PAPERS RELATIVE TO THE MISSION OF HON. T. BUTLER KING, TO EUROPE. BOUGHTON, NISBET & BARNES, State Printers MILLEDGEVILLE, GA. 1862. KEPORT OF THE LEGISLATIVE COMMITTEE. The Special Committee to whom was referred the com¬ munication of His Excellency the Governor, on the subject of the mission of the Hon. Thomas Butler King to Europe to secure the establishment of a line or lines of steamers from European ports to the ports of Georgia, under the act of the General Assembly passed December, 1860, with ac¬ companying documents, beg leave to report that they have given the same a careful consideration, and that they have been exceedingly gratified at the manner in which Mr. King has discharged the duties of his mission. He was charged with power to offer a subsidy to parties in Europe who would establish and run a line of steamers 'between European ports and the city of Savannah, or other -ports in this State, which he succeeded in accomplishing ..according to instructions, under many difficulties. The merchants and people of England, France and Belgium were found to be quite ignorant of the commercial re¬ sources and power of the Southern States, having hereto¬ fore almost entirely received the productions of the South and shipped her supplies through Northern ports. It be¬ came, therefore, necessary for Mr. King to collect and pub¬ lish such facts and statistics as would enlighten the com¬ mercial mind on the subject; and for this purpose he wrote and published, and distributed over most of the European countries over five thousand copies of his letter addressed to Lord John Russell, published in English, and memoirs to the French Minister of Commerce and the French Min¬ ister of Foreign Affairs, in French, on the character of the blockade, beside an elaborate and well digested argument on the American blockade, also published in French, be¬ side many other articles written for the French papers on the state of our political affairs. In addition to tnis, he also concluded a contract with Messrs. Sabel & Co., of Liv¬ erpool, for the establishment of a line of steamers from Liverpool to Savannah, with the subsidy of one hundred 4 thousand dollars per annum, as provided by the act under which he was commissioned, which is herewith submitted. The result of Mr. King's labors in this behalf is seen and felt in having secured the change of a law unanimously by the Senate, Corps Legislatif and Imperial Council of France, granting a large subsidy to a company in Paris for the es¬ tablishment of two lines of first class steamers, one from Havre to New York, and the' other to the West Indies, whereby those were changed, the one from New York to the city of Savannah, and the other from the West Indies to the city of New Orleans. This was a triumph of the intelligence and labor of our representative. To enable Mr. King to accomplish this task, it became necessary to incur much expense in employing a secretary and translator, and in securing such quarters and living as became the representative of the State of Georgia. It will be remembered that Mr. King left the State of Georgia about the first of March, 18GJ, before hostilities commenced, and was in Europe when the blockade was established. It was not contemplated by the Governor or the Legislature that it would require more than two or three months to accomplish the purposes of his mission but soon after his arrival the blockade was established, and it was impossible for him to leave Europe until November, and he was detained two months in Havana, and did not reach his home until eleven months and seventeen days from the time of his departure, after enduring the perils of shipwreck. In consequence of this delay, the expenses were largely augmented, and in addition to the $3,000 ap¬ propriated for the expense of the mission, Mr. King was driven to draw upon the Governor for $2,500, which the Governor met upon presentation. Your Committee have great pleasure and pride in saying that Mr. King has not only ably and faithfully accomplished the purposes of his mission, but has done more, much more, in securing the two French lines referred to, to Savannah and New Orleans, to be put in operation as soon as the blockade is raised. And more, the Committee is of opinion that the able documents referred to have done more to place the real political condition and commercial resources of this, country before the European people than any acts or pa¬ pers which have fallen under their observation during our troubles; and that the people of this whole country are much indebted to him for their production. It is shown by the bill rendered by Mr. King that his actual expense of living, traveling, and preparing and pub¬ lishing the papers referred to, has°been $5,900, being four hundred dollars more than has been paid to him ; and the Committee recommend that Mr. King be relieved from all liability which he may have incurred by drawing the draft 5 referred to, that he be paid the balance which he has ex¬ pended, and that he be allowed the sum of twenty-five hun¬ dred dollars in compensation for his very valuable services to the State and the country while in Europe, and that his able report to the Governor, and his memoirs on steam navigation and the American blockade, with this report, be printed ; and we forbear asking the publication of his letter to Lord John Russell only because it has already been published in most of the newspapers of the country, and the people have had an opportunity to see it. In consideration of the change of the circumstances of the country since the contract was made, and the establish¬ ment of the French lines, which will subserve all the pur¬ poses of the Legislature, we agree with the Governor that it would not be wise and prudent at present, to ratify the contract negotiated with Messr^s. Sabel & Co., of Liverpool, as provided in said contract. All of which is respectfully submitted. ■To the House of Rejrreventati'ves : In response to your resolutions of enquiry relative to the mission of Hon. T. Butler King to Europe, I have the honor to transmit herewith his original report with the accompanying documents, which will afford all the infor¬ mation in my possession. I do not recommend the ratification of the contract made with Mr. Frederick Sabel, of Liverpool, by Mr. King, for the establishment of aline of steamers. It will be seen, by reference to Mr. King's report, that he doubts the pro¬ priety of its ratification, and hopes that a line of French steamers will be established without the payment of the subsidy. During the protracted stay of Mr. King in Europe, it ' became necessary for him to draw upon me for twenty-five hundred dollars in addition to the three thousand appropri¬ ated to defray the expense of the mission. This grew out of the necessity which compelled him to remain much longer than was contemplated, and the expense incurred in the publication of part of the accompanying documents in Europe, which it is believed were productive of much good A. E. COCHRAN, Chairman Special Committee. GOVERNOR'S MESSAGE. Executive Department, (5 i% our cause. I honored Mr. King's draft and paid the amount with exchange out of the contingent fund. I deem it but just to him. that he be relieved of all responsibility to the State on account of the draft, and that reasonable compensation be allowed him on account of his services, if it shall be seen by a bill of his expenses rendered to the House, that he has not been able to retain a sufficient sum over his expenses out of the money received by him to af¬ ford him such compensation. JOSEPH E. BROWN. REPORT OF MR. KING TO THE GOVERNOR. To His Excellency Joseph E. Brown, Governor oj Georgia: Sir:—Under tjie commission and instructions received from your Excellency, I proceeded to Belgium for the pur¬ pose of ofleiing to the "Belgian American Company" the subsidy proposed under the law of the ISth December,. 