copy of the correspondence between Count Rechberg, Mr. Hulsemann and myself relating to the case subject to be transmitted to you.

These papers will give you all that is understood here of our relations with foreign powers at the present moment, and will enable you perhaps to anticipate the future as well as we can.

Our arms continue to be steadily successful, and when we shall have completed our finicial relations I trust that the cause of the Union will become as hopeful as it is just.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

LEGATION OF THE UNITED STATES,

London, January 10, 1862.

Honorable WILLIMA H. SEWARD, Secretary of State, Washington.

SIR: Though not yet favored with any information from the Department respecting the course of the proceedings between the two Governments in regard to the case of the Trent at Washington I am bound to believe from what I see in the newspapers at the difference has been settled by the release of the captives.

It is with great satisfaction that I gather from the abstract of the correspondence which has been communicated by telegraph that the Government has adhered to the principle for which it has so long contended and in the recognition of which the whole civilized world will now concur. Considering the remarkable unanimity which has been shown in the judgment of the merits of this case throughout Europe the step that has been taken will meet with very general approbation.

The satisfaction expressed in this city everywhere, excepting among the small society of the Confederated emissaries and the party which habitually looks to war as an attractive pastime, stand in remarkable contrast with the feelings which animated almost everybody only six weeks ago. Not many, however, have yet opened their eyes to the conviction of the fact that the apparent victory of Great Britain involves in reality the necessary surrender of one of her odious assumptions of power over the ocean. In this light it is not difficult to comprehend the polich sacrifices no consistency whilst it more surely places a new ligature around the maritime supremacy of its great rival.

A consequence of this result is probably a continuance of the mission with which the Government has honored me for some time longer. But the question immediately arise how long and under what promise of future usefulness? In order to answer these it is necessary to take a brief survey of the ground we occupy. Parliament is summoned to assemble for the dispatch of business on the 6th of February. I have reason to believe that arrangements predicated upon a particular contingency had been made to bring on an early discussion of the American difficulty with a view to press a direct interference with the blocade and a recognition of the Confederated States. I regret to learn that the first of these measures had found in some quarters from which I had hoped better things. The only question to consider is whether the settlement of the case of the Trent will have much effect in altering the presentation of the programme or in preventing its adoption.

It is too early to determine what may be the degree of the reaction in populr opinion but there is no reason to doubt it will be considerable. Busines which the position of the ministry has been so much fortified by