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barrass the communications over the Jura mountains, in France. The transit of goods up the Rhine is obstructed by ice for about the same length of time. In a word, the greater proximity of Genoa to the countries mentioned, with a parity of difficulties in reaching them, renders that city their natural channel of communication with the sea. This is particularly true of the greater part of the immense and incomparably fertile plains of Lombardy, which lie between the Alps and the Appenines.

But an easy means of getting at the markets of these several countries and supplying them with our tobacco, cotton, rice, fish, &c., affords no just measure of the value of the concession made by the 14th article. In order to prevent the trade of Lombardy taking a direction through Sardinia, Austria must encourage commerce through Venice by new facilities, or the affections and the hopes of her Italian population will naturally be turned to this Government, whose policy, as avowed in this treaty, is more in har. mony with their interests.

The heavy duties and other obstructions, such as municipal taxes for the use of roads and bridges, which now embarrass the transit trade through Belgium, Holland, the German custom-house union, as well as up the Rhine, must, if this treaty goes into effect, be abolished or favorably modified, or the entire supplies of transatlantic merchandise for Switzerland and the whole southern section of Germany, will ultimately be obtained through Genoa.

Should the peace of northern Europe be disturbed, * an event, in all probability, not very remote, we have here a free and an unobstructed channel open to the centre of the continent, guarantied by a treaty stipulation with a formidable power, which will have every possible interest to adhere to this liberal policy; a policy which places her far in advance of all the other continental countries, with regard to the freedom of inland commerce.

The provisions of the separate article are highly important to Sardinia, as they expose a basis on which she can now enter into commercial trea. ties with other maritime countries, and thus open new channels for the employment of her overgrown navigation, and avoid exciting that discontent which she would have just reason to apprehend from a sudden withdrawal of that protection to her own shipping which has been thought so necessary. There is, indeed, good reason to believe that both parties will be permanently and extensively benefited by the treaty.

The quarantines on transatlantic arrivals having been given up, and the differential duties on tonnage, as well as on all articles which can possibly be imported by American ships, done away with by the present treaty, if it should be approved by the President and the Senate, of which I flatter myself there can be no doubt, it may be fairly calculated that Genoa will soon become the great depot in the Mediterranean for the products of American industry; while her established relations with every port in the Black sea, and on the shores of the Mediterranean and Adriatic, will afford her every facility for carrying on a profitable trade in transporting them to new and remote markets.

The other articles of the treaty being similar to those which enter into most of our commercial treaties, and so perfectly in accordance with the universally acknowledged public law, require, I take it, neither explanation nor defence.

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It has been my endeavor to turn to the best account, in the interest of our commerce and industry, the peculiar state of things here; and the best reward for the labor and attention I have bestowed on the subject will be, to know that the treaty in which they have resulted has met with the approbation of the Executive.

I have the honor to be, sir, with sentiments of the utmost respect and consideration, your obedient and faithful servant,

NATHANIEL NILES. Hon. John FORSYTH,

Secretary of State.

Mr. Niles to the Comte Solar de la Marguerite.

Turin, November 5, 1838. MONSIEUR LE COMTE: I cannot refrain from the expression of the regret and disappointment with which I received the communication you made me at our last interview. of the determination of his Majesty's ministers not to accede to the proposition I had had the honor informally to submit to your excellency concerning the free transit of American tobacco through the territories of his Sardinian Majesty, and which it was proposed to introduce into the project of a treaty of commerce now under discussion. The more I reflect on this subject, the more I am convinced that that decision has been come to from a mistaken view of iis importance to Sardinia herself. So strong is this conviction, that I cannot but hope that a review of the consideration in favor of the admission of my proposal will yet induce the Ministry to change their ground, and thus enable us to bring our present negotiations to a mutually satisfactory close.

