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Law and the relations between Governments another.' The Secretary of the Treasury, Mr. Chase, engaged on an electioneering tour, distinguished himself by spirited speeches, talking of 'taking Old Mother England by the hair and giving her a good shaking,' and was himself outdone in rancour against England by another distinguished politician, Mr. Sumner. There was in fact no sign of change in the feeling of the people at large towards us, and the visit of a Russian squadron to New York was made the occasion of an anti-British and anti-French demonstration.

      Considering that the war had now lasted for several years, it seems rather remarkable that the British Government had not thought it worth while to send military or naval officers to watch the operations, but judging from the following letter, the idea never seems to have occurred that there was anything to learn.

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      Lord Lyons to Lord Russell.

       Washington, Nov. 3, 1863.

      I have no news of importance—political or military to write to-day. The crisis at Chattanooga has not yet taken place, so far as we know.

      I doubt whether people in Europe are aware of the extent of the progress of this Country in military strength or of the preparations which have been made for the contingency of a War with an European Power. It is impossible for me to undertake to give anything like detailed information on the subject; but it may be worth while for Her Majesty's Government to consider whether it is important for them to know what is really being done, and if so, what measures will be best with a view to their obtaining regularly information practically useful. I have no fancy for having a military or Naval Attaché—and I am not certain how the appointment of one might be taken here. It might create suspicion—on the other hand it might be taken as a compliment. I am inclined to think that Officers unconnected with the Legation sent quietly, but by no means secretly, would learn most. But if the Legation is to be depended upon for the information, it is absolutely necessary that there should be in it some one having a professional knowledge both of naval and military matters. I myself know as little of such matters as any man—and were it otherwise, I have as much proper Diplomatic business to do as I can manage. The correspondence with Mr. Seward, which requires minute care in many cases, grows more and more burdensome. New cases arise daily, and the old ones never seem to come to an end. I have had considerably more than nine hundred notes from Mr. Seward already this year.

      I don't think the Government here at all desires to pick a quarrel with us or with any European power, but the better prepared it is, the less manageable it will be.

      This suggestion was eventually acted upon as appears later.

      About this time, the mission to Europe of Messrs. Mason and Slidell having failed in its object, the Confederate Government resolved upon the expulsion of the British Consuls resident in the South, who were informed that they could no longer be permitted to exercise their functions, or even to reside within the limits of the Confederacy. Doubtless the active part the Consuls had taken in endeavouring to prevent the compulsory enlistment of British subjects contributed towards this action, but the ostensible reasons were, firstly, that they received their instructions from the British Minister residing in Washington, and secondly, that Mr. McGee, the Consul at Mobile, had been dismissed from his post because he had allowed specie intended for the payment of interest on a State debt to be shipped from that blockaded port to London on board of a British warship. In Lord Lyons's opinion the action of Mr. Jefferson Davis's Government appeared reasonable.

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      Lord Lyons to Lord Russell.

       Washington, Nov. 17, 1863.

      Mr. Walker has sent me a copy of his despatch to you enclosing Mr. Benjamin's letter to Mr. Slidell explaining the reasons to be given for the expulsion. The objection to the Consuls being under the orders of the Minister at Washington appears reasonable enough. As you know, I have all along been of opinion that the connexion between the Southern Consulates and the Legation was full of inconvenience. The objection to Mr. Cridland's appointment, that it was made by me, has, in fact, no other foundation than that your orders to Mr. Moore on the subject were sent through me; in transmitting them I took the precaution expressly to desire Mr. Moore to word the appointment as one coming from H.M. Government and not to mention me.

      Mr. Benjamin's lecture on the duty of Belligerents to pay their debts is totally beside the purpose. Of course no one could have wished more than I did that the British creditors should receive their money. I wished that all British subjects should be able to remove their property from the Confederate States, and most of all I wished that an unlimited amount of cotton should be exported. What I objected to was that a British Consul should engage himself in committing a breach of blockade, and that a British man of war, which had been admitted on the faith that she should carry away nothing but despatches, should carry through the Blockade the very article to the exportation of which the United States most objected. It is rather cool of Mr. Benjamin to say that the United States could not but have been glad that specie should be exported, when he knew that at the time the great anxiety of the Confederates was to get specie through the blockade to pay for their purchasers of warlike stores in Europe, and that the great anxiety of the United States was to prevent this.

      At the close of 1863 it became evident that the cause of the South was failing, but the reverses of the Confederates seemed only to stimulate them to fresh exertions, while President Davis's eloquent message in December proclaimed that the patriotism of the people was equal to every sacrifice demanded by their country's needs.

      In the preceding autumn, Mr. Seward, in pursuance of his laudable policy of conciliation, had suggested that the Reciprocity Treaty with Canada, which would expire shortly, might afford an opportunity of making a friendly demonstration. His suggestion was that the British Government should make inquiries from him on the subject of its renewal, but Lord Russell, who was prone to regard him with suspicion, had not responded to this advance with any favour. In the early part of 1864 it became evident that the treaty was in considerable danger, and the Canadian Government began to show signs of natural anxiety, especially in view of the fact that a hostile motion was pending in Congress. The following letters disclose the objections of the professional diplomatist to being saddled with amateur assistants.

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      Lord Lyons to Viscount Monck.

       Washington, Jan. 28, 1864.

      The Canadians appear to me to be acting unwisely about the Reciprocity Treaty at this moment. Their true policy is to keep as quiet about it as possible. The more they agitate, the more they convince people here that the Treaty is a good bargain for Canada and a bad bargain for the United States. The utmost we can ever dream of doing now is to stave off a successful motion in Congress calling upon the President to give the notice for abrogating the Treaty. I doubt whether we shall be able to do this, but our only chance lies in keeping quiet and endeavouring to induce the Executive Government to exert its influence unostentatiously against the motion. If the Executive Government can be induced to do so, it will be by considerations connected with its relations with the Imperial Government. The moment the question is treated as one between the United States and the Provinces, all hope of maintaining the Treaty vanishes.

      I cannot have a Canadian here supposed to be peculiarly in my confidence on the subject. This would impose upon me a responsibility which I cannot undertake. Directly there was the least appearance of a Canadian being here in any such position, I should feel bound to take decisive steps to show that the appearance was false. My own opinion is that the Canadians will only do themselves harm by coming lobbying here; but if they choose to do so, they must do it entirely independently of me, and I would suggest that any who came for this purpose should not be furnished with letters of introduction to me, and should be advised not to call upon me.

      At the same time, I think it right to say that I do not believe that we shall find it possible to maintain the Treaty long after the U.S. can abrogate it. The impression is very strong that it is a bad bargain for them, and they will probably give the notice very soon after the terms of the Treaty allow of their doing so, with a view perhaps to negotiating another. If matters reach this point, it will no doubt

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