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a deduction of only 3 per cent, which is retained for the government. The bonds lie unissued in the custody of the revenue officers; while the debentures are an assignable and transferable security, capable of being recovered by a summary process; and should the importer fail, enjoying a priority before all private demands. The result of the whole operation, therefore, is, that the government lends to the private credit of the merchant the character of a public security, for his bonds deposited at the custom-house, and receives 3 per cent, on the amount of these bonds in return for the accommodation which it affords. But excellently as this system is adopted to the present situation of America, it destroys entirely as evidence of a bona fide importation, the proof of the duties having been paid or secured in the United States according to Jaw; for the law of the United States does not require, that the duties should be paid in the first instance, and though secured by bonds, these bonds, with the trifling deduction of 3 per cent. are retired, not by payments in money, but by producing the corresponding debentures, which in the mean time have been negotiated and converted into money. Our courts, therefore, acted in perfect consis. tence with the principle of their former decisions, when, these facts being made known to them, they rfused any longer to admit the payment of duties in America as a proof of a bona fide importation. But, on the other hand, the merchants of America, who without Jooking to the legal grounds of our former decisions, had trusted to

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lord Hawkesbury's communication, informing their government, that

landing the goods and paying the duties legalized the trade," and had in consequence embarked their capital in a commerce, which they were taught from such high autho rity to consider as a legal and permitted trade, when they saw their vessels captured by our cruizers without any previous warning, and brought into our ports for adjudication, naturally complained of the violence and inconsistency of our conduct, and accused us loudly of robbery and injustice. Meetings took place in all the principal commercial cities of America; declarations and resolutions were voted; and petitions and remonstrances addressed to the president and legislature. Congress, as was natural, caught the flame, with which it was surrounded, and after several injudicious, and inflammatory resolutions, passed a non-importation act against the manufactures of Great Britain, to take effect on the 15th of next November. In the mean time the commissioners sent to negotiate with Great Britain, were instructed to obtain from her government some clear and precise rule for regulating their trade with the colonies of the enemy, not liable to be changed by orders of council or instructions te cruizers, and not exposed to the uncertainty of determinations respecting the intention of parties.

The third ground of complaint on the part of the Americans was of infinitely less importance than the others, and their demand to have their maritime jurisdiction defined and respected, was so just and reasonable, that no objection could be made to it. An unfortunate April 18th.

accident,

accident, in which an American seaman happened to be killed, within sight of New York, * by a shot from the British armed vessel, the Leander, had drawn attention to this subject and rendered some regulation indispensable; but no difficulty could occur in settling a point, which was already settled by the law of nations. The affair of the Leander having taken place during the elections at New York, great use was made of it by the federal party, to excite odium against the president, and bring discredit upon his administration, on pretence that foreigners were encouraged to commit such outrages, by their knowledge of the weakness and timidity of his government. To counteract these designs Mr. Jefferson issued a violent proclamation, accusing of murder the captain of the Leander, and prohibiting that and some other British vessels from entering the harbours, or remaining within the jurisdictional limits of the United States. + The captain of the Leander was afterwards tried in England for the death of the American seaman and acquitted.

As the conferences, which were held in London for the adjustment of these differences, by Mr. Monroe and Mr. Pinkney on the part of the United States, and by lord Holland and lord Auckland on the part of Great Britain, though brought to a conclusion before the close of the present year, terminated in a treaty, from which the president of the United States thought proper to withhold his ratification, it will be unnecessary for us to enter minutely into the results of the negotiation. It appears,

* April 25th.

however, from the papers since published and laid before parliament, that the commissioners on both sides were animated by a sincere desire to establish a firm and lasting friendship between the two countries, on terms the most advantageous to both. And, considering the state of public opinion in America, and the instructions which they appear to have received from their government, the American commissioners, in particular, evinced in the strongest manner their disposition to conciliation, when after many fruitless conferences held in the hope of devising some adequate substitute for the practice of impressing on the high seas, they consented, contrary as it appears to their instructions, to proceed in the other articles of the treaty, without any further satisfaction upon this head, than an official paper from lord Holland and lord Auckland, pledging the government of Great Britain, "to issue instructions for the observance of the greatest caution in the impressing of British seamen, and of the greatest care to preserve citizens of the United States from any molesta. tion or injury, and to afford imme diate redress upon any representation of injury sustained by them," and engaging besides, at any future period, "to entertain the discussion of any plan that should be devised to secure the interests of both states without any injury to rights to which they are respectively attached."

In the other questions between the two countries the negotiators were more fortunate in bringing their labours to a successful issue. ↑ May Sd.

Nov. 8th.

On

On the subject of the circuitous trade permitted to the United States between the colonies of the enemy and other parts of the world en article was framed, * which sa isfied the American commissioners, by substituting a clear and precise rule for the regulation of that commerce, in place of the uncertain and changeable system under which it had hitherto been conducted. The principle of this article was taken from lord Hawkesbury's communication to Mr. Rufus King, defining the difference between a continuous and an interrupted voyage; but besides requiring, as in that communication, that the goods should be landed and the duties paid in the neutral country, this article expressly stipulated, that on re-exportation here should remain after the draw back a duty to be paid of one per cent. ad valorem on all articles of the growth, produce and manufacture of Europe,

* Article 11th.