Genoa may be considered the natural channel for the transatlantic com. merce of Parma, Modena, a part of the papal dominions north of the Appenines, a great proportion of Lombardy, Switzerland, and the south of Germany, embracing a population of several millions beyond the frontiers of his Majesty's dominions. A treaty stipulation, by which the free transit of tobacco through his Majesty's states might be secured for a series of years, would, undoubtedly, soon induce the Governments of the countries mentioned, where the manufacture and sale of tobacco is a monopoly, to get their supplies of this article from Genoa ; and the inhabitants of those countries where the trade is free, to procure their tobacco through the same channel. It is apparent that an established trade in this article for the supply of several millions of population beyond the confines of Sardinia, nust alone be of the highest advantage to the commercial interest of Genoa, to say nothing of the other branches of commerce which would naturally be connected with it, eqnally beneficial to the general trade and navigation of Sardinia.

In the increased business activity which would inevitably grow out of this free transit tobacco-trade, to the advantage of every class of the community, it is believed the Government would find much more than an adequate compensation for any loss the treasury might, by any possibility, suffer from an illicit trade in the article of tobacco, even if no measures should be found to prevent it. But there is little reason to doubt that a system of surveillance may be adoptéd, without imposing great expense on its transit, which would effectually render smuggling and frauds impossible.

There is, however, another view of this subject, still more important in the permanent interest of Sardinia than that just adverted to. The United States have adopted a most liberal policy in admitting silk manufactures from all European countries to consumption free of duty. Differential duties have been imposed on silks from beyond the Cape of Good Hope, expressly to secure to Europe the chief benefit of the American market for this article. This, perhaps too liberal policy in regard to European nations, has been adopted in the expectation of obtaining equivalent advantages in the way of an increased consumption of our principal staples, or in the enjoyment of new and extended facilities in trade.

Now, the annual exportation of about eight millions of manufactured silks to the open markets of the United States, and of raw silk, of the value of nearly sixty millions of francs annually, manufactured at Lyons, in Swit. zerland, Germany, and England, in a great measure, for the American markets, shows to what extent Sardinia is interested in the continuance, on our part, of a policy which has already rendered her so prosperous and rich, and promises for the future, if continued, such permanently beneficial results. It cannot be questioned that Sardinia has received, and will continue to derive, greater advantages from our policy, in regard to the free admission of European silks than any other nation whatever. With her Government it would therefore seem to be an inquiry of the highest importance, by what means those advantages can be secured for the future. Sardinia cannot reasonably expect to continue to enjoy indefinitely the ad. vantage of a system gratuitously liberal on the part of the United States. It would appear to be an object of the first importance to open such facili. ties for American commerce, as to make it for the interest of the American Government to continue its present system with regard to Sardinian silks, whatever changes its finances or political policy may hereafter dispose it to adopt in reference to other European silk-growing and manufacturing coun. tries. Sardinia holds the key to an extensive market for American tobacco, and if she continues to refuse us the right of way to that market, can she expect, with any propriety, that we shall continue our present policy toward her in regard to the free admission of manufactured silks ? But let Sardinia open for us a free transit trade in American tobacco, and it is apparent she will have furnished herself with the means of urging, with great force, ali exception in favor of her silks, should circumstances, likely at any time to occur, make it the policy of the United States Government to modify the conditions upon which European or Indian and China silks may hereafter be admitted to consumption in the United States.

I cannot but hope, Monsieur Le Comte, that the considerations above hastily sketched, together with the liberal exceptions to the advantage of the Sardinian flag, proposed in the separate article of the projected treaty, will yet have the effect of inducing the King's Government to grant a free transit of American tobacco through the territories of his Majesty-a measure which, I am fully convinced, if carried frankly into execution, will be found to be fraught with lasting advantage, of a commercial kind, to our respecure countries.

I have the honor to renew the assurance of the highest consideration with which I am your excellency's most obedient and faithful servant,

NATHANIEL NILES. A son Ex. Comte SOLAR DE LA MARGUERITE,

Premier Secretaire d'Etat au

Départmeut des Affaires Etrangères.

Count Solar de la Marguerite to Mr. Niles.

Genes, le 17 Novembre, 1838. MONSIEUR: En attendant que je vous adresse ma réponse à la lettre que vous m'avez fait l'honneur de m'ecrire en date du 4 de ce mois, je me fait un empressement de vous annoncer que, dans l'intention de faire quelque chose d'agréable à votre Gouvernement, et de lui donner une nouvelle preuve de notre désir de rendre aussi avantageuses que possible au commerce des Etats Unis les conditions du traité que nous négocions, il vient d'être déterminé, d'après le voeu que vous avez exprimé, que les tabacs, sauf ceux manufacturés, que seraient importés sur des bâtimens Américains, pourront transiter par les Etats du Roi, de la même manière, et étant soumis aux même réglemens que les autres articles de commeree non exceptés du transit.