1860, for the establishment of a line of Steamships from some European port to Savannah or some other port in Georgia. That company was organized for the purpose of engaging in direct trade or commercial intercourse with the people of this and other Southern States, and fully ap¬ preciates the great advantages conferred on them by the charter granted by Georgia. But the Belgians are a man¬ ufacturing, not a commercial people, and while the Com¬ pany arc most anxious to send to us their merchandise and to receive our cotton and other products, they Lave but little practical knowledge of, or experience in ocean navi¬ gation, and especially the management of steamships. They therefore declined to enter into a contract as proposed in the law offering the subsidy. I was received and treated with much courtesy and dis¬ tinction, and much gratified to find a most friendly senti¬ ment towards our country, which I believe to be general in Belgium, and an ardent desire*for the speedy establish¬ ment of the independence of the Southern Confederacy. After remaining in Belgium some two weeks, I proceed¬ ed to Paris for the purpose of opening negotiations with a French Company which had taken a contract under the Government, for a very large subsidy, to establish two lifces of first class ocean steamers—one from Havre to New York, and one from Bordeaux to the West Indies. My object was to induce the company to bring the Northern line to Savannah, and to extend the Southern line to New Orleans. I also commenced correspondence with English Houses connected with steam navigation. I found among all par- 7 ties the most discouraging ignorance of the great advan¬ tages presented by the Southern States for direct commer¬ cial intercourse with them, and a prevailing belief that New York was the only port which offered suitable encourage¬ ment to steam communication with the North American continent. I therefore found it necessary to act under your instructions to explain the commercial relations hith¬ erto existing between the Southern and Northern States of the late Union, and that I must seek to change the opinions of individuals by communications addressed to their Gov¬ ernments. This I found to be no easy task. The data which I required was not readily obtained. On examining several libraries in London I found the United States cen¬ sus of 1850, several State returns of a later date, and the British trade reports. From these I framed my letter to the French Minister of Commerce, which you will find in the Appendix marked A. This letter I had printed in pamphlet form, as you will see. I caused two copies, one in French and one in English, to be placed in the hands of the Emperor, and I distributed three thousand copies of the pamphlet. I sent copies to the members of the Impe¬ rial Council, the Senate and Corps Legislatif, to the news¬ paper press, the Chambers of Commerce, Insurance offices, and to the principal manufacturers throughout France. I also sent copies to the German Commercial Union, and to the Ministers of State of the principal Governments of Europe, and to the Foreign Embassies in Paris. A very remarkable change was soon seen in the tone of most of the newspapers of Paris, and several of them took strong grounds in favor of the Southern cause, and it became known that the Emperor had changed his views and be¬ come favorable to the movement of the Confederate States, to which he had theretofore been opposed. In fact, a gen¬ eral change of public sentiment in our favor was produced and manifested. In my communication to the Minister of Commerce on steam communication between the ports of France and those of the Confederate States, which your Excellency will find in the Appendix marked B, I request¬ ed that the law granting„a subsidy for a line of steamers from Havre to New York, and a line from Bordeaux to the West Indies, might be so changed as to authorize the North¬ ern line to be sent to Savannah, and to extend the Southern line to New Orleans. This communication was also print¬ ed in the pamphlet and placed in the hands of every mem¬ ber of the Senate and Corps Legislatif, and I had the satis¬ faction of seeing the law changed, as I desired, by a unan¬ imous vote of both Houses. This was not accomplished, however, without much delay, labor and personal inter¬ course with the members. There seemed to be no end to> the( verbal explanations that were required. Thus has beer* 8 secured a line of steamers of the first class from the prin¬ cipal port of France to Georgia, within a reasonable time after the close of the war or the removal of the blockade, without the payment of a subsidy by the State or subscrip¬ tion to stock by her citizens. While these measures were in progress in Paris, I pub¬ lished my letter to Lord John Russell in London, which you will find in the Appendix marked C, and distributed two thousand copies. I also employed myself in preparing articles for the newspapers in reply to the infamous false¬ hoods and slanders published by the Northern press, or the infamous scribblers employed by the Lincoln Government in Europe. I also addressed a letter to the Minister of Foreign Affairs on the subject of. the blockade. See Ap¬ pendix marked I). I opened and kept up a correspondence with various parties in England, offering the subsidy as proposed under the law and the instructions of your Excellency, for the establishment of a line of steamers from Liverpool, or some other port, to Georgia. But it was not until a short time before I left London that I was successful in accomplishing that object On the first day of November I closed and signed a contract w7ith Mr. Frederick Sabel, of Liverpool, which please find in Appendix marked E. This contract is, of course, subject to the approval of your Excellency, and also of the Legislature. New Orleans and Charleston are su much better known in Europe as important commer¬ cial ports, than Savannah, I found it, for a long time, quite impossible to obtain any consideration of the proposals I was authorized to make, while various attempts were made to organize companies for the purpose of establishing lines of steamers to the former ports. In fact, had I not been aided by the calculations and arguments contained in my Report to the Legislature on the message of your Excel¬ lency in I860, and the statements in my letter to Earl Ruf-sell showing the vast advantages which wrill result from direct commercial intercourse between Europe and the Cotton States, I should have found it impossible to induce parties to think of bringing a line of steamers to Savannah. The whole subject is now so well understood, however, I am of opinion that it will not be a long time after the re¬ moval of the blockade before steam communication will be opened with most, if not all, our principal ports, and it is therefore for the wisdom of your Excellency and the Legis¬ lature to decide whether or not it is desirable to secure to Georgia the lead in a matter of so much importance, by confirming the contract herewith submitted, with or with¬ out modifications. We may look, with confidence, to the establishment of the French line as soon as the ships can be built, which, as they are to be of the largest class, will 9 probably require from one to two years. As you will see, the British line is to commence running within six months after the removal of the blockade, if the contract shall be confirmed. I have the honor to be, with great respect, Your Excellency's most obedient servant, T. BUTLER KING. SUPPLEMENTARY REPORT. To His Excellency Joseph K. Brown, Governor of Georgia : Snt:—It is proper to present to your Excellency, in con¬ nection with the report of my official proceedings in Eu¬ rope, a brief statement of the causes which prolonged my stay abroad beyond the period which I supposed would be necessary for the accomplishment of the objects of th& mission with which I was honored by your Excellency. If the Belgian American Company had been prepared to take the contract proposed by the law of Georgia, the business would have been soon completed, and the sum appropriated for the commission would have been amply sufficient to defray all expenses. But as that company declined to take the contract, it became necessary to seek other parties. The war which commenced with the bombardment of Fort Sumter, and its subsequent progress, produced such alarm among merchants and capitalists, that much delay and labor were necessary. In fact, it seemed almost a hopeless task, but the result is before your Excellency. My prolonged stay, the great expense necessarily attending my position* and the publications which I found it necessary to make, compelled me to draw on your Excellency for the sum stated in my draft in favor of Messrs. Markward & Co., of Paris. Permit me further to remark, that although I re¬ turned as soon as the performance of my duties and circum¬ stances would permit, I was absent eleven months, and compelled to incur great expense in my return by way of the West Indies. It is, perhaps, not improper for me to allude to the fact that the Commissioners of the Confeder¬ ate States Government were allowed $1,000 per month, and that they did not incur the expense of pamphlet and newspaper publication which fell so heavily upon myself. They were also provided with a Secretary and translator, while I wqp compelled to pay for those services out of my own purse. In conclusion, I must express to your Excellency my very great regret that in running the blockade at the mouth 10 of the Mississippi, I lost, with my baggage, all my corre¬ spondence, and all the vouchers for my expenses. I have the honor to be, with great respect, Your Excellency's most obedient servant, T. BUTLEK KING. A LETTER TO THE RIGHT HON. LORD JOHN RUSSELL, BY THE HON. T. BUTLER KING, COMMISSIONER FROM THE STATE OF GEORGIA. My Lord:—The undersigned, Commissioner from the State of Georgia, begs leave to present to your Lordship the commission which he bears from the Governor of that State, and to accompany it with the following memoir in explana¬ tion of the objects of his mission. It was foreseen by the Government of Georgia that the great political movement which was being inaugurated by the Southern States, must necessarily