THE PRESS, PUI4LISERD DAILY (SUNDAYS SICOEPTSD.II JOHN W. FORNEY, OFFICE, No. 111 SOUTH FOURTH STREET. THE DAILY PRESS, EIONTkR2I Curve Pait weak. payable to the Carrier . failed 'to Subaoribera ant of tit° City at Bien DOLLARS '?'RR ANNUM, Form DOLLIRP FOR Six Itlowrrta, Two Doc. GARB FOR THREE Morrpts—invariably in advance for tha time ordered. 1 fir Advertisements Inserted at the usual. Yates. Six 'tines constitute a square. THE TRI-WEEKLY pair.ss, Mailed to Subscribers out of the City at FOUR Dot, LANE PER ANNUM, In ad vauce. Vresz. MONDAY, JANUARY 19, 1863. THE REBELLION. In Inside View of the Southern Confederacy. MESSAGE OF JEFFERSON DAVIS. ttikeolitocl Correspondence. 'ENGLAND BUILDING A NAVY FOR THE REBELS, France Intriguing to Obtain Texas. A NEWSPAPER VIEW OF THE REBELLION "London Times) Correspondence Captured. THE MESSAGE OF JEFFERSON DAVIS. We print this morning in full the third Annual message of Jeflbrson Davis, an abstract of Which :appeared in The Press of Friday . : To the Senate and House of I?epresentatires of the Confe derate States At the date of your last adjournment the prepara tions of the enemy for further hostilities had as sumed so menacing an aspect as to excite in some minds apprehension of our ability to meet them with sufficient promptness to avoid serious reverses. These preparations were completed shortly after your departure front the seat of government, and the armies of the United States made simultaneous ad vances ou our frontiers on the Western rivers anti on the Atlantic-coast in masses so great as to evince their hope of overbearing all resistance by mere weight of numbers. This hope, however, like those previously entertained by our foes, vanished. In Virginia, their fourth attempt at invasion by armies, whose assured success was confidently pre dicted,,has met with decisive repulse. Our noble defenders, under the consummate leadership of their general, have again, at Fredericksburg, indicted on the forces under General Burnside the like disastrous overthrow as :hall diem previously suffered by the successive invading armies commanded by Generals McDowell, MeOlffflan, and Pope. In the West obstinate battles have been fought with varied fortunes, marked by frightful carnage on both sides; but the enemy's hopes of decisive results have again been hattied, - while at Vicksburg another for midable expedition ;has been repulsed, with ineon sijierable lesson our side and severe damage to the Afftiling forces, On the Atlantic coast, the enemy has been unable to gain a footing beyond the protecting shelter of his fleets, and the city of Galveston has just been re coveted by our forces, which succeeded not only in the capture of the garrison, but of one of the enemy's vessels of war, which was carried by boarding par ties from merchant river steamers. • Our fortified positions have everywhere been much etrengthened and improved, affording a 9311- ranee of our ability to meet with success the utmost efforts of our enemies, in spite of the magnitude of their preparations for attack. A review of our his tory of the two years of our national existence affords ample cause for congratulation, anti demands the most fervent expression of our thankfulness to the Almighty Father who has blessed our cause. We .are justified in asserting, with a Pride surely not unbecoming, that these Confederate States have added another to the lessons taught by history for the instruction of man; that they have afforded another example of the impossibility of subjugating A people determined to be free, and have demon strnted .that no superiority of numbers or available resources can overcome the resistance tittered by such valor in conthat, such constancy under suffer ing, and such cheerful endurance of privation as have been conspicuously clispihyed by this people in the defence of their rights anti liberties. The anti •cipations with which we entered into the contest have now ripened into a conviction, which is not only shared with us by the common opinion of neutral nations, but. is evidently forcing itself upon,, our enemies themselves. If we but mark the his tory of the present year by resolute perseverance in the path we have hitherto pursued, by vigorous elfoit in the development of all our resources for defence, and by the continued exhibition of the same unfaltering courage in our soldiers and able conduct in their leaders as have distinguished the past, we have every reason to expect that this will be the closing year of the war. The war, which in its inception was waged for forcing us back into the U 1310,1, having failed to ac. complish that purpose, passed into a second stage, in which it was attempted to conquer and rule these States as dependent provinces. Defeated in this second design, our enemies have evidently entered upon another, which ran have no other purpose than revenge, and thirst for blood and plunder of s prirate property. But, however implacable they may be, they can have neither the spirit nor the resources required for a fourth year of n struggle uncheered by any hope of success, kept alive solely for the indulgence Of mercenary and wicked passions, and demanding so exhausting an expenditure of blood and money as - has hitherto been imposed on their people. The ad •vent of peace will be hailed with joy; our desire for it futtl'herer been concealed; our efforts to avoid the war, forced on us as it was by the lust of conquest and the insane passions of our foes, are known to manktad. But, earnest as has been our wish for peace and great as have been our sacrifices and sufferings during the war, the determination of this .people has, with each succeeding month, become • more unalterably fixed to endure any sufferings and continue any sacrifices, however prolonged, until their right to self-government and the sovereignty and independence of these States shall have been triumphantly vindicated and firmly established. In this connection the occasion seems not unsuit able for-some reference to the relations between the (:onfetimacy anti the neutral Powers of Europe since the separation of these States from the former Union. Four of the States now members of the Confederacy were recognized by name as independent sovereign ties in a treaty of pe.ice concluded in the year 1753, with one of the two great maritime Powers of West ern Europe; anti had been prior to that period allies in wat of the other. In the year 1778 they formed a union with nine other States under Articles of Con federation. Dissatisfied with that union, three of them—Virginia, Carolina, and Georgia—together 'with eight of the States now members of the United ;States, seceded (teen it hi 1789, and these eleven se ceding States formed a second Union, although by the terms of the Articles of Confederation express provision was made that the first Union should be . perpetual. Their right to secede, notwithstanding this provision, was never contested by the Sta tea front which 11.er separated, nor made the subject of discussion with 'any third Power. When, at a later period, North Carolina acceded to thfitseconti Union, and when, still later, the other seven States, now members of this Confederacy, became also members of the same Uhion, it was upon the recognized footing of squid tandludependent sovereignttes ; nor had it then entered into the minds of men that sovereign States could be compelled by force to remain members of a Confederation into which they had entered of their own free will, if at tt subsequent period the defence of their safety and honor should, in their judgment, justify withdrawal. The experience of the past had evinced the futi lity of any renunciation of such inherent rights, and accordingly the provision for perpetuity con tained in the Articles of Confederation of 177 S was omitted to the Constitution of 1789. When, there fore, in 1561, eleven of the States again thought pro per, for reasons satisfactory to themselves, _to secede from theyteponti Union, and to form a third one, tin der tinoimebded Constitution, they exercised a right which, being inherent, required no justification to forelgn;nations, and which international law did not permit them to question. The usages of intercourse between nations du, however, require that official commtsnication be made to friendly Powers of all or ganic changes in the Constitutions of States, and there was obvious propriety in giving prompt assu rance of our desire to continue amicable relations with all mankind. It was under the influence of these considerations that your predecessors, the Provisional Government, took early mensut ea for sending to Europe commis sioners charged with the duty ot visiting the capitals of the different Powers. anti making arrangements for the opening of mote formal diplomatic intercourse. Prior, however, to the arrival abroad of these com missioners, the United States had commenced hosti lities against the Confederacy by tiespatchingik secret expedition for the reinforcement of Fort Sumpter, after an express promise to the contrary, and with a duplicity which has been fully unveiled in a former Message. They had also addressed communications to the different Cabinets of Europe, in which they assumed the attitude of being sovereign over this Confederacy, allfglog that these independent States were In rebellion against the remaining States of the - Union, and threatening Europe with manifestations of their displeasure if it should treat the Confederate States as having an independent existence. It soon )became known that these pretensions were not con *tiered abroad to he as absurd as they were known •to be at home, nor had Europe yet learned what reliance was to be placed in the official state ments of the Cabinet at Washington. The delegation of power granted by these States to the Federal Go vernment to represent them in foreign intercourse had led Europe into the grave error of supposing that their separate sovereignty and independence had been merged into one common sovereignty, and had ceased to have x distinct existence. Under the influence of this error, which ail appeals to reason anti historical fact were vainly used to dispel our •commissioners were diet by the declaration that foreign Governments could not assume to judge be tween the conflicting representations of the two parties as to the true nature of their previous mu tual relations. The Governments of Great Britain Anti France accordingly signified their determination to confine themselves to recognizing the self-evident fact of the existence of a war, and to maintaining a Strict neutrality during its progress. Some of the other Powers of Europe pursued the same course of policy, and it became apparent that, by some under standing, express or tacit, Europe had decided to leave the initiative in all action touching the contest on this continent to the two Powers just named, who were recognized to have the largest interests in volved. both by reason of proximity and of the ex tent and intimacy of their commercial relations with the States engaged in war. It is manifest that lime course of action adopted by Europe, while based on an apparent refusal to de teminine the question, or to side with either party, was in point of fact an actual decision against our riehts and in favor or the groundless pretensions of )tic Vatted States. It was a refusal to trust us as an independent government. If we were indepen dent States, the !Ottani to entertain with U 3 the %%me international intercourse as was maintained with oar enemy was unjust and was injurious in its effects, *Weyer may have been the motive which Sirompted it. Neither was it in accordance with the hieh moral obligations of that international lode ii hose chief sanction i 3 the conscience of sovereigns and the public opinion or mankind that those enti rent Powers should decline the performance of a ~( 111t Y Peculiarly. incumbent on them front any appre hention of the consequences to themselves. One immediate anti necessary result of their declining the responsibility of a decision which must have been adverse to the extravagant pretensions of the United States was the proloneation of hostilities to which Laveenemies were thereby - encouraged, and which nave resulted in nothing but scenes of carnage anti devastation on this continent, antra misery anti suf fering on the other, such as have scarcely a parallel is history. Had these Powers promptly admitted !an' tight to be treated ne all other independent tin flons, none can doubt thnt the moral effect of such action would have been to dispel the delusion under which the United States have persisted la their ef forts to accomplish our subjugation. To the continued hesitation of the same Powers in tendering this act of simple justice towards this Con federacy is still (hie the continuance of the calami ties which mankind sutlers from the interruption of its ITectful pursuits both in the 01st anti the New i" . ° 0 ( 1 . There are other matters in which less than justice has been rendered to this people by neutral Xtlrope, rind undue advantage effected to our rime... - ' 1 " In a wicked war. At the inception of hostilities he inhabitants of the Confederacy were almost ex elusively agriculturists ; those of the United States, 1° a great extent, mechanics and merchants. We had no Commerrinl marine, while` their merchant feasts covered tale ocean. We were without a tvhile they had powerful fleets. The advan see which they poesessed for inflicting injury on °lir routs anti hat bt es was thus counterbalanced in r 7. - K',\ - ‘ - . it f /7>A Vrt,,14.. - ~. N •„\% 0 i ~,,, i • . :,•.:4,:.- -.--- * tt A , (;-• .. >pk„. :' ::.'-_:----.--;,.._•__: ij:L -- -:;,Z; 4 \ 1 4( 1 , / „ .r j ,4 . •• • •- ig ' ==,-,,'-- ;',": 5; ::...-.: • tri t t lit . . . . . . . •--.,-- . ..•• • • ' • -- -. ..1.:T.T., )I ) . r , i m ,.. ---- 7"---__•-• -I . ' -;-•. :iii i-effil .. ~.::? . • ..... - ,0,. ...- : . -. ..--.7 . .. ._ _.........\..., . •. je6 z - , - Z-. : : --%- - . - 2 , .. , , , ' -...,.:.: - ' .:Zl l lgrft...*: :,, .-‘1.....N.......:-.: 1. , 4! . .i....•_._ ~„.....,.