After consultation with Mr. Morse I concluded to advise Captain Nelson to consult counsel on the expediency of taking measues to recover his property retained by the master of the Nashville, and thus endeavor to bring the question of his authority before the courts. I have reason to believe that steps are to be taken to-day in that direction. I presume that it will be necessary to assume whatever expense may be incurred in this process.

* * * *

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

CHARLES FRANCIS ADAMS.

[Inclosure to sub-inclosure Numbers 2.]

I, William Henry Nelson, of the city of New York, in the United States of American master mariner, do solemnly, sincerely and truly swear that I sailed from the said city of New York on the 20th day of September last as master of and in the ship Harvey Birch, of New York a ship owned and registered in New York in conformity with the laws of the United Staes, bound for the port of Havre de Grace, in France with a cargo consisting of wheat. About the 9th day of October I arrived at Havre and having discharged the cargo of my ship and ballasted her I sailed in her again for the portof New York on the 16th day of NOvember, first having received the register crew list, articles and all papers belonging to the ship in proper form from the U. S. consul there. On the morningof Tuesday, the 19th instant the ship then being in about latitude 49 06 north, longitude 9 52 west, a steamer was made out bearing for the Harvey Birch which on getting nearer was found to be an armed vessle and hoisted at the peak the flag of the so-called Confederate States, and when within hailing distance a person on board who I learned was the captain hailed my ship saying, "Haul down your colors and heave the ship to" - the ensign of the United States being at this time flying at the peak of my vessle; this order was complied with and I then received the order, "Lower yoru boat and come on board," which I also complied with, taking my ship's papers withme. After arriving on board the steamer I was introduced by the first lieutenant by name Fauntleroy, to Captain Pegram as commander of the C. S. steamer Nashville, to whom I produced all the papers of my ship for examination to show that I was engaged in legal trade. Captain pegram took the ship's papers-he did not return them and still holds them-and then told me that he should hold me a prisoner of war by authority of the Confederate States. He then told me I might go on board my ship, and I was ordered to send my crew on board the steamer as quickly as possible. I returned to my ship and at once made preparations to leave her, but orders were repeatedly given from the steamer to hurry up and sufficient time was not given to enable either myself or my crew to get our effects out of the ship.

The second lieutenant with other officers came on board the ship and took charge of her, and orders were given to seize fresh stores,&., and in cosequence thereof all the fresh meat, poultry, pigs, eggs, and butter were taken out and put on board the steamer and especially it was ordered that all the oil, tea, coffee, and sugar should be put on boared the steamer, which was done. When all this had been accomplished the crew left the ship by order of the second lieutenant, I being last on board, leaving the second lieutenant and his boat's crew in charge of the ship. After arriving on board the steamer we saw that