Mr. Seward to Mr. Smith.

Sir: I have to acknowledge the receipt of your letter of the 1st, with the accompanying copy of a communication addressed by you to L. Pierce, jr., esq., United States consul at Matamoras, and to inform you that instructions have been given to the said consul to obtain and forward to you without delay, in the form of affidavits, all the evidence which you regard as material in determining the question of damages in the case of the English steamer Labuan. He has also been instructed to incur whatever expenses may be necessary in the matter, and to send an account and vouchers therefor, and to draw upon this department for the amount.

I am, sir, very respectfully, your obedient servant,

WILLIAM H. SEWARD.

E. Delafield Smith, Esq., Attorney of the United States for the Southern District of New York.