- .. r . cd -.. ri0h.. .. ... s. ,- •••-- ,„ -- ii iii.. ......•.. ri„ ,.., . , „:„..:. ~...,:. ~ • ~.:. ~ _ _. L _,..7___ . :.; : •7 1 1 , ; , - -'-', e. - =' , •• st' • _- - ..----.,-, sew • : 1 0 31.44.3 • .. ' IN. I 1111 . . .. 7 ...„,„..._„:. ~,,,-. ~.. .)1 4 ...v,... 0 .,,f t ... ..,.; ,-. • , ill i •;' • - " ~-., IA: v 1 , 1. . ':•-•1 0 .:.'' d e t t i f .474 111 r- ------. m_ T -_ :. ,...1'. ..... aireasow. •--,,,,•`' •••; 7 4.....,:- , .: : - :.: . : ~,v,mjE ~I. _ . . :...7..,iivoty ' . .-••• : - ' - ... li ,..,.....y. , .17?) . 1 /. .. :. .: .. ;: ; ,..4 , ....,y,, -,-____ : ..L ._. ,_: . . -,..-...,....:44.ir1a . 44 - 1_1 : .,.. , L.7 . . „.. „ .. 1 , 7 .: , f! - ,..:,_:.. 4 '.;....,....,...4... -,..;.-,,, ,. .f.1,..,.. , ,.,..-4 ., - , . f1.,,,i ., d f • ...-:.:.......... ~.;;;,........,.., .-_-___....-.. ....".. , -..--.....;;,„. .._....4-• ....... —...., ‘• . • -..•..— \. • .-.. "`vim, ---•-.......---414::"" VOL. 6.-NO. 143. some measure by the exposure of their commerce to attack by private' armed vessels. It was known to Europe that within a very few years past the United States had peremptorily re fused to accede to proposals for abolishing privateer ing, on the ground, as alleged by them, that nations owning powerful fleets would thereby obtain undue advantage over those possessing inferior naval forces. Yet no sooner was war flagrant between the Confederacy and the United States than the mari time Powers of Europe issued orders prohibiting either party from bringing prizes into their ports. This prohibition, directed with apparent imparti ality against both belligerents, was, in reality, effec tive against the Confederate States alone; for they alone could find a hostile commerce on the ocean. Merely nominal against the United States, the pro- hibition operated with intense severity on the Con federacy, by depriving it or the only means of main taining, with some approach to equality, its struggle on the ocean against the crushing superiority of naval force possessed by its enemies. The value and efficiency of the weapon which was thus wrested from our grasp by the combined action of neutral European Powers, in favor of a nation which profeSses openly its inten tion of ravaging their commerce by privateers in any future war, is strikingly illustrated by the ter ror inspired among the commercial classes of the United States by a single cruiser of the Confedera cy. One national steamer, commanded by officers and manned by a crew who are debarred by the closure of neutral ports from the opportunity of causing captured vessels to be condemned In their favor as prizes, has sufficed to double the rates of marine insurance in Northern ports, and consign to forced inaction numbers of Northern vessels, in ad dition to the direct damage inflicted by captures at sea. How difficult, then, to overestimate the effects that must have been produced by the hundreds of private anted vessels that would have swept the seas in put suit of the commerce orour enemy If the l / 4 means of disposing of their prizes had not been withheld by the action of neutral Europe. • But it is especially in relation to the so•ealled blockade of our coast that the policy of European powers has been so shaped as to cause the greatest injury to the Confederacy, and to confer signal ad vantages on the United States. The importance of this subject requires some development.. Prior to the year 1856 the principles regulating this subject were to be gathered from the writings of eminent publicists, the decisions of admiralty courts, interna tional treaties, and the usages of nations. The un certainty and doubt which prevailed in reference to the true rules of maritime law in time of war, re• suiting from the discordant, and often conffioting, principles announced front such varied and independ ent sources, had become a grievous evil to mankind. Whether n blockade l eas allowable against a port not invested by land as well as by sea, whether a blockade was valid by sea if the investing fleet was merely sufficient to render ingress to the blockaded port evidently dangerous, or whether it was further required for its legality' that it should he sufficient really to prevent access, and numerous other similar questions, had remained doubtful and undecided. Animated by the highly honorable desire to put an end to ditlerences of opinion between neutrals and belligerents, which may occasion serious difficulties and even conflicts—l quote the official language— the five great Powers of Europe, together with Sar dinia and Turkey, adopted, in 1856, the following solemn declaration of principles : Firsily—Privateering is and remains abolished. Secondly—The neutral flag covers enemy's goods, with the exception of contraband of war. Thirdly—Neutral goods, with the exception of don traband of war, are not liable to capture under ens say's flag. Four/My—Blockades, in order to be binding, must be effective; that is to say, maintained by a force sufficient really.to prevent access to the coast of the enemy. Not only did this solemn declaration announce to the world the principles to which the sigoing Pow ers agreed to conform in future wars, but it contained a clause to which those Powers gave immediate ef fect, and which provided that the States not parties to the Congress of Paris should be invited to accede to the declaration. Under this invitation every in dependent State in Europe yielded Its assent. At least no instance is known to me of a refusal, 'anti the United States, while declining to assent to the proposition which prohibited privateering, declared that the three remaining principles were In entire accordance with their own views of international law. No instance is known in history of the adop tion of articles of public law under circumstances of like solemnity, with like unanimity, and pledging the faith of nations with sanctity so peculiar. "When, therefore, this Confederacy was formed, and when neutral Powers, while deferring action on its demand for admission into the family of nations, re cognized it as a belligerent Power, Great Britain and France made informal proposals about the same time that their own rights as neutrals should be guarantied by our acceding as belligerents to the declaration of principles made by the Congress of Paris. The request was addressed to our sense of justice, and therefore met immediate favorable re sponse. in the resolutions of the Provisional Con gress of the 13th of August, 1861, by which all the principles announced by the Congress of Paris were adopted as the guide of our conduct during the war, with the sole exception of that relative to privatccring. As the right to make use of had, was one in which neutral nations had, as to the present war, no interest, as it was a right which the United States had refused to abandon, and which they remained at liberty to em ploy against us, as it was a right of which we'were already in actual enjoyment, and which we could not be expected to' renounce,,flagrank bello, against an adversary possessing an overwhelming superiority Of naval forces, it was reserved, with entire confi dence that neutral nations could not fail to perceive that just reason existed for the reservation. Not was this confidence misplaced ; for the official docu ments published by the British Government, usually . called Blue Books, contain the expression ot-the sa tisfactiorrof that Government with the conduct of the officials who conducted successfully the delicate business confided to their charge. These solemn declarations of principle—this im plied agreement between the Confederacy and the two Powers just named 7 —have been suffered to re main inoperative against the menaces and outrages on neutral rights, committed by the United States, with unceasing and progressing arrogance during the whole pericd of the war. Neutral Europe re mained passive when the United States—with a naval force insufficient to blockade effectively the coast of a single State—proclaimed a paper block ade of thousands of miles of coast, extending from the Capes of the Chesapeake to those of Florida and to Key West, and encircling the Gulf of Mexico to the mouth of the Rio Grande. Compared with this monstrous pretension of the United States, the blockades known in history under the names of the Berlin sad Milan Decrees, and the British Orders in Council, in the years 1806 and ISO 7, sink into insig nificance. Yet those blockades were justified by the Powers that declared them, on the sole ground that they were retaliatory; yet those blockades have since beencondenineo by the publicists of those very Powers as violations of international law; yet those blockades evoked angry remonstrances from neutral Powers, amongst which the United States were the most conspicuous; yet those blockades became the chief cause of the war between Great Bittain and the United States in 1S12; yet those blockades were one of the principal motives that led to the declara tion of the Congress of Paris in 1856, in the fond hope of imposing an enduring check on the very abuse of maritime power. which is now renewed by he United States in 1861 and 1862 ' under circum stances and with features of aggravated wrong with out precedent in history. The records of our State Department contain the evidence of the 'repeated and formal remonstrances made by this Government to neutral Powers against the recognition of this blockade. It has been shown by evidence not capable of contradiction, and which has been furnished in part by the officials of neutral nations, that the few ports of this Confederacy be fore which any naval forces at all have been sta tioned have been invested so inefficiently that hundreds of entries have been effbcted into them ' since the declaration of the blockade ' • that our enemies have themselves admitted the inefficiency of their blockade in the most forcible manner by re peated official complaints of the sale to us of goods contraband of war—a sale which could not possibly affect their interests if their pretended blockade was sufficient really to prevent access to our coast; that they have gone further, and have alleged their inability to render their paper blockade effective s as the excuse for the odious barbarity of destroying the entrance to one of our habors by sinking vessels loaded with stone in the channel ; that our commerce with foreign nations has been interrupted not by the effective investment of our ports or by the seizure of ships In the attempt to enter them, but by the capture on the high seas of neutral vessels by the cruisers of our enemies whenever supposed to be bound to any point on our extensive coast, without inquiry whether a single blockading vessel was to found at such point; that blockading vessels have left the ports at which they were stationed for distant expeditions, have been absent for many days, and have returned without notice either of the cessation or renewal of the blockade. In a word, that every prescription of maritime law and every right of neu tral nations. to trade with a belligerent underthe sanction of principles heretofore universally re spected have been systematically and persistently violated by the United States. Neutral Europe has received our remonstrance, and has submitted in almost unbroken silence to all the wrongs that the - United States have chosen to inflict on its com merce. The Cabinet of Great Britain, however, has not confined itself to such implied acquiescence in these breaches of international law as results from simple inaction, but has, in a published despatch of the Secretary of State for Foreign Affarirs, assumed to make a change in the principle enunciated by the eongiess of Paris, to which the faith of the British Government was considered to be pledged—a change too important and too prejudicial to the interests of the Confederacy to be overVoketi, and against which I hare directed solemn protest to be made, after a vain attempt to obtain satisfactory explanations from the British Government. In a published despatch from her Majesty's Foreign Office to her minister at Washington, under date of February 11, I 562, occurs the following passage : "ller Majesty's Government, however, are of opinion that, assuming that the blockade was duly Notified, and also that a number of ships are sta tioned and remain at the entrance of a port sufficient really to prevent access to it, or to creole an Evident danger of entering it or leaving it, and that these ships do not voluntarily permit ingress or egress, the fact that various ships may have successfully escaped through it, (as in the particular instance here re ferred to,) will not. of itself prevent the blockade rim being an effectual one by international law." The words which I have italicised are an addition made by the British Government of its own autho ity to a princicle, the exact terms of which were settled with deliberation by the common consent of els ilized nations, and by implied convention with Ibis Government, as already explained, anti their efiect is clearly to reopen, to the prejudice of the Confederacy, one of the very.j.itsputed questions on the law of blockade which the Congress of Paris professed to settle. The importance of this change is leadily illustrated by taking one of our ports as an example. There is evident danger on entering the port of Wilmington from the presence of a bleekading force; and by this test the blockade is ef ft etive. " Access is not really prevented " by the blockading fleet to the same port; for steamers are cf.ntlnually arriving and departing• so that, tried by this test, the blockade is ineffective and invalid. The justice of our complaint on this point is so manifest as to leave little room for doubt that lint her rt flection will induce the British Government to give us such assurances as will efface the painful impressions that would result from its language if left unexplained. From the foregoing remarks you will perceive that, during' nearly two years of struggle, in which very ene:gy of our country has been evoked for maintaining its very existence, the neutral nations of Europe have pursued a policy which, nominally impartial, has been practically most favorable to our enemies anti most detrimental to us. The exercise of the neutral right of refusing entry into their ports to prizes taken by both belligerents was eminently hurtfu) 3 to the Confederacy. It was sternly asserted and maintained. The exercise of the neutral right of commerce with a belligerent N% hose ports arc not blockaded by fieets sufficient !rally to prevent access to them would have been eminently hurtful to the United States. It was complaianntly abandoned. The duty of neutral .States to receive with cordiality and recognize with respect any new confederation that independent Ma tea may' think prooer to form was too clear to admit of denial ; but its postponement was obviously beneficial to the United States and detrimental to the Confederacy. It was postponed. in this review of our relations with the neutral ratioms of Europe, it bag been my purpose to point out distinctly that this Government has no com plaint to make that those nations declared their roc trality. It could neither expect nor desire more: The complaint is that the neutrality has been rather .1 minal than real, and that reco7n, ized neutral lights hare been alternately asserted and waited in inch wanner as to hear with great severity on us, and to confer signal advantages on our enemy. 