cigars within the last three months, notwithstanding this very heavy duty. One of the motives for granting Mr. Godfroy the exclusive privilege he enjoys, was to furnish the higher classes with a legitimate means of gratifying their taste for foreign cigars, and at a rate, though onerous, which should prevent smuggling. But the preference for cigars over the pipe, and particularly West India and American cigars, is becoming so general that the smuggling is still carried on to so great an extent that Mr. Godfroy says he cannot successfully compete with the contraband trade while he is obliged to pay the present enormous duty.

He has, therefore, made a statement of his case to the Government, and demands reduction of the duty to one half or more of its present amount, as affording the only means by which he can continue to sustain his establishment.

The opportunity which Mr. Godfroy's privilege affords of essentially modifying the public taste by the supply of the richer and fashionable class with foreign cigars, has induced me to aid his schemes by my personal representations near those individuals, who have it in their power to promote his objects. The minister of finances, with whom I had an interview on the 3d instant, confidentially informed me that he should accord to Mr. Godfroy a reduction of duty to the amount of about half the sum he is now required to pay. He also promised me to limit the authority for the importation of cigars, under the mitigated rates of duty, to such as might come from ports in the United States. This exception in favor of cigars of American manufacture, or coming through our ports, would be an object of some importance, if it could be carried into effect in regard to the importations by the Elbe and over land, as well as by the ports of the Adriatic.

Although the minister, on my suggestion, has promised to adopt this course, in granting a reduction on the importation of foreign cigars under the exclusive privilege of Mr. Godfroy, I apprehend the concessionary will successfully object to such terms. It is the intention of Mr. Godfroy to apply for the privilege of importing American snuff as soon as he is secure of the reduction on cigars. That product of our industry would find a very extensive market in this empire, if it could be introduced even at a rate that would limit its consumption to the higher classes. In anticipation of the demand to be made by Mr. Godfroy, I have urged upon the persons before alluded to, as well as the minister of finances, the policy of admitting our superior qualities of snuff; and I am disposed to believe, with the influences Mr. Godfroy will bring to bear on his application when it is presented, that he will succeed in obtaining an exclusive right to import and sell this form of foreign manufactured tobacco also.

Although the attention which has been directed to the administration of the régie of tobacco of late, has left a very general belief, as well with the Government as with the public, that it has long been conducted more with a view to private, than to public benefit, and that the general interest as well as that of the Government requires that some other mode of raising a sum on the consumption of tobacco equal to the limited revenue it now furnishes should be substituted; yet, as the mere existence of any institution in this empire is almost an irresistible title to its continuance, it may sus

Mr. Godfroy believes he will be able to sell ten millions at least, of American cigars, per annum in this city alone, under a reduction of half the present duty."

tain itself for a time, under the frowns of authority and the disapprobation and suspicions of the public, claiming, as it does, to afford a necessary protection to the agricultural industry of Hungary, although it doubtless will, in the meantime, find it politic to improve its revenues as well as its manufactured products, by employing a greater proportion of foreign, and principally American tobacco. But if the régie should not be voluntarily abandoned, which, however, I apprehend must take place within a few years, unless it should be greatly improved in its administration, an arrangement between the two countries, I apprehend, might be suggested, which would open the Austrian markets to our tobacco, consisting in a concession of peculiarly favorable terms to some of the principal products of Hungary in our markets.

Such an arrangement might, it is thought, be extended so as to embrace several of the principal staples of Hungary, which should enjoy privileges in our ports, against the grant of privileges in favor of our cotton, the products of our fisheries, and certain manufactured and other articles from China, coming through the United States; and assumes the form of a commercial treaty, to the very great advantage of both nations, without compromitting the existing commercial relations of either with other countries.

I will, however, reserve the communication of my reflections on this view of our commercial prospects with this empire for some future occasion.

Mr. Niles to Mr. Forsyth.
[EXTRACT.]

PARIS, July 29, 1838.

In regard to the subject of tobacco, it is agreeable to me to be able to inform you that the Austrian régie has decided to purchase the amount of four thousand quintals of Maryland and Virginia leaf for the present year, a very great proportional increase over the amount hitherto employed in any one year. The tobacco to be contracted for is designed for the manufacture of cigars of an improved quality.

