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rities of international law, and stated that, on referring their decisions to the opinion of the law officers here, no rational objection had been found against them. Mr. Seward had always acknowledged that there must be a certain and legal cause of capture before a ship was taken. Admiral Milne had been instructed to protect vessels from unjustifiable seizure in the neighbourhood of Matamoras, although it did not appear that the American cruisers had done any great injury to the trade of that port, as its harbour was crowded with ships. That a large and gainful trade was carried on with the South in contravention of the blockade no rational person could entertain a doubt, though when the offending ships were seized, loud protestations of the innocence of their designs were made. He pointed out the inconsistency of at one moment stating that the blockade was easily broken, and at another blaming American cruisers for attempting to seize vessels suspected of such a purpose. In regard to the blockading a line of coast, he showed that this country had formerly proclaimed a blockade of 2000 miles of American coast, and thought it would hardly be becoming or wise for England to protest against a course she had herself formerly adopted, and which, in the case of a war with the United States, she would probably adopt again. In conclusion, he expressed his intention, as Foreign Minister, of being guided, not by a wish to avenge fancied affronts, but to uphold the honour of the country by adhering to justice.

The Earl of DERBY added the weight of his high position and authority to the counsels of moderation thus urged by Earl Russell. He joined with the Foreign Secretary in deprecating reflections upon the honour of the American Prize Courts. He added also his opinion, that we ought to make fair allowance for the natural irritation felt in America at the breaking of the blockade, and the furnishing of supplies to the Confederates.

The diversity of opinions entertained in this country on the subject of the transactions now in question, and the general state of our national relations with the belligerent powers, were well illustrated by a debate which took place in the House of Commons on the 28th of March, which was also remarkable for the clear and satisfactory exposition of the law given upon that occasion by the Solicitor-General, Sir Roundell Palmer, in a speech that attracted much attention on both sides of the Atlantic. The discussion originated in inquiries addressed to the Government with reference chiefly to the case of the "Alabama," by Mr. W. E. Forster, who asked whether the attention of Her Majesty's Government had been called to the danger to our friendly relations with the United States resulting from the fitting out in our ports of ships of war for the service of the Confederate States, in contravention of the Foreign Enlistment Act, and of the policy of neutrality adopted by this country. He read various documents, the facts stated in which, he seemed to think, showed a blindness or want of vigilance on the part of

British authorities that threatened to jeopardize our friendly relations with the United States. He did not ask the Government, he said, to infringe the law, but to carry out the law, and, if the existing law was not sufficient, to come down to the House and demand further powers.

The SOLICITOR-GENERAL observed that the case of the "Alabama" (upon which Mr. Forster had enlarged) was only a part of a series of accusations of breach of neutrality which the Government of the United States had permitted itself to make against this country. He referred to a catalogue of cases in papers laid before the American Congress, upon which such accusations were founded, without, he contended, any solid ground, no principle of international law, as recognized by the practice of all maritime nations (and, as he showed, by that of the United States themselves), having been violated. He cited cases determined by American Courts, and doctrines laid down by American judges, which took away all ground of international complaint in the matter of the "Alabama." In this and other matters, he vindicated the Government and the Customs' authorities from the charges of delay and want of vigilance alleged against them, expressing his surprise at such charges, the Government having acted, not only with good faith, but (as he proved by reference to dates) with reasonable promptitude and despatch. The Government were, he said, most anxious to enforce the law to the utmost of their power; but they must have legal evidence of an intended violation of the law before they could act, as they would then do without partiality or favour. In conclusion, he expressed a hope that he had satisfied the House that the Government were free from blame, and that what he had said would tend to remove false impressions in the United States.

The Solicitor-General's defence of the conduct of the Government in this matter was animadverted upon with various comments from different quarters of the House. Mr. Bright considered that it would be unsatisfactory both to the United States and to many persons in this country. He regarded the Government as deserving much blame for permitting the escape of the "Alabama," the fitting out of which was as notorious as the building of other vessels of war in this country for the service of the Confederates. Our neutrality, he declared, was a cold and unfriendly neutrality, or the Government would prevent the sailing of these vessels, which tended to peril our friendly relations with the United States.