1 have hitherto refrained from' calling Your atten tion to this condition of our relationswith foreign l'OWEis for various reasons: -The OW of these was he fear that a statement of our last grounds of com 7. plaint against a course of policY so injurious to our interests might be misconstrued into an appeal for aid. Unequal as we were in mere numbers and available resources to our enemies, we were con scious of powers of resistance in relation to which Europe was incredulous, and our remonstrances were thereforepecullarlyllable to he misunderstood. Proudly self-reliant, the Confederacy, knowing full well the character of the contest into which it Wfla forced, with full trust in the superior qualities of its population, the superior valor of its soldiers, the superior skill of its generals, and, above all, in the justice.of its cause, felt no use to appeal for the maintenance of its rights to other earthly aids, and it began and has continued this struggle with the calm confidence ever inspired in those who, with consciousness of right, can invoke the Divine blessing on their cause. This confidence has been so assured that we have never yielded to despondency under defeat, nor do we feel undue elation at the present brighter prospect of a successful issue to our contest. It is l therefore, because our just grounds of complaint can no longer he mis interpreted that I lay them clearly before you. It seems to me pow proper to give you the in formation, and, although no immediate results may be attained, it is well that truth should be pre served and recorded. It is well that those who are to folio* us should understand the full nature and character of the tremendous conflict in which the blood of our people has been poured out like water, and in which we have resisted, unaided, the shocks of hosts which would have sufficed to overthrow many of the Powers which, by their hesitation in according our rights as an independent nation, im ply doubt of our ability to maintain our national existence. It may be, too, that if in future times unfriendly discussions not now anlicpated shall unfortunately arise between this Confederacy and White European Power, the recollection of our for bearance under the grievances which I have enu merated may be evoked with happy influence in preventing any serious disturbance of peaceful re lations. , It would not be proper to close my remarks on the subject of our foreign relations without adverting to the fact that the correspondence between the Cabi nets of France, Great Britain, and Russia, recently published, Indicates a gratifying advance in the ap preciation by those Governments of the true inte rests of mankind, as involved in the war 012 this con tinent. It is to the enlightened ruler of the French nation that the public feeling of Europe is indebted to the first official exhibition of its sympathy for the sufferings endured by* this people with so much he roism, of its horror at the awful carnage with which the progress of the war has been marked, and of its desire for a speedy peace. The clear and direct inti mation contained in the language of the French note, that our ability to maintain our independence has been fully established, was not controverted by the answer of either of the Cabinets to which it was. addressed. It is indeed difficult to conceive ajust ground for a longer delay on this subject, after read ing the following statement of facts contained in the letter emanating from the Minister of hie Imperial it s esty : "There has been established from the very begin ning of this war an equilibrium of forces between the belligerents, which has since been almost con stantly maintained, and after the spilling of so much blood they are to-day in this respect in a situation which has not sensibly changed. Nothing author; izes the anticipation that more decisive military operations will shortly occur. Aecording to the last advices received in Europe, the two armies were, on the contrary, in a condition which permitted neither to hope within a short delay advantages sufficiently marked to turn the balance definitely and to accele rate the conclusion of peace." As this Government has never professed the intan t ion of conquering the United States, but has simply asserted its ability to defend itself against being con quered by that Power, we may safely conclude that the claims of this Confederacy to its just place in the family of nations cannot long be withheld after so frank and formal an admission of its capacity to cope, on equal terms, with its agressive foes, and to main tain itself against their attempts to obtain decisive results by arms. It is my painful duty again to inform you of The re newed examples of every conceivable atrocity com mitted by the armed forces of the United States at different points within the Confederacy, and which must stamp indelible infamy, not only on the per petrators, but on their superiors, who, having the power to check these outrages on humanity, nume rous and well authenticated as they have been, have not yet in a single instance of which I am aware in flicted punishment on the wrong-doers. Since my last communication to you, one Gefferal McNeil murdered seven prisoners of war in cold blood, and the demand for his punishment has remained Un satisfied. The Government of the United States, after promising examination and explanation in re lation to the charges made against 'General Benja min P. Butler, has, by its subsequent silence; after repeated efforts on my part to obtain some answer on the eubject, not only admitted his guilt, but. sanc tioned it by acquiescence : and I have accordingly branded this criminal as tin outlaw, and directed his execution in expiation of his crimes if he should fall into the hands of any of our forces. • • Recently I have received apparently authentic in telligence of another general, by the name of Milroy, who has issued orders in Western Virginia for the payment of money to him by the inhabitants; ac companied .by the most savage threats of shooting every recusant, besides burning his house; 'and threatening similar atrocities against any of our citi zens who shall fail to betray their country by giving him prompt notice of the approach of any of our forces. And this subject has also been submitted' to the superior military authorities of the United States, with but faint hope that they will evince any disap probation of the act. Humanity shudders at the ap palling atrocities which are being daily multiplied under the sanction of those who have obtained tem porary possession of power in the United,States, and who are fast making its once fair name a byword of reproach among civilized men. Not even the natural indignation inspired by this conduct should make us, however, so unjust as to attribute to the whole mass of the people who are subjected to the despotism that now reigns with unbridled license In the city of Wash ington a willing acquiescence in its conduct. of the war. There must necessarily exist among our enemies very many—perhaps a majority—whose humanity recoils from all participation in such atro cities, but who cannot be held whidly guiltless while permitting their continuance without an effort at repression. The public journals of the North have been re ceived, containing a proclamation, dated the first day of the present mouth, signed by the President of the United States, in which he orders and declares all slaves within ten of the States of the Confederacy to be free; except such as are found within certain districts now occupied in part by the armed forces of the enemy. We may well leave it to the instinct of that common humanity which a beneficent Creator has implanted in the breasts of our fellow-men of all countreis to pass judgment on a measure by which several millions of human beings of en inferior race peaceful and contented laborers in their sphere, are doomed to extermination, while at the same time they are encouraged to a general assassination of their masters by the insidious recommenda tion "to abstain from violence unless iu he- I cessary self-defence." Our own detestation of those who have attempted the most execrable measure recorded in the history of guilty man is tempered by profound contempt for the impo tent rage which it discloses. So far as regards the action of this Government on such criminals as may I attempt its execution, I confine myself to informing you that I shall—unless in your wisdom vou deem some other course more; expedient deliver to the several State authorities all commissioned officers of the United States that may hereafter be captured by our forces in any of the States embraced in the pro ciamation, that they may be dealt with in accord- I ance with the laws of those States providing for the punishment of criminals engaged in exciting servile insurrection. The enlisted soldiers I shall continue 1 to treat as unwilling instruments in the commission of these crimes, and shall direct their discharge and return to their homes on the proper and usual parole. • In its political aspect, this measure possesses great significance, and to it in this light I invite your at tention. It affords to our whole people the com plete and crowning proof of the true nature of the designs of the party which elevated to power the . present occupant of the Presidential chair at Wash. ington, and which sought to conceal its purposes by every variety of-artful device, and by the perfidious use of the most solemn and repeated pledges for 1 every possible occasion. I extract, in this connec tion, as a single example, the following declaration, made by President Lincoln under the solemnity of hie oath as Chief Magistrate of the United States, on the 4th of March, 1861 : "Apprehension seems to exist among the people of . the Southern States that by the accession of a Ile publican Administration their property and their peace and personal security are to be endangered. There has never been any reasonable cause for such I apprehensions. Indeed, the most ample evidence to I the contrary has all the while existed and been open to their inspection. It is found in nearly all the public speeches of him who now addresses you. I do but quote from one of those speeches when I de clare that I have no purpose, directly or indirectly, 1 to interfere with the institution of slavery in the ; States where it exists. I believe I have no lawful right to do so, and I have no inclination to do So. 1, Those who nominated and elected me did so with full knowledge that I had made this and many simi lar declarations, and had never recanted them. And more than this, they placed in the platform for my acceptance, and as a law to themselves and to me, I the clear and emphatic resolution which I now read: " 'RE - solved, That the maintenance inviolate of the rights of the States, and especially the right of each :irate to order and control its own domestic institu tions according to its own judgment exclusively, is essential to that balance of power on which the per- 1 feetion and endurance of our political fabric depend, I and we denounce the lawless invasion by armed I force of the soil of any State or Territory, no mat- I ter under what pretext, as among the gravest crimes.' " Nor was this declaration of the want of power or disposition to interfere with our social system con fined to a state of peace. Both before and after the actual commencement of hostilities, the President of the United StRtEE repeated, in formal official com munication to the Cabinets of Great Britain and France, that he was utterly without constitutiOnal power to do the act which he has just committed,. and that in no possible event, whether the secession of these States resulted in the establishment of a separate confederacy or in the restoration of the 'nion, was there any authority by virtue of which he could either restore a disaffected State to the l'uion by force of arms. or make any change in any of its institutions. I refer especially for verification of this assertion to the despatches addressed by the Secretary of State of the United States, under direction of the President, to the ministers of the United States at London and Paris, under date of 10th and 22d of April. 