produce very impor¬ tant changes in their commercial intercourse, and that, with¬ out suitable and timely explanations, it was not reasonable to suppose the great manufacturing and commercial powers of Europe would comprehend the very great advantages presented for their consideration by the seceding States. It was, therefore, deemed proper to appoint a special commis¬ sioner for that purpose. But before proceeding to consider commercial questions, the undersigned desires, very briefly, to correct the mistakes wThich appear so generally to per¬ vade the European mind respecting the framework of the Government of the United States, the foundation on which it rests, the mode and manner of its formation, and to show that the Southern States had a perfect right to secede from the Union. The ideas which seem to prevail in Europe are that the States composing the American Union are mere departments or provinces of the Federal Government, and that every attempt on their part to leave the Union into which they voluntarily entered, each acting by and foritself as a sover- 11 eign State, is rebellion or revolution. The States created the Federal Government. It was not instituted to be their master, but merely their representative, clothed with cer¬ tain specified powers, and charged with the performance of certain clearly defined duties. When the thirteen American colonies of the British Crown achieved their independence, they were acknow¬ ledged by George III to be " free, sovereign and indepen¬ dent States." They had agreed to certain articles of con¬ federation under which they acted during the war of inde¬ pendence. From the peace of 17S3 to 1787 no change was made. In the lattar year each State elected delegates to a convention, for the purpose of framing a constitution to form a " more perfect Union." In that convention each State had one vote. The constitution framed by it contains only certain limited powers, and it provided that all power not granted was reserved to the States respectively. This constitution did not go into effect by authority of the con¬ vention or the force of its own provisions, but it was sub¬ mitted to the people of each State for their acceptance or rejection. It provided that when it should be adopted by nine States, it should go into operation in those States. If the other four States had not adopted it, they would not have been included in the form of government which it pro¬ posed. Some of the States delayed three years before they consented to join the Union. Georgia delayed action sev¬ eral months. Her Legislature passed an act calling a con¬ vention of delegates, to be elected by the people, to take into consideration the proposed constitution. That conven¬ tion, on the 2d day of January, 1788, passed an ordinance accepting the constitution of the United States. It was simply an act of the people of the State, which at that time they held, and have so held ever since, that they had the right, by the same process, at any time to repeal or rescind. The States of the North, feeling a strong desire for the protection of Government for their manufacturing and com¬ mercial interests, and knowing that such a policy was an¬ tagonistic to the interests of Southern States, have not ceased their efforts to give a latitudiuarian construction to the constitution, and to bring into the practice of the Gov¬ ernment the exercise of unlimited powers. This struggle has been in progress more than thirty years, during which time other questions of still greater moment have sprung up, and been artfully connected with this clamor for protection. During that whole period the Northern States have not ouly failed to perform some of their most sacred duties under the constitution, but have openly violated its- clearest provis¬ ions, thereby relieving the Southern States from all legal or moral obligation to remain longer in political connection with them. There never was any legal power to bind them 12 in the Union if they should see cause to leave it. For the purpose of presenting this matter in a perfectly clear light, I annex a copy of the ordinance of the convention of Geor¬ gia in 1788, accepting the constitution of the United States, and also a copy of the ordinance adopted by a convention of the people of Georgia in January last, repealing the ordi¬ nance of 1788. The action of the other States was the same as that of Georgia. The argument has been made in some quarters', that if the original States had the right to secede, the new States had not. This is erroneous. The power given by the constitution to Congress to admit new States into the Union, provides that they shall be admitte d on the same fo-oting, or terms, as the original States. I now come to the consideration of the commercial and financial questions. The people of England have been so long accustomed to regard New York as the great commercial emporium of the United States, and to form their ideas of American wealth and progress as being dependent entirely on the commer¬ cial prosperity of the Northern States, that it has, under the existing state of political events, become a duty, not only to the Southern States, but of the greatest possi¬ ble interest to the great manufacturing and commercial countries of Europe, that the causes which have produced this extraordinary accumulation of wealth and truly won¬ derful prosperity in the Northern States should be clearly stated, and the sources whence they have been derived dis¬ tinctly traced, to the end that the Governments of those countries may not hesitate to perceive how easily and rea¬ dily they may place themselves in the same relation, com¬ mercially and financially, to the planting States of the South, that has heretofore existed between the Southern and North¬ ern sections of the American Union. The natural want of fertility in the soil of the North¬ eastern States, and a climate so unfriendty to agriculture as to limit production to a scanty supply for home consump¬ tion, drove the people, at an early day, to seek profits in maritime, manufacturing and commercial pursuits. They, therefore, sought the early protection of the Government. Duties were laid on foreign tonnage coming into the ports of the United States, and foreign vessels were excluded from all participation in the coasting trade; and, as seamen were necessary to supply the increasing tonnage of the Northern States, large bounties were offered t© those who engaged in the cod and mackerel fisheries, on the plea that it was ne¬ cessary to establish a nursery or school for seamen for na¬ tional maritime defence. During the war with Great Brit¬ ain, which commenced in 1812, small manufacturing estab¬ lishments sprung up all over New England, and at the close of that contest, the proprietors of those works applied to 13 Congress for the enactment of a protective tariff. Under the pretext and plea that it would be wise policy to secure a home supply in the event of another war, and that without protection they could not compete with the skilled indus¬ try of' England and France. The South yielded, and the tariff was passed. The merchants of Boston and other Northern cities seeing thisfavorable opening for investment, immediately xhrew into it the capital which they had accu¬ mulated in the carrying trade previous to the war, thus bringing their wealth and numbers to the support and ranks of the protectionists, who, thus strengthened, were trium¬ phant and, as new branches of manufacturing industry sprung up, more protection was demanded, and one tariff act succeeded another, each more protective than the other, until 1828. The Act of that year was so violative of jus¬ tice to the Southern States, and of the true principles of taxation under the constitution, that the whole South was aroused to a spirit of resistance which threatened the very existence of the Government. The compromise tariff or 1833 calmed the public mind at the South, but it caused a feeling of resentment in the North, that has never ceased to seek revenge, and a restoration of the high protective sys¬ tem ; and it is this financial question which underlies, and has not ceased to affiliate itself with every other cause of agitation, until it has finally produced the disruption of the Government, and which came near producing the same re¬ sult nearly thirty years ago. The discussions connected with this subject called forth the bitterest invectives against the South from stump orators, the subsidized press, and the pulpit, until the whole Northern mind has become frantic with denunciations against what are called the aggressions of the South ; while, in fact, the South has not been guilty of a single act of aggression against the North, but, on the contrary, has performed every constitutional duty, and has suffered immensely by these grasping exactions of the North. If evidence were wanting to prove that the financial ques¬ tion underlies the agitation at the North against the South, the passage of the Morrill Tariff immediately after the se¬ cession of the Cotton States, leaving the Protectionists