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You will observe, from the enclosed copy of an Order in Council bearing date the 23d of June, 1812, that the Orders in Council of the 7th of January, 1807, and the 26th of 'April, 1809, ceased to exist nearly at the same time that the government of the U. States declared war against his majesty.

Immediately on the receipt of this declaration in London, the Order in Council, of which a copy is herewith enclosed to you, was issued on the 31st day of July, for the embargo and detention of all American ships.

Under these circumstances, I am commanded to propose to your government the immediate cessation of hostilities between the two countries and I shall be most happy to be the instrument of bringing about a reconciliation, so interesting and beneficial to America, and G. Britain.

I therefore propose to you, that the government of the IT. Statesqf Americashall instantly recall their letters of marque and reprisal against British ships, together with all orders and instructions for any acts of hostility whatever against the territories of his majesty, or the persons or property of his subjects; with the understanding, that, immediately on my receiving from you an official assurance to that effect, I shall instruct all the officers under my command to desist from corresponding measures of war, against the ships and property of the U. States, and that I shall transmit without delay, corresponding intelligence to Ihe several parts of the world where hostilities may have commenced. The British commanders in which, will be required to discontinue, hostilities from the receipt of such notice.

Should the American government accede to the above proposal for terminating hostilities, I am authorised to arrange with you as to the revocation of the laws which interdict the commerce and ships of war of4G. Britain from the harbors and waters of the U. States; in the default of which revocation within such reasonable period as may be agreed upon, you will observe by the order of the 23d June, the Orders in Council of January, 1807, and April, 1809, are to be revived.*

The officer who conveys this letter to the American coast has received my orders to put to sea immediately upon the delivering of this dispatch t,o the competent authority; and I earnestly recommend that no time may be lost in com* municating to me the decision of your government, persuaded as I feel that it cannot but be of a nature to lead to a speedy termination of the present differences.

The flag of truce which you may charge with your reply will find one of my cruisers at Sandy Hook, ten days after the landing of this despatch, which 1 have directed to call there with a flag of truce for that purpose.

I have honor to be, &c.

JOHN BORLASE WARREN.

Mr. Monroe to sir J. B. Warren.
Department Of State, Oct. 27,1812.

SIR—I have had the honor to receive your letter of the 30th ult. and to submit it to the consideration of the President^

It appears that you are authorised to propose a cessation of hostilities between the U. States and G. Britain, on the ground of the repeal of the Orders in Council, and in case the proposition is acceded to, to take measures in concert, with this government, to carry it into complete effect on both sides.

You state, also that you have it in charge, in that event, to enter into an arrangement with the government of the U. States for the repeal of the laws which interdict the ships of war and the commerce of G. Britain from the harbors and waters of the U. States. And you intimate, that if the proposition is not acceded to, the Orders in Council (repealed conditionally by that of the 23d of June last) will be revived against the commerce of the U. States.

I am instructed to inform you, that it will be very satisfactory to the President to meet the British government in such arrangements as may terminate without delay the hostilities which now exist between the U. States and G.Britain, on conditions honorable to both nations.

At the moment of the declaration of war, the President gave a signal proof of the attachment of the IT. States to peace. Instructions were given at that early period to the late charge d'affairs of the U. States at London, to propose to the British government an armistice on conditions which it was presumed would have been satisfactory. It has been seen with regret that the propositions made by Mr. Monroe, particularly in regard to the important interest of impressment, was rejected, and that none was offered through that channel, as a basis on which hostilities might cease.

As your government has authorised you to propose a cesr sation of hostilities, and is doubtless aware of the important and salutary effect which a satisfactory adjustment of this difference cannot fail to have on the future relations between the two countries, I indulge the hope that it has, ere this, given you full power tor the purpose. Experience has sufficiently evinced that no peace can be durable unless this object is provided for. It is presumed, therefore, that it is equally the interest of both countries to adjust it at this time.

