War of the Rebellion: Serial 122 Page 0446 CORRESPONDENCE, ETC.

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Enfield rifles in England, which I think they ship from here to the West Indies or Mexico, and then take their chance of getting them into Texas by the aid of small vessels across to the American coast on the Gulf of Mexico, or on the Atlantic coast of Florida and Georgia.

My impression is that Bahia Honda, in the Florida Reef, where they can run inside the reef along the coast, is a favorable point for them to run to, as well as to Fernandina, Jacksonville, and other ports on the Saint John's River. I repeat, I have good reason to believe they are making small shipments of war materials to the West Indies.

I received some days since the accompanying communication from a reliable American who has been residing here for the last three or four years. The minutes of conversation may be of slight importance, but I think I ought to forward them.

A part of the guns he alludes to are no doubt the New York State purchase, made through their agent, Mr. Schuyler, and the 20,000 spoken of must be Colt's contract, the most of which is for gun barrels, locks, and gun mountings, to be put together in the United States. The "mysterious order" I think is from New Orleans. It is for 10,000, or such is the report, and it cannot be completed for six months to come, if it is ever done.

The negotiations of Southern agents for the steamers Victoria and Adelaide are at least suspended, if not entirely abandoned, and the steamer building at Stockton-on-the-Tees for the Charleston house is not yet launched.

Secessionists here are in correspondence with a Mr. Amedee Simonin, commission merchant, New York. May he not be one of their means of communication South?

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

F. H. MORSE.

[Sub-inclosure.]

13 WESTBOURNE CRESCENT, HYDE PARK, W.,

London, July 12, 1861.

F. H. MORSE, Esq.,

U. S. Consul:

DEAR SIR: A few days since a conversation took place in my presence, which appears to me important enough to communicate to you.

I had some business with Doctor Holland, of 35 Pall Mall, and while I was there Mr. Forbes Campbell, of 45 Dover street, [sic] St. James street, came in. Since then I have learned that Mr. Campbell is the intimate friend of Lord Palmerston's secretary; that he has been employed by the Foreign Office on several important matters, and that he has the reputation among his friends of knowing generally the views and intentions of this Government. Such being the reputation of the man, his remarks appear to me the more important. He remarked that after the commencement of the troubles in the United States, about the 10th of May, Mr. Thouvenel sent a dispatch to the French consul in London, asking him to ascertain the probable effect of the troubles in the United States in the cotton market; to learn the number of bales of cotton at sea and in port; the rate of consumption; and finally to report as to the feeling of the English public on the question. The consul being absent, the vice came to Mr. Campbell for advice and assistance. Mr. Campbell obtained the fullest information on all these points, and the answer returned was as follows: That at the present rate of consumption the cotton now in port and water-borne would last until about the 1st of November, and that prices had then advanced nearly 1d. per pound, but that if the rebellion continued until September prices