9 
MOOEE’B 
schooner Inland Belle off Nassau, laden with sugar 
and molasses, abdut twelve miles southeast of Bull's 
Island Light She had a clearance for Baltimore, 
but when first seen was standing in for Bull’s Bay. 
The Island Belle was built at Charleston in 1861, 
and called the Gem Ripley, and on her certificate of 
British registry bears date November 4,1861. Com¬ 
mander Parrot sent her to New York. 
Advices from Port Royal state that the expedition 
toward Savannah was in progress* 
Reconnoitering parties have proceeded beyond 
Tybee Island, with apparatus for removing obstruc¬ 
tions from rivers and creeks south of Savannah 
river. It is understood that the land force would 
oonsist of 10,000 men, and also that Moiram Inlet 
would be the first destination of the expedition. 
The railway progressed across Hilton Head Island. 
The Steamer Isabel was much damaged by the 
shells of the Mohican while running the blockade. 
One shell knocked off her entire stern, and she 
hardly got in afloat. The fog was dense, but she 
was discovered by the sailing gunboat Roebuck. 
The Mohican slipped her cable, and chasod her 
The Isabel 
taking counsel from rules which guide international T$ 
relations, as well as from considerations of enlight- Tf 
ened policy, rather than from manifestations pro- p} : 
duced by our excited national feelings. in 
The Government of the United .States, we are j~ 
S ati(ied to hope, will bring into its appreciation of Jrl 
e case all the calmness which its importance Ir 
demands, and will deem it proper to take a position Lj 
which, while preserving from rupture two great L? 
powers, to wbicli Austria is equally bound in friend¬ 
ship, will be snch as to prevent the disturbance to 
which eventually the war could not fail to bring, 
not only upon each of the contending parties, but 
upon the Hilaire of the world generally. 
You will please, sir, to bring the preceding reflec¬ 
tions to Mr. Seward’s notice, and make a report to 
us of the manner in which the Minister may receive - 
your communication. 
Accept, sir, the assurances of my distinguished 
consideration. Rechberg. 
MR. SEWARD TO CHEVALIER HOUSEMAN'. 
Department op 8tatr, \ 
Wash isoton, Jatiuiuy 9, 1862.) 
ToJ,hf Uheixilier Huhetfw.fi: —Srit: i have submit¬ 
ted to the President the note which you left with 
me. which was addressed to you oh the lSth of 
December, by Couut Kechberg. touehing the affair 
of the capture and detention ol' the British steamer 
Trent, bv CapL Wilkes, of the San Jacinto. 
1 semi you ft copy of (he correspondence which 
has passed on this exciting subject between this 
Government, France and England, and 1 have to 
request that you will transmit these papers to Count 
Rechberg. 
The imperial government will learn from these 
two important facts: First That the United States 
are not only incapable for a moment of seeking to 
disturb the peace of the world, but are deliberate 
and friendly in their intercourse with all foreign 
nations; and secondly, that they will not be un¬ 
faithful to theft traditions and policy, and advocate 
the broadest liberality in the application of the prin¬ 
ciple of international law to the conduct of mari¬ 
time warfare. 
The United Btates, faithful to the sentiments, and 
while at the same time faithful (?) their political 
Constitution, will rejoice that the occasion wl)ich has 
given rise to this correspondence shall bo improved 
so as, to contain a revision of the law of nations, 
which will render more definite and certain the 
regulations and obligations of States in time of war. 
J shall esteem it a favor, sir, If you will charge 
yourself with the care of expressing these senti- 
LouisvilIe, Jan. 20.—The recent fight took place 
on Sunday, instead of Saturday, A. M. Gen. 
Schoepff, on Sunday P. M., followed the rebels 
to their entrenchments, sixteen miles from his own 
eump. and wbeu about to alack them, this morning, 
he found their entrench meats deserted, the rebels 
having lost all their canmm, quartermaster’s stores, 
tents, horses and wagons, which fell into our hands 
The rebels dispersing, had crossed the Cumberland 
in steamboats and bargee, at White Oak Creek, 
opposite their entrenchments at Mill Springs. Of 
the rebels, 275 were killed and wounded, including 
Zollicoffer, who was found on the field. 
The JOtli Judiana regiment lost 76 killed and 
wounded. Nothing further of the Federal loss 
reached us. 
be larger than that of the best and strongest inen-of- 
war ships of our N avy. 
