Mr. Seward to Lord Lyons.

My Lord: I have the honor to acknowledge the receipt of your note of the 15th instant, transmitting a copy of a despatch and of its enclosures, received by you from the governor general of Canada, relative to the detention of live stock by the United States customs authorities at Niagara suspension bridge.

In reply, I have the honor to enclose herewith the copy of a letter of the 19th instant, addressed to this department by the Secretary of the Treasury, to whom the matter was referred, and to be, with high consideration, your lordship’s obedient servant.

WILLIAM H. SEWARD.

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

Mr. Chase to Mr. Seward.

Sir: I have to acknowledge the receipt of your letter of January 18, enclosing and calling attention to a communication addressed you by Lord Lyons on the 15th instant, with enclosures from the governor general of Canada, containing reports from officers of that province, relative to a recent seizure of live stock by the customs authorities at suspension bridge.

I understand it to be the object of these letters not merely to present the particular case complained of, for such redress as may be proper and practicable, but to make inquiry as to the scope and purpose of the orders forbidding the exportation of live stock. To this question there can, of course, be but one answer. The circular of the Treasury Department declaratory of the prohibition, which bears date May 19, 1863, was issued in pursuance of the construction placed by the War Department on the existing executive order, forbidding the exportation of munitions of war. It is general in its character, admits of no limitation or exception by this department, and is, therefore, fully applicable to attempted exportation to Canada.

I cannot but add that I have examined with much surprise and regret the tabular statement contained in the report of the commissioner of customs of Canada; a statement which seems to prove conclusively that the order of May 19 has had little or no effect in diminishing the exportation of live stock to Canada. This fact, while it explains and justifies the doubts of the Canadian authorities, makes manifest a degree of negligence or misapprehension on the part of the customs officers on the northern frontier, which I shall immediately endeavor to correct.

If it be true that Messrs. Nash and Davies, the parties interested in the case presented, have acted in ignorance of the prohibitory order, and have but pursued a course which has been followed out with success in many other instances, I certainly regret the inconvenience to which they have been subjected; but, as I have already remarked, this department cannot, with propriety, make an exception in their favor.

With great respect.

S. P. CHASE, Secretary of the Treasury.

Hon. William H. Seward, Secretary of State