that it was most painful in some of the large manufacturing districts to see their immense establishments "not smoking," or, in other words, “not at work," and the population unemployed; that the distress was great, and the demand for cotton consequently most urgent.

I am, sir, your most obedient servant,

SIR: Your despatch of March 31 (No. 131) has been received. I have already exhausted in other papers the principal topics it presents. Mr. Mercier proposed in a very proper manner that he would visit Richmond if we should not object. Of course the President approved, being satisfied that he would not in any way compromit the relations existing between the French government and our own. It is impossible not to see now that the insurrection is shrinking and shrivelling into very narrow dimensions. I hope that Mr. Mercier may come back prepared with some plan to alleviate the inconveniences of his countrymen in the south, who are not acting against this government, and, in that way, against the peace and harmony of the two countries.

The real difficulty is, that the southern ports are, and even the whole southern country is, now actually in a state of siege, and communication in anything like a normal manner is impossible.

You will notice that General McDowell has entered Fredericksburg, and General Banks is marching successfully quite through the valley of Virginia. We have reason to expect Savannah to come into our possession within the next ten days, and Fort Macon to fall about as soon. The insurrectionary leaders have made a conscription of all between 18 and 35. They issue new paper which sells for gold at the rate of one hundred dollars for twenty. Mr. Thouvenel's assurances to you on the subject of Mexico are eminently satisfactory to the President.

It is among the most gratifying indications of our speedy success in restoring the peace of the country that all the foreign ministers here (so far as I know) are now satisfied of the certainty of the event, and more than one of them are asking leaves of absence to visit Europe, a privilege they would not ask except under such a conviction. Mr. Hülsemann thinks he can go home; Mr. Schleiden has gone.

I am, sir, your obedient servant,

SIR: You will fully appreciate the importance of the capture of New Or leans, which was effected by our naval expedition, exclusively, on the 24th instant. The news reached us through insurgent organs last evening. As

yet we have not received details, nor can we fully apprehend, at so early a moment, the changes in the plans of the insurgents which this great event must produce. It is hardly to be doubted that it will enable us, before another despatch day shall arrive, to restore the mails to that great commercial city under such restraints, not oppressive to innocent commercial intercourse, as the military exigencies will permit.

We were indeed just maturing a plan for that purpose when intelligence of the great victory arrived.

We hear that Captain Bullock, of Georgia, writes from London that he is sending out five steamers which he has purchased, fitted, armed, and supplied with materials of war, in England, to prosecute a naval war against us. This can be regarded as nothing less than a piratical invasion of this country from Europe, under the toleration of European powers. We do not doubt our ability to meet and overcome it. But it seems to us worthy the consideration of maritime states, whether our success in maintaining the integrity of our country shall be necessarily accompanied with the conviction, fixed forever in the public mind, that Europe lent its aid to the abortive revolution.

The President knows that France has wished us well. Would it not be well for her to signalize her aversion from the designs of European conspirators?

SIR: The President, as you have been already informed, is directing that measures be taken to mitigate the rigor of our blockade, with a view to the relief of France, whom we would not willingly see suffer unnecessarily by reason of the calamities which have befallen our own country. I have so often said that the concession of belligerent rights to the insurgents has aggravated and prolonged these calamities that I need not now repeat that remark. I may, however, observe with entire propriety, I think, that the United States have a right to expect at least actual neutrality from the foreign governments which have proclaimed it. Certainly France, while looking to us to mitigate our war in the interest of herself and other friendly nations like herself, could not, without protest, see the same war prosecuted against us by subscription among the merchants of England. Entertaining this opinion, I send you a copy of a recent letter which has been received from our consul at Liverpool, and of a letter founded thereupon which I have addressed to Mr. Adams.

The pain inflicted by transactions like this is mitigated by the concession which other nations imply in their treatment of us, namely: that we are strong enough to overcome our domestic enemies with all the aid they can unlawfully obtain abroad, and that we are believed capable of being gen erous to any extent that foreign interest, passion, or prejudice shall seek to profit by our national misfortunes.

But this consideration does not tend to the consummation which is neces sary for ourselves and for the world. We want peace with independence, and it is equally the interest of France and of Great Britain that we be as

soon as possible allowed to enjoy them. Let us have on all sides true neutrality, and this hateful and injurious domestic strife will, within a very few months, be remembered only as a lesson full of instruction to all nations.

SIR: As you will be more particularly informed by papers sent herewith, New Orleans is opened to the mails. A collector has also proceeded there to take measures for opening that port. Other ports will be opened also. The Treasury, War, and Navy Departments are completing the details of preparation. The fall of New Orleans, Fort Macon, and Yorktown in rapid succession have produced a general expectation of peace. No one on either side of the contest dreams of peace otherwise than with the complete restoration of the Union. Indeed, the whole country feels that this consummation has actually begun. How strangely in contrast with this conviction are the coldness and indifference manifested by maritime powers, and the crowding of our coasts with contraband European vessels freighted with arms and munitions of war vainly consigned to the insurgents! France, Belgium, and Great Britain, while suffering the sorest privations, are, nevertheless, constantly sending hither on desperate ventures the means to protract the calamitous war they deprecate. We shall have peace and Union in a very few months, let France and Great Britain do as they may. We should have them in one month if either the Emperor or the Queen should speak the word and say, If the life of this unnatural insurrection hangs on an expectation of our favor, let it die. To bring the Emperor to this conviction is your present urgent duty. If successful in performing it, you will render a benefit to France worth more than any conquest, while you will direct a stream of healing oil upon the wounds of our own afflicted land. The President prays and trusts that you may succeed.

