Captain Chauncey, who commanded this ship at the time, was detached soon afterwards. From the senior lieutenant (Bankhead) now in command of the Pembina, I enclose a statement of the treatment and condition of the men; also one from Lieutenant Weaver, of this ship. Very respectfully, your obedient servant, Flag-Officer S. F. DUPONT, J. L. LARDNER, Captain. Com'g South Atlantic Blockading Squadron, Port Royal, S. C. UNITED STATES GUNBOAT PEMBINA, SIR: In answer to your request to furnish you with the particulars as to the treatment of the captain and two of the crew of the Louisa Agnes while on board the Susquehanna, of which ship I was first lieutenant, I have to state that the said captain and men, after having been transferred from the Cambridge, were both messed and berthed. He, the said captain, was recognized by several of the crew as having served on board a United States vessel-of-war, in the capacity of seaman, at some previous time. His personal appearance and want of cleanliness was such that I did not feel satisfied in berthing him in the steerage, where I had been in the habit of putting men of his class while on board of the Susquehanna. A ration was issued for himself and the two men, and a place assigned them forward orlop deck (under a strict charge) for their effects. He was treated as well as the crew of the ship, and quite as well, as I judged from his manners and appearance, as he had any reason to expect. While the said captain and two men were on board of the Susquehanna none of them were put in irons, or in any manner deprived of their personal liberty, but were treated with all the consideration which men in their situation were entitled to. Respectfully, your obedient servant, Captain JAMES L. LARDNER, J. P. BANKHEAD, Lieutenant Commanding. Commanding United States Steamer Susquehanna. UNITED STATES STEAMER SUSQUEHANNA. SIR: In reply to your request of this day I have to state that the master of the schooner Louisa Agnes was received on board this ship on the 10th day of September, 1861. He, Robert Nicholson, master of schooner Louisa Agnes, was furnished with bedding and a hammock, and took his meals in one of the messes of the crew of this ship, where he was treated a member of said mess. The said Nicholson would not have been received in any officer's mess, as his personal condition was filthy and ragged in the extreme. I am, respectfully, your obedient servant, Captain JAMES L. LARDNER, A. W. WEAVER, Lieutenant United States Navy. Commanding United States Steamer Susquehanna, Port Royal, S. C. Forwarded respectfully. J. L. LARDNER, Captain. Mr. Seward to Lord Lyons, DEPARTMENT of State, Washington, February 21, 1862. MY LORD: I have submitted to the President the copy of an instruction from Earl Russell which you left with me, and which bears the date of January, 23d. In this paper Earl Russell sets forth certain points upon which the British government differs from some of the conclusions which I presented to you in my note upon the Trent affair, of the 26th of December last. It is perceived that these differences do not disturb the conclusion contained in that paper upon which the case of the Trent was disposed of by this govern ment. ers. The differences stated by Earl Russell involve questions of neutral rights in maritime warfare which, though of confessed importance, are not practically presented in any case of conflict now existing between the United States and Great Britain. It is very desirable, however, that these questions should be settled, if possible, by an early understanding between the two governments. Nevertheless, Earl Russell, I think, will agree with me that they relate only to a part of the international law of maritime war, while there are other and kindred questions equally important and equally likely to arise in the disturbed condition of affairs which exists on this continent, and in any conflict which may happen in Europe. All such questions, moreover, affect not only these two nations, but all the other maritime powers. Earl Russell need not be reminded that the necessity which has existed for meliorations of the law of maritime war in regard to neutrals has been a subject of debates and even of conventions of such powThe friendly relations which this government holds to such powers require that all that it does in this connexion should be done with their full knowledge and with an expressed desire for their co-operation. This government has taken an active part in seeking to promote such meliorations through such conventions. Its views on this subject have undergone no change. It will cheerfully second any negotiations to that end which Great Britain, or any other maritime power, will inaugurate. If it shall seem preferable, it will itself initiate such proceedings. Our ministers accredited to such powers will, at an early day, receive full instructions to this effect. In the meantime your lordship may assure Earl Russell that, while the United States will justly claim as their own the belligerent rights which the customary practice allows to nations