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States consul at Liverpool to submit to the collector of customs at that port such evidence as he may possess tending to show that his suspicions as to the destination of the vessel in question are well founded.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

CHARLES FRANCIS ADAMS, Esq., &c., &c., &c.

RUSSELL.

CUSTOM-HOUSE, July 1, 1862.

Your lordships having referred to us the annexed letter from Mr. Hammond, under secretary of state for foreign affairs, transmitting, by desire of Earl Russell, copy of a letter from the United States minister at this court, calling attention to a steamer reported to be fitting out at Liverpool as a southern privateer, and enclosing copy of a letter from the United States consul at that port reporting the result of his investigation into the matter, and requesting that immediate inquiries may be made respecting this vessel, and such steps taken in the matter as may be right and proper, we report:

That immediately on the receipt of your lordship's reference we forwarded. the papers to our collector at Liverpool for his special inquiry and report, and we learn from his reply that the fitting out of the vessel has not escaped the notice of the officers of the revenue, but that as yet nothing has transpired concerning her which has appeard to demand a special report.

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We are informed that the officers have at all times free access to the building yards of the Messrs. Laird, at Birkenhead, where the vessel is lying, and that there has been no attempt on the part of her builders to disguise, what is most apparent, that she is intended for a ship-of-war; and one of the surveyors in the service of this revenue, who had been directed by the collector personally to inspect the vessel, has stated that the description of her in the communication of the United States consul is correct, with the exception that her engines are not constructed on the oscillatory principle. Her dimensions are as follows: length, 211 feet 6 inches; breadth, 31 feet 8 inches; depth, 17 feet 8 inches, and her gross tonnage, by the present rule of admeasurement, is 682-3 tons. The surveyor has further stated that she has several powder canisters on board, but as yet neither guns nor carriages, and that the current report in regard to the vessel is that she has been built by a foreign government, which is not denied by the Messrs. Laird, with whom the surveyor has conferred; but they do not appear disposed to reply to any questions respecting the destination of the vessel after she leaves Liverpool, and the officers have no other reliable source of information on that point; and, having referred the matter to our solicitor, he has reported his opinion that at present there is not sufficient ground to warrant the detention of the vessel or any interference on the part of this department, in which report we beg to express our concurrence. And with reference to the statement of the United States consul that the evidence he has in regard to this vessel being intended for the so-called confederate gov ernment in the southern States is entirely conclusive to his mind, we would observe that inasmuch as the officers of customs of Liverpool would not be justified in taking any steps against the vessel unless sufficient evidence to warrant her detention should be laid before them, the proper course would be for the consul to submit such evidence as he possesses to the collector at that port, who would thereupon take such measures as the provisions of the foreign enlistment act would require; without the production of full and

sufficient evidence to justify their proceedings, the seizing officers might entail on themselves and on the government very serious consequence.

We beg to add that the officers at Liverpool will keep a strict watch on the vessel, and that any further information that may be obtained concerning her will be forthwith reported.

THOS. F. FREMANTLE.

GRENVILLE C. L. BERKELEY.

The LORDS COMMISSIONERS of her Majesty's Treasury.

Mr. Adams to Earl Russell.

LEGATION OF THE UNITED STATES,

London, July 7, 1862.

MY LORD: I have the honor to acknowledge.the receipt of your note of the 4th instant, covering a copy of the report from the commissioners of customs, respecting a vessel presumed by me to be in course of preparation at Liverpool to carry on hostile operations against the United States. In accordance with your lordship's suggestion, I shall at once instruct the consul of the United States to submit to the collector of customs at that port such evidence as he possesses to show that the suspicions he entertained of the character of that vessel are well founded.

I pray your lordship to accept the assurances of the highest consideration with which I have the honor to be, my lord, your most obedient servant, CHARLES FRANCIS ADAMS.

Right Hon. EARL RUSSELL, &c., &c., &c..

Mr. Adams to Mr. Wilding.

LEGATION OF THE UNITED STATES,
London, July 7, 1862.

SIR: I transmit herewith a copy of a note received by me from Lord Russell, in reply to my representation, founded on Mr. Dudley's letters of the 21st of June to me, respecting Mr. Laird's gunboat. In accordance with his lordship's suggestion, I pray you to furnish to the collector of customs, so soon as may be, any evidence which you can readily command in aid of the object designated.

