Mr. Sherman to Mr. Taylor.

No. 676.]

Sir: I confirm on the overleaf copy of my cipher telegram of yesterday protesting against the further detention in Cuba of tobacco purchased or contracted for by mercantile houses in the United States prior to the issuance of the decree forbidding its exportation.

The attention of this Department has, for several months past, been called to the very great injury caused by the persistent refusal of the Spanish authorities to fulfill the promises made to this Government and release from the embargo all tobacco in the provinces of Havana and Pinar, the property of citizens of the United States at the time the said embargo was ordered by the Captain-General of the Island. The damages which may be ultimately awarded to such citizens for this detention of their property are of minor importance compared with the great injury which is now occasioned by the lack of materials for their factories in this country. The retention of this tobacco in Cuba does not operate in favor of the native manufacturers and the embargoed merchandise will, within a short time, become useless. In this connection I inclose copy of a letter from Messrs. Hernsheim Bros, and Co., of New Orleans, filed in this Department by Mr. William O. Roome.

In conversation with the Spanish minister at this capital, the above considerations and suggestions on the same lines were submitted to him, and he assured the Department that he would at once cable to the Madrid Government to promptly dispose of all these cases which are now on appeal there from Cuba.

Respectfully, yours,

John Sherman.