Mr. Seward to Lord Lyons.

My Lord: I have the honor to acknowledge the receipt of your memorandum of the 8th instant, relative to the release of the master and crew of the captured British steamer Banshee, and, in reply, to enclose herewith to you the copy of a letter of yesterday, addressed to this department by the Secretary of the Navy, from which it will be seen that he has directed the discharge of all of the crew of the Banshee except F. Foley, who makes no claim to be a British or foreign subject, and Jonathan Steele, the master of that vessel, who is reported to the Navy Department to be an American.

I have the honor to be, with high consideration, your lordship’s obedient servant,

WILLIAM H. SEWARD.

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

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Mr. Welles to Mr. Seward.

Sir: I have the honor to acknowledge the receipt of your letter of the 9th instant in relation to the foreigners captured on board the Banshee. In accordance with your recommendation, I have directed the discharge of all mentioned in the list enclosed to me excepting Foley and Jonathan Steele. The order for their discharge is withheld for the reason that the former was born in Baltimore, and makes no claim to be a British or foreign subject, and the latter, although claiming to be a British subject, does not make oath to that effect. He was the master of the Banshee, and it was reported to the department that he is an American.

Very respectfully, &c,

GIDEON WELLES, Secretary of the Navy.

Hon. William H. Seward, Secretary of State.