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of ill-humour. My object has been, on the one hand, not to prevent the Government being led by its present apprehensions to take some conciliatory step, and on the other hand not to put H.M. Government or myself in an awkward position, if it should after all appear that we should not be right to make the affair a serious ground of complaint.

      Congress will meet on December 2nd, which will not diminish the difficulty of managing matters here. It is supposed that General McClellan will be obliged to attempt some forward movement, in order that he and the Government may be able to meet the fiery legislators. They hoped the Beaufort affair would have been sufficient, but like all they do, the effect is so much weakened, first by the preposterous boastings beforehand, and secondly by the fabulous accounts of the success first given, that something new must if possible be provided.

      The Finances are kept in an apparently prosperous condition, by postponing all but the most pressing payments. In this manner the New York Banks are not pressed to pay up the sums they have taken of the Loan. The people are so enamoured of their last brilliant discovery in political economy that it was seriously intended to raise the Morrill Tariff, in order that no money might go out of the country and nothing be imported but 'gold and silver to carry on the war with.' The Cabinet has now however, I understand, determined to recommend that the Morrill Tariff be not touched. One cannot help hoping that some one may be reasonable enough to suggest the idea of a Revenue Tariff.

      General McClellan's own plan is said to be to gain a great victory, and then, with or without the sanction of Congress and the President, to propose the most favourable terms to the South if it will only come back. It is a curious sign of the confusion into which things are falling, that such a plan is coolly discussed. I mean that part of it which consists in the General's acting without the consent of the President and Congress.

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      Lord Lyons to Lord Russell.

       Washington, Nov. 25, 1861.

      The people here are extremely frightened about the capture on board the Trent. The New York money market gives signs of this. Another indication is the moderation of the newspapers, which is for them wonderful. They have put in more correct accounts of my language (or rather silence). I rather suspect that this must have been done on a hint from Mr. Seward. As a general rule I abstain from noticing anything the newspapers say about me. On this occasion in particular contradiction from me would have been almost as dangerous as affirmation, so I left the assertions to take their chance.

      The Consuls in the South do not behave well about forwarding private letters. There is a fresh case which I report to-day. Mr. Seward has, I think, behaved properly about it. I am afraid I shall be obliged to ask you to support me by some severe act, if my last instruction is not obeyed.

      I write, as indeed I act, as if our relations with this Government were to be unchanged. Let the affair of the capture on board the Trent turn out how it may, I am not confident that I shall long be able to do so.

      Writing on the same date to Admiral Milne, he repeats that nothing whatever has passed between him and the U.S. Government on the subject of the Trent, and adds: 'I suppose I am the only man in America who has expressed no opinion whatever either on the International Law question, or on the course which our Government will take.' Such reticence appears almost superhuman.

      The attitude, however, of an important section of the American public was anything but reticent. Captain Wilkes sprang at once into the position of a national hero. Congress passed a vote of thanks to him; he was banqueted, toasted, serenaded, and shortly became an admiral. A member of the Government, Mr. Welles, Secretary of the Navy, noted for his hostility to England, distinguished himself by officially congratulating Captain Wilkes upon his heroic action; intimating at the same time that the 'generous forbearance' he had shown in not capturing the Trent could not be treated as a precedent in subsequent cases of the infraction of neutral obligations. The Governor of Boston also distinguished himself by the following statement at a public banquet: 'That there may be nothing left to crown this exaltation, Commodore Wilkes fired his shot across the bows of the ship that bore the British lion at its head,' while many other prominent citizens followed his example.

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      Lord Lyons to Lord Russell.

       Washington, Nov. 29, 1861.

      The Consuls in the South are crying out for ships again. This is the solution for every difficulty in the Consular mind, as my experience in the Mediterranean taught me long ago; though what the ships were to do, except fire a salute in honour of the Consul, I could never discover. I had some trouble, as you may perhaps recollect, in checking the Consular ardour to send ships up the Potomac to my own relief last spring. Sir A. Milne objects strongly to sending ships to the Southern Ports, unless with a specific object and definite instructions, and I think he is quite right. It is quite true that a town may be bombarded some day by the United States forces: that British subjects may have their throats cut by the negroes in a servile insurrection, or be tarred and feathered by a Vigilance Committee. But we cannot keep a squadron at every point to protect them, and I do not know what points are particularly threatened.

      I shall do all in my power to keep things smooth until I receive your orders about the Trent affair. This can in any event do no harm. There is a story here that, in a recent hypothetical case, the Law Officers of the Crown decided in favour of the right of the United States to take Mason and Slidell out of a British ship or postal packet. I do not know whether Mr. Adams has written this to Mr. Seward, but I am inclined to think that the Government believe it to be true.

      The uncertainty as to the opinion of the Law Officers of the Crown rendered it all the more necessary to keep quiet and wait for orders, and the situation was rendered a little easier on account of there being no mention of the Trent in the Presidential Message. Mr. Galt, the Canadian Finance Minister, happened to be in Washington at the beginning of December, and had an interesting conversation with President Lincoln, who disclaimed for himself and the Cabinet all thought of aggression against Canada. The President also stated that he himself had been opposed to Mr. Seward's circular putting the coasts into a state of defence, but had been overruled. On being asked what the recommendation to make fortifications and depôts of arms on the Great Lakes meant, he only said, 'We must say something to satisfy the people.' About the Mason and Slidell case, he remarked, 'Oh, that'll be got along with!' He further volunteered the observation that if he could not within a reasonable period get hold of Virginia, Kentucky, and Missouri, and keep Maryland, he should tell the American people to give up the contest, for it would be 'too big' for them.

      The impression produced upon Mr. Galt was that President Lincoln himself was honest and sincere in what he said, but that he was very far from being master of his Cabinet. Mr. Galt returned to Canada, bearing a letter to Lord Monck, the new Governor-General, urging the necessity of preparing for defence, and also an ingenious arrangement for warning the Canadian Government in case of emergency, without having recourse to cypher telegrams, which might arouse the suspicions of the Americans.

      On December 13, intelligence was received in America of the arrival in England of the first news of the capture of Mason and Slidell, the submarine cable, of course, not being at that time in operation. A great fall in all securities immediately took place.

      At midnight on the 18th, the Queen's messenger bearing the fateful despatches from Lord Russell arrived at the British Legation at Washington.

      The principal despatch, dated November 30, 1861, had been drawn up after consideration by the Cabinet, and the purport of it was that the United States Government were informed that International Law and the rights of Great Britain had been violated, that H.M. Government trusted that the act would be disavowed, the prisoners set free and restored to British protection. Should this demand be refused, Lord Lyons was instructed to leave Washington.

      The draft of this despatch was submitted to the Queen, and, in the opinion of the Prince Consort, the wording was of somewhat too peremptory a character. The suggestions of the Prince Consort were embodied in a memorandum quoted by Sir Theodore Martin in his book, and the object of them was to remove any expressions in the despatch which might unduly affront

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