Mr. LAIRD (the eminent shipbuilder) read accounts of the aid supplied to the Northern States from this country, alleging that, if the Confederates had obtained here two unarmed ships, the North had obtained large quantities of arms and munitions of war; and he mentioned applications made to him for armed vessels on the part of the Northern Government, offering to place the original letters in the hands of the Speaker, or of the First Minister of the Crown.

Mr. THOMAS BARING thought that the Government could not be acquitted of tardiness in the proceedings with regard to the seizure of the "Alabama ;" and he dwelt upon the danger to the pacific relations of the two countries from the irritation now prevailing, which he did not think the speech of Sir R. Palmer calculated to diminish. He considered the transaction in question most unfortunate, because it led public opinion on the other side of the Atlantic to question very much the sincerity of our declarations of neutrality, and to believe that, while we issued proclamations, and had Foreign Enlistment Acts in force, we did not really wish to maintain the neutrality which we professed. It was most unfortunate that such a feeling should exist. There had been a vast destruction of property, and great injury had been entailed upon British commerce. No one could tell where the feeling of animosity which had been engendered would rest.

Lord PALMERSTON expressed regret at the tone of Mr. Forster's and Mr. Bright's speeches. He lamented the proneness in America to raise a party cry against England, which he hoped would not be carried too far, since it had a tendency to endanger the friendly relations between the two countries, and he regretted that speeches should be uttered in that House calculated to encourage that cry. The Solicitor-General had demonstrated that the Americans had no just ground to find fault with us; that we had done every thing the law enabled us and authorized us to do. It would have been much more agreeable to the Government if no supplies of any kind had been furnished to either of the belligerent parties, but they could not go beyond the law.

As the Ministers of the Crown had to vindicate themselves against the charge of not interfering in time to stop the "Alabama," they had also to defend their conduct against the imputation from another quarter of having acted prematurely, and without sufficient justification, in arresting the "Alexandra." This case was brought before the House of Commons by Mr. Horsfall, one of the members for Liverpool, who was supported in his censures upon the Government for seizing an unarmed vessel upon mere suspicion by some of the leading Conservative lawyers, Sir F. Kelly, Sir H. Cairns, and Mr. Whiteside. Mr. Cobden urged forcibly the duty of the Government to maintain the provisions of the Foreign Enlistment Act, and to observe towards the United States the same honourable conduct they had maintained towards us. The Solicitor-General again ably vindicated the conduct of the Government in regard to the transaction in question. He declined to produce papers or to give information which would constitute the evidence on the part of the Government at the approaching trial. Every thing, however, had been done according to the usual course of the law. Whether there was a good defence would appear hereafter; but the Government had before them information upon oath of a violation of the law, and it was their bounden duty to act upon it.

CHAPTER V.