I flatter myself that the representations I have had the honor to make, in the name of the Government, have not been without their effect in disposing the Austrian régie to draw an increased proportion of its necessary supplies from our country. It should not be forgotten that each additional supply of American tobacco fixes and enlarges the taste for its peculiar flavor; to this taste the régie must become, annually, more and more subservient, should the institution be continued.

Mr. Niles to Mr. Forsyth.

TURIN, October 8, 1838.

SIR: My letter of the 26th ultimo will have informed you of my arrival here, and the disposition evinced by this Government, in my earlier interviews with its different members, in regard to the objects of my mission.

Since that time, I have submitted to the minister of foreign affairs, at his request, but in an informal manner, a draught of a commercial treaty, embracing all the general principles which enter into our treaties of the same kind with other European nations.

I have suggested to the minister the practicability of appending to such a treaty, should his sovereign be willing to adopt it, other and distinct provisions in the form of separate articles, calculated to encourage and secure an increased commerce in certain products of the two countries, and providing for the ratification of these articles separately.

It has occurred to me that we might stipulate for the continuance of the present exemption of silk goods from duty in our markets, as to Sardinia, for a limited time, against the engagement, on the part of her Government, to employ American leaf-tobacco, generally, by the Sardinian régie; also to admit olive oil, the produce of Sardinia, free of all duty, against the free entry to the consumption of all parts of this kingdom, of our whale oil and other products of our fisheries, and so of some other peculiar products of the two countries.

I have not, however, felt as if my knowledge of the bearing of provisions of this sort upon the commerce in the beforementioned articles, in particular, or in others, was sufficiently exact to justify my venturing upon stipulations of the kind, without further inquiry and reflection.

In regard to the régie of tobacco, it is proper for me to observe that its interests, independently of all other considerations, have, within a few years past, induced it, to employ a much greater proportion of American leaf than formerly. The minister of finances informs me that the quantity contracted for and to be purchased the present season, amounts to 6,000 metrical quintals [of 221 pounds each], being an increase of more than a third over the quantity purchased or employed in any former year, and forms no small proportion of the whole amount annually required.

Since the taste for American tobacco is so much on the increase, in every part of Europe, and so likely to become predominant and established, it is questionable whether it will not be wiser in the American Government to rely on pressing and continued instances near those European Governments where the manufacture of tobacco is a monopoly, and in that way to endeavor to encourage its consumption, than to embarrass itself with special stipulations in favor of an object which can be accomplished without them. But tobacco, as has been the case with almost all other articles from our hemisphere, owing to the quarantine regulations hitherto in existence, has come to Genoa principally through the ports of the north of Europe, having been habitually sought for by the agents of the régie in the markets of England and Holland. Since my arrival, for the first time, the minister of finances has been endeavoring to establish an agency in the United States, in the hope of being able to procure tobacco there, at first hand, at much cheaper rates than in the European markets.

As to olive oil produced in Sardinia, I see no reason why we might not stipulate for its free admission against the free admission of our whale oil and other products of our fisheries, to the consumption of this country, if, as I am inclined to believe would be the case, such an arrangement would insure the substitution of whale oil for lights and other purposes, instead of olive oil, now universally employed in this country. But inquiry and reflection are necessary in order to ascertain in how far the prices at which these two kinds of oil can be procured, would be apt to interfere with, or

to insure the success of, an exchange of this sort, on the basis of a reciprocal exemption from duty.

Analogous stipulations, it appears to me, might be advantageously entered into in regard to unwrought marble, on the one part, and coal on the other; articles particularly well fitted for ballast either way across the Atlantic. They are reciprocally wanted by both countries, and each is comparatively destitute of the article the other might furnish in great abundance. Coals from the United States, freely admitted, would find a considerable and constantly increasing consumption in Genoa and along the Italian shores, for the use of steamboats and other steam-engines; while Italian marble will always be wanted in the United States, in considerable quantities, for ornamental and building purposes. The financial state of this country, with an annually overflowing treasury, and almost an entire freedom from debt, would as clearly justify the adoption of the measures suggested, as that of the United States. No objection can be urged against them on account of exclusiveness, since each party might, with great advantage to all its interests, extend their provisions to all other countries willing to reciprocate them. I have learned from the Minister of Finances, as well as our consul at Genoa, an important fact with regard to our fishing interests. It appears that the effect of the large bounties by which France has long encouraged the cod-fishery, has been, at length, to drive us entirely out of the Sardinian markets. From September 15, 1835, to April 15, 1836, 5,090 quintals of cod-fish were imported into Genoa from the United States; 5,500 quintals from England; and 22,050 from France. From same date to same date of the following season, not a pound was received from the United States; 1,367 quintals from England, and 26,960 quintals from France. For the same season of the following year, none received from us, none from England, but 47,080 quintals from France. I will, by another occasion, forward more extensive statistical information on this subject.

