minister to the emancipation proclamation of the President. I do not believe it to represent the feeling either of the government or the nation. The speech, so far as it related to the United States, was a consummate work of art, and suggests the oration which the great dramatist has imagined for Mark Anthony, arousing the citizens of Rome to fury over the dead body of Cæsar. There is the same elaborate deprecation of hostile feeling, the same subtle and successful fanning of flames of hatred in his hearers, under pretence of cooling a popular frenzy. "Good friends, sweet friends, let me not stir you up To such a sudden flood of mutiny. They that have done this deed are honorable," says the Roman. 66 Why, gentlemen, they are our kin; they were, at any rate, if they are not now, our customers; and we hope that they will be our customers again!” says the chancellor of the exchequer. A people struggling for its life against the most tremendous oligarchy that the world has ever seen awakens not his respect, but his pity. He is anxious, therefore, that a people so humiliated should be treated with due compassion. "Let us bear with them all we can." To assure a people thus battling for freedom against slavery, for law, order, and social progress against a despotism, avowedly founded on slavery as its corner stone, that it is sure to be defeated, and that the sympathies of the world are with its antagonist, is, it seems, the true way of "manifesting a kindly temper." To do this is to observe "great caution about adverse criticisms." 66 The cup of humiliation and shame is ready for them, it appears. They are still endeavoring to hold it far from their lips; they have not yet drunk of the cup which, notwithstanding all the world sees, they must drink of." Enjoying thus the advantage of reading the future with perfect accuracy, the orator instructs his hearers to imitate his Christian forbearance, and not to trample on the downfallen. He "earnestly hopes that England will do nothing to inflict additional shame, sorrow, or pain on those who have already suffered much, and who will probably have to suffer much more.” Those who know-as what American does not-the deeds of daring by men, of self-devotion by women, the almost fabulous generosity of all, the countless traits of individual heroism and chivalry with which the simple annals of so many families, rich and poor, throughout our land have been filled, during this dark but most honorable epoch of our history; those who know what a great people is now doing and suffering in defence of the free institutions bequeathed to them by their fathers, will know how to appreciate the epithet of “shame” which an English minister so genially bestows upon our name. "Blistered be the tongue that speaks of shame" is the only fit response to such rhetoric and such prophecy. But there were words in the oration to which it is to be hoped America wil never refuse its assent. The Americans, it is admitted, "have warm affections towards England." England is "the country which, however they may find fault with us, from time to time, has the highest place in their admiration and respect." This is perfectly true, and will, I trust, long remain so. But the England thus venerated and beloved of America is not the England which speaks through the lips of the chancellor of the exchequer, and which cheers his prophecies of our humiliation and shame. It cannot be denied that the tendency of European public opinion, as delivered from high places, is more and more unfriendly to our cause. This is to be ascribed, of course, to the interruptions which the continuance of the war causes to material interests, and to the increasing dislike in Europe to liberal institutions. It would be weakness in us to expect sympathy from the privileged classes; but the people everywhere sympathize with us, for they know that our cause is that of free institutions, that our struggle is that of the people against an oligarchy. They are not deceived by the reiteration of the stale commonplaces about the "wicked war," the "miserable war," the "causeless war." Not one of the critics and prophets with which the world swarms, and who are so anxious to take the mote from their neighbor's eye, has ever suggested any possible project for the restoration of peace. They content themselves with denouncing the war. It would be well for these philosophers to ponder the motto which the State of Massachusetts borrowed from Algernon Sydney, and has borne for nearly a century on her seal : "Ense petit placidam sub libertate quietem."’ The time comes to all nations when they can achieve peace AND liberty by the sword alone. And when those blessings have been secured-as they only can be, on our continent, which the hand of God has indicated as the residence of one people-by the re-establishment of our federal Union and popular institutions, now threatened by the slaveholders' insurrection, it may be hoped that the American sword may be sheathed for centuries. Nor do I think that optimism puerile or unphilosophical which looks forward, through the war clouds that now envelop our land, to a day when the passions, slaked in blood, shall at last permit reason to resume her sway, and when the south as well as the north shall be both proud and happy that an oppressed race has been converted from chattels into free laborers, and the only obstacle removed which has ever lain in the path of our united nation to prosperity and true glory. Even if these be dreams, I for one would not exchange my faith for that short-sighted materialism which, in either hemisphere, can see any good to the world in the downfall of our great and free republic. I have nothing special to report of the condition of this empire. Its financial condition would seem to be improving, to judge by the rise of twenty per cent. in the market value of its paper as compared with specie. Ten pounds sterling, which at par are equivalent to 100 florins, were worth 140 florins a year ago, and are now worth but 120. There are hopes of a resumption of specie payments at the end of five years. The measures are now pending before the Reichsrath, and I will inform you duly of the result. The proposed budget for 1863 shows a probable expenditure of 388,698,000 florins, with an income of 304,300,000. The deficit is already 84,398,000, which in time of peace does not seem very encouraging, particularly as about one-third of the whole annual expense is to be charged to the army. It should never be forgotten, however, that the resources of this empire are vast, and to a great extent still undeveloped. The condition of the inhabitants is far from an unfortunate one in a material point of view; the agricultural and mineral wealth is great, and there is a steady effort to give fair play to the liberal institutions with which the empire has recently been endowed. The taxation is heavy upon the wealthier classes, rather than upon the nation. Thus the tax on real estate is about 33 per cent., and there is an income tax of six per cent., which is shortly to be increased to seven per