Among the barks and brigs there are certainly 400 
to 500 capable of receiving an armament of from 8 
to 20 gums and more than a thousand of our large 
coasting schooners that have a breadth of 28 to 30 fend 
and over, and a form never surpassed for speed, which 
tan in a few weeks be transformed into men-of-war 
schooners, armed with one pivot gup of the heaviest 
description in the middle, and two to four 22-pound¬ 
ers at the ends. The vessels have a very large sta¬ 
bility, and the scantling of their timbers, etc., is by 
20 per cent, heavier than of the common men-of-war 
schooners. 
This fleet of about 2,000 vessels of war can, work¬ 
ing with all the natural energy of our nation, be 
turned out in leas time than four to six months, and 
it would be sufficient to protect our coast and meet 
the first storm. 
Time would so be gained to build a fleet fit to rep¬ 
resent our great nation, and to make our flag once 
more respected in all seas of the globe. 
The Great Naval Expeditions. 
All .are now anxiously watching and waiting tor 
the first tokenp of success from the Expeditions on 
our coast and down the Mississippi. The Wash¬ 
ington correspondent of the N. Y. World writes 
that the long looked for period of military activity 
is not far off. The sailing of the Burnside Expedi¬ 
tion, and the sailing of the gunboat fleet from Cairo, 
arc key notes to movements along the whole line of 
the war. The next thirty days are big with the fate 
of this Republic. All our armies will probably 
move simultaneously, and at least four hundred 
thousand loyal troops will be hurled upon the arms 
and batteries of the enemy. It is improper, of 
course, to speak of specific movements, but it can 
be no longer doubted that events of great moment 
are at band. That victory will crown the Federal 
arras in every encounter, is hardly to be expected; 
but with our knowledge of the number and arms of 
the rebels, the Administration has every reason to 
believe that t he back of the rebellion will be broken 
before the first of March. 
When the Wow once falls, and if our troops are 
successful in the ouset, it will be tollowed up with 
a vigor rarely witnessed in history. The long delay 
bo admirably borne by an excited and impatient 
people, was absolutely essential to the accumulation 
of the vast warlike material requisite for. a campaign 
through such an enormous stretch of territory. It 
is admitted here by parties attached to the foreign 
diplomatic bodies, that should the United States 
succeed in its movements, it will emerge from this 
war the greatest military power on earth. It cer¬ 
tainly will be so for defensive purposes. There is 
immense activity in every military department, and 
although a movement on the Potomac is not expected 
immediately, events may make an advance on Cen¬ 
terville a military necessity. 
The Mississippi Expedition. —The importance 
of tlxis expedition down the Mississippi cannot be 
over-estimated, especially as viewed iu connection 
with the grand combined movement which, we have 
good reason to believe, will take place before long. 
We append a brief resume of the force composing it: 
The Hoot, has been prepared with greai, care, and 
consists of seventy-eight boats, of which twelve are 
gunboats, thirty-eight mortar boats, and twenty- 
eight tugs and eteamboats. The gunboats are as 
follows: 
Guns. Guns. 
18 Pittsburg... 16 
10 Cinchltmtl...10 
15 Louisville....10 
10 Conestoga..10 
10 Lexington...10 
10 Tvler. 16 
Seven of these, boats cost eighty-ni ne thousand dol¬ 
lars each to build. They are one hundred and 
Beventy-flve feet in length, fifty-one feet six inches 
in breadth, and draw five feet when loaded. The 
bows and bow-bulwarks consist of about three 
feet of oak timber, bolted together, and sheathed 
with the best quality of wrought iron plates, two 
and a half inches thick. The sides have the 
same sheathing, with lees bulk of timber. Each 
boat is pierced for fifteen guns, four on each 
side, four on the stem, and throe at the bows. 
The bow-guns are eighty-four pounder rifled can¬ 
non; the others are eight-inch columbiads.' The 
sides of the boats, both above and below the knee, 
incline at an angle of forty-five degrees, and nothing 
but a plunging shot from a high bluff could strike 
the surface at right angles. The boilers and machi¬ 
nery are so situated as to be perfectly protected, and 
The iron 
Department of the Ksiwt. 
