Lord Lyons to Lord Russell.

Washington, Nov. 29, 1861.

The Consuls in the South are crying out for ships again. This is the solution for every difficulty in the Consular mind, as my experience in the Mediterranean taught me long ago; though what the ships were to do, except fire a salute in honour of the Consul, I could never discover. I had some trouble, as you may perhaps recollect, in checking the Consular ardour to send ships up the Potomac to my own relief last spring. Sir A. Milne objects strongly to sending ships to the Southern Ports, unless with a specific object and definite instructions, and I think he is quite right. It is quite true that a town may be bombarded some day by the United States forces: that British subjects may have their throats cut by the negroes in a servile insurrection, or be tarred and feathered by a Vigilance Committee. But we cannot keep a squadron at every point to protect them, and I do not know what points are particularly threatened.

I shall do all in my power to keep things smooth until I receive your orders about the Trent affair. This can in any event do no harm. There is a story here that, in a recent hypothetical case, the Law Officers of the Crown decided in favour of the right of the United States to take Mason and Slidell out of a British ship or postal packet. I do not know whether Mr. Adams has written this to Mr. Seward, but I am inclined to think that the Government believe it to be true.

The uncertainty as to the opinion of the Law Officers of the Crown rendered it all the more necessary to keep quiet and wait for orders, and the situation was rendered a little easier on account of there being no mention of the Trent in the Presidential Message. Mr. Galt, the Canadian Finance Minister, happened to be in Washington at the beginning of December, and had an interesting conversation with President Lincoln, who disclaimed for himself and the Cabinet all thought of aggression against Canada. The President also stated that he himself had been opposed to Mr. Seward's circular putting the coasts into a state of defence, but had been overruled. On being asked what the recommendation to make fortifications and depôts of arms on the Great Lakes meant, he only said, 'We must say something to satisfy the people.' About the Mason and Slidell case, he remarked, 'Oh, that'll be got along with!' He further volunteered the observation that if he could not within a reasonable period get hold of Virginia, Kentucky, and Missouri, and keep Maryland, he should tell the American people to give up the contest, for it would be 'too big' for them.

The impression produced upon Mr. Galt was that President Lincoln himself was honest and sincere in what he said, but that he was very far from being master of his Cabinet. Mr. Galt returned to Canada, bearing a letter to Lord Monck, the new Governor-General, urging the necessity of preparing for defence, and also an ingenious arrangement for warning the Canadian Government in case of emergency, without having recourse to cypher telegrams, which might arouse the suspicions of the Americans.

On December 13, intelligence was received in America of the arrival in England of the first news of the capture of Mason and Slidell, the submarine cable, of course, not being at that time in operation. A great fall in all securities immediately took place.

At midnight on the 18th, the Queen's messenger bearing the fateful despatches from Lord Russell arrived at the British Legation at Washington.

The principal despatch, dated November 30, 1861, had been drawn up after consideration by the Cabinet, and the purport of it was that the United States Government were informed that International Law and the rights of Great Britain had been violated, that H.M. Government trusted that the act would be disavowed, the prisoners set free and restored to British protection. Should this demand be refused, Lord Lyons was instructed to leave Washington.

The draft of this despatch was submitted to the Queen, and, in the opinion of the Prince Consort, the wording was of somewhat too peremptory a character. The suggestions of the Prince Consort were embodied in a memorandum quoted by Sir Theodore Martin in his book, and the object of them was to remove any expressions in the despatch which might unduly affront a sensitive nation, and at the same time enable it to retreat from a false position without loss of credit or dignity. The Prince was suffering from a mortal illness at the time, and was dead within a fortnight; it was the last occasion upon which he took any part in public affairs, but never, probably, did he render a greater service to the country of his adoption than when he persuaded the Cabinet to modify the wording of this momentous despatch. As amended in accordance with the Prince Consort's suggestions, the crucial passages ran as follows:—