war and to those advantages in time of peace which are enjoyed by other citizens. It is not expected that you will stay in the islands longer than may be necessary after the vote referred to shall have been taken. The Department will expect reports from you during your sojourn there. SIR: I beg leave to inform you of my arrival at this island, in company with Mr. Perkins, on the 12th instant. Mr. Moore, who preceded us by some two days, has, for prudential reasons, already communicated with Mr. Simmons, United States vice-consul, on the object of our mission, with which he is in full sympathy. A dispatch by way of Porto Rico to the effect that the United States had purchased the Danish Islands for the sum of $15,000,000 reached here on the morning of our arrival, creating considerable excitement. The rumor serves as the occasion of a free expression of opinion and gives rise to the question, "Will the United States continue St. Thomas a free port?" If the merchants and others connected with the business relations of the island could be assured that there would be no change in this regard, and that their trade with the other islands would be maintained with its present advantages, the formidable objection to the transfer would be obviated. The whole issue, as they contemplate it, resolves itself into a question of trade, as the entire commerce of the island is built upon the freedom of the port. If the decision is to be submitted to a popular vote there can hardly be a doubt that the result will be in favor of annexation. We, of course, are not known as having any information on the subject, awaiting the arrival of the Danish commissioner, who is expected on the 16th instant. The town has suffered considerable damage from the hurricane of the 29th ultimo, but the damage is being rapidly repaired. With great respect, I remain your obedient servant, Hon. William H. Seward, Secretary of State. CHARLES HAWLEY. No. 2.) MR. HAWLEY TO MR. SEWARD Fredericksted, St. Croix, West Indies, SIR: I have the honor to report the arrival of the Danish commissioner, Chamberlain Carstensen, at St. Thomas, on the morning of the 17th instant. Mr. Perkins and myself waited on him without delay, and ascertained that it was his desire to proceed immediately to Christiansted, St. Croix, for consultation with the governor, and that we should accompany him. Commodore Bissell, of the Monongahela, placed his vessel at the service of the commission, and we arrived at this place on the evening of the 17th instant, and proceeded next morning to Christiansted. An interview was arranged for at 3 o'clock P. M., and while in the reception room of the government house a violent shock of an earthquake drove us from the building in confused haste and threw us into a scene of indescribable terror. Admiral Palmer, who came with the Susquehanna from St. Thomas on the morning of Wednesday, brings tidings of a similar disaster there, inflicting great damage to the town and injury to the shipping. This calamity, following so speedily the hurricane of the 29th ultimo, is a serious embarrassment to our mission, as it must, for a time at least, preoccupy public attention. It has already frustrated our hopes of a speedy arrangement of preliminaries, and left us in a state of uncertainty of what under the circumstances should be done. I may, however, communicate the result of several informal conversations with Mr. Carstensen, who is quite frank and unreserved in the expression of his views. He is unwilling to order an election until reasonably assured that the vote will be favorable. Rather than hazard a failure he would prefer a postponement of any further measures here until such modifications can be secured in the treaty which will dispose of the present contingency. He has received the same impression that forced itself upon our attention, as I had the honor to state in my first communication, that the mercantile interest of St. Thomas will be a unit against the transfer, without some assurance from the United States that, for a specified period at least, the present privileges and immunities enjoyed by the port will remain undisturbed. Governor Birch is of the same opinion. Indeed, it must be palpable to every one at all familiar with the present trade of St. Thomas and its resources, to bring it under the restrictions of our revenue laws is to destroy at a blow its commercial importance. The island is without productions — without anything to sell except what it imports. The entire population is dependent directly or indirectly upon a trade with the other islands, which, from its peculiar position as a point of transit, it can maintain on the one condition that it can receive the goods it sells to Porto Rico, San Domingo, Cuba, etc., free of duties. So commanding is this interest that I am not without fears it might control the votes of the less intelligent class. A guarantee from the United States that no change would be required in the present status of the port would relieve the whole question of embarrassment; but though urged at this point, both by the governor and commissioner, it is an assurance which, of course, I am not authorized to give. I have said to them that the principal design of the United States in acquiring these islands being the establishment of a naval depot, I had no doubt there would be as little change as possible in these respects, and that our Government would be disposed to a liberal policy toward its new possessions, and retain to them all rights and immunities not in conflict with the common interest, beside the advantage they would have in the protection and