France; since the cause of the South is not only just, but logical, France does not hesitate to declare her sympathies, and her first act of sympathy naturally must be the recognition of the Confederate States."

The negotiation of a loan by the Confederate Government of 75,000,000 Mar. francs, or 15,000,000 dollars, with a 19. French banker, served to confirm the impression that Louis Napoleon was disposed to support the Southern cause. Messrs. Erlanger, of Paris and Frankfort, were the first to introduce the loan to the financial market, but Mr. J. H. Schroder, in London and Amsterdam, and Messrs. Fraser and Trenholm, in Liverpool, acted jointly with the French bankers. The security to the holder of each bond was cotton, to be delivered to him at some Southern port at 5d. per lb., free of other expense, at his option, either immediately or within six months after the ratification of peace. The price of the bonds at their issue was ninety, with dividends payable in sterling. A sinking fund was established for redemption at par in twenty years.

The loan became quite the "rage in financial circles" at London and Paris, where the bids, amounting to over 10,000,000 of pounds sterling, greatly exceeded the amount offered. On the first day the premium reached 5 per cent., but the loan soon after, in consequence of the success of the Northern arms at Vicksburg and elsewhere, declined to 25 or 30 per cent. discount.

The Confederate cruiser Florida having sought refuge at Brest, offered the

occasion for testing the question whether this marauder of the seas was entitled to the consideration of a national vessel. The Journal des Debats, of Paris, a warm advocate of the Northern cause, did not hesitate to brand the Florida as an outlaw.

"The rights of belligerents," wrote the editor on September 3, "have doubtless been granted to the Southern States, but evidently on condition that they comply with international rights. Now, if it be possible to maintain in the strictest sense of the word that the Southern States have the right to arm privateers, since they did not subscribe to the treaty of Paris, it is impossible to admit that the privateers armed by the South, and which are placed on a footing by a too generous tolerance-its effects are now apparent-with ships of war, can validly transform themselves into maritime tribunals, and become their own judges of the legality of their prizes. They have no right, as they do, to stop vessels at sea, strip them of their cargo, whether it belongs to the Federal States or to neutrals, and to set the ship on fire, while a captain of a naval power, in the uniform of his country, in addition to other guarantees of integrity and impartiality, would be obliged to carry his prize before a court of justice. This is evidently intolerable. It is in vain for Southerners to allege that their ports are blockaded, and that they have no maritime tribunals. That is their business, not ours. Let them attack the Federal men-of-war and force them to raise the blockade-it is their right; but

to seize upon the property of others without legal power, such an act, in every language, is called a theft."

An application having been made by the owners of a portion of cargo on board of one of the vessels seized and destroyed by her, for authorization to arrest the Florida in any French roadstead, it was granted by the Tribunal of Commerce of Marseilles. The Government, however, having officially stated* that the Florida was entitled to all the privileges belonging to neutrals, the courts rendered a decision based upon this declaration, liberating the Florida. The Alabama subsequently took refuge in Cherbourg, when she was arrested on a similar charge, and released like the Florida by a decision in her favor.

The Florida and Alabama were accordingly allowed all the privileges accorded to the national men-of-war of friendly powers.

In the mean time, while the Florida was repairing and making ready for another raid upon the seas, the U. S. Sept. cruiser Kearsarge, arrived at Brest, 16. and strove to prevent her departThe French admiral now interposed with the declaration that the Kearsarge would not be allowed to leave port until twenty-four hours after the Florida, which seemed to secure the safety of the latter vessel, in case of an

ure.

the

effort to escape.

• This was the statement of the official Moniteur : "The steamship Florida, now at Brest to repair damages, is not a privateer, as was at first believed. She forms part of the military marine of the Confederate States; her officers are provided with regular commissions, and she has all the qualities (caractères) of an ordinary ship of war."

Notwithstanding the manifestation, by various acts, of the Imperial Government of France, of a disposition to favor the insurgents of the South, circumstances occurred which apparently served to cool the fervor of French sympathy. The success of the Northern arms, the more positive neutrality of the British Government, the complication of European affairs, in consequence of the Polish insurrection, threatening a general war, and perhaps the indication of friendliness between Russia and the United States, were doubtless powerful inducements with Louis Napoleon to pause in his suspected design of recognizing Southern independence and forming an alliance, offensive and defensive, with the new nation.

Following the example of the British. ministry, the French Government withdrew its authorization for the struction of several vessels of war which were were building in the ship-yards of France for the Confederate Government.

The Imperial speech, at the opening of the French Legislative Chambers, Nov. by its slight allusion to the war in 5. the United States, indicated, at least, a politic reticence of expression, if not a positive disinclination to action, in regard to it.

ing. Of this number is the war in America, the compulsory occupation of Mexico and of Cochin China, the insurrection of Poland. The distant expeditions which have been the subject of so much criticism have not been the result of any premeditated plan; they have been brought about by the force of circumstances; and yet they are not to be regretted. How, in fact, could we develop our foreign commerce if, on the one hand, we were to relinquish all influence in America? and if, on the other, in presence of the vast territory occupied by the Spaniards and the Dutch, France was to remain alone without possessions in the seas of Asia? We have conquered a position in Cochin China which, without subjecting us to the difficulties of the local government, will allow us to turn to account the immense resources of those countries, and to civilize them by commerce. In Mexico, after an unexpected resistance, which the courage of our soldiers and of our sailors overcame, we have seen the population welcome us as liberators. Our efforts will not have been fruitless, and we shall be largely rewarded for our sacrifices, when the destinies of that country, which will owe its regeneration to us, shall have been handed over to a Prince whose enlightenment and high qualities render him worthy of so noble a mission. Let us, then, put faith in our expeditions beyond sea. Commenced to avenge our honor, they will terminate in the triumph of our interests; and if prejudiced minds will not see the good promise of the seed sown

for the future, let us not tarnish the glory achieved, so to say, at the two extremities of the world-at Pekin and in Mexico."

