New York Papers, whose latest date is the 8th of

January, were received in London yesterday. They supply intelligence of events on the frontiers of Upper Canada which may affect the relations be- tween this country and the United States in an unpleasant planner.

It &appears that a small steamboat, celled the Caroline, was em- ployed in conveying men and stores from the American shore to Navy Island. It is said that she bad been actually purchased by MACKENZIE for the insurgents ; but this is doubtful. On the 29th of December, she had ade two or three trips to Navy Island, and anchoicd at night off the village of Schlosser, on the United States bank of the Niagara river; log fastened with chains to the dock of that place. The officers and crew were ten in number, and there were also on board lima twenty- cc persons, principally belonging to Buffalo—all American Citizens. t induced them to goon board this night, does not clearly

appear. ttato'stffidavit, the Captain said that they came to him for a

sight's lodging. According to another account, they desired to witness the attack on Navy Island, which the British were expel" ed to make that night. There they were, however; and ell the patesenti!rsand crew ex- cept tint watch on deck had gone to bed, when, ebout midnight, several boats tilled with Loyalists from Upper Canada were teen to approach. Before the captain could reach the deck, seventy or eighty armed men bad boarded the Caroline, and commenced an attack upon the crew, with curses and shouts of " kill, kill ! no quarter ! tire, fire !" As many Its coild, got ashore; but out of thirty-three only twerity-one elscaperl,—some of them, including the Captain himself, with smart cutlass wounds. One man, by name Amos DURFEE, of Buffalo, was found dead upon the dock, having been shot in the head with a musket- ball. The Caroline was loosened from its anchorage, towed into the current of the river, then set on fire, and suffered to drift down Niagara Falls. What became of the twelve missing individuals—whether they were killed on board, burnt, or carded over the cataract, or whether they were taken prisoners to Canada, was not ascertained. It is not to be credited, except on good evidence, that they were left on board the vessel. As the Canadian bolos returned from their achievement, they were fired upon from Navy Island, with what effect is riot known.

The attack on the Caroline tltrew the inhabitnnts of' Buffalo and of

the frontier generally into a perfect fury. Du RFEE'S corpse, his head shattered arid bloody, was exhibited in the streets of Buffalo. His funeral, which took place on Sunday the 31st of December, was attended by several thousands. The people held meetings arid resolved to take arms. The militia was called out at once ; and, to quote an expression from one of the newspapers, " the whole frontier bristled with bayonets." At Rochester, Albany, and other towns in the State of New York, the excitement was scarcely less intense than ut Buffalo ; and public meetings were to be held in several places. AItir. deters, savages, treacherous fiends, were the appellations bestowed on the British Canadians. To cross over to Cunada and march upon Toronto, was the cry : the delivery of the murderers into the hands of the Amerieans was the demand of the more moderate. A deputation Was sent to Sir FRANCIS HEAD with this requisition. As they had not returned when the latest accounts were sent, it wan charitably sur- mised that they had been murdered also. The Legislature of the State of New York being in session, the Governor sent it special message, calling die attention of the Legislature to the attack on the citizens. From the tone of the official and comparatively cautious statement, the exasperation generally prevalent may be guessed at.

" The territory of this State has been invaded, and some of our citizens Murdered, by an armed force from the province of Upper Canada.

" By the documents accompanying this communication, it will be perceived that the steam-boat Caroline, owned by one of our citizens, while lying at Saline Ger, on the Nisgara river, within the Ismintof this state, on the night of the 29th of December last, was forcibly seized by a party of seventy or eighty armed men in boats, which came from, and returned to, the Canadian shore. The crew

and other persons in this steamboat, amounting to thirty-three, were suddenly attacked at midnight, after they had retired to repose, and probably more than

o ne-third of them wantonly massacred. The boat was detached from the wharf to which it had been secured, set on fire, taken into the middle of the river, arid by the force of the current carried over the Niagara Falls. Twelve of the persous who were on board of it are missing ; and there is ground to fear forksrApturt by the invaders in their attack upon it, or perished in its descent over the cataract. Of those who escaped from the boat, one was killed on the wharf, and several others were wounded.

