[Inclosure Numbers 4.] DEPARTMENT OF STATE, Washington, June 5, 1862.

Mr. ROEST VAN LIMBURG, &C.,

SIR: In regard to the papers which you informally left with me yesterday while waiting for the instructions of your Government, I have the honor to say that the President deeply regrets the conflict between the military authorities and the consulate of the Netherlands which occurred at New Orleans just at the moment when preparations were being made for the restorations of order and the renewal of commerce.

The statements of the transaction which have been received show that Major-General Butler was informed that a very large sum of money belonging to insurgent enemies was lying secreted in a certain liquor store in the city, and he very properly sent a military guard to search the premises indicated. The general says that it was reported to him that Mr. Couturier,w ho was found there, denied all knowledge of any such deposits, and claimed that all the property in the building belonged to himself personally. These reported assertions of Mr. Couturier of course determined the general to proceed with the search. Mr. Counturie at this stage of the matter avowed himself to be the consul of the Netherlands, and pointed at the flag which he had raised over the door. He with helped all explanation, however, concerning the property for which search had been ordered, and protested against any examination whatever of the premises on the ground of the immunities of the consulate. He was thereupon detained; the keys of a vault were taken from his person; the vault was opened and there was found therein $800,000 in specie and $18,000 of bonds or evidences of debt, coordinates and plates of the Citizens" Bank, the consular commission, and exequatur, and various title deeds and other private papers. All the property and papers thus taken were removed and placed for safe-keeping in the U. S. mint, and the transaction was reported by Major-General Butler to the Secretary of War.

After the affair had thus been ended the consul made written protests, in which he insisted that his detention and the search were illegal, and that the specie and bonds were lawful deposits belonging to Hope & Co., subjects of the King of the Netherlands, and an agent of Hope & Co. has also protested to the same effect and demanded that the specie and bonds shall be delivered to them. The consul further denied that he had at any time claimed that the specie and bonds were his own. Major-General Butler still insists that the deposits were fraudulent and treasonable and were made with the connivance of the consul.

The President does not doubt that in view of the military necessity which manifestly existed for the most vigorous and energetic proceedings in restoring law, order, and peace to a city that had been for fifteen months the scene of insurrection, anarchy, and ruin, and in the absence of all lawful civil authority there, the consul of the Netherlands ought, in the first instance, to have submitted to the general the explanations which he afterward made in his protest, with the evidences which he possessed to show that the deposits were legitimate. If he had done this and then referred Major-General Butler to yourself, or to this Government, the President now thinks that it would have been the duty of the general to have awaited special instructions from the Secretary of War. The consul, however, preferred to stand silent and to insist on official immunities, the extent of