[Extracts.]

Mr. Adams to Mr. Seward.

No. 362.]

Sir: I have the honor to transmit a copy of several notes which have passed between myself and Lord Russell respecting certain vessels in preparation at Liverpool to carry on hostilities against the United States. The evidence already collected to sustain these allegations, and that which we are in a way to obtain, will be of a kind, I trust, to enable the government to exert its power in some form of repression. I have labored to impress upon his lordship the value of some demonstration of the kind as a protection to both countries against the unhallowed intrigues of desperate adventurers, British and American. I really think his lordship and a portion of the cabinet ministers sincerely so disposed. Others are inclined an opposite way, and still others are indifferent. So that it is impossible to predict what may be done.

* * * * * * *

Lord Palmerston is receiving an ovation in Scotland, whither he has gone during the Easter holidays. His speeches are well received.

* * * * * * *

The loan in favor of the rebels, which seemed to begin so auspiciously, has been gradually losing its attractive appearance until yesterday, when it fell below par. This is not a favorable augury for settlement day, which is approaching. I do not think it receives much countenance in responsible quarters. Still it may help creditors out of their difficulties, and encourage them to complete contracts.

Some effort is making to stimulate the public feeling about the capture of the Peterhoff, to which end the name of Admiral Wilkes is loudly sounded to revive odium. The Times of yesterday had a leader on the subject, which may possibly have been inspired from official sources, but is more likely to have come from Lloyds, where there is heavy insurance on the ship.

The secret letter of Messrs. Bennett & Wake, of the 24th November last, which originated this novel form of smuggling through Brownsville, has been so long before you that the matter scarcely needs further comment. The disappointment of the contrivers here is extreme.

I have the honor to be, sir, your obedient servant,

CHARLES FRANCIS ADAMS.

Hon. William H. Seward, Secretary of State.

[Enclosures]

1. Mr. Adams to Lord Russell, about the Phantom, &c., March 26, 1863.

2. Mr. Dudley to Mr. Adams, about same, March 24, 1863.

3. Lord Russell to Mr. Adams, March 27, 1863.

4.. Lord Russell to Mr. Adams, referring to Liverpool, March 28, 1863.

5. Mr. Adams to Lord Russell, with case of the Alexandra and notes to C. R. Yonge, March 30, 1863.

6. Mr. Adams to Mr. Dudley, March 29, 1863.

7. Lord Russell to Mr. Adams, March 31, 1863.

[Page 217]

Mr. Adams to Lord Russell:.

My Lord: I have the honor to transmit for your information the copy of an extract of a letter received by me from Mr. Dudley, the consul at Liverpool, giving some particulars of hostile outfits making at that place. It is proper to add, in correction of a statement therein contained, that Mr. Dudley has to-day informed me that the Southerner has not yet reached Liverpool. There is little doubt, however, of its ultimate destination.

I pray your lordship to accept the assurances of the highest consideration with which I have the honor to be, my lord, your most obedient servant,

CHARLES FRANCIS ADAMS.

Right Hon. Earl Russell, &c., &c., &c.

Mr. Dudley to Mr. Adams.

Sir: On Saturday last Wm. C. Miller & Son launched from their yard, in Liverpool, an iron-screw steamer, called the Phantom, built for Fraser, Trenholm & Co. This vessel is large and to have great speed. The contract is not less than seventeen nautical miles per hour. Her engines are being made by Fawcett, Preston & Co. She has three port-holes on each side. Captain Bullock, Captain Tessier, Mr. Pinbeam, the leading members of the firm of Fraser, Trenholm & Co., Mr. Thomas, of the firm of Fawcett, Preston & Co., and others, were present at the launch. She is intended for the south, either as a privateer or blockade runner; there is no doubt about this, I think. She will turn up a privateer. Her draught of water will be light, and with her powerful engines her speed will be very fast. When afloat she will be a most dangerous craft to our commerce, if armed with two or three guns.

I have on several occasions referred to the steamer built at Stockton for Fraser, Trenholm & Co., called the Southerner. This vessel came here yesterday either to coal or else to fit out as a privateer. There is no doubt about this vessel. I suppose it will be impossible for me to obtain legal evidence against these two vessels, and nothing short of this will satisfy this government.

I am, sir, your obedient servant,

THOMAS H. DUDLEY.

Hon. Charles Francis Adams, United States Minister.

Lord Russell to Mr. Adams.

Sir: I have the honor to acknowledge the receipt of your letter of yesterday, calling attention to two vessels, the Phantom and the Southerner, supposed to be destined for the service of the so-called Confederate States, and I have to acquaint you that the proper departments of her Majesty’s government will be requested to make immediate inquiries on the subject.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

RUSSELL.

C. F. Adams, Esq., &c., &c., &c.

[Page 218]

Lord Russell to Mr. Adams.

Sir: With reference to my letter of yesterday’s date, I have the honor to inform you that I have received from the home office a copy of a letter which has been addressed to the mayor of Liverpool, respecting the two vessels Phantom and Southern, stated by the United States consul at that port to be fitting out for the service of the so-styled Confederate States.

