[Extracts.]

Mr. Seward to Mr. Adams.

No. 435.]

Sir: Your very suggestive despatch of December 11 (No. 271) has been received.

It does, indeed, seem paradoxical that the public sentiment of this country in regard to Great Britain should appear to remain as severe now as it was heretofore, when no symptoms of melioration of the reciprocal sentiment of that country towards our own were observable. The solution, however, will be found, as I think, in the distance that lies between them. The symptoms of that kind, which you describe, have not escaped the attention of this government, as, I think, my recent despatches must have shown you. But they have not yet forcibly arrested the notice of the press, while the public attention is still entirely engrossed with the shipment of supplies and arms, and the outfit of piratical vessels in British ports, and with the flagrant demonstrations of the “290,” alias the Alabama, on our merchant vessels, and now the reputed escape of the Oreto from her imprisonment. Still the indication of a reciprocal change of sentiment here in regard to Great Britain are as manifest to this government as those on the part of the British government are apparent to yourself. I hardly need say that every care that can be properly given by this department to favor a return to the most friendly feelings between the two countries will be exercised.

* * * * * * * *

The proclamation of freedom to the slaves of the insurgent States will be promptly issued on the first day of January next; and it seems probable that a state of things will arise in the Gulf States that will be calculated to undermine the hopes that have been built there upon foreign intervention. Finally, we are inaugurating a system of administration in New Orleans, under Major General Banks, which we expect will relieve the condition there of much of the uneasiness which it is supposed affected the disposition of foreign powers.

The military situation remains unchanged since my last despatch. Congress has taken its recess for the holidays. The financial policy will chiefly engage its attention when it reassembles.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

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