Stuart, the British chargé d'affaires here, of certain restrictions which the Treasury Department authorized to be placed upon the transhipment of merchandise at New York from steamers from England to vessels for Nassau. Explanations have been requested upon the subject, and I now enclose a copy of a letter of the 22d instant from the Secretary of the Treasury, and of its accompaniments, which will enable you to point out the necessity for the restrictions adverted to, should inquiry be made of you on that subject; and you may even invite that inquiry. I am, sir, your obedient servant, CHARLES FRANCIS ADAMS, Esq., &c., sc., &c. WILLIAM H. SEWARD. Mr. Chase to Mr. Seward. TREASURY DEPARTMENT, July 22, 1862. SIR: The communication of Mr. Stuart, British chargé d'affaires, relative to supposed unauthorized restrictions upon trade between New York and Nassau, having been referred for explanations to the collector of customs at New York, that officer has reported in relation thereto. I have the honor to transmit herewith a copy of his communication, together with a copy of a letter from the United States consul at Nassau to the collector. The paper of Mr. Stuart is also herewith returned. I have the honor to be, Hon. WILLIAM H. SEWARD. S. P. CHASE, Secretary of the Treasury. Mr. Barney to Mr. Chase. CUSTOM-HOUSE, NEW YORK, Collector's Office, July 16, 1862. SIR: I have the honor to acknowledge the receipt of your letter of the 9th instant, enclosing copy of communication of the acting British consul at New York to the Hon. Wm. Stuart, the British chargé d'affaires at Washington, together with a letter from Mr. Stuart to the honorable the Secretary of State of the United States, and papers explanatory of both documents, relative to supposed unauthorized restrictions upon trade between New York and Nassau, N. P. In relation to the matter of fact, and the opinions expressed thereupon in these documents, I have to report that the trade carried on between this port and Nassau in articles to be shipped, thence directly to places and persons in the Confederate States is of a magnitude only equalled by the barefaced notor ety of the transactions; and it will be observed that the fixed fact of the object of this trade is not denied by the high official functionaries who complain of restrictions being put thereon by the authorities of the United States. I have further to report that in each of the several cases set forth in the letter of the British consul the articles refused to be cleared were either contraband of war, or their shippers refused to give a bond that they should not be appropriated to aid and comfort the rebels of the Confederated States. The agent of Mr. Cunard refused to give this bond; so did all the other parties for whose goods a clearance was refused, as complained of by the consul. It is worthy of remark that, just in the same ratio as it is alleged by the shippers to be absurd to suppose that such and such articles could be intended for the use of the rebels, is the facility and impunity increased with which the bond may be given. In the case of the search of the schooner William H. Clear, the proceeding of the officers of the customs was founded upon information furnished by the police department of this city, and upon the presence on board, as a passenger, of the captain of a captured blockade-breaking British vessel. Considerable excitement naturally prevailed amongst all parties during the search, and it is altogether fair to presume that the offensive language which the captain refers to in his protest was an error and a fault on both sides. I transmit to you herewith a letter just received from the United States consul at Nassau. The evils detailed therein, it would seem, can only be remedied by the non-intercourse which the exaction of the objectionable bonds will in most instances produce. It will be observed that one of the names mentioned by the consul, viz: John C. Rahming, is the party to whom several of the letters forwarded to you in mine of the 12th instant are addressed. The papers enclosed in your letter are herewith returned. Hon. S. P. CHASE, Secretary of the Treasury. HIRAM BARNEY, Collector. Mr. Whiting to Mr. Barney. UNITED STATES CONSULATE, Nassau, N. P., July 6, 1862 SIR: I have the honor to inform you of the clearance at this port, to-day, of the British schooner Time, Saroyer, master, for New York. This vessel belongs to Henry Adderly & Co., the actual agents of the rebel States, and she has discharged her two last cargoes from New York directly into the secession steamers engaged in running the southern blockade. She came from New York about six weeks since, and put her cargo of coal into secession steamers, and some days since she discharged her whole cargo of provisions directly into the steamer Cecile, which sailed for Charleston the next day, but was fortunately totally wrecked at Abaco on the 14th ultimo. I append the names of Nassau merchants most largely and directly engaged in contraband trade with the southern ports, as well as being most openly abusive of the Union and the north, viz: Henry Adderly & Co., Henry Landers & Son, J. S. George, John C. Rahming & Co., C. R. Perfsall, I. J. Turtle, Alexander Johnson. I particularize those who omit no opportunity of sending supplies of arms, munitions of war, and medicines to the rebels. I have the honor to be, sir, &c., SIR: In answer to your despatch numbered 289, of the 5th of July, I now transmit copies of certain notes which have passed between the foreign office and this legation on the subject referred to. The printed portion of the correspondence is to be found in the third volume of the State Papers relat ing to foreign affairs, printed by Gales & Seaton, pages 576 to 581. I have the honor to be, sir, your obedient servant, Hon. WILLIAM H. SEWARD, CHARLES FRANCIS ADAMS. Secretary of State, Washington, D. C. [Enclosures.] 