Mr. Seward to Mr. Pike.

No. 46.]

Sir: Your despatch of February 19 (No. 38) has been received

The system provided by Congress for managing the national revenues has gone before the country, and it is found to be satisfactory. The revenue bills, which constitute the foundation for that system, are now maturing, and there [Page 598] is no doubt that they will be perfected with equal satisfaction. The country, under the operation of the financial system thus to be completed, is likely to become quite independent of foreign credit, while its industry will be invigorated to an extent unknown in our former history.

To-day the insurgents are relinquishing the siege of Washington; and thus the first year of the insurrection ends in its discomfiture, which renders a reorganization necessary at the very moment when the excited passions in which the unhappy movement originated are subsiding, and the masses are prepared for a return to sober councils and loyal purposes. The financial condition of the insurrection is hopeless. Even before their retreat from Manassas gold commanded a premium of fifty per cent. in Richmond! What will be its value now?

How long can the European powers reconcile their people to the evils they suffer from this war, and induce them to believe that their sufferings result from fault on our side, instead of a useless concession of belligerent rights to the insurgents on their own part?

I am, sir, your obedient servant,


James S. Pike, Esq., &c., &c., &c.