During the past week Gen. McClellan was 
before the Joint Committee on the conduct of the 
war. For three hoi rs they listened to a patient aud 
candid account of bis operations in the responsible 
office to which he was s* suddenly and without his 
knowledge or proci reineut sumiaoued by the Presi¬ 
dent and by the nation's voice. The difficulties of 
his position, the embarrassments of questions arising, 
the amount of labor to be done, the ferocity and 
strength of die rebellion he has to vanquish, were 
grouperl together in a manner so effective as to win 
sympathy from members who had imbibed preju¬ 
dices against him. and the modesty and steady 
assurance he manifested of an early and utter over¬ 
throw of the rebels, gave confidence in his capacity 
and generalship that had not before existed. Gen. 
Butler was also before the committee. 
An order just issued from the Army Headquarters 
contains the following:—“The exigencies of the 
service demand that every officer and soldier of this 
army able to do duty filial l be at his post The 
Comtnafiding General therefore deems it necessary 
to direct that, unless by reason of sickness upon 
a medical certificate, no leaves of absence or fur¬ 
loughs shall be granted at the present time, except 
in urgent and exceptional cases, when the necessity 
for indulgence must be clearly set forth in the appli¬ 
cation. It is proper to remark that many of the 
reasons for which leaves of absence and furloughs 
have heretofore been granted camioy>e allowed.” 
Gen. MeClel- 
McClellan and the Approaching Movomentx. 
The N. Y. Pod of the 14th says, the following 
extract from a letter received, this morning, by one 
of our prominent citizens, comes from a responsible 
source, and hints at certain movements said to be 
impending: 
Washington, Jim 12. Jfn32. 
Mv Dear Fir: * *. * * The night of the re¬ 
bellion has passed, and the dawn is about breaking. 
Before the present month has gone them. 1 tilings will 
surely come to pass ; Gen. Halleck, with the great 
flotilla and an army of one hundred thousand 
strong, will sweep like an avalanche down the Mis¬ 
sissippi. where they will lx 1 ! joined by Gen. Butler in 
New Orleans and ’Mobile. Gen. Buell, with nearly 
or quite the same force, will march into Tennessee, 
capture Nashville, and co-operate with the Union 
force's in a manner and direction it would not be 
politic now to point out- Generals Rqsecmns and 
Kelly will advance from Western Virginia, and do 
their share in harmony with the general plan. 
Generals Batiks and Stone will move in conjunc¬ 
tion with the rest from the upper Potomac. General 
Burnside will do his appointed work in Virginia. 
Gen. Sherman will explain by deeds, not words, his 
inaction. Gen. McClellan will force the rats from 
their holes at Manasas, attack them at three points 
at once, and will fulfill liis modest pledge that the 
war will be "short but desperate.” 1 do not give 
you more than the general outline of these simul¬ 
taneous movements. The details of the grand plan 
of this campaign will startle the world, and vindi¬ 
cate Gen. McUlellan’s high reputation for military 
strategy. The men and supplies are now, for the 
first time, nearly ready. The delays, in and out of 
the departments, and by thriving contractors and 
materia) men, will be accounted for, and the blame 
placed where it belongs. A premature movement 
would have deranged the plan of the whole cam¬ 
paign, which is so perfect that success is certain. A 
naumovo, untimely made, might have hazarded the 
g ame. The impending mate is close at hand in a 
UUtcd number of forced moves. The loss of ft 
piece here or there, the defeat ot one or another 
division of the army, cannot affect or prolong the 
result. The combinations are so perfect that failure 
is impossible! Yours ever, -. 
under the batteries of Morris Island, 
returned the tiro, but without avail. 
The De Soto had arrived there with the French 
war steamer Milan, disabled, in tow, the De Soto 
having run into her at the mouth of the Mississippi, 
on account of her acting in a suspicious manner. 
It was proved that she was permitted by Govern¬ 
ment to ascend the river and take off several families 
desirous of leaving Jeff’s dominions. She had no 
light when run into. 
It is confidently asserted that General Wool has 
sent notice to General Iluger at Norfolk to remove 
the women and children from that city. 
Information has boon received that the rebels 
have abandoned Roanoke island in Pamlico Sound, 
it is also said to-day that they are preparing to 
evacuate Yorktbwn. The latter is not generally 
credited. 
The gunboat Rhode Island arrived from Galves¬ 
ton on the 18th. Her dates are Galveston, Decem¬ 
ber 28th; Ship Island, December 3lBt; Mobile Bar, 
December 31fit; and Fort Pickens, January 2d. 
