Mr. Stuart to Mr. Seward.

The undersigned, her Britannic Majesty’s charge d’affaires, has the honor to transmit to the Secretary of State of the United States the accompanying copy of a despatch which he has received from her Majesty’s principal secretary of state for foreign affairs, bearing reference to the note which the Secretary of State addressed to the undersigned, under date of the 18th of August last, in reply to representations on the subject of restrictions imposed on the trade in British vessels from the ports of the United States to the Bahamas.

The undersigned avails himself of this opportunity to renew to the Hon. William H. Seward the assurance of his high consideration.

W. STUART.

Earl Russell to Mr. Stuart.

No. 130.]

Sir: I have had under my consideration and have consulted the proper law advisers of the crown respecting your despatch No. 172, of the 20th ultimo, in which you enclose a copy of a note you had received from Mr. Seward in reply to the representations you had addressed to him on the subject of the restrictions imposed on the trade in British vessels from the ports of the United States to the Bahamas.

I have now to state to you that the gravity of the circumstances in this case is, in the opinion of her Majesty’s government, rather increased than diminished by the grounds on which the proceedings of the New York custom-house are explained and sought to be justified in the letter from Mr. Collector Barney to Mr. Chase, of which a copy is enclosed in Mr. Seward’s note, and which proceedings are, as it appears, approved and sanctioned by the government of the United States.

It is admitted in this letter that the prohibitions and restrictions in question are directed exclusively against the commerce of one particular British possession, namely, Nassau. It is therefore clear that, unless they can be justified by the law of nations, they violate the terms of the subsisting commercial treaties between the United States and this country, and furnish ground for international complaint.

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The position assumed by the United States government is this, that it is entitled to prohibit, or place under restrictions equivalent to prohibition, the exportation from New York to Nassau of articles which are neither in their own nature contraband of war nor made contraband for the purpose of the present hostilities, by any general and public declaration of that government, with a view thereby to prevent British subjects, resident at Nassau, or making that colony a depot for purposes of commerce, from trading in those articles with the so-styled Confederate States. The inference that the articles, though having really and bona fide a British destination, are likely to be afterwards used for the purposes of the trade between Nassau and the so-styled Confederate States, is drawn, as explained by Collector Barney, from the magnitude of the consignments, from a comparison between the amount of the trade in similar articles carried on between New York and Nassau in former times and the amount during the present war, from the notorious existence of an extensive trade during the war between the so-styled Confederate States and Nassau, and from the known or reputed connexion of certain merchants or mercantile houses in England and at Nassau with that trade. The possibility or probability being thus arrived at that such a use may be made of some of these articles after their arrival at Nassau, it is concluded that the United States government are entitled to stop them at New York. From this conclusion her Majesty’s government dissent.

The trade between Nassau and the so-styled Confederate States is subject to those limitations which the law of nations has established as legitimate as the trade between Great Britain and any other part of the world. Even if the government of the United States were in a condition to ask other nations to assume (which is very far indeed from being the case) that every port of the coasts of the so-styled Confederate States is effectively blockaded, British subjects at Nassau would still have a perfect right to sell goods to all such shippers, whether of the so-styled Confederate States or others, as might be able to resort to Nassau for the purpose of buying them there; and the dealers at Nassau, or their principals in Europe, in making such sales are not chargeable with any, the slightest, violation of neutrality. If contraband articles are shipped for any port of the so-styled Confederate States they are liable to seizure according to the law of nations; if articles not contraband are shipped for any blockaded place they also may be seized upon the high seas according to the law of nations. But the liability of the trade between Nassau and the so-styled Confederate States, or any part of it, to be intercepted upon the high seas by a maritime capture, according to the rules of international law, does not render the dealing in the articles which supply that trade, by British subjects within British jurisdiction, less lawful and innocent than if there were no such liability; much less does it justify a belligerent government in superadding to the known belligerent rights of blockade and of maritime capture an embargo within its own ports upon any part of the trade of a neutral nation with one of its colonial possessions, merely because this may possibly tend to cripple or embarrass another lawful trade between that country and the country of the other belligerent.

The doctrine of the United States on this subject has always been the same as that of Great Britain, namely, that neutral governments are under no obligation to stop a contraband trade between their subjects and a belligerent power, and that the only penalty of such a trade is the liability of contraband shipments to be captured on the high seas by the other belligerent.

The false assumptions which seem to pervade the views of the United States government with respect to Nassau are, that it is a violation of neutrality for a British colony to carry on any active trade with the so-styled Confederate States during the existence of the blockade, and that, in aid of the inefficiency of the [Page 306] blockading force, an embargo may lawfully be placed on a particular trade of British commerce at New York.

You will furnish Mr. Seward with a copy of this dispatch.

I am, with great truth, &c., &c.,

RUSSELL.

Hon. William Stuart, &c., &c., &c.