S. Ruggles was at Montgomery in March and April, 1861, solicting employment in the marine service of the insurgent Government; that in May following he was sent to Havanna and the ishmus of Panama to convey dispatches to General Johnston and other military officers to persuade them to enter the rebel service and to warn them against entering any port in the loyal States, and also to acquire information in relation to the shimpments of treasure from California across the Isthmus and the provision if any for its protection; and that he executed this mission. The said Ruggles remained in custody at Fort Warren February 15, 1862, when in conformity with the order of the War Department of the preceding day he was transferred to me the charge of that Department. -From Record Book, State Department, " Arrests for Disloyalty. "

PRIVATE.] CONSULATE UNITED STATES OF AMERICA,

Panama, June 14, 1861.

Honorable WILLIAM H. SEWARD,

Secretary of State, Washington.

RESPECTED SIR: I have the honor to advise that a person styling himself Edward S. Ruggles and a midshipman in the naval service of the United States presented himself at my consulate about a week since and deposited two letters with the following superscriptions upon them with the request that I should retain them until called for by the parties to whom they are addressed, viz: "General A. Sidney, Johnston, Panama, Isthmus of Panama," and "Lieutenant E> P. Alexander, U. S. P. [ioneers,] probably in charge of company of sappers and miners enroute from San Francisco, at Havana or Aspinwall; maybe without his company. " The first he said was from the wile of General Johnston, who was exceeding anxious that her husband should receive it when he passed through this place en route for the United States. It appears that young Ruggles (he is a lad about eighteen years old) reached Aspinwall via Havana and Saint Thomas.

This fact and some expressions which he inadvertently made led to the suspicion that he was an emissary from the usurped Government of Montgomery sent to this Isthmus either to make overtures to the officers of the U. S. Army and Navy on the Pacific who were known to have resigned and were supposed to sympathize with the rebels, or else for the purpose of ascertaining what measures if any had been adopted to protect the treasure from California against seizure. He probably had both objects in view. At any rate the inquires he made of a forward oficer of the U. S. ship Saranac as to how long it would require to land a force from that vessel and dispatch it to Aspinwal in case of an emergency would seem to confirm the suspicion that one of the objects of his visit to this Isthmus was to procure information with regard to the movements of specie in transit from California to New York.

I made every effort to ascertain from him the object and nature of his visit without success. He prevaricated so much that it was impossiom him the truth. On referring to the Navy Register I found that he was among the officers who had resigned, and upon my calling his attention to the fact he said that had tendered his resignation but that the Secretary of the Navy had refused to accept it on account of his farther's strong Union proclivites. I afterwards learned that his father at last accounts was in command of the rebel forces at Petersburg or Fredericksburg, Va.