She brings a large mail. 
The gunboats St Louis, New London, and Water 
Witch, left Ship Island lor Biloxi, December 31 st 
The result was not learned; but as the Rhode Island 
was leaving, the New London was seen returning 
with three schooners in tovr. 
The schooner Venus was captured off Galveston 
by the Rhode Island. She was bound from Point 
Isabel for Franklin; La, with a cargo of tin, copper, 
lead, and wood, valued at $10,000. She was sent to 
Ship Island. 
The rebel steamer Florida is inside Horn Island. 
The gunboat Wissahickon is off that plaoe. 
The rebel batteries at Pensacola having repeat¬ 
edly fired at our small vessels. Fort Pickens opened 
on the rebel steamer Times, which was loading 
stores at the Navy Yard, on the 1st of January. 
The rebel batteries responded, and the tiring was 
continued till evening, Fort Pickens firing the last 
shot. The rebel gunfi were well aimed, and most of 
their shells burst, inside of our fort. Only one ol our 
men, however, was wounded. One of our shots 
made a large breach in Fort Barancas. in the 
evening our firing set Warrington on fire. The 
conflagration continued all night, and the place was 
still burning on the evening of the 2d inst, when the 
Rhode Lsland left The fire was seen at a distance 
of thirty-five miles at sea. 
yourself with the care of expressin . 
rricnts to yonr government, and at the same time 
assure Count Keehtmrg that the President appre¬ 
ciates very highly the cordiality and frankness 
which the Government of Austria "has practiced on 
an occasion of such great welfare to the United 
States. 
I avail myself of the circumstances to offer to you, 
sir, renewed assurances of my very high considera¬ 
tion. W. H. Seward. 
Mr. Cameron has been confirmed as Minister to 
Russia, by a vote of 28 to 14. 
The President has said that he will not accept 
Gen. Sipcl’s resignation, except as a last resort. He 
accounts him a valuable officer, and will spare no 9 
pains to retain him in the service. 
Lieutenant-Governor Fisk, and other prominent 
citizens of Kentucky, have been in Washington, and 
succeeded in obtaining 5,(KK) carbines, for the use of 
their State and Tennessee*. 
The Senate Committee oa Military Affairs have 
for several weeks past boon engaged in the exami¬ 
nation of 1300 or 1400 army appointments, of all 
grades, made by the President during the recesH, 
and which have been submitted by him for confirma¬ 
tion, Early this week, that body will consider in 
executive session such of them as have received 
favorable action of the Committee. 
The number of Brigadier-Generals is nearly 70, 
including the recent appointments of N. J. T. Dana, 
of Minnesota, and Jos. Shields, of California. All 
the Brigadier-Generals will be recommended for 
prompt commission except twelve or fourteen, and 
these will be reserved for future consideration for 
the Committee. It is believed that good habits and 
morals, as much as competency and bravery, have 
not been overlooked in the appointments. In some 
cases of doubt, the Committee have been voluntarily 
supplied with documents to aid them in coming to a 
favorable conclusion. 
Complaints have been made relative to the jail . 
regulation of Col. LarnoD, Marshal of the District of 
Columbia, who acted under the advice of high legal 
authority. It appears that the reason of the regula¬ 
tions have either been misunderstood, or his motives 
not known in requiring Members ot Congress to 
procure passes from the President of the Senate or 
the Speaker of the House. It was to facilitate rather 
than obstruct their entrance into that heretofore 
unattractive institution, in thus making known to 
the prison guard the official standing of visitors, and 
securing theif prompt admission. 
Notwithstanding tbie absence of any cause for 
serious apprehensions of a foreign war, it iB the 
desire of the Government, and the Commanding 
General, that the militia of all the loyal States shall 
he fully and efficiently organized; and in this con¬ 
nection Gen. McClellan strongly urges the organi¬ 
zation and the practical preparation ot artillery 
corps in all the seaport and lake towns, with a view 
to have in readiness for any emergency an effective 
body of well-drilled artillerists, lor the defence of 
our harbors and coasts. It is designed that these 
corps shall Ik* provided with gi*ns and equipments, 
and to be paid by the United States whenever called 
into actual service. 
