,000 worth of Metropolitan Police Warrants were taken up With these bonds, so that the tax. payers, who previousiy paid thetr taxes with those warrants, shonld be compelled to pay greenbacks Into the city treasury. ‘The favorable terms obtained tor the bonds in the negotiation in New York—terms higher than the consolidateu bonds of the city seit for in the city itee@ii—it ta contended Will go far to retieve the city (rom embarrassment, In brief, Fiscal Agent claims that the transaction. though not within tl letter of the law, is within tts spirit, and Must prove advantageous vo the city. 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