1. Earl Russell to Mr. Adams, July 4, 1862, for the date of the British demand for restoration of recaptured vessels. 2. Mr. Adams in reply to Lord Russell, July 7, 1862. 3. Lord Russell to Mr. Adams, July 21, 1862, with copy of Lord Grenville's note, of October 21, 1799, to Mr. Liston, and Mr. Pickering's note of May 3, 1800. Earl Russell to Mr. Adams. FOREIGN OFFICE, July 4, 1862. SIR: I should feel much obliged, if you have the means of doing so, if you would inform me of the exact date at which a demand, similar to that made by you in the case of the Emily St. Pierre, was made by the British government upon that of the United States for the restoration of a vessel seized by a British cruiser, but afterwards recaptured by the crew. I have the honor to be, with the highest consideration, sir, your most obedient humble servant, CHARLES FRANCIS ADAMS, Esq. RUSSELL. MY LORD: In answer to your lordship's note of the 4th instant, requesting me to inform you of the exact date at which a demand, similar to that made by me in the case of the Emily St. Pierre, was made by the British government upon that of the United States, I have the honor to transmit a copy of the note of Mr. Liston to Mr. Pickering, dated at Philadelphia, February 2, 1800, as I find it printed in the 3d volume of the State Papers of the United States relating to foreign affairs. I have the honor to be, my lord, your most obedient servant, Earl RUSSELL. : CHARLES FRANCIS ADAMS. Earl Russell to Mr. Adams. FOREIGN OFFICE, July 21, 1862. SIR: I beg to thank you for your letter of the 7th instant, communicating to me a copy, as printed in the 3d volume of the United States State Papers, of the note from Mr. Liston to Mr. Pickering, of the 2d of February, 1800, applying for the restoration of the three vessels: Experience, Lucy, and Fair Columbian. I have now the honor to enclose a copy of the instruction from Lord Grenville, under which Mr. Liston acted, and a copy of the note which was received from Mr. Pickering in reply. No law officer's opinion has been found, neither do there appear to have been any subsequent proceedings on the part of the British government. I have the honor to be, with the highest consideration, sir, your most obedient humble servant, CHARLES FRANCIS ADAMS, Esq. RUSSELL No. 14.] DOWNING STREET, October 21, 1799. SIR: I send you enclosed the copy of a letter which I have received from the lords commissioners of the admiralty, together with the papers to which it refers; and I have to signify to you his Majesty's pleasure that if the vessel mentioned in them, (the brig Experience,) should be brought into any port of the United States, you make a formal demand that she be immediately delivered up to you, together with the deserters and seamen who rescued her out of the possession of the prize master, in order that they may sent to Jamaica, or to some other of his Majesty's colonies, to be there dealt with agreeably to the law of nations. Mr. LISTON. be The Secretary of State to Mr. Liston. DEPARTMENT OF STATE, Philadelphia, May 3, 1800. SIR: In reference to your letter of the 2d February last, I soon after took occasion to intimate to you what appeared to be the President's way of thinking on the subject. I have now the honor to state to you that while, by the law of nations, the right of a belligerent power to capture and detain the merchant vessels of neutrals, on just suspicion of having on board enemy's property, or of carrying to such enemy any of the articles which are contraband of war, is unquestionable, no precedent is recollected, nor does any reason occur which should require the neutral to exert its power in aid of the right of the belligerent nation in such captures and detentions. It is conceived that, after warning its citizens or subjects of the legal consequences of carrying enemy's property or contraband goods, nothing can be demanded of the sovereign of the neutral nation but to remain passive. If, however, in the present case, the British captors of the brigantine Experience, Hewit, master; the ship Lucy, James Conolly, master, and the brigantine Fair Columbia, Edward Carey, master, have any right to the possession of those American vessels or their cargoes, in consequence of their capture and detention, but which you state to have been rescued by their masters from the captors, and carried into ports of the United States, the question is of a nature cognizable before the tribunals of justice, which are opened to hear the captors' complaints; and the proper officer will execute their decrees. You suggest that these rescues are an infringement of the law of nations. Permit me to assure you that any arguments which you shall offer to that point will receive a just attention. With regard to the British seamen and deserters who have assisted in the rescues, with great truth I am authorized to assure you that the government have no desire to retain them; but besides that the many months elapsed since those events, and the consequent dispersion of the men, would probably render their delivery impracticable, it is not known to be authorized by any law. This has brought into view your project of stipulations for the mutual delivery of deserters, whether seamen or soldiers; and I have now the honor to enclose a counter project by which you will see the objections which have occurred to your propositions. The President has been pleased to direct and empower me to negotiate with you on this subject, and it will afford him great pleasure if we can make a satisfactory arrange SIR: Since the date of my despatch (No. 187 of the 17th of July, I have to report that I received from Mr. Collier so decided an opinion in regard to the illegality of the proceedings at Liverpool, that I directed Mr. Dudley to proceed with the utmost vigor in the preparation of the necessary deposi |