Mr. Seward to Mr. Mercier.

Sir: This department has received a further report from the military authorities at New Orleans relative to the complaint of Messrs. Rochereau & Co. presented by you. From this report it appears that William B. Hepp, a citizen of the United States, is a special partner of that house, and prior to first of October last took the oath of allegiance. The fund to which the firm were subscribers was notoriously designed to defend the city of New Orleans against the United States, and the subscription was voluntary on their part.

It having become indispensable, in the opinion of the commanding general at that city, to levy a tax to save the poor there from starvation, it was deemed equitable to apportion the share of Messrs. Rochereau & Co. with reference to their subscription adverted to, especially as the persons for whom the relief was designed were, for the most part, the wives, children, and other dependents of insurgents in arms against the United States.

The first instalment exacted amounted to five thousand dollars. No other has since been paid.

The right of General Butler to make the exaction under the circumstances is believed to be clear in itself, and in accordance with precedents in other countries, especially in Europe. It is not to be understood, however, that the claim [Page 829] of Messrs. Rochereau & Company to restitution of that part of the sum exacted, in which Mr. Hepp, as a member of the firm, is not interested, is definitively denied. That question must be reserved for further consideration.

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

WILLIAM H. SEWARD.

Mr. Henry Mercier, &c., &c., &c.