Mr. Harvey to Mr. Seward.

No. 277.]

Sir:The accompanying copies of letters from the United States consul at Fayal and the United States consular agent at St. Michael have just now reached the legation, and I communicate them immediately in the hope that effective measures may be adopted to prevent the illicit traffic to which they refer.

It is quite evident, as I have heretofore had occasion frequently to suggest, that the public interests in this quarter cannot be properly protected without the presence of at least two war steamers of sufficient speed and armament.

The sloop-of-war St. Louis is of no use whatever in a practical point of view, while her maintenance abroad involves a considerable cost to the government. Besides which, there is a constant danger of her destruction or capture by the superior steam cruisers of the rebels; a fact which would be attended with more injury and humiliation to the national cause than the material value of a hundred such ships.

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I am quite aware of the difficulties which perplex and beset the Navy Department in adopting suggestions for an increase of steamships of war on foreign stations; but as the chief embarrassment seems to be rather in regard to the supply of seamen than of steamers, it has occurred to me that the crews of the sailing vessels in these waters might be advantageously transferred to a class of ships better adapted to the requirements of the situation. If my information is correct, the crews of those vessels will willingly renew service on war steamers, though the period of their cruises may have expired.

The mid-ocean islands belonging to this government have become too important from their geographical position to be overlooked, and whatever attention may be bestowed in that direction will proportionably reduce the labors and force on the station of the West Indies and those of the blockading squadron.

I have the honor to be, sir, your obedient servant,

JAMES E. HARVEY.

Hon. William H. Seward, Secretary of State.