Je ne doute pas, Monsieur, que vous ne trouviez dans cette résolution une marque d'autant plus évidente des dispositions bienveillantes que nous * avons apportés dans cette négociation, qu'en faisant cette exception, on renonce à maintenir une prohibition à la quelle on tenait cependant extremement.

Je suis persuadé qu'aprés une semblable concession de notre part, il n'y aura plus maintenant aucun obstacle à une conclusion que nous aurons assez facilitée pour être en droit de ne plus admettre aucun changement à nos dernières conditions.

Je saisis bien volontiers cette occasion pour vous renouveler, Monsieur, les assurances de ma considération très distinguée.

SOLAR DE LA MARGUERITE. 1 A Monsieur Niles.

P. S.—Monsieur de Battet est chargé de donner de plus amples explications pour ôter toute difficulté à la conclusion.

[TRANSLATION.]

Genoa, November 17, 1838. Sir: Before I address to you any reply to the letter which you did me the honor to write to me on the 4th instant, I hasten to announce to you that, with the view of gratifying your Government, and giving it a new proof of our desire of rendering the stipulations of the treaty which we are negotiating as advantageous as possible to the commerce of the United States, it has just been determined, in accordance with the wish you have expressed, that unmanufactured tobacco which may be imported in American vessels shall be admitted to transit through the states of the King, in the same manner, and subject to the same regulations, as other articles of commerce not excepted from transit.

I do not doubt, sir, that you will recognise in this decision a mark so much the more evident of the kindly dispositions that we have evinced in this negotiation, since, in making this exception, we renounce a prohibition to which we have hitherto most strenuously adhered.

I am persuaded, that, after such a concession on our part, there will be no longer any obstacle to a conclusion which we have so much facilitated

as .to have the right to decline any further modification of our last propositions.

I cheerfully seize this occasion to renew to you, sir, the assurance of my very distinguished.consideration.

SOLAR DE LA MARGUERITE. P.S.-M. de Battet is authorized to give the fullest explanations to remove any difficulty to the conclusion of the treaty.

Mr. Niles to Mr. Forsyth.

[EXTRACTS.)

City or WASHINGTON, October 25, 1839. Sir: I have the honor to hand you, herewith, a letter in Gerinan, received from the Baron Eichoff, the Austrian minister of finances, and president of the Aulic counsel, in which he inentions the amount of american tobacco which the Austrian régie had determined to employ during the present year. It cannot, sir, be otherwise than agreeable to you to be thus of. ficially informed that the increased consumption of American leaf-tobacco by the Austrian Government has been the result of my labors in Vienna under your directions. The baron's letter is marked A.

There was every appearance, when I left Turin on the 18th of June, that the number of arrivals would be immediately and greatly increased as a consequence of the abandonment of the quarantines and the differential tonnage and other duties.

New branches of trade have, indeed, already grown up, or rather taken a start since the ratification of the late treaty. I will mention a fact in point which very much interests the tobacco-growers of the south and west. I was informed in Paris, on my way home, by Mr. Pescatore, the great tobacco-dealer of Europe, that he had ordered two cargoes of tobacco to be shipped on his account from New Orleans to Genoa, which he intend. ed to be sent in transit through Sardinia, under the provisions of the 14th article of our treaty with that country.

A.

(TRANSLATION.)

VIENNA, February 1, 1839. Sir: In compliance with the wish expressed by you, I have now the honor to inform you that it has been determined to admit into the tobacco manufacturies of the Austrian empire during the period from January 1, 1839, to the end of April, 1840, 2,350 Vieuna quintals of North American tobacco, in leaf, more than was admitted during the same space of time in the preceding years, and that the directory of the finances has, in this business, made use of the valuable communications received from you. Accept, sir, the assurances of my most distinguished consideration. Your most obedient seryant,

EICHOFF

e acco, inhe end of the Austit he

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