[Extracts.]

Mr. Pike to Mr. Seward

No. 148.]

Sir: * * * * * *

Since I received your directions to confer with the ministers at Brussels, Paris, and London, and with the commanders of our naval vessels in these waters in regard to the naval force required here, I have visited the Niagara and Sacramento, and have likewise consulted our ministers above named on the subject. I did not see the commander of the Iroquois before he left for his distant station.

* * * * * * *

Another thing that I believe is deemed, on all hands, to be requisite to an efficient service here, is to have our ships formally placed under one commander, so that unity of action may be secured when needed. This arrangement would devolve a responsibility of oversight over the whole field, which does not now exist.

The war vessels which are being constructed in France by private builders, some iron-clad and some not, are a standing menace to us, and should be objects of constant watchfulness.

* * * * * * *

The fall of Atlanta, and the successes at Mobile, have produced a powerful sensation in Europe.

Since the news, our government stocks have taken a sudden bound upward, and the cotton loan of the rebels has had a corresponding fall.

The events are regarded as being paralleled in significance during the war only by the capture of New Orleans.

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

JAMES S. PIKE.

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