The Sun.
London, England, 1863-08-22 00:00:00

NEW YORK AND THE BAHAMAS.

There was published yesterday a very interesting
and important Parliamentary paper upon the in-
terference of the Federal Government with the trade
between these ports. The correspondence opens
with a letter from Lord Lyons to Earl Russell, dated
Washington, May 20, 1862, stating that he enclosed
copies of President Lincoln's Proclamation and
Treasury regulations, din virtue of which the ports
of Beaufort, Port Royal, and New Orleans were to
be opened to trade on the Ist of the following June,
and that the bleckade, as regarded those ports, was
from that date so far to cease that commercial in-
tercourse with them, except as to persons and things
and information contraband of war, might be car-
ried on subject to the laws of the United States and
to the regulations prescribed by the Secretary of
the Treasury, Mr. S. P. Chase, in his order ap-
pended to the Proclamation. Those regulations set
forth that to vessels clearing for foreign ports and
destined to the ports opened by the Proclamation,
licenses would be granted by the Consuls of the
United States upon satisfactory evidence that the
vessels so licensed should convey no persons, pro-
perty, or information contraband of war either to
or from the said ports. It is, moreover, stipulated
that the licenses thus granted should be exhibited
to the collector of the port to which the vessels
might be respectively bound immediately on arrival,
and, if required, to any officer in charge of the
blockade; that on leaving either of the said ports
every_ vessel should be required to have a clearance
from the collector of Customs, according to law,
showing that there had been no violation of the
conditions of the license, and that any violation of
those conditions should involve the forfeiture and
condemnation of the vessel and the cargo, and the
exclusion of all parties concerned from any further
privilege of entering the United States during the
war for any purpose whatsoever. The regulations
further prescribe the form of the license to be
granted, and intimate that the existing blockade
must be regarded as remaining in full force and
effect, as previously established, save as relaxed by
the Proclamation in favour of the ports particularly
mentioned.
Then follows in the correspondence a second
letter from Lord Lyons to Earl Russell, dated
Washington, May 26, in which he encloses an ex-
tract from a despatch which he had received a day
or two previously from Mr. Bayley,Governor of the
Bahama Islands, on the subject of a report which
prevailed there, that the Customs authorities at
New York had determined to prevent or impede the
exportation of ordinary supplies from that city to
the port of Nassau. Lord Lyons adds that he had
directed her Majesty's acting Consul at New York
to ascertain and let him know as soon as possible
whether there was any foundationfor such a report.
and in his next despatch he transmits a copy of a
letter written to Mr. Bayley by Messrs. Adderley
and Co., complaining that a bond had been ex-
acted from their agent by the Customs autho-
rities at New York, restricting the disposal of a
cargo of coals shipped for Nassau. The Messrs.
fidclerley, while fully admitting the right of
the American Government to make such cus-
toms' laws and regulations as they think fit,
contend that such laws and regulations should be of
general application, and that Great Britain, being
placed by international treaty on the footing of the
most favoured nations, the American Government
had no right to single out any particular British
colony and make regulations applicable to that
colony alone. The circumstances which led them to
make these remarks are stated in a letter to Mr.
Bayley, dated Nassau, New Providence, May 12,
1862.

Lord Lyons, in forwarding the letter to Earl
Russell, encloses copies of an Act of Congress ap-
proved on the 20th of May, 1862, conferring on the
Secretary of the Treasury extensive powers to lax-
_

pose restrictions on trade, with a view to prevent
supplies being carried to the S3uthern States, and
accompanies a sub3equent despatch, dated June 2,

with copies of the instructions given by the Secre.

tarp of the Treasury to refuse clearances to vessels
laden with contraband of war or .other specified ar-

ticks, as well as to vessels believed to be in fact
bound to Confederate ports, whatever might be
their ostensible destination, or which happened to
be laden with merchandise of whatever descriptions
in cases which there appeared to be imminent
danger of the cargoes coming into the possession of
the insnrgents.

Having transmitted this information, Lord Lyons
informs Earl Russell, in a despatch dated the sth of
June, that he had received the report of acting
Consul Edwards, whom he had instructed to in-

quire into the truth of the statement brought under
his notice by the Governor of the Bahamas, that

the Customs' authorities at New York had deter•

mined to prevent the exportation of supplies to
those islands.

