Papers Relating to Foreign Affairs, Accompanying the Annual Message of the President to the Second Session Thirty-eighth Congress, Part II
Lord Lyons to Mr. Seward.
Sir: I have the honor to acknowledge the receipt of the note dated the day before yesterday, in which, in reply to a note which I addressed to you on the 6th of last month, you have been so good as to inform me that it had indeed been deemed necessary in one or two instances to require bonds on shipments from New York to Newfoundland, but that this requirement had been discontinued. The information which you have thus been so obliging as to convey to me confirms a report to the same effect which I received some time ago from her Majesty’s consul at New York. You will, however, have learned from the extracts from more recent despatches from the same consul which were enclosed in the note which I had the honor to address to you on the 15th instant, that restrictions of a still more onerous character are now imposed upon shipments from New York to several of her Majesty’s possessions. The copies or extracts enclosed herewith from letters from merchants at New York will give you more detailed information on the subject, and will, in particular, bring to your notice the very great hardships which are produced by the restrictions on shipments to Nova Scotia and New Brunswick.
I have the honor to be with the highest consideration, sir, your most obedient humble servant,
Hon. William H. Seward, &c., &c., &c.
Messrs. Hunter & Co. to her Britannic Majesty’s Consul, Archibald.
Sir: We have been engaged for this last twenty-five years in the transaction of business with Halifax, N. S. and other ports in the British provinces.
We have been in the habit of shipping American produce, &c., mostly required for the consumption of the fisheries. Since the 1st January last the custom, house authorities required bonds of the shippers, with two real estate owners for double the amount, to produce landing certificates of captain, mate and consignees, that the goods were intended for consumption. Yesterday a new order was made by the custom authorities, requiring the captain of the vessel to give a bond for double the amount of the cargo, with two real estate owners in the district.
This new regulation will, in our opinion, put an efficient stoppage to the trade, which is a valuable one for this country, and annually increasing. It will drive the trade from this port to Montreal, Hamburg, &c. It is of great interest to the farmers, millers, and receivers of produce. The two latter would willingly unite in a memorial to withdraw the restrictions as far as we are concerned. We know the goods go into most respectable hands, and are intended for the trade of the provinces; we also know that the goods shipped to Nova Scotia are generally of a coarser description than are used in the insurgent States.
We are ,dear sir, &c., &c., &c.,
E. M. Archibald, Esq, &c., &c., &c.
Extract from a letter from A. S Withers & Co. to Mr. Consul Archibald.
We beg to call your attention to the very oppressive and, as it appears to us, unreasonable requirements at the custom-house here, in regard to shipments to the British provinces of New Brunswick and Nova Scotia.
It is alleged that because goods can be, and possibly have been, shipped from said provinces to the West Indies, and thence to States in rebellion, it is necessary to protect the United States against such business, by exacting bonds with every shipment, with two responsible real estate bondsmen to double the amount of the shipment, to provide against such contingency.
We have been engaged in the shipping business to these provinces for a period of fifteen years, during which time the business thereof has greatly increased, of which fact no one is better acquainted than yourself; the shipments of one firm alone last year amounted to upwards of $800,000 in value, and we are satisfied that none of these goods have been sold for the purpose of being transported, either directly or indirectly, to the rebel States; and yet, after goods have passed through two or three hands, and probably their original character changed, it is almost impossible to say what has become of them; and it is an unreasonable thing to block the trade of a place with which we are at peace merely because a contingency may possibly arise against which we claim it is not our business to protect the United States government.
Our business at the custom-house has always been bona fide and aboveboard, and will bear the closest and most minute inspection; and since these bonds were exacted we have offered to furnish to any officer who may be appointed for such purpose the name of every vessel by which we are about to ship; we have further offered to furnish the collector with a list of all our consignees, and have invited his instructions to the American consuls at the foreign ports, in order that they may watch the cargoes on their arrival. You are well aware that these provinces raise no breadstuff’s. Before the operation of the reciprocity treaty they imported entirely Canada flour, large quantities of which were forwarded through New York, in bond. Since this treaty has been in force we ship, exclusively, American flour. The operation of the act has thus been to change the character of the trade, and the provinces have become dependent upon the United States for their food, and their supplies cannot, in mid-winter, be suddenly cut off without entailing actual distress upon the community.