I should be glad likewise to have such evidence made in duplicate, and one copy forwarded to me at the same time for possible use in another way at this point.

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SIR: The treaty between the United States and the republic of New Granada, signed on the 12th day of December, 1846, contains a stipulation which it will be seen was made not for any special or peculiar interest or

advantage of the United States, but for the benefit and advantage of all nations, and which is in the following words, contained in the 35th article of said treaty:

"And in order to secure to themselves the tranquil and constant enjoyment of these advantages, and as an especial compensation for the said advantages, and for the favors they have acquired by the 4th, 5th, and 6th articles of this treaty, the United States guarantee positively and efficaciously to New Granada, by the present stipulation, the perfect neutrality of the before-mentioned isthmus, with the view that the free transit from the one to the other sea may not be interrupted or embarrassed in any future time while this treaty exists; and, in consequence, the United States also guarantee, in the same manner, the rights of sovereignty and property which New Granada has and possesses over the said territory."

On the 26th of June last Mr. P. A. Herran, minister plenipotentiary of the Granadian confederation near the government of the United States, transmitted to this department a note, of which a translation is hereto annexed, marked H.

In this note Mr. Herran gave information that Mosquera, a revolutionary chief, who is engaged in subverting the Granadian confederation, had sent an armed force to occupy the Isthmus of Panama, which proceeding was opposed by an unavailing protest of the governor of Panama, and Mr. Herran therefore invoked the interposition of this government in accordance with the treaty obligation above set forth.

Simultaneously with the reception of this note of Mr. Herran's, substantially the same information which it gave was received from our consul residing at Panama; and the President therefore instructed our naval commander of that port to take care to protect and guarantee, at all hazards and at whatever cost, the safety of the railroad transit across the Isthmus of Panama. Mr. Herran now insists that, owing to the character of the population on the isthmus and the revolutionary condition of that region, the security of the transit across the isthmus cannot be adequately insured by the presence and activity of a mere naval force, and that the Granadian confederation is entitled, therefore, to the special aid of a land force to be sent from the United States, and suggests that it should be made to consist of three hundred cavalry.

This government has no interest in the matter different from that of other maritime powers. It is willing to interpose its aid in execution of its treaty and for the benefit of all nations. But if it should do so, it would incur some hazard of becoming involved in the revolutionary strife which is going on in that country. It would also incur danger of misapprehension of its objects by other maritime powers if it should act without previous consultation with them. The revolutionary disturbances existing in that quarter are doubtlessly as well known and understood by the governments of Great Britain and France as they are by this government, and they are probably also well informed of the proceeding of Mosquera, which has moved Mr. Herran's application to the President. He desires an understanding with these two governments upon the subject, and you are therefore instructed to submit the matter to Earl Russell, as Mr. Dayton will likewise be instructed to confer with Mr. Thouvenel.

The points to be remembered are, first, whether any proceeding in the matter shall be adopted by the United States, with the assent and acquiescence of the British and French governments?

Secondly, what should be the force and extent of the aid to be rendered to the Granadian confederation?

Thirdly, whether these governments will unite with the United States in guaranteeing the safety of the transit under the authority of the Granadian

confederation, or either of these objects, and the form and manner in which the parties shall carry out such agreement?

I hardly need say that this government is not less anxious to avoid any such independent or hasty action in the matter as would seem to indicate a desire for exclusive or especial advantages in New Granada than the British government can be that we shall abstain from such a course.

I am, sir, your obedient servant,

CHARLES FRANCIS ADAMS, Esq., &c., &c., &c.

WILLIAM H. SEWARD.

The same, mutatis mutandis, to Mr. Dayton, No. 180.

No. 185.]

Mr. Adams to Mr. Seward.

LEGATION OF THE UNITED STATES,
London, July 11, 1862.

