"ardent spirits" are declared contraband of war, and their shipment prohibited; but wines, not coming properly under this head, are permitted to be shipped. I am, very respectfully, your obedient servant, Hon. WILLIAM H. SEWARD, S. P. CHASE, Secretary of the Treasury. Secretary of State. [CIRCULAR.] Mr. Chase to collectors of customs. TREASURY DEPARTMENT, May 23, 1862. SIR: In pursuance of the provisions of the proclamation of the President, modifying the blockade of the ports of Beaufort, Port Royal, and New Orleans, and of the regulations of the Secretary of the Treasury relating to trade with those ports, no articles contraband of war will be permitted to enter at either of said ports, and you will accordingly refuse clearance to vessels bound for those ports, or either of them, with any such articles on board. Until further instructed, you will regard as contraband of war the following articles, viz: cannons, mortars, fire-arms, pistols, bombs, grenades, firelocks, flints, matches, powder, saltpetre, balls, bullets, pikes, swords, sulphur, helmets or boarding-caps, sword-belts, saddles and bridles, (always excepting the quantity of the said articles which may be necessary for the defence of the ship and of those who compose the crew,) cartridge-bag material, percussion and other caps, clothing adapted for uniforms, rosin, sail-cloth of all kinds, hemp and cordage, masts, ship timber, tar and pitch, ardent spirits, military persons in the service of the enemy, despatches of the enemy, and articles of like character with those specially enumerated. You will also refuse clearances to all vessels which, whatever the ostensible destination, are believed by you, on satisfactory grounds, to be intended for ports or places in possession or under control of insurgents against the United States, or that there is imminent danger that the goods, wares, or merchandise, of whatever description, laden on such vessels, will fall into the possession or under the control of such insurgents; and in all cases where, in your judgment, there is ground for apprehension that any goods, wares, or merchandise, shipped at your port, will be used, in any way, for the aid of the insurgents or the insurrection, you will require substantial security to be given that such goods, wares, or merchandise, shall not be transported to any place under insurrectionary control, and shall not, in any way, be used to give aid or comfort to such insurgents. You will be especially careful upon application for clearances to require bonds, with sufficient sureties, conditioned for fulfilling faithfully all the conditions imposed by law or departmental regulations, from shippers of the following articles to the ports opened, or to any other ports from which they may easily be, and are probably intended to be, re-shipped in aid of the existing insurrection, namely: liquors of all kinds other than ardent spirits, coals, iron, lead, copper, tin, brass, telegraphic instruments, wire, porous cups, platina, sulphuric acid, zinc, and all other telegraphic materials, marine engines, screw propellers, paddle-wheels, cylinders, cranks, shafts, boilers, tubes for boilers, fire-bars, and every article or other component part of an engine or boiler, or any article whatever which is, can or may become applicable for the manufacture of marine machinery, or for the armor of vessels. I am, very respectfully, HIRAM BARNEY, Esq., Collector, &c., New York. S. P. CHASE, Secretary of the Treasury. The foregoing circular letter has been sent to collectors of the customs for their information and guidance. Mr. Mercier to Mr. Seward.-(July 31, 1862.) [Translation.] Memorandum. The consul of France at New Orleans, acting in conformity with the French ordinances on the subject, has received, at recent times, a certain number of deposits of specie made with him by French subjects. He could not fail, in conformity always with such ordinances, to exhaust, before receiving said deposits, all possible means of information for attaining the fullest and most circumstantial knowledge about the character and origin of these deposits. Those means being exhausted, he would be exposed to severe rebuke from his government by declining to receive those deposits in his chancery, which would have been equivalent to refusal of protection to them, and, in effect, the exceptional circumstances in which New Orleans is at present temporarily placed sufficiently explain why some Frenchmen ought to wish to place their valuables in a sure deposit, and under the protection of the flag of their country. Mr. Mejan has been called before General Butler, who has interrogated him on the subject of these deposits. Without denying their existence, he has refused to give any details in respect of them, because he did not recognize what right General Butler could have to interrogate him, and because, in complying with his request, he would have been faithless to the trust which his countrymen had placed in him, and would place himself in contravention of the precise terms of the consular convention of 1853; those especially of article 3. according to which the papers in the consular chanceries cannot in any case be searched. General Butler then told him that, if he would not give his word of honor not to allow any deposit of any importance to be taken away, he would send a guard to watch the consulate. In this dilemma Mr. Mejan, desiring to continue to act in the most conciliatory spirit, but forgetting that he was subscribing to an obligation which he had no right to assume, and thereby placing himself in a most delicate position towards his countrymen, whose funds he had no power to detain when they should come to demand them again, gave this word of honor. Mr. Mejan has, in a later communication, expressed to General Butler his regret at having pledged his word. It is of consequence that he should be promptly relieved, and Mr. Reverdy Johnson could receive, in this particular, instructions from the government of the United States, and end in a spirit of conciliation an incidental matter from which very serious difficulties might result to the consul of France in relations with his countrymen, and entanglements to be regretted with the authorities at New Orleans. Viscount Treilhard to Mr. Seward. [Translation.] LEGATION OF FRANCE IN THE UNITED STATES, Washington, August 8, 1862. The Viscount Treilhard presents his compliments to Mr. Seward, and has the honor to communicate to him the papers, hereunto annexed, referring to a Frenchman whose funds are held in custody in consequence of a conflict of authority between Mr. Reverdy Johnson and General Butler. Count Mejan to Mr. Mercier. [Translation.] CONSULATE OF FRANCE AT NEW ORLEANS, New Orleans, July 24, 1862. Mr. MINISTER: I have the honor to send you the two papers, enclosed herewith, relating to the affair of Mr. Edward Dupasseur. Mr. Reverdy Johnson, to whom this affair had been submitted, had given the opinion that the funds deposited were the legitimate property of Mr. Dupasseur, and should be restored to him; but this withdrawal was again prevented by a formal order from General Butler, who has refused to give a reason therefor. This new decision in the withdrawal of the funds belonging to Mr. Dupasseur may occasion to him considerable injury, in consequence of the loss of interest, and of the possible depreciation of specie, both in gold and silver. Be pleased, Mr. Minister, to accept the assurances of my high consideration, COUNT MEJAN. Count H. MERcier, Envoy Ex. and Min. Plenipo. of France in the United States, Washington. P. S.