privileges which a generous and powerful government accords to all its citizens. SIR: I regret to inform you that no material change has occurred in the situation of affairs since my communication of the instant. The daily recurrence of the earthquake, though with abated violence, prevents the return of confidence on this island as at St. Croix, after a lapse of eleven days since the first shock. We returned to St. Thomas on the 25th instant, in company with Governor Birch and Chamberlain Carstensen, in the United States flagship Susquehanna. The next day there was an informal conference with the leading merchants of the Government house, convened by the governor at the request of the commissioner, for a free expression of opinion. Messrs. Perkins, Moore, and myself were present. This conference continued for two hours, from which it appeared that while there was no objection to a transfer of the sovereignty from Denmark to the United States, but on the contrary a general admission that certain advantages would be gained by the change, it was nevertheless deemed vital to the commercial prosperity of St. Thomas that it should continue a free port. Without the assurance in some form that there would be no change for at least a period of years in this respect, they should be constrained, in the protection of existing interests, to oppose with all the influence they could wield, the proposed cession. But with the assurance that their present privileges would not be disturbed by the change, it would meet with a general and cordial approval. As we were requested to state what could be expected from the United States Government in this particular, we replied that our instructions did not contemplate this question; that all regulations pertaining to the imposition of duties belonged to Congress; that the exemption desired, if put into the substance of the treaty, might be considered an encroachment upon the province of the legislative department and embarrass its ratification by the Senate. On the other hand, as the object of the United States in the acquisition of the islands respected naval convenience rather than revenue, there would be a strong disposition to deal generously with existing privileges by appropriate legislation; and, moreover, if they would accept the manifest desire of Denmark to cede this territory to the United States and leave their interests with the latter their confidence would not be misplaced. Much was said about existing laws in the islands, harbor regulations, etc., to which our reply was that it is the policy of the Federal Government not to interfere with the local institutions or laws of States, Territories, or municipalities, and that only such changes, if any, would be expected as experience should determine to be wise and suitable under a liberal government. The spirit of the conference was good, and generally favorable to the cession, at the same time the freedom of the port was held with unyielding tenacity as the just and reasonable condition of their cordial approval. I remain, with great respect, your obedient servant, Events and circumstances with which you are made acquainted have deter mined the Danish commissioner to defer the taking of the vote, in order that he may proceed to Washington, and secure, if possible, such a modification in the articles of convention as will obviate the difficulty which the business interests of St. Thomas so persistently presents to all his movements. He desires, also, to be in immediate communication with Copenhagen. In his view delay is safe, and inasmuch as, in the most favorable circumstances, a month or more must elapse before preparations for the vote could be completed, little or no time will be lost. Moreover, he sees that an adverse result from any cause would be fatal to the interests of Denmark, not less than to the desire of the United States, as negotiations could not be renewed in face of a popular decision against the cession. His desire, therefore, is to conciliate, as far as possible, the commercial community, whose capital has been invested in a trade which can only be maintained under existing regulations of the port; at the same time he is not unmindful of the difficulty which I have deemed it a duty to present to him, viz. : That the executive department of the Government might find itself embarrassed by such conditions as he thinks desirable to secure. My own impression is that his powers as royal commissioner are largely discretionary, and sufficient, in case the emergency presents itself, to bring the whole matter to an issue, even against formidable opposition. ment. As my instructions from the Department direct me to defer to the views of the Danish commissioner, I could not do otherwise than concur in his judgBut I may be allowed to say that, apart from such positive direction, it has appeared to me from the first unsafe to risk a vote as the question now stands; and further, that the position taken by the business men of St. Thomas is most natural and reasonable. If the concessions for which they ask can be properly granted, I see nothing in the way of a speedy and happy conclusion to the mutual desire of the two Governments in this valuable acquisition to the dominion of the United States. I have the honor to remain your obedient servant. Hon. William H. Seward, CHARLES HAWLEY. No. 123.) MR. PERKINS TO MR. SEWARD St. Thomas, West Indies, SIR: We returned to St. Thomas, accompanied by Governor Birch in the U. S. S. Susquehanna, on the 25th ultimo, and on the following day a public meeting was held at Government house for the purpose of making known |