DEPARTMENT OF STATE, Washington, March 4, 1862.

Right Honorable Lord LYONS, &c.

MY LORD: I have the honor to acknowledge the receipt of your note of the 1st instant relative to the recovery of the sum of $220 which is alleged to have been taken from John C. Brain when arrested by the military authorities in Indiana last year.

In reply I have the honor to state that the Secretary of War to whom the matter was referred informs this Department that he has directed an inquiry to be set on foot in the proper quarter regarding the facts of the case, and also the return of the money if so taken from Mr. Brain.

I have the honor to be, with high consideration, your lordship's obedient servant,

WILLIAM H. SEWARD.

WAR DEPARTMENT, Washington, March 4, 1862.

Lieutenant Colonel WILLIAM H. BLAKE,

Ninth Indiana Regiment, Fetterman, Va.

COLONEL: Lord Lyons has written to the Secretary of State in behalf of John C. Brain, who says he was arrested at Camp Colfax, ind., and that by direction of a Captain Blake a private soldier took from him the sum of $220 in gold and that no akcnowledgment was given to him for the money. As you are the only officer apperaring on the roll of that regiment by the name of Blake it is peresumed that Mr. brain has mistaken your rank and that you are the officer referred to as having given orders to the private to take the money.

I will thank you to report to this Department with as little delay as possible the facts and circumstances connected with the arrest of Mr. John C. Brain, and if the money was taken all alleged you will plese remit the sume so taken therewith.

By order of the Secretary of War:

L. THOMAS,

Adjutant-General.

DEPARTMENT OF STATE, Washington, March 28, 1862.

Right Honorable Lord LYONS, &c.

MY LORD: Adverting to your note of the 1st instant relative to the recovery of the sum of $220 alleged to have been taken from Mr. John C. Brain when arrested by the military authorities in Indiana last year and to my reply, I now have the honor to inlcose to you for your information the copy of a statement in writing o the subject which was made under the instructions of Adjutant-General Thomas to E. D. Webster, esq., of this Department, by Lieutenant Colonel William H. Blake, of the Ninth Indiana Volunteers, and a copy of the letter from Captain Copp referred to in that statement.

I avail myself of this opportunity to renew to your lordship the assurance of my high consideration.

WILLIAM H. SEWARD.

[Inclosure Numbers 1.]

CAMP ANDREW JACKSON,

Near Nashville, Tenn., Marchh 14, 1862.

E. D. WESBTER, Esq.

SIR: I am directed by Adjutant-General Thomas to make to you a statement of facts in my possession respecting the arrest of Mr. John