expected by Mr. Seward to be a relief in the relations between the United States and other countries, on the contrary was, at the beginning, attended with new causes of uneasiness. He had received complaints from his consul in behalf of British subjects in New Orleans of harsh proceedings by General butler. He had not time fully to digest them, but he called to see if the Secretary of State would not think it worth while to have the military authorities at New Orleans cautioned against exercising any doubtful severities, which would produce irritation and aggravate what had already happened.

Lord Lyons especially said that it had been reported to him that a British subject had been sent to Fort Jackson, which is understood to be a very unhealthy place at this season, and he trusted the military authorities would be requested not to expose the health of such prisoners to unnecessary risks. Mr. Seward replied that he cordially appreciated the value of Lord Lyons" suggestions, and that he would submit to the Secretary of War the expediency of giving instructions to General Butler of the character suggested, and he felt authorized to say at once that they would be adopted.

[Inclosure Numbers 3.] DEPARTMENT OF STATE, Washington, May 31, 1862.

MEMORANDUM.]

Mr. Mercier called upon Mr. Seward informally to speak of some irritation among the consuls at New Orleans, resulting from irregularities and severities reported to have been practiced by Major-General Butler toward them on the occasion of his taking military possession of that city. Mr. Mercier said that he had not called now to present any complaint on the part of the French consul, and explanations which had been already made by General Butler perhaps would relieve him of any necessity for doing so.

Mr. Seward said that he had seen newspaper reports of the occurrence at New Orleans, but as yet had received nothing official either from any representative of any foreign Government or from the War Department. But he had had no hesitation about interposing in the matter at once.

Yesterday, after a brief conversation with Lord Lyons, when the subject was first brought to his notice, he had procured orders from the Secretary of War to Major-General Butler directing him to refrain from practicing any severities or strictness of doubtful right toward any consul or subject of any foreign power, which orders had been already transmitted.

To-day it had been decided to devolve the civil government of New Orleans upon a provisional military Governor, who would proceed with the utmost dispatch to New Orleans and relieve General Butler of civil administration there.

Mr. Seward said that he had already appointed a commissioner for the State Department, of distinguished ability and character, to proceed to New Orleans as speedily as possible and inquire and take evidence of the transactions which have occurred there in which any complaint of violation of consular rights, privileges, and courtesies has arisen under the administration of General Butler, to redress any such clear violation which he may ascertain to have occurred, by making restitution, and in every other case to make full report to the Secretary of State for his decision thereupon.