[Extract.]

Mr. Seward to Mr. Adams.

No. 316.]

Sir: * * * * * * * *

You will receive herewith a correspondence which has taken place between Major General Butler and Mr. Johnson, which is the fruit of the suggestions informally made to that officer and General Shepley, by the President’s direction, through the commission which was sent to New Orleans on the opening of trade there. It may be well to communicate this correspondence to Earl Russell, and say that the policy of General Butler is approved.

I learn from Mr. Stuart that Earl Russell complained to him that the mission of Mr. —— seemed to his lordship an evasion of the suggestion he had made to me in regard to a declaration that cotton bought by neutrals should not be confiscated. This is unjust on the part of Earl Russell. Mr. ——’s mission was directed, and he was on his way before the earl’s suggestion was received. It may be well to set this matter right also, but you will not make the explanation in any spirit of complaint.

I send you a note from General Halleck, showing how cotton is coming through Columbus. On the whole, I believe that the cotton trade will now revive quite as rapidly as has been at any time anticipated.

It will, I think, be well to communicate the matters contained in this [Page 169] despatch verbally and informally, but you may give copies of General Butler’s and General Halleck’s correspondence.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Charles Francis Adams, Esq., &c., &c., &c.