Without further discussing questions of right, the President is desirous to provide a remedy for the evils complained of on both sides. The claim of the British government is to take from the merchant vessels of other countries British subjects. In the practice, the commanders of the British ships of war often take from the merchant vessels of the U. States, American citizens. If the U. States prohibit the employment of British subjects in their service, and inforce the prohibition of suitable regulations and penalties, the motives for the practice is taken away. It is in this mode that the President is willing to accommodate this important controversy with the British government, and it cannot be conceived on what ground the arrangement can be refused,

A suspension of the practice of impressment, pending the armistice, seems to be a necessary consequence. It cannot be presumed, while the parties are engaged in a negociation to adjust amicably this important difference, that the U. States would admit the right or acquiesce in the practice of the opposite party; or that G. Britain -would be unwilling to restrain her cruizers from a practice which would have the strongest tendency to defeat the negociation, It is presumable that both parties would enter into the negociation with a sincere desire to give it effect. For this purpose it is necessary that a clear and distinct understanding be first obtained between them, of the accommodation which each is prepared to make. If the British government is willing to suspend the practice of impressment from American vessels, on consideration that the U. States wilt exclude British seamen from their service, the regulations by which this compromise sho.uki be carried into effect would be solely the object of. negociation. The armistice would be of short duration. If the parties agreed, peace would be .the result. If the negociatiort failed, each would be restored to its former state, and to all its pretensions, by recurring to war.

Lord Castlereagh, in his note to Mr. Russell, seems to have supposed, that had the British government accepted the propositions made to it, G. Britain would have suspended immediately the exercise of a right, on the mere assurance of this government that a law would be afterwards passed to prohibit the employment of British seamen in the service of the i.\ States, and that G. Britain would have no agency in the regulation to give effect to that proposition. Such an idea was not in the contemplation of this government, nor is to be reasonably inferred from Mr. Russell'a note; lest, however, by possibility such an inference might be drawn from instructions to Mr. Russell, and anxious that there should be no misunderstanding in tlie case, sub-, sequent instructions were given to Mr. Russell with a. view to obviate every objection of the kind alluded to. As they bear date on 37 th July, and were forwacded by the British packet Ait Ilea, it is more than probable that they may have been received and acted on. . I am happy to explain to you thus fully the views of my government on this important subject. The President de~ sires that the war which exists between our countries should be terminated on such conditions as may secure a solid, andidurable peace. To accomplish this great object it is necessary that the interest of impressment be satisfactorily arranged. He is willing that G. Britain should be secured again si the evils of which she complains. He seeks on the other hand that the citizens of .the U. States should be protected against a practice, which, while it degrades the nation, deprives them of their rights as freemen, takes them by force, from their families auil their country into a for-. eign service, to right the battles of a foreign power, perhaps against their own kindred and country. . . . - 1 abstain from entering, in this eouimuncntion, into other grounds of difference. The Ordersin Council having been repealed, (with a reservation not impairing a corresponding.

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right on the part of the U. States) and no illegal "blockades revived or instituted in their stead* and" sin.under-standing being obtained on the subject of impressment, in theinode herein proposed* the President is willing" to agree to a cessation-of hostilities, with a view-to arrange by treaty, in a more distinct and ample manner, and to the satisfaction of both parties, every other subject of controversy.

I will only add that if there be no objection to an accommodation of the difference relating to impressment, in the mode proposed, other thatr the suspension of the British claim to impressment during the armistice, there Can be none to proceeding; without the armistice, to an .immediate discussion and arrangement of an article on that subject. This great question being satisfactorily adjusted, the way -will be open either for an armistice or any Other course leading most conveniently and expeditiously to a general pacification. 1 have the honor to be,8cc.

'JAMES MONROE.'

BRITISH CHALLENGE.

Ignorant of the fate of the blustering Dacres, sir James Yeo, of the Southampton frigate, sent the following polite challenge to Capt. 1). Porter, commander of the frigate Essex. The king, ' the fountain of honor,' dubbed sir James, a knight; we wished Capt. Porter the pleasure of drubbing him into a gentleman.

• A passenger of the brig Lyon from Havanna to NewYork, captured by the frigate Southampton, sir James Yeo, commander, is requested by sir James Yeo, to present his compliments to Capt Poller, commander of the American frigate Essex, would be glad to have a tete-a-tete any where between the capes of Delaware and the Havanna, when he -would have the pleasure to break his own sword over his damned head and put him down forward in irons.'

AMERICAN ACCEPTANCE.

Capt. Porter, of the U. States frigate Essex, presents his compliments to sir James Yeo, commanding his Bri* tannic majesty's frigate Southampton, and accepts with" pleasure his polite invitation. If agreeable to s?r James, Capt. Porter would prefer meeting near the Delaware; where, Capt. P. pledges his honor to sir James, that nc other American vessel shall interrupt their tete-a-tete.

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