-The funds referred to belong to Messrs. Edward Dupasseur & Co. and not to Mr. Dupasseur alone. Mr. Dupasseur & Co. to Count Mejan. [Translation.] NEW ORLEANS, July 24, 1862. SIR: On the 14th of April last we purchased of the Citizens' Bank an amount of coin amounting to $716,196, which we settled for by our drafts, at four months' sight, upon sundry bankers in Paris, and upon our house in Havre. With your consent we deposited this coin at the consulate of France, and carried the bill of sale of the bank, receipted for by the cashier, to be sworn to at your chancery, as French property. About one month since we were summoned, in your presence, to appear before General Butler, who interrogated us upon this purchase of coin. We replied to him that we had only intended making a purely commercial transaction, advantageous to us, because it offered us a profit of from three per cent. to four per cent.; and that, as he had appeared to suspect, this money was in no way intended to purchase arms in Europe, but really to pay the drafts which we had drawn against it. We added, furthermore, that we had never run the blockade, nor made any contract with the confederate government or with its officers. General Butler requested us, and also yourself, not to take this coin from the consulate until the arrival of the honorable Reverdy Johnson, the commissioner of the United States who was to settle the matter; to which we acceded. Last week we were interrogated by the honorable Reverdy Johnson, who made a record of our answers. We communicated to him and gave him copies of the letters addressed to our different bankers, and to our house, in relation to this transaction, and also as to its entry in our books. We added thereto a statement of facts, of which you will find, enclosed, a true copy. We went, this morning, to see Mr. Reverdy Johnson, and to ask him for his decision; he replied to us that he had no authority to release this coin here, but immediately on his arrival at Washington he would make his report, a report which, according to his own words, he left us to infer would be favorable. We asked him, at the same time, why General Butler had prevented us from withdrawing this coin from the consulate; he replied to us that he did not know. Such are the facts Mr. Consul which we take the liberty to relate to you, asking the favor of you to have the goodness to submit them to the ambassador of France at Washington. We protest, in the most solemn manner, against any insinuation or suspicion whatever which should tend to have the government of the United States to suppose that this coin is destined to any other object than the one of covering the drafts which we have drawn to meet it. We repeat that we have only intended to make a purely commercial transaction, and cannot account for the reasons which have caused its seizure. We beg you to insist with the ambassador that this coin be returned to us immediately, for not only does any delay in its transmission seriously injure our interests, but further exposes us to the dangers inherent to the state of war, and the complications which may arise therefrom. We have the honor to be, count, your very obedient servants, The Count MEJAN, Consul of France at New Orleans. Statement of Edward Dupasseur. Edward Dupasseur, one of the claimants, makes the following statement, under oath, to be submitted to the Hon. Reverdy Johnson, commissioner of the United States : On the 21st day of April last I sold to the Citizens' Bank the following drafts, viz: Three millions five hundred eighty thousand nine hundred and eighty francs, producing at the rate of exchange of five francs the dollar, seven hundred sixteen thousand one hundred and ninety-six dollars, payable in specie, which I received in payment from the bank as follows: 5,480 Mexican doubloons..... 800 South American doubloons.. Sovereigns, 20 franc pieces, 10 guilders. American gold.. Silver dollars. $85, 488 12, 320 3,388 95,000 520, 000 716, 196 Being a French subject, I deposited said coin at the office of the French consul for safe keeping, and had the invoice made to me by the bank, sworn as French property. The drafts I gave to the bank were drawn at four months' sight, and by special agreement were not to be accepted until this coin was shipped, so as to give me ample time to pay the same out of the proceeds of the coin. The operation was purely a commercial one and perfectly safe and sound for me. I expected, and still expect, when the coin is shipped, to make three to four per cent., depending, in great measure, on the price of silver in Europe at the time of the arrival of this specie. The operation, as regards to the bank, was equally advantageous: firstly, in placing their coin in Europe; secondly, in giving at the rate of exchange of this, say a handsome profit, from ten to twelve per cent., while liquidating, in the same time, their liabilities. I do further swear and declare that I have never been running the blockade or making any description of contract whatever with the confederate government, or any of its officers, for the purpose of supplying it with arms or ammunitions of war. On the contrary, I have always maintained a perfect neutrality, as I was bound to do as a French subject. I remain, very respectfully, pour copie conforme, EDWARD DUPASSEUR. Mr. Seward to Viscount Treilhard. DEPARTMENT OF STATE, Washington, August 9, 1862. Mr. Seward presents his compliments to the Viscount Treilhard, and has the honor to acknowledge the receipt of papers which accompanied his note of yesterday in regard to a Frenchman whose funds are held in custody in conse |