The distress in the Cotton Manufacturing Districts-Its origin and extent-Progressive decrease in the recipients of relief from the beginning of the yearAdmirable patience of the operatives thrown out of employment-Contrast to the spirit displayed at former periods in the same districts-Single exception to the tranquil demeanour of the people-The Riots at Staleybridge-Outrages committed by the insurgents-Their apprehension and trial-Remarkable paucity of crimes attributable to manufacturing crisis-Physical effects of the distress-Absence of epidemic disease or increased mortality-Favourable reports of the Registrar-General and other authorities on the sanitary state of Lancashire-Wise measures adopted by the Relief Committees to promote cleanliness and health-Other causes of the satisfactory physical condition of the operatives-The Relief Funds, whence derived and how appropriated-Sums levied by poor-rates under the Union Relief Act of 1862-Voluntary contributions of the public-Large amount subscribed by all classes in the United Kingdom and the Colonies-The Mansion House Fund, the Manchester Central Relief Fund, the Bridgewater House Fund, and other channels of contribution—Organization for distributing the subscribed funds - The_Mansion House Committee, the Manchester Central Executive Committee, and subordinate local Committees-Special application of the funds allotted to the several districts— Payment of school fees-Question of emigration-Limited aid afforded from the relief funds to that object-Legislative measures of relief-Renewal of the Union Relief Aid Act of 1862-Debates in Parliament on this and other measures applicable to the distress-Speeches of Mr. Villiers, Mr. Wilson Patten, and other members-The Renewal Act is limited, on Lord Stanley's suggestion, to six months-At the expiration of that time it is again renewed with some alterations-Discussion as to the policy of applying the rates towards assisting emigration-Important speech of Mr. Cobden-Plan for employing the surplus labour of the Cotton Districts in outdoor works for the improvement of towns by means of Government loans-A Commissioner is appointed by the Government to inspect the districts, with a view to this measure-His report-A Bill to authorize the execution of works of public improvement out of funds advanced by the Treasury is brought in, and a sum of 1,000,000l. authorized to be issued-Operation of this measure at Blackburn, Bolton, and other places-Prospects and speculations as to future supply of the raw inaterial for cotton works-Discussion in the House of Commons on the sources of supply, especially with reference to the capabilities of India-Speeches of Mr. Caird, Mr. Cobden, and Mr. Bright-Sir C. Wood defends the Government against the charge of neglecting the encouragement of Indian cotton-culture-Greatly enhanced prices of the raw material at the close of 1863-Extensive speculations in cotton, and danger of a monetary crisis.

THE history of the Cotton Famine in the manufacturing districts of England in the years 1862-3 deserves to be regarded as one of the most remarkable chapters in our modern annals. Whether we regard the magnitude of its operation, the vast amount of labour which it paralyzed, and the masses of population which it reduced from comfort to destitution,-whether we contemplate the patient fortitude, and almost unvaried submission to the law with which it was endured, or the noble efforts made for its relief, and the admirable organization by which the contributions of the nation were administered,-in any view of the case, we shall find much in the circumstances of this great calamity to qualify the pain with which it would otherwise be regarded, and to make us proud of those qualities in the people which could extract much good from so terrible a reverse.

The maximum pressure of the distress occasioned by the stoppage, partial or total, of the cotton mills of Lancashire and Cheshire had been attained a short time prior to Christmas, 1862. In the month of December the number of persons receiving regular relief was supposed to be little short of 500,000. The weekly loss of wages at the same time was estimated at about 168,000. In the last two or three weeks of the year a partial improvement took place, and in January, 1863, according to the statement officially made to the Manchester Relief Committee, the number of persons receiving aid from the rates and from the contributions of the public together was 456,786. From this time a progressive decrease took place, the numbers relieved during the five months following being as follows:

In February

March

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256,230

It thus appears that the number of persons dependent on parochial rates and on voluntary contributions became reduced at the end of the first half of 1863, as compared with the maximum amount in December, 1862, by almost one-half. This favourable result was due partly to the resumption of work in some of the factories, owing to an increased supply of the raw material, and partly to the absorption which had taken place to some extent of the surplus hands in other employments, and to the removal and emigration of some part of the population. This decrease in the number of the unemployed operatives continued with little variation during the summer. In July the number relieved had fallen to 214,155; in August to 205,261; and in September to 184,625. The list of persons relieved at that time exhibited a steady decrease of about 1500 per week. In that month it was computed that out of the 530,000 operatives of all ages whose industry depended upon cotton, there were 362,000 in employ, of whom nearly 250,000 were at full work, and 120,251 working short time, while 171,535 were entirely out of employ. It was apprehended that, as winter approached, a reaction would take place, and that the relief lists would again begin to show a serious augmentation. But this expectation was only to a small extent realized. The number relieved in the month of October was 168,170. In November it increased in a trifling degree, being 170,859; and in December it showed an addition of about 10,000, the total being 180,900. Still, upon a comparison of the number of persons in receipt of relief in the first and last months of the year respectively, the improvement was very marked, the last week of December as compared with January showing the very large decrease of 275,877. The average percentage of pauperism on the population of twenty-seven unions in the last week of December, 1863, was

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