with a clear majority, would be sufficient. The compromise tariff of 1833 provided for a gradual reduction of customs' duties, annually, until 1840, when no more than 20 per cent., ad volorem, was to be collected. In 1842 the protec¬ tive system was revived. The protective principle was again overthrown by the ad volorem tariff of 30 per cent, in 1846, which was reduced to 24 per cent, in 1857. Since that time the Protectionists have allied themselves to every lanatical faction in the country. They have offered free farms in the western territories to the German and Irish emigrants, and to give " everything to everybody," to obtain 14 control of the Government. The South has presented the great barrier to the accomplishment of their purposes. The South seeing, in the election of Mr. Lincoln, thatt.he whole North had become united in a war of aggressive opinion, to be followed by aggressive legislation, which, if necessary, was to be supported and enforced by arms, and finding it useless to prolong the contest, has withdrawn from the Union. The pecuniary profits and advantages which the North¬ ern States have derived from the fiscal operations of the Federal Government cannot be correctly-ascertained or es¬ timated. We can only glean from the census and other authentic sources some prominent facts and results. We find that, in consequence of the protective policy of the Government, the cotton manufacture in the Northern States, which in 1820 amounted to only $4,048,549 in value, had increased to $52,501,853 in 1850, an increase of thirteen hundred per cent. It is estimated that it now amounts to over $75,000,000 annually. The total value of manufac¬ tures in the Northern States in 1S40 was $347,948,162. In 1850 they amounted to $854,626,679, showing an increase of about two hundred and fifty per cent, in ten years. The returns under the census of I860 have not yet been published, and, therefore, we have no official data to show the general state of industry in the country. The States of New York and Massachusetts gave State returns for 1855, and those returns, as compared with 1S50, show wonderful progress. The value of all manufactures in Massachusetts in 1850 was $151,137,145, and in 1855 they amounted to $295,820,- 000, an increase of almost two hundred per cent, in five years. The manufactures of New York amounted in 1850 to $99,904,403, and in 1855 to $317,428,331—showing the prodigious increase of much more than three hundred per cent, in five years. The census of 1850 shows that those two States produced more than one half of the whole Amount of Northern manufactures. If they hold the same proportion now, the Northern manufactures will reach $1,- 230,000,000, and of these the sales South will amount to about $300,000,000. This truly astonishing development of manufacturing industry has grown up in the Northern States since the peace of 1815, under the influence of the protective system, which, by imposing high duties on for¬ eign goods, operated as a bounty on all domestic fabrics, and gave to Northern manufacturers control of the Southern market at an average profit of twenty-five per cent, on the sale of their manufactured goods. It has been estimated on data believed to be correct, that the average consumption of manufactures of all kinds in the Northern States is $60, and in the Southern States $5(X 15 per head of the population. The difference is caused by the climate. The census of 1860 shows the population of the Southern States to be 12,315,123. ^ Their consumption would therefore be... $615,756,150 The census of 1850 states the value of domestic manufac¬ tures in the Southern States to'have been $164,579,937 Estimated increase 40,000,000 Amount or value of Northern manufactures sent South in 1859 300,000,000 504,579,937 Amount or value of European goods, impor¬ ted mostly through New York, and sold South at a profit of at least twenty per cent 111,176,213 Total $615,756,150 The census of 1850 states the value of agri¬ cultural products of the Southern States to have been 528,571,103 The cotton crop was.. $101,834,616 The cotton crop of 1859 was sold for 233,500,000 Increase over 1850 131,665,384 The sugar crop of 1859, inclu¬ ding molasses, sold for.... 31,399,241 The value, as stated in the cen¬ sus of 1850, was then only, 16,599,310 Increase in ten years 14,799,931 Increase in the value of the crop of tobacco, 12,350,000 Increase in the quantity and value of grain and other agricultural products since 1850, 125,000,000 Total value of agricultural products in 1859, $812,386,418 The census of 1850 shows that of those grains which are common to all sections, the Southern States produced in value equal to $30, and that the Northern States produced in value equal to only $25 per head of the whole popula¬ tion. The New England States, which are so largely manufac¬ turing, do not, with the exception of a small quantity of wool, produce any of the raw materials which they require, nor do they produce coal, or iron, or wheat. The census of 1850 shows that the value of their agricultural products is only $15 per head of the population, a quantity unequal to the support of life. An able writer in Boston states that 16 in 185S one-third of all the flour and five-sevenths of all the corn sold in Boston was received from the commercial ports of the Southern States. In addition to the great sta¬ ple articles, cotton, tobacco, and s ugar, the Southern States send North vast quantities of Indian corn, rice, sweet pota¬ toes, hemp, naval stores, timber, wool, flour, wheat, live stock, and various other products. The census of 1S50 gives the number of live stock in the Southern States at that time. . . . 40,8^3,727 In the Northern States 36,409,134 Difference in favor of the South 4,414,593 The concentration of commerce and trade in the city of New York, and the extraordinary development of manufac¬ turing industry in the Northern States, produced by the protective system, has caused the annual migration from the South to the North, in summer, of men of business of all classes, from the shipping merchant to the country shop¬ keeper. The summer and autumn months are also devoted to traveling and amusement by the planters, with their fam¬ ilies. The estimate has been made, on well authenticated data, that more than one hundred thousand people visit the Northern from the Southern States annually during the summer months, at an average expense of $500 each. The account between the North and the South for 1859 may be thus stated : The South sent North Bills and raw materials.... $262,562,394 Other produce, 150,000,000 Money expend¬ ed by travel¬ ers 50,000,000 The North sent South Domestic go'ds, $293,360,394 Imported do 116,000,000 Interest, bro¬ kerage, com¬ mission, &c., 53,200,000 462,562,394 $462,562,394 This statement approximates the vast amount of trade and intercourse between the Northern and Southern States. An examination of the census shows that Northern com¬ merce and navigation, like Northern manufactures, have been founded upon, and grown up with, Southern agricul¬ ture. In the year 1790 the exports of the United States amounted to only $19,666,101 The cotton culture had just com¬ menced, and the export of that amounted to only $42,285 Tobacco 4,349,567 Rice 1,753,796 6,145,648 17 The three great Southern products forming but about one- third of the entire exports. The tonnage of the country had not begun to be influenced by the cotton crop. The total exports in 1821 amounted to $4-3,671,894 Cotton $20,157,484 Tobacco 12,809,000 Rice 1,494,387 34,400,871 More than three-fourths of the entire exports. The tonnage in 1820 was 1,119,736 tons. In 1836 the exports were $100,916,680 Cotton $71,284,925 Tobacco 10,068,640 Rice 2,548,750 83,902,315 tons. Tonnage 1,626,719 In 1859 the total exports were $278,392,080 Cotton $232,434,923 Tobacco 21,074,038 Rice 2,207,148 255,716,109 The tonnage had increased to 3,977,970 tons. For the purpose of making this paper as short as possi¬ ble, the three leading articles of export only have been ta¬ ken. A very large amount of timber, naval stores, flour, and grain have also been exported from the South. The above figures will show in a strong light that the shipping interest of the Northern States has been built up on the agricultural products of the Southern States, protec¬ ted as it has been by the tonnage duties on foreign shipping, and having the entire monopoly of the coasting trade. The estimated amount of freight earnings on the move¬ ment of this vast quantity of produce in 1859, and the re¬ turn cargoes, is $42,000,000. The number of Northern vessels employed in Southern ports for the year ending the 30th June, 1858, was 2,526, measuring 1,260,798 tons, and manned by 37,421 seamen. A most remarkable evidence that the increase of North¬ ern tonnage has depended on the increase of the cottoncrop is shown in the two periods of 1830 and 1859 : In 1830 the tonnage of the Northern States 872,578 tons. The cotton crop of 1830 was 870,415 bales. In 1859 the tonnage was 4,481,436 tons. The cotton crop of 1859 was 4,500,000 bales. 