for the so-called Confederate States, nor any other of the high acts pretended to have been accomplished in the name of the people of certain States, ever received their sanction or concurrence. The majority was against such proceedings in the southern States themselves. The whole was the work of a party which, by violence, was imposing its action upon those States.

Leaving out of view the question whether a State might or might not secede from the United States by its own will, really up to this time no such will had been manifested. The pretended acts of sovereignty exercised by those States in fact were not the acts of those States, but simply the acts of a party which shows itself a minority in those States.

They were hollow, they lacked the only sanction which could give them substance.

And the appearance of a confederate government set up by the faction operating in the south was an appearance only-convenient for their own purposes, but having no condition entitling it to the consideration of foreign States.

Without the sanction of the people it was a pretence and no reality. I mentioned the example of the court, or appearance of a court, set up by Don Carlos in the northern provinces of Spain not many years since, and asked Mr. Calderon whether that was a government either de jure or de facto; and yet Don Carlos and his rebel army and sympathizers held a large district for a considerable period subject to their duress.

Thus the appearance set up in our southern States was no government either de jure or de facto. It was at best a transitory form of violence, a phase of anarchy, a thing which could endure only whilst the violence might endure which had produced and still maintained it. But, aside from this violence, there was no political guarantee in Mr. Davis, nor in his followers, nor in the class from which they spring. Up to this time they had been unrestrained, and their demonstrations completely unchecked, by any show of force on the part of the government; but now it had been found necessary to display the power of the Union, and our forces were preparing by land and sea to quell this sedition and release the loyal people of the southern States from the duress of this rebel faction.

Much more was said, and questions asked and answered, which it is hardly necessary to repeat.

The result of this interview, I am happy to say, may be regarded by the President as decisive in regard to Spain. Much had been done previously, but it was brought to a termination yesterday.

The minister of state not only renewed to me the assurance given to Mr. Preston, but amplified it, stating absolutely that if any commissioners o other negotiators should appear in behalf of the so-called Confederate States, the government would not see them nor recognize them in any capacity; that Spain would have nothing to do with the rebel party in the United States in any sense.

I might write this to my government, and say besides that her Majesty's first secretary of state had promised me that within a few days, as soon as it could be declared, a decree would be issued by this government prohibit ing all Spaniards from taking service on either side, and ordering all the subjects of Spain to maintain complete neutrality in the contest now begun in the United States; that she would prohibit the entrance of southern privateers into any of her ports, peninsular and colonial, and prohibit the furnishing of any supplies to the rebels, whether arms, provisions, coals, ships, or any other merchandise which might aid in their revolt against the gov ernment of the Union. Armed ships, with their prizes, would not be permitted to enter her ports. Spanish subjects would be forbidden to accept any letter of marque or other such document, or serve on board of any pri

vateer; and no fitting out of vessels for the purpose of taking part in hostilities against the United States could be permitted, but impeded with vigor and severity.

I have again seen Mr. Calderon to-day, and he informed me that, in pursuance of these declarations, he had just come from a council of ministers, where he had been occupied with this business, and that the decree would appear in two or three days at most, and that he would also write to Señor Tassara, her Majesty's representative in Washington, to make you the same announcement on the part of his government.

HORATIO J. PERRY.

With sentiments of the highest respect, sir, your obedient servant,

Hon. WM. H. SEWARD, Secretary of State.

No. 7.]

Mr. Perry to Mr. Seward.

LEGATION OF THE UNITED STATES,

Madrid, June 19, 1861.

SIR: I have the honor to enclose the royal decree, published by the official gazette this morning, with its translation, (explained in No. 6.)

The minister of state has to-day, whilst acknowledging that its provisions are in great part taken from the French decree, drawn my attention to the fact that he has avoided the use of the expression belligerents as far as possible, or any other which could be considered as prejudging the question of right in any manner.

He also drew my attention to the fact that, though the decree proclaims neutrality, it expressly prohibits any supplies to be furnished to privateers in the Spanish ports, whilst vessels-of-war may be provided and equipped with all they need; and this provision tells exclusively against the party issuing letters of marque.