Mr. Edwards, in the report mentioned by Lord
Lyons, states that the Customs' authorities at New

_ .
York had upon several occasions thrown serious im•
pediments in the way of shipments of coal and or•

_ -
dinary merchandise to Nassau, and had even in
some cases where the goods were already embarked,
and even cleared, refused to permit the vessel to go
to sea until the goods had been re-landed.
Then follows a despatch from Lord Lyons to
Earl Russell, containing a copy of a circular ad-
dressed to consuls of the United States by Mr.
Seward, with a list of the articles which, as contra-

band, were to be refused clearances from the ports

already named. Next in order is a despatch of June

21, from Mr. Stuart to Earl Russell, forwarding a

letter from Mr. S. P. Chase, stating that the re

strictions on coal had been enforced by collectors,
under orders from the Treasury Departmant, alike

upon domestic and foreign shipping clearing to ports
north of Cape St. Roque, on the eastern coast of
South America, and west of the 15th degree of
longitude east ; and that all restrictions to trade
would be removed when the necessity which had
rendered them imperative should cease.
A despatch of Mr. Edwards, given at length, enu-
merates several cases of recent occurrence, the date
being the 26th of June, 1862, in which British inte-
rests had suffered injuryat the hands of the Customs'
authorities at New York. Among other cases he
quotes that of the China, which arrived at New
York from Liverpool on the 18th inst., carrying a
(juantity of merchandise, in transitu for Nassau by
the Royal Mail steamer British Queen.
Matters
writing
arrived at this point, we find Mr.
Stuart
lows informally to Mr. Seward as fol-

" dear sir "Washington, July 1, 1862.
on the 20th ult.ia t ou did me the honour to forward to me
of the Treasury ha
raeript of a letter which the Secretary
certain restrictions addressed to you upon the subject of
whlch h e had thought fit to impose upon
the export of various
articlesl of commerce to Nassau and
other British possession, have duly transmitted a copy
of Mr. Chase's letter to
Majesty' Russell, and Lord Lyons had
also furnished to her Majesty's a copy of the
Act of Congress under which the Secretary of the Treasury
becomes atilhorised to exercise extraordinary powers in re-
spect to the export of merchandise
United States. Such being the Cuero:. the ports of the
anticipate any instructions which her
Majesty'sis not m y wish to
Govern.
meat may decide upon sending to me
question ; but as further interference witr Bnritl th.e subject in
sh commerce
of a most annoying and injurious nature has
sin
at New York, I trust you will permit me to subuele•toccurred
to you as contained in the accompanying copies
ofth a
e facts
de-
spatch, and its enclosures, which I have received from the
British Acting Consul at that port,and to add a few informal
observations, having reference to the question in an int •
erna-
tional point of view. It appears, then, that British vessels
lawfully trading between the port of New York and the
British West Indies are in some instances refused clearances
at the former port, and that in others they are detained and
searched, and required to reland portions of their cargoes,
after having been regularly cleared with full knowledge of
the articles on board, or to give bonds that no part of the
cargo shall at any indefinite time be used by the enemies of
the United States- According the the Treasury instructions
these proceedings are left entirely to the discretion or caprice
of the collector of customs, or to the suspicions which he
may choose to entertain as to the ultimate or indirect desti-
nation or employment of the cargo ; and that subordinate
officer is thus enabled arbitrarily to interrupt the trade be-
tween Great Britain and the United States, and even be-
tween Great Britain and her West Indian possessions, as
in the case mentioned of the merchandise brought to New
York by the Royal Mail steamer China for transshipment
on board the Royal Mail steamer British Queen. I was
not before aware that the interruption of the legitimate
trade of a neutral could be effected otherwise than in the
manner and to the extent prescribed by the international law
of blockade, an.d as Great Britain has declared herself to be
a neutral in the present state of war, and has granted belli-

