Mr. Sherman to Mr. Dupuy de Lôme.

No. 301.]

Sir: In further acknowledgment of your note of the 28th ultimo, respecting the operations of certain alleged filibustering steamers, I have the honor to inform you that I am to-day in receipt of information from the Treasury Department to the effect that the movements of the steamer Dauntless have been watched daily during the past two months by the United States authorities at Savannah; that she has been engaged in the towing business at that port, and has done nothing to indicate an intention to violate the neutrality laws; that on October 16 she towed a vessel in from the sea and returned at once without taking on board extra supplies of any kind, and that since that date she has not been at the port of Savannah. I am further informed that the Sommers N. Smith has returned and is at present on the Pensacola Bar.

Accept, Mr. Minister, etc.,

John Sherman.