'strictly mercantile." It will not be denied that the sugars were intended for a foreign market, but the Government of the United States had said that with the port of New Orleans there should be no 'strictly mercantile" transaction. It would not be contended for a moment that the exchanging of specie for Confederate Treasury notes and sending the specie to Europe to enable the rebels to by arms and munitions of war there, were not a breach of the blockade, as well as violation of neutrality laws and the preir Majesties the Queen of Great Britain and the Emperor of France.

What distinguishes the two cases, save that drawing the sterling bills is a more safe and convenient way of eluding the laws than sending the bullion in specie, and thus assist the rebellion in the point of its utmost need? It will be claimed that to assist the rebellion was not the motive for these transactions. Granted causa argument.

It was done for the desire of gain, as doubtless all the violations of neutrality have been done by aliens during this war - a motive which is not sanctifying to acts by a foreigner - which if done by a subject would be treason or a high misdemeanor. My proclamation of May 1 assured respect to all persons and property that were respectable. It was not an amnesty to murderers, thieves, and criminals of deeper die or less heinousness, nor a mantle to cover the property of those aiders of the rebellion, whether citizen or alien, whom I might find here. If numbers of the foreign residents here have been engaged in aiding the rebellion, either directly or indirectly, from a spirit of gain, and they now find themselves objects of a watchful supervision by the authorities of the United States, they will console themselves with the reflection that they are only getting "the bitter with the sweet."

Nay more, if honest and quiet foreign citizens find themselves the objects of suspicion to, and even their honest acts subjects of, the investigation by the authorities of the United States to their inconvenience, they will upon reflection blame only the over rapacious and greedy of their own fellow-citizens who have by their aid to the rebellion brought distrust and suspicion over all.

Wishing to treat you, gentlemen, with every respect, I have set forth at length some of the reasons which have prompted my action.

There is one phrase in your letter which I do not understand, and cannot permit to pass without calling attention to it:

You say "the undersigned are disposed to waive all past proceedings," &c. What "proceedings" have you, or either of you, to "waive" if you do feel disposed so to do? What right have you in the matter? What authority is vested in you by the laws of nations or of this country which gives you the power to use such language to the representatives of the United States in a quasi official communication?

Commercial agents merely of a subordinate class, consuls have no power to waive or condone any proceedings, past or present, of the Government under whose protection they are permitted to reside so long as they behave well. If I have committed any wrong to Mr. Covas you have no power to "waive" or pardon the penalty or prevent his having redress. If he has committed any wrong to the United States, you have still less power to shield him from punishment.

I take leave to suggest as a possible explanation of this sentence that you have been so long dealing with a rebel confederation which

11 R R-SERIES III, VOL II