Mr. Seward to Lord Lyons.

My Lord: In reply to the letter of this department, which was accompanied by a copy of your communication of the 17th instant, inquiring whether the fact is, as represented, that the British steamship Granite City, of London, has, while waiting the action of the prize court, been taken for the service of the United States government, the Secretary of the Navy states that the commandant of the navy yard at New York has general instructions to receive vessels that are suitable for the naval service when turned over to him by the prize court; that the Navy Department has been advised that the Granite City has been so turned over, and has been received accordingly; and that the order from the court was issued several days since.

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

WILLIAM H. SEWARD.

Right Hon. Lord Lyons, &c., &c., &c.