[Extracts.]

Mr. Seward to Mr. Pike

No. 137.]

Sir: Your despatch of December 2, No. 112, has been received.

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I forbear from comment on European questions, although I appreciate very highly the information you give me concerning them.

The most important incident of the hour here is the discovery of the extent to which British and French toleration of the insurgents has emboldened them to avail themselves of friendly ports as a base of naval expeditions to make direct war against the United States. The revelations have been brought to the knowledge of the two governments concerned.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

James S. Pike, &c., &c., &c.