Earl Russell to Mr. Adams. FOREIGN OFFICE, February 26, 1862. SIR: With reference to my letter of the 19th instant, on the subject of the steamer Oreto, which was believed from reports you had received to be fitting out at Liverpool with a view to acting hostilely against the people of the United States, I have the honor to transmit to you herewith a copy of a letter from the commissioners of customs to the lords commissioners of her Majesty's treasury, reporting the result of the investigations which they have caused to be instituted with regard to the vessel in question. I have the honor to be, with the highest consideration, sir, your most obedient servant, CHARLES FRANCIS ADAMS, &, Sr., &c. RUSSELL. Report of British Commissioners of Customs. CUSTOM-HOUSE, February 22, 1862. Your lordships having referred to us the annexed letter from Mr. Hammond, transmitting, by desire of Earl Russell, copy of a letter from Mr. Adams, enclosing an extract of a communication from the United States consul at Liverpool, in which he calls attention to a steam vessel called the Oreto, reported to be fitting out at Liverpool as a southern privateer, and requesting that immediate inquiries may be made respecting this vessel, we report: That on the receipt of your lordship's reference we forthwith instructed our collector at Liverpool to make inquiries in regard to the vessel Oreto, and it appears from his report that she has been built by Messrs. Miller & Sons for Messrs. Fawcett, Preston & Co., engineers, of Liverpool, and is intended for the use of Messrs. Thomas Brothers, of Palermo, one of that firm having frequently visited the vessel during the process of building. The Oreto is pierced for four guns, [6?] but she has yet taken nothing on board but coals and ballast. She is not at present fitted for the reception of guns, nor are the builders aware that she is to be supplied with guns whilst she remains in this country. The expense of her construction has been paid, and she has been handed over to Messrs. Fawcett & Preston. Messrs. Miller & Sons state their belief that her destination is Palermo, as they have been requested to recommend a master to take her to that port, and our collector at Liverpool states that he has every reason to believe that the vessel is for the Italian government. We beg further to add that special directions have been given to the officers at Liverpool to watch the movements of the vessel, and that we will not fail to report forthwith any circumstances which may occur worthy of your lordship's cognizance. THOS. F. FREEMANTLE. The LORDS COMMISSIONERS OF HER MAJESTY'S TREASURY. Mr. Seward to Mr. Adams. [Confidential.] No. 197.] DEPARTMENT OF STATE, Washington, February 28, 1862. SIR The successes of the Union army in the west having brought the whole of Missouri and a large portion of Tennessee under the authority of the United States, and having already opened a passage for us into Alabama, Mississippi, and Arkansas, it has been determined to-day to permit the restoration of trade upon our inland ways and waters under certain limitations and restrictions, which may continue until the pacification of the country shall take place. We are maturing the details of this system of inland trade carefully, and shall try its operation with a view to the adoption of measures of a similar nature, applicable to the country on the sea-coast, which would be some alleviation of the rigor of the blockade. You may confidentially bring these facts to the notice of the British government. We could doubtless go much further and faster in the direction last indicated if we could have any reason to expect that concessions on our part would be met by a withdrawal, on the part of maritime nations, of the belligerent privileges heretofore so unnecessarily conceded, as we conceive, to the insurgents. SIR: Only this morning have I received the despatches by the steamer America, numbered from 182 to 188, both inclusive; and a confidential despatch, marked as 187, in addition to the regular one bearing the same number. * * * * * I transmit herewith the copy of a note addressed by me to Lord Russell, in conformity with the directions contained in your despatch No. 172, of the 31st of January, touching the action of the authorities of Nassau. As yet I have received only the customary formal answer from his lordship an nouncing a reference for information. I have the honor to be, sir, your obedient servant, Hon. WILLIAM H. SEWARD, CHARLES FRANCIS ADAMS. Secretary of State, Washington, D. C. Mr. Adams to Earl Russell. LEGATION OF THE UNITED STATES, MY LORD: It is with much regret that I find myself under the necessity of troubling your lordship with another application for information respecting certain alleged acts of the colonial authorities of Nassau unfriendly to the United States. It has been reported to the Navy Department, from the commander of the United States steamer Flambeau, that, although a deposit of coal belonging to that government exists at the place named, its steamers have been interdicted the use of it. Liberal as is the disposition of the government of the United States in its intercourse with all foreign nations in American waters, the President declines to believe that her Majesty's government have sanctioned or will sanction these proceedings on the part of the authorities of Nassau. Should he prove to have been correct in this opinion, I am directed to solicit of your lordship such action in the proper quarter as may lead to the rectification of the error. 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, The Right Hon. EARL RUSSELL, &C., &C., &C. Mr. Seward to Mr. Adams. No. 199.] DEPARTMENT OF STATE, Washington, March 6, 1862. SIR: Your despatch of February 13, No. 114, has been received. I regret that it has been impossible to supply you with statistics, which our uncharitable friends in England so strenuously insist upon, to show how effective or how inefficient the blockade is. We, of course, have no record of the cases in which the blockade has been run. Such information must be in possession of those who performed the achievement, while we were ignorant of the transactions in which they were engaged. I have, however, sent you such a list as could be procured at Havana. It shows that generally the vessels which have violated the blockade were British. The British revenue officers, therefore, can furnish the information wanted by members of the British Parliament, or at least much of it. It would prove nothing to show how many vessels we have captured in the attempt, or the value of such vessels and their cargoes, for it is the failure to seize vessels, not success in seizing them, that constitutes the gist of the issue. I cannot but think that