can produce. They will have to satisfy that people and mankind that a republican government can be stable and permanent which is built on the principle that a minority, when defeated in the popular elections, may appeal to arms, and that a confederacy can be relied upon by creditors or nations that admits the right of each of its members to withdraw from it and cast off its obligations at pleasure.

I have treated the subject as if it were a question of war or of peace in the election of the insurrectionists. But, in truth, both the justice and the wisdom of the war must in the end be settled, as all questions which concern the American people must be determined, not by arms, but by suffrage. When, at last, the ballot is to be employed after the sword, then, in addition to the pregnant questions I have indicated, two further ones will arise requiring to be answered, namely, which party began the conflict, and which maintained in that conflict the cause of freedoin and humanity.

The agents of the projected confederacy have hitherto affected to undervalue the power which the Union can exercise for self-preservation, and they may attempt to mislead foreign States on this subject. It is true that the government was powerless to resist them so long as it was practically in their own hands and managed to favor their designs. Its executive department was panic-stricken, its legislature divided and distracted, its army demoralized and betrayed, its fortifications virtually surrendered, its navy dispersed, and its credit prostrated. Even the people themselves were bewildered by the sudden appearance of such unlooked-for and appalling dangers. All this demoralization is passing away as rapidly as it came on; and it will soon appear in this, as in all other cases, that the greatest vigor is found combined with the greatest power of elasticity. It will be deeply to be regretted if the energy of this great government is to have its first serious trial in a civil war, instead of one against a foreign foe. But if that trial cannot be averted, it will be seen that resources prudently left unembarrassed are more available than credit in foreign markets; that the loyalty of a brave and free people is more reliable than standing armies; that a good cause is worth more than allies, and self-defence is an attribute stronger than fortresses. Its assailants will have to defend themselves before an enlightened people, and even before other nations, at least so far as to show one State that the federal Union has actually oppressed or menaced, or one citizen who fared the worse for having lived under its authority.

The agents of the new confederacy it is supposed will offer more favorable conditions to foreign commerce than the United States have thought it wise to afford. Such offers may be met with a few direct propositions. The sagacity of the federal government is not likely to be found long at fault in giving such advantages to the insurrectionists. In the second place, how is a revolution to be carried on without taxes? Are the so-called seceding States abler than their sister States to endure direct taxation, or will faction reconcile men to burdens that patriotism finds intolerable? It will be well for the so-called confederacy if, instead of making good the promises in this respect made in its name, it do not find itself obliged to levy duties as large as those of the federal government on imports, and to add to its revenue system, what that government never has done, the ruinous feature of taxation upon exports. It is easily seen how little such a financial policy will commend the new government to the favor of European politicians and capitalists.

But I must draw these instructions to a close. You will on all occasions represent that the interests of Europe and of mankind demand peace, and especially peace on this continent. The Union is the only guarantee of peace. Intervention would be war, and disunion would be only endless

war.

The Union is, moreover, the chief security for the stability of nations. When this experiment of self-government shall have failed for want of wisdom and virtue enough, either at home or abroad, to preserve it or permit it to exist, the people of other countries may well despair and lose the patience they have practiced so long under different systems in the expectation that the influence it was slowly exercising would ultimately bring them to the enjoyment of the rights of self-government. When that patience disappears, anarchy must come upon the earth.

SIR: I have the honor to acknowledge the receipt of your circular, dated the 9th of March, 1861.

I presented the copy of the inaugural address of the President to Count Rechberg on the 8th day of April, and at the same time verbally communicated, in accordance with the instructions contained in said despatch, the views and opinions of my government on the present disturbed condition of its domestic affairs, and the aspect in which it wished them to be regarded by the government of Austria.

He replied that Austria hoped to see us re-united. That she was not inclined to recognize de facto governments anywhere; her opinions had been made, however, and her minister and consuls in America instructed fully on the subject; that no application had yet been made to Austria for recognition as an independent sovereignty, by any portion of the confederacy of the United States, and he was of opinion that, as the views of Austria would soon be known on the subject, no such application would be made. Should it be otherwise, however, he would notify this legation and the subject could be resumed.

SIR: A few days since Count Rechberg, the imperial royal minister of foreign affairs, was interrogated in the house of deputies of the Austrian empire on the subject of the course pursued, or about to be pursued, by the imperial royal government in relation to American affairs in the present complication. The report of his remarks is as follows:

Count Rechberg rose to answer the question, "What measures has the government taken to protect its commercial relations with the United States of North America, under the warlike condition of things now existing there," put by Mr. Putzer and his associates. He said: "The minister of foreign affairs has, in connexion with the ministers of trade and the navy, caused information to be obtained through the imperial minister resident at Washington as to the measures which other governments have taken for the same reason. The answer received was, that England and France, as well as Holland, had strengthened their squadrons in the American waters, and had endeavored to bring the belligerent powers to the recognition of those principles, especially relating to the protection of private property, which were agreed upon at the congress of Paris in 1856. The imperial government has, for the present, abstained from sending ships-of-war, and has directed the minister resident to obtain from the belligerent powers the recognition. of the following points established by the said congress:

"1. The neutral flag covers enemy's goods, with the exception of contraband of war.

"2. Neutral goods, with the exception of contraband of war, are not liable to capture under enemy's flag.

"3. Blockades, in order to be binding, must be effective; that is to say, maintained by a force sufficient really to prevent access to the coast of the enemy.

"The government hopes, on account of the friendly relations which have existed between it and the American States for years, to obtain the recognition of these three points on the part of the belligerents."

