[Extracts.]

Mr. Pike to Mr. Seward

No. 116.]

Sir: * * * * * * * *

The great successes of our late military operations in Tennessee and Kentucky, of which you speak, are most gratifying. They seem to prelude the collapse of the rebellion. They have a double force, coming, as they do, at the same time with the confession of its ruined finances. Nobody here is bold enough to even speculate on the prospect of the schemes put forth by Mr. Davis and Mr. Memminger to retrieve the financial position. They are simply regarded as futile and impossible. The confession of Mr. Memminger that their cause is ruined unless success attends these schemes, becomes broadly significant in the light of this judgment. To the European mind the insurgent struggle to contend longer against the Union arms thus takes on the phase of mere desperation.

Great alarm is felt at the progress of the movement in Germany, which is now assuming a revolutionary aspect by demanding the forcible dismemberment of Denmark in defiance of treaties. The helplessness of Denmark excites sympathy, but does not secure assistance, which is the one thing needful. The question of the duchies, so long menacing, must now be solved one way or another. Apprehensions are beginning to be felt that its solution may even involve a struggle between the popular and legitimate interests in Germany itself.

The European congress falls through under cover of propositions for a modified form of it in the shape of ministerial discussions. This is only to enter the endless circle of diplomacy by the same door from which the original proposition for a congress issued.

There are no longer any alliances in Europe. But it is not to be inferred from this that the hostile spirit of the great powers towards one another is increasing. It seems rather to be lessening.

* * * * * * *

As to us, I believe the sentiments of all nations towards us to be profoundly peaceful.

I have the honor to be, with great respect, your most obedient servant,

JAMES S. PIKE.

Hon. William H. Seward, Secretary of State, Washington.