endangered by insurrection, and not at all as in any sense a measure of trade, and I think it justified on the same grounds with the inhibition of certain exports referred to by the British government. So soon as the abuses which have rendered the order necessary shall have ceased it will be at once rescinded. I shall, however, cheerfully bestow a further consideration upon the subject if your government shall require. I have the honor to be, with high consideration, sir, your obedient servant, WILLIAM H. SEWARD. Hon. WILLIAM STUART, &c., &c., &c. Mr. Chase to Mr. Seward. TREASURY DEPARTMENT, August 13, 1862. SIR: I enclose the report of the collector of New York, made in accordance with my directions of the 5th instant, sent to him at your instance, moyed by a letter from the Hon. Mr. Stuart, acting minister of her Britannic Majesty. The action of the collector appears to have been in strict conformity with my instructions of the 23d May, 1862, and, of course, receives the approbation of this department. With great respect, S. P. CHASE, Secretary of the Treasury. CUSTOM-HOUSE, NEW YORK, Collector's Office, August 9, 1862. SIR: I have the honor to acknowledge the receipt of your communication of the 5th instant, enclosing letters and papers from the Hon. Wm. H. Seward, Secretary of State, and the Hon. Mr. Stuart, her Britannic Majesty's acting minister, relative to the prohibition by me of shipments of goods to, and the clearances of vessels for, Nassau, N. P., and other ports in the Bahamas, and have the honor to submit the following statement of facts bearing on the subject: Referring to your letter dated at the Treasury Department, May 23, 1862, in which I am instructed “to refuse clearances to all vessels which, whatever their ostensible destination, are believed by me, on satisfactory grounds, to be intended for ports or places in possession or under the control of insurgents against the United States, or when there is imminent danger that the goods, wares, or merchandise of whatever description laden on board such vessel will fall into the possession or under the control of such insurgents." I have endeavored to exercise a proper discretion in the several cases presented to me, and have the honor to present the following in justification of my course. It may not be inappropriate here to enumerate some of the leading causes which have led to this state of affairs, of which complaint is now made by her Britannic Majesty's government, and I would, therefore, call your attention to the significant fact that the trade of this port with the British West Indies during the last year exceeds by far that of any former period, a comparative statement of the exports to that point during the first quarters of the years 1860 and 1862 showing an excess in favor of the latter period of four hundred thousand dollars. Extraordinarily large shipments of goods to Nassau, the principal port in said islands, have been made during the last year, of a character entirely different from those of former years, and such as were not suited to the wants of its inhabitants. Nearly all vessels arriving here from that port were freighted with the productions of the rebel States, and no attempt at concealment has been made by any gov of the traders with regard to the place of their origin, or the manner of their reaching Nassau. Traders becoming more bold, their vessels were freighted here with cargoes suited to the wants of the States in rebellion against the ernment, were cleared for Nassau, and in some instances went directly to Brazos, on the Rio Grande, in Texas, or, in another case, the British schooner Time, owned by H. Adderly & Co., of Nassau, as shown by the letter of our consul at that port, dated on the 6th May last, discharged her entire cargo into the rebel steamer Cecile, then lying in the harbor of that port, awaiting a favorable opportunity to run the blockade at Charleston. The case of the British schooner Sophia, which cleared for Nassau about the 20th of June last, is another instance of forwarding a cargo direct from this to a rebel port. Cargoes of coal, shipped at this port for Nassau, have in like manner reached the same destination. Intercepted correspondence and papers, among which were articles of co-partnership between members of a firm having a mercantile house in London, under the name of Jorss & North, a branch house at Charleston, under the firm of Beach & Root, and an agency or depot at Nassau, were found or the person of one of the members of said firm in London, then on his way to Nassau with instructions how to proceed on his arrival, naming the parties resident there who would be most likely to aid him successfully in transhipping his goods in small vessels, in case their steamers, then on their way, were unable to run the blockade. It was also shown by bills of lading, &c., that about one hundred and forty thousand dollars worth of goods had been shipped by their house in London in the British steamers Memphis and Pacific, in joint account, the proceeds of the sale of said goods at Charleston to be used in the purchase of a return cargo of cotton. Other letters from merchants at Nassau to their agents here have come into our possession, in which were instructions to forward certain goods suited to the peculiar trade of the island at that time, and intimating that no trouble was experienced in disposing of them at large prices to the agents of the rebels. Advices from the New York agent showed that, not being able to ship coal at this port for Nassau, he had chartered a British schooner for a port in the British provinces of North America for the purpose of taking a cargo to that port for the use of those who were interested in and carrying on trade with the rebel States. The first-mentioned letters and papers