Lord Lyons to Mr. Seward.

Sir: You are doubtless well acquainted with the particulars of the capture, by the United States ship Onward, of the British vessel Magicienne, on her voyage from Liverpool to Matamoras, and of her subsequent release, without being proceeded against in the prize court. She was, as you are aware, restored to the master, in consequence of a letter from the United States district attorney at Key West to the prize commissioner, declaring that, after examining the depositions taken in the case, and the invoices, bills of lading, and other papers, he could see nothing to base a demand for condemnation, or even for a certificate of probable cause of seizure. There can, therefore, be no question as to the capture of this vessel being wholly unjustifiable, and her Majesty’s government have accordingly instructed me to apply to the government of the United States for full compensation to the parties interested.

The destination of the vessel was that of her accustomed trade. Her cargo was not contraband; her papers were regular; she was not attempting to break any blockade. There was, therefore, no possible excuse for her detention.

The justice of the case evidently calls for speedy compensation, and her Majesty’s government do not anticipate any delay on the part of the United States government in making it. But her Majesty’s government desire to represent to the government of the United States, with reference to this case, that the habit of the United States cruisers of seizing vessels on the chance that something may possibly be discovered ex post facto which will prevent the captors from being condemned to pay damages, renders the practical fulfilment of the obligations of a neutral state to respect the rights of the belligerent a task of daily increasing difficulty.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant.

LYONS.

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