In the official statement of the situation of the Empire, composed of Nov. the reports of the various minis- 10. terial departments, and forming what is known as the "Yellow Book," there was a freer expression of opinion in regard to our civil war.

"The sad previsions suggested by the exasperation of the struggle carried on during three years in the United States, have been but too much realized. Blood has continued to flow, while the respective situations of the belligerents do not allow us to anticipate a period to this terrible crisis. In presence of such an accumulation of ruins, and such a sacrifice of life in a struggle hitherto fruitless, we have felt profound regret that the propositions which we made at London and at St. Petersburg, to unite in promoting an armistice, were not accepted. Compelled to renounce that project by a double refusal, we have, however, declared that our desire to contribute to the re-establishment of peace in any form would not be the less lively and sincere. We have given proof of this by suggesting the idea of substituting for the project of an amicable intervention of the maritime powers, the expedient of direct messages between the Government of the United States and the Confederates of the South. This new attempt has not been more fortunate than the preceding.

"From that time we have nothing left

but to follow out the line of conduct adopted ever since the beginning of this war by the Government of the Emperor. This we have striven to do with scrupulous care under all circumstances. We have remained neutral and well-disposed; although it has often been difficult for us to reconcile this part with our duties toward our fellow-countryIndependently of the sufferings which, in our departments, are the consequence of the American crisis, hostilities on the territory of the Union itself have occasioned considerable detriment and loss to French residents. They have often had occasion to make just complaint of the abusive proceedings of the civil and military authorities. Our countrymen must understand that their

men.

interests, like those of other foreigners, cannot claim an exceptional security in the midst of the tumult of arms, and that in such cases all ordinary guarantees necessarily lose something of their efficacy. Moreover, a state of war imposes inevitable fetters on the commerce of neutrals. If the progress of liberal doctrines tends to relax them, it cannot wholly suppress them.

"The Cabinet of Washington has been able to satisfy itself that we have made, in our reclamations, a large allowance for these difficulties. But the Government of the Emperor cannot disguise its pain at seeing so many aggrieved interests, well-deserving of its care, making a vain appeal for protection."

1863.

"The rebel army, after its expulsion from Middle Tennessee, crossed the

Chattanooga and Tyner Station, leaving guards along the river. On their arrival at Chattanooga, they commenced immediately to throw up some defensive field-works at that place, and also at each of the crossings of the Tennessee as far up as Blythe's Ferry.

"Our troops having pursued the rebels as far as supplies and the state of the roads rendered it practicable, took position from McMinnville to Winchester, with advances at Pelham and Stevenson. The latter soon after moved to Bridgeport in time to save from total destruction a saw-mill there, but not to prevent the destruction of the railroad bridge.

"After the expulsion of Bragg's forces from Middle Tennessee, the next objective point of this army was Chattanooga. It commands the southern entrance into East Tennessee, the most valuable, if not the chief source of supplies of coal for the manufactories and machine-shops of the Southern States, and is one of the great gateways through the mountains to the champaign counties of Georgia and Alabama.

"For the better understanding of the campaign, I submit a brief outline of the topography of the country from the barrens of the northwestern base of the Cumberland range to Chattanooga and its vicinity.

"The Cumberland range is a lofty mass of rocks separating the waters which flow into the Cumberland from those which flow into the Tennessee, and extending from beyond the Kentucky line, in a southwesterly direction,

nearly to Athens, Alabama. Its northwestern slopes are steep and rocky, and scalloped into coves, in which are the heads of numerous streams that water Middle Tennessee. Its top is undulating or rough, covered with timber, soil comparatively barren, and in dry seasons scantily supplied with water. Its southeastern slope, above Chattanooga, for many miles, is precipitous, rough, and difficult all the way up to Kingston. The valley between the foot of this slope and the river seldom exceeds four or five miles in width, and, with the exception of a narrow border along the banks, is undulating or hilly.

"The Sequatchie Valley is along the river of that name, and is a cañon, or deep cut, splitting the Cumberland range parallel to its length. It is only three or four miles in breadth and fifty in length. The sides of this valley are even more precipitous than the great eastern and western slopes of the Cumberland, which have just been described. To reach Chattanooga from McMinnville, or north of the Tennessee, it is necessary to turn the head of this valley by Pikeville and pass down the valley of the Tennessee, or to cross it by Dunlap or Thurman.

"That part of the Cumberland range between Sequatchie and the Tennessee, called Walden's Ridge, abuts on the Tennessee, in high rocky bluffs, having no practicable space sufficient for a good wagon-road along the river. The Nashville and Chattanooga Railroad crosses that branch of the Cumberland range, west of the Sequatchie, through a low