I have the honor to enclose herewith; the latter have been restored to their owners. It is a very generally acknowledged fact, and fully established by letters from our consul, as well as by the marine reports of the Nassau papers, that the port of Nassau has been for the last year, and still is, a rendezvous for both armed and unarmed vessels sailing under the British flag from ports of England, laden with arms, ammunition, and assorted cargoes, their destination, in many instances, as shown by the letters and papers referred to above, being Charleston or some other port in the so-called Confederate States. The steamer Memphis, recently brought into this port as a prize, was reported to me on the 12th June last as then lying at the port of Nassau with a valuable cargo, intending to run the blockade; and her capture laden with cotton from Charleston, is deemed sufficient evidence that she had succeeded in landing her cargo of contraband goods at that port, as intended by its owners on her clearance from Liverpool, where it was insured by Messrs. Jorss & North, at Lloyd's, at about twenty per cent. premium. The British steamer Herald, under the command of Captain Coxetter, late of the rebel privateer Jeff. Davis, reported from Charleston in the Nassau Guardian of a late date, is another instance of utter disregard of neutrality proclaimed by her Majesty's government, and at the present date it not unfrequently happens that ten or more steamers wearing the British flag are lying at Nassau at one and the same time. It is a fact worthy of notice that the trade between this port and Nassau is carried on almost exclusively in British vessels belonging at that port, and that these consignments are made in most cases to houses known and acknowledged to be in the interests of the rebels, the members of which take every oppor . tunity to show their contempt for the government of the United States, and whose warehouses are made the depot for goods awaiting shipment to rebel ports on the order and under the direction of rebel agents resident at Nassau, among which may be named John B. Lafitte, agent for the house of Trenholm, Frazer & Co., of Liverpool and Charleston, and Captain Maffitt, late of the United States navy, now special navy agent for the so-called confederate government. Her Majesty's government expresses the opinion that a distinction ought to be made between shipments of coal and "articles of innocent use," enumerating dry goods, cotton fabrics, shoes, medical drugs, flour and provisions. While acknowledging the soundness of the argument that there should be such a distinction, I also acknowledge my inability to make the requisite discrimination. For example, the rebel steamer Nashville, lying at one of the British West Indies islands, is supplied by the British ship Mohawk with coal, by which she is enabled to run the blockade, and the articles of "innocent use" we are called upon to supply to the Nassau market, to be transferred to her, or some other vessel systematically using the British flag to advance secession interests, are sulphate of quinine in quantities of one thousand ounces, chloroform by the hundred pounds, surgical instruments by the dozen cases, cotton cards by the hundred dozen, and uniforms or clothing and shoes for au army. Her Majesty's government labors under a serious misapprehension when stating that the authorities of the New York custom-house have attempted to interfere with the ordinary and legitimate trade to the Bahamas. It is only in cases of extraordinary shipments, or when we have had good and sufficient reasons, founded on the statements of merchants here engaged in the trade, for the belief that they were intended for interdicted ports in the southern States, that we have intervened for the protection of the interests of our government by prohibition, or by requiring bonds that the goods thus sought to be shipped should not be permitted to be sent to ports in the insurgent States in aid of the existing rebellion, and in no case has any discrimination been made by me in favor of American vessels or American citizens over those of any other nationality. Your instructions relative to our action in future cases arising out of this question, and your request that we shall furnish the Treasury Department with a statement setting forth our reasons for refusing clearances without the usual bond for goods not deemed contraband of war to any British port, will receive due attention. I have the honor to be, very respectfully, your obedient servant, HIRAM BARNEY, Collector. 30 GREAT WINchester Street, March 21, 1862. GENTLEMEN: I will take your freight-say 290 tons, the whole not to weigh more than 130 tons, more or less-at the rate of £13, with customary primage. To deliver the same cargo, with all possible despatch, at Charleston or some other confederate port. Yours, obediently, Messrs. JORSS & NORTH, Leeds. JO. LAWSON Supercargo to be furnished with a first class passage, free of charge. J. L P. S.-Payment of freight and insurance to be paid by bill of four months drawn on Jorss & Worth. J. L. No. 2.] 