1861. The people of this Confederacy, then, cannot fail to receive this proclamation as .the fullest vindi cation of their own sagacity, in foreseeing the uses in which the dominant party in the United States intended, front the beginning, to apply their power; nor can they cease to remember with devout thank fulness that it is to their own vigilance, in resisting the first stealthy progress of approaching despotism, that they owe their escape from consequences now appal eat to the most skeptical. This proclamation will hare another salutary tact in calming the fears of those who have eon liantly evinced the apprehension that this war might end by some reconstruction of the old Union, or some renewal of close political relations with the United States. These fears have never been shared by me, nor have I ever been able to perceive on what basis they could rest... But the proclamation affbrils the fullest guarantee's of the impossibility of such a result. It has established a state of things which can lead to but one of three possible conse quences—the extermination of the slaves, theexile of the whole white population of the Confederacy, or absolute and total separation of these States from the United States. 'This proclamation is also an authentic . statement by the Government of the 1 nited States of its inability to subjugate the South by force of arms, and as such must be accepted by neutral nations, which can no longer rind any justi cation in withholding our just claims to formal re crenition. It is also, in effect, an intimation to the peeple of the North that they must prepare to sub mit to a separation, now become inevitable: for that people are too acute not to understand that . a resti tution of the Union has been rendered forever im p essible by the adoption of a measure which, from ifs very nature, neither admits of retraction nor can co-exist with union. Among the subjects to which your attention will It specially devoted during the present session, you will, no doubt, deem the adoption of some compre• her.sive system of flnante as being otparamount importance. The increasing public debt, the great bugmentition id the volume of the currency, with its necessary concomitant of extravagant prices for ail articles of consumption • the want of revenue from a taxation adequate to support the public credit, all unite in admonishing us that energetic and prise legislation alone can prevent serious ein-' 1 Arraesment in our monetary Weirs.. It is my con iction that the people of the Confederacy will freely meet taxation on a scale adequate to the mainte nance of the public credit and the support of their" Government. When each family is sending forth its" must precious ones to meet exposure in camp and death in battle, what ground can there be to doubt'. the aspotitioo to 'devote a tithe of its oine-,and PHILA_DELPIIIA., MONDAY, JANUARY 19, 1863. inbre, if more be necessary—to provide the Govern ment with means for insuring the comfort of its de fend ere*? If our enemies submit to an excise on every commodity they produce, and to the daily pre sence of the tax-gatherer, with no higher motive than the hope of success in their wicked designs against us, the suggestion of an unwillingness on the part of this people to submit to the taxation ne cessary for the success of their defence is an impu tation on their patriotism that few will be disported to make, and that none canjustify. The legislation of sour last session, intended to hasten the funding of outstamling treasury notes, has provetl - benetieral,-as.shown by the returns an nexed to the report of the Secretary of the Trea sury : but it was neither sufficiently prompt nor far-reaching to meet the full extent of the evil. The passage of some enactment, carrying still further the. policy of that law, 1)1 - fixing a limitation not later than the first of July next, to the delay allowed for funding the notes issued prior to the Ist of Decem ber, 1862, will, in the opinion of the Secretary, have the effect to withdraw from circulation nearly the entire sum issued previous to the. last named date. If to this be added a revenue from adequate taxation, and appropriation of bonds guarantied proportion ately by the seven-per-cents, as has alrcady.been generously proposed by some of them in enactments spontaneously adopted, there is little doubt that we shall see our finances restored to a sound and satis factory condition, our circulation relieved Of the re duridancy now productive of so many mischiefs, and our credit placed on such a basis as to relieve us from further anxiety relative to our resources for' the prosecution of the war. It true that at its close our debt will be large; but it Will be due to our own people, and neither the interest nor the capital will be exported to distant countries, impoverishing ours for their benefit.' On the return of peace, the untold wealth which -will spring from our soil will render the :burden of taxation far less Onerous titan is now supposed, es pecially if we take into consideration that we shall then be free from the large and steady, drain of our substance, to which we were subjected in the Fate. Union through the instrumentality of sectional le gislation and protective tariffs. I recommend to your earnest attention the whole report of the . Secretary of the Treasury on this important subject, and trust that your legislation on it will be delayed no longer than may be required to enable your wisdom to de vise the proper measures for insuring the accom plishment of the objects proposed. The operations ofthe War. Department have been in the main satisfactory. In the report of the Sec retary, herewith submitted, will be found a summary of many memorable successes. They are with jus tice ascribed in large measure to the reorganization and reinforcement of our armies under the operation of the enactments for conscription. The wisdom and efficacy of these acts have been approved by re sults, and the like spirit. of unity, endurance, and self-devotion of the people which has hitherto sus tained their action must be relied on to assure their enforcement under the continuing necessities of our situation. The recommendations of the Secretary to this effect are tempered by suggestions for their amelioration, and the subject deserves the considera tion of Congress. For the perfection of our military organization no appropriate means should be rejected, and on this subject the opinions of the Secretary merit early attention. It is gratifying to perceive that, under all the enormous sacritices of war, the power and means of the Confederacy for its successful prosecution are increasing. Dependence on foreign supplies is to be deplored, and should as far as prac ticable be obviated by the development and employ ment of internal resources. The peculiar circum stances of the country, hoWeVer, render this difficult and require extraordinary encouragements and fa cilities to be granted by the Government. The embarrassments resulting from the limited .capacity of the railroads to afford transportation, and the impossibility of otherwise commanding and distributing the necessary supplies for the armies, render necessary the control of the roads under some general supervision and resort to the power of impressment under military exigencies. While such powers have to be exercised, they should be guarded by judicious provisions against perversion or abuse, and be, as recommended by the Secretary, under due regulation of law. I specially recommend in this connection some re vision of the exemption law of last session. Serious complaints have reached me of the inequality of its operation from eminent and patriotic citizens whose opinions merit great consideration, and I trust that some means will be devised for leaving at home a sufficient local police, without -making dire er:minations, always to be deprecited, between dif ferent classes of our citizens. . Our relations with the Indian generally continue to be friendly. A portion 'of the Cherokee people have assumed an attitude hostile to the Confederate Government; but it is gratifying to be able to state that the mass of intelligence and worth in that na tion have remained true and loyal to their treaty '•eng . agements. With this exception, there have been no important instances of dissatisfaction among any of the friendly nations and tribes. Dissatisfaction recently manifested itself among certain portions of them; but this resulted from a misapprehension of the intentions of the Government in their behalf. This has been removed, and no further difficulty is anticipated. The report of the Secretary of the Nary, herewith _transmitted, exhibits the progress made in this branch of the public service since your adjournment, as well as its present condition.' The details em braced in it are of such a nature as to render it, in my opinion, incompatible with the public interests that they should be published with this message. I therefore , confine myself to inviting your attention to the information therein contained. The report of the Postmaster General shows that duringthe first postal year, under our Government, terminating on the 30th of June last, our revenues were in excess of those received by the former Go vernment in its last postal year, while the expenses w ere greatl3 - decreased. There is still, however, a con siderable deficit in the revenues of the Department, as compared with its expenses, and, although the grants ahead) made from the general treasury will suffice to coverall liabilities to the close of the fiscal year ending on the 30th of June next, I recommend some -if any can be constiutionally devised, for aiding the revenues of that Department during the ensuing fiscal year, in order to avoid too great a reduction of postal facilities. Your attention is also invited to numerous other improvements in the ser vice recou mended in the report, and for which legis lation is required. 1 recommend to the Congress to devise a proper mode of relief to those of our citizens whose pro perty has been destroyed by order of the Govern.; mint, in pursuance of a policy adopted as a means of national defence. It is true that full indemnity cannot now Le made ; but some. measure of relief is' due to those patriotic citizens who have borne pri, vote loss for the public good, whose property, in effect, has been taken for public use, though not directly appropriated. Our Government, born of the spirit of freedom and of the equality and indepen dence of the States, could not have survived a selfish orjealous disposition, making each only careful of its own interest or safety. The fate of the Confederacy, under the blessing of Divine Providence, depends upon the harrnony e energy, and unity of the States. It especially de volves on you, their representatives, as far as practi cabletto reform abuses, to correct errors, to culti vate iraternity, and to sustain in the people a just confidence in the Government of their choice. To - that confidence and to the unity . and self-sacrificing patriotism hitherto displayed Is due the success which has marked the unequal contest, and has brought our country into a condition at the present lime such as the most sanguine would not have ven tured to predict at the commencement of our strug gle. Our armies are larger, better disciplined, and more thoroughly armed and equipped than at any previous period of the war; the energies of a whole nation, devoted to the single object of success in this war, have accomplished marvels, and many of our trials have, by a beneficent Providence, been con verted into blessings. The magnitude of the perils which we encountered have developed the true qnfilities and illustrated tilt heroic character of our people, thus gaining for the Confederacy from its birth a just appreciation from the other nations of the earth. The injuries resulting front theinterrup tion of foreign commerce have received compensa tion by the developments of our internal resources. Cannon crown our fortresses that were cast from the proceeds of mines opened and furnaces built during the war. Our mountain caves yield much of the nitre for the manufacture of powder and pro mise increase of product. Front our own foundries and laboratories, from our own armories and work shops, we derive, in a great measure, the warlike material, the ordnance and ordnance stores which • are expended so profusely in the numerous and desperate engagements that rapidly succeed each other. Cotton and woolen fabrics, shoes and harness, wagons and gun carriages, are produced in daily increasing quantities by the factories spring ing into existence. Our fields, no longer whitened by cotton that cannot be exported, are devoted to the production of cereals, and the growth of stock formerly purchased with the proceeds of cotton. In the homes of our noble and devoted women—with out whose sublime sacrifices oursuccess would have been impossible—the noise of the loom and the spin ningwheel may be heard throughout the land. • ith hearts swelling with gratitude, let us, then, join in returning thanks to God, and in beseeching the continuance of His protecting care over our cause, and the restoration of peace, with its mani fold blessings, to our beloved country. JEFFERSON DAVIS. RIC11310:CD, Jan. 12, 1563. The subjoined highly interesting and important papers, being the correspondence of the Confede rate authorities in Richmond with their diplomatic and financial agents abroad, have been recently in tercepted by our Government, and furnished to the Notional Intelligencer for publication. Their contents will be found not only curious but very instructive for the " South-side view" they give of the opera tions, plans, and prospects of the "Confederacy:" There are several columns of letters, (Wed as far back as September last, addressed by the lion. Ju dah P. Benjamin, the Confederate Secretary of State, to the diplomatie agents commissioned to re present " the Confederacy , ?, in Europe, and especially at the Courts of London and Paris. These commu nications give a view of political and military af fairs, as apprehended at Richmond at the several dates on which they were written. The report they make of "military operations" is equally remark able for the exaggerated statements with which the correspondence opens in regard to the Virginia campaign of the last summer and autumn, and for the tone of despondency with which it closes in view of the confessed failure attending the movements of Gen. Bragg in Kentucky. FBENCII DESIGNS•ON TEXAS But perhaps the most interesting portion of this diplomatic correspondence will be found in the ex position it makes respecting the supposed discovery of a political " intrigue tt believed to have been set on foot by a consular agent. of the French Govern ment, resident at Galveston, for'the purpose of de taching the State of Texas from the Southern Con federation. Grave reasons of-Stite aggrandizement, confirmed by historical traditions of French policy, and by present military operations in Mexico, are assigned by Mr. Benjamin as the probable motives which may have induced the French Emperor to countenance this plot against the integrity of the Confederate Government, if, indeed, it 'shall be found, as the Confederate Secretary fears, that the consular agent at Galveston has not acted without receiving his inspirations from the Government he represents. Dlr. Slidell, while cautioned to proceed circumspectly. is accordingly Instructed to give this matter a thoroush investigation, and arguments are furnished by which t he susceptibilities anti ambition of England may be played off against the probable schemes of the French Emperor. - Sat. The Emperor of the French has determined to conquer and hold Mexico as a colony, and is de sirous of interposing a weak power between his new colony and the Confederate States, in order that he nay Teel secure against any interference with his designs on Mexico. 