Mr. Adams to Mr. Seward
Sir Owing to the delay in the arrival of the Canada, I only, late yesterday, received from the department the despatches numbered from 1247 to 1255, inclusive.
With respect to the directions contained in No, 1250, of the 27th of January, to present the claims for damages done by the Shenandoah, I am in some doubt what it is best to do. In view of the events narrated in my despatch No. 879, which goes out with this, it might be thought here as not well timed to renew complaints before the effect of the remedy now first to be applied could be seen. Inas much as no harm can be done to the claims by postponing action, I think I shall wait until you shall have had an opportunity to survey the whole field.
The news of a probability of peace, which came by the steamer Canada, spread consternation every where. The funds fell, the cotton market was paralyzed, and nothing in the city showed animation except the cotton bonds and the United States stocks. There is a singular delusion prevailing here, that no pacification will be made without a recognition of the confederate loan.
The effect seems to have been much the same at Paris, excepting that the cause of panic was different. There, it was the rumor of the Monroe doctrine being made the basis of union, which is construed as hostility to the French influence in Mexico.
Fortunately for the nerves of all parties, the Canadian steamer came in the very next day, with the quieting intelligence that no result had been arrived at.
I have the honor to be, sir, your obedient servant,
Hon. William. H. Seward. Secretary of State, Washington, D. C.