cent. Nevertheless, the gross amount of the debt is, in round numbers, but eleven hundred and fifty million dollars, which, for a population of thirty-six millions, is but thirty-two dollars per head. The amount of annual taxation is but a fraction over four dollars per head. To speak, therefore, of the Austrian empire as on the verge of bankruptcy and impending dissolution is mere abuse of language. The amount of debt and the ratio of taxation distributed per head over the population show that the condition of the Austrian subject is better than that of the subject of any monarchy in Europe, except Greece and Russia. The amount of debt in Holland is, per head, one hundred and thirteen dollars, while in the same country the ratio of contribution to the public revenue is more than eleven dollars per head. The amount of debt per head in France is above fifty dollars, with a ratio of taxation of ten dollars. The amount of debt per head in Great Britain is about one hundred and forty dollars, with a ratio of taxation of more than eleven dollars. Thus the condition of Austria is, comparatively, favorable, and there is no doubt that the general aspect of the empire is one of thrift, contentment, and prosperity. The capital is growing like an American city, and the old feudal and picturesque town is surrounded by vast suburbs, in which splendid streets and stately palaces are rising and extending themselves in all directions. My despatch has reached a greater length than I intended, and I shall therefore conclude these desultory remarks. I have the honor to be, sir, your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington. J. LOTHROP MOTLEY. ITALY. No. 39.] Mr. Seward to Mr. Marsh. [Extract.] DEPARTMENT OF STATE, Washington, January 31, 1862. SIR: Your despatch of January 6, No. 36, has been received. I have submitted that portion of it which relates to the want of protection of our commerce in the Mediterranean to the Secretary of the Navy. The complications of our commerce with foreign countries are not merely annoying, but very embarrassing. Nevertheless, they are regarded as not illegitimate consequences of the insurrection. Temporarily they impair the national prestige, but they do not very seriously endanger the cause of the Union. It is impossible to meet factious treason with due resistance at so many points in our own extended country and in every court and port throughout the world. But we have become at last, and certainly within a time not unreasonable, masters of our position at home. Soon, I trust, we shall find ourselves less exposed abroad. We have had eighty years' experience of domestic peace: it would be unbecoming a magnanimous people to bear impatiently the evils of a brief insurrection, however great they may be. * * * I am, sir, your obedient servant, * GEORGE P. MARSH, Esq., &c., &c., Turin. WILLIAM H. SEWARD. Mr. Seward to Mr. Marsh. No. 50.] DEPARTMENT OF STATE, Washington, August 25, 1862. SIR: Your despatch of August 5, No. 49, has been received. The statement of the condition of the Italian question which it contains is very important and interesting. The gloom which settled upon the public mind here after the affair at Richmond has already worn off. The forces of the Union are recruiting. The call for three hundred thousand volunteers has been promptly answered, and three hundred and seventeen thousand brave and determined men are already either in the field, or on the way to it, or in camps of organization. The only question that remains about the three hundred thousand militiamen called for through the process of draft is whether that number of volunteers for the war shall be accepted in place of the militia, or whether the government shall insist upon the draft. General McClellan having successfully withdrawn his great army from its position on the James river, is bringing it forward to unite with the army of General Pope, on the Rappahannock. The insurgents have moved before from Richmond with their main force to destroy General Pope's army he could be joined by McClellan. But the juncture is at least partially effected already, while, though there has been some skirmishing, no important action has taken place. The SIR: Your despatch of August 26, No. 50, has been received. account which it gives of the political condition in Italy is full of interest and instruction. Later advices, however, which were hastened by the telegraph, inform us that General Garibaldi, the leader of the popular movement against the government, has been wounded and captured by a French force in Calabria. It would seem that this event must have brought the armed revolution suddenly to an end, although, instead of abating, it may even have increased the agitation which threatens to disturb the peace of Italy and of Europe. Military affairs here have taken an unfavorable direction during the last three weeks. The army of the Potomac, which was in command of General McClellan, having evacuated its position on the James river, reached the Potomac, near Alexandria, unpursued and in safety. The army of Virginia, under General Pope, which was advanced to the Rappahannock, through some mistake on his part was flanked by the insurgents in large force, and retired to Manassas. Here it became involved in a series of severe engage ments, in which it was not supported by the army of the Potomac, as it is supposed it might have been. Both armies, thereupon, returned to this city. An inquiry has been instituted to ascertain where the responsibility for these unnecessary reverses belongs. In the meantime the insurgents, executing a long-cherished design, advanced on the south side of the upper Potomac, which at this season is for lable at many places, and, crossing it at and above Edward's ferry, occupied Frederick. When there, menacing equally Washington, Baltimore, and Harrisburg, in Pennsylvania, they put forth an appeal, on Wednesday last, to the people of Maryland to rise and join the insurrection. Our troops having recovered from a temporary disorganization, an army was immediately organized and despatched, under General McClellan, to meet the insurgents at Frederick. The last information we have is that they have promptly evacuated Frederick and advanced westward to Hagerstown. This retreat is supposed to indicate an abandonment of any designs to strike Baltimore or to advance on the north side of the river to the Potomac, while it still leaves them a choice of entering Pennsylvania or of recrossing into Virginia at or above Harper's Ferry. .Acting upon the same general aggressive policy, the insurgents are advancing towards and threatening Cincinnati. These bold movements very naturally produce much excitement and considerable alarm. On the other hand, the armies of the Union are receiving immense re-enforcements, and our military authorities express much confidence in their ability to retrieve the losses sustained and prosecute a vigorous and decisive campaign. Although cheerfully indulging these expectations, I do not think it profitable to dwell upon them, because measures are going on which must |