2d. The French Government is desirous of se curing for itself an independent source of cotton sup ply to offset that possessed by Great Britain in India, and designs to effect this purpose by taking under its protection the State of Texas, which after being ac knowledged as an independent republic would, in its opinion, be, in effect, as dependent on France, and as subservient to French interests, as if a French colony. . . The suppositions of Mr. Benjamin as to the inten tions of France are summed up as follows : I have, in accordance with the instruCtiosis of the President, expelled both Mr. Theron and Mr. Ta ',Guile from the Confederacy, And 'have forbidden their return without the previous permission of the Government. I enclose you copies of the orders of expulsion, marked C and D. in endeavoring to account for such a course of action on the part of the French Government, I can only attribute-it to -one or both of the following causes: _ Mr. Ben 4 .7:nin to Mr. Slidell. 6.1 . • 'DEP AIiT3tENT OF STATE„. • RICHMOND, Bth Oetqbe; 1383. Eon. John Slidell, 4 - c., 4 - c., 4-c., Paris: Snc: 'Since writing my No, 7; of ilth 'and Mit in stants, I have received from tiiebandfnt.llrarearki (who arrived on the 25th instant) your No. 10 of 25th July, with its very interesting report of your inter views with the Emperor of the French and M. Thouvenel. I had previously received (on the 21st instant) your private letter of 18th September, for warded through Mr. Mason, this last having reached me in a shorter time than any communication hitherto had with Europe, and demonstrating the great value of the new means of intercourse now opened and which we hope to maintain. Mr. Ma son will explain to you the details of the new ar rangement, and your beet course will be to forward your future despatches through him. The voluminous contents of your despatch, and' that of Mr. Mason, have prevented their communi cation to the President, with whom I desire to con fer before answering you. The President is for the moment deeply engn,, , md in militaiy matters, and in endeavors to repair by new combinations the evils resulting from the failure of the Kentucky campaign, which has eventuated in none of the happy conse quences which we so confidently hoped. The only gain has been the capture of a very large amount of au 'plies. have no time to add anything by this conveyance, hut another opportunity will otter in a few days for .ft full despatch, " I am, very respectfully . , your obedient servant, J. P. BENJAIII.IN, Secretary of State. Arr. Benjamin to M. De Leon. • (No. 2.] •' " DEPARTMENT OP STATE, 1110E310mo, December 13, 1862. Sin : I avail myself of an unexpected opportunity to acknowledge receipt of ypUrs, Nos. 1 and 2. They have been read with lively interest, and you will not fail to keep the Department fully advised of your conchisions as to the probable action of European Powers, as fast as their views are developed, either through the.press or other agencies. The President has been so fully occupied with military matters that it . lias been- scarcely possible for me to confer with him at length on the:matters suggested by your . and he has just departed very sud denly for tour in the Southwest, where this pre sence was greatly needed to restore affhirsi and to impart renewed energy and activity to our military operations. ' On his return I will take measures to forward you additional means to.enablc you to extend the held of your operations, and to embrace, if possible, the press of central Europe in your campaign. -Austria and Prussia, as well as the smaller Germanic Powers, seem to require intelligence of the true con dition of our affhirs and of the nature of our struggle, and it is to be hoped you may find means to act with - .efficiency in moulding public opinion in those coun tries. The bearer of this goes in part to complete ar rangements for more prompt communication, and I hope that fro; the future my despatches will reach Europe more regularly and promptly. Your obeuient servant, J. P. BENJAMIN, Secretary of State. dti in de Leon, Esq., care of Hon. John Slidell, &c.iParis. ' • • Mr. Benjamin to Mr. Mason. [No; 7.] DEPARTMENT OF STATE, Pronmano, September 26, 1962. Hon. James M. Mason, 4T., 4T., London : . SIR : Since my No. 6, of 19th July, I have received three communications from you, (not numbered), all of.which arrived on the 26th August. 1 also re ceived a duplicate of your No. 11, of 16th May. I enclose you, for information, copy of a despatch sent:to Mr. Mann on the subject of a recent conven tion between the United States and • the King of Denmark relative to Africans captured from players at sea. It may be well to have an eye to the move ments of, the enemy in the disposal of slaves cap tured froni our people, and you will perceive by the instructions to Mr. Mann what are the President's viewa on this interesting matter. I must again request of you to have communicated to Mr.' Mann a copy of that part of this despatch which relates to the war and present state of the . country, as it is out of my power to write to him by this conveyance. I am,- sir, respectfully, your obedient servant, J. P. BENJAMIN, Secretary of State. Mr. Benjamin to Mr. Mason. [No. B.] DEFART3IENT OF STATE, RICIDIOND, Oct. 28, 1862. Hon. James 31. Mason, 4-e., 4 - c:, 4-c., London: au: The arrangements made by the bearer of de spatches 16 and 17, for facilitating intercourse be tween us, have been approved, and will be continued as long - as'successful. The details will be explained to you by the bearer of this despatch (Mr. George Sanders) in person. The subject of a loan, based on cotton certificates, has been fully considered, and you will receive here with a communication front the Secretary of the' Treasury, informing you of the conclusions reached by us afterMuelt deliberation. I communicated to the Secretary your tender of services in connection with this matter, and he requests me to express his thanks, and to solicit your aid and co-operation in any movements that may he made to secure success by Mr. Spence, to whom the Government has con fided the business, in consequence chiefly of your re commendation. Be had been appointed 'to take charge • of other negotiations before the receipt of your last despatches. The President desires me to express his'approval and satisfaction with your conduct, in assuming, • under the circumstances, the responsibility of malting the arrangements necessary for the success of Captain Sinclair in his arrangements for building a ship. • It is gratifying to perceive that you had, as was confidently anticipated, reviewed your impressions, and determined not to withdraw from London with- • out the previouthinstructions of thefresident Your . correspondenen.with Earl Russell shows with what scant courtesy you have been treated, and exhibits a Marked contrast between the conduct of the English and Pieneh statesmen, now in office, in their inter coursd with foreign agents eminentlidiscredit able to the foinner. It is lamentable that at this late period in the nineteenth century a nation so enlightened as ' Great Britain should have failed yet to discover that a principal cause of the dislike and' hatred towards -England *of which complaints are rife in her Parliament, and in her press, is the offbnsive arro gance of some of her public men. The contrast is striking between the-.polished Courtesy of M.r. Thouvenel and the rude incivility of Earl Russell. Your deteimination to submit to these annoyances in the service of•youfeountry, find - to overlook per sonal slights, while hope remainsthat your conti nued presence- in England may benefit our cause, cannot fail to meet the warm approval of your Go vernment. I refrain, however, from further com ment on the contents of your despatches till the at-• tentibn of the President (now concentrated on ef— forts to repair the ill effects of the failure of the. Kentucky campaign) can be directed to your corre-- spondence with Earl Russell. I am, sir. your obedient servant - J. P. BENJAMIN, Secretary of State. CORRESPONDENCE OF THE CONFEDERATE TREASURY AND NAVY DEPARTMENTS. Monininger to Mr. Alason. [Duplicate.] TREASURY DEFARTMENT 7 C. S. A., If • ICHMOND, Oct. 21, 1862. Ilon. J. N. Mason, Commissioner Confederate Slates, London: Sin: - The cotton certificate forwarded in your des patch to the Secretary of State has been carefully examined. and upon due consideration of the views expressed . by you, and the probable ability of the Government to furnish cotton, a form of certificate has been adopted somewhat. differing from 'yours. The differences are several : 1. In price, It has been deemed best to fix this at five pence sterling. This form of stating the price has been adopted in preference to cents, because it expresses the rate to be paid for the cotton here, in a currency which la understood to carry a right to its value in London. Thus, five pence sterling would imply a right to receive that amount in London; or so much of our currency as would be required to pur chase five pence sterling. At the present rate of ex change, this would amount to twenty-five cents. It is thought that this would not be too high a price to demand: 2. The cotton is made deliremble at certain ports, instead of any portst the option of the holder. This change is required by the fact that most of our cotton is at the Nest; and if a large portion should he re quited at an Atlantic Text, it would be impossible to perform the contract. It-is, therefore, proposed to issue separate certificates lOr the Gulf and Atlantic ports in such amounts as can be delivered at each. 3. The certificates are demandable only after peace, and within six months thereafter. it would be impossible to transport the cotton to any great amount until that period. To provide, however, for such cases AS might desire to run the blockade, it is proposed that for some premium, to be adjusted' by yourself, you should place in the contract an addi tional clause as follows, which you are authorized to 'add : "The Government further agrees to deliver the cotton called for in this certificate at any time during the pending war, at any port within its possession, (if practicable to transport the cotton to the port se lected,) upon the payment by the holder of the cost of transportation." 4. in case, by accident or otherwise, the holder should omit to make his demand within this period, the certificate is not forfeited, but the Government has the option to deliver the cotton, or return the amount paid. say one thousand dollars, with inter est at six per cent. from the issue of the certificate. 5. An additional formality is added in requiring your endorsement. This addition has been made to guard against capture or loss of the certificates on their way to Europe, and also to give an official su pervision there. ' I 'now send, by. Mr. G. N. Sanders, one thousand Certificates for the Gulf ports, and five hundred Tor the Atlantic. In order to have the payments put in proper form you had better deposit the certificates with our depositaries, Messrs. Fraser, Trenholm, & Co., at Liverpool, directing them to receive the Money and deposit the same to the credit of the Treasurer of the Confederate States. This will place matters in a business form, and relieve you of the necessity of keeping accounts. In order that you nifty act understandingly, per mit me to apprize you of such financial arrange ments.as have already been made. At your suggestion, I have appointed Mr. James Spence, of Liverpool, financial agent, and have re quested him to:negotiate for the sale of five millions dollars of our eight-percent. bonds, if he can realize fifty per eent. on them. I have already sent over two millions of the bonds, and will send another million in a week or ten days. Mr. Spence is di rected to confer with Messrs. Fraser, Trenholm, & Co., who had previously - been made our depositaries at Liverpool. Had I known with certainty where you were, 1 would also have referred him to you, and would thank you now to place yourself iwcor respondence with him. 1 have also directed Mr. Spence to endeavor to negotiate for the application of two" and a halrmil lions of coin, which I have here, for the purchase of supplies and munitions for our army. .I hope that this coin will be accepted by British houses in pay ment at the rate of sterling in England, less freight and insurance. It seems to me that, upon its trans fer to British owners, they could obtain transpor tation for it on-their vessels-of-war from any Con federate port, inasmuch as it would be bona fide British property, and, in any event, the holder of lig transfer would have a certain security. A difference has been made by our Congress in some of its appropriations for the navy. Those for building vessels are payable in bonds. it follows, therefore, that a discrimination must be bonds.. in the application of funds from the different sources of revenue, of which you will take notice. Under the act of Congress authorizing me to ac ceiit produce in exchange for bonds (of which I en close a copy), I have procured a considerableamount, which is stored on plantations or in warehouses. I send you a copy of one of, the certificates taken for the cotton: These certificates it is proposed to olhsr for sale in Europe. They would give to the pur chaser an Absolute right to the particular lot of cot ton, with the privilege. of shipping the same, and may be preferred by some purchasers. 