Mr. Seward to Lord Lyons.

My Lord: With reference to your communication of the 6th ultimo, respecting the restrictions upon trade between New York and Newfoundland, by the exaction of bonds, I have the honor to state that it appears from the report of the Treasury Department upon the subject, that having reason to believe that shipments from New York for Newfoundland were intended for the Bermudas and Nassau, as their ultimate destination, and for the purpose of evading the [Page 522] requirement of bonds for shipments to the last-named places, bonds were, in one or two instances only, some months ago, required on cargoes for Newfoundland. That requirement has, however, now been discontinued.

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

WILLIAM H. SEWARD.

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