Mr. Marsh to Mr. Seward.
Sir: Since the battle of the 24th of June, which, however unfortunate for the Italian cause in its immediate results, was in the highest degree creditable to the valor of the Italian troops, no military movement of consequence has taken place.
The Austrians seem to be threatening the left flank of the army, and the important positions of Bergamo and Brescia, by way of the Valtelline and the Val Camonica. It is not obvious why these passes, the former of which, at least, might have been very easily defended upon the line of the Stelvio, should have been left unoccupied, but, in any case, it is not probable that the Austrians will be able to penetrate far enough to hazard the safety of the cities just mentioned, or to inflict serious damage on the country.
The commencement of an offensive warfare by a defeat was an event certainly not calculated to encourage the friends of Italy, but the battle has established the claim of the Italian soldiery to an equal rank with that of the Austrians, and I do not think the national spirit, or the credit of the government, is much depressed in consequence.
The government has resolved upon a forced loan, but I believe the amount and conditions are not yet fixed. I cannot but think that the emergency would have been better met by a policy more in analogy with the financial measures resorted to by the American government during our late war. Doubtless, a national paper currency would soon have fallen to a low rate as compared with gold, but the proposed measure will no: avert that result, and the embarrassment of a fluctuating and depressed circulation would be, in practice, less heavily felt than the sacrifices which a forced loan, insufficient in amount probably to carry the nation through the crisis, will inevitably entail on the people.
I have the honor to be, sir, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.