7- In conclusion, allow me to request yOur. co-opera tibrr in these various plans, and any suggestions whiCh your experience and observation may deem proper. Respectfully,your obedient servant, C. G. IitEraiIIINGER, • Secretary of Treasury. An ad to authorize Me Exchange of Bond; for articles in kind, end the shipment, sale, or hypothecation of such orliciri. Svci: ON I. The Congress of the Confederate Males of Zmertca do enact, That the S ecretary of the Treasury be, and he is hereby, authorized to exchange the • bonds or stocks of the Confederate States for any :articles in kind which may be required for the use of the Government, the said articles to be valued ac cording to such regulations as the said Secretary - • shall make. Section 2. It shall be the duty of the Commissary and Quartermaster Generals to direct their various officers to receive, at the place of purchase, all 'such articles purchased as are applicable to their several .deparimente, and to apply the same in the' same wanner as if purchased directly by themseliei; and the eiticer to whom - each article is delivered shall be charged with the value as declared by the purchase, and shall be bound to account for the same. . • Sec. 3. The said Secretary b also authorized 'to accept, for the use of the Government, in exchange for the said bonds or stock, cotton, tobacco, and other agricultural products in kind, which have been subscribed to the produce loan, or which may be subscribed in kind, at such rates as may be ad justed' between the parties and the agents of the Government. Provided, That in no event shall he receive of cotton or tobacco.a greater value than thirty-five millions of dollars ; and the said Secre tary is further authorized to deposit the same at such places as he shall 'deem proper, and to procure advances thereon by hypothecation, or to ship the same abroad, or to sell the same at home or abroad as he may deem best ; and to assist these operations the said Secretary may issue produce certificates, which shall entitle the party to whom issued, or his endorsee, to receive the produce therci n set forth, and to ship the same to any neutral port in confor nifty with the laws of the Confederate States. Sec. 4: The Secretary of the Treasury may, from time to time, appoint and dismiss such agents as he may deem requisite to carry into died the provi sions of this act. Their compensation shall be a brokerage upon the business completed by them, at such rates as the Secretary . , Of the Treasury shall adjust by general regulation. Sec. ff...• The Secretary of the Treasury may, from time to time issue regulations for carrying out all the details involved in the 'provisions of this act, which shall be obligatory upon all parties concerned therein. Approved April 21, 1862. Confederate Slates of America. $l,OOO nom). Cotton Certificate. No. This is to certify-, that ---, of -, i 8 the pro prietor of twenty bales of cotton, of 10,000 lb. weight, rating New Orleans middling at live pence sterling, which shall be delivered by the Government of the Confederate States of America to -, or order,' at the port of Charleston or Savannah, subject only to charges for compressing, putting on board ship, and existing Government dues, the latter not ex ceeding one-eighth of bne cent per lb. • The cotton will be delivered as soon as demanded by the holder of this certificate, upon the Govern ment receiving thirty days , notice of such demand. The demand must be made within the six months af ter the declaration of peace between the present bel ligerents iu America ; in default of a demand within that period, this certificate may be discharged by payment of one thousand dollars, with interest at the rate of six percent. per annum, from the date of issue endorsed hereon. This certificate will confer no right until verified and endorsed by the Commissioner of the Confede- rate States in Great Britain. In testimony whereof, the Register of the Trea sury bath hereunto affixed his name and the seal of the Treasury Department at Richmond, this first day of November, 1862. -, Register of Treasury. Copy of "Produce Ccri (florae." [Here enter the weight of the bales only, and their marks.] 42 bales good ordinary cotton, marked C. S. A., and 16 bales middling cotton, same mark. 461 463 456 6'7 bales. Aggregate 437 615 515 weight 26,218, at 8% . ...522,- 442 486 . 600 94.07. 462 95S 488 Stale of Mississippi: 428 . 490 461 County of Madison. 505 479 490 Town, or Pot Office, Canton.. 358 465 422 The undersigned having 508 460 988 sold to the Confedetate 451 442 451 States of America, and re -443 423 458 ceived the value of same i n 938 967 450 bonds, the receipt whereof 457 468 465 is hereby acknowledged, 57 476 478 . 951 bales of cotton, marked, 443 461 483 numbered, and classed as 440 437 461 in the margin, which are 995 432 now deposited at his plan -466 - 466 6,996 tation in said county, here -443 453 lbs. mid. by agrees to take due care 464 453 of said cotton while on his plantation, and to deliver '453 9,685 the same at his own ex -458 9,538 pence, at Canton, nn the N. 0. I. &G. N. Railroad, 9,538 19,223 lbs. in the State okMississippl, good ord. to the order of the Secre tary of the Treasury, or his i 'agents, or their assigns. THOS. G. SMITH. CAA-Tax, August 6, 1862. The undersigned, as agent of the Government. certifies that the within cotton has been examined by him, and that its character will rank according to the commercial scale as middling and good ordinary, and also that the weights and marks are as de scribed—the cotton being in good merchantable or der, and safely stored in a covered building. The undersigned certifies that the price agreed upon is a fair market price at the present time. WILL. G. BAILEY. CONFEDERATE STATES OF AMERIOA ) Treasury Department, 156-. This is to certify that the within and above de scribed cotton has been sold to - -, and-de livery is hereby ordered to be made to him, or his order, with license to export the same from the Con federate States to any neutral port, on complying with the , requisitions of tire law. Given under my hand and the seal of the Treasury Department, on the year and day above mentioned. Secretary of Treasury. Mr. Mallory to Mr. Mason. (Duplicate.] CONFEDEITATE STATES OF ANSYMAt Navy Department, Richmond, Oct. 26, 1862. SFR : Your letter Of the 18th ultimo reached me a few days ago. ,Without your advice and effectual assistance the enterprise for which Lieut. Sinclair has been selected must have been indefinitely de ferred, and you have, my cordial thanks for your action therein. Your stipulations in behalf of this. department are fully endorsed, and will be promptly fulfilled. The Treasury has under consideration your sug gestions as to cotton bonds, and Mr. Benjamin will advise you of the modifications of the form trans mitted by you which Air. hlemminger deemeneces- SW'S. The speedy completion and departure of Mr. Sin clair's work 1 regard of so much importance that-I mustinvoke your further aid, should he require it, to enable him to raise funds for the purpose of which rI have advised him and the repetition of which here I deem inexpedient. The courier who brought your despatches found a means of communication whose safety justifies their further use, and Mr. Benjamin will probably ad vise you thereof. The completion of the contract of this gentleman will place a peculiar class of ships, never before construct upon the sea in our-ser vice, and I shall repn et the Treasury Department shall fail to make such arrangement as will enable him to aceomplish this important enterprise. . I have the honor to be, very respectfully, • Your obedient servant, S. R. 'MALLORY Secretary of the Navy. Hon. AMES MAsox,Commissioner. &.c., No. 51 - Devonshire street, Portland Place, London. it seems that s previous to the departure of Mr. Geo. N. Sanders for Europe, certain legislation of the Confederate .Congress which had been proposed in the matter of contracting for the constructiomof." iton-elad ships in Europe, encountered the opposi— tion of that gentleman. The following memoran dum from him on the subject is found among the in tercepted papers. Addressed to "Reid Sanders," it was probably placed by the latter in the hands-of: Mr. Memminger or Mr. Mallory, respectively the- Secretaries of the Confederate Treasury and Navy : RICHmoNn, August 5, 1862. • Any legislation in regard to the construction of Iron clad steamers until lime is given me toget mine under way will be very unjust.- My detention here was necessary to the perfection of the contracts, which took much time and reflection. Tire final in structions of 111. e Navy Department have been is sued but a few days. Bunglers entering the Euro pean market might endanger the entire scheme.. Great skill and diplomacy must be exercised to avoid the interference of European Governments. No one isentitied to my suggestions until full time is given me to carry them out. GEORGE N. SANDERS. To REID SANDERS. To thin is added by Sanders the following list of names, consisting. of persons ,connected with the Confederate Administration and Congress. Several. of the names, it will be seen, have a cross prefixed , ,to them, intimating probably that they already fa— voted his views, or needed to be still furtherap-. proached on the subject. This supposition is, how-- 'ever, purely conjectural on our part. This list is as= follows, in G. N. Sanders , handwriting : Bre:.4dent Davis, Secretary Mallory, Vice President Stevens, P. M. G. Regan, {Simms, . tßreekinridge, Boyce, Burnett, {Conrad, {Garnett, Hunter, Elliott, Miles, Henry, {Head . Wright, Tenn., tßrown, Mies., Matc ien, 'Laskin, tOrr,Bruce, Lyons, Johnson, Cooke, tFoote, 'Wigan, tß9coek, tPugh, tOlarke. The following unsigned letter is also found among; the captured papers : The Eon. S. R. 3lallory, Seerrlary of the Nary: SIR:. As I contemplate leaving here without loss. of time for Europe, for the purpose of rendering ina, portant and valuable service to the Confederacy, I deem it proper to recommend to you the necessity of: my having the co-operation of Commodore Forrest in the plans which have been suggested to you. He is an official of experience, and well qualifled•to,lenth important assistance, which may reault in the com plete realization of my hopes and exctations.;:in-• deed, if Commander Sinclair could also accompany, me, or be sent out to give his attention to matters. connected with the plans I have in contemplation, I ant satisfied - that with the professional knowledge•or these gentlemen we cannot fail to subserve- our in, teresfs, and renderhigh and important serviee to our: cause, both in superintending and constructing. the vessels built to cut up the enemy's commerce.. 1 have• the honor. The following memorandum appears to,be•in. the same hindwriting with the above letter, ihough, moth disguised or very carelessly written Gabreath & Co., of Scotland, and W. S., Lindsay.CO, of London, are the houses with. whom. I. had the negotiation about the steamers.. I rewnst Captain Sinclair, of the Confederate navy,. to.make all preliminary arrangement for the contract tut my return. (See him first), he will meet you:in.Lon— don. George Thompson & Co., Glasgow, will , make proposals for the construction of at leastone steam cr. They have the drawing and estimates compLete. Lindsay & Co. will negotiate the nasal store onds. B. Rice & Co. may undertakeenough:`o.load one essel (Nova Scotia) with shoes and clothing under the North Carolina contract. Turpentine LOO.should bring per gallon $2, rosin should brillXV. CONPEDEIZATE STA.TE-. 