The Committee appointed by Congress on the 
oonduct of the war, has resolved to advise the 
immediate passage of the hill to punish with death 
any person who commits a fraud upon the Gov¬ 
ernment whereby a soldier is bodily injured— 
as for instance, in the sale of unsound provisions. 
AIbo, to punish with imprisonment and confiscation 
of all property and Government dues, all contract¬ 
ors who, in any way, defraud the Government in 
the quality of goods sold, or services pretended to 
he rendered to the Government. 
The Government Contract Investigating Commit¬ 
tee are now engaged on the subject of alleged 
frauds in this vicinity. They discover that some 
horses have been twice sold to the Government. 
Superintendents and Inspectors have been bribed 
to certify to the horses, Bomutimes selling them to 
private individuals; that the enormous amounts 
paid by the War Department for transportation, has 
indneed strong competition among railroad compa¬ 
nies, so that many of the Colonels in the West, in 
moving their regiments East, have received, each, 
from $1,000 to $2,000 bonus; that some sutlers are 
making $3,000 profit per month; that nearly all ol 
the sutlers south of the Potomac sell liquor with the 
knowledge of the officers; that it is smuggled in 
boxes marked government and hospital stores, or 
packed in barrels marked beef. Rumors are rife as 
to the discovery of frauds committed by those who 
have been raising and equipping regiments. Double 
rations and other supplies have been drawn, for a 
force on paper not regularly recruited. 11 is under- | 
stood that the contracts let out by Secretary Cam- 
eron for over 1,000,000 of Springfield muskets, and i 
250,000 rifles and carbines, will be ordered to be T 
annulled by Congress. They will not be available t 
in the present war, aud as they are t<x cost, on an rj 
average, $7 each above manufacturers’ prices, they Jt 
involve the loss of nearly $9,000,000 to the treasury. <? 
Some time ago Gen. Hooker ask 
lau what he should do with fifty or sixty fugitive 
slaves tliat were within his lines at Budd's Ferry. 
Gen. McClellan replied with an order to inquire 
into each case whether the fugitive had or had not 
btxra employed in the military service of the enemy. 
If he had been, Gen. Hooker should employ him; 
if not, he should exclude him from his lines, thus 
temporarily liberating him, and leaving the final 
disposition of the bondman to the civil authorities. 
It is understood that a similar rule will hereafter lx* 
applied in every case occurring with the army of 
the Potomac. 
A difficulty is presented as to the disposition of 
all tile cavalry regiments accepted into the service. 
The Commanding General asked for twenty-seven 
regiments, and the whole number accepted and 
authorized to be raised is seventy-three. This is 
forty-six more, than Gen. .McClellan wants or knows 
how to dispose of. This excees will cost the Gov¬ 
ernment about $-16,000,000 of needless expense. It 
is proposed that the number of regiments actually 
required shall be made as efficient as possible, and 
others offered the option to be discharged from the 
service or transferred to infantry. 
So far, about 1,000 prisoners on each side have 
been exchanged, nearly 500 of whom were connected 
with the army of the Potomac. The system of 
exchange inaugurated by our Government is lully 
reciprocated by the rebel authorities. 
A Harrisburg letter of the 16th instant states that 
Gen. Williams, in command of the Fourth Union 
regiment, and three 14-poundor Parrot guns, reports 
small bodies of rebels scattered along the river 
thence to Cumberland. At New Creek, near Cum¬ 
berland, there are four regiments, while 7,000 or 
8,000 are at Patterson’s Creek, eight miles below 
Cumberland. Gen. Kelley Is at Cumberland. He 
has three full batteries, besides several independent 
batteries. The rebel General Jackson is near Bath 
with 6,000 men and 27 guns. The Ohio and Indiana 
troops express a warm desire for Gen. Rosecrans to 
be put in command at Cumberland, and say that 
with 30.000 men he would whip Jackson, take Win¬ 
chester, and turn the right flank of the enemy at 
Manassas. 
A F’ortress Monroe letter of the 12th says as to 
the Burnside Expedition:—“T presume I shall vio¬ 
late no confidence if I state, on common rumor and 
belief, that the expedition will rendezvous at Hat- 
teras Inlet, and that Pamlico and Albemarle Bounds 
will be the immediate fields of operations. Of those 
operations in detail it is not proper to speak, any 
further than it is understood that the force, when 
fairly afloat on the waters of Pamlico Sound, will 
address itself to Roanoke Island, which is strongly 
fortified and defended by 2,000 to 3,000 tnen. I pre¬ 
sume the clearing out ot the rebels from all the 
Sounds will follow. It must not be supposed that 
this is the whole map laid out for the expedition. It 
will clear away the under-brush, and it will be 
time enough to record the rest when it takes place.” 
