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subside, but there is such a dementia in some of the people here that we must not be surprised at any act of violence they may commit.

      Mr. Seward will be furious when he finds that his adherence to the Declaration of Paris will not stop the Southern privateering. This is one of the difficulties of making the proposals respecting maritime law. But the great trouble will be the fuss which the Southern government will make about receiving a communication from England and France. It will be a great advantage to have a discreet and able man like Mr. Bunch to employ in the South. I trust it may be possible to grant him some compensation for the risk and loss to which he is exposed by remaining there.

      Another long letter of June 10 illustrates the tension of the situation, and again urges the necessity of attending to the defence of Canada.

      * * * * *

      Lord Lyons to Lord John Russell.

       Washington, June 10, 1861.

      I owe you more than common thanks for your private letter of the 25th.

      Mr. Adams' Report of his first conversation with you appears to have produced a good impression on the Cabinet. This I learn from Mr. Chase, the Secretary of the Treasury, who dined with me the day before yesterday. I have not seen Mr. Seward since they arrived. It is too dangerous to talk to him on such subjects for me to bring them up unnecessarily.

      I hope we may see some moderation in the tone of the Newspapers. The people in the North are beginning to be aware of the immense encouragement which their predictions of a war with England have given to their Southern Foe. I understand that the effect at Richmond of the repeated assertions in the Northern Papers of the hostility of England to the North has been prodigious.

      I have written so much officially on the risk of a sudden Declaration of War against England by the U.S. that I have nothing to add on that subject. That such an act of madness is so far from impossible, that we ought to be prepared for it at any moment, I am thoroughly convinced. I am doing all I can to avoid awkward questions—for to give way upon any such question would be still more dangerous to peace than to make a firm stand. The safe course therefore is to prevent questions arising, if possible. But the first thing to be done towards obtaining anything like permanent security is to remove the temptation to attack Canada.

      I am a little nervous about our Company of Marines on San Juan. I don't know that I can suggest any precautions to Governor Douglas which would not be more likely to do harm than good. I have besides no means of sending him a letter, which would not be liable to be read on the way. I can communicate with the Admiral in the Pacific in cypher, but I do not know where he may be. Under any circumstances the Government here would of course be able to send intelligence of war having broken out to the Pacific sooner than I could.

      M. Mercier, the French Minister here, appears to be very frank and cordial with me. The instructions which he read to me insist very strongly upon his acting in entire concert with me. I think he may perhaps have received a confidential Despatch desiring him to proceed cautiously, for he is going at a much slower pace than his language a short time ago would have led one to expect. His giving Mr. Seward a copy of the Exposition of the French Jurists on the question of Belligerent Rights, as he did before of M. Thouvenel's account of his conversation with Mr. Sanford, seems to show a straightforward desire to make this Government acquainted with the real sentiments and intentions of the Emperor. The language M. Mercier uses to me and to his other Colleagues, as well as that which he uses to Americans in my presence, is in direct contradiction to the reports that France will assist the North, which are so assiduously repeated and commented upon in the American Newspapers. I am very willing to let him take the lead in our communications about the Declaration of Paris. It would be playing the game of the enemies to peace with England for me to go faster in these matters than the French Minister.

      Among other difficulties in the way of making your communication to the Southern Consuls, is that of getting it safely to them. All regular communication with the South is cut off. I suppose the Government here would give either M. Mercier or me a Pass for a special Messenger if we asked for one—but it may be desirable to afford as little evidence as possible of our being connected with the communication. The Southern Government will no doubt do all in their power to give importance and publicity to the communication. This Government will very probably withdraw the Exequaturs of the Consuls who make it. The withdrawal would not be altogether free from inconvenience to us, as it would interfere with the Consuls' holding intercourse with the Blockading Squadrons, which it is sometimes of importance that they should be able to do.

      I think the English and French Governments will find it necessary to make the Cabinet of Washington clearly understand that they must and will hold unofficial communication with the Southern Government on matters concerning the interests of their subjects. The announcement should if possible be made collectively, and in such a form as to preclude the Cabinet's pretending to find a difference between the conduct of France and England. The Government of the U.S. can perform none of the duties of a Government towards Foreigners in the Seceded States; and it is a preposterous pretension to insist upon excluding Foreign Governments from intercourse with the authorities however illegitimate, to whom their Subjects must in fact look for protection.

      The inactivity of the Troops on both sides would be satisfactory, if one could hope that there was still any chance of the question's being solved without any serious fighting. As it is, one would be glad that something should be done as soon as possible to enable an opinion to be formed on the relative strength and spirit of the Armies. I believe that the real secret is that from want of training in the men, and total lack of waggons, horses and other means of transport, neither Government can move troops in any considerable numbers except by railroad. I can see as yet no signs of the spirit of conquest in the North flagging, or of the South losing courage. The Financial Difficulty will be the great one on both sides. The Southern men are said to serve without pay—but this Government has fixed the pay of the volunteers and militiamen at the same rate as that of the regular army, eleven dollars (about 45 shillings) a month, for a private, in addition to clothes and rations.

      I must do the little I can to influence the Senators and Representatives when they come up next month; but there is only too much reason to fear that fierceness against England will be popular, and that the Legislators will vie with each other in manifesting it. What I think they are most likely to do is to give the President authority to declare war with us, without waiting for the sanction of Congress.

      * * * * *

      Since I wrote what precedes I have been informed privately that in Mr. Dayton's Report of his audience of the Emperor, there is a rather ambiguous phrase put into the Emperor's mouth, respecting His Majesty's desire to contribute to put an end to the dispute between North and South. My informant says that the President and Mr. Seward really interpret the phrase as signifying that the Emperor would be willing to assist the North to subdue the South—and that it is from this supposition that Mr. Seward does not send M. Mercier back the 'Exposition' and enter into the discussion about neutral Rights. Mr. Seward is naturally puzzled by the apparent discrepancy between the Emperor's language and that of His Majesty's Minister here. The men in the State Department who are accustomed to business look, it seems, upon the Emperor's words, even as reported by Mr. Dayton, as no more than a vague assurance of goodwill, pointing to mediation rather than to anything else. I will endeavour to get M. Mercier to set the President and Mr. Seward right as soon as possible, for the delusion is a very dangerous one for England, and a much more dangerous one for the U.S.

      The ill-feeling towards England continued to grow worse as time went on, and apparently was due largely to sentiment. The success of the South in founding a practically independent government was so galling to the North that anything which implied the admission of a self-evident fact, such as the recognition of the Southern States as belligerents, was inexpressibly galling. Fortunately, England and France were acting in unison, and even Mr. Seward's ingenuity was unable to show that there was any difference between the attitude of the two countries. Writing on June 24, Lord Lyons reported that he had discovered that Mr. Seward had prepared a despatch which was all but a direct announcement of war, and that it was only the intervention of the President and of the more reasonable members of the Cabinet which

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