44 NAVY DEPAIVI'MENT, Bien Oet..V, 1S&. Ikn. C. G. Memmingeni Sccrctary of the 'lirecAtory: Sin : I have the honor to call your atbention to the copy of the secret joint resolution of Congress, which was sent you on Saturday, anatosomuch of my recommendation to Congress upon the subject of the act as shows the basis upea whieh it was parsed, a copy of which was also seat you on Satur day. • Under this authority, contracts linve been made with Blr. George N. Sanders. ty, thia Department, for Fix ships, to be paid for in cotton, a copy of which contract is herewith enclosed. Mr. Sanders informs me that if the Government will fix the price of the cotton to he delivered, he can execute ais contract, and not otherwise, and deeming the ships important to the public interest., I suggest for your consideration the expediency of stating the price, and of pursuing, with reference to payment in cotton for the.seshipa, the course you, have adopted with regard to the cotton bonds. I am, respectfully, vour obedient servant, S. if. DIALL . O.IIY; Secretary of the Navy, 31r. Memmisger to .31r. Mallory. Cox FEDER:WI: STATES OP AM ERIeA, TREASURY Dnrtr,'ltscnmaxo, Oct. 304,. ISat. Six: I approve the suggestion made by you of making your contract for building iron-clad vessels in Europe conform to the arrangements of the cot ton certificates sent to the Hon. J. M. Mason. I enclose a form of each of these certificates. Upon the meeting of Congress an appropriation must be made to meet your contracts, and the terms can then be altered so as to conform the mode of pay ment to the cotton certificates, fixing a price for the cotton; and providing for the delivery at any pott upon adding the charges of transportation. The only limit to these combined operations will be the quantity of cotton which the Government can pur chase, which I hope will be found ample. ' lt cspectfully, -your obedient servant, C. G. AIIittiIAIINGER, Secretary of the Treasury. [The "cotton certificates" enclosed In the forego ing letter are the same as those pritttett above:]. THREE CENTS. Mr. Mallory to Mr. Mason CONFEDERATE STATES OF AMERICA, NAVY DEFT, RICHMOND, Oct. 30, 1861 Hon. James M. Mason, Commissioner of the Confederate States to Great Britain, London: Sin : Mr. Sanders has, as you are aware, contract. ed with this Department for the construction in Eng land of six iron•elad steamers, combining the capa cities of the freighting and the, fighting ships, in a manner Which will enable them to force the block ade of our ports. The interests of the country will be much benefit ed by the prompt construction of these vessels, and I beg leave to invoke your interest, not only in be half of our enterprises already in progress, but in behalf of this also. The Secretary of the .Treasury has this day ad ds essed to inc » note upon the subject of the cotton to be delivered in liquidation of these contracts, and I enclose herewith a copy. 1 have the honor to be, very respectfully, your obedient servant, S. D. MALLORY, Secretary - of the Navy. [Duplicate.] ThEASURY DEPAILTMENT, C. S. A., RICHMOND, October 21, ISG2. Messrs. Fraser, 'Nettle°lm, 4- Co., Liverpool, G. B.: GENTLEMEN : The enclosed letter to Mr. James Spence is sent to you for your guidance and con sideration. Respectfully, your obedient servant, C. 0-. MEMMINGER, Secretary of Treasury. Mr. Memminger to Mr. Spe h ce (Duplicate.] CONFEDERATE STATESiI OP AMERICA, Tn eAsurtr DEPARTMENT, RICHMOND, Oct. 21, 18G2. James Spence, Esq., Liverpool, G. 13.: Sir.: As you have been appointed financial agent for the Confederate, States, and Messrs. Fraser, Trenhohn, & Co., are its depositaries under our law, I desire that you would confer together on the mat ter submitted by this letter. I have on hand gold and silver coin, (chiefly the former), two and a half millions of which I desire to apply in payment of articles purchased in England by our agents for the use of the Confederate Go vernment. We find it impossible to purchase a suffi cient amount of exchange for these purposes, and the small amount to be had is at such high rates that it would he desirable to furnish a substttute. propose to make payment for purchases by a transfer to the creditor of so much of this coin as may be re quisite. I presume that when the coin thus becomes bona fide the property of a British subject, that the British Government would, at his instance, permit any of its vessels to bring over the same for him. If this expectation be realized the coin here would be as valuable as exchange, and in England would probably realize itsmint value, less freight and in surance. To enable you to carry out any arrangements you may deem advisable, Mews. Fraser, Trenholm, Co. are authorized to make an absolute transfer of the coin, or to draw bills for the same on E. 0. El more, Esq., treasury, payable here, and a copy of this letter is sent to each of you that you may act in concert, and give us the benefit of your united counsel. • I am remitting, by opportunities as they occur, the bonds of the Confederate States, the proceeds of which, when sold, are intended to be applied to the contracts, of which you have been advised. Respectfully, your obedient servant, C. G. MEMMINGER, Secretary of Treasury. fitr. filemminger to Messrs. Fraser, Trenholm 4- Co. [Duplicate.) Tut:Astra - DEPARTMENT C. S. A., - 13 tot MOND, October 24, 1862. Messrs. Fraser, Trenhoim, 4- Co., Liverpool, G. B.: DR Slits : Your letter of July 21st is just re ceived, advising sales per " Economist." and balan ces to the credit of the Confederate States of £7,121 19s. 11d., and £32285. 9d. All these credits, with all o her remittances from this department, you will place to the credit of the treasurer of the Con federate States, subject to his draft. The course of business at the treasury is to draw on the deposi taries in favor of third parties. When these parties are creditors, the payment of them being vouched ends the matter. When the third party is merely a disbursing officer of the Government, the effect of the treasurer's draft on the depositary is to transfer the amount to the credit of the disbursing officer, on which he may check at pleasure he baying to ac count at the treasury for the tvhde amount. So, too, when bills of exchange, or any other re mittances, are forwarded to you by the Secretary of the Navy or of War, they are not to be credited to the Treasurer, but to the officers, directed to such secretaries, and your account must be rendered to them, and not to this Department. At, the suggestion of our minister in Englandy I propose to issue cotton certificates, of which I send• you a specimen. When countersigned by him, he• will deliver them to you to receive the money to be' paid for them. You will take care that the date in the endorsement corresponds with the date of recei ving the Money. The proceeds will be deposited to the credit or the Treasurer, and it. is important that I should be advised of any sales as promptly as possi ble. In regard to the payment of the £60,000 mentioned in your letter of July 21st, to Captain Caleb Huse, I am unable to speak definitely, until I can get sun dry details, of which I will advise you in another letter. Respectfully, your obedient servant, C. G. lIEMIIIINGER, Secretary of Treasury. [The cotton certificates enclosed are the same as those quoted above.] Ni. Alemminger to Metell. Fraser, Trenholm, 4- CO. TREASURY DEPAPTMENT ! C. S. A., Bieumosu, October 28, 1862. Messrs. Fraser, Trenholm, 4. Co., Liverpool, G. B. DEAR Sins : You will please extend a credit to Major J. B. Ferguson to the extent of live hundred thousand dollars, and give him any assistance in your now er to make his purchases for the Confede rate States. . I have already informed you and Mr. Spence that I have on hand two and a half millions of dollars in coin, upon which drafts can be made, or which you are authorized to transfer to any parties who may 'tarnish the means to make our purchases. This fund, or any amounts which may be realized upon our bonds, will, I trust, enable you to meet the credit herein extended to Major Ferguson, In addition to that heretofore given. Respectfully, your obedient servant, C. G. MEMIIIINGEH, . - Secretary of Treasury. Mr. St. John to Mr. Smith. CONFLIDERATE STATES OF AMERICA, WARDETART.IIENT, NITRE AND MINING BUREA.I7, Rieirmoxn, October 28. 1862. Sin :. The undersigned, for, and on behalf of, the Confederate States of America, will receive from you shipments of nitre, to be delivered within the limits of said Confederate States, and not to exceed one thousand tons, upon the following terms and rates of payment: Vst. For nitre delivered at any Confederate port east of the Mississippi river seventy-fire (75) cents pc r pound, of ninety per cent. purity, if delivered on or before March 1, 1863. 2d. For nitre delivered as above, but after March 1, 1863, sissy cents per pound, of ninety per cent. purity. 3d. For all nitre delivered as above, at Confede rate ports between the Mississippi and Rio Grande rivers, fifty eents per pound, of ninety per cent. purity. It is to be distinctly understood, in connection with the above stipulation, that all payments thus due are to be made and received in the treasury notes of the Confederate States, or, if preferred, in their bonds, and that the inspection of a duly accre dited otfloer from this Bureau shall be final as to the quality of the nitre received, and that inferior gush ties, under ninety per cent. purity, shall be paid for at a pro rata valuation. J. hf. ' ST. JOIN, Major and Sup: C. S. Nitre and Mining Bureau. Approved: J. Gorto..ts, Colonel and Chief Ordnance. _ _ 111 r. WM. li. smith, London, England. [With the above letter were enclosed clippings from the Richmond papers relating to the war.] Intercepted Correspondence of the London Times. W_kSIIINGTON, January 18, 1883 The following letter, written by Daniel H. Lon don,faiied to find its way to the London limes. By some means, not explained, it was recently received in Washington. Perhaps its contents, now originally Published, may be as interesting to the people of the Dnited.9tates as if it had been extracted from the London Times: CONFEDERATE STATES OF ANIEiIICA, RICHMOND, Va.,November, 1862. For The Times: Within a few weeks, there has been published in this-oity, the followin g , ' letter from a Federal mail bag captured by Confederate pickets in the neighbor hood of Charlestown i Virginia, which is not far away from Harper's T erry. Its genuineness is not questioned. Its author is nephew to Mr. Lincoln's Secretary of State. NEAR CHARLESTOWN, Va., October 19, ISO. DEAR UNCLE : I got here from the Ferry yester day. afternoon. I have not time to write you but a few lines now, but will write more fully in a day or two.. I send you half a dozen copies of various of the . Richmond papers, captured by some of our cavalry last night. By reading them, you will see that the rebels are not yet fully convinced that they have not - been routed in Kentucky ! The Whig's editorial says it 1/ever expected success there while the rebel army was under such incompetent generals! And the Ex aminer is still in a state of painful anxiety about the battle of Perryville! Itiseems they have received despatches from Gen. Forrest, and numerous other Southern sources, tell ing of their victory;' but Bragg's official report has not been received, and they have seen the Federal papers, and as these do not adroit a defeat to the Union army, the Southerners really doubt whether any has oceurred ! Is not this another evidence of the wisdom of yeur policy in regard to the Northern pressl Gen. Scott was right in saying that falsification wag a necessary part of the machinery of war. In this war it is a powerful aid, as the Southern .press republish and seem .to credit so much of what we choose to give to our papers. Push your policy as to the press still further. Make them state every tight a glorious victory, and Vire fo it. It will do great good .North and 'South. No time for more now. Bob Verplank is here, and well. Very affectionately, your/nephew, 'WILLIAM H. VANPEIT. Hon. Wm. H. SEwiato. [NOTE IST THE AGENT OW THE Aft.SOCI ATM - ) Prts:A.s. —This letter has heretofore been denounced as a for , - . gery, by those who ought to know.] When Mr. Welles, the tsectrstary of the Navy, was applauding the United .States officer for the out,-_ rage commitett on the British firtg, by the capture of. Mason and Slidell, and splint:ring the transaction, this Secretary of State was:disavowing and reptutia, Ling it through Mr. Adarne,.utinister of the United States in London. Mr. Lincoln was the criminal who spoke falsely, since both statements were his Own, as what the Presiderttnioes through his minis tors he does hiruselr, andrudeb the success litual to a. ktpocrite he secured the eontempt of all honest minds.. During the great, - oattles around Richmond ; McClellan Eeuttrue despatches to Washington city of his disasters. The puhlished ones wore ananufac lured in the office of the Secretary oft. War. This statement I hear wasmade by Judge Bates, Attor ney General for the railed Staten, to. his. two. nephews who are in tt're Confederate nrcuy, and were taken prisoners, canned to Washinven, and,while there stayed with. Judge gates- A.nditkOw General, McClellan has too little manhood '..o.sxliose ar.d de nounce the falsehoods practised ir4lris name. Lost to every sense ef, shame, he is wilting to sew:emits-. tees forpay, the.!, themselves are* companions.only for the base and depraved; bu.>eren. head of the army no longer. Lehitt.mastora.tell the reasons I could not credit valet I situ/alluded:too so often, as one of the mean sot conduating onoof the moat iaiqu itiOna and ou trageaus contests. recoarid iu modern times, until I had. the moshpositiv.poei dcnce that falsehood—yes, falsehood persisltabio-- was one of the reliancesorthe United:Statesk the purpose of continuing thair struggle. agairtst the' Confederate States.- The above statements will prepare the. 'way for another letter, in which the outrage Ls Dana. revolt ing than say of which the Austrian Ilkynau could 'boast. Savages; eves 4 could nob excel The deseera bon which is brought to thellOt in the following narrative. The cowardly liar is always cruel to those in his power, and weeks matteinate the exhi bition of one rice by existence of the other; but there are some crimes so revolting, that we Vituhler to hear of them. This letter tells of such. [Here is appended the following letter, headed laniree outrages to Louisiana," and published in tic Raleigh Ciitorh InteAtsiencrr. It is a private docu ment, and written by a lady living on a Mississippi .. river plantation in the Southwest.] , ELKus imp.,`/Luguit We have had the pleasure of greeting the stare and bars „ at the head of more than one steanitzat. timing the past week. As we now hold the river THE WAR PRESS. iPUBLISHED WEEKLY.) Tin Was Pane will be sent to subscribers by mall (per annum In advance) at 52.00 Five " " 9.1)0 Ten 17.00 Twenty Copies " 111, 34.00 Larger Clubs than Twenty will Ye charged at tin same rate, si.ao per copy. The money ?mat always accompanit the order. aryl in no instance can theee fermi be deejated from. as thv afford very little more than the coet of the payer. 