gerent rights, which have been accepted and utilized by the
United States, she seems clearly entitled to claim for her
commerce exemption from any interruption not in accord-
ance with the principles which usually apply to neutrals. It
is difficult to suppose that a belligerent may without any
blockade at all, upon mere suspicion or belief, possibly ill-
founded, that certain merchandise will ultimately find its
way into the enemy's country,cut off the trade of neutrals,
either in whole or in part, from ports of which it is in un-
disturbed possession, This would be a cheap and easy sub-
stitute for an effectual blockade. When, however, such a
novel substitute is applied in its application to a particular
nation, whether on account of the geographical position of
its territories, or for other reasons, the case becomes one in
which the neutral thus invidiously injured has just grounds
of complaint, as of an unfriendly, if not of an almost hostile
act. In the particular case now reported by Mr. Edwards,
peculiar grievances are recited, which it cannot be the de-
sire of the United States Government to apply to the legiti-
mate trade carried on from the United States by British
subjects in British bottoms to British ports. The hardship
connected with the bonds required by the collector of cus-
toms is forcibly explained by Mr. Edwards that I need not
specially refer further to it. The facts stated in the protest
of the master of the William H. Clear, relative to the de-
tention and search of that vessel, show, if true, an indiscreet
zeal and want of courtesy on the part of certain subordinate
officers which you will doubtless look upon as deserving of
censure. But I venture to recommend the whole question to
your favourable attention, feeling convinced that you
wl
be anxious to redress any manifest injury
towards
Great
Britain, trusting you will remember that my present
obser-
vations are merely informal ones, intended
and having
e i
n h friendly
consideration of yourself and Mr. Chase, h
g y no
means in view to provoke a discussion upon points
have been already referred to my Governm,,n which
slTuaAvßaiTl,.,&, c.
W.Next in order comes the first despatch of'Earl
Russell to Mr. Stuart:—
“Foreign-office, July 18, 1862.
cocnrseiwd considered, in
Lord
communicationHerMwajitehstyt'hs Government
the
law
v thee
Lyons' despatches of 20th and 26th May and 2d and sth
c
June respectively, relative to the restrictions placed upon
the export trade of the United States, and more especially
that from New York to the Bahamas, in consequence of the in-
structions given bythe Secretary of the Treasuryof the United
States to refuse clearances to vessels laden with contraband
of war or other specified articles, as well as to vessels which
are believed to be in fact bound to Confederate ports, or
which are laden with merchandise of whatever description,
when there appears to be imminent danger of the cargoes
coming into the possession of the so-styled Confederates.
I have now to state to you that her Majesty's GoVernment
are of opinion that is competent to the United States as a
belligerent Power to protect itself within its own ports and
territory, by refusing clearances to vessels laden with
contraband of war or other specified articles, as well
as to vessels which are believed to be bound to Con-
federate ports, and that so long as such precautions
are adopted equally and indifferently in all cases, with-
out reference to the nationality or origin of any par-
ticular vessels or goods, they do not afford any just ground
of complaint. But her Majesty's Government are unable to
understand how the refusal of clearances to vessels laden
with ordinary merchandise can be justified upon the mere
assumption or surmise of some imminent danger of the
cargoes coming into the possession of the insurgents;' unless,
indeed, there be reasonable ground for alleging and believ-
ing that some Confederate port is the true destination of said
vessels or of their cargoes. Under so vague and indefinite a
pretext as that of imminent danger of the cargoes coming
into the possession of the insurgents,' any kind and amount
of arbitrary restrictions on British trade might be introduced
and practised. With reference to the measures that appear
to have been taken by the United States Government as to
the trade with the Bahama Islands, her Majesty's Govern-
ment consider that a distinction ought to be made between
shipments of coal and other articles ancipitis usus, the export
of which may have been prohibited as contraband by gene-
ral orders of the United States Government to any places
within geographical limits, and shipments to the Bahamas
or any other part of the British dominions of provisions and
other articles of innocent use not prohibited or made contra-
band by any such general order. The prohibition of the for-
mer class of shipments is public and general, and it falls
equally upon the shipping and commerce of all nations, and
may be justified upon the ground of the ex'gencies of a bel-
ligerent. But her Majesty's Government cannot so regard
the interference of the New York Custom-house with the
ordinary exports to the Bahamas of dry goods, plain and
printed fabrics, &c., shoes, medical drugs, flour, and pro-
visions. Trade between the United States and the Bahamas

is regulated by the Treaty of 1815 between the United

States and Great Britain, the stipulations of the Treaty
having been extended to the Bahamas in 1830 by the mutual
acts of both Governments. By the proclamation of Presi-
dent Jackson, dated the sth of October, 1830, pursuant to
the Act of Congress of the 29th of May, 1830, it was ex
pressly declared to be lawful for British vessels from the
Bahamas to import into the United States, and to export
therefrom, any articles which might be imported or exported
in vessels of the United States. This engagement is still
in force, ana any FL olaibition of or ialtel apoa to
of ordinary commodities, net contraband of war, from New
York to the Bahamas in British vessels is plainly inconsis-
tent with that engagement, Her Majesty's Government
cannot, therefore, in the absence of any evidence, that the

articles in question were destined for the so-called Confede-

rate States, pass unnoticed the general restriction which has
been imposed on their export from New York to the Baha-
mas, and I have accordingly to instruct you to address a
representation on the subject to Mr. Seward.—l am, &c.,
" RITSSELL."

