Mr. Seward to Lord Lyons.

My Lord: Referring to your communication of the 13th of April last, and to my acknowledgment of the 18th, relative to the restrictions imposed upon the trade between the United States and her Majesty’s provinces, Prince Edward’s island and New Brunswick, I have now the honor to enclose, in reply to your lordship’s note, extracts from a letter of the 1st instant, and from its accompaniment addressed to me by the Secretary of the Treasury.

I have the honor to be, with high consideration, my lord, your obedient servant,

WILLIAM H. SEWARD,

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

[Page 632]

[Extracts of a letter from Mr. Chase to Mr. Seward]

Sir: In answer to your communication of April 18, enclosing a despatch from Lord Lyons, relative to bonds required in New York on shipments to New Brunswick and Prince Edward’s island, I have the honor to enclose a letter of the collector at New. York, whose report on the matter was required.

* * * * * * * *

Under the circumstances, I cannot but approve the action of the collector at New York.

I have the honor to be, sir, your obedient servant,

S.P.CHASE, Secretary of the Treasury.

Hon. William H. Seward, Secretary of State, Washington, D. C.

[Extracts.]

Mr. Clinch to Mr. Chase.

Sir: I have the honor to acknowledge the receipt of your letter of the 30th ultimo, enclosing a communication from the Secretary of State, and also a copy of a despatch from Lord Lyons in regard to restrictions on trade between the United States and the British provinces, and particularly those of New Brunswick and Prince Edward’s island. So far as this complaint refers to restrictions on shipments to Prince Edward’s island, I have only to answer, that no bonds have ever been exacted at this port on the shipment of any article to that province.

On shipments of flour from this port to New Brunswick and Nova Scotia no bonds are exacted; but bonds are exacted on shipments to those provinces of beef, pork, and such other articles as are usually dealt in by blockade runners.

This exaction is made for the reason that an illegal traffic has been carried on, and still is to some extent, between the principal ports in these provinces and the British West Indies, and ports and places under control of persons in rebellion against the authority of the United States; and it is believed that such illegal trade would be carried on to a large amount, were it not that such bonds are exacted on shipments of such articles from this port.

* * * * * * * *

The enclosures contained in your letter are herewith returned.

Very respectfully, your obedient servant,

C. P. CLINCH, Acting Collector.

Hon. S. P. Chase, Secretary of the Treasury.