officers here not to have been exaggerated. To that end I had caused a copy to be made which I would leave with him. On the main object for which I had sought an interview, the reading to him your despatch No. 260, I found, upon an examination of the various papers I had brought with me, that I had left it at home after all. But I gave the substance of it, and as his lordship intimated that he would like a copy of it, and I saw no objection to it, I agreed to send him one instead of putting him to the trouble of another correspondence. We then had some desultory conversation on the case of the Emily St. Pierre, and on the progress of the war, which last his lordship seemed to admit to have the appearance of drawing to a close. We also talked over the action of General Butler. On the whole, I have never known an occasion in which his lordship manifested more good humor and a more kindly spirit. The latest manifestation of it may be perceived in the remarks made by him a short time afterwards in the House of Lords. This day the motion of Mr. Lindsay, affirming the desirableness of the recognition of the insurgents, is to be brought forward in the House of Commons. His lordship casually alluded to it in the course of our conversation as a matter of little importance. In point of fact, the character of our latest news would seem to render the agitation of the question almost ridiculous. A newspaper report of the result will doubtless go out in the steamer that carries this despatch. I have the honor to be, sir, your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. CHARLES FRANCIS ADAMS. No. 275.] Mr. Seward to Mr. Adams. DEPARTMENT OF STATE, Washington, June 23, 1862. SIR: I send you a copy of a report made by Lieutenant Charles McDougal, of the United States navy, dated April 13, 1862, showing that, in pursuance of orders from the British admiralty, he had been required to remove the United States ship-of-war Saginaw from the colony of Hong Kong,in China, and its dependencies. The interests of American commerce in the east require the presence of American vessels there, and with it the enjoyment of all the rights of maritime powers. No British interest can be injuriously affected by the presence of such vessels. But, on the other hand, their presence is beneficial to the interests of all the western powers. You will please make the fact communicated by Lieutenant McDougal known to Earl Russell, as a pregnant illustration of the unnecessary and injurious operations of the attitude held by the British government in regard to the insurrection existing in the United States. We shall no further urge a change of that attitude, having exhausted the argument. But it will occur to every one that the American people are not likely to be always satisfied with performing treaty stipulations without reciprocity. I am, sir, your obedient servant, CHARLES FRANCIS ADAMS, Esq., &c., &c., &c. WILLIAM H. SEWARD. Lieutenant McDougal to Mr. Welles. U. S. STEAMER Saginaw, Macao, April 13, 1862. SIR: I have the honor to report the following: The anticipated troubles with England having subsided, on the 19th ultimo I removed this vessel from this place to Hong Kong, deeming Hong Kong to be the better place for carrying out any instructions I might receive from the department concerning her. On the 5th instant I received a call from the harbor-master, who informed me that he had been instructed to notify me to remove the United States steamer Saginaw from Hong Kong, at the same time handing me a letter containing the notification and enclosing a proclamation just issued by the governor, all of which I enclose. There being no other course for me to pursue than that of complying with the requirements made, on the 10th instant I got under way and steamed over to this place, where I shall await instructions from the department. Very respectfully, your obedient servant, CHARLES J. MCDOUGAL, Lieut. U. S. navy, in charge of U. S. steamer Saginaw. Hon. GIDEON WELLES, No. 3.] The Harbor-Master at Hong Kong to Lieutenant McDougal. HARBOR-MASTER'S OFFICE, SIR: I have the honor to enclose a proclamation issued by his excellency the governor, having reference to the hostilities which are now carried on between the States of North America which have seceded from the Union and those which adhere to it, and, in compliance with its provisions, beg to request you will be good enough to remove the United States sloop-of-war Saginaw, under your command, from the colony of Hong Kong and its dependencies. I have the honor to be, sir, your most obedient servant, * SIR: Your despatch of June 6 (No. 171) has been received. The account of public opinion and public feeling in England concerning our affairs which it contains harmonizes in all respects with Mr. Dayton's report that the statesmen of France, including the Emperor, are no less skeptical about the restoration of the Union since the capture of New Orleans than they were before. You tell me that in England they still point to the delays at Richmond and Corinth, and they enlarge upon the absence of displays of Union feeling in New Orleans and Norfolk. Ah, well! skepticism must be expected in this world in regard to new political systems, insomuch as even Divine revelation needs the aid of miracles to make converts to a new religious faith. Corinth had already fallen on the very day when its supposed possession by the insurgents was deemed by the British public a ground for withholding their faith. A battle had also then been. fought at Richmond, which, we think, was preparatory to the surrender or evacuation of that city. Trade has actively begun at New Orleans, and cotton is shipped from Memphis to New York. Unbiased observers would discern no sign of a possible recovery of the Mississippi and its immediate and remote tributaries by the insurgents. Unbiased thinkers would conclude that the authority of the nation whose naval and merchant marine navigate every river in the United States would not long be denied by the people living on their borders, especially if it should be content with defending them against dangers, carrying their mails, and distributing among them rewards and honors, while it left them in the possession of rights of self-government in a degree elsewhere unknown. The reassurance of the favor of the Commons which the ministry have recently received is probably auspicious to the welfare of their great country. To us it brings the modified gratification that, unsatisfactory as its policy towards this country is, we are taught to believe, I know not how justly, that the party which seeks its overthrow is even more intolerant of a nation which prefers union, independence, and peace under republican institutions to division and subjection to foreign domination, with endless war. I am, sir, your obedient servant, CHARLES FRANCIS ADAMS, Esq., &c., &c., &c. WILLIAM H. SEWARD. Mr. Adams to Mr. Seward. No. 179.] LEGATION OF THE UNITED STATES, SIR: Notwithstanding the adverse news lately flowing in from America. to the sympathizers with the rebels respecting the loss of their vessels and outfits, the effect of which has