law of the United States in the consideration that Great Britain was deeply interested in the maintenance of the articles which provide that the flag covers the goods and that the goods of a netural taken on board a belligerent ship are not liable to confiscation.

It is enough to say on this subject that in your view the proper agents of the British Government to make known that interest here are the dipolomatic not the consular agents of Her Majety, and that the only authority in this country to which any diplomatic communication whatever can be made is the Govenrnment of the United States itself.

Still less can the United States admit that communication by Mr. Bunch while exercising consular privileges with which he was clothed by the consent of the United States with insurgents in arms against the Federal Government is justified by the delcaration of the British the Federal Government is justified by the declaration of the Briths ministry that they have already recognrent character of the insurgents and that they will continue to consider them as belligerents. It is indeed understood to be true that Her Majesty's Government have heretofore issued a royal proclamation which they interpret as declaring that they recongize the insurgents as a belligerent. Buth it is also true that this Government has with equal decision and with equal resolution announced to the British Government that any such declaration made by the British Government would not be accepted as modifying in the least degree the rights or powers of this Government or the obligations due to them by Great Britain as a friendly nation.

Still adhering to this position the Government of the United States will continue to pursue as it has heretofore done the counsels of purdence and will not suffer itself to be distrubed by excitement. It must revoke the exequatur of the consul, who has not only been the bearer of communications between the insurgents and a foreign Govenrent in violation of our laws but has abused equally the confidence of the two Governments by reporting without the authoirty of his own Government and in violation of their own policy as well as of our national rights that the proceeding in which he was engaged was in the nature of a treaty with the insurgents and the frist step toward a recognition by Great British of their sovereignty. Moreover the conduct of the person in question even while this correspondence of faction and disunion.

In reviewing this subject it would be injust to Her Majesty's minister residing here as well as to Her Majesty's Government to omit to say that minister has in all his proceedings carefully respected the sovereignty and the rights of the United States, and thatt he arrangements which have been made by him with the approval of this Government for communication between the British Government and its consuls through the national vessels of Great Britain entering blockaded ports without carrying passengers or private letters seems to forbid any necurrence of such proceedings as those which have brought about these explanations.

You will inform Earl Russell that the exequatur of Mr. Bunch has been withdrawn because his services as consul are not agreeable to this Government and that the consular privileges thus taken from him will be cheerfully allowed to any successor whom Her Majesty's Government may appoint against whom no grave personal objections shall exist. It is a source of satisfaction to the President to reflect that the proceed-