stood nominally transferrd the vessel to a brother-in-law named Harry Horton who changed her name to the Adelso, and she was then dispatched from a British province to Wilmington under the command of Thomas Kimball as master, who claimed to be a British subject, although he had been naturalized as an American citizen. the vessel enterd Wilmington by running the blockade, and she left it ni the same way on the 6th of August freighted with resin and turpentine bound for Halifax.

The letters and papers which he was conveying were found hidden among his clothing, and these papers, showed that he was to purchase for O. G. Parsly & Co., at Liveerpool, and assorted cargo and return theerewith to Wilmington, N. C. Among the papers thus found were insstruciton from O. G. Parsly & Co. to Brown, Shipley & Co., Liverpool, giving the invoices for purchases, namely, 5,000 to 10,000 army blankets, 1,000 bags of coffee,----tons of iron, round an flat (notorioulsy needed for military purposes). The whole sum to be thus expended was $40,000. The goods were to be shipeed in a French or a British vessel. With tese instructions were directions how to give notice by concerted signals of his return and arrival off the coast and to recive in the same way warning of the presence and movement of the blockading forces.

The two letters of O. G. Parsly & Co., which I have already mentioned, directed the foreign mercantile correspondents to whom they were addressed to pay over to Borwn, Shipley & Co. certain assets belonging to the former firm, and the last letter asked aid to M. de Bbian in the business with which he was charged. Brown, Shipley & Co. are well-known commercial and political agents of the insurgents and actually engaged in fitting out vessels for them in violation of the blockade and with contraband of wer.

Besides the papers mentioned others full of disloyal and treasonable matter written by persons who confessed they were engaged in treasonable occupation were found in possession of Ed Bebian. One of these letters condemned the Government of the United Sstates and avowed the opinion that it must pretty soon acknowledge the Sothern Confederacy.

In view of these circumstances this Government considered that it would be incompatible with the public safety to permit Louis de Bebian to proceed at that moment with his $40,000 to Europe and he was retained under military custody at Fort Lafayette merely as a measure of precaution. As soon as it was supposed that di health might suffer by reason of close confinement he was enlarged, but held under surveillance and shortly thereafter when it was supposed that the treasonable purposes in which he was believed to be engaged were practically defeated this surveillance was removed and he was left a t liberty to go to France. After remaining there until he grew weary of exile in his native country this Government at your request made in his behalf permitted him to return to his disloyal assiociations at Wilmington, in North Carolina.

You will perceive, sir, that De Bebian is not regarded by us as having been an innocent passenger on board the Adelso nor is the Adelso regarded as having been a neutral vessel. Morcover the examination in his case was made with all the promptness that was possible and hi discharge from confinement was granted as soon as a prudent regard for the public safety then deeply imperiled would peermit.

I avail myself of this opportunity to renew to you, sir, the assurance of my high consideration.

WILLIAM H. SEWARD.