Viscount Treilhard to Mr. Seward. [Translation.] LEGATION OF FRANCE IN THE UNITED STATES, Washington, August 8, 1862. The Viscount Treilhard presents his compliments to Mr. Seward, and has the honor to communicate to him the papers, hereunto annexed, referring to a Frenchman whose funds are held in custody in consequence of a conflict of authority between Mr. Reverdy Johnson and General Butler. Count Mejan to Mr. Mercier. [Translation.] CONSULATE OF FRANCE AT NEw Orleans, New Orleans, July 24, 1862. Mr. MINISTER: I have the honor to send you the two papers, enclosed herewith, relating to the affair of Mr. Edward Dupasseur. Mr. Reverdy Johnson, to whom this affair had been submitted, had given the opinion that the funds deposited were the legitimate property of Mr. Dupasseur, and should be restored to him; but this withdrawal was again prevented by a formal order from General Butler, who has refused to give a reason therefor. This new decision in the withdrawal of the funds belonging to Mr. Dupasseur may occasion to him considerable injury, in consequence of the loss of interest, and of the possible depreciation of specie, both in gold and silver. Be pleased, Mr. Minister, to accept the assurances of my high consideration, COUNT MEJAN. Count H. MERCIER, Envoy Ex. and Min. Plenipo. of France in the United States, Washington. P. S.-The funds referred to belong to Messrs. Edward Dupasseur & Co. and not to Mr. Dupasseur alone. Mr. Dupasseur & Co. to Count Mejan. [Translation.] NEW ORLEANS, July 24, 1862. SIR: On the 14th of April last we purchased of the Citizens' Bank an amount of coin amounting to $716,196, which we settled for by our drafts, at four months' sight, upon sundry bankers in Paris, and upon our house in Havre. With your consent we deposited this coin at the consulate of France, and carried the bill of sale of the bank, receipted for by the cashier, to be sworn to at your chancery, as French property. About one month since we were summoned, in your presence, to appear before General Butler, who interrogated us upon this purchase of coin. We replied to him that we had only intended making a purely commercial transaction, advantageous to us, because it offered us a profit of from three per cent. to four per cent.; and that, as he had appeared to suspect, this money was in no way intended to purchase arms in Europe, but really to pay the drafts which we had drawn against it. We added, furthermore, that we had never run the blockade, nor made any contract with the confederate government or with its officers. General Butler requested us, and also yourself, not to take this coin from the consulate until the arrival of the honorable Reverdy Johnson, the commissioner of the United States who was to settle the matter; to which we acceded. Last week we were interrogated by the honorable Reverdy Johnson, who made a record of our answers. We communicated to him and gave him copies of the letters addressed to our different bankers, and to our house, in relation to this ! transaction, and also as to its entry in our books. We added thereto a statement of facts, of which you will find, enclosed, a true copy. We went, this morning, to see Mr. Reverdy Johnson, and to ask him for his decision; he replied to us that he had no authority to release this coin here, but immediately on his arrival at Washington he would make his report, a report which, according to his own words, he left us to infer would be favorable. We asked him, at the same time, why General Butler had prevented us from withdrawing this coin from the consulate; he replied to us that he did not know. Such are the facts Mr. Consul which we take the liberty to relate to you, asking the favor of you to have the goodness to submit them to the ambassador of France at Washington. We protest, in the most solemn manner, against any insinuation or suspicion whatever which should tend to have the government of the United States to suppose that this coin is destined to any other object than the one of covering the drafts which we have drawn to meet it. We repeat that we have only intended to make a purely commercial transaction, and cannot account for the reasons which have caused its seizure. We beg you to insist with the ambassador that this coin be returned to us immediately, for not only does any delay in its transmission seriously injure our interests, but further exposes us to the dangers inherent to the state of war, and the complications which may arise therefrom. We have the honor to be, count, your very obedient servants, The Count MEJAN, Consul of France at New Orleans. Statement of Edward Dupasseur. Edward Dupasseur, one of the claimants, makes the following statement, under oath, to be submitted to the Hon. Reverdy Johnson, commissioner of the United States: On the 21st day of April last I sold to the Citizens' Bank the following drafts, viz: Three millions five hundred eighty thousand nine hundred and eighty francs, producing at the rate of exchange of five francs the dollar, seven hundred sixteen thousand one hundred and ninety-six dollars, payable in specie, which I received in payment from the bank as follows: Being a French subject, I deposited said coin at the office of the French consul for safe keeping, and had the invoice made to me by the bank, sworn as French property. The drafts I gave to the bank were drawn at four months' sight, and by special agreement were not to be accepted until this coin was shipped, so as to give me ample time to pay the same out of the proceeds of the coin. The operation was purely a commercial one and perfectly safe and sound for me. I expected, and still expect, when the coin is shipped, to make three to four per cent., depending, in great measure, on the price of silver in Europe at the time of the arrival of this specie. The operation, as regards to the bank, was equally advantageous: firstly, in placing their coin in Europe; secondly, in giving at the rate of exchange of this, say a handsome profit, from ten to twelve per cent., while liquidating, in the same time, their liabilities. I do further swear and declare that I have never been running the blockade or making any description