Mr. Seward to Lord Lyons.

My Lord: I have the honor to acknowledge the receipt of your communication of the 9th instant, representing that Rear-Admiral Theodoras Bailey and the prize commissioner at New York have disregarded the arrangement in respect to the British mails on board the captured steamer Peterhoff, and to inform you, in reply, that the matter has been brought to the notice of the Secretary of the Navy.

I have the honor to be, with high consideration, your lordship’s obedient servant

WILLIAM H. SEWARD.

Right Hon. Lord Lyons.