The preamble also is less objectionable than some other documents which have seen the light in Europe.

With the highest respect, sir, your obedient servant,

Hon. WM. H. SEWARD, Secretary of State.

HORATIO J. PERRY.

[Translation.]

MINISTRY OF STATE.-ROYAL DECREE.

Taking into consideration the relations which exist between Spain and the United States of America, and the desirability that the reciprocal sentiments of good intelligence should not be changed by reason of the grave events which have taken place in that republic, I have resolved to maintain the most strict neutrality in the contest begun between the federal States of the Union and the States confederated at the south; and in order to avoid the damage which might come to my subjects and to navigation, and to commerce, from the want of clear provisions to which to adjust their conduct in consonance with my council of ministers, I do decree the following: ARTICLE 1. It is forbidden in all the ports of the monarchy to arm, provide, or equip any privateer vessel, whatever may be the flag she displays.

ART. 2. It is forbidden in like manner to the owners, masters, or captains of merchant vessels to accept letters of marque, or contribute in any way whatsoever to the armanent or equipment of vessels of-war or privateers.

ART. 3. It is forbidden to vessels-of-war or privateers with their prizes to enter or to remain for more than twenty-four hours in the ports of the monarchy, except in case of stress of weather. Whenever this last shall occur, the authorities will keep watch over the vessel and oblige her to get out to sea the soonest possible without permitting her to take in any stores except the purely necessary for the moment, but in no case arms nor supplies for

war.

ART. 4. Articles proceeding from prizes shall not be sold in the ports of the monarchy.

ART. 5. The transportation under the Spanish flag of all articles of commerce is guaranteed, except when they are directed to blockaded ports. The transportation of effects of war is forbidden, as well as the carrying of papers or communications for belligerents. Transgressors shall be responsible for their acts, and shall have no right to the protection of my govern

ment.

ART. 6. It is forbidden to all Spaniards to enlist in the belligerent armies or take service on board of vessels-of-war or privateers.

ART. 7. My subjects will abstain from every act which, in violation of the laws of the kingdom, can be considered as contrary to neutrality.

ART. 8. Those who violate the foregoing provisions shall have no right to the protection of my governmer+, shall suffer the consequences of the measures which the belligerents ma y dictate, and shall be punished according to the laws of Spain.

Palace, on the seventeenth of June, one thousand eight hundred and sixty-one.

SIGNED WITH THE ROYAL HAND.

SIR: I send you an extract of a letter from Mr. Sanford, our minister at Belgium.

You will perceive, at once, how important it is that the Spanish government shall prevent the fitting out or departure of privateers from its friendly ports. We do not doubt your activity. You will need to see that our consuls in Spain are watchful and active.

I am, sir, your obedient servant,

CARL SCHURZ, Esq., &c., &c., &c., Madrid.

WILLIAM H. SEWARD.

No. 13.]

Mr. Perry to Mr. Seward.

LEGATION OF THE UNITED STATES,

Madrid, July 12, 1861.

SIR: I have been prevented, by my recent illness and the pressure of affairs, from communicating to you till this moment the import of various

conversations which I had with Mr. Calderon Collantes, minister of state, previous to entering the protest of June 19, upon the subject of the commercial relations of the two countries and the West Indian colonies.

I confess this subject has been a favorite with me ever since I succeeded, in 1854, in inducing the Spanish government to consent to negotiate with me for the conclusion of a commercial treaty upon the liberal and advantageous basis of the eleven articles then drawn up and sent to the State Department, accompanied with this offer on the September of that

year.

On entering again upon the discharge of the duties of this legation, I took an early opportunity, therefore, to sound the dispositions of the present minister of state on this subject, as well as the feeling of other officers and personages influential in this government.

In no quarter has the idea of arranging the commercial intercourse of the two countries upon a more liberal basis been repelled. The minister of state told me, without hesitation, that he would enter with me upon the work of negotiating a treaty for this purpose readily, and with the idea that we should find no great difficulty in bringing it to a successful conclusion. I mentioned, especially, the subject of the Cuban flour duties, and received the reply, now as in years before, that these would be yielded by Spain, and the Spanish colonial market thrown open to the introduction of our grains and provisions of all kinds.