been to put an end to insurance on such risks, I continue to receive information of the preparation of such adventurers. One most flagrant instance has been presented to my attention by Mr. Dudley, the consul at Liverpool. I considered it so important that I have felt it my duty to make a representation of it to her Majesty's government. The uniform ill-success which has attended all my preceding remonstrances especially in the very parallel case of the gunboat Oreto, makes me entertain little hope of a more favorable result now. But the record would hardly seem complete without inserting it. As Captain Craven, of the Tuscarora, has sent notice to this legation of his departure from Gibraltar and his arrival at Cadiz, I have taken the responsibility of asking him to come to Southampton for orders. Should it be possible to take any measures with prudence to break up the voyage of this vessel, I shall advise him of the fact. I have the honor to be, sir, your obedient servant, SIR: Matters remain here pretty much in the same condition that they were in last week. The pressure for cotton is increasing in severity as the stock decreases. A sudden demand from the continent has led to the export of a considerable quantity, the effect of which has been to derange the calculations of the probable duration of the amount on hand. This consideration, taken together with the late unfavorable weather to the growing crops, tends to make people grave. There is not, however, so much talk of intervention or even of mediation in our affairs as there was some weeks ago. The news of the capture of Memphis and of the recovery of our control of the Mississippi, like that of every preceding stroke of a decisive character, put an end for the time to such agitation. The impression is growing stronger that all concerted resistance to us will before long be at an end. But there is still an eager belief, that is fostered by the confederate emissaries, that there will be irregular and continuous opposition to an extent sufficient to make peace and reunion impossible. Some are still supported by a lingering hope that the movements of the Emperor Napoleon in Mexico may take a turn against the United States. The darling desire of the governing classes that the United States may be irrevocably divided, though subdued in expression by events, still remains as closely cherished as it was on the first breaking out of the disturbances. It is not to be denied, however, that the trial to which the people of this country are about to be subjected is a most serious one. We may yet hope that the fears entertained of the growing crop will prove ill-founded. Even in that case it is difficult to see how the operations in the great manufacturing counties are to be carried through the next winter without severe suffering. It is scarcely to be supposed that the crop of cotton now in the ground in the United States will at all compare in amount with that of ordinary years, and it may be very small. In any event, it will not be available until quite late in the season, The present stock will last, perhaps, three months. The only resource left for a supply is in the disposition that may be made of the remainder of the crop of last year. The exaggerated accounts of destruction which come from the American papers have the effect of persuading people that the spirit which inspires this sacrifice is pervading the entire population of the slaveholding States. Hence, that no dependence is to be put on any considerable aid from this source. At the same time, it seems impossible to find fault with the government of the United States, which is doing everything in its power to open the channels of supply. All that it could be expected to do further is to proceed in the same policy as fast as circumstances will appear to justify it. I uniformly reply to all representations made to me that great movements require time. Hence, that it is not wise to prejudge anything in the existing condition of America. Thus far our progress has outstripped all their expectations. It may do so to the end of the chapter. Nay, it will do so, provided they do not choose to put obstacles in the way. Their policy should have been to favor our efforts instead of disparaging them; to augur good rather than ill results. If, by their ill-disguised antipathy, a favorable issue should prove to have been delayed or partially impaired, they have themselves to thank, not us, for the evil consequences. There seems to be confidence in the success of confusion, in my belief, as little founded in justice as any of the preceding calculations of these infatuated men. I have the honor to be, sir, your obedient servant, Hon. WILLIAM H. SEWARD, CHARLES FRANCIS ADAMS. Secretary of State, Washington, D. C. No. 281.] Mr. Seward to Mr. Adams. DEPARTMENT OF STATE, Washington, June 26, 1862. SIR: It is my painful duty to bring, through you, to the notice of the British government facts in relation to the port of Nassau, a possession of her Britannic Majesty near the southern extremity of the United States, which are believed to be unquestionable. From the commencement of the present rebellion in this country, and especially since the establishment of the blockade, that port has been used as a place of deposit by the insurgents for munitions of war sent thither for their use by their agents and sympathizers in England. Sometimes the vessels in which they were carried thither have attempted to evade the blockade, and in a few instances may have succeeded. The main object in the choice of the site, however, seems to have been the facility with which contraband of war, transhipped to small schooners and similar vessels with little draft of water, might, in darkness, run into inlets op the southern coast of the island too shallow to allow them to be pursued by such vessels-of-war as can safely be used in enforcing the blockade. Recently, however, a gunboat called the Oreto, built in England for the service of the insurgents, with ports and bolts for twenty guns, and other equipments to correspond, arrived at Nassau. The facts in regard to her having come to the knowledge of the United States consul, he made a protest upon the subject, and she was seized by the authorities. She was, however, released immediately after the arrival at Nassau, on the 8th instant, of Captain Semmes, late commander of the pirate Sumter, and the consul informed this department that she was about to start on a privateering cruise. He has also represented that there were then in that port eleven large British steamers laden with contraband of war for the insurgents in this country. The release by the authorities at Nassau of the Oreto, under the circumstances mentioned, seems to be particularly at variance with her Britannic Majesty's proclamation of neutrality, and I am commanded by the President to protest against it, and to ask the consideration of her Majesty's government upon the proceeding as one calculated to alarm the government and people of the United States. I am also directed to ask the like consideration of her Majesty's government upon the manner in which the island |