Mr. Murphy to Mr. Seward.
Sir: The greatest excitement prevails, as well on the exchange as amongst the public at large, since the last American news of the 5th instant, about other resultless battles and positive defeats of our troops, have been announced by the telegraph, and have led even to apprehensions for the safety of Washington. The usual tranquillity of the summer season was prevailing during the week, until the said reports created so great an alarm that not only American stock [Page 1375] was abundantly offered but also at a sudden decline of about 8 per cent., and the fear of the continuation of the war beyond the current year led to the most frightening surmises about commerce and industry. Europe depends too much upon American consumption to be able to be a quiet looker-on when the latter is evidently diminishing from day to day. Cotton and cotton goods have gone up 40 to 50 per cent., or in the same degree as the value of the American securities is going down. Everybody here, it is true, believes in the final victory of the government over the rebellion, if it is not interfered with, but at the same time the conviction is gaining ground that the great European powers will not delay any longer their intervention, unless the conflict is soon terminated, and that, especially, Louis Napoleon will make Mexico the pretence of sending troops across the Atlantic to enforce the recognition of the southern confederacy and the opening of the blockade.
Mason and Slidell are openly spoken of here as inclining towards monarchical principles to satiate their hatred and revenge upon the north and promote their own selfish interests. The frequent secret visits which Slidell is said to pay to Louis Napoleon may stand in intimate connexion with the plan to join the Confederate States and Mexico into one empire with a Napoleon prince on the throne. Every American’s heart must bleed within him if he has to listen to or read the discussion of such plans, which will be given at once when new advances and victories of the south make the retrogressive party of Europe rejoice over the defeat of the north, and the injury done to the cause of freedom generally. This is the more deplorable at a time when the efforts of our government to attract the cause of emigration are to be promulgated by its diplomatic and consular agents abroad, and when the best intentions to promote these efforts are counteracted by such discouraging and humiliating news.
The transactions of the Bourse are, of course, not enlivened by such news, the entire activity being limited to discussion. Nobody is inclined to buy American stock at present, however inducing and profitable speculation may appear from the lowness of the prices. In fact, a few more such defeats and our credit is gone in Europe for years. Mistrust in the solidity of our governmental system is increasing from day to day, and the government is more suspected and abused at present than ever before.
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I have the honor to be, with great respect, sir, your most obedient servant,
Hon. William H. Seward, Secretary of State.