[Confidential.]

Mr. Seward to Mr. Adams.

No. 197.]

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.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

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