Papers Relating to Foreign Affairs, Accompanying the Annual Message of the President to the First Session Thirty-eighth Congress, Part I
Mr. Seward to Lord Lyons.
My Lord: Adverting to your memorandum of the 16th instant, relative to the promised answer of the Secretary of the Treasury with reference to the cancelling of certain bonds taken by the custom-house authorities at New York, upon the shipment of merchandise to the Bahama islands, I have the honor to enclose to you the copy of a communication, of the 1st of this month, addressed to this department by that officer.
I have the honor to be, with high consideration, your lordship’s obedient servant,
Right Hon. Lord Lyons.
Mr. Chase to Mr. Seward.
Sir: I have the honor to transmit herewith the letters received by me from Hiram Barney, collector at New York, dated 27th May and 23d June last, replying [Page 674] to the complaint of the consul at Nassau and others, that certain bonds given to the collector for shipments to Nassau, N. P., have not been cancelled, and which I regard as satisfactory.
With great respect,
Hon. Wm. H. Seward, Secretary of State.
Mr. Barney to Mr Chase.
Sir: Begging leave to refer you to my letter of the 27th of May, in regard to the cancellation of bonds taken upon shipments of merchandise to Nassau, N. P., I will now make a further report upon that subject.
The bonds, under consideration, are taken by me by virtue of the act of Congress of May 20, 1862, and the instructions of the Treasury Department based thereon, bearing date May 23, 1862, and the circular regulations of that department, bearing date, respectively, August 28, 1862, and May 31, 1863. It will be borne in mind that the authority of collectors of customs for exacting this class of bonds does not rest solely upon the instructions of the Treasury Department, but is expressly conferred by the act above cited.
In conformity with these instructions and regulations, and by virtue of the authority conferred by this act, this office has been in the practice of requiring bonds upon shipments from this port to Nassau for a little more than a year past. It has been impelled to do so, because it has had ample reasons for believing that portions of the merchandise sent from New York to Nassau was destined to take its chances of reaching the insurgent States by breaking the blockade, and that, in some cases, arrangements to effect that object had been actually entered into by persons shipping goods from this port.
The principal condition in these bonds is, that the cargo shall be delivered at the destination for which it is cleared, and that no part of it shall be used in affording aid or comfort to any person or parties in insurrection against the authority of the United States. This condition is enjoined by statute; and, obviously, it cannot be completely performed until all the merchandise is actually consumed.
For the convenience of shippers, and in conformity with the practice under the warehouse system, a clause was inserted in the bonds, requiring the obligors to furnish proof, satisfactorily to the collector, by consular certificate or otherwise, of the landing and entry of the merchandise for consumption at the ostensible port of destination. It was not originally contemplated that this proof by certificate or otherwise should apply to any other condition of the bonds than the one specified, and especially not to the principal condition, which was to remain in force until all the merchandise had been consumed.
After this office had been taking these bonds for some two months, certain shippers to Nassau produced to me certificates from the United States consul at that place, of the tenor of the copy (omitting names and date) hereunto annexed, and marked A.
On presenting these certifications, obligors requested me to cancel their bonds upon the faith of the statements contained in the certificates. I declined to do so, unless so authorized by the Secretary of the Treasury. After a correspondence, in which a certificate of the exact wording of the copy marked A was forwarded to the Treasury Department, I was empowered, on the presentation [Page 675] of that form of certificate, to write the word “Cancelled” across the face of the bonds.
It is within the knowledge of this office that the main ground upon which the collector was authorized to cancel these bonds was the recital in that part of the certificate where the consul declares that, “to the best of my (his) belief, the goods were not to be used in any way to aid and comfort the rebels.”
This form of certificate continued to be forwarded to this office by the consul from July or August, 1862, till some time in January or February, 1863, and during this period all bonds were promptly cancelled on the production of these certificates, and in no case has there been a refusal to do so.
In the mean time, trade between New York and Nassau continued to increase steadily and largely, and the fact that there was a systematic running of the blockade by vessels from Nassau became more and more notorious; and it so happened that much of this increase of trade from New York to Nassau was in kinds of merchandise adapted to the wants of the insurgents.
It was at this juncture, when this office had been stimulated by these facts to extraordinary caution, the late consul at Nassau, without notice to this office, changed the form of these certificates in an essential particular. He declined to certify anything as to his own belief concerning the ultimate destination of merchandise; thus altering that clause in the certificates, upon which the Treasury Department and the custom-house had placed their main reliance. Instead of continuing “to certify that, in my (his) belief,” the goods were not destined to go to the rebels, he now merely stated that the consignee had made oath to his belief in the matter—a party who, for aught that appeared, might be unknown to the consul, or be untrustworthy, or even be engaged in breaking the blockade. This essential change arrested the attention, not to say aroused the suspicion, of this office; and upon due reflection, no bond was thenceforward cancelled solely upon the faith of this new form of certificate, though many have been cancelled when the statements in the certificate have been strengthened by confirmatory proof—such evidence being received under that clause in the bonds, which provides that the proof may be by consular certificate or otherwise.
It will be seen, therefore, that the consul at Nassau and the governor of the Bahamas, and the Nassau memorialists, (whose communication you have forwarded to me,) are in error when they say that this office has refused to cancel bonds upon the production of such consular certificates as had formerly been deemed sufficient for that purpose, and which had been framed by, and received the sanction of, the United States government.
I may remark in this connexion, that all the embarrassments and misunderstandings which have surrounded this matter seem to me to have arisen out of the sudden and unexplained change in the form of these certificates, as above mentioned.
