Mr. Seward to Mr. Dayton

No. 635.]

Sir: I enclose for your information a copy of a letter which I have received from his excellency Frederick F. Low, governor of California, relative to the rumor there that Mr. William M. Gwin is to be minister of finance under the new government of Mexico, and also concerning the supposed policy of the Emperor of France in regard to indemnity for the expenses of the war.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

William L. Dayton, Esq., &c., &c., &c.

Governor Low to Mr. Seward

Sir: I beg to acknowledge the receipt of your letter of 20th June, enclosing copy of an extract from a letter received by you from Paris, giving information concerning the movements of Mr. William M. Grwin.

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There is a rumor here that Gwin is to be minister of finance under the new government of Mexico, but I cannot vouch for the correctness of the report. My impressions are that the Emperor of France will require indemnity for the expenses of the war, and in the absence of any revenue which could be applied to that purpose, he will demand and receive from Maximilian certain territory which will comprise the States of Sonora and Sinaloa, probably in lieu of a money consideration.

Gwin has probably been sent as an emissary to shape the public mind for such a state of things. In any event, the ports in the gulf of California will most likely be a sort of rendezvous for plotters of treason, bearing a similar relation to the Pacific coast that Nassau does to the Atlantic.

The Mexican question is one that is of especial importance to the people of this State, and for any information concerning it, which you may think proper to communicate to me, I would feel especially obliged.

I have the honor to be your obedient servant,

FREDERICK E. LOW.

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