Extract from a letter from Messrs. H. J. & C. A. De Wolf to Mr. Consul Archibald.
We beg, through you, to call the attention of her Britannic Majesty’s representative at Washington to the recent action of the custom-house authorities in reference to the shipments to the British provinces of North America.
Since January 1, 1864, the custom-house authorities have not permitted American produce and other lawful merchandise to be shipped until bonds have been given by the shipper that they are intended for consumption in the provinces, and under no contingency to be reshipped so as to give aid to the insurgents; but when landing certificates are obtained, we find difficulty in cancelling. It is impossible for us to trace goods after they have passed through several hands, and should they run the blockade the shipper is responsible. This action of the customs places almost a total prohibition on trade, and is deemed a violation of treaty stipulations. On the 5th of February instant the customs [Page 526] authorities declined to receive bonds from the shipper, demanding that the cap tain of the vessel should give bonds, and refusing a clearance until this was done.
The British brig Stranger, Captain Campbell, was loaded for Halifax, Nova Scotia, and ready to clear. After three days’ delay at the custom-house, the master was compelled to sign a bond (of which the following is a copy) in the amount of $20,000, the shippers becoming sureties in $115,000.
“Whereas the said George Campbell is the master of the vessel called the. brig Stranger, now lying in the port of New York, laden with a cargo of certain goods valued at $20,111 76, which goods are particularly enumerated in the manifest of said brig, a copy of which is hereto annexed, and the said master has applied to the collector of the port of New York for a clearance of said vessel from the port of New York to the port of Halifax, Nova Scotia, and the said collector, under the circumstances of the case, has deemed it necessary to require a bond in pursuance of the requirement of the statute in such cases made and provided: Now if said goods, wares, and merchandise shall be delivered at Halifax, aforesaid, and shall not be transported to any place under insurrectionary control, and shall not, in any way, be used to give aid or comfort to the insurgents, with or by the consent, permission, or connivance of the owners, carriers, or consignees thereof, then this bond, &c, &c.”
The British brig T. Congdon was also refused a clearance until the master had signed a similar bond in over $9,000, with two real estate sureties in $40,000. Before the breaking out of the war, the provinces obtained a large quantity of breadstuffs from Richmond, Georgetown, and other southern ports, and now are compelled to obtain their supplies almost exclusively from New York, and the exports have consequently increased about 50 per cent. This can be accounted for in the increase of population in Nova Scotia, together with the supplies needed in the gold mines and fisheries.
Mr. Cunara to Mr. Archibald.
Sir: I have just been informed at the custom-house that, in future, bonds will be required from the master or owner of the vessel in which shipments may be made to Nassau, instead of from the owners or shippers of the goods, as heretofore; that a bond will have to be given by the master for the whole value of the cargo, with two responsible sureties, who must justify for double the amount of the bond.
Power, it is said, is given to the collector of customs to demand this by statute passed May 20, 1862, chapter 81. The bond which will be required contains this clause: “Now, if said goods, wares, and merchandise shall not be delivered as aforesaid, and shall not be transported to any place under insurrectionary control, and shall not, in any way, be used to give aid and comfort to the insurgents, with or by the consent, permission, or connivance of the owners, shippers, or consignees thereof, then this obligation to be void; otherwise to remain in full force and virtue.”
You will at once see that this is tantamount to enacting that no shipments shall be made, for the future, from ports of the United States to Nassau, because no master or owner could enter into such an impossible stipulation.
I beg to request that you will be good enough to bring this subject under the notice of Lord Lyons, so as to ascertain whether the United States government can, under the treaties of trade between the United States and Great Britain, prohibit all trade between certain British ports, or demand from the masters of British ships bonds the stipulations of which is beyond their power to comply with.
I have, &c.,
E. M. Archibald, Esq.
[Untitled]
Permit me to address you upon a subject which is not only of importance to myself personally, but to all of her Majesty’s subjects who are doing business in this city with the British provinces of New Brunswick and Nova Scotia; also one which affects seriously the inhabitants of these provinces, and the interest of ships trading between this and those ports, amounting, in fact, to a prohibition of trade and commerce.
