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American affairs in Europe.

the New Mediation Project. Our foreign advices by the Arabia represent that the recent news of Federal disasters before Richmond, and of Confederate successes in the Southwest, have given a new impetus to the mediation movement in England and France. We present some extracts this morning which will be found interesting:

[from the London correspondent of the New York Express.]

I learn that the Emperor of Russia has made a personal appeal to President Lincoln to come to a compromise with the South. Baron Brunow has communicated this to the British Cabinet, and also to the Emperor of France. M. Thouvenel has left London for Vichy, to convey Earl Russell's answer to the Russian communication to Louis Napoleon. It is this: If the Government at Washington refuse to listen to the proposition of the Czar, then England and France will jointly interfere in behalf of peace. Friendly mediation will be first proposed; if refused, recognition of the South and intervention, or breaking the blockade, will follow.

The increasing distress caused by the ‘"cotton famine,"’ which is now stirring Parliament, and all England, is but another form of the mediation pressure. A million of people are starving, for want of the raw material, of which the war deprives them, for want of the Southern market for manufactured goods now sealed by the blockade. --This agony cannot be much longer endured neither in England nor France. Louis Napoleon has enough to do in Rome, and in Mexico, and he will be compelled to take steps to appease the suffering and discontent occasioned by the American embargo.

The French press on Mediation, &c.

The Paris correspondent of the New York Commercial writes under date of July 25th:

‘ "The French secession papers insist upon construing Lord Palmerston's late speech against mediation in America as meaning that the ministry is paying the subject attention with a view to a mediation, while the liberal journals, on the contrary, construe it to mean that the time has not yet come for such a movement, that they will watch for it, and when it does arrive, will avail themselves of it. As you will readily perceive, there is an important difference between the two constructions, and as the second one seems to be really the meaning of the Prime Minister's words, the argument of the secession papers appears to be but — as it is aptly called in French-- echappatoire; a hole to creep out at.

They had so bluntly declared that the time had come for an intervention, or at least a mediation, and were so firmly convinced that the English were for violent measures, that they find it hard to admit their defeat. Their Constitutionnel is to commence to-morrow morning a series of leading articles from its principal editor in favor of mediation based on the late discussion in the English Parliament.

The Constitutionnel defends the cause of the South as if ordered to do so by the Government; the Patric appears to defend it from conviction; and the Pays from ignorance; but they are all probably acting on a ministerial order. The fact is, that part of the ministry which has control of the press, by an unfortunate hazard, is secessionist, and believes firmly and honestly that the South will never be conquered. In this view of the case, a mediation is one of the possible events, and it is to prepare the public mind for such a contingency that the ministerial press has its orders to keep the subject of mediation before the public. It serves also as a menace to the combatants in America to force them to a peace.

The French Journals remain perfectly silent on the subject of the return of the Orleans Princes to England, notwithstanding it is much discussed in the English papers. Their names have not been mentioned, except in the telegraphic dispatches, and the official paper, in order not to mention their names at all, omitted the telegraphic dispatch which gave the news of their return.

’ The Paris correspondent of the New York Evening Post says:

McClellan's address to the army, on the 4th of July, is published in all the papers, and variously commented upon. The Patric says of it: ‘"We can understand the illusions and the exaggerations whose aim is to sustain the morale of the soldier, but to travestied the truth in this way, and present six successive and bloody defeats as a series of victories contributing to operate a combined advance movement is to push a little too far the right of not avowing that one is beaten." ’

The Patric, like the Times, does not relish what it calls a parody upon a sentence of Bonaparte, ‘"I was of the Army of the Potomac, "’ and ends with piling up the following mountain of woes and disasters as the result of all that has been done in this war: ‘"Until now the clearest results for the two countries (i. e. North and South) are these cities burned, immense quantities of merchandise lost, fields and harvests laid waste, pillaged, ruined; blood flowing in torrents, commerce annihilated, production and consumption stopped, private fortunes compromised, and for the Government of the North a debt almost equal to that of England. Such are the results obtained within a year!"’

The Constitutionnel seems no less eager to seize upon every scrap which can favor the pro-secession side. It says: ‘"It is at the gates of New Orleans that the separatists retake the political capital of Louisiana, Baton Rouge." ’ [This sounding sentence is founded, observe, on a telegram we had the other day that there was a rumor to this effect. But shadows substance for the Constitutionnel.] ‘"It is in the environs of Nashville that a reaction is operating — that whole corps of Federals fell into the hands of their enemies, and that a movement is begun which promises to render useless all the advantages gained the past winter by the Northern States, at the price of American blood and of public fortune."’ This journal winds up with quoting an article from the London Times in which McClellan is accused outright of simply lying in his speech to the army.

What the London journals say.

