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In accepting my credentials, his highness replied, in French, that he perfectly understood and was much pleased with what I had said; that he welcomed me to Egypt, and hoped that his relations with the United States woud be as agreeable hereafter as they had been in times past.

The viceroy then invited me to the divan, where we sat holding a few minutes of informal conversation, with the usual accompaniment of pipes and coffee. His highness was in his most affable humor. He hoped that Egypt would prove agreeable to me, though I might find it very different from the United States. Here in Egypt, he remarked, things go on very smoothly. I replied, in so far as things went smoothly, I trusted the United States would be able to imitate the government of his highness. The viceroy laughed, and then proceeding from gay to grave, mentioned the melancholy tidings he had heard the night before of the Sultan's death. I responded that I lamented the sad event, but was very glad, nevertheless, that the viceroy was in excellent health. His highness, whose domains are but nominally a dependency of the Sultan's, seemed to take pleasure in this compliment. To the suggestion that a voyage to the United States in one of the excellent steam yachts of his navy might be interesting to him, the viceroy answered that he could not leave his country for so long a time. This, I assured him, was the worst disability under which his highness labored. The viceroy made no explicit reference to the present domestic disturbances in the United States, but expressed his good wishes for the welfare and harmony of our government.

I was next invested with "the sabre of honor," and returned home, escorted in the state carriage as before. Immediately on my reception by the viceroy a salvo of cannon had been fired, and at the signal, the national flags of all the fifteen consulates in Alexandria were raised for the day in compliment to the occasion. A horse, handsomely caparisoned, awaited me as I left the palace, and was led to the consulate as the gift of the viceroy. The uniform usage in Egypt makes this present so essential a part of a first official reception by the viceroy, that the refusal of it would be deemed ungracious, and our government, in the case of all my predecessors, has permitted its acceptance. As the oriental custom on such occasions made it necessary for me to disburse a considerable sum of money in gratuities to the very numerous soldiers and servants of the viceroy, his gift may be regarded as in some degree reciprocated. The pecuniary value of the horse is by no means large.

On returning to the consulate I found the military band of the viceroy stationed in front, who continued their complimentary services during the whole day. The consuls general of other nations, and the viceroy's minister for foreign affairs, then called upon me, appearing in full uniform; and in the afternoon I returned their visits, paying my respects first to the minister. By the minister and by the consuls a deep and intelligent interest was manifested in the affairs of the United States, and warm wishes were expressed for the continuance of our Union. The vigor of our government, and the vastness, suddenness, and spontaneous character of the military movement of our people in the pending struggle for national integrity, seem to have filled them with surprise. Indeed, among all well-informed men here, as well as elsewhere abroad, the historic battle fields of Europe have paled in interest before the tremendous uprising of the great nation beyond the Atlantic. They almost forget the political complications nearer home in studying the military map of the United States. The book-shops of the principal transatlantic cities abound in maps, charts, and other publications illustrative of the American contest, and the United States will become to masses, hitherto ignorant of its geography, a ground more familiar than

were India and the Crimea when the progress of armies made their localities significant to the whole world.

I have the honor to be, sir, your obedient servant,

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Mr. Haywood, secretary of the Manchester Cotton Supply Association, is expected here daily on a mission to Egypt and India, relative to the prospective deficiency of cotton produced by the pending conflict in the United States.

Mr. Haywood, while here, will endeavor to induce the Egyptian government to extend the cultivation of cotton. It is believed that the crop in Egypt could be increased tenfold if the government would tender its aid. Carelessness in allowing the small canals of irrigation to be obstructed is said to be a cause of the comparative meagreness of the average yield of this important staple.

This year, owing to the unusual height of the last overflow of the Nile, the crop promises to exceed considerably that which preceded it. In expectation of a scarcity in England, some of the commercial houses of Alexandria are sending agents into the interior to buy up the cotton in advance of harvest. But so well understood is the condition of the cotton growing region in the United States, even by the poorest fellahs, (peasants,) that it is difficult to persuade them to sell on terms which heretofore they would have been delighted to accept. The ruling price, at the last quotations, of Mako, which ranks next to Sea Island cotton, is 275 piastres ($13 75) per cantar (a quintal;) but some of the largest cotton growers insist on $17 00, and are holding back for that unheard of figure.

The following information is derived from intelligent men whose business connexions in Egpyt give authority to their statements in reference to this important question. I also communicate some tabular statistics which are appended to this despatch.

The cotton crop of Egypt commences to be gathered about the middle of September. There are two qualities, the Sea Island and the Mako.

The Sea Island cottons are divided into two kinds. The first is that of which the seed is new, and which is sown for the first time in Egypt. The second is that which has been sown for the second time. The Sea Island, after the second planting, are changed into fine Mako.

The Mako are divided into three kinds, which in commerce are called fine quality, medium quality, and inferior quality.

It is very difficult to give an exact statement of the number of quintals which Egypt annually produces. But, according to the official tables of exports, the total amount of crop is valued, on an average yearly, at from four hundred and sixty thousand to five hundred and fifty thousand, divided as follows:

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The prices during the six months ending June 30, 1861, have been

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According to the statistics of exports, (they) have been as follows:

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The tabular results of the last six months indicate that England will absorb a far larger proportion of Egyptian cotton than heretofore.

As before remarked, a favorable expectation prevails respecting the new crop, because the waters of the Nile have now almost reached the level of the same period last year. But this expectation may fail, for the goodness of the crop depends, not solely on the overflow of the Nile, but also on the winds, which are more or less auspicious at the time of the efflorescence of the pods.

Thus far the disturbances in America, which have produced various fluctuations in the price of cotton, have not as yet caused an increase of more than two dollars (40 piastres) per quintal.

An informal application has been made to me in behalf of various Greek and Italian residents of Alexandria, who desire to enlist in the military service of the United States, if means shall be furnished to transport them thither. I replied that I should, while appreciating their benevolent wishes. to our country, await instructions from my government before giving them any encouragement.

The 4th of July, in Alexandria, was observed in the usual manner. The flags of all the fifteen consulates were raised for the day. The minister of

foreign affairs of, the Egyptian government also paid me his annual visit in honor of the occasion, during which he expressed his wishes for the permanence of our Union, and his opinion of the hopelessness of the cause of its domestic enemies. He appeared quite astonished at the magnitude and efficiency of our military operations.

At a dinner, given by the vice-consul in honor of the day, which was attended by the consul general of the kingdom of Italy and other distinguished residents of the city, the occasion was enthusiastically commemorated.

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Cotton exported from Egypt during the last five years, 1856-'57-258-59-'60.

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This year's crop is not yet known, it being still growing, and will be gathered about the months of September to December, although it is estimated to be equal to that of the preceding years. ALEXANDRIA, EGYPT, July 15, 1861.

Or pressed bales of
4 cantars each,
129,884.

Or pressed bales of
4 cantars each,
125,661.

Or pressed bales of

Mr. Seward to Mr. Thayer.

No. 3.]

DEPARTMENT OF STATE, Washington, August 13, 1861.

SIR: I have received and have read with much interest your despatch of the 29th of June, (No. 3,) announcing your arrival in Egypt, and giving an account of your reception by the viceroy. Your remarks on that occasion, as well as your conduct throughout the imposing ceremonial, are approved, and the friendly feeling towards the United States manifested by his highness in your interview with him, and subsequently by his minister of foreign affairs, and by the consuls general representing other nations in Egypt, is very gratifying.

I am, sir, your obedient servant,

WILLIAM S. THAYER, Esq.,

WM. H. SEWARD.

Consul General of the United States, Alexandria, Egypt.

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