2 18 Other intermediate periods might be given to show that the increase of tonnage has kept pace with the increase of the cotton crop. There cannot be a stronger evidence presented of the solvency and good faith of the people of the Southern States than the extent and cost of their railways, and the solvent condition of the companies which have constructed them, as compared with the Northern companies. The South has constructed 9,053 miles of railway at a cost of $24,100 per mile, or total $221,S57,503, and there are but three com¬ panies that have been delinquent in the payment of inter¬ est, and that only on $2,025,000 of their bonds. The rail¬ ways in the Northern States have cost an average of $£0,- 000 per mile, and there are thirty companies that have failed to pay interest on their bonds, amounting to $107,120,0 00. The annual profits which the Northern States derive from their commerce and intercourse with the Southern States may be thus stated :— Profits on domestic manufactures of all sorts sent South, $75,000,000 Profits on foreign importations sent South,.. 25,000,000 Expenditures of 100,000 Southern travellers annually, in the Northern States, at an average of $500 each 50,000,000 Interest, brokerage, and commissions on the vast amount of commercial transactions between the two sections of the country, 63,000,000 $213,000,000 ^ When we consider that in 1816, at the commencement of the protective system, the Northern States were almost destitute of agricultural products for exportation, that their coal and iron mines were almost unknown, and that they had, comparatively, little commerce except the fisheries and the carrying trade, and from that period their manu¬ facturing and commercial industry have increased and kept |>ace precisely with the growth of Southern agriculture, we -caa readily perceive the causes which have produced the great accumulation of wealth in the Northern section of the Union. It has been shown that through the instru¬ mentality of that system the Northern States have secured to themselves great profits on all branches of their indus¬ try, and the entire monopoly of Southern commerce, both foreign and domestic. The secession of the Southern States has severed at a single blow their financial and commercial, as it has their political connexion with the Northern States. Northern manufactured goods, which have hitherto been protected by high tariff's, must hereafter, if admitted to Southern 19 markets, pay the same duties as European merchandise Northern shipping will no loiager have the exclusive monop oly of the coasting trade of the Southern States, or be pro tect.ed by high tonnage duties in Southern ports agains foreign competition. Southern commerce with Europe which lias hitherto been forced through the port and cit1 of New York must hereafter pass directly between th Southern ports and those of Europe, augmented by thi vast amount of exchangeable commodities which havi hitherto been monopolised by the Northern States unde the operations and effects of the protective system. A very large augmentation of the wealth of the North €rn States has been caused by the fiscal operations of th< Government. The revenue has been derived from Custon duties on imports, and consequently paid in Northern citie —mostly in New York—and the disbursements of the Gov ernment, amounting to about eighty millions of dollars pe annum, have been made in the Northern States. It is tin •clear perception on the part of the Northern people tha the secession movement will deprive them of the advan tages they have hitherto enjoyed under the effects and in fluences of the protective system that has caused the won derful excitement and enthusiasm which have been exhib ited in response to the war measures of President Lincolr The very great facility with which cotton can be wrough into various fabrics, from the finest and most fashionabl textures to the coarsest and most durable articles, to sui the taste, comfort and convenience of all classes of all na tions, has caused its production and manufacture to becom one of the necessities and wonders of the age in which w live. It is not surprising, therefore, that great anxiet; should be felt in the principal manufacturing countries c Europe, where so much capital is invested in manufactui ing establishments, and so many people are employed ii them, respecting a constant supply, sufficient to meet th increasing demand, and the fear seems to be entertained especially in England, that the cotton-growing region c the Southern States of America will ultimately fail to mee the increasing wants of the commercial world. A ver ■brief statement of facts, derived from official sources, wii be sufficient, it is believed, to satisfy the most sceptica that such fears are without the slightest foundation. Ther are ten States in which cotton is successfully cultivated- viz., North Carolina, South Carolina, Georgia, Florid* Tennessee, Arkansas, Alabama, Mississippi, Louisiana an Texas. The area of those States is 706,288 square miles or 452,024,320 acres. The average product of cotton pe acre is estimated at half a bale of 500 lbs. The crop c 1859, the largest yet made, was 4,500,000 bales, which a ithe average product required only 9,000,000 acres. It ba 20 been estimated that one-half the area of the States named, is suited to the cultivation of cotton ; but for the purpose of avoiding all possible criticism, I will say one-third, or 150,674,773 acres, which at half a bale to the acre, will produce 75,337,33S bales of 500 lbs. each, and the entire weight of which would be 37,668,673,000 lbs. Ii we as¬ sume that the entire population of the earth amounts to 1,200,000,000, that quantity of cotton would give 30 lbs. to every man, woman and child on the face of the globe. This would be more than three times as much as is con¬ sumed in England, and nearly eight times the quantity con¬ sumed in France per head of the population. The con¬ sumption of Great Britain is stated to be 9 lbs., and that of France to be 4 lbs. per head of the entire population. If the consumption of the whole people of the world were to be brought up to the present consumption of France, they would require but 9,600,000 bales, or less than one-eighth part of the crop which the cotton States could produce. If the consumption were to reach that of Great Britain, it would require 21,600,000 bales, or a little more than one- fourth of the capacity of the production of the Cotton States. I will now consider the question of labor to be employed in the cultivation of cotton to meet this constantly increas¬ ing demand. The census of 1860 gives the slave popula¬ tion of the ten cotton-producing States above named, to be 2,941,609. The average number of laborers, or those fit for service, is two-thirds of the whole; there are, therefore, in those States 1,961,072, suitable to be employed in some, kind of service, and leaving out one-third as the number of young, old and infirm. The average number of bales of cotton to the hand, is stated to be eight; it therefore re¬ quired but 562,500 laborers to produce the 4,500,000 bales sent to market in 1859. These figures show that there were 1,398,572 laborers in those States not employed in the cultivation of cotton. If we deduct 150,000 employed in the production of sugar and molasses, we still have 1,248,572 not employed in the cultivation of cotton or cane. These are occupied in all the other various departments of service. The increase of the slave population is four per cent, per annum, or one hundred per cent, every twenty- five years. The increase will, therefore, be forty per cent, in the next ten years, or 1,166,643 of the whole number, which will give an increase of 774,328 laborers, and 211,- 828 more than were employed to produce the crop of 4,500,000 bales in 1859. The crop of cotton was increased one hundred per cent, from 1850 to I860, and, should the demand continue, the product may be augmented by the natural increase of the present population of the cotton- growing States, so as to reach 9,000,000 bales in 1870, or 21 one hundred per cent, above the crop of 1850, and this in¬ crease of production may be continued to meet the demand to an indefinite period. Ihe cotton-growers of the Southern States do not regard with the slightest anxiety or jealousy the efforts that are being made to produce cotton in Asia, Africa, Australia and South America. If success attends the movements of the Cotton Supply Association of Manchester, the result faill be simply to enable the people of those countries to consume a quantity of manufactured goods in proportion to the quality of cotton produced and exported. It is a perfectly well-ascertained fact that the Cotton States of the Southern Confederacy contain the only cotton-growing re¬ gion in the world where more cotton is produced than is consumed in manufactured goods; therefore, all countries that do not produce cotton must depend on those States for that material to supply their home consumption. The hand labor of India and China cannot compete with