ACTION OF CONFEDERATE GOVERNMENT.

On July 5, 1861, Lord Lyons instructed Mr. Bunch, the British Consul at Charleston, South Carolina:—

"The course of events having invested the States assuming the title of Confederate States of America with the character of belligerents, it has become necessary for Her Majesty's Government to obtain from the existing government in those States securities concerning the proper treatment of neutrals. I am authorized by Lord John Russell to confide the negotiation on this matter to you, and I have great satisfaction in doing so. In order to make you acquainted with the views of Her Majesty's Government, I transmit to you a duplicate of a dispatch to me in which they are fully stated." His Lordship then proceeded to instruct the consul as to the manner in which it might be best to conduct the negotiation, the object being to avoid as far as possible a direct official communication with the authorities of the Confederate States. Instructions to the same purport were addressed by the French Government to their consul at Charleston.

What then was the point of the negotiations committed to these consuls? It will be found in the dispatch from Lord John Russell, communicated by his order to Mr. Bunch. It was the accession of the United States and of the Confederate States to the Declaration of Paris of April 16, 1856. That Declaration was signed by the Ministers of Austria, France, Great Britain, Prussia, Russia, Sardinia, and Turkey. It adopted as article of Maritime Law the following points:—

"1. Privateering is and remains abolished.

"2. The neutral flag covers enemy's goods with the exception of contraband of war.

"3. Neutral goods, with the exception of contraband of war, are not liable to capture under the enemy's flag.

"4. Blockades in order to be binding must be effective,—that is to say, maintained by a force sufficient really to prevent access to the coast of the enemy."

The Powers signing the Declaration engaged to bring it to the knowledge of those Powers which had not taken part in that Congress of Paris, and to invite them to accede to it; and they agreed that "the present Declaration is not and shall not be binding except between those Powers which have acceded or shall accede to it." It was accepted by all the European and South American Powers. The United States, Mexico, and the Oriental Powers did not join in the general acceptance.

The English and French consuls in Charleston, having received these instructions, sought and found an intermediary whose position and diplomatic experience would satisfy the requirements. This agent accepted the trust on two conditions,—one, that he should be furnished with the instructions as proof to the Confederate Government of the genuineness of the negotiation, the other, that the answer of the Confederate Government should be received in whatever shape that government should think proper to frame it. The negotiations in Richmond which had by this time become the seat of the Insurgent Government were speedily concluded, and on the 13th of August, 1861, the Confederate Government passed the following resolution:—