27 LEADENHALL STREET, LONDON, March 21, 1862. GENTLEMEN: In consideration of your undertaking to ship by my vessel (the Pacific) 250 tons or more of freight by Tuesday next, if possible, the 25th instant, I hereby agree to effect insurance to the extent of £25,000, and more, if possible, at the best current rate at Lloyd's. I am, gentlemen, yours, faithfully, Messrs. JORSS & NORTH, Leeds. A. T. CLARK. Underwriter's name shall be such as may be satisfactory to insured. A. T. C. 27 LEADENHALL STREET, LONDON, No. 3.] April 8, 1862. DEAR SIR: I acknowledge to have received bills of lading from you to a port in the Confederate States, which I undertake to get insured and returned to you, leaving one copy on board with your brother. Mr. F. NORTH. Yours, faithfully, A. T. CLARK. No. 4.] LONDON, April 8, 1862. Received from Messrs. Jorss & North, of Leeds, their acceptances, at four months from the 5th instant, for the sum of £2,655, which, with £1,000 in bills drawn by Mr. Huxley & Co., to be handed over to me as per order of Mr. North, makes the total amount of freight account per Pacific £3,655 15s. 3d A. T. CLARK & CO., Broker for Pacific. No. 5.] PACIFIC, Falmouth, April 14, 1862—3 p. m. MY DEAR SIR: Clark has dodged me and avoided signing—i. e., indorsing the bills of lading for a confederate port. He has never once alluded to the subject, and I confess I am astounded at his temerity. He obtained the bills from Mr. North under a threat, and then deceived him by promising through bills of lading. I confess that I feared this, as I told you and Mr. Barkley at the time; but I did not think he would dare to leave England without giving said bills, signed by some one. You must at once apply to Clark for the promised through bills of lading which Mr. North told me he had promised by letter from Clark. I will try to carry everything out properly, but fear I have much to contend with. Mr. North and several others will aid me here. Adieu, JO. LAWSON. Remarks. On Friday, March 21, 1862, at about 2 p. m., the agreement No. 1 was written and signed by Lawson, whereupon he, North, and myself called upon Clark, to whom L. submitted the contract. After carefully perusing the same, Clark objected to the time of payment being four months, saying he had instructed L. to accept three months' bills of Jorss & North. He, however, consented to the terms, and wrote out the insurance agreement No. 2 at about 4 p. m., the shipment by the Pacific being conditioned, viz: that Clark should be able to effect the required amount of insurance and on the four months' bills. This, he stated, could be easily done at from 17 to 20 G. per cent., possibly less; and thereby obtained the freight. Query: By the above, does not Clark indorse, approve, and confirm the contract of Lawson's, and is he not as much bound thereby to deliver the goods in the confederacy as if he himself had signed the contract or given a through set of bills of lading? If this be not sufficient, is he not then committed, by receiving the acceptances of Jorss & North for £3,655-being at the rate of £13 per ton, same as stipulated by L., and, the current rate charged for a confederate port? If bound by this contract, then he must carry the goods through with all possible despatch, or he becomes liable for damages, and upon a suit in the south his ship can be tied up till the claim is satisfied. If the acceptances of Jorss & North are in his possession at maturity, payment can be resisted, either by want of consideration or non-fulfilment of contract. The promise in letter No. 3 induced Mr. North to give the acceptances which are acknowledged in No. 4, but as this promise was not performed, (vide Lawson's letter, No. 5,) can he not, under a charge of "false pretence," be restrained from using the papers? The greater part are in his possession. J. N. BEACH. MY DEAR JORSS: I have sent all the papers in re Clark to North, and herewith I hand you copies of the papers you may need. I would advise you, while on board ship, to make exact copies of what I have here written, so that (if necessary) you may send them to Root immediately upon your arrival at Nassau. Clark has called to say that he expects to get the steam yacht; and if so, he, Scott, and some others will go over in her in some four or five days, and he will want you to go too; but I think your own plan much better. If he signs the agreement we have prepared, and gives us the other undertakings, he can take the ship across at once, and it is not material whether you are there or not. If he does not effect this arrangement, he probably will not wish to run, or, at least, before you arrive out. I think, if he starts at the appointed time, you will reach there first, via New York; and should he not start at all, but send out an agent by the Liverpool steamer, where will you be then, if you wait for him? advice is, carry out your own plan, independent of him. Your duties at Nassau will be very light and pleasant if Clark obtains the insurance and takes the ship over to a confederate port; but if you leave on Saturday, and the arrangement is not perfected before you go, your course will be one of some anxiety. With all duc deference to your good judgment, I submit the following for your consideration: My Being advised by Mr. North you will, of course, know your legal rights and the better way of securing them. If not in conflict with his views, I would first call upon Messrs. Henry Adderley & Co., John B. Lafitte, esq., (agents of Fraser, T. & Co.,) and confer freely with them. You will then have all the local information you need to act wisely. I would then insist upon the ship completing her voyage at once, and, if not done, I will duly protect and then remove the whole or part of the goods, and, sending them over by different vessels, lessen the risk of capture. This plan seems advisable from this point; but possibly, if on the spot, it would be declined. I can only hope the difficulties may be removed by Clark's agreement to-morrow, yet I have some doubts about it. I wish you would write to Root fully and freely as soon as you can; send him samples; also full descriptions of both the cargoes, and he will be the better able to effect sales. To-morrow I will write to you at the "Adelphi Hotel." Bache will do £3,000 on freight and £5,000 on merchandise. How will you do about paying him the premium? I wish to send F., T. & Co. their policy for £5,000, also the Galbraith policy as per my agreement. If Clark does not set |