[Extracts.]

Mr. Dayton to Mr. Seward.

No. 160.]

Sir: Your despatch No. 160 is received.

The defeat of General Banks, to which it refers, has been commented upon by the great body of the English press as though it were a victory of vast importance to the southern cause. This, together with the check to our [Page 350] gunboats on the James river, is assumed as altering altogether the face of things; and the future of the war is now looked upon as a sort of dissolving view. The glass is reversed, and the end, they say, seems more remote than at the beginning. In this condition of things the rumors of recent conferences thicken, and it is said that a strenuous effort is now being made to induce England and France to intervene, in some form, in our affairs. Those who are hostile to the interests of the United States care little in what form this intervention comes. They believe that, should England and France tender mediation or otherwise, and the same be rejected by our government, (as they well know it would be,) these governments could not then stop; that the cotton interests, backed by the national pride of both countries, would urge them first into a recognition of southern independence, and then into an active intervention, if need be, to stop the war. It is seen, too, by those who are unfriendly to the Union of our States, that should success attend our arms in one or two more battles, it would be too late to tender aid to the south; that their condition would not even afford a fair pretext for interference. They do not mean the opportunity shall pass if they can prevent it. What success will attend their efforts I do not know.

* * * * * * * * *

I should not attach much importance to these rumors, however well accredited they seem to be, were it not for the exceeding pressure which exists for want of cotton, and the growing fear that the opening of ports merely will not supply that want.

Any hostile interference on the part of France would be much in conflict with the tone of feeling in which she has heretofore and at all times expressed herself. In addition, I do not see how she can suppose that her interference would tend to facilitate the procurement of cotton, which she so much needs. I can scarcely believe that anything effective will be attempted until the consequences of the opening of our ports have been realized; as yet no time has been given.

I get communications from our consuls in different quarters’ to know what is excluded from our opened ports under the head of “contraband of war.” Mr. Chase’s circular, as printed in certain New York papers, excludes “all liquors.” This would embrace ordinary French and other wines, the sole exports of Bordeaux and other towns. Can this have been the intention of the government?

I am, sir, your very obedient servant,

WM. L. DAYTON.

His Excellency William H. Seward, Secretary of State, &c., &c., &c.