[Extract]
Mr. Adams to Mr. Seward.
Sir: I have to acknowledge the reception of despatches from the department, numbered from 503 to 506, both inclusive; a printed circular, No. 32, of the 8th February, accompanying the homestead law; a printed circular, dated 9th March, with the joint resolutions of Congress in regard to proposals of mediation; two copies of the 2d edition of the Consular Manual; the National Almanac for 1863, and the ratification of the additional article to the treaty for the suppression of the African slave trade. Immediately after these papers came to hand I made the customary application to the secretary of the foreign office for a special interview. Lord Russell has acceded to the request, and fixed this day at three o’clock to see me. A report of the conference will be sent you in a later despatch.
Last week there was transmitted from this legation a printed copy of the proposals to open a loan here for three millions sterling on the basis of cotton supposed to be in the hands of the so-called authorities at Richmond. By virtue of concerted operations between parties specially enlisted in Liverpool, Manchester, and London, and the various newspapers, a great appearance of success was at first imparted to it, and stories were extensively circulated of offers made to an amount five times greater than the sum wanted. As a consequence, it was formally announced that the premium for the bonds before issued had run up at once as high as five per centum; hence the affair was pronounced a great success. This was on Saturday last, but since that time the premium is reported as steadily falling the three days of this week, until yesterday, when it went down to one-half per cent., and then rallied again to one and a quarter.
On the whole, I am led to the conclusion that the loan has been mainly taken, in the first place, by parties who are creditors to the rebels for supplies of all kinds heretofore rendered, and who expect to be able to get out by prompt sales; and secondly, by another class who have been tempted by the visionary great profits to be obtained on the ultimate acquisition of the cotton security at what appears a low price.
The substantial advantage to the rebels is the ability thus obtained to continue their extensive operations here in outfits of vessels and munitions of war. But the contract with the undertakers is understood to have been made at such an oppressive rate as not to net the borrowers quite half of the nominal amount of the loan, whilst the terms of payment are so slow and gradual as to place but small resources in their hands at any one time. The probability is, that the sums to be received have already been pretty much absorbed by the engagements made or making on this side of the water.
The effect of this measure has been quite considerable. On the one hand, it appears to release the government of the United States from all further obligation to facilitate the export of cotton to foreign countries. Practically the article becomes contraband of war quite as much as those of cannon, gunpowder, and rifles, which it now exclusively represents. On the other, the conviction of the objects for which this money is mainly to be used has given an additional impetus to the efforts of persons friendly to the maintenance of peaceful relations with us. They well understand the policy adopted by the rebel emissaries to blow up strife by the multiplication of these piratical cruisers as causes of irritation, and in the end hostilities, and hence they become more earnest in their demands upon this government for increased energy in checking it. As an [Page 180] evidence of this I transmit copies of a petition of the Union and Emancipation Society of Manchester to Parliament, which has been presented by Mr. Bright. There is to be a great assembly of the Trades Unions of London this evening at St. James’s Hall, where Mr. Bright has consented to preside, at which it is expected that similar sentiments will be strongly expressed. I have received a very friendly invitation to be present, in order to be myself a witness of the tone of the working classes on this subject, but I respectfully declined on the ground of my wish to avoid even the suspicion of a desire to bias the free and independent expression of the public opinion here.
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I have the honor to be, sir, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.