Lord Lyons to Mr. Seward.

Sir: I have the honor to transmit to you a copy of a dispatch which I have received from the governor of the Bahama islands, and an extract from a memorial addressed to his excellency by merchants of the town of Nassau.

These papers relate to the restrictions of the trade between the northern ports of the United States and the Bahamas, which have been for some time a subject of controversy between the British and American governments. I do not, however, purpose to make my present note a part of that controversy. I simply desire to ask that, without prejudice to the further discussion of the general question, one particular grievance, which is put forward in the memorial, may be at once taken into consideration, and, if possible, redressed.

The memorialists complain that the bonds which their agents are compelled to give at New York are no longer cancelled, even on the production of a certificate from the American consul in the form specified by the government of the United States. It is to this complaint that I now wish to call your attention; and waiving on the present occasion all controversy concerning the exaction of the bonds, I venture to express a hope that the recent aggravation of the inconvenience which they occasion may be removed without delay.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

LYONS.

Hon. William H. Seward, Secretary of State, &c.

[Untitled]

My Lord: The presentation of the accompanying memorial, on the eve of the departure of the mails, leaves me no time to append any comment to it.

The memorialists are all merchants of this city, and the subject of their remonstrance is of considerable moment both in a political and commercial point of view.

I infer from the observations of those by whom it was presented that their [Page 608] chief grievance is that the bonds, given by their agents in New York, are no longer cancelled after the signature of the consular certificate, which was originally issued for the purpose of enabling them to be cancelled

Certainly the continued enforcement of these bonds must discourage any persons from undertaking this kind of agency in New York, and must in an equal degree discourage all trade between New York and Nassau.

I have, &c.,

C. J. BAILEY, Governor.

[Untitled]

“Merchants are obliged, before they are allowed to export goods of any description from a northern port to any port in this colony, to give bond to the value of the shipment, not only that the exporter shall not himself ship such goods to any port in the confederacy, but that he will not dispose of them to any other person who will so ship them—a condition which your lordship will at once perceive is not only an interference with our rights as British. merchants in carrying on our trade within British territory, but is one which it is quite impossible for us to perform, as the moment we sell our goods here all interest over them of course passes from us, and yet our bonds are liable to forfeiture if any person who gets possession of such goods, even as a purchaser in market west, conveys or attempts to convey them to the Confederate States.

“These bonds are required to be entered into by our agents in New York. Originally they were cancelled on the production of a certificate from the American consul here; but latterly, although the form of this document was framed by the United States authorities, its reception as proof of the performance of the condition stipulated for has been rejected by those very parties, and at the present time the agents in New York of various merchants here have liabilities outstanding against them, in respect of their bonds, of so enormous an amount as would, if enforced, bring ruin to their doors; and under these circumstances the merchants here must stop their importations from the northern States unless remedial measures are, without delay, adopted—a course which we should be most reluctant to pursue, as we feel that it is one that may result in great suffering on the part of the inhabitants of the colony generally, as the bonds referred to are required, not only for manufactured goods, which might be procured elsewhere, but for provisions, including those imported for her Majesty’s government, and for the other common necessaries of life, which we are obliged to resort to the American market for, and a cessation in the supply of which would probably produce the same painful results here which have been recently produced in the manufacturing districts of the mother country by the interruption of the trade in cotton.”

Mr. Seward to Lord Lyons.

My Lord: I have the honor to acknowledge the receipt of your note of the 14th instant, relative to the case of Mr. J. M. Vernon, a prisoner in Fort Lafayette, and to state that a copy of it has been communicated to the Secretary of War, with a request that he will inform me of the progress and result of the proceedings in the case.

I have the honor to be, with high consideration, your lordship’s obedient servant,

WILLIAM H. SEWARD.

Right Hon. Lord Lyons, &c., &c., &c.