" I am warranted in assuring you, that the authorities, not only of this Stair: but■Of the United States, have felt an anxious solicitude to maintain the telt- thaw of peace and striet neutrality with the British provinces of Upper ma Lower Canada at all times since the commeneemeat of the civil disturbances therein, and have in all respects done what was incumbent on them to do to sustain these relations. The occurrence to which I have alluded is an outrage that has not been provoked by any act done or duty neglected, by the Govern- meat of this State or of tke Union. If it sliould appear that this boat was in. tended to ba, used for the purpose of keeping up an intercourse between this State tontaffltvy Island, which IN now held by an asiremblage of persons in de- fiance of the Canadian Government, this circumstance would furnish no jus• tification for the hostile invasion of our territory and the destruction of the lives of our citizens.

" The General Government is intrusted with the maintenance of our foreign relations, and will undoubtedly take the necessary steps to redress the wrong and sustain the honour of the country."

It is not so clear as the Governor of' New York imagines that the employment of the Caroline in conveying men and stores to the insur- gents on Navy Island afforded no justification for the attack on that vessel. There is no doubt that she was so employed in contravention of the laws of the United States. Application had been made to the American Government to prevent the interference of its citizens in the quarrel; and the illegality of such inte, consti

of treaty, was recognized by proclamations wnloh_.pr vertheless, it took place openly and systemitticully. ems conclusion ? Either that the United States Government would not, or that it could not, secure obedience to its own laws and the fulfil. ment of treaties. Under these circumstances, what were the British truthorities to do? Were they to suffer hostile expeditions to be fitted out ugainst them from ports friendly in name only ? Suppose an ana- logous case. Were the Government of Portugal to allow privateers to lie fitted out at Lisbon for attacks on British propetty by land or sea, would it be pretended that British vessels of war might not chase them n into the Tagus, and burn or scuttle them there ? Would it net he a justification, that the Government of Portugal having been applied to, t prohibited by law, but could not prevent, the outwit ? Still, it must ' be admitted thut the midnight attack on the Caroline, lying at anchor in u pert of her own country, and nut then engaged in any illegal or

hostile act, was ii very questionable proceeding. If the circumstances of cluelty mentioned in the American prip6rs really took place, it was most atrocious • but we wait fur evidence before crediting the Ame- rican account of the particulars. With regard to the policy of the seizure of the Caroline, there can, we suppose, be but one opinion. To exaspeerte the people of the United States, and furnish them with an excuse for joining the Canadian nnalecontents' is precisely what prudent men would have avoided. It is said that IVI*Nsn, the commander of the Upper Canadian Militia at Chippewa, lost no time in disclaiming any par. ticipation in the invasion of the American territory. What sort of discipline does he tnaintain, that he did trot prevent it ? The excited Republicans refuse to credit his disclaimer, and charge him with having more than once violated their territory, on Grand Island, which lies within about a mile and a half' of Navy Island. One of the New York wipers mentions a rumour, that the Royal. ists attacked Navy Island on the 1st of January, but were repulsed with loss. It is certain that great prepare/jags had been made for attacking it. 'Fire possession of the island -1N or non. emysequenc_c except as a rallying point • and only then on the supposition that rr large portion of the population of Upper Canada is ready to join Macas:atzte : but that such 8 disposition is extremely prevalent in the province, has not been proved by any thing that has recently occurred. 'the session of the Legislature of Upper Canada was opened, a few days before the usual trine, on the ilkith of December, by Governor H CAD. The speech of that funetionary is .• egornet ipse " from be. ginniug to end. Adverting to Macaaszit;'s insurrection, he says-

" As soon as this conspiracy became known to me, I determined that, for

the public good, I would allow it to work its own cure ; 1,at. us I felt con- vinced that that cure would never be admitted to be perfect if her Majesty's troops were required to take any part in the contest, I cheerfully approved of their leaving the province, in oritt that the people of Upper Canada, in a state of uncontrolled independence, might be allowed another upper tuirity of unequi• vocally demunsttating whether they would strewn t me (Jr deset t roe in the de. termination I bad evinced to muiutain fur their: the British Constitution in- violate.' " Besides parting with the troops, 1 further resolved to place in the hands of the civil portion of the crimmunity all the muskets (about 4.000) which the tody of the Mayor, Aldermen, arid Commonalty of the city of Toionte: Go„vewroirtniet,:ittliarl in store; and I accordingly deliveted them over to the cut-

