FUNDED LO

UNITED STAT

Hon. Hamilton Fish, Secretary of State disposition of Congress as provided in the

IN THE ST

FIFTEEN MILLION FIVE HUN This houd is issued in accordance with the provisions of an ACT NATIONAL DEBT, approved July 14.1870, amended by an Act approved after the first day of May, A.D.1881, in COIN of the standard value of the from the day of the date hereof, at the rate of five percentum per annum in each year. The principal and interest are exempt from the paymer form, by or under State TRANSFERABLE ON THE

15 500 0615.500 000 15.500.000 15.500.000 15.500.000 ACT OF JULY

exchange of the ratifications of the treaty a question arose as to the proper construction of that clause of the second rule by which the neutral was bound "not to permit or suffer either belligerent to make use of its ports or waters for

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the purpose of the renewal or augmentation of military supplies or arms." This question arose in England very soon after the conclusion of the treaty, and an effort was made to secure the adoption by the Senate of the United States, simultaneously with its approval of the treaty, of a resolution setting forth its opinion (1) that the acts prohibited by the clause in doubt "were prohibited only when done for the service of a vessel cruising or carrying on war, or intended to cruise or carry on war, against either of the belligerents," and (2) that the prohibition "did not extend to any exportation from the neutral country of arms or other military supplies in the ordinary course of commerce." It seems that the second clause was inserted in the resolution by Mr. Fish after consultation with Judge Hoar. The Senate gave its approval to the treaty, but laid the resolution on the table; and the objection which the British Government had encountered still remained. On the 9th of June 1871 General Schenck telegraphed to Mr. Fish that it seemed probable that, in order to remove "serious objections" to the ratification of the treaty, some declaration would have to be made so limiting the interpretation of the second rule as not to restrict sales of arms or other military supplies in the ordinary course of commerce, and he inquired whether the President would authorize an expression to that effect in bringing the rules to the knowledge of other maritime powers and asking their assent to them. On the following day Mr. Fish replied that the President understood and insisted that the rule did not "prevent the open sale of arms or other military supplies in the ordinary course of commerce," and that the United States would, in bringing the rules to the knowl edge of other powers and asking their assent to them, insist that such was their proper interpretation and meaning.3

On the 17th of June 1871, the day the ratifications of the treaty were exchanged at London, Earl Granville sent to Sir Edward Thornton a draft of a note to be used in presenting the three rules to the several maritime powers. In this note

'Br. and For. State Papers, LXV. 393.

2 Id. 399.

3S. Ex. Doc. 26, 45 Cong. 3 sess. 3.