We are at this point furnished with letters from
Messrs. Chalmers, Guthrie, and Co., and Messrs.
Shorter and Co., of London, addressed to Earl Rus-
sell, in which it is stated that, trading as British
merchants, they had shipped from Liverpool toNew
York by the Canard steamship China, which sailed
on the 7th of June, 1862, sundry goods in transit
to Nassau, that these goods did not come under the
designation of contraband, but that they had never-
theless been seized by the Federal Government on
the ground that the merchants of Nassau might re-
sell them to parties who might ship them to the
Confederate States; that they had waited patiently
for a return mail from Nassau in the hope that the
Federal Government would reconsider what ap-
peared a very arbitrary and illegal proceeding, but
that it seemed they had no intention of allowing
the goods to go forward in the usual course of
commerce; and they therefore entreated that the
English Gpvernment would take such steps as they
might deem necessary to obtain the release of
the goods, as well as compensation for the loss
their detention had naturally caused. In reply
to these representations Mr. Layard states that
" the matter is under the consideration of her
Majesty's Government." On the Ist of July Mr.
Bayley, writing to Mr. Stuart, encloses a memorial
addressed to him by the heads of three firms in
Nassau, representing in a forcible light the great
injury which was being done to British trade by the
proceedings of the collector of Customs at New
York, while there is a letter of Mr. Canard to Mr.
Chase, dated June 19, in which he begs that the
subject of the transhipment of part of the cargo per
the China to the British Queen might receive its
earliest consideration. Mr. Stuart subsequently,
on the 21st of August encloses the following de-
spatch of Mr. Seward to Earl Russell :

"Sir,—I have the honour to acknowledge the receipt of
your note of the Ist inst., in which, under the instructions
of her Britannic Majesty's Government, a representation
made to me on the subject of clearances of vessels and car-
goes from New York to the Bahamas. No time was lost in
submitting your note to the Secretary of the Treasury, who
referred it to the Collector of Customs at Ne w York for ex,
planation. I now have the honour to enclose to you a copy
of that officer's report on the subject, and to state that, as
his proceedings therein set forth appear to have been in
strict conformity with the instructions of the Treasury De-
partment, his conduct has been accordingly approved by
that department. I, however, give you the collector's reply
for the better information of your Government as to the
exigencies which have rendered the proceedings complained
of necessary in a crisis of great public danger. The exclu-
sive order is applied to the Island of Nassau only, because
there is no complaint of abuse of neutrality laws elsewhere,
and not at ad invidiously or because it is a British posses-
sion. The is a measure adopted for the public
safety, endangered by insurrection, and not at all as in any
sense a measure of trade, and I think it justifiable on the
same grounds with the inhibition of certain exports referred
to by the British Government. So soon as the abuses
which have rendered the order necessary shall have ceased
ibt willbe atonce rescinded. I shall, however, cheerfully
tow a further consideration upon the subject if your
Government
shall require.—l have, &c.,

" WILLIAM H. SEWARD."
The collector of Customs, Mr. Barney, in the
reply alluded to in Mr. Seward's despatch, endea-
vours to justify the course which he took, and, in
doing so, says
It may not be inappropriate here to enumerate some of
the leading causes which have led to this state of affairs of
which complaint is now made by her Britannic Majesty's
Government, and I would therefore call your attention to
the significant fact that the trade of this port with the Bri-
tish West Indies during the last year exceeds by far that of
any former period, a comparative statement of the exports
to that point during the first quarter of the years 1860 and
1862 showing an excess in favour of the latter period of
400,000 dols. Extraordinary large shipments of goods to
Nassau, the principal port in said islands, have been made
during the last year, of a character entirely different from
those of former years, and such as were not suited to the
wants of the inhabitants. Nearly all vessels arriving here
from that portwerep
freightedattemt
at concealmentwithtbepridu has beenotionofthe
rebel States, and no

made by any of the traders with regarl to the place of