In January, 1871, the British Government proposed to the Government of the United States that a joint commission should be convened to adjust certain differences between the two nations relative to the fisheries, the Canadian boundary, etc. To this proposition the latter acceded, on condition that the so-called Alabama claims should also be considered. To this condition Great Britain assented. In the Convention the American Commissioners proposed an arbitration of these claims. The British Commissioners replied that her Majesty's Government could not admit that Great Britain had failed to discharge toward the United States the duties imposed on her by the rules of international law, or that she was justly liable to make good to the United States the losses occasioned by the acts of the cruisers to which the American Commissioners referred.
Without following the details, it may be summarily stated that the Geneva Conference ensued. That decided that "England should have fulfilled her duties as a neutral by the exercise of a diligence equal to the gravity of the danger," and that "the circumstances were of a nature to call for the exercise, on the part of her Britannic Majesty's Government, of all possible solicitude for the observance of the rights and duties involved in the proclamation of neutrality issued by her Majesty on May 18, 1861." The Conference also added: "It can not be denied that there were moments when its watchfulness seemed to fail, and when feebleness in certain branches of the public service resulted in great detriment to the United States."
The claims presented to the Conference for damages done by our several cruisers were as follows: The Alabama, $7,050,293.76; the Boston, $400; the Chickamauga, $183,070.73; the Florida, $4,057,934.69; the Clarence, tender of the Florida, $66,736.10; the Tacony, tender of the Florida, $169,198.81; the Georgia, $431,160.72; the Jefferson Davis, $7,752; the Nashville, $108,433.95; the Retribution, $29,018.53; the Sallie, $5,540; the Shenandoah, $6,656,838.81; the Sumter, $179,697.67; the Tallahassee, $836,841.83. Total, $19,782,917.60. Miscellaneous, $479,033; increased insurance, $6,146,19.71. Aggregate, $26,408,170.31.
The Conference rejected the claims against the Boston, the Jefferson Davis, and the Sallie, and awarded to the United States Government $15,500,000 in gold.
But the indirect damages upon the commerce of the United States produced by these cruisers were far beyond the amount of the claims presented to the Geneva Conference. The number of ships owned in the United States at the commencement of the war, which were subsequently transferred to foreign owners by a British register, was 715, and the amount of their tonnage was 480,882 tons. Such are the laws of the United States that not one of them has been allowed to resume an American register.
In the year 1860 nearly seventy per cent. of the foreign commerce of the country was carried on in American ships. But, in consequence of the danger of capture by our cruisers to which these ships were exposed, the amount of this commerce carried by them had dwindled down in 1864 to forty-six per cent. It continued to decline after the war, and in 1872 it had fallen to twenty-eight and a half per cent.
Before the war the amount of American tonnage was second only to that of Great Britain, and we were competing with her for the first place. At that time the tonnage of the coasting trade, which had grown from insignificance, was 1,735,863 tons. Three years later, in 1864, it had declined to about 867,931 tons.
The damage to the articles of export is illustrated by the decline in breadstuffs exported from the Northern States. In the last four months of each of the following years the value of this export was as follows: 1861, $42,500,000; 1862, $27,842,090; 1863, $8,909,043; 1864, $1,850,819. Some of this decline resulted from good crops in England; but, in other respects, it was a consequence of causes growing out of the war.
The increase in the rates of marine insurance, in consequence of the danger of capture by the cruisers, was variable. But the gross amount so paid was presented as a claim to the Conference, as given above.
[Footnote 59: Wheaton's "International Law" sixth edition, p. 571, 1855.]