Immediately on learning from Lyons details of the privateering bill, Russell had instructed the British Minister at Washington to raise objections though not formally making official protest, and had asked for explanation of the exact nature of the proposed activities of such vessels. Also he had prepared instructions to be issued by the Admiralty to British naval commanders as to their duty of preventing unwarranted interference with legitimate British commerce by privateers[1009]. The alteration of governmental policy as indicated in the arrest of the Alexandra, it might be hoped, would at least cause a suspension of the American plan, but assurances were strongly desired. Presumably Russell knew that Adams as a result of their conversations, had recommended such suspension, but at Washington, Lyons, as yet uninformed of the Alexandra action, was still much alarmed. On April 13 he reported that Seward had read to him a despatch to Adams, relative to the ships building in England, indicating that this was "a last effort to avert the evils which the present state of things had made imminent[1010]." Lyons had argued with Seward the inadvisability of sending such a despatch, since it was now known that Russell had "spoken in a satisfactory manner" about Confederate vessels, but Seward was insistent. Lyons believed there was real cause for anxiety, writing:

"A good deal of allowance must be made for the evident design of the Government and indeed of the people to intimidate England, but still there can be little doubt that the exasperation has reached such a point as to constitute a serious danger. It is fully shared by many important members of the Cabinet--nor are the men in high office exempt from the overweening idea of the naval power of the United States, which reconciles the people to the notion of a war with England. Mr. Seward for a certain time fanned the flame in order to recover his lost popularity. He is now, I believe, seriously anxious to avoid going farther. But if strong measures against England were taken up as a Party cry by the Republicans, Mr. Seward would oppose very feeble resistance to them. If no military success be obtained within a short time, it may become a Party necessity to resort to some means of producing an excitement in the country sufficient to enable the Government to enforce the Conscription Act, and to exercise the extra-legal powers conferred by the late Congress, To produce such an excitement the more ardent of the party would not hesitate to go, to the verge of a war with England. Nay there are not a few who already declare that if the South must be lost, the best mode to conceal the discomfiture of the party and of the nation, would be to go to war with England and attribute the loss of the South to English interference[1011]."

On the same day Lyons wrote, privately:

"I would rather the quarrel came, if come it must, upon some better ground for us than this question of the ships fitted out for the Confederates. The great point to be gained in my opinion, would be to prevent the ships sailing, without leading the people here to think that they had gained their point by threats[1012]."

So great was Lyons' alarm that the next day, April 14, he cipher-telegraphed Monck in Canada that trouble was brewing[1013], but soon his fears were somewhat allayed. On the seventeenth he could report that Seward's "strong" despatch to Adams was not intended for communication to Russell[1014], and on the twenty-fourth when presenting, under instructions, Russell's protest against the privateering plan he was pleased, if not surprised, to find that the "latest advices" from England and the news of the seizure of the Alexandra, had caused Seward to become very conciliatory. Lyons was assured that the plan "was for the present at rest[1015]." Apparently Seward now felt more security than did Lyons as to future British action for three days later the British Minister wrote to Vice-Admiral Milne that an American issue of letters of marque would surely come if England did not stop Southern ship-building, and he wrote in such a way as to indicate his own opinion that effective steps must be taken to prevent their escape[1016].

The whole tone and matter of Lyons' despatches to Russell show that he regarded the crisis of relations in regard to Southern ship-building in British yards as occurring in March-April, 1863. Seward became unusually friendly, even embarrassingly so, for in August he virtually forced Lyons to go on tour with him through the State of New York, thus making public demonstration of the good relations of the two Governments. This sweet harmony and mutual confidence is wholly contrary to the usual historical treatment of the Laird Rams incident, which neglects the threat of the privateering bill, regards American protests as steadily increasing in vigour, and concludes with the "threat of war" note by Adams to Russell just previous to the seizure of the Rams, in September. Previously, however, American historians have been able to use only American sources and have been at a loss to understand the privateering plan, since Seward never went beyond a vague generalization of its object in official utterances. It is the British reaction to that plan which reveals the real "threat" made and the actual crisis of the incident.

It follows therefore that the later story of the Rams requires less extended treatment than is customarily given to it. The correct understanding of this later story is the recognition that Great Britain had in April given, a pledge and performed an act which satisfied Seward and Adams that the Rams would not be permitted to escape. It was their duty nevertheless to be on guard against a British relaxation of the promise made, and the delay, up to the very last moment, in seizing the Rams, caused American anxiety and ultimately created a doubt of the sincerity of British actions.

Public opinion in England was steadily increasing against Southern ship-building. On June 9, a memorial was sent to the Foreign Office by a group of ship-owners in Liverpool, suggesting an alteration in the Foreign Enlistment Act if this were needed to prevent the issue of Southern ships, and pointing out that the "present policy" of the Government would entail a serious danger to British commerce in the future if, when England herself became a belligerent, neutral ports could be used by the enemy to build commerce destroyers[1017]. The memorial concluded that in any case it was a disgrace that British law should be so publicly infringed. To this, Hammond, under-secretary, gave the old answer that the law was adequate "provided proof can be obtained of any act done with the intent to violate it[1018]." Evidently ship-owners, as distinguished from ship-builders, were now acutely alarmed. Meanwhile attention was fixed on the trial of the Alexandra, and on June 22, a decision was rendered against the Government, but was promptly appealed.

This decision made both Northern and Southern agents anxious and the latter took steps further to becloud the status of the Rams. Rumours were spread that the vessels were in fact intended for France, and when this was disproved that they were being built for the Viceroy of Egypt. This also proved to be untrue. Finally it was declared that the real owners were certain French merchants whose purpose in contracting for such clearly warlike vessels was left in mystery, but with the intimation that Egypt was to be the ultimate purchaser. Captain Bullock had indeed made such a contract of sale to French merchants but with the proviso of resale to him, after delivery. On his part, Russell was seeking proof fully adequate to seizure, but this was difficult to obtain and such as was submitted was regarded by the law officers as inadequate. They reported that there was "no evidence capable of being presented to a court of justice." He informed Adams of this legal opinion at the moment when the latter, knowing the Rams to be nearing completion, and fearing that Russell was weakening in his earlier determination, began that series of diplomatic protests which very nearly approached a threat of war.

At Washington also anxiety was again aroused by the court's decision in the Alexandra case, and shortly after the great Northern victories at Vicksburg and Gettysburg, Seward wrote a despatch to Adams, July 11, which has been interpreted as a definite threat of war. In substance Seward wrote that he still felt confident the Government of Great Britain would find a way to nullify the Alexandra decision, but renewed, in case this did not prove true, his assertion of Northern intention to issue letters of marque, adding a phrase about the right to "pursue" Southern vessels even into neutral ports[1019]. But there are two considerations in respect to this despatch that largely negative the belligerent intent attributed to it: Seward did not read or communicate it to Lyons, as was his wont when anything serious was in mind; and he did not instruct Adams to communicate it to Russell. The latter never heard of it until the publication, in 1864, of the United States diplomatic correspondence[1020].