Papers Relating to Foreign Affairs, Accompanying the Annual Message of the President to the Third Session Thirty-seventh Congress

Mr. Seward to Mr. Adams.

No. 306.]

Department of State, Washington, July 24, 1862.

Sir: You are aware of the use which has been made of the port of Nassau by the insurgents and their friends as a deposit for vessels and merchandise for the purpose of breaking the blockade. Some of the residents there, notoriously engaged in this business, recently complained, through Mr. Stuart, the British charge d’affaires here, of certain restrictions which the Treasury Department authorized to be placed upon the transhipment of merchandise at New York from steamers from England to vessels for Nassau.

Explanations have been requested upon the subject, and I now enclose a copy of a letter of the 22d instant from the Secretary of the Treasury, and of its accompaniments, which will enable you to point out the necessity for the restrictions adverted to, should inquiry be made of you on that subject; and you may even invite that inquiry.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Charles Francis Adams, Esq., &c., &c., &c.

Mr. Chase to Mr. Seward.

Treasury Department, July 22, 1862.

Sir: The communication of Mr. Stuart, British charge d’affaires, relative to supposed unauthorized restrictions upon trade between New York and Nassau, having been referred for explanations to the collector of customs at New York, that officer has reported in relation thereto.

I have the honor to transmit herewith a copy of his communication, together with a copy of a letter from the United States consul at Nassau to the collector. The paper of Mr. Stuart is also herewith returned.

I have the honor to be,

S. P. CHASE, Secretary of the Treasury.

Hon. William H. Seward.

Mr. Barney to Mr. Chase.

Custom-House, New York, Collector’s Office, July 16, 1862.

Sir: I have the honor to acknowledge the receipt of your letter of the 9th instant, enclosing copy of communication of the acting British consul at New York to the Hon. Wm. Stuart, the British charge d’affaires at Washington, together with a letter from Mr. Stuart to the honorable the Secretary of State of the United States, and papers explanatory of both documents, relative to supposed unauthorized restrictions upon trade between New York and Nassau, N. P.

In relation to the matter of fact, and the opinions expressed thereupon in these, documents, I have to report that the trade carried on between this port and, Nassau in articles to be shipped thence directly to places and persons in the 10 M Confederate States is of a magnitude only equalled by the barefaced notoriety of the transactions; and it will be observed that the fixed fact of the object of this trade is not denied by the high official functionaries who complain of restrictions being put thereon by the authorities of the United States.

I have further to report that in each of the several cases set forth in the letter of the British consul the articles refused to be cleared were either contraband of war, or their shippers refused to give a bond that they should not be appropriated to aid and comfort the rebels of the Confederated States.

The agent of Mr. Cunard refused to give this bond; so did all the other parties for whose goods a clearance was refused, as complained of by the consul.

It is worthy of remark that, just in the same ratio as it is alleged by the shippers to be absurd to suppose that such and such articles could be intended for the use of the rebels, is the facility and impunity increased with which the bond may be given.

In the case of the search of the schooner William H. Clear, the proceeding of the officers of the customs was founded upon information furnished by the police department of this city, and upon the presence on board, as a passenger, of the captain of a captured blockade-breaking British vessel. Considerable excitement naturally prevailed amongst all parties during the search, and it is altogether fair to presume that the offensive language which the captain refers to in his protest was an error and a fault on both sides.

I transmit to you herewith a letter just received from the United States consul at Nassau. The evils detailed therein, it would seem, can only be remedied by the non-intercourse which the exaction of the objectionable bonds will in most instances produce. It will be observed that one of the names mentioned by the consul, viz: John C. Rahming, is the party to whom several of the letters forwarded to you in mine of the 12th instant are addressed.

The papers enclosed in your letter are herewith returned.

I am, very respectfully, your obedient servant,

HIRAM BARNEY, Collector.

Hon. S. P. Chase, Secretary of the Treasury,

Mr. Whiting to Mr. Barney.

United States Consulate, Nassau, N. P., July 6, 1862

Sir: I have the honor to inform you of the clearance at this port, to-day, of the British schooner Time, Saroyer, master, for New York.

This vessel belongs to Henry Adderly & Co., the actual agents of the rebel States, and she has discharged her two last cargoes from New York directly into the secession steamers engaged in running the southern blockade.

She came from New York about six weeks since, and put her cargo of coal into secession steamers, and some days since she discharged her whole cargo of provisions directly into the steamer Cecile, which sailed for Charleston the next day, but was fortunately totally wrecked at Abaco on the 14th ultimo.

I append the names of Nassau merchants most largely and directly engaged in contraband trade with the southern ports, as well as being most openly abusive of the Union and the north, viz: Henry Adderly & Co., Henry Landers & Son, J. S. George, John 0. Rahming & Co., O. R. Perfsall, I. J. Turtle, Alexander Johnson.

I particularize those who omit no opportunity of sending supplies of arms, munitions of war, and medicines to the rebels.

I have the honor to be, sir, &c,

SAM. WHITING, United States Consul.

Hon. Hiram Barney, Collector of the port, New York.