Lord Lyons to Mr. Seward.

Sir: With reference to the note which you did me the honor to address to me on the 17th of last month, and to the previous correspondence in which I have been for many months engaged with you on the subject of the restrictions imposed on the trade between the United States and British colonies, I desire to ask you to take into serious consideration the two papers which I transmit to you herewith.

The one is a copy of a despatch from the lieutenant governor of Prince Edward’s island to me, and the other a copy of a memorial addressed to the lieutenant governor of New Brunswick by the Chamber of Commerce, of the town of St. John, in that province.

Waiving for the moment all discussion on the principle involved in the exaction of the bonds which merchants are now in many instances compelled to give on shipments from the United States to British colonies, I cannot but hope that the statements made in the enclosed papers will convince you that while the exaction of such bonds is particularly injurious to the provinces of New Brunswick and Prince Edward’s island, it may certainly, in the case of those two provinces, be safely dispensed with.

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

LYONS.

Hon. William H. Seward, &c., &c., &c.

Lieutenant Governor Dundas to Lord Lyons.

My Lord: It is represented to me by a leading merchant of this island that the custom-house authorities at New York are making all shippers to this province give bonds for their shipments in double the amount of invoice; that the shippers are also required to find two sureties, owners of real estate in the city of New York, such estate to be unencumbered and worth double the amount of invoice; that the nature of the bond is, that the goods are to be consumed in the province, and not to be reshipped to any port under the control of the so-called Confederate States.

It is further represented to me that these bonds are not enforced in the case of shipments to Newfoundland, for the reason that no reshipments have been made from that island to such ports.

I have no hesitation in expressing my conviction that shipments have not been made from this island to any such ports. I understand that the United States consul of this island will address the State Department at Washington with his certificate to this effect. Under these circumstances, I have the honor to bring the subject under your lordship’s notice, in the hope that your lord ship may be able to obtain an exemption on this ground in the case of ship ments made to this island.

It is unnecessary for me to remark on the serious embarrassment which will be occasioned to the trade with this island should these rules be enforced.

I have, &c.,

GEORGE DUNDAS, Lieutenant Governor.

Lord Lyons, &c., &c., &c.

[Page 583]

Memorial of the Chamber of Commerce of St. John, N.B.

To his excellency the Hon. Arthur Hamilton Gordon, lieutenant governor and commander-in-chief of the province of New Brunswick.

The memorial of the Chamber of Commerce of the city of St. John, in the province aforesaid, respectfully represents: That this chamber has learned that by a recent regulation of the customs authorities in the city of New York bonds are required on the shipment of goods to this province, providing, under heavy penalties, that such goods shall be landed in the province, and shall not be transported to any place under insurrectionary control of the so-called Confederate States of America, and shall not be used in any way to give aid or comfort to such insurgents, with consent, permission, or connivance of the owners, shippers, carriers, or consignees thereof.

Your memorialists would respectfully represent that they cannot but regard the requirement of bonds of this nature as an imputation upon the integrity and honor of importers in the province, inasmuch as it is an implication that said importers seek to possess themselves of goods for a purpose at direct variance with the proclamation of her Most Gracious Majesty the Queen, and opposed to their principles as being engaged in the prosecution of regular and legitimate business.

Your memorialists are of opinion that, while it may accord with the practice in certain cases to demand bonds for the due landing and delivery of goods at their declared destination, to seek to retain control over such goods and merchandise, after being so landed and delivered, is, in respect to articles imported from the United States into this province, both unusual and unnecessary.

The absence of any ground for such proceeding can readily be made apparent.

The tables of the trade and navigation of the province conclusively show that no shipments have been made from its ports of goods, in any appreciable quantity, (originally imported from the United States,) to any ports or places that can be suspected of complicity with blockade-running operations. This fact, your memorialists would urge, ought to secure our trade from a regulation which, if it were really required, could not but be regarded as burdensome, but which, when clearly shown to be unnecessary, as a security against contraband trading, cannot but be deemed vexatious and inconvenient.

Your memorialists would further beg to draw attention to the fact that the trade of this province is a growing one, and that the imports from the said United States consist mainly of breadstuff’s and salted meats, for which there is a rapidly increasing consumption. These articles are imported into the province for consumption therein, or in the neighboring districts of the province of Nova Scotia, and that (as appears from the table of exports hereto appended) none are reshipped from the province for a destination adverse to the United States. The requirement of the bonds of the nature hereinbefore designated, upon the shipment of these articles from United States ports to this province, must prove a burden to the trade which will materially interfere with its extent, since the costs attendant upon the giving of the bonds for such heavy sums and so unusual conditions are more than the trade will bear.

In view of these facts your memorialists would respectfully suggest the consideration whether it will be to the advantage of the people of the United States to continue a restriction on the traffic in these staples, and other goods, that must eventually curtail the commercial intercourse between the two countries, to the disadvantage of both parties.

The Chamber of Commerce beg respectfully to request that your excellency [Page 584] will be pleased to take an early opportunity of communicating these views, and such other considerations as may appear proper to your excellency, to her Majesty’s minister at Washington, in order that the case may be laid before the Secretary of the Treasury of the United States, to the end that our commerce may be relieved of a restriction which it is believed is productive of no benefit on the one hand, while resulting in positive injury on the other.

L. DONALDSON, President.

J. Woodward, Secretary.

Total shipment of breadstuff’s and salted meats from the province of New Brunswick for the years 1862 and 1863.

FROM THE PROVINCE OF NEW BRUNSWICK, 1862.

Destination Barrels of flour. Barrels meal. Pounds salt meat
The United Kingdom 994 40 30,200
Nova Scotia 8,209 749 2,800
Prince Edward’s island 229 76
The United States 168 3 900
Nassau 300
9,600 868 34,200

FROM ST. JOHN, N. B., 1863.

(Returns from outposts not received.)

Destination Barrels of flour. Barrels meal. Pounds salt meat
The United Kingdom 44
Nova Scotia. 8,710 523 4,200
The United States 32 13,400
British West Indies 398 400
9,152 555 18,000

I hereby certify that the above statement relative to the shipment of bread-stuffs and salted meats from the province of New Brunswick, and the port of St. John, New Brunswick, during 1862 and 1863, is correct and true.

[L.S.] WILLIAM SMITH,
Controller of Customs, &c., St. John, March 11, 1864.