Mr. Chase to Mr. Seward.

Sir: I have the honor to acknowledge your letter of the 3d instant, covering despatch of S. C. Hawley, consul at Nassau, as to the power vested in the Secretary of the Treasury, under act of May 25, 1862, (Laws, p. 404,) to refuse clearances to vessels sailing to neutral ports.

The power is limited to vessels laden with cargoes, but does not include vessels in ballast; and bonds cannot be required of vessels in ballast, though their ultimate destination as blockade runners is all but certain.

The question presented by the consul is, whether the act of despatching an American vessel for such a purpose is not an offence against the laws of the United States, and for which arrests may be made and parties concerned punished.

That question is not free of difficulties, and should perhaps be referred to the appropriate law officer, either by yourself or the Secretary of the Navy, as charged with all matters connected with the blockade.

With great respect,

S. P. CHASE, Secretary of the Treasury.

Hon. W. H. Seward, Secretary of State.