[Extracts.]

Mr. Adams to Mr. Seward

No. 889.]

Sir: I have to acknowledge the reception of despatches from the department numbered from 1269 to 1277, inclusive.

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The news of the fall of Charleston has made a profound impression here. It is greater, perhaps, than any other event of the war.

Meanwhile, the alarmist policy of which I have made mention in former despatches has been carried on by the Times this week to such an extent as to affect the funds unfavorably, every day, and to check commercial operations of all sorts. Yesterday only was there some appearance as if it had been carried far enough. What the meaning of this is I am at a loss to determine. Two letters from the Richmond correspondent of that paper have appeared, both of them making no disguise of the desperate condition of the rebels, even before the occurrence of their latest reverses. I am informed that private letters from the same source are even more unequivocal. Whether these are also intended to warn people here of the hostile direction which their disappointment at not obtaining direct aid may be likely to take in case of their return to the Union, I can only conjecture. However that may be, the result of the course taken by this press has been to inspire a general belief in the possibility of that event, and a corresponding dread of its consequences. Some well-informed persons attribute this tone merely to a desire to force large estimates for the army and navy through a reluctant Parliament. Others consider it as intended only to magnify the importance of retaining the first minister in power in the contingency of the pending dissolution of Parliament.

Although my experience has not hitherto impressed me with a very exalted idea of the principles moving the machinery of statesmanship in this kingdom just now, 1 can scarcely credit that they should have sunk so low. Yet I find it impossible not to suspect that all this springs from some form or other of prompting in high quarters. I do not believe it to be suggested from the ministry, as a whole, or any considerable number of its members. Here I leave the subject, repeating only the remark made in former despatches, that it appears to me to require careful treatment on our side. However strong may be your statement of our case, embraced in despatch No. 1274—and I entirely coincide in the justice of the argument—to press it there, at this moment, would be only playing into the hands of the mischief-makers, and disarming our own friends. I am not at all sure that the upshot of the matter may not be an endeavor to prepare the public mind for some form of combination with France for mutual defence. This could be brought about only by throwing it into just such a panic as appears to be now prevailing. I perceive, by the newspapers, that something of the same kind is taking place in France.

I have the honor to be, sir, your obedient servant,

CHARLES FRANCIS ADAMS.

Hon. William H. Seward, Secretary of State, Washington, D. C.