of contract whatever with the confederate government, or any of its officers, for the purpose of supplying it with arms or ammunitions of war. On the contrary, I have always maintained a perfect neutrality, as I was bound to do as a French subject. I remain, very respectfully, pour copie couforme, EDWARD DUPASSEUR. Mr. Seward to Viscount Treilhard. DEPARTMENT of State, Washington, August 9, 1862. Mr. Seward presents his compliments to the Viscount Treilhard, and has the honor to acknowledge the receipt of papers which accompanied his note of yesterday in regard to a Frenchman whose funds are held in custody in conse quence of a conflict of authority between Mr. Reverdy Johnson and General Butler. In reply Mr. Seward begs leave to inform the Viscount Treilhard that no decision can be arrived at in the case until the report of Mr. Reverdy Johnson, who is daily expected here, shall have been received. Viscount Treilhard to Mr. Seward [Translation.] LEGATION OF FRANCE IN THE UNITED STATES, Washington, August 12, 1862. SIR: I request you, for the purpose of facilitating communications between this legation and the consulate of France at Richmond, to be pleased to give the necessary orders to the end that our letters may be received at Norfolk, where Mr. Paul can have them sent by an express, with the authority of the commanders of the federal forces, and that letters which Mr. Paul may cause to reach Norfolk by the same means may be forwarded to us at Washington, it being well understood that the packets thus exchanged shall contain nothing but French official letters. Be pleased to accept, sir, the assurances of my very high consideration. VTE. JULES TREILHARD, Mr. Seward to Viscount Treilhard. DEPARTMENT OF STATE, Washington, August 13, 1862. SIR: I have the honor to acknowledge the receipt of your note of yesterday, relative to the issuing of orders for the purpose of facilitating communications between the French legation here and the consulate of France at Richmond, and to state that a translation of it has been sent to the Secretary of War, with a request that he will be pleased to comply with your wishes on the subject. I avail myself of this opportunity to renew to you, sir, the assurance of my high consideration. Viscount TREilhard, &c., &r., &c. WILLIAM H. SEWARD. Mr. Seward to Viscount Treilhard. DEPARTMENT OF STATE, Washington, August 20, 1862. SIR: You have already been informed that the complaint made by your legation to this department concerning a request or requirement made by Major General Butler, commanding at New Orleans, upon Count Mejan, the French consul there, that he would retain seven hundred and sixteen thousand one hundred and ninety-six dollars ($716,196) which, he said, was deposited with him by Messrs. Dupasseur & Co., was by me referred to the examination of the Hon. Reverdy Johnson, who had been appointed by the President as a commissioner for this department. I have now the honor to inform you that Mr. Johnson has performed the duty confided to him, and has submitted his report thereupon. I think it proper to furnish you with so much of Mr. Johnson's general report as relates to that transaction, and I have further to state that it has been approved by the President. In accordance with the conclusion of the report, I have the honor to advise you that instructions will at once be given to Major General Butler, the acting military authority at New Orleans, to relinquish all claim on behalf of the United States upon the funds in question, so that Count Mejan will be at liberty to pay it to whomsoever may be entitled to receive the same. I avail myself of this opportunity to renew to you, sir, the assurance of my high consideration. The Viscount TREILHARD, &c, &c., &c. WILLIAM H. SEWARD. Mr. Johnson to Mr. Seward. [Extract.] WASHINGTON, August 19, 1862. SIR : The item of seven hundred and sixteen thousand one hundred and ninety-six dollars retained by the request or order of Major General Butler in the hands of Count Mejan, the French consul. This item was not in terms embraced by either of the commissions in my possession whilst I was in New Orleans; but considering it as in the spirit of the first, that of the 10th June, I investigated it, and I am glad to understand that it was the subject of a special authority to me after I left Washington. 1. The general considerations which belong, as I have supposed, to the first item, apply with equal force to this. It is unnecessary to repeat them. The transaction, as will appear by the depositions of Mr. Denégre, the president of the Citizens' Bank, of Mr. E. Dupasseur, and of Mr. Antoine Bidault, the bookkeeper of the house of E. Dupasseur & Co., the claimants, hereto annexed, marked Nos. 1, 2, and 3, was this: The bank, in addition to the deposit of $800,000 with the agent of Messrs. Hope & Co., needed other credits in Europe. Their principal business was the dealing in foreign exchange, and, to enable them to do this, it was necessary to have a large credit abroad. To effect this object they made this negotiation with Messrs. Dupasseur & Co., known to be perfectly responsible merchants of New Orleans, to wit: to purchase from them bills at certain rates on Paris for the amount of $716,196, and to pay for the same in coin. The bills were not to be accepted until the drawees were advised of the shipment of the coin by Dupasseur & Co. The bills were drawn, delivered to the bank, and the coin handed over to Count Mejan, the French consul, to be retained until shipped. They were remitted by the bank to their correspondents abroad for acceptance, but have not been accepted because the coin has not been sent on. Things remained in this condition when Major General Butler requested the consul to retain the coin, which he has ever since done. On these facts the only question is, have the United States a right to the fund? That the transaction was one of perfect good faith is evident from the depositions referred to. It was a mere business matter, in which the parties had a clear right to engage. That the bank at the time owned the coin was not denied. Nor was it questioned that the agreement was entered into and |