In that letter the mayor of Liverpool is instructed to make immediate inquiries as to these vessels, or whichever of them is now at Liverpool, and to ascertain whether there is any reason to believe that they or either of them are or is being equipped, furnished, fitted out, or armed with the intent to commit hostilities against the United States government; and if so, to report whether any evidence on oath can be procured in order to proceedings being taken under the foreign enlistment act.

I have accordingly the honor to suggest, that as the United States consul at Liverpool has stated in his letter to you that there is no doubt with respect to the vessel named the Southerner, you should instruct that officer to furnish the mayor of Liverpool with the information on which his belief is founded.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

RUSSELL,

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

Mr. Adams to Lord Russell.

My Lord: I have the honor to acknowledge the reception of your lordship’s note of the 28th instant, in reply to my representation of the cases of the Phantom and the Southerner, believed to be fitting out from this kingdom for the purpose of carrying on war against the United States. In accordance with your lordship’s suggestion I have written to Mr. Dudley, the consul of the United States at Liverpool, directions to obtain all the evidence within his power to fortify his allegation.

I now have the honor to transmit to your lordship a copy of a letter from Mr. Dudley, together with a number of depositions taken before the collector of Liverpool, going to show a similar equipment of another steamer, called the Alexandra, in the same port. I shall remit no exertion to place in the hands of her Majesty’s government all the information that can be obtained touching these hostile designs, being quite confident that I can in no way contribute so effectually to the defeat of the machinations of evil-minded persons, who hope, through a dexterous use of such hostile armaments, to involve the people of the two countries in hostilities out of which neither can expect to reap the smallest advantage.

I have the honor likewise to submit to your lordship’s consideration another note from Mr. Dudley, of the 28th instant, transmitting copies of certain papers which appear to prove quite conclusively the relation of certain persons in Liverpool, whose names appear therein, to the insurgent authorities in the United States. It thus appears that the same individuals who were concerned in the outfit and departure of the gunboat No. 290 are those now mentioned as directing the outfit of the Alexandra. I would most especially solicit your lordship’s [Page 219] attention to the letter of instructions signed by James D. Bullock, and dated 28th of July, 1862. This was the day before the departure of No. 290 from Liverpool. The directions to enlist her Majesty’s subjects, together with the means to be resorted to in order to persuade them to carry on war against the people of a friendly nation, are most particularly deserving of notice. As connecting the links of evidence touching the purposes of the parties at Liverpool, the allegation of the despatch of the Agrippina from Liverpool with the necessary objects to complete the warlike equipment of No. 290 seems to be of essential value.

I pray your lordship to accept the assurances of the highest consideration with which I have the honor to be, my lord, your most obedient,

CHARLES FRANCIS ADAMS.

[Enclosures.]

1. Mr. Dudley to Mr. Adams, about the Alexandra, March 28, 1863.

2. Mr. Dudley to S. Price Edwards, esq., March 28, 1863.

3. Deposition of Mr. Dudley against the Alexandra.

4. Deposition of John De Castra against the Alexandra.

5. Deposition of O. R. Mumford against the Alexandra.

6. Deposition of Neil Black against the Alexandra.

7. Deposition of Thomas Hutson against the Alexandra.

8. Deposition of Matthew Maguire against the Alexandra.

9. Mr. Dudley to Mr. Adams, with rebel documents, March 28, 1863.

10. Captain Bullock to Mr. Mallory, January 30, 1862.

11. Receipt of money from C. R. Yonge, Liverpool, July 9, 1862.

12. Captain Bullock to C. R. Yonge, instructing him how to act on No. 290 as assistant paymaster.

13. Same to same, appointing him in rebel navy, Liverpool, July 30, 1862. Endorsed by Captain Semmes.

14. Captain Semmes to C. R. Yonge, notifying him of Lis dismissal from the No. 290, dated Port Royal, January 25, 1863.

Mr. Adams to Mr. Dudley.

Sir: I received a packet from you late last night. I shall send in the papers to the foreign office as soon as they are copied to-morrow.

I presume the Alexandra and the Phantom to be two different steamers, and shall proceed accordingly unless you send me word by telegraph to-morrow.

I yesterday received a note from Lord Russell in reply to mine, which was based upon your note of the 24th instant, respecting the Phantom and Southerner. This is what he writes on that subject:

“The mayor of Liverpool is instructed to make immediate inquiries as to these vessels, or whichever of them is now at Liverpool, and to ascertain whether there is any reason to believe that they or either of them are or is being equipped, furnished, fitted out, or armed with the intent to commit hostilities against the United States government; and if so, to report whether any evidence on oath can be procured in order to proceedings being taken under the foreign enlistment act.”

“I have accordingly the honor to suggest, that as the United States consul at [Page 220] Liverpool has stated in his letter to you that there is no doubt with respect to the vessel named the Southerner, you should instruct that officer to furnish the mayor of Liverpool with the information on which his belief is founded,”

If you can do anything, well and good.

I have the honor to be, sir, your obedient servant,

CHARLES FRANCIS ADAMS.

Lord Russell to Mr. Adams.

Sir: I have the honor to acknowledge the receipt of your letter, with enclosures, dated March 30, 1863, and received at the foreign office this morning.

I shall take care to transmit immediately your letter, and the depositions and letter of instructions, to the proper departments of the government.

I beg you to accept the assurances of the highest consideration with which I have the honor to be, sir, your faithful servant,

RUSSELL.

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