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report that the statesmen of France, including the Emperor, are no less skeptical about the restoration of the Union since the capture of New Or leans 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! skepti cism 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 con clude 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 coun try. 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 insti tutions 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,

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No. 179.]

Mr. Adams to Mr. Seward.

LEGATION OF THE UNITED STATES,
London, June 26, 1862.

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,

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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 circum stances 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.

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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,

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CHARLES FRANCIS ADAMS.

Secretary of State, Washington, D. C.

Mr. Seward to Mr. Adams.

No. 281.]

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 on 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

has been used as a deposit for arms and munitions of war intended for the insurgents in the United States.

You are charged with the duty of laying this subject before the British government. The legislative and executive authority of the United States having been exerted towards preventing similar proceedings by persons within our jurisdiction during the insurrection in Canada in 1837, we may claim on this ground at least a reciprocity from the British government. I am, sir, your obedient servant,

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SIR: Your despatch of June 12 (No. 172) has been received.

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I have also communicated to the Secretary of the Navy the valuable facts which it presents concerning the effect in Europe of the success of the blockading squadron in capturing vessels engaged in supplying the insurgents with contraband material of war, and also your important suggestions upon that subject.

Since I last discussed the military situation no event palpably affecting it has occurred. Our military and naval forces at Charleston were kept at figures only necessary to aid in maintaining the blockade while conflict has been challenged at some important strategic points. We learn that our generals, perhaps too impulsive, have, without instructions, made an attack and have been repulsed at Charleston. While the affair may serve to encourage the languishing hopes of the insurgents, it no more than Jackson's late raid in the Shenandoah valley affects the actual progress of the war. The operations against Richmond continue to go on to the satisfaction of the military department.

Through many difficulties the work of pacification and revival of commerce at New Orleans and at Memphis is successfully advancing. The destruction of cotton by the insurgents seems to have come to a pause, and considerable shipments of that staple are coming from Memphis and Nashville. The Secretary of the Treasury is advised that large quantities of sugar are coming from New Orleans.

With the President's permission, I have interposed between Major General Butler and several foreign consuls to save possible complaints and prevent unnecessary complications from arising there at a juncture so important, and even so critical. These matters have been harmoniously arranged, as far as possible, here, with the representatives of those concerned, so as to relieve yourself and other ministers in Europe.

I have carefully considered the information you give us concerning speculations and schemes entertained in London and Paris about what is there called mediation by one or more powers on that continent in our affairs.

Moreover, I have not neglected to collate this information with the remaris made by British ministers and statesmen, and by the influential partisan British press, although I am not accustomed to draw such remarks into this correspondence.

I notice with pleasure that Earl Russell spoke reassuringly to you in a late conversation to the effect that no change of counsels had been adopted,

and certainly the statements made by himself and Lord Palmerston in Parliament are sufficiently decisive on that subject. Moreover, notwithstanding all sinister rumors, the President is satisfied that the French government has at present no design or purpose of changing its attitude for one that would give any new embarrassment to the United States.

For the rest I may say that if anything could be contrived to warm to an intenser heat the fires of the national patriotism beyond the events occurring in our own country every day, it would be these perpetual demonstrations of wishes in Europe for the dissolution of the American Union.

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SIR: In the absence of the Secretary of State, I transmit to you a resumé of the military situation according to the advices last received. In regard to other subjects, left to be treated of by him upon his return to the capital, he will communicate with you by the steamer of next week.

The reports from the army near Richmond concerning the events of the past few days are somewhat imperfect, owing to a temporary interruption of telegraphic communication.

General McClellan, at the commencement of his operations in the vicinity of Richmond, used for his supplies and communications the line formed by the York and Pamunkey rivers, and the railroad from the point where it crosses the latter stream at White House to his camps on the Chickahominy. At the period when this line was adopted the James river had not yet been opened by our gunboats.

In carrying out his plan of operations against Richmond, General McClellan has been, as rapidly as practicable, transferring the greater portion of his force to the south side of the Chickahominy. This, on the one hand, left his line of communication by way of the White House more or less exposed, but, on the other, brought him nearer to the James river, and enabled him to open a new line of communication there. On Thursday and Friday of last week, not unexpectedly to him, the enemy assailed the force which still occupied the north side of the Chickahominy, thus precipitating the movement above described as in progress. A severe engagement ensued, with considerable loss of life, but little or none of material. He succeeded, however, in completing the transfer of his troops and supplies to the south side of the Chickahominy and in opening communication with our fleet on James river. His position now, therefore, as compared with his previous one, is advanced nearer to Richmond, and covers ground hitherto held by the enemy, and he has exchanged one main line of communication for another.

From the west all accounts are satisfactory. The power of the enemy to attempt offensive demonstrations of any magnitude is practically destroyed. The fortifications at Vicksburg are the only obstacles remaining to our complete control of the navigation of the Mississippi river, and in view of the preparations now making no doubt is entertained of their early reduction. The loyal sentiment is becoming gradually developed in the regions occupied by the troops of the United States. Numbers of persons are daily

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