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in question, to avoid all antagonistic feelings on the subject, and to smooth the way for the advantages which it is hoped may result from a remodelling of the reciprocity treaty.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

J. HUME BURNLEY. Hon. William H. SEWARD, 8c., &c., fc.

riscount Monck to Mr. Burnley.

QUEBEC, March 13, 1865. SIR: I have the honor to transmit copies of a letter addressed to me by the managing director of the Grand Trunk Railway Company, and an order which it is stated has been issued from the Treasury Department at Washington, respecting the mode of dealing with articles exported inland from Canada to the United States.

It is evident that the requisitions referred to in the order from the Treasury Department will, if enforced, very seriously interfere with the trade between the two countries.

I shall feel much obliged if you will bring this subject before the notice of the Secretary of State of the United States, with the view of ascertaining whether some such arrangement as that suggested by Mr. Bridges might not be found effectual for the protection of the revenue of the United States, without seriously impeding the course of trade. I have, &c.,

MONCK. J. HUME BURNLEY, Esq., &c., &c., &c.

Mr. Bridges to Viscount Monck.

GRAND TRUNK RAILWAY OF CANADA,

Managing Director's Office at Quebec, March 9, 1865. MY LORD: Referring to the interview which I had with you upon the subject of the orders lately issued from the Treasury Department at Washington, I now beg to enclose copy of communication addressed to the collectors at the different ports of entry of the United States where the different railway lines cross the frontier from Canada into the States.

This order, if intended to be enforced strictly, will have the effect of entirely stopping the flow of trade between the two countries, and will in effect put an end to the reciprocity treaty before it expires under the notice which is to be given for its termination. I have certainly myself not heard of any such threats as are referred to in the first clause of Mr. Sargeant's letter, and I think it could hardly have occurred that any such threats could have been made without its having been brought to the notice of the railway authorities.

The act of Congress to which Mr. Sargeant refers enacts, first, that all vessels, cars, or other envelopes (as the act expresses it) shall be unloaded at the first port of entry after arrival in the United States, and if upon examination by customs authorities found to be correct, allowed to proceed to their destination.

The second clause of the act appears to be intended as an alternative to this arrangement, and enacts that upon goods being put into a car at the place of export, it may, upon being sealed by a consul and accompanied by bis certificate in triplicate, pass the frontiers and proceed to its destination without being unloaded or disturbed.

The latter regulation, if attempted to be carried out, would in practice prevent almost completely the transport of goods or produce grown in Canada into the United States under the terms of the reciprocity treaty. The reason of this will be at once apparent when I state that freight of various kinds is shipped from about one hundred and fifty stations in Canada, and that there are only twelve consuls appointed by the United States government; such consuls, of course, being located in the principal cities and prominent points and the different stations upon the lines of railway being scattered through the country, and many of them at considerable distances from the residence of the consuls. This applies with considerable force to the district of country lying east of Montreal. There is a consul now at Quebec, and one lately appointed at Coaticoak, near the boundary, but between Montreal and Rivière du Loup. There are some forty stations, from all of which at the present time grain pur. chased by American buyers is being sent to Portland, and much of it going to Fortress Mon. roe and other places for the use of the American army.

If the United States government insist upon every car-load of this grain being inspected before it is allowed to leave a station by the consul, and sealed by him, and his certificate given that it is the growth and produce of Canada, it is quite clear that the existing consular machinery is entirely inadequate to enable such iegulations to be carried into effect, and of course, therefore, the only result must be that the traffic will be entirely stopped.

I have pointed out the mode in which this matter will operate, in order that your lordship, if you think it desirable, may communicate with the embassy at Washington, for the purpose of having the matter brought to the attention of the Secretary of State of the United States.

I need not say that although this matter is one of importance to the railway interests of the country, it is equally so to the producing classes, who, on the faith of the terms of the reciprocity treaty, have entered largely into the growth of articles which under that treaty can be forwarded to the United States. It is also, of course, important to the interests of Americans themselves, who I suppose, from the impossibility of getting the supplies they want in their own country, come to Canada for the purpose of securing that which they find necessary to get for their own internal consumption.

