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.

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 judgment. But 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,
Secretary of State.

CHARLES HAWLEY.

MR. PERKINS TO MR. SEWARD

No. 123.)

SIR:

St. Thomas, West Indies,
December 4, 1867.

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

officially and publicly the royal ordnance ceding the islands to the United States. Their excellencies, Governor Birch, Vice-Governor Rothe, some other officials, our consular representatives, my colleague and myself, and a few of the influential inhabitants of the island were present.

The commissioner, Chamberlain Carstensen, read the royal ordnance ceding the islands to the United States, and requested an expression of the views of gentlemen present upon the subject, and especially as to the result of a vote of the people.

It seemed to be generally conceded by those present that the vote would be adverse to the change of sovereignty unless a declaration should be made or sufficient expression given by our Government for the inhabitants to believe that the present commercial privileges of St. Thomas would be preserved for a period of at least fifteen or twenty years.

I remarked that the passage of laws in regard to the future commerce of the island relative to a tariff of duties upon imports, etc., would be the province of our national legislature, but that I had every reason to believe and stated it as the view of the Department that the action of Congress would be in a spirit wholly friendly to the islands and that their prosperity would be carefully fostered and guarded by our Government.

The commissioner, however, has decided, and the Government here coinciding with him, that it is unsafe to risk a vote now, and proceeds to Washington in company with Mr. Hawley for the purpose of consultation with the Danish minister and our own Government, hoping to obtain some such declaration or expression from yourself as will insure a favorable vote.

His decision is, perhaps, a wise one, but I do not wholly share his fears, and should he return without accomplishing his purpose it might be more difficult to obtain a favorable vote than now. I shall remain here and at Santa Cruz during their absence, and no opportunity will be neglected by me to further the accomplishment of the object for which we were sent here.

The inhabitants of Santa Cruz are much disappointed that their island is not included in the treaty.

I have the honor to be, sir, with great respect, your obedient servant,

E. H. PERKINS,

United States Consul, St. Croix, W. I.

Hon. William H. Seward,

Secretary of State, Washington.

(INCLOSURE)

ROYAL PROCLAMATION TO THE INHABITANts of the IslaNDS OF ST. THOMAS AND ST. JOHN. OCTOBER 25, 1867

We, Christian the Ninth, by the grace of God King of Denmark, the Vandals, and the Goths, duke of Schleswig, Holstein, Stormarn, Ditmarsh, Laurenburg, and Oldenburg, send to our beloved and faithful subjects in the islands of St. Thomas and St. John our royal greeting:

We have resolved to cede our islands of St. Thomas and St. John to the United States of America, and we have to that end, with the reservation of the constitutional consent of our Reichstag, concluded a convention with the President of the United States. We have, by embodying in that convention explicit and precise provisions, done our utmost to secure you protection in your liberty, your religion, your property, and private rights, and you shall be free to remain where you now reside or to remove at any time, retaining the property which you possess in the said islands, or disposing thereof and removing the proceeds wherever you please, without you being subjected on this account to any contribution, tax, or charge whatever.

Those who shall prefer to remain in the said islands may either retain the title and the rights of their natural allegiance or acquire those of citizens of the United States, but they shall make their choice within two years from the date of the exchange of ratifications of the said convention, and those who shall remain in the islands after the expiration of that term without having declared their intention to retain their natural allegiance shall be considered to have chosen to become citizens of the United States.

As we, however, will not exercise any constraint over our faithful subjects, we will give you the opportunity of freely and extensively expressing your wishes in regard to this cession, and we have to that effect given the necessary instructions to our commissioner extraordinary.

With sincere sorrow do we look forward to the severment of those ties which for many years have united you to us and the mother country, and never forgetting those many demonstrations of loyalty and affection we have received from you, we trust that nothing has been neglected from our side to secure the future welfare of our beloved and faithful subjects, and that a mighty impulse, both moral and material, will be given to the happy development of the islands under the new sovereignty. Commending you to God. Given at our palace of Amalienborg, the 25th of October, 1867, under our royal hand and seal.

(L.S.)

CHRISTIAN, R.