Mr. Yeaman to Mr. Seward.

No. 85.]

Sir: The government of Denmark has rejected, as was indicated would be the case by the response of the King to the address of the Rigsdag, the demands of Prussia set forth in the note of which I sent you a copy in my No. 78, of the 4th instant, for special guarantees in behalf of the Germans residing in North Schleswig.

It is impossible to see what course the affair will now take; whether Prussia will keep the whole of the duchy, or yield the demand for guarantees and allow the election to be held, or whether there will be a reference, or other form of compromise. The opinion here seems to be that the ultimate chance of a war, in which Prussia would have Denmark and France allied against her, has been increased.

I am, sir, very respectfully, your obedient servant,

GEORGE H. YEAMAN.

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