SIR: The late cessation of our progress has had the effect of encouraging the hopes of the people here who sympathize with the rebellion. I think there can now be little doubt that they constitute much the greater part of the active classes of this kingdom. The efforts made by insurgent emmissaries to stimulate the popular discontents have not, however, been thus far attended with much effect. A most elaborate attempt of the kind at Blackburn, countenanced by a member of Parliament of some influence in the place, was signally defeated. Yet it is not to be disguised that the great rise that has occurred in the price of cotton will be attended by a diminution of the manufacture and a consequent enlargement of unemployed operatives. So long as Parliament remains in session, I am inclined to the belief that no particular consequences are to be apprehended. But, after the adjournment, should things appear to go on adversely with us, I shall not be surprised if some occasion be improved to plunge us into difficulty. It is at any rate my duty to prepare your mind for every such possibility. In this connexion I am constantly forced to observe how eagerly every act in the United States is caught up that may by possibility cast odium on the government. In this connexion it is not to be denied that General Butler is furnishing a good deal of material. Without desiring to express an opinion on the merits of his proceedings, I cannot help regretting that they appear at this distance to wear an aspect of want of courtesy toward the agents of foreign nations, which tends at this precise moment to increase the distrust with which our policy is regarded. I cannot help thinking that some form of general instructions to military officers holding responsible commands, in regard to the regulation of their official language, might tend to put a stop to many of the difficulties which have been experienced in the present contest. I cannot doubt that the reputation of the country abroad would be materially aided by such a measure.

I learned yesterday, from a credible source, that it is the intention of some of the ministers this evening to take new ground on the subject of America, should Mr. Lindsay decide to press his motion Should such prove to be the case, I shall forward a report of the debate to-morrow, by mail, via Queenstown.

I have the honor to be, sir, your obedient servant,
CHARLES FRANCIS ADAMS.

Hon. WILLIAM H. SEWARD,

Secretary of State, Washington, D. C.

Mr. Seward to Mr. Adams.

No. 298.]

[Extracts.]

DEPARTMENT OF STATE,

Washington, July 12, 1862.

SIR: Your despatch of June 26 (No. 180) has been submitted to the Presi dent.

You inform us that the anxiety arising from the reduction of the supply of cotton in Great Britain increases, while it is also very clear that at the time when your letter was written the government and people of that country had attained a more temperate condition, and were indulging somewhat a more hopeful view of the result of the civil war in this country.

The events which have occurred at Richmond have produced so much perturbation here that it is hardly to be expected that they will not seriously disturb the public mind in Europe. I shall endeavor, by the President's direction, to give you the information which, used at your discretion, may enable you to deal with this new agitation.

Since my last despatch no new military event of any significance has occurred. We have carefully ascertained the character and the results of the recent battles before Richmond, and have considerǝd and adopted such measures as the new exigencies have seemed to us to require. What I have before written to you is in the main confirmed. The seven days' battles were accepted by our army upon a compulsory change of base. Our losses were large, but much less than the first reports represented. They amount to about 12,000 men. The losses of the insurgents were greater. Each battle was, in fact, a victory of our army, although the flank movement from the field towards the new base gave the whole series the character of a retreat. The result is that the new base is a safer one, and the new position an impregnable one. The federal army, with General McClellan, now thus safely lodged on the north bank of the James river, twenty-five miles below Richmond, numbers eighty thousand to ninety thousand, and a force which is not very much disproportioned to the insurrectionary army which occupies that city. The federal army, however, has the co-operation of a very large naval force. The federal army in front of this city, adding those which will probably be consolidated with it, is nearly equal in numbers. This last force is now under command of Major General Pope, who has achieved great successes in the western States, and is esteemed an officer of great ability. A general military command over all the land forces of the United States will be given to Major General Halleck, who will come from the western department to this capital.

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Great battles are said to demoralize armies; they certainly perplex the press, and the press for a time bewilders the people. These effects have been seen in the indecision and nervousness of our citizens since the affair at Richmond. But time restores equanimity and fixes popular determinations, based upon convictions of duty and patriotism. Our recruiting of the new levies has begun, and each day it is found easier and more successful. At the same time Congress indicates that it will not adjourn until it has armed the President with power to call out, at his discretion, any number of troops by draft, and to organize the militia of the seas by issuing letters of marque and reprisal. The devotion of the people to the Union increases in intensity, and the purpose to maintain it at whatever cost or sacrifice is now universally and resolutely manifested.

The disturbance of exchange does not seem to affect the prosperity of the country. We now have reduced cotton from its high place in exports; but the grain crops, especially in the north and in the west, are immense. These, together with our supplies of gold from California, are sufficient to

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