If I might make a suggestion, I think the authorities of the United States would, upon examination, find that the plan which has been in general adoption for some time back would meet the necessity of the case, as far as customs requirements are concerned, and would not at the same time interfere with the flow of trade. The plan i propose would be that consuls

I should be appointed at the frontier ports where the lines of railway pass from Canada into the United States; that they should be authorized to seal cars upon arrival there, (the cars, of course, having been locked during their journey to the frontier port,) and the contents of the car being vouched for by affidavit, made before a justice of the peace, of whom, of course, there are plenty in the neighborhood of each one of the railway stations in the country.

An affidavit of this kind, sworn to before a justice of the peace, would be evidence to the consul at the frontier that the produce of the car was the growth of Canada, and entitled to pass into the United States under the terms of the reciprocity treaty.

I don't, of course, make these remarks with any other intention than as a mere suggestion, which the authorities of the United States would, I think, find ample security against all possibility of difficulty. And if your lordship thinks the suggestion is one which would be likely to be acceptable, it could, I am quite satisfied, be carried out without any difficulty whatsoever.

If your lordship will be good enough to make a representation to Washington on the subject, we shall at any rate be enabled to understand precisely the position in which matters of irade are hereafter to stand, and whilst begging it to be understood that I do not make this communication in any spirit of complaint, at the same time desire to know exactly the footing upon which matters of trade regulations are to stand for the future. It is of course unnecessary to remind your lordship that smuggling, if it takes place at all from Canada into the United States, would not take the great lines of travel, such as railways, but would seek a less conspicuous mode of entrance into the United States. The history of smuggling, I believe, shows that it is carried on in the most secret way possible, and certainly not attempted to be carried on at points where there are a large staff of custom-house officers ready to see that nothing contraband passes there. I have, &c.,

C BRIDGES, Managing Director. His Excellency Viscount MONCK.

a

[Enclosure.]

TREASURY DEPARTMENT,

Office of Commissioner of Customs, February 15, 1865. SIR: I understand that the State Department has received information from several of our consuls in Canada that violent opposition is made by Canadians against the carrying into execution the 2d and 3d sections of the smuggling acts, and that threats even have been made, with a view to prevent the act being carried out by our consuls.

These sections of the act alluded to were intended to relieve owners of goods, wares, and merchandise, vessels, cars, &c., from the burden of having such vessels, cars, &c., unloaded and examin at the first stopping-place after entering United States, and I have now to instruct you to carry the 1st section of the smuggling act into full and vigorous effect in all cases.

If the people of Canada choose to quarrel with the remedial portion of the act, they may try the other portion awhile. You will hereafter enforce the law strictly.

N. SARGENT, Commissioner. P. S.-It will be advisable, probably, to give the railroad companies reasonable notice of this order before enforcing it.

N. S.

Mr. Burnley to Mr. Seward.

WASHINGTON, March 23, 1865. Sir: I have the honor to acknowledge the receipt of your note of the 21st instant, informing me that you were willing to make inquiries about Warrington, as suggested in my memorandum of the 17th instant.

I think it perhaps right to mention here what may have escaped you, that the spelling of the two names is different. The member of the Nassau firms spells his name Adderly, without an e at the end, whilst the gentleman alluded to in my note spells his name Adderley, with an e. This may have given rise to the mistake, and induced you to believe that they were one and the same person.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

J. HUME BURNLEY. Hon. William H. SEWARD, Sr., &c., fr.

Mr. Seward to Alr. Burnley.

Department of State,

Washington, March 23, 1865. SIR: I have the honor to acknowledge the receipt of your communication of the 7th instant, acquainting me, at the instance of the governor general of Canada, with the sale of the vessels Almandares and Pinero, the former to Spanish subjects at Havana, and the latter to a gentleman in Montreal, and to request that you will be so good as to cause my thanks to be conveyed to the governor general for the information.

I have the honor to be, with the highest consideration, sir, your obedient servant,

WILLIAM H. SEWARD. J. Hume BURNLEY, Esq., Sc., sc., sc.

Mr. Scward to Mr. Burnley.

DEPARTMENT OF State,

Washington, March 23, 1865. Sir: I have the honor to acknowledge the receipt of your communication of the 20th instant, inviting my attention to the inconvenience occasioned to British subjects domiciled at Charleston, South Carolina, by the conduct of Colonel Woodford, in requiring all persons who wish to remain in that city to comply with certain regulations, and to inform you that, as Charleston has been reclaimed by the military forces of the government, it is desirable to hold it by a force as small as possible, so as not to weaken the armies the field. The government does not think it unreasonable to insist that neutrals as well as enemies should retire from it, and leave there only those who, if required, will fight to defend their homes.

