Mr. Adams to Mr. Seward.

No. 296.]

Sir: I have to acknowledge the reception of despatches from the department, numbered from 433 to 436, inclusive, and a note dated the 26th of December, relative to Major John Foley.

With respect to the instructions to bring the question of Scheldt dues to the notice of her Majesty’s government, as mentioned in your No. 436, of 30th of December, I shall avail myself of the first opportunity to mention the subject to Lord Russell, without asking a special conference for that alone.

There is little or no change to notice in the state of things here. The returns of the revenue for the year are regarded as highly encouraging in respect to the general condition of the country, and there are some indications that even in the distressed districts the number of unemployed persons is steadily diminishing.

The intelligence of the issue of the President’s proclamation has had a decided effect in concentrating the opinions of the friendly party here, whilst it has, to a corresponding extent, provoked the anger of the abettors of the rebellion. The lines are becoming more and more clearly drawn. As Parliament is to assemble for the despatch of business in less than three weeks from this time, this question becomes of considerable importance. There is a general impression abroad that the ministry may not be averse to accept an issue which will involve a dissolution and an appeal to the country. But the better opinion seems to lean the other way. Still it is very certain that the fact of the possibility of the happening of such an event at any moment is making the members of the House of Commons more and more sensitive to the currents of popular opinion. I notice that the tone of most of those who now address their constituents is becoming rather more than less cautious as it regards America. In this emergency some military successes at home might have a very decided effect in turning the scale in our favor. At this moment we are awaiting the issue of the conflicts pending at Murfreesboro’ and with quite as much of fear as of hope. It seems quite unaccountable that with such a great disparity of forces between the two sides as unquestionably exists, this advantage seldom seems to be brought to bear decisively for us.

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

CHARLES FRANCIS ADAMS.

Hon. William H. Seward, Secretary of State, Washington, D. C.