[Extracts.]

Mr. Adams to Mr. Seward.

No. 403.]

Sir: In the House of Lords, last evening, Lord Russell is reported as announcing that the Peterhoff has been sent to the prize court. The effect of this news here will be to prolong the delay in reorganizing the scheme of smuggling by way of the Rio Grande. Seven steamers are now awaiting orders. But I feel it my duty to call your attention to the necessity of taking advantage of it, so far as, if possible, to provide in season against the assumption of operations in that quarter. No equally subtle and dangerous expedient to annul the blockade has yet been devised. The plan has been entered into very deeply by wealthy and influential merchants and capitalists in this city, and it has an intimate connexion with the base of the confederate loan.

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[Page 276]

I know not whether anything short of the possession of the eastern bank of the river will avail to defeat these machinations.

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

CHARLES FRANCIS ADAMS.

Hon. William H. Seward, Secretary of State, &c.