the skilled industry of the manufacturing countries of Europe. India now receives from England almost twice the number of pounds of manufactured goods that she sends of raw cot¬ ton to England. In 185S England received from India 1-32,722,575 lbs. of raw cotton, and sent to India 223,000,- 000 lbs. of yarns and manufactured cotton goods. As the trade of China is now thrown open, the fabrics of her hand- looms must give place to the machine goods of western Europe. If her consumption of cotton shall equal that of France, it will be 1,440,000,000 lbs., equal to 2,SS0,000 bales, of 500 lbs. each, per annum. Those who imagine that the half-civilized people of India, or the savage tribes of Africa, can'compete with the South¬ ern States of America in the cultivation of cotton, might as well suppose that the system of agriculture of Eng¬ land or France could be introduced into either of those countries. As much science is required and employed in the cotton culture as in any branch of agriculture in the world. But it is said cotton grows on trees in the tropics! So do grapes; but does it follow that the people of India and Africa can rival those of France in the cultivation of the vine. With improved implements and machinery, and the employment of horses, mules and oxen, the quantity of cotton produced, to the hand or laborer, has been more than doubled within the last twenty-five years. The qual¬ ity has been improved by the selection of seed, and the improvement of the soil by fertilizers and 8cieat*ific culture. Some idea may be formed of the energy with which South¬ ern agriculture is prosecuted from the number of animals -employed. The census of 1850 gives the number of horses, mules and oxen in the Southern States, at that time, to Jbave been 5,396,954, while in all the Northern States there 22 were but 3,172,593. The quantity of food provided by Southern planters, as compared to the supply for Northern laborers, is shown in the same census. Swine are the greatest article of animal food in both sections. There were 20,008,964 in the Southern States, and but 10,344,26-5 in the Northern States. Such has been the improvement in the cotton culture since 1852, the date of the compila¬ tion of the returns under the census of 1850, the number of acres which each laborer can cultivate, and the produce per acre, has been largely increased, and the quality of the staple or fibre very much improved. The cotton which was produced thirty years ago would not now be marketable. Under the improved system, a laborer will now cultivate twenty acres of cotton with as much ease as he formerly cultivated ten. Immense tracts of country that, ten years ago, were not considered suitably fertile for the profitable production of cotton, are being cultivated with perfect suc¬ cess. The area of land now regarded as valuable for cot¬ ton is more than five times larger than that stated in the census returns of 1850. Cotton cannot be successfully produced further South than where there is sufficient frost to destroy the insects, which are so destructive to the plant in the tropics, and which, many years ago, caused its cultivation in the West Indies to be almost discontinued. The Northern limit to which the culture may be carried is near the thirty-fourth degree of north latitude. That, however, depends on the elevation of the surface above the level of the sea—the mountain range being too cold. The Southern limit of safe and profitable culture is from the twenty-ninth to the thir¬ tieth degree of northrlatitude. These limits give a belt of about five degrees of latitude in width, extending from the Atlantic coast to the commencement of the elevated plains east of the Rocky Mountains. Cotton cannot be success¬ fully cultivated in any region where there is a wet and dry season. The extremes of rain and drought are equally fatal to the production of the staple or fibre. Tropical rains cause the plant to grow too large, and either extreme wet or dry weather will cause the blossoms and young bolls to drop off. Therefore, climate is one of the first consider¬ ations in the selection of a region suitable for the cultiva¬ tion of the cotton plant. That of the Cotton States is peculiarly suitable for that purpose. The prevailing winds in spring and summer, charged with moisture, flow inland from the Atlantic, and are met by cold currents of air from the Alleghany and Rocky Mountains, which are attracted by the radiation of heat on the plains. The contact causes frequent showers of rain to fall throughout the spring, summer and autumn, in sufficient quantity to preserve a healthy growth ami early maturity of the plant, without 23 endangering its product of cotton. There is sufficient frost in winter to destroy the insects, which are so fatal in the tropics. There is no part of the earth's surface so favora¬ bly formed and situated for the production of cotton. The States forming the Southern Confederacy are the greatest cotton and tobacco producing regions in the world. They also produce rice, timber, naval stores, the cereal grains, and edible roots, in great variety and inexhaustible quantity. Their exports may be augmented to any amount to meet the wants of the manufacturing and commercial world. Their consumption of manufactured merchandise is probably three times as great as any other agricultural people, of equal number, and will be augmented as their exports increase. This vast commerce, which has hitherto been controlled by the.Northern States through the instrumentality of the protective system, and the fiscal operations of the Fed¬ eral Government, is now offered to the manufacturing and commercial nations of Europe. Will they accept it, or will they permit Mr. Lincoln's blockading squadrons to forbid the intercourse? The Wasnington Government declares its intention to be only the enforcement of the revenue laws; that is, the col¬ lection of customs duties. This declaration carries on its face the stamp of falsehood. Mr. Lincoln and his advisers cannot be so ignorant as not to know that it is impossible to collect the revenue at sea, simply because there will not be any one who will come there to pay it. Every vessel that is stopped and detained at sea by a blockading squadron forfeits her policy of insurance. Her voyage is broken up, and she is captured under the pretext that her captain or supercargo must pay duties under the Northern tariff when they have no money or authority to do so; nor would ifc be possible to ascertain the description and quantity of the goods comprising the cargo without opening every package, nor even then without the invoices. The limited space of a ship's deck is too' small for any such process, and, besides, the blockade is established under the pretext of enforcing the law. That is absurd, because the law requires that every cargo shall be landed within a cer¬ tain number of days after the arrival of the ship. There¬ fore, the blockade is not only a violation of the laws of nations and the rights of neutrals, but every ship that is stopped and overhauled for the purpose of collecting duties on the cargo is just as much a capture as she would be were she stopped in the middle of the Atlantic by a pirate4 and required to pay a ransom. It has been shown that the political difficulties between the Northern and Southern States originated in the claim 24 for protection in the North and resistance to it in the South ; and although its advocates have enlisted in their cause every faction, and allied themselves to abolition fa¬ naticism, and trampled the constitution under foot to meet the demands of their allies, their aim has constantly been, at any and every hazard, to establish their policy, for all time, on the legislation of the country. In this they have failed as far as the South is concerned, but they have seized the first moment of their power to fix it on the North. The Confederate States have been equally prompt in adopt¬ ing the principles so long advocated by them, and have provided in their constitution that protection shall not be given or extended to any particular class of industry. This important provision will secure uniformity and stability in all legislation regulating their commercial intercourse with foreign nations. The movement of Northern and European merchandise south from New York and other northern cities having been cut off, the Confederate States must hereafter look to Europe for supplies ; and if the growing crops of cotton, tobacco, and other products, are to be exchanged for Euro¬ pean goods, it is of the utmost importance that an un¬ checked and unrestrained intercourse should be immediate¬ ly established between southern ports and those of Europe. The summer, autumn and winter supplies are wanted be¬ fore the crops come in, and if they can be sent forward in time to meet the wants of the country, the export of specie to pay for them next winter may be avoided. It will read¬ ily be perceived that the consumption of the country must go on gradually, and that time is required to distribute supplies to a whole people inhabiting a country of such vast extent. The attempt is being made by Mr. Lincoln's administra¬ tion to show that the Confederate States are not strong enough to resist the power of the Northern States. The commercial resources of the former have been stated in this communication. The census of 1860 shows that the Confederate States, including Kentucky and leaving out Missouri, Maryland and Delaware, contain 1,254,000 men able to bear arms, under forty-five and over eighteen years of age. This force is sufficient to assure European powers that the Confederate States are strong enough to maintain their independence against any number of troops the North may bring into the field against them. In conclusion, it is not necessary for me to say that a subject of such magnitude could be better treated in a vol¬ ume of hundreds of pages ; but in addressing a Minister of your knowledge and intelligence, I deemed it more in ac- 25 cordance with your position and ray own duties to limit this communication to as simple a statement of facts as possible. I have the honor to be, with great respect, Your Lordship's obedient servant, T. BUTLER KING, Commissioner from Georgia. London, May, 1862. COPY OF LETTER TO HIS EXCELLENCY COMTE DE MORNY FROM T. BUTLER KING. Paris, 7th May, 1862. To His Excellency the Minister of Commerce, Sir.