[From the London Times, July 25th.] Exhortations to persevere, to send reinforcements to deliver the Union army from its difficulties, to avenge the dishonor of its flag by a triumphant entry into Richmond, have, of course, been plentiful, but as to anything further, there is a dead and most portentous silence. In fact, it is felt that the defeat of McClellan's army has changed everything. But a fortnight before, a vast and well-provided force was investing the capital city of the South, defended, as it was thought, by only a few starving regiments. All was joy and ignorant of confidence. Now the truth is revealed. A whole population is seen to have risen in arms; enthusiasm and devotion have made good all deficiencies; Generals of consummate skill are at the head of a soldiery of fanatical courage, and an army equal to the greatest of those with which European rulers make war guards the frontier of the Confederacy, after having crushed the main force of the invaders.

The Northerners, though they have shown themselves more liable to delusion than any one could have believed of such a people, are not fools; and, in spite of the boasting and lying of their Government, they are receiving the conviction that such a people as the Confederates can never be subjugated. If it were a war for a fortress or a frontier, they would not be discouraged; but when they reflect on the object of the present invasion, and remember that they have undertaken not only to defeat the armies of Lee and Beauregard, but to utterly destroy them, to occupy the whole Southern territory, and garrison it year after year with a standing army of at least a quarter of a million men, it may well be imagined that they are cooled and sobered by the prospect.

* * * We cannot but think that a great change of feeling is likely to take place at the North. The under currents of the popular mind are at first not visible; it is only when they have gained volume and strength that they can change the course of the stream. But there is enough to show that the multitudes of the Northern people are becoming weary of this purposeless slaughter. About the temper of the business men there can be little doubt; that they have been for many weeks giving to the cause of peace all the influence which their timidity and the constitution of American society will allow them. But now we have fair grounds for believing that matters have gone further, and that the great body of the people are slowly coming round to the opinions of their less short-sighted countrymen. That these will be can did and confess their own madness is not to be expected.

* * * * Drafting for service, or, in other words, a conscription, was talked about; but we should think it would only be talked about. The scheme of a forcible levy of troops in a Republic to subjugate and hold down another Republic is one that will hardly be seriously proposed even by the more fanatical of Mr. Lincoln's advisers.

[from the London Herald.]

Unfortunate McClellan. Who can venture to take a hopeful view of his position? Let him be reinforced to the full power of the Federal Government at the present time, and he will only face a mass of men outnumbering his own, and who, besides, are fighting in a good cause and flushed with victory. To move on Richmond along the left bank of the James river, under cover of the gunboats, is impossible, for the gunboats cannot pass Fort Darling, and up to Fort Darling the Federal ground would be the worst for fighting which McClellan has yet chosen. Extrication by transports to Fort Monroe is still possible; but what an inglorious end to a campaign which was to achieve so much. Nor is Virginia alone in its discouragement to the Federal cause. In the West, where so many Federal lives have been sacrificed to disease and fighting, the Confederates are sure to close in on the retreat of Halleck, and to restore to the Confederacy the whole country of the lower Mississippi. At every point the North is beaten, for the ground it conquered in the West will be wrested from it as soon as Halleck's forces are withdrawn to reinforce McClellan, or to support Pope in the defence of Washington.

[from the London Post, Lord Palmerston's organ.]

In America matters continue unchanged. Another mail has arrived, but, wonderful to relate, has brought no tidings either of Federal victories or ‘"strategic movements"’ executed under the most disadvantageous circumstances with the most bril- liant success. The Federal Commander-in-Chief reports ‘"all quiet,"’ from which we are lad to conclude that no attempts have been made by the Confederates to drive their opponents from their new position. * * * *

Mr. Secretary Chase has been authorized to issue a large quantity of one-dollar and five-dollar notes; but even this supply of fictitious wealth will fall to meet the wants of the public. The suggestion has been gravely offered that postage stamps should be generally substituted for the present copper coinage. Should this proposal meet with acceptance, it will be the proud beast of America to have issued paper money of the lowest denomination ever known. If the stamps possessed any value it could alone be as representatives of promises to pay on the part of the Federal Government. It is doubtful, however, whether a small shopkeeper could long continue to carry on business if he sold his wares for penny bank notes payable at an indefinite period.

* * * General Butler continues to startle us by the eccentricity of his proceedings. By a general order he has absolutely fixed the price of bread, totally irrespective, we suppose, of the price of flour. Any baker who shall, in defiance of this order, demand more for his loaves than Gen. Butler has appointed, shall forthwith be committed to prison, and dealt with as the military authorities shall direct. Attempts have been made in Europe to keep down the price of bread, but in those instances the State has always recouped out of the national funds those who were compelled to sell under the market price. We hardly think, however, that Gen. Butler has added insult to injury by offering to the bakers of New Orleans Federal scrip to cover their losses. Of Mr. Chase's Treasury notes, it is probable that they have already obtained more than they desire. A most determined attempt has been made to seize Vicksburg. It has been subjected to a bombardment by the Federal gunboats for upwards of ten days, but without any other effect than that of firing the city in several places. In Kentucky and Tennessee the ‘"rebellion"’ has broken out afresh, nor does it seem that any very active measures have been taken by the Federal armies stationed on those States to check its further progress. Altogether, considering the ill success or inactivity of the Northern armies in the field, and the rapid depreciation of the Federal paper, we are not surprised at hearing that the excitement in Wall street continues unabated.

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