engaged in war, according to our present convictions, there is no melioration of the maritime law, or of the actual practice of maritime war, that the leading maritime states, including Great Britain, shall think desirable, which will not be cheerfully assented to by the United States, even to the most liberal asylum for persons and the extreme point of exemption of private property from confiscation in maritime war. I avail myself of this opportunity to renew to your lordship the assurance of my high consideration. Right Hon. LORD LYONS, &c., &c., &c. WILLIAM II. SEWARD. Lord Lyons to Mr. Seward. WASHINGTON, February 21, 1862. SIR: I will, without any loss of time, communicate to her Majesty's government the note which you have to-day done me the honor to write to me with regard to Earl Russell's despatch to me, of the 23d of last month, on certain questions of international law connected with the case of the Trent. I have the honor to be, with high consideration, sir, your most obedient, hum ble servant, Hon. WILLIAM H. SEWARD, &c., &c., &c. LYONS. Lord Lyons to Mr. Seward. WASHINGTON, March 6, 1862. SIR Her Majesty's government have considered with attention the correspondence which I had the honor to hold with you in the months of October, November, and December last, concerning the treatment experienced by the crews of two British schooners, the Revere and Louisa Agnes, which had been captured on a charge of breach of blockade. Her Majesty's government cannot but regard the putting of seamen belonging to these vessels in irons, under the circumstances in which, and for the period for which, this was avowedly done, as wholly unjustifiable. I am, however, instructed to express to you the satisfaction with which her Majesty's government have seen that, upon the matters being brought by me to your notice, you informed me that an instruction would be addressed by the Secretary of the Navy to the flag-officers of the blockading squadrons to use irons only when, and so long as, necessary, and in all cases to pursue the utmost kindness, consistent with the safety of captures and prizes, towards seamen captured in attempting to break the blockade. I am desired to add that her Majesty's government trust that this instruction will be so carried into effect as to prevent the recurrence of any cases similar to those of the Louisa Agnes and the Revere. I have the honor to be, with high consideration, sir, your most obedient, humble servant, Hon. WILLIAM H. SEWARD, &c., &c., &c. LYONS. Lord Lyons to Mr. Seward. WASHINGTON, March 19, 1862. SIR: With reference to the correspondence which I had the honor to hold with you in the months of October and November last, respecting the bag of despatches taken from Mr. J. P. Crosse, at Baltimore, I beg to inform you that her Majesty's government have obtained from her Majesty's acting consul at Richmond a description of the bag as it left his hands. That description is as follows: 66 The bag in question was of canvas, as usual, and was closed in such a manner as to prevent access to its contents without cutting the tape or cord, which was sealed through parchment with the seal of this consulate. The parchment had the following address on it: On her Majesty's service. E. M. Archibald, esq., her Britannic Majesty's consul, New York. Consulate of Virginia.'" Her Majesty's government consider that this seal and address ought to have been respected by the United States authorities, and her Majesty's government have consequently instructed me to complain to you of the bag's having been opened. I have the honor to be, with high consideration, sir, your most obedient, humble servant, Hon. WILLIAM H. SEWARD, &c., &c., &r. LYONS. Mr. Seward to Lord Lyons. DEPARTMENT OF STATE, MY LORD: Your note of March 19 recalls the subject of a bag, which was found, in Octòber last, in the trunk of a person named Cross, in his attempt to pass the military lines of the United States. On the 23d of that month you informed me that you had been referred by General Dix to me, and you therefore asked me for such information concerning the transaction as it seemed proper that you should receive. I answered, on the 24th of October, substantially as follows: That I had received information from General Dix that a bag had been found concealed in the trunk of Cross, who was a spy of the insurgents, and who, by his escape, avoided arrest; that I therefore directed General Dix to send the bag to the Department of State; that on its arrival here it had a label attached, upon which was an address to Mr. Archibald, her Majesty's consul at New York, and the words "On her Britannic Majesty's service," but there was nothing to authenticate the bag as one having been forwarded by the British vice-consul at Richmond; that this fact, taken in connexion with the circumstances under which the bag was brought through the military lines of the United States, naturally excited doubts whether the bag contained official correspondence of the British authorities; that I therefore directed that the bag should be opened; that when it was opened