You may not be aware that, for some time past, the government of the federal States has been enforcing from shippers bonds for all goods shipped to the above-named British provinces to twice the amount of shipments, requiring two sureties owning real estate within the southern district of New York, each of whom is required to swear that such real estate is worth the amount of bonds free from all encumbrances. The bond is this, viz.: “That the goods named shall be delivered at the port named, and shall not be transported to any place under insurrectionary control, and shall not in any way be used to give aid or comfort to the insurgents, with or by the consent, permission, or connivance of the owners, shippers, carriers, or consignees thereof.
You can scarcely imagine the great difficulty there is in procuring such sureties; in the first place, it is out of the question to ask a retired merchant or man out of business; in the second place, it is very difficult to get merchants away from their business during business hours, which is the only time those bonds can be signed; in the third place, to procure men who will satisfy the requirements of the government; and in the fourth place, to obtain men who are willing to sign such bonds for you, to any extent, however well disposed they may be to you. One may ask the favor of another twice or thrice, but when it is continued to the amount of $200 to $400,000, no man will do it. In fact, shippers cannot reasonably expect it to be done, and any right-thinking man cannot ask it; so it amounts to this, the shipment cannot be made. I have already known two merchants, who have been shippers to St. John’s, New Brunswick, who received orders for one thousand barrels each of flour, who would not ship it, to give the bonds required. One shipper, who shipped goods to the amount of $50, was two days in procuring sureties to satisfy the custom-house authorities.
Another instance, a vessel was detained two days before the shipper could procure his sureties for fifty barrels of flour, the amount being about $350. The freight on which the vessel would receive, when delivered, was $15; her time each day was worth $25. Several merchants have been for some time trying to get the collector of this port to remove this restriction, which, after much deliberation with other officials, enforcing the master or owner of the vessel bound to these provinces to give bonds of the same nature, the same amount, and the same sureties as have heretofore been required of the shippers. This change has made the thing worse, and the burden more than before, for this reason: The master and owners of the vessels usually plying between this and those ports are comparatively strangers, which will make it difficult to procure sureties, in fact, in most instances, impossible, unless the consignees residing here procure them.
Then, again, it increases the amount of the bond, as it covers the whole cargo; the larger the amount, the more difficult to find men with sufficient real estate to answer the requirements of the government. Another difficulty, the bonds of the captain cover the goods both of the regular honest shipper and the dishonest one who may be shipping for the express purpose of reshipping to a port in rebellion, or he may ship goods which are contraband, of which the master of the vessel can have no knowledge. You can at once see the impropriety and [Page 528] injustice of placing such burdens on masters and owners of vessels. If any one has any right to give any such bond, surely it is the shipper, and not the ship.
I have a vessel now in port for which I had engaged freight to be taken to Halifax, Novia Scotia, but as these bonds are now required from the vessel, the master of which will not take the cargo to give bonds, preferring to go in ballast. I mention this to show the practical working of the thing. The government, on account of the increase of shipments to the British North American provinces, has become suspicious that the increased demand for goods has been caused by reship-ment to the States in rebellion, which suspicion is not well founded. It must be borne in mind that previous to the enactment of the reciprocity treaty, or rather the taking effect of that treaty, all the flour shipped was the produce of the provinces of Canada, received here in bond, and exported hence in bond. I think I may say there was not any American flour shipped, for the reason there was a duty on all American flour shipped to the provinces. Since that treaty took effect, almost all, if not entirely all, the flour which has been shipped is of American growth and manufacture. Then, again, the population of these provinces have materially increased. Further, previous to the breaking out of the rebellion large quantities of a low grade of breadstuff’s were shipped from the southern States, which, of course, has been cut off, and the demand for the same now centres here. I have been engaged in business in this city for the last thirteen years with those provinces, and know what I have stated to be true
Extract from a letter from Messrs. Tynes & Smith to Mr. Consul Archibald.
The schooner Nassau, a small vessel of about eighty-six tons burden, was chartered by our house to take a cargo of flour to St. John’s, New Brunswick, at twenty-five cents per barrel, the vessel carrying eight hundred barrels.
The authorities demand two sureties of $5,000 each for the due performance of voyage, to obtain said securities it cost two and a half per cent., which takes entirely all the freight and fifty dollars in addition. The freight was engaged, and the vessel laden before the regulation was made. The master is now obliged to pay. fifty dollars over and above his freight to enable him to carry his cargo to St. John’s, New Brunswick, for nothing.