[Extracts.]

Mr. Adams to Mr. Seward.

No. 352.]

Sir: I have the honor to transmit copies of two notes which I had addressed to Lord Russell, in reply to two of his, dated on the 9th, copies of which were sent to you last week.

* * * * * * * * * *

I shall proceed hereafter only upon the instructions which shall be forwarded to me from your department.

The position which his lordship has taken in regard to the invitation of a loan for the rebels appears to be directly in contravention of the law heretofore laid down in the British courts. Encouraged by the tone of the press, this loan has been announced in the markets of France and this country. Of its success there appears to be much doubt. But if successful, so far as I see, it liberates the government of the United States from all further obligations to facilitate the exportation of cotton. And if the statement be true that the rebel authorities have prohibited the transfer of cotton to any parties but themselves, it appears to justify the seizure and condemnation of it wherever it may be [Page 174] found. For virtually this makes all the cotton remaining under the rebel control security for money furnished to them in order to carry on the war.

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

CHARLES FRANCIS ADAMS.

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

[Enclosures.]

1. Mr. Adams to Lord Russell, March 14, 1863, on failure of his remonstrance to prevent the Sumter remaining at Liverpool.

2. Same to same, March 14, on rebel loan, and war-ship building in Great Britain.

Mr. Adams to Lord Russell.

My Lord: I have the honor to acknowledge the reception of your note of the 9th instant, in reply to mine of the 6th ultimo, respecting the case of the steamer Sumter. Your lordship apprises me that “her Majesty’s government, in the present state of their information on the subject, are unable to assume” that the ship lately “called the Sumter has not been legally and bona fide sold to a British owner for commercial purposes,” thereby leading me to infer that a sale, if so effected, would be regarded as valid by them, to change the property of a belligerent in a neutral port.

But I must ask pardon for calling your lordship’s attention to the fact that such has not been the construction heretofore put upon the law by the courts of Great Britain when applied to belligerent vessels of their own enemies in neutral ports. In the learned work on international law, published not long since by Mr. Robert Phillimore, the same eminent individual who has since been elevated to the position of a legal adviser of the crown, I find it expressly affirmed that the purchase of ships-of-war belonging to enemies is held in the British courts to be invalid. And, further, that though the purchase of merchant ships be not illegal, it is liable to great suspicion, and requires to be established by the clearest proof. Furthermore, should the ship, after such transfer, “be employed under the management of a hostile proprietor, the sale will be deemed merely colorable and collusive.”—(Commentaries on International Law, vol. 3, pp. 307–8.)

I think I have already furnished sufficient evidence to your lordship to show that the sale of this vessel is open to each and all of these objections, whether it be considered as a public or a private transaction. But her Majesty’s government, in furnishing shelter for so long a period to the Sumter in the harbor of Gibraltar, as a ship-of-war of a belligerent, has determined the character of the vessel. I have reason to believe that during the whole of the late war with Russia her Majesty’s government steadily refused to recognize the transfer of any vessels of that nation in neutral ports. It does not, then, seem unreasonable if, on behalf of my government, I respectfully venture to enter a remonstrance against the readinesss with which your lordship appears to recognize the validity of a transaction which the law not only presumes to carry fraud on its face, but the highest authority in Great Britain declares to be invalid altogether.

[Page 175]

I pray your lordship to accept the assurances of the highest consideration with which I have the honor to be, my lord, your most obedient servant,

CHARLES FRANCIS ADAMS.

Right Honorable Earl Russell, &c., &c., &c.

Mr. Adams to Lord Russell.

My Lord: I have the honor to acknowledge the reception of your lordship’s note of the 9th instant, in response to mine of the 9th ultimo, which laid before you copies of intercepted correspondence, “going,” as I alleged, “to show a deliberate attempt to establish within the limits of this kingdom a system of action in direct hostility to the government of the United States.” Your lordship observes that this correspondence does not appear to her Majesty’s government to contain any sufficient evidence of the allegation.

I beg leave only to suggest that if a direct appointment of an agent to establish himself in Great Britain for the purpose of making contracts for the construction and equipment of six iron-clad steamers, to be used in warring upon the United States; if the direct nomination of a British subject to act as resident agent for the raising of money to be used in payment of all this warlike outfit, and if the proposed establishment of naval officers in Great Britain for the purpose of superintending and constructing the vessels built to cut up the commerce of the United States do not show “a deliberate attempt to establish within the limits of this kingdom a system of action in direct hostility to the government of the United States,” then must I despair of ever being able to convince your lordship of the possibility of any violation of the neutrality of her Majesty’s territory short of a direct attack upon a vessel of the United States within the limits of her jurisdiction.

It is not without profound regret that I shall do myself the honor to transmit a copy of your lordship’s note for the consideration of my government. I need not say that the conviction is very general in the United States that the war has been continued and sustained by the insurgents for many months past mainly by the co-operation and assistance obtained from British subjects in her Majesty’s kingdom and its dependencies. That this impression has not been founded upon limited evidence, I think I may affirm on the strength of the many papers which I have heretofore had the honor to submit to your lordship’s consideration. Having thus far found her Majesty’s government unfortunately confessing itself without power to take the necessary steps to interpose effective obstacles to the prosecution of this system of warfare, notoriously established in some of the ports of the kingdom, I shall abstain for the future from adding, through the failure of representations on my part, to the irritation which this state of things is very naturally aggravating among my countrymen.

Should my government furnish me with instructions to renew the subject, I shall do myself the honor to lay them before your lordship at the earliest moment.

I pray your lordship to accept the assurances of the highest consideration with which I have the honor to be, my lord, your most obedient servant,

CHARLES FRANCIS ADAMS.

Right Hon. Earl Russell, &c., &c., &c.

[Page 176]

“Southern Aid” movement in England.

PRELIMINARY PROSPECTUS.

The London and Confederate States Bankcapital £2,000,000, (with power to increase this amount.)

In 20,000 shares of £100 each. Deposit £2 per share, with a further deposit on allotment of £2.

In organizing the proposed London and Confederate States Bank, it is assumed that the recognition of the southern States must ultimately, if not even very shortly, be an accomplished fact.

It is, therefore, thought desirable that preliminary measures should at once be taken to form an establishment, which will be prepared to commence operations on the resumption of trade.

It is confidently felt and openly asserted that every effort will be made by the mercantile community of the south to carry on their financial and export operations entirely independent of previously existing channels, and that New York will cease to be the medium through which shipments and financial business has hitherto been conducted.

Norfolk, from the excellence of its harbor, facility of approach, depth of water, and salubrity of its position, will afford equal, if not superior, advantages to New York, and will likely take the lead for passenger traffic and postal arrangements with mail steamers.

Wilmington, Charleston, Mobile, and Savannah offer the readier and cheaper despatch of the more bulky articles, as cotton, grain, &c., &c., whilst New Orleans will continue to forward the huge supplies floated down the Mississippi.

A further encouragement for the immediate prosecution of a scheme of this nature is to be found in the hope and expectation that any assistance and countenance given to the Confederate States before their internal troubles have terminated will, at a future time, tend to cement those good feelings which are so strongly entertained towards them, and which so many in this country earnestly desire should be mutual.