[First indorsement.]

DEPARTMENT OF STATE, November 8, 1861.

Respectfully referred to the Secretary of the Treasury for his opinion as to the propriety of arresting the person complained of. Please return these papers.

By order of the Secretary of State:

E. D. WEBSTER.

[Second indorsement.]

SECRETARY OF STATE:

Messrs. Beckett and Tytus are best known tome of the gentlemen referred to and are highly respected citizens. The other gentlemen so far as I know enjoy the confidence of their fellow-citizens. perhaps I ought to add, however, that I am obliged to differ from them as to the expedience of arresting Mr. Vallandigham. I return the papers.

S. P. CHASE.

[Inclosure.]

Honorable WILLIAM H. SEWARD,

Secretary of State of the United States:

We the undersigned citizens of Butler County, Third Congressional district, Ohio, having heard the speech of Honorable C. L. Vallandigham made in this city on the 12th of October, 1861, and believing it will calculate to render aid and comfort to the traitors now in hostility against the Government of the United States by exciting sympathy for them in this community, and particularly by preventing enlistments in the volunteer service of the country and by discouraging subscriptions to the Government loan, beg leave respectfully to request that you adopt such means as will prevent this gentleman from working similar detriment to the public service in future. We herewith send the Cincinnati Commercial containing a brief abstract of the speech in question, which we pronounce generally correct as far as it goes. Of the effect of this speech in our community we can only give our opinion, which is that it has in some measure put a stop to enlistments in this community. Were we to undertake to point out wherein the Commercial's report fails to give a full impression of Vallandigham's language it would be in that part where he denounces the loan and tax measures, which he denounced as particularly unequal, unwise and disastrous in their results. We have only further to say that the speech in its general tone and bearing was just such a speech as might very well have been addressed to and been applauded by an audience of rebels. It was vilely denunciatory of the Administration and very kindly in its tone toward the rebels. On the subject of taxation he said that the amount to each man, woman and child would be about $30; that the people would be utterly unable to pay it, and the result would be that under the laws the farms would be sold and bid in byofficers, and shortly afterward Government land offices would be established all over the State for the sale of forfeited farms. As to the bonds issued by the Government they would soon depreciate to 80 or 70 per cent., and thus the widows and orphans would be fleeced. And if the war went on a few years the very men who authorized the issuance of the bonds would turn round and repudiate them. We do most sincerely believe the good of the country requires that the said Vallan-