Mr. Seward to Lord Lyons.

My Lord: Recurring to your note of the 9th instant, which relates to the capture of the British vessel Saxon by the United States ship Vanderbilt, at Angra Pequena, on the coast of Africa, and in which you inform me that her Majesty’s government have commanded you to request the government of the United States either to direct the immediate release of the Saxon, with proper compensation to the owners, or at least to explain the grounds on which her seizure and detention are supposed to be justified. I have the honor to enclose, in reply, a copy of a letter of the 15th instant, from the Secretary of the Navy, from which it appears that Commander C. H. Baldwin, commanding the Vanderbilt, reports that he seized the Saxon for having on board a portion of the cargo of the American bark Conrad, which vessel had been captured by the piratical steamer Alabama, and that the Saxon is now in the hands of the district court for the southern district of New York for adjudication.

I have the honor to be, with the highest consideration, my lord, your obedient

WILLIAM H. SEWARD.

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

Mr. Welles to Mr. Seward.

Sir: I have the honor to acknowledge the receipt of your letter of the 10th instant, enclosing a copy of a note addressed to you by Lord Lyons relative to the capture by the United States steamer Vanderbilt, at Angra Pequena, of the British bark Saxon, and requesting to be furnished with any information possessed by this department as to the facts and grounds of the capture.

From a report of Commander C; H. Baldwin, commanding the Vanderbilt, it appears that he seized the bark Saxon at Angra Pequena, on the 30th of October, 1863, for having on board about one hundred and sixty bales of wool and goat-skins, which were a part of the cargo of the American bark Conrad, which vessel had been captured by the piratical steamer Alabama a short time previous, and had landed her cargo at Angra Pequena, and had been converted into a piratical cruiser (the Tuscaloosa.)

The Saxon was sent in charge of a prize crew to New York, and is now in the hands of the district court there.

Very respectfully, &c,

GIDEON WELLES, Secretary of the Navy.

Hon. William H. Seward, Secretary of State, &c., &c., &c.