I am, sir, your obedient servant,

WILLIAM L. DAYTON, Esq., &c., &c., &c.

WILLIAM H. SEWARD.

Mr. Seward to the diplomatic and consular agents of the United States.

CIRCULAR.

DEPARTMENT OF STATE,

Washington, May 2, 1862.

SIR: I have the honor to state, for your information, that the mails are now allowed to pass to and from New Orleans and other places which, having heretofore been seized by insurgent forces, have since been recovered and are now reoccupied by the land and naval forces of the United States.

It is proper, however, to add, that a military surveillance is maintained over such mails so far as the government finds it necessary for the public safety.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Mr. Seward to Mr. Dayton.

No. 151.]

DEPARTMENT OF STATE,

Washington, May 7, 1862.

SIR: Your despatch of the 22d of April (No. 141) has been received. I am very glad to know that you communicated what I have before written you about the purpose of this government to open southern ports as early as should be possible.

Although New Orleans was captured on the 24th of April, and has since been fully possessed and occupied, we have not yet received official information of the fact, nor has the treasury been able to perfect there the arrangements necessary for the restoration of trade. These arrangements are nowbeing completed, and I expect that the same steamer which will carry out this despatch will also carry to Europe the proclamation for the restoration of commerce. That proclamation, I think, may be regarded by the maritime powers as an announcement that the republic has passed the danger of disunion, and is ready once more to renew its course of beneficent enterprise. The Emperor of the French can readily understand how much difficulty we have found in opening our ports to the maritime powers which have so long and so persistently, and so unnecessarily, conceded belligerent privileges to a faction which was waging war for the desolation of our country. It will be a study for the historian, why those powers, on the first sound of the bugle of faction, so absolutely abandoned all their former faith in the government and people of the United States. We have deeply desired that France, our earliest friend and the only ally we ever had, should rise above the other nations in appreciating the virtue and the capacity of the American people. We have thought it would be even useful to France herself to assume such an attitude. We have been thus far disappointed. But we do not, therefore, mean to be unjust. We acknowledge that France has faithfully practiced the neutrality she proclaimed, and that in the whole progress of the domestic strife she has not only spoken the language, but acted in the character, of a well-wisher and a friend.

The year of the American insurrection will be known in the history of mankind as one of disaster and fearful apprehension to all nations. It has been our study so to conduct public affairs with foreign nations as to cast off from the government itself all accountability for the unnecessary aggra vations of what might and ought to have been only a brief and local political disturbance, resulting from a sudden gust of popular passion.

SIR: Your despatch of April 22 (No. 142) has been received. Mr. Thouvenel meets all the just expectations of the President in regard to the Mexican question, when he says that we may take the speech of Mr. Billault as an embodiment of the views and purposes of the French govern ment. You will express to Mr. Thouvenel a just appreciation of the directness and frankness of his explanations, and at the same time renew the

assurances of the desire of the United States that peaceful relations may soon be restored between France and Mexico upon a basis just to both parties and favorable to the independence and sovereignty of the people of Mexico, which is equally the interest of France and all other enlightened nations. I am, sir, your obedient servant,

WILLIAM L. DAYTON, Esq., &c., &C., &C.

WILLIAM H. SEWARD.

No. 154.]

Mr. Seward to Mr. Dayton.

DEPARTMENT OF STATE,

Washington, May 10, 1862.

SIR: Your despatch of the 17th of April (No. 137) has only at this hour come to my hands.

It is hardly necessary now to explain why I was content to dwell so briefly upon the Emperor's desire for a relaxation of the blockade in my despatch No. 133. New Orleans was at that very moment beset, and the reduction of that important port was expected without delay. When it should have taken place, the question of modifying the blockade would become not only an immediate question, but one easy of solution. The event anticipated has occurred, and the consequence has followed. The present mail carries to Europe the proclamation of the President which opens the door to domestic. and foreign trade, under necessary reservations. The sincerity of the President in all that I have written in this respect is not to be questioned. If the trials of civil war, amid the fears of foreign intervention, have obliged this government to practice prudence, the greatness of the cause has, at the same time, awakened profound conscientiousness and devotion to truth.

How great will be the fruits of the opening of our ports for the export of cotton, and how speedy the fruition of them, will now depend largely on the maritime powers. There is not, indeed, one armed cruiser of the insurgents afloat; not one port on our coast in which a pirate can find shelter, or from which it could escape. Nevertheless, the defeated faction can destroy the materials of trade, and can prevent culture and production. They can do these things, however, only upon the pretence that they thus hope to constrain foreign nations to assume their cause. Meantime the armies of the United States constantly become more firm and consolidated; and a navy is coming into activity which will soon be equal to every possible conflict. The resources of the insurgent faction are failing and the forces exhausted, and the passion which has been their only moral element is subsiding. Shall we be now allowed to have peace, or must we still persevere in the organization and conduct of war? Distress, attributed to this war, everywhere reveals itself in Europe. The British statesman seeks to soothe it by apologies at Manchester; the Belgian authorities direct musical concerts to raise funds to relieve the destitution at Liege; and the French manufacturer of silk and cotton fabrics is already brought to the practice of frugality in feeding his looms. If the war in America has produced these inconveniences, it is only peace in America that can end them. Europe set out at the beginning of this strife with the idea that America would consent to procure peace through a dissolution of the Union. Has not America dared and done enough already to satisfy Europe that peace, with all its blessings, will be accepted on no. other terms than the unity of the American republic? Let the world accept this truth, and then the plough, the shuttle, and the transport will come again into activity. Less than a year will witness the dissolution of all the