In an interview with Count Rechberg a day or two ago, he expressed to me a hope that the answer might be deemed satisfactory to my government, as it was his wish to make it so. I replied that, so far as I was advised, no exception could be taken to his language, but that I should transmit to my government both the question and answer, and if they had anything to say they would make it known to him through their minister here. He repeated his strong desire to see the integrity of the Union preserved in America, and said Austria was anxious to cultivate the most friendly relations with us, and would be the last to aid or abet any movement looking to the disruption of our confederacy, or weakening its power.

Very respectfully, your obedient servant,

Hon. WILLIAM II. SEWARD,

J. GLANCY JONES.

Secretary of State, Washington.

Mr. Hülsemann to Mr. Seward.

AUSTRIAN LEGATION, Washington, August 7, 1861.

The undersigned, in pursuance of the understanding come to this morning, has the honor to transmit to the honorable Secretary of State a copy of the instructions received from Count Rechberg concerning the maritime rights of neutrals in time of war; and he takes this opportunity to renew his offer of high consideration to the honorable Secretary of State

Hon. WILLIAM II. SEWARD,

Secretary of State of the United States.

HULSEMANN

No. 6993.-H.]

Baron Rechberg to Mr. Hülsemann.
[Translation.]

VIENNA, July 1, 1861. SIR: With deep regret we continue to follow events in the United States which, shaking the foundations of the Union, have effectively taken the character of an active warfare between powers; whence it has ensued that friendly nations, for the protection of their own commerce and navigation, are placed reluctantly in such position that they must reclaim their rights as neutrals.

You already know by my despatch of 14th June of last year what principles of international law bearing upon the questions of maritime rights in time of war we relied upon as between us and the government of the Union, whether under the provisions of old treaties, or under more recent arrangements; inasmuch as we have given our adhesion to the Paris declaration of maritime rights in 1856, as tending to improve the heretofore ill-advised mode of dealing with the political fluctuations that lie before us.

Albeit the government of the Union did not explicitly and at once accept, upon the first invitation, the declaration of the European powers, yet we still entertain an earnest expectation that such subsequent express assent may be given, as the abrogation of all hindrance to the security of private property on the seas was established on the broadest grounds.

By a proposal which, unfortunately, was not accepted on the other side, we, however, as you know, were always ready and willing to sustain the principle.

We await, however, in friendly expectation, at least, the express recognition of the second, third, and fourth principles of the Paris declaration on the part of the United States quite distinctly from that, because the government of the Union, on different occasions, has not only plainly expressed these principles in manner more or less forcible, but has upon its own motion set them forth and explicitly maintained them.

We therefore rest securely in the belief that we may soon receive a satis factory communication upon this subject, and that under the high authority of the President, administering the relations of his government, the above mentioned three principles will be authentically asserted by the United States. But you also have it in express charge to invite the earnest attention of the Secretary of State to the matter, and to take the same steps as we see reason to adopt with the other European powers in what may be regarded as definitively settled.

You will, I hope, carry this important question through to a favorable close, and I present you the assurances of my cordial sympathies.

RECHBERG.

His Excellency the Chevalier HULSEMANN, S., &c., &., Washington.

Mr. Seward to Mr. Hülsemann.

DEPARTMENT OF STATE, Washington, August 22, 1861.

The undersigned, the Secretary of State of the United States, has the honor to acknowledge the receipt of a communication from Mr. Hülsemann,

minister resident of his imperial royal Majesty the Emperor of Austria, bearing date 7th August, instant. Mr. Hülsemann's letter is accompanied by an instruction sent to him by Count Rechberg, the Austrian minister for foreign affairs, calling for information on the subject of the. views of this government concerning the rights of neutrals in maritime war. Count Rechberg expresses a hope that the government of-the United States will give assurances that it adopts and will apply the 2d, 3d, and 4th principles of the declaration of Paris, viz:

2. The neutral flag covers enemy's goods, with the exception of contrabaud of war.

3. Neutral goods, with the exception of contraband of war, are not liable to capture under enemy's flag.

4. Blockades, in order to be binding, must be effective; that is to say, maintained by a force sufficient really to prevent access to the coast of the enemy.

The undersigned has great pleasure in assuring Mr. Hülsemann that this government does adopt, and that it will apply the principles thus recited and set forth, and that its liberal views in this respect have not only been long held, but they would have been formally communicated to the Austrian government several months ago but for the delay which has unavoidably occurred in the arrival of a newly appointed minister plenipotentiary at Vienna.

Of course the principles referred to are understood by the United States as not compromitting their right to close any of their own ports for the purpose of suppressing the existing insurrection in certain of the States, either directly or in the more lenient and equitable form of blockade which has already for some time been established.

Mr. Motley, who proceeds immediately to Vienna as envoy extraordinary and minister plenipotentiary of the United States, will be directly advised of this communication, while he will be charged with more ample instructions on the general subject involved.

The undersigned avails himself of this occasion to tender assurances of the good will of this government towards the government of Austria, and of his distinguished consideration for Mr. Hülsemann personally.

The Chevalier HULSEMANN, &c., &c., &c.

WILLIAM II. SEWARD.

Mr. Seward to Mr. Jones.

No. 14.]

DEPARTMENT OF STATE, Washington, August 12, 1861.

SIR: Your despatch of the 20th of July, No. 22, has just been received. Owing to the change of Mr. Burlingame's destination, the instructions he conveyed have failed to reach your legation. A new appointment has just now been made in the person of Mr. Motley, who will, without much delay, proceed to relieve you of the mission which you have conducted so satisfactorily during the period of my counexion with this department.

Mr. Motley will have full powers to treat with the government of Austria on all the matters discussed by Count Rechberg in the speech to which, by his direction, you have called my attention, and I am sure that they will be disposed of to the entire satisfaction of Austria, as well as for the common advantage of both countries.