—Permit me to lay before your Excellency some considerations in favor of the immediate establishment of lines of Steamships from the ports of France to those of the Confederate States of America. In a communication which I have had the honor to ad¬ dress to the Minister of Commerce, a copy of which I beg leave to hand herewith to your Excellency, I have stated the causes which have led to the concentration of the com¬ merce of the late United States, in the city and port of New York. The Secession of the Southern States has deprived that city of the control of Southern commence and trade, and throw them open to European enterprize. The vast amount of Southern exports and imports, the great number of Southern travellers who have hitherto spent the warm months in the North for health, pleasure, or business, but who will now be attracted to Europe ; and the correspondence which must necessarily grow out of such extensive commercial and personal intercourse, will supply a sufficient amount of traffic to insure profitable em¬ ployment of several lines of Steamers from European ports, and especially those of France, to the Confederate States. In addition to those inducements, a low tariff, on the prin¬ ciples of free trade, has been adopted, all tonnage duties have been repealed, and the coasting trade thrown open to foreign vessels. These advantages contrast very strongly in favor of Southern ports, when compared with the high protective tariff of the Northern States, intended to exclude the im¬ portation of foreign merchandize, the tonnage duties which impose a heavy tax on foreign shipping in Northern ports, and the laws excluding foreign vessels from the coasting trade. 26 The Cunard lines of Steamships from Liverpool to Ne York and Boston, and the lines from New York to Hav and other European ports supplied as much tonnage that description as could be profitably employed in tl commerce of New York when in the full tide of its pro penty. But since the Southern States have seceded, ar cut off all intercurse with the Northern States, and thereb depriving that city of the vast amount of Southern con merce which she has hitherto controlled, it is quite certai that all those steamers cannot be profitably employed, an that any new line from a French port to New York woul not be profitable, and probably result in failure, while it very clear that commercial intercourse with the Confedei ate States presents an unoccupied field of almost unlimite extent for the employment of both Steam and . Sailing ves sels. The exports of the Confederate States will amount t near three hundred millions of dollars per annum, and thei imports must approach a similar sum. There can be n doubt, therefore, of an ample supply of freight for all ves sels employed in the direct trade between the ports o France and those of the Confederacy. The accelerated movements in commerce caused by thi construction of railways and the employment of oceai steamers must give to France a decided control over thi import and export trade of the countries situated to th< east and north of her, and also over all mail matter con nected with it. During the winter months when commerce is most active and the supplies of cotton and tobacco are arriving fron the Southern States, the ports of the Baltic are closed bj ice while those of France are open; The lines of coasi steamers from the ports of Holland and Belgium to those 01 France will become valuable feeders to her lines of oceai steamers. Previous to the construction of telegraph lines, all letters passing between the continent of Europe and America wen carried.in the Liverpool and New York steamers, and con¬ tributed largely to their support. But now the telegram announces the principal items oi news long before the steamers arrive at their port of desti¬ nation, and renders the rapid transmission of letters much less important. The establishment of direct steam com¬ munication from the ports of France to those of the Con¬ federate States will therefore, afford a means of transit suf¬ ficiently rapid for the transmission of the mails. There will also be a considerable saving of postage in the direct line as compared to the circuitous route by way ol New York and Liverpool. There is a very strong feeling of sympathy throughout 27 the Southern States for France. The State of Louisiana, as you are well aware, was for many years a French Colony, and more than half the people are the descendents of French immigrants. In many parts of the State, the French lan¬ guage only is spoken. In South Carolina the French ele¬ ment is strong. The Southern climate is better suited to the consumption of French wines and fabrics than that of the Northern States. In fact most of the French wines that are imported into New York are sent South. Steamships have become a necessity in the commercial transactions between great exporting and importing coun¬ tries, and especially in the cotton trade, all bills of lading, policies of insurance, bills of exchange and samples of cotton, are sent by them. The early establishment of the Liverpool and New York lines of steamers has largely contributed to the increase of British commerce with America. Liverpool on one side of the Atlantic and New York on the other, became the great points of attraction. British merchants will not be slow to perceive that the secession movement in the South has deprived New York of its con¬ trol over Southern exports and imports, and they will soon turn their attention South. Cannot France be persuaded to take the lead and reap the advantage ? To accomplish that object, I beg leave, most respectfully, to propose that the law authorizing a line from Havre to New York shall be so changed or amen¬ ded as to require the steamers to proceed from Havre direct to Savannah, Georgia, and that the line authorized from Bordeaux to the West Indies, shall be extended to New Orleans. Savannah is situated near the thirty-second degree of 'North latitude, and is now, except»New Orleans, the largest exporting city in the Southern States. The railway system extending westwardly from the city, has been completed to Montgomery, Alabama, and is nearly finished to Vicksburg on the Mississippi river, a distance of more than seven hun¬ dred miles. Northwestwardly the railways extend to Mem¬ phis in Tennessee, on the Mississippi, a distance of near nine hundred miles ; and Soutliwestwardly, a railway is al¬ ready finished to the Southern border of the State, more than tvv° hundred miles, where it will unite with the sys¬ tem of Railways in Florida, and will soon be completed to Mobile in Alabama. From the main trunk leading West through the very heart of the cotton region, there are va¬ rious branch railways extending Northwest and South- west. These lines are all either completed orin rapid course ol construction, and will, with their connections, give to Sa¬ vannah an extent of railway communication equal to that 2S of any city on the continent, and bring to her port at least two millions bales of cotton, large quantities of flour, to¬ bacco, timber, naval stores, and a great quantity and varie¬ ty of other exportable products, and distribute to the inte¬ rior the imported merchandize received in exchange. The distance from Havre to Savannah is about three hundred miles further than it is from Havre to New York, or one day's run of a steamer. But as the sailing distance from Savannah to New York is seven hundred miles, there will be a saving of four hundred miles in the direct voyage as compared with the circuitous route by way of New York. Savannah is situated on the right or Southern bank of the river fourteen miles from the Ocean. A vessel drawing twenty-three feet can enter the channel and approach with¬ in a few miles of the