I have the honor to be, with the highest consideration, sir, your obedient servant,

WILLIAM H. SEWARD. J. HUME BURNLEY, Esq., fr., 8c., c.

Mr. Seward to Mr. Burnley.

DEPARTMENT OF STATE,

Washington, March 23, 1865. Sir: I have the honor to acknowledge the receipt of your note of the 18th instant, which is accompanied by a copy of a letter of the 28th ultimo, and an extract of an anterior statement addressed to you by Captain Scanlon, which you desire to be considered in connexion with his case already submitted to the Treasury Department for investigation. In reply I have the honor to state that a copy of that note and of its accompaniments has been placed before the Secretary of the Treasury for such disposition as you have indicated. I have the honor to be, with high consideration, sir, your obedient servant,

WILLIAM H. SEWARD. J. Home BURNLEY, Esq., &c., fr., gr.

Mr. Setcard to Mr. Burnley.

DEPARTMENT OF STATE,

Washington, March 24, 1865. Sir: I have the honor to acknowledge the receipt of your note of the 21st instant, informing me that Lord Lyons's health having obliged him to retire definitively from the post which he has held for the last six years as her Majesty's envoy extraordinary and minister plenipotentiary at Washington, the Queen bas been graciously pleased to appoint Sir Frederick Bruce, now her Majesty's envoy extraordinary and minister plenipotentiary at Pekin, to be his lordship's successor in that character; that you are instructed to notify this appointment to me, and to say that Sir Frederick Bruce will be instructed to repair to Washington so soon as he can make arrangements for so doing, and that her Majesty's government trust that the appointment will be in every way acceptable to the President of the United States.

In reply, I have the honor to state that before your note was received Mr. Adams had already informed us of the appointment, and that he had been instructed to express to Earl Russell the regret of this government for the retirement of Lord Lyons, and our satisfaction with the appointment of Sir Frederick Bruce.

I have the honor to be, with the highest consideration, sir, your obedient servant,

WILLIAM H. SEWARD. J. Hume BURNLEY, Esq., fr., $c., c.

Mr. Burnley to Mr. Seward.

WASHINGTON, March 26, 1865. SIR : With reference to your note of the 11th ultimo, on the subject of the fishery commission, organized under the first article of the treaty of the 5th of June, 1854, I am informed by her Majesty's principal secretary of state for foreign affairs that his lordship has instructed Mr. Home to report how soon is will be possible for him and his United States colleague to close this commission as established by the treaty.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

J. HUME BURNLEY. Hon. William H. SEWARD, gr., 8c., 8c.

Mr. Burnley to Mr. Seward.

WASHINGTON, March 27, 1865. SIR: I communicated to Earl Russell copy of your note of the 8th ultimo, relative to a reported organization at Cape Vincent, with a view to a marauding expedition upon Canadian territory, and I am now instructed by his lordship to convey to you the thanks of her Majesty's government for the information contained in that note.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

J. HUME BURNLEY. Hon. WILLIAM H. SEWARD, SC., c., Sc.

Mr. Seward to Mr. Burnley.

DEPARTMENT OF STATE,

Washington, March 28, 1865. Sir: I have the honor to acknowledge the receipt of your note of the 21st instant, requesting me to take into serious consideration the effects produced by a recent order alleged to have been issued from the Treasury Department relative to the conduct of trade between the United States and Canada, and to inform

you that it will occupy my attention. I have the honor to be, with the highest consideration, sir, your

obedient servant,

WILLIAM H. SEWARD. J. HUME BURNLEY, Esq., fr., dr., fc.

Mr. Seward to Mr. Burnley.

DEPARTMENT OF STATE,

Washington, March 29, 1865. Sir: I have the honor to acknowledge the receipt of your note of the 26th instant, informing me that Mr. Home had been instructed to report to her Majesty's government how soon it would be possible for bim and his colleague from the government to close the fishery commission as established by the treaty.

I have the honor to be, with the highest consideration, sir, your obedient servant,

WILLIAM H. SEWARD. J. HUME BURNLEY, Esq., &c., c., sc.

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