Geneva arbitration

"I am told that this operation is now going on as fast as ever. [475] Now, I hold this to be the most serious aspect of the question of our relations with America. I care very little about what newspapers may write, or orators may utter, on one side or the other. We may balance off an inflammatory speech from an honorable member here against a similar speech made in the Congress at Washington. We may pair off a leading article published in New York against one published in London; but little consequence, I suspect, would be attached to either. The two countries, I hope, would discount these incendiary articles, or these incendiary harangues, at their proper value. But what I do fear in the relations between these two nations of the same race, is the heaping up of a gigantic material grievance, such as we are now accumulating by the transactions connected with these cruisers; because there is a vast amount of individual suffering, personal wrong, and personal rancor arising out of this matter, and that in a country where popular feeling rules in public affairs. I am not sure that any legislation can meet this question. What with the high rate of insurance, what with these captures, and what with the rapid transfer of tonnage to British capitalists, you have virtually made valueless that vast property. Why, if you had gone and helped *the Con- [476] federates by bombarding all the accessible sea-port towns of America, a few lives might have been lost which, as it is, have not been sacrificed, but you could hardly have done more injury in destroying property than you have done by these few cruisers."

insurance.

With the reservations already stated, the United States present the Enhanced rates of amount, so far as it has come to their knowledge, of the enhanced payments of insurance, caused by the acts of the insurgent cruisers. All of these cruisers came from England; and should the Tribunal find Great Britain responsible for the injuries caused by their acts, it cannot be denied that the war risk was the result of their dispatch from British ports. The amount of this injury, so far as yet known to the United States, appears in Vol. VII. It is impossible for the United States to determine, it is perhaps impossible for any one to estimate with accuracy, the vast injury which these cruisers caused in prolonging the war. The great exertions which were made in the months of April, May, and June, 1863, to secure arms and ammunition for immediate use in Richmond have already been noted. Letter followed letter in rapid succession, urging Walker to forward the desired articles without delay. The energetic measures which Walker took to obtain *coal [477] to enable him to comply with his instructions have been commented on. The insurrection was at that moment gathering itself up for a blow which was intended to be final and decisive.

Prolongation of the

War.

On the 29th of April in that year Grant, having taken an army past the fortifications of Vicksburg, began the attack upon Grand Gulf, and from that day conducted his operations with such vigor that, by the 21st of May he had defeated the armies of such insurgents in five pitched battles, and had commenced the investment of Vicksburg. In the Atlantic States the fortunes of the United States had been less favorable. The Army of the Potomac under Hooker had met with a decided reverse at Chancellorsville, and was resting inactive after the failure.

The military authories at Richmond, having received the supplies which Walker had forwarded, selected this moment for a blow in Pennsylvania, which was intended at once to relieve Vicksburg, and decide the contest. History tells how utterly they failed. After three days of bloody fighting, Lee retired from Gettysburg discomfited. The same day Grant entered Vicksburg and opened the Mississippi.

The in

The

The 4th day of July, 1863, saw the aggressive force on land of the insurrection crushed. From that day its only hope lay in pro[478] longing a defense *until, by the continuance of the permitted violations of British neutrality by the insurgents, the United States should become involved in a war with Great Britain. surgents had, at that time, good reason to look for that result. Florida, the Alabama, the Georgia had left British ports for the purpose of carrying on war against the United States, and were, nevertheless, received with unusual honors and hospitality in all the colonial ports of Great Britain. Only ten days before the battle of Gettysburg, the judge who presided at the trial of the Alexandra had instructed the jury that no law or duty of Great Britain had been violated in the construction and dispatch of the Alabama. About three months before that time Her Majesty's Government had decided that they would not recommend Parliament to enact a more effective law for the preservation of neutrality. Laird was constructing the rams in Liverpool under the exist ing interpretation of the law, and the British Government was refusing to interfere with them. The Chancellor of the Exchequer, five days be fore the battle of Gettysburg, had declared in the House of Commons, speaking not individually, but in the plural," We do not believe that the restoration of the American Union by force is attainable." Under

these circumstances the insurgents made great exertions to keep [479] the Florida, the Alabama, and the Georgia afloat, and to stimu

late their officers and crews to renewed destruction of the commerce of the United States. They counted, not without reason, upon inflaming popular passion in the United States by the continuance of these acts, until the people should force the Government into a retaliation upon Great Britain, the real author of their woes. In pursuance of this policy they withdrew their military forces within the lines of Richmond, and poured money into Bullock's hands to keep afloat and increase his British-built navy, and to send it into the most distant seas in pursuit of the merchant marine of the United States.

Thus the Tribunal will see that, after the battle of Gettysburg, the offensive operations of the insurgents were conducted only at sea, through the cruisers; and observing that the war was prolonged for that purpose, will be able to determine whether Great Britain ought not, in equity, to reimburse to the United States the expenses thereby entailed upon them.

On all these points evidence is presented which will enable the Tribunal to ascertain and determine the amount of the sev- Interest claimed to eral losses and injuries complained of. To the amount thus the date of payment.

shown should be added interest upon the claims to the day when [480] the award is payable by the terms of the Treaty, *namely, twelve

months after the date of the award. The usual legal rate of interest in the city of New York, where most of the claims of individuals are held, is seven per cent. per annum. In some of the States it is greater; in few of them less. The United States make a claim for interest at that rate. The computation of the interest should be made from an average day to be determined. The United States suggest the 1st day of July, 1863, as the most equitable day.

awarded.

They earnestly hope that the Tribunal will exercise the power conferred upon it to award a sum in gross to be paid by Great Reasons why a Britain to the United States. The injuries of which the gross sum should be United States complain were committed many years since. The original wrongs to the sufferers by the acts of the insurgent cruisers have been increased by the delay in making reparation. It will be

unjust to impose further delay, and the expense of presenting claims to another Tribunal, if the evidence which the United States have the honor to present for the consideration of these Arbitrators shall prove to be sufficient to enable them to determine what sum in gross would be a just compensation to the United States for the injuries and losses of which they complain.

Above all it is in the highest interest of the two great Powers which appear at this bar, that the causes of difference which [481] have been hereinbefore set forth should be speedily and forever set at rest. The United States entertain a confident expectation that Her Majesty's Government will concur with them in this opinion.

complains of insurgent operations in British jurisdiction...

says insurgent government is interested in blockade-running 282-284 114-115 further representations as to blockade-runners.

288

117

representations as to the Honduras....

289

117

notifies Earl Russell that sale of Sumter will not be recognized
informs Earl Russell of the character of the Florida....

abstract of those instructions

complains to Earl Russell of enlistments for the Georgia
complains to Earl Russell of the Georgia
complains to Earl Russell about the Shenandoah.
complains to Earl Russell about the Laurel......

ADAMS, JOHN QUINCY:

correspondence regarding claims of Portugal.

ADMIRALTY AND COLONIAL INSTRUCTIONS:

of January 31, 1862, unfriendly to United States..........

brings to Earl Russell's notice treatment of Florida in colonies
calls Earl Russell's attention to the Alabama..
sends Earl Russell affidavits regarding Alabama.
confers with Earl Russell about the Alabama...
complains to Earl Russell of the Georgia..