I have the honor to forward a letter from the minister of foreign affairs, announcing the appointment of a chargé d'affaires, who, I am told, will proceed immediately to the United States. It also gives me pleasure to inform you that the authorities at Genoa have given up quarantines on arrivals from America, provided with clean bills of health. I shall be officially notified of this fact in a day or two. The effects of this measure must be great on American commerce, and insure to Genoa the advantage of becoming the centre of Italian commerce, or to force other cities to follow her example.

I have the honor to be, with great respect, your faithful servant,

Hon. JOHN FORSYTH,

Secretary of State.

Mr. Niles to Mr. Forsyth.

[EXTRACTS.]

N. NILES.

TURIN, December 1, 1838.

SIR: In communicating the treaty of commerce herewith transmitted, concluded and signed at Genoa on the 26th ult., it is proper for me to ac

company it by a brief notice, at least, of those circumstances and considerations which have given to it the peculiar stipulations you will observe in the 14th and separate article.

The annexation of the ancient republic of Genoa to the kingdom of Sardinia, imposed upon the Government the necessity of giving to this newly acquired and most important possession, the most convincing proots of its disposition to encourage and foster its leading interests, those of navigation and commerce, in every possible way, and by that means to tranquillize and render harmless that general dissatisfaction with which the Genoese witnessed the loss of their independence. This paramount object of governmental policy, it was falsely thought at the time, would be attained by the adoption of a system of differential duties, to the disadvantage of foreign flags, applied to tonnage and to the principal articles of commerce, of which Genoa was then the centre, such as grain, breadstuffs, wine, olive oil, spirits of all kinds, and some other articles of minor importance. An extraordinary development of all branches of business connected with navigation, properly speaking, was the first and early result of this policy. But measures of retaliation adopted by other countries, soon presented the unexpected consequence of a constantly decreasing general commerce, with an augmenting national navigation employed in particular privileged branches of trade. The commercial and navigating interests became divided; the first attributing to the differential system the decline of that varied and general commerce which formerly made Genoa the commercial emporium of the Mediterranean; the other disclaiming against this view of the subject, and pertinaciously defending those interests which had grown up under, and depended upon, the encouragement of the differential duties. A warm contest has been carried on for years past, on this subject, between the mercantile classes on the one hand, and ship-owners, ship-builders, and sailors, on the other; the latter, although the weakest in argument, having the immense advantage of defending acquired interests which had become important under the encouraging influence of existing laws. The Government has listened to the representations and counter-representations of the contending parties; but, although long since fully satisfied of the pernicious effects of the differential system of duties on the commercial prosperity of Genoa, it has not been able to devise a policy which would at the same time save the interests of navigation supposed to be in danger, by opening new channels for its employment, and insure the return of that general commerce for which Genoa is so particularly well placed.

This, sir, is a succinct account of the state of feelings and opinions touching the differential system of duties, up to the time when I arrived here; a state of things which has hitherto isolated the commerce of Sardinia, and prevented her Government from entering into commercial treaties with other nations, and rendered impossible the immediate, full, and entire application of the broad principles of free trade, and perfect reciprocity, advocated by the United States.

On examining into the course of Mediterranean commerce, I found that the differential duties imposed on importations in foreign vessels could, with few exceptions, rarely, if ever, affect American shipping; particularly in regard to those articles imported into Genoa from the Mediterranean ports. Vessels engaged in the corn, wine, and oil trade, are required to be of a small description, fitted to enter the almost numberless small ports of the Mediterranean and adjacent seas, where these articles are sought for