Since my letter to you of May 27, some obligors, whose bonds had not been heretofore cancelled, have produced to this office certificates from the present consul at Nassau, a copy of which (omitting names and dates) is hereto annexed and marked B.
It seems to me that this amended form of certificate is quite as broad and satisfactory as that originally issued, and I have, therefore, not hesitated to cancel all bonds where this kind of certificate has been produced, and with your approbation, except in cases where I have ample proof that some essential condition of a bond has been violated, shall continue to do so.
This office has learned from the present consul at Nassau that he shall, in all cases where he consistently can, continue to issue this form of certificate. This course would, in my judgment, relieve the subject of nearly all its embarrassments. If, unfortunately, any cases should hereafter arise in which parties shall decline to furnish the consul with facts on which to base his certificates, and in which no proof shall be presented to this office warranting the cancellation [Page 676] of the bonds, such cases might be disposed of as justice and national comity seemed to demand.
In regard to bonds upon shipments to Nassau which remain uncancelled, and in which the time for producing the consular certificate has expired, I would say that the number is not large; and inasmuch as this office is in the daily receipt of the amended form of certificates applicable to these bonds, (the consul having given them in exchange for the defective form,) and as obligors are constantly availing themselves of my offer to receive other proof adapted to meet the conditions of the bonds, their number is so rapidly diminishing that, ere long, doubtless all such, or nearly all, will have been cancelled.
I therefore, with your permission, will defer for the present a detailed statement in regard to bonds remaining uncancelled. If, after waiting a reasonable time, any of this class of bonds still remain undisposed of, I will report that fact to you, and await your instructions.
I need not add that if the Treasury Department should, under all the circumstances, instruct this office to cancel the bonds upon the production of certificates, of the form heretofore deemed unsatisfactory, it will be promptly done.
The documents enclosed in your several letters of 21st and 23d ultimo on this subject are herewith returned.
I am, very respectfully, your obedient servant,
Hon. S. P. Chase, Secretary of the Treasury.
A.
I, Samuel Whiting, United States consul at Nassau, N. P., do hereby certify that all the articles imported by—— ——, of Nassau, N. P., and shipped by —— ——, of New York, in the brig ———, from New York to Nassau, N. P., on or about the — day of ——, A. D. 1862, have been duly entered and the duties thereon paid at the custom-house here; that the consignee has testified, under oath before me, that the said articles were all imported in good faith for home consumption in the Bahamas; and that to the best of my belief they are not to be used in any way to aid and comfort those now in rebellion against the federal government of the United States of America.
Given under my hand and consular seal at Nassau, N. P., this —— day ——, 1862.[CONSULAR SEAL.]
B.
I, S. C. Hawley, consul of the United States of America at Nassau, N. P., do hereby certify that the goods and property mentioned and described in the affidavit and schedule hereto annexed have been landed at the port of Nassau, N. P., and entered at the custom-house here, and the duties thereon paid at the said custom-house, as appears by the certificate of the custom-house officer and the affidavit hereto annexed.
I do further certify that the said goods and property were imported solely for sale and consumption in the Bahamas, and have not been, nor are they intended [Page 677] to be sold, exported to, or used to aid or comfort any person, place, port, state, or country in rebellion against the government of the United States of America, as appears by the affidavit hereto annexed.
Mr. Barney to Mr. Chase.
Sir: I have received your letters of May 21 and of May 23, with their several enclosures, relating to bonds taken by this office upon the shipment of merchandise, from time to time, from this port to Nassau, N. P., and, especially, relating to the alleged refusal of this office to cancel certain of these bonds, by virtue of certificates issued by the United States consul at Nassau, with the request, in substance, that I would report to you fully upon all the matters involved, and give in detail my action in the several cases, with my reasons therefor, at my earliest convenience.
I beg now to reply, that the nature and importance of the subject demand, and a full compliance with your request will involve, a somewhat extended examination, and a somewhat elaborate statement of facts pertaining to this matter. To do this will make it necessary to defer for a short time (perhaps for a few days) a complete answer to your letters, with their respective enclosures, which will be made as soon as it can be prepared.
In the mean time I beg leave to say, in the most explicit terms, that this office has not refused, in a single instance, to cancel any bond taken here for shipments of merchandise to Nassau, upon the production to me of consular certificates of the form and character sanctioned by the Treasury Department, in August last, and upon the faith of which the collector of this port was authorized and directed to write the word “Cancelled” across the face of this class of bonds. On the other hand, in every instance where such certificates have been produced to me, with the request of the parties interested to have their bonds thus cancelled, it has invariably and promptly been done. The statements to the contrary, made by the United States consul at Nassau and the governor of the Bahama islands, and the Nassau memorialists, (enclosed in your letter to me,) are based upon an entire misapprehension of the facts in the case. This office has always and in every instance carried out, with the utmost liberality towards shippers of merchandise to the Bahamas, the letter and spirit of the instructions above-mentioned. The truth is, the consul at Nassau, some time during the past winter changed the form of these certificates in an essential particular, and thus took them out of the reach of the letter and spirit of these instructions, thus leaving me and these shippers in a position which has led to much misunderstanding and embarrassment. In fine, if this matter were, in respect to those certificates, to be now placed upon the basis where it originally and for many months reposed, nearly all the difficulties that environ it would, in my judgment be removed.
Deferring, for the reasons already stated, a full reply to your letters, and their several enclosures, I remain, your obedient servant,
Hon. S. P. Chase, Secretary of the Treasury.