It is understood that the Ninth New York regi¬ 
ment, Col. Hawkins, now at Hatteras, will accom¬ 
pany the expedition, and possibly the Forty-eighth 
Pennsylvania regiment, ul6o there. 
The Navy Department has received dispatches 
from Commander Glesson, of the U. S. steamer 
Mount Vernon, dated off Wilmington, N. C.. giving 
an interesting account of the burning of a lights 
ship. Having heard that the rebels made use of it 
as a beacon for guiding vessels in and out of the 
harbor, and for the purpose of annoying our vessels 
by hoisting lights at night, he determined to take 
advantage of a hazy night, with wind oil' shore, to 
effect her destruction, and accordingly dispatched a 
cutter, under command of Acting Master Aleck 
Allen, with John P. Foot, Coast Pilot, aud a crew of 
five men: and a gig, under command of Acting Mas¬ 
ter Sturges, and a crew of six men. The boats pro¬ 
ceeded within a short distance of the light-vessel on 
the off side of Fort Caswell. Two officers, a boat¬ 
swain's mate and a quartermaster, climbed onboard 
by a rope which was hanging at the side. The 
light-boat was quite deserted. Carpenters had been 
at work. The vessel was being pierced for eight 
guns. No attempt was made to molest the expedi¬ 
tion until they had kindled a fire, which effectually 
destroyed the light-ship. The fort did not open 
upon our boats until they were nearly out of harm’s 
way. 
The rebel stoamer Gordon is on the stocks for 
repairs, according to the reports of "contrabands” 
on board the Mount Vernon, on account of the 
damage received in her encounter with the Mount 
Vernon in December. 
The Augusta, Commander Parrot, captured the 
Benton. 
Essex_ 
St Louis... 
Chromic! <*t. 
Mound City 
Cairo__ 
may be considered quite out of danger 
plating has been severely tested by shots from rifled 
cannon at different distances, and has shown itself 
to be utterly impervious to any shots that have been 
sent against it, even at a range of three hundred 
yards. The flag-ship of the expedition is the Ben¬ 
ton. Bheisone hundred and eighty-six feet long 
on dock, aud seventy-five feet wide at the beam, and 
carries eighteen guns, from 32-pouuders to 42- 
pounders. The mortar boats are built of heavy 
timbers, the sides of boiler iron, loop-holed for mus¬ 
ketry, and are so arranged that they can be used for 
bridges. They will carry one fifteen-inch mortar. 
The mortar boats will be towed into position by tugs. 
AFFAIRS AT WASHINGTON 
The results of the various conferences held in 
Washington, by Representatives from the Boards of 
Trade, Chambers of Commerce and Banking Insti¬ 
tutions of our leading cities, among themselves and 
Secretary Chase, may be summed up briefly, as fol¬ 
lows: 
1st. The general views of Secretary Chase are 
assented to. 
2d. The Banks will receive and pay out United 
States Notes freely, and sustain in all proper ways 
their credit. 
3d. The Secretary will issue, within the next two 
weeks, in addition to the current daily payment of 
$1,500,000 of United States Notes, the further sum 
of $30,000,000, in ’73 bonds, to such public creditors 
as desire to have them, and thus relieve the existing 
pressure upon the community. 
4th. The issue of United States demaud notes are 
not to be increased beyond the $50,000,000 now 
authorized; but it is desired that Congress will 
extend the provisions of the existing loan acts, so as 
to enable the .Secretary to issue in exchange for the 
United States demand notes, or in payment to cred¬ 
itors, notes payable in one year, leaving 3.66 per 
cent, interest, aud convertible into 7.30 three years 
bonds, or to borrow under the existing provisions to 
tiie amount of $260,000,000 or $300,000,000. 
5th. It is thought desirable that Congress should 
enact a general law, relating to currency aud bank¬ 
ing associations, embracing the general provisions 
recommended by the Secretary iu his report. 
6lh. It is expected that this action and the Legis¬ 
lature will render the making of the United States 
demaud notes a legal tender, or their increase 
beyond the $50,000,000, no'w authorized, unneces¬ 
sary. 
