[Extract.]

Mr. Pike to Mr. Seward,.

No. 57.]

Sir: * * * * * * * * * * *

Europe waits with commendable patience for the next movement of our government upon the insurgent States. It is expected that its next military demonstration in Virginia will be successful. The late check at Richmond is attributed to want of skill rather than want of power.

This industrious and self-sustaining people seem to be but little affected by the convulsions of oui continent. Their principal branches of industry prosper as usual, and their public revenues are undiminished. The new administration has thus far gone on with vigor and success, but it is only now beginning to enter upon the difficult question of colonial affairs, which is the work upon which its predecessor foundered. The country has derived a very large revenue from the island of Java for many years, but still the question arises whether it has been done in the best way or with a proper regard to the rights and interests of all concerned.

I have the honor to be, with great respect, your most obedient servant,

JAMES S. PIKE.

Hon. William H. Seward, Secretary of State, Washington.