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 districtsPayment 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 material 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 cne 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:

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

6-8; whereas in the corresponding week of 1862 it had been 13.2. It was further shown by a report of the Special Commissioner of the Poor-law Board on the 4th of January, 1864, that at that date, as compared with the last week in March, 1863, a reduction had taken place of 33,963 in the actual number of operatives in the cotton districts, the surplus having been transferred to other fields of employment,-viz., 18,244 having emigrated to the colonies or the United States, and 15,725 having found other occupations within the districts.

The calamity which thus pauperized one of the most active and prosperous provinces in the kingdom had, at the time when it first appeared imminent, filled all hearts with alarm. The problem of sustaining for months, or perhaps years, a vast unemployed population, whose indigence must involve to a great extent the interests and subsistence of other classes dependent upon them, was one which appeared impossible of solution, while the moral and political dangers likely to result from such a disorganization of the social economy excited the gravest apprehensions. That large masses of men would sit down and patiently endure starvation to themselves and their families, did not seem a probable supposition. Scarcely ever in recent times has the State been threatened with so formidable a shock. There have been periods by no means remote in the history of this country, when such a crisis would not have been surmounted without an outbreak of lawless violence. Had the same state of things existed thirty or forty years ago, it would certainly have been accompanied with some symptoms of commotion-bread riots, seditious gatherings, or outrages against life or property. Happily, we live in times when the improvement of our laws and institutions, the extension of education, and the better understanding which these and other causes have induced between the various classes of the community, have gone far to obviate such dangers. A conviction of the justice of the laws under which they live, and a confidence in the Government which administers them, have taught an intelligent and well-affected population those principles of selfcontrol which afford the best guarantee for the safety of the State. Still more, the assurance that they possessed the sympathy, and might reckon upon the liberal aid of their more fortunate fellow-subjects in the hour of their calamity, had power to reconcile the sufferers to what they well understood to be an inevitable misfortune. Actuated by these feelings, the unemployed operatives displayed throughout the dreary season while they were existing in enforced idleness upon the bare pittance which the relief funds could afford them, a manly fortitude and submission to the law, which won the respect and admiration of all observers. To men accustomed to the comforts which a high rate of wages affords, priding themselves, not unnaturally, on that energy which has made Lancashire the wealthiest and busiest province of the kingdom, and inspired beyond most English

men with a strong feeling of independence and self-reliance, it was a sore trial to find themselves reduced to the condition of idlers and almsmen, compelled to subsist on the calculated allowance of bare necessaries, with nothing to occupy their thoughts but the prospect of their own irremediable, and, to all appearance, indefinite misery. Yet this terrible ordeal was endured with almost undeviating resignation and tranquillity. With a single exception, which truth requires to be stated, there was no disturbance, no outrage, scarcely any agitation or audible complaint, throughout these heavily-afflicted districts. No military force was needed, save in that single instance, to keep starving men from preying upon the property of their neighbours; no prosecutions were required to repress the seditious suggestions of "male suada fames." They made no parade of their misery, uttered no rebellious murmurs at their destiny, breathed no whining appeals for charity. A loyal and patient spirit, a peaceable and orderly demeanour, marked the scene of one of the severest visitations that has ever in time of peace afflicted a civilized community.

The single exception, which impartial history requires us to record, to the exemplary conduct of the distressed operatives, was an outbreak which took place in the month of March of this year, at Staley bridge, adjoining Ashton-under-Lyne. It arose out of an alteration, which, acting doubtless on good grounds, the Local Relief Committee had determined to adopt in the administration of their funds. They resolved that the adult operatives should be paid with tickets, instead of money, at the rate of 3s. a week, and that they should be kept a day in hand. These tickets the men refused to accept, and mustered in large numbers at the close of the day at the place where the relief was to be distributed. Here they became much excited, attacked with stones and missiles the small number of police sent against them, put them to flight, broke the windows of the most prominent members of the Relief Committee, and sacked the house of one of them. Several shops were plundered. The Relief Committee's clothing-stores were then broken open. In these stores were piled up heaps of moleskin jackets, trousers, waistcoats, stockings, calico, and linen under-clothing for women, besides large quantities of moleskin and other cloths for making up into garments. As fast as a score of lads and lasses could pick the goods up, were these useful things hurled out of the upper windows to the people below. Complete showers of jackets were tossed into the streets, followed by bundles of stockings, waistcoats, flannel shirts, or chemises. People kept continually leaving the crowd with armsful of all kinds of clothing. Shortly after, a troop of the 14th Hussars from the Ashton barracks appeared in sight. A loud cry of "The soldiers are coming!" was raised, and the Hussars galloped along, flourishing their swords. Every one looked after his or her personal safety, and fled from the street immediately. But many arrests were made. The troops