Mr. Seward to Mr. Adams.

No. 1669.]

Sir: I transmit to you a copy of a communication of the 23d instant, which I have received from the Secretary of the Treasury, in regard to a report that a Mr. Waterhouse has just embarked to Liverpool with a view to the disposal of eighty steam vessels belonging to the late insurgent government, which vessels are said to be at present in the above-mentioned port. I will thank you to communicate with Mr. Dudley, at Liverpool, upon the subject, although little credit is given by the department to the report in question.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Charles Francis Adams, Esq., &c., &c., &c.

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Dear Sir: Enclosed I hand you a copy of a letter just received from William James, collector of internal revenue at Richmond, Va., and I respectfully suggest that the substance thereof be communicated either to Mr. Adams or to the United States consul at Liverpool.

I am, very truly, yours,

H. McCULLOCH, Secretary.

Hon. William H. Seward, Secretary of State.

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Sir: I have the honor to forward a report, which appears to me to be true, that a Mr. Waterhouse has just embarked to Liverpool, England, in order to dispose of eighty (80) steam vessels belonging to the so-called southern confederacy, which vessels are said to be lying in that port.

Being impelled by a sense of duty to give this information, that your action may be taken in the case,

Very respectfully, your obedient servant,

WM. JAMES, Collector.

Hon. Hugh McCulloch, Secretary of the Treasury U. S.