474- Poetrnaetere are requested to act as Agents for TAR WAR PREIS& air To tho getter-up of a Club of ten or twenty, as extra copy of the Paper will be given. above at Vicksburg, and below at Port Hudson, our boats are venturing out of their hiding places, and are beginning to carry provisions from the Red river and Texas to the upper country. I do not think the Federals will ever again control the Mississippi, as they have done; though they may harass us, the border planters, by unexpected raids and sudden surprises, as they did at Milliken's Bend. We have forces a short distance from the river; but the Federals may Make sharp, sudden, devastating forays, if one of our sentinels should be caught asleep again. Par exmpir, at Milliken's bend they took prisoner an acquaint ance of ours, a Mr. John Parker, put a pair of hand euffh on him and took him off with them. Time and language would fail me if I attempted to give you an account of all that we hear of their outrages in New Orleans and the adjoining country. Don't be lieve Butler's lies about Union sentiments," and loyal citizens there. If there is a place where the Federals are most detested it is here in Louisiana. In New Orleans the ladies never go out of their houses if they can help it, and then armed, as in all parts of the State exposed to their inroads women are. I believe lam the only woman in this part of the State who has not arms and does not know how to - use them, and I think 1 could shoot too on an emergency, only I have such a distaste to weapons that I. think 1 would rather be killed than to kill anybody. I would not shoot in defence of life. but I would of honor. The other day, when the Federals made their raid, at the house of one of my relatives a young girl was sick, just recovering from billious fever. The other young lady of the same age, a widow of one week, seized a revolver and stationed herself at the chamber-door of her sick relative, determined to shoot down the first soldier who dared to approach the room. Fortunately, the officers showed hu manity enough to prevent any outrages, but a faithful servant came to the young ladies' parent after the Federate had left,'and entreated her " not to expose her young mistress ever again where the Yankees were, as,'' she said "the soldiers talked so dreadfully about the young ladies." At another house of a relative of mine the first question these wretches asked was if " there were any marriageable daughters?" In that house there are two. After the battle of Baton Rouge a Federal trans port, laden with 250 wounded, was run into, acci dentally, by one of their own boats and sunk, carry ing all on board to the bottom of the river. The Fe devils pretended to believe that it was not a colli sion, but shot from guerillas which had produced the disaster. Landing at - the coast, they proceeded to de vastate and destroy the property near the place. They entered the house of Mr. a gentle man of one of the oldest and most respected families in the State, a brother of —, one of our senators. Mrs. was ill—had an infant of one day's age lying by her side. In her room was a maid-servant in attendance upon her mistress. My pen almost fails me. I can scarcely find language delicate enough for the scenes that followed. They indulged in every outrage towards the maid-servant, regardless of Mrs. ----'s piteous entreaties to them to spare her servant and leave her chamber. They threatened Mrs. with insult i f she did not hold her tongue. God, thou rawest all this! Mr. came in, and, finding his wife thus exposed to inso lence and out? age, his proud heart so swelled with in dignation that the chords of life literally snapped— his heart broke, and he fell dead upon the floor. "Oh, Lord, bow long 7 how long?" The dreadful effect of their barbarity quieted these devils fqr a time, but they soon returned. The servanta had picked up their master's body and laid it out decently. The Federals robbed the house of silver, jewelry, and all valuables, and then went off to their boats. Another instance of savagery on the part of Butler. A friend of ours, in the last stages of con sumption, was carried from New Orleans to Fort Jackson, in spite of the entreaties of hie poor wife that he might be permitted to die in peace, as his hours were numbered. The FederOr sent him off. Of course, the fatigue and anxiety soon put out the g . limmering lamp of life. His only crime was being a becessionist, and the son-in-law of a former Con federate general. Ali, well ! There will come a day of retribution for all this. During the Federal occupation of the portions of Virginia between the Rappahannock river and Washington city, large numbers of slaves, men, women, and children, are enticed away from their owners into the encampments of the Northern army. When the Federal encampments were broken up, and their armies retired, hundreds of negro children, girls and, boys, of all ages, were left in- the woods, totally unprotected and alone, to perish or fall a prey to animals, and many did perish' and die: their fathers and mothers forced away, or so neglected and overlooked in the confusion of the retreat, as to be disqualified or prevented from caring for their own off. spring. The negroes who have been enabled to make their way back to their owners report the'hardships through which they have passed as far beyond any thing before known to them. The credulity and submissiveness of the negro is as much a part of his nature as the color of his skin. Incapacity amongst the slaves for taking good care of them is so general that the most sedulous attention and watchfulness on the part of their owners is necessary to keep them healthy and decent in their appearance: As to using them for soldiers, as the: United States Go vernment proposes, it is simply absurd; they may make them robbers,•thieves or assassins, but never good soldiers. The proposal to emancipate the slaves of the people of the Confederate States is placing a purpose far in advance of an event, the occurrence of which ismore than doubted, as it can only be done after the conquest and subju gation of the whole country, and the ability of the Northern States to accomplish this- may well be queationed,.as the following facta and considerations will demonstrate:When the secession of the :Staten or nations now constituting the Confederate States of America began by the secession of. South Caro lina on the 20th of December, MO, every fort and arsenal in any of those States was held by the then United States. The Confederates now hold Fort Morgan, at Mobile ; Fort Sumpter and the fortifica tions at Charleston, and the fort at Wilmington. cer tainly three less than were held by the United-States at the outset of the secession. The Confederates had no army when' they organ ized their Provisional Government at Montgomery. They have now under arms one large enough to have resisted—indeed, to have overthrown—that army which Lord Palmerston told the English. Parliament officially, in his own proper place, as being the autho rized statement of the minister of the se-called United States, numbered, if my memory is correct, about seven hundred thousand men, all placed and ready for active service. lam unable to • state the number of the Confederate army. It has been a part of their policy. to conceal their. numbers. The following statistical tables will disclose their re sources in this particular : Proportion of population out of one million men : Under IS years old 313,Sst; Between IS and 35 years old 'WA'S tt t y 447 Between 35 and 45 years old Between 4 5 and n) years old Between 55 and lOU yea re old 1417,43 Total I 00%003 Legitimate free Confederate population by census of 1E60: 5,602,4G02 Deduct free uerroes as is IMO. probtibly not in .:235AVf creased materially ou account of emigration, S,Mi,S9I :Not iuclnding Knumi which hi doubtful 4,L53,445 Deduct one lutlf for women. 4,15,g6 Say in round numbers, as women are more nume rous, probably, 4,000,000, and for that number our table would stand as follows Under IS years old Between I,S and :15 years old. Between 55 and 45 years old.. Between 45 and 55 years old. Between .):5 and 1(0 years old 4,orattal Showing 1,581.188 within the age capable of:bearing arms. The Federal newspapers represent they/lum bers of the army.of the Confederates as 648.000 men. The conscription in April took all between Id and aa years old, exempting, of course, certain persons. In Iletober a further authority was conferred-on the i Government to extend the conscription to all be tween 35 and 45 years old, which act has not been resorted to for any beyond forty years old, and the plain inference is because the men are not wanted. There must be. deducted 'from the numbers esti , mated above of 1,551,188, all who escaped from the conscription. in. Maryland, . Delaware. Kentucky, Missouri, and. elsewhere, now occupied by the enemy. There must be added all in the army as volunteers below 18 years and over 45. In the outset the Confederates had no arms; they now have, certainly a very' large number of all kinds. Between the adjournment of Congress, in May, 1862, and. its reassembling, the Ist August, there were. added eif,hly thousand small arms alone; this is official. Since that period, there is to be ad ded. all taken in the battles between the Rapidan and - Washington. and those surrendered at Harper's Ferry, which was the most valuable and brilliant occurrence of_ the war; as the fruits were eleven thousand prisoners, seventy pieces of artillery, and quite as many muskets aethere were men, and many more. To these there must be added the vast num ber whichare made inathe Confederate. States. In this respect, there has,been developed a. capacity which is • surprising, in: every department every thing needed by our army • but a further addition is to. be. made of the arms • army; at Richmond, Ky., .and. at Munfordsville, besides several cargoes im ported. from abroad. It may be satelyvatated that there ie now-no uneasiness felts as to the sapply of arms of all kinds. 'Whatever number of: iirms may have-been lost by the. Confederates imbattie must be.deducted, but that number was so small:es not to be felt, and. cannot be ascertained. Ammunition was-so-scarce-at one.period as to create.eotious con cern. That has been overcome, since th.e.Secretary of War stated toGongrees in August, that altre was being produced.in. such:quantities as to justify the opinion. that soon, there would be ncianaaesslty for further importattonsof that article. Alitthe other necessary articles for ammunition, 1311411. fie charcoal, sulphur, lead, iron. copper, &.e., are-produced in quantities sufficient for all purposes. Clothing is being produced in, quantities sufficient' to meet the necessities of t he army, although thezargoes coming in. are.valuable assistants in this respect-. But at no distant day every actual necessary will be made by the people. True, .many articled are very high in price, hut when : so sudden and extsaaive demand is to be met by labor hitherto devoted :mother pursuits, *afire in no way-Jo wonder at the.prises which par ticular articles : command at certain places ,• for in stance, heavy gray cloths for the, army. 'Yet the pricesere not., such as to prevent, their use. The quantity. is being increased so rapidly as to relieve ail fears on the. score of supply. In: food and sub sistence, nothingis further off thetas famine in the Confederate States. Salt is now made in large quantities at many points, and/ , •..be quantity will soon be ample for all demands. I come now to sefer to the finances.. In the outset there was no revenue. Let us.. sat the facts and the foundation walla which the credit of the Confederate 0 overrtment. reats. Their reaeltats from the com mencement- have been more than three hundred willful:is of dollars, by the repart of the Secretary of the Treasury., and the entire disbursements esti mated for un to January. 1.34.3, will be about fire hundred millions of dollars-.leaving a debt of not. more than that sum for all accounts. Since this_ Ellyn is to be credited by tha incomes from the war., tax and the customs, anilfor sales of the public prat, perty, oflands,aSic. ' whit will more than cotintee balance any variations..hy underestimates. Neu% to corer.lbis debt, and ta.enahte the people to pay . the taxes necessary ta.meet the interest and tn.h quidate the principal,. there is in the Confedeaste Mates certainly Aiwa ad/hens of bales of coon. The fiso crops of tobacco must be somethleg be ta eery fifty and one. hunched thousand hogaesids, besides pitch, tar, aalturpentine. Taking all ,these articles at their Rsseat values in .Litaarpool, the quantities now i. the Confederate States would bring more than ten hundred iailions of dollars. Y(Xin Desiders can very soca, make their calculatioas as to the value of a Co-leder:tie bsiad, when they . , stmeotton at 2a. 3d. the pond. and learn that these, re .450 to 500 pounds in aaketi bale, and that the geople and the Government hold, cer tainly, four „nilljeas of bales, and probaliby,fiee mil lions. Out of; this enormous capital, ',be interest needed to pat the public creditors is imairiore than, eight millisans of dollars at this time, es the bonded dcbt was tesathan one hundred milliCs Ist of Au gust, ant, cannot reach more than tw e ihundred and ty minions by Ist of January, iaM„ as a large part of the debt must continue in Tawas . notes,. re . deemableisix months after the treaay. of peace, with- . out in/Imin/, being necessary for ttracircuMtionaf the coualary: • you will ask - how such an army haa' been supported for, to small a sum's. There is tint fief, lem s - Vey of the highest praise, - allich will acaourit for a Ineary amount. A very 1 r ye part of the 'army *53 sent into the field alreriea; equipped, by the gene 'rs.sity of the people. I.:Fon application at Bit office charged, with the. exchange of . prisoners between the Confederate. Government and the 'Called States. I was unable to obtain exact data, but I feel justified . in theatatemant that there havebeen gielivered froia the Confedera„tes, snore than fifty thousand prisoners of war;and that a clear balance upon this account exista in favor of the Confederate States, after deducting the.pera of,their own, which the 'United States Qevernment her returned, of at least twenty-five thousand tenets. The officers are numerous, mid far apart, aLd the account: is so constantly changing, that an estimate .only can be made of the balance ; hut I . b..arg Seen the number -against the Got'ern.r,ent of the 'United Staten stated as high as fgrty thOliatiad. 1,2 1 5,1.t2 LOikki:o2 ? • .... :)15,417.6 1,r41.33 452,70 a) 47.1.12,0