Mr. Seward to Mr. Perry.

No. 1.]

Sir: Your despatch of December 21 (No. 15) has been received. The President directs me to assure you that he reposes entire confidence in your loyalty, ability, and diligence in conducting the affairs of the mission at Madrid during the temporary absence of Mr. Schurz.

You will have learned already of the action of this government in the case of the Trent, and you will be able to calculate as wisely as we upon the signs of peace between us and Great Britain.

It hardly can be necessary to say that the counsels of prudence will be pursued here until the point of national safety and honor compel a change of disposition. The condition of affairs is, that the insurrection does not advance, while the cause of the Union steadily gains important advantages.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Horatio J. Perry, Esq., &c., &c., &c. Madrid.