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instances on record of our having exchanged prisoners even with the Algerine pirates, why should it not be done for the advantage of brave and loyal men, who are guilty of no other crime than that of faith fully defending their country. Secretary Welles on naval Precedents. Navy Department, Nov. 30, 1861. Copt. Chas. Wilkes, Commanding the U. S. Steamer San Jacinto: Sir: I congratulate you on your safe arrival, and especially do I congratulate you on the great public service you hav these public enemies on board, further than to say that the forbearance exercised in this instance must not be permitted to constitute a precedent here after for infractions of neutral obligations. I am, respectfully,Your obedient servant, Gideon Welles. Trade with the South. Upon the strength of permits issued, or at least-promised by Government some time since, certain parties in the North, among them Senator Simmons, fitted out vessels to trade with the South, exchanging articles