The U. S. Treasurers last weekly statement shows 
that the total amount on deposit was $7,700,000, on 
which drafts had been drawn to Jhe amount of 
$6,000,000. The bullion fund is $1,102,000. The 
available balance in the States under insurrectionary 
control, is stated at $4,500,000. 
The President, on the 16th, submitted to Congress 
the following documents relative to the Trent affair: 
COl’NT RECHBERG TO THE CHEVALIER HOUSEMAN. 
[translation.] 
Vienna, December 19,1801. 
To the Chevalier A. Hulseman, Washington:— 
Sir: The difference which has supervened between 
the Government of the United States and Great 
Britain, in consequence, of the arrest of Messrs. 
Mason and Slidell, made by the Captain of the 
American shlp-ol-war Ban Jacinto, oU board the 
English mail packet Trent, has not failed to fix the 
must serious attention of the Imperial Court 
The more importance we attach to the mainte¬ 
nance of friendl v relation? between the United States 
and England, tfie more must we regret an accident 
winch has come to add so grave a complication to a 
situation already bristling with so many difficulties. 
Without having the intention to interfere, upon an 
examination into the. question we nevertheless can¬ 
not but acknowledge, according to the right ot 
international law, adopted by all the powers, and 
which the American Government has often taken as 
the rule of its conduct, England could not in any 
wise in the present case refrain from reclamation 
against the affront given to the flag, and for asking 
proper reparation for it. 
It seems to us, moreover, that the request reduced 
to form by the Cabinet of St. J ames, has in it noth¬ 
ing offensive to the Cabinet at Washington, and that 
it will enable them to do an act of equity and mod¬ 
eration without the least sacrifice of dignity, by 
How Our Navy Might be Enlnrged. 
Donald McKay writes a very intelligent and 
striking letter to the Boston Commercial Bulletin. 
relative to our naval resources, from which we make 
some extracts: 
It would be easy for us to build in one year a 
fleet of 500 to 600 men-of-war ships, from a gunboat 
to the largest class of iron-cased frigates. It is a 
well-known fact that we built, in one year, (he 
astonishing number of 2,034 vessels and steamers of 
all classes, measuring- together,' 583,450 tons. A 
large number of these vessels wen* as large as the 
■biggest class of frigates hitherto constructed. What 
we have done once, we muy do over again, ami 
working at the eaine rate, we would Ixi able alone in 
our merchant yards to turn out, in one year, 583 
chips of 1,000 tons each. In our six Navy Yards, 
where the choicest materials are stocked for build¬ 
ing a fleet of 100 ships, 60 more mcn-ol-war ships 
might be built in one year, making a total of C43 
men-of-war ships of all classes, varying in their 
armament from three to sixty guns. More than a 
hundred of our greatest engineering firms would 
complete all the machinery necessary to lie put in 
these ships in less than a year. 
It is true, on a very urgent occasion, in a great 
emergency, our country could largely increase her 
navy in a very lew mouths, with very powerful des¬ 
criptions of vessels, if they would proceed as fol¬ 
lows: 
Cut down all of our line-ol'-battle ships one or two 
decks, case them with five-inch iron plates, put a 
battery of 30 or 40 guns of the heaviest calibre on 
board of them, and moor them acrosB the entrance 
of our harbors. Plate our frigates with shell-proof 
iron plates, and to make up for the additional weight 
put into them, do away with their armament on the 
upper deck. 
Transform 100 of our best sea-going merchant 
steamers into so many frigates, sloops, dispatch and 
gunboats, of a speed superior to any men-of-war 
ships yet produced. 
Among our large clipper ships and traders more 
than 500 may he found that are capable to be trans¬ 
formed iqto so many efficient sailing sloops aud 
frigates. Their length varies from 120 to 200 feet; 
their breadth from 30 to 52 feet, and whenever they 
are cut down one deck, or their decks are lowered, 
will be found capable of carrying an armament 
varying from 20 to 60 heavy guns, according to their 
respective capacity. Twenty or thirty of our best 
find largest clipper ships might very well be trans- 
formed into powerful screw-frigates, as, for instance, 
the Great Republic, which exceeds in her dimen¬ 
sions thelargest English 60-gun frigates, while her 
shape for speed is incomparably superior. 
The scantling of all these ships is well known to 
