Mr. Seward to Mr. Adams.

No. 258.]

Sir: I learn from the public journals, although no official notice has been received, that in the case of the Labuan the admiralty court in New York has decreed restitution upon the merits of the case. Information of this fact has been given to Lord Lyons.

The defeat of General Banks at Winchester yesterday, and his withdrawal across the Potomac, are just now the prominent incidents of the war. A careful consideration of the affair results in the satisfactory conclusion that the movement of the enemy was one of merely energetic strategy. We suffer by it, however, only a temporary and local inconvenience, not at all likely to work any serious or extensive injury to the national cause. Abundant provision has been made for repairing the losses sustained, and recovering the little ground that has been given up.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

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

[Same to William L. Dayton, Esq., &c, Paris.]