[Extract.]

Mr. Morris to Mr. Seward.

No. 79.]

Sir:* * * * * * * *

I am pleased to know that the pistols manufactured as a present to his Highness Kibrisili Pacha, governor of Adrianople, in recognition of his services in the arrest and punishment of the assassins of Rev. Mr. Merriam, have been already forwarded from the United States. When they arrive, it will give me great pleasure, in delivering them to his Highness, to execute the very judicious instructions contained in your despatch of January 11, 1864.

The Turkish government has been temporarily relieved of its financial embarrassments by the negotiation of a loan with the Imperial Bank to the amount of $2,500,000, giving as security the balance still remaining unpaid of the last European loan, the government to reimburse the principal in four years at 120,000 Turkish liras per annum. This sum is hardly sufficient to cover the arrears to the civil employés and to the army and navy. In case of war the government would be seriously embarrassed for want of funds, as the greater part of the several loans contracted are consumed in meeting current and past liabilities.

The spirit of the Danubian Principalities is exceedingly hostile to the Porte, and advantage will be taken of the first favorable moment to assert complete independence of the Porte. It is generally understood that a treaty offensive and defensive in regard to the Porte exists between Servia and Moldavia and Wallachia. The united military force of these two Principalities is estimated at 75,000 men, well equipped and armed.

I have the honor to be, with great respect, your obedient servant,

E. JOY MORRIS.

Hon. William H. Seward, Secretary of State, &c., &c., &c..