the true test of the commercial blockade lies in the results. The price of cotton in New York is four times greater than in New Orleans. That fact is certainly demonstrative. So is the fact that salt is ten times higher in New Orleans than in New York. So is the fact that gold is even more scarce in Charleston than cotton is in Liverpool. Moreover, the pleaders for our destruction in Parliament ought to be held to choose between contradictory pleas, and cease to complain of the ruin brought into England by the failure of supplies from the blockaded districts, or else they ought to admit the efficiency of the blockade. I trust, however, that these contradictory complaints about the blockade will have passed away before this despatch shall reach its destination. Affairs have just fallen into a new condition, suggestive of very different questions from those which were troubling you when the paper which I am answering was written. It can now be seen, by those who will consent to see it, that disunion originated in a local popular excitement or passion, and not in any radical and enduring interest adequate to sustain a revolution. It is now apparent that we are at the beginning of the end of the attempted revolution. That end may be indeed delayed by accidents or errors at home, as it may be by aid or sympathy on the part of foreign nations. But it can hardly be deemed uncertain. The strength of the Union is seen in a vast army in excellent condition, and a vigorous and well-appointed navy, while the national finances are perfectly sound and reliable. On the other side are seen a demoralized and decaying navy consisting of two worthless pirate steamers, in all carrying half a dozen guns. The credit of the insurgents is depreciated sixty per cent. below par, and daily sinking lower. Cities, districts, and States are coming back under the federal authority, while it has not really lost a square mile of territory which it held when the conflict began. The permanent interests and political sentiments of Union are lasting and reliable elements of strength in the federal cause. The fires of faction, which gave to disunion all its force, are already burning out. Of all foreign nations Great Britain has the deepest interest in a speedy termination of the conflict and in a complete restoration of our national commerce, as no other nation has so great an interest in the relations of permanent friendship with the United States. If Great Britain should revoke her decree conceding belligerent rights to the insurgents to-day, this civil strife, which is the cause of all the derangement of those relations, and the only cause of all apprehended dangers of that kind, would end to-morrow. The United States have continually insisted that the disturbers of their peace are mere insurgents, not lawful belligerents. This government neither can nor is it likely to have occasion to change this position, but her Majesty can, and it would seem that she must, sooner or later, desire to relinquish her position. It was a position taken in haste, and in anticipation of the probable success of the revolution. The failure of that revolution is sufficiently apparent. Why should not the position be relinquished, and the peace of our country thus be allowed to be restored? Do you think Earl Russell, astute and well-informed as he is, could name one single benefit that Great Britain derives from maintaining a position which, although unintentionally, is so unfriendly and so injurious to us, or that he could designate one evil that would probably result to the country of whose foreign interests he is the guardian from the resumption of her longestablished relations towards the United States? Is it not worth your pains to suggest to him the inquiry whether it would not be wiser and better to remove the necessity for our blockade than to keep the two nations, and even the whole world, in debate about the rightfulness or the expediency of attempting to break it, with all the consequences of so hostile a measure? I am, sir, your obedient servant, CHARLES FRANCIS ADAMS, Esq., &c., &c., &c. WILLIAM H. SEWARD. When, in November, we thought we had reason to apprehend new and very serious dangers in Europe, the subject was taken into consideration by the President at a full meeting of the cabinet. It was understood that the insurgents were represented abroad by a number of active, unscrupulous, and plausible men, who manifestly were acquiring influence in society, and in the press, and employing it with dangerous effect, and it was thought that such efforts could be profitably counteracted by the presence in London and Paris of some loyal, high-spirited, and intellectual men of social position and character. We considered that the presence of such persons there, unless they should act with more discretion than we could confidently expect, would annoy and possibly embarrass our ministers abroad. It was decided that hazard must be incurred in view of dangers which seemed so imminent. All our individual sensibilities must give way in time of public peril. The persons selected were thought to be among the most prudent and considerate in the country. When all our agents and friends abroad, consular as well as diplomatic, official and unofficial persons, united in warning us of a serious danger which they thought was to happen on the meeting of the French and British legislatures, respectively, I thought it might be well for Mr. Motley to be at London to confer and co-operate with you. I wrote to him that if he could it was desirable he should go there, but in everything to consult with you and take directions from yourself. I desire you to understand that these proceedings in no respect imply any want of satisfac tion with your conduct in your most important mission. The President and the cabinet are perfectly unanimous in approving of all your proceedings as the very best in every case that could be adopted. I may add that the public approbation is equally distinct and earnest. I speak very frankly when I say that I do not recollect the case of any representative of this country abroad who has won more universal approbation than you have. I have purposely made this an official paper, because we desire that the facts may stand, with the President's conclusions, upon the record. SIR: The despatch No. 186, of the 17th of February, transmitting a list of vessels that have been engaged in efforts to run the blockade, has come just in time to add to the materials collected from other sources in advance of the discussion which Mr. Gregory, the member for Galway, proposes to commence in the House of Commons to-night. I much regret there is no full official list from the Navy Department of all vessels turned off or cap |