The mari

and on all articles of colonial produce a duty of not less than two per cent. ad valorem. time jurisdiction of the United States was guaranteed by another a ticle † against the alledged encroachments and violations of his majesty's cruizers, and on account of the peculiar circumstances of the American coast, an extension of maritime jurisdiction to the distance of five miles from shore was mutually conceded by both parties in the American seas, on certain conditions and with certain limitations expressed in the treaty. On the other articles of the treaty, for the reason already given, we think it unnecessary to dilate; and have therefore only to add, that the commercial stipulations contained in it, appear to have been framed on the fairest and most liberal principles of reciprocal advantage and utility to the two countries.

+ Article 12th.

CHAP. XIII.

East India Affairs-Death of Marquis Cornwallis-succeeded by Sir G. Barlow-Peace with Scindia and Holkar-Massacre at VelloreHonours to the Memory of Marquis Cornwallis-Recall of Sir G. Barlow-Appointment of Lord Minto to be his Successor-Last Illness and Death of Mr. Fox-Remarks on some Parts of his Character-Changes in the Administration occasioned by his Death-Dissolution of Parliament -General Election-Affairs of Ireland.

THE

HE appointment of marquis Cornwallis to be governor gene. ral of Bengal, had given universal satisfaction in England, and was calculated to produce the most beneficial consequences in India. Much was expected from his judgment and experience, and more from his integrity and moderation. In his former ad. ministration of our Indian empire, he had added to the glory of our arms and increased the security of our power, without alarming the jealousy of the native princes, or provoking them to combine in alliances for ourdestruction. With his military and political successes he had united the higher glory of consulting the happiness and promoting the welfare of the people committed to his care, by the wisdom and benevolence of his political institutions, and by the equity and mildness of his government. He was now deputed to India in different and more critical circumstances. After a long

and unaccountable acquiescence in a system diametrically the reverse of his, the government of India had recourse to him to repair the mischiefs of inordinate ambition, and boundless prodigality; to con solidate conquests pursued in defi ance of solemn and repeated declarations of the legislature; to introduce order and regularity into finances exhausted and dilapi dated by every species of waste and profusion; to restore peace to nations harassed and worn out by a succession of destructive and sanguinary wars; and to inspire confidence in those, who had been taught by a sad experience, to view every act of the British government in India, as part of a scheme to destroy their liberties and independence, under the insulting mask of friendship, protection and alliance.

Such were the objects, for which at so advanced a period of life, and with a constitution broken by in

firmities

*

firmities, this excellent and respectable nobleman was induced to undertake a voyage to India, with little prospect of ever revisiting again his native country. When he arrived at Calcuta, he found the finances of the company in a most deplorable condition, and, without some great reduction of expenditure, quite unable to meet the contingencies of the war. Vast sums, he discovered, were lavished on irregular troops," Who, if dismissed, would be less formidable to us in the field, than by remaining as they were, a distressing drain on our finances; while the regular troops were little short of five months, and many of the public departments, on which the movements of the army depended, were still more in arrear."+ Favourable terms of peace had been granted to the Rajah of Bhurtpore, after the loss of 4000 men in fruitless attempts to reduce him to unconditional submission. But Holkar, though repeatedly defeated, was still in arms; and Scindia, dissatisfied with our conduct and jealous of our designs, had imprisoned our resident, and waited only for a favourable opportunity to recommence hostilities against us. In this perilous situation of affairs no time was to be lost. The immediate wants of the army were supplied by detaining the treasure destined for China, and borrowing a sum of money from the govern ment of Madras. Having provided for this exigency, the new governor general proceeded without delay,

*July 28th, 1805.

accompanied by a small escort, to take the command of the army, and had reached Gazy pour in Benares, when his death deprived his country, at this critical juncture, of his services. He had previously, however,communicated,in conversation, his views of government to sir George Barlow,second in the council, and by letter, to lord Lake, commander in chief of the forces,and had also opened a correspondence with Scindia. We have, therefore, reason to believe, that, though prevented by death from accomplishing the great work, for which he had quitted England, his journey was not in vain ; but that it contributed materially to restore in India that system of justice, moderation, and forbearance, which he had so earnestly at heart, and was so eminently qualified to practise.

Sir George Barlow, though he had been formerly the ready instrument of other men's ambition, and had even incurred on that account the censure of his superiors. being now fully instructed in their wishes, applied himself in good earnest to the restoration of peace, and succeeded in that work with a facility, which shewed plainly to what causes the long continuance of the war was to be attributed. Peace was signed with Scindia on the 2d of November, and with Holkar on the 24th of December, and complete tranquillity thus restored to India, within five months after the arrival of marquis Cornwallis at Calcutta. By the treaty with Scin

+ Letter of marquis Cornwallis to the court of directors, dated on 9th August 1805, quoted in the bouse of commons in the debate on Mr. Johnstone's motion for papers, March 10th, 1806. April 9th, 1895.

Dispatch of the court of directors, April 3, 1805

§ Oct.5th.

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