it was found to contain not a single communication for Mr. Archibald, or for any other officer of the British government on this continent; that it did contain a few apparently official letters, addressed to functionaries of that government at London; that these letters were promptly forwarded, in the same condition in which they were received, to Mr. Adams, with instructions to cause them to be delivered to the persons to whom they were addressed, and that the other contents of the bag were and they would be retained here; that I thought it was unnecessary to specify their character, further than to state that they were such as no consul or acting consul of a foreign government has a right to forward in any way from a place in rebellion against the United States. In the note of the 19th of March, which is now before me, you state that her Majesty's government have obtained from her Majesty's acting consul at Richmond a description of the bag as it was when it left his hands; that this description is as follows: "The bag in question was of canvas, as usual, and was closed in such a manner as to prevent access to its contents without cutting the tape or cord, which was sealed through parchment with the seal of this consulate. The parchment had the following address on it: On her Majesty's service. E. M. Archibald, esq., her Britannic Majesty's consul, New York. Consulate of Virginia.'" You add that her Majesty's government consider that this seal and address ought to have been respected by the United States authorities, and her Majesty's government have, consequently, instructed you to complain of the bag's having been opened. I have the honor to say, in reply to your lordship's note, that I entirely agree with her Majesty's government in the principle that when a bag purporting to convey despatches on her Majesty's service is found sealed and duly authenticated by a consul, that seal and authentication ought to be respected by the United States authorities. I add, with pleasure, that in all cases where such an occurrence has happened the consular seal and authentication have been so respected, and in all cases of that character which shall happen hereafter the consular scal and authentication will be respected, and the bag or parcel will be left unopened and transmitted to its proper address. relying on the good faith of her Majesty's government that it will not suffer the consular privileges to be abused to the injury of the United States. I cannot, however, admit the fact, implied by your note, that a consular seal was violated in the case now under consideration, and for that reason alone I cannot admit the justice of your lordship's complaint. The bag, when it came to this department, had no consular seal or any other seal, nor were any traces of a seal observed. There was no signature to authenticate it as having been put up or despatched by the acting consul at Richmond. or any other agent of the British government. It was closed only with a simple twine, like an ordinary parcel sent out from a retailer's shop. The label might. for aught that it expressed, have been written by any hand, without any authority whatever. I have now taken pains to inquire of the deputy provost marshal at Baltimore. the provost marshal, and General Dix, through whose hands it had passed before coming to me, and I learn from them that when it came to their hands, respectively, it bore no seal whatever, and was not supposed by them to have ever been sealed. I have not been able, by pushing my inquiries beyond this point, to ascertain what other persons belonging to the service of the United States had possession of or control over the bag before its delivery to the deputy provost marshal at Baltimore, and so to ascertain whether it was sealed or authenticated when taken from the trunk of the spy in whose possession it was found. The inquiries will be continued, and the result, when ascertained, will be promptly communicated to your lordship. In the meantime you will excuse me for suggesting, first, that I cannot but remark the appearance of some reservation on the part of the acting consul at Richmond, in withholding the necessary explanations to whom he delivered the bag, how it happened to contain objectionable correspondence, and how it chanced to fall into the hands of a spy, who fled and abandoned the official correspondence when he was detected." Secondly, I notice, not without regret, that her Majesty's government do not express any disapprobation of the conduct of the consul at Richmond in placing objectionable correspondence in a bag of despatches, and covering it, as he alleges, with the seal of his consulate. I avail myself of this opportunity to renew to your lordship the assurance of my high consideration. Right Hon. LORD LYONS, &c., &c., &c. WILLIAM H. SEWARD. Memorandum of conversation. Lord Lyons called to-day upon Mr. Seward, and said, as perhaps was not extraordinary, the capture of New Orleans, which was expected by Mr. Seward to be a relief in the relations between the United States and other countries, on |