city. Seventeen feet can be carried to wharves, where large ships are usually loaded to that depth, and the cargoes com¬ pleted by lighters in the deep water below. The extension of the West India line to New Orleans, will afford the people of that city and all the Southwestern States of the Confederacy, the means of direct personal and commercial communication and intercourse with France. The British and West India mail contract was originally made to extend to New Orleans, but the contract authori¬ zed by Congress for a line from New York to New Orleans cut off the British line and limited its movements to the West Indies and the ports of Mexico. The lines of steam¬ ers from New Orleans to all the Gulf ports of Mexico and Texas already established, will serve as feeders to the Bor¬ deaux and New Orleans line. Vessels drawing sixteen to seventeen feet can cross the bar at the mouth of the Missis¬ sippi and proceed to New Orleans. On the opening of such an immense export and import trade as must immediately commence between Europe and the Confederate States, no reasonable doubt need be enter¬ tained respecting the profitable employment of steamships, but it may be useful to state some of the items of traffic which they must control. All the correspondence connec¬ ted with near three fourths of the export and import trade of the late United States must hereafter be carried in steamers between Europe and Southern ports. That cor¬ respondence has hitherto contributed largely to the support of all the lines employed between Europe, New York and Boston. In my communication to the Minister of Commerce, I have stated the estimated number of Southern travelers, who have hitherto visited the Northern States, to be. one hundred thousand annually. Now if we suppose that one fifth part of thatenumber, or twenty thousand will come to Europe and return at a cost for passage of one hundred and 29 thirty dollars each way, we have the sum of $5,200,000 for passage traffic alone. When to this is added the postages for mail matter, and full freights both ways, there would seem to be no possible doubt that those who establish the first lines of steamers, and thus get possession of the trade by proper arrangements with railway companies for a con¬ stant supply of freights, which can easily be made, must reap a rich reward. Respecting a supply of the best coal I will mention that the Company in Baltimore which supplies the Cunard stea¬ mers at New York, has offered to deliver the same kind of coal in Savannah at the same price, namely $4.50 per ton. COPY OF LETTER TO THE MINISTER OF FOREIGN AFFAIRS FROM T. BUTLER KING. Paris, 11th July, ]861. To His Excellency the Minister of Foreign Affairs, Monsieur.—The undersigned has been commissioned by His Excellency the Governor of Georgia to lay before His majesty the Emperor a statement explaining the commer¬ cial relations hitherto existing between the Southern and Northern States of the late American Union. That he has done in a letter which he has had the honor to present to His Excellency the Minister of Commerce, but he feels con¬ strained to believe that he will fall short of the performance of his whole duty, if he fails to call the attention of your Excellency, who is charged with the important duty of su¬ perintending the foreign relations of His Imperial Majesty, to some facts and considerations connected with the pres¬ ent condition of Affairs in America. As your Excellency is undoubtedly well acquainted with the frame work of the Government of the late United States,. it is not necessary to recite facts and arguments to prove that the Federal Government was formed and adopted by the States, each acting for itself in its sovereign capacity, and that the right to secede from the government thus form¬ ed has ever been held by the States, as a remedy against oppression. Therefore the Southern States in withdrawing from the Union, have simply exercised that reserved right; and the war which the government at Washington is now waging against them is intended to be a war of conquest and subjugation under the absurd pretext of preserving the Union. The Government of the United States was foun¬ ded on the great fundamental principle that it should rest, and could only exist on the consent of the governed, or of 30 the States which created it. Therefore the seceding States are not justly chargeable with rebellion. Mr. President Lincoln, commenced the wrar by declaring his purpose to be only the collection of Custom duties on imported merchandize, and the reoccupation of the captur¬ ed forts. Instead of confining his military movements to the accomplishment of those objects, he has blockaded the whole Southern coast, thereby excluding all commerce, without attempting to recapture the forts, and invaded Virginia with an army of an hundred thousand men. Mod¬ ern wars have been made for maintainance of some violated principle or clearly defined right. In the progress of his measures Mr. Lincoln has violated every principle of the Constitution under which his Government exists, and must be regarded as engaged in a devastating war of conquest in defiance of all right and justice, and in violation of his own declarations and pledges. He has therefore forfeited all claim to the forbearance or sympathy of the great Euro¬ pean powers whose policy has been the protection of right, the promotion of civilization, and the extension of com¬ mercial intercourse. It Mr. Lincoln has no right or just cause to prosecute this war, have not France and England, whose interests will be very much disturbed and injured by it, a right to require that it shall not disturb their relations with the Confederate States ? Can the governments of France and England permit this war to continue until it shall have destroyed the annual pro¬ duct of three hundred millions of dollars in value of com¬ mercial exchange'? Does not the industrial pursuits of their own people press upon them the early and grave con¬ sideration of this important question ? Is not the time rapidly approaching when France and England will find it due to their position as great commercial powers, interested in keeping open the channels of trade, to interfere and dis¬ perse the blockading squadrons of Mr. Lincoln? It would seem to be clearly the policy of France and 'England to look with no disfavor on the separation of the Southern from the Northern States of America. If that is so, it would seem to be equally clear that the separation should be accomplished wTith as little delay, and damage to the in¬ terests of the former as possible, and that they should come out of the contest with their capacity for production unim- pared. But the Government at Washington has had the audacity to say to France and England "hands off," this is our quarrel, and do you not dare to interfere even with the expression of an opinion ! A man in the middt of a city might as well claim the right to set fire to his house and say to his neighbors it is no affair of yours, have I not a right to deal as I please with my own ? This assertion of 31 right would not secure the lives of persons in adjoining apartments ; nor will this absurd claim of right on the part of Mr. Lincoln satisfy the demands of the manufacturing and commercial industry of France and England. These observations are not prompted by the slightest apprehen¬ sion that the Confederate States will not be able to resist, successfully, the incursions of the Northern hordes, but they are made for the purpose of presenting the conduct of the Government at Washington in its true light, and of show¬ ing that if this war progresses for a long time, it must be very injurious to the interests of the commercial world. The cotton crop will soon be coming to the places of ex¬ portation, and it is as necessary to the working of the spin¬ dles and looms of France and England, as bread is to feed those who operate them. Has Mr. Lincoln a right to for¬ bid the supply of either"? and if he does, would it not be just cause for the stringent measures of protection on the part of those wrhose interests will be so largely compro¬ mised ? As I have shown in a letter which I had the honor to address to His Excellency the Minister of Commerce, this contest in America originated in the Tariff policy of the Northern States, and that this war has been inaugura¬ ted, and is being prosecuted for the purpose of compelling the Southern States to submit to the dictates of that policy. It is, therefore, a question which addresses itself immediate¬ ly to the material interests of France and England, and must ere long be felt in all their industrial pursuits. The Northern States have been seeking for many years, through the instrumentality of that policy to control the commerce and manufactures of the world. This they cannot hope to accomplish unless they can subjugate by fraud or force the great staple producing States of the South. This war is, consequently, a war on the industry of France and England under false pretenses. I have the honor to be your Excellency's most Ob't Serv't., T. BUTLER KING.