either soldiers or weapons to enhoce my (Iroise, I allowed the leader of the intended insurrection a full opportunity to make his intended ez. periment —I freely alluued him to write what he chose, say what he chose, do what he chose. I allowed him to assemble his deluded adherents for the pun. pose of drill / even allowed them trnopposed to assemble with loaded fire. arms ; and, in spite of the remonstrances which, from almost every district is the province, I received from the peneeuble portion of the community, lallowed him to make deliberate preparations jbr revolt ; far I freely cerif.ss that I did underrate the degree of audacity alai cruelty which these armed insulters ofthe law were prepared, as events have proved, to exhibit. • • •

"The ultimate object of the conspiracy was seiled tinder a mysterious se- crecy, which I had no desire to penetrate and idying iu.plicitly on the people, so little did I inquire into it or impede it, that I was neinnily in bed and asleep, when I was awakened by a messenger, who abruptly informed me that II nowe-. rous body of armed rebels hart been congregated by their leader; that the murder ot a veiciuo offi...t.• of divinction, a settler in the province, hail already been committed; and that the assailants were within one hour's march uf Toronto."

This passage is the mo.t important in the speech, and has therefore been quoted at length. It diononstoites the utter unfitness of the man for the post he occupied. He absolutely glories in the grossest neglect of duty with which the ruler of a country con be charged. Ile prides himself on having encouraged the disaffected to revolt. Instead of tutting precautions to prevent rebellion, Inc encouraged the commission

of high treason. Regardless of remonstrances, spurning advice, eager only for the opportunity of proving his own superiority and of wreak- ing his vengeauce on the opponents of his government, Sir FRANCIS HEAD hazarded the overthrow of the Queen's authority in the pro.

yince; and if his notion of the character and objects of the rebels be correct, the pillage and slaughter of her Majesty's loyal se, jects. If impeachment, now-a days, were not mere brutum fulmen in all hands, we should say that no public officer ever deserved it more than Governor HEAD; and there would be no occasion to go beyond his own speech for evidence to support the charge. After dwelling with triumph on the suppression of the rebellion, Sir FRANCIS proceeds to. complain of the support given by citizens of the United States to the insurgents pn Navy Island. This portion of his speech is foolishly insulting tt his Republican neighbout a-

" The interference of foreigners in the domestic policy of a free ccuntry is an aggression which no nation of character can ever submit to endure (especially

where a band of people, violating their own laws, our laws, as well ;al the sacred

obligations of national amity, intrude themselves upon the peaceable inhabitants, iselessly to advocate by force of arms the practical blessings and advantages of Republican instituttons, which, by their own showing, have (it least ended with them in anarchy and plunder); and as every country is a natural fortress to its inhabitants, as every village is a strong military position, at d as every bridge and ravin can he advantageously defended, I must own tlmt, deeply as I Wield I -fliet of this nature, I entertain no feeling of anxiety for aka te..

There is nothing else in Governor HEAD'S speech worthy of espe- cial notice, except that he had been in communication with the Ame- rican Government on the subject of the breach of treaties by its citizens. The President of the United States had issued another proclama- tion, enjoining neutrality. But if this has no more effect than pre- vious documents, it will be little better than waste paper. Ile had laid before Congress documents relative to the seizure of the Caroline, and .._ applied for additional powers to enable him to prevent the interference of United States citizens in the affairs of other nations, mid to fulfil the treaties into which the American Government had entered. He characterized the attack on the Caroline as "an outrage of an aggravated character." A discussion which arose on this subject in the Senate was distinguished by a friendly tone towards England. Other pro- ceedings at Washington have not quite so friendly a character. A Committee, appointed to inquire into alleged encroachments on the North-west territory of the United States, has reported, that some parties connected with the Hudson's Bay Company, had formed a settlement on lands of the United States ; and Mr. EVANS of Maine bad given notice of a bill to authorize the President to send surveyors and engineers on the disputed territory between Maine and New Brunswick, and "rein a line" in conformity with the claim of the United States.