Some compensation, or show of compensation, to the Castilian wheatgrowers may be asked in the form of a reduction of our duties on the cheap wines of Castile; and whilst I see no great objection to such an arrangement, I am, at the same time, persuaded that practically it would amount to little in its effects either upon our revenue or upon the agricultural interests of Castile.

The motive of these conversations was to assure myself, for your information, what were the present wishes and dispositions of the Spanish government on this subject, prior to that coolness in our relations which must follow the presentation of the protest of June 19. I repeat, I have found these dispositions, now as heretofore, entirely favorable to the object mentioned, and I could have undertaken to carry a negotiation on this subject to a conclusion satisfactory to you, and highly advantageous to our people interested in the trade with the Spanish colonies.

As to the convention for the settlement of claims, which was signed by Mr. Preston, the minister of state expressed his regret that it had not received the ratification of the Senate, but had no doubt we should be able to arrange it so as to avoid the objections of that body. Other more pressing affairs induced me not to go much into the matter in the absence of your instructions.

But may I inquire what objection there would be on the part of the present administration, or of the Senate, to such a convention for this purpose, as I had the honor of offering to the acceptance of the administration of President Pierce, in September, 1854, a convention on the model of that concluded with Great Britain in February, 1853, free from especial clauses in reference to any particular claim, and embracing all claims by citizens or subjects of either country on the government of the other, without designation nor exception of any?

Should any change of circumstances lead you to recur to this subject, it will perhaps be useful to know that such an arrangement can be made. With the highest respect, sir, your obedient servant, HORATIO J. PERRY.

Hon. WILLIAM H. SEWARD,

Secretary of State.

No. 2.]

SIR: *

Mr. Schurz to Mr. Seward.

[Extracts.]

LEGATION OF THE UNITED STATES,
Madrid, July 15, 1861.

Señor Calderon Collantes then asked me whether the declaration of neutrality on the part of Spain in regard to our domestic troubles was satisfactory to my government. I replied that the government of the United States asked for and expected from foreign powers nothing but to be left to dispose of our domestic controversy as it deemed best As to the declaration of neutrality on the part of Spain, I had received no expression of opinion from my government, and that I thought it would be considered satisfactory.

I then asked Señor Calderon Collantes whether any application had been made to her Majesty's government for the recognition of the so-called Confederate States. He replied that no such application had been made, and that to his knowledge none of the gentlemen said to have come to Europe for that purpose had touched the soil of Spain. He assured me, in addition, that if anything of the kind should occur he would immediately communi cate the fact to this legation.

In relation to my presentation to the Queen, Señor Calderon Collantes said that it was uncertain whether her Majesty would be able to receive me previous to her departure for Santander, which was to take place on the 15th instant; but that he would bring the matter before a meeting of the cabinet, to be held the same evening, and advise me in due time of their decision. He requested me, at the same time, to communicate to him the draft of the speech which I intended to deliver at the reception.

In the course of the night Mr. Perry was advised that her Majesty would be pleased to receive me the next day, at 9.30 o'clock p. m.

At the appointed hour I was received by her Majesty. I have the pleasure to annex a copy of the speech I delivered in presenting my letter of credence, as well as her Majesty's answer.

Last night there was a general reception by the Queen and the King consort of the diplomatic corps, which I attended, accompanied by Mr. Perry, I may mention that on both occasions I was, contrary to the rules of court etiquette, admitted in a plain citizen's dress, the shortness of the time not having permitted me to prepare a proper court costume.

I cannot close this despatch without expressing my sincere gratification at the manner in which Mr. Perry had prepared for my reception here, and the many obliging attentions he has shown me since. Although my ac quaintance with him is of but three days standing, yet I have no doubt our official and social interconrse will be of the most cordial nature.

I am, sir, your obedient servant, &c., &c.,

Hon. Wм. H. SEWARD,

Secretary of State, Washington, D. C.

C. SCHURZ.