STIPULATIONS IN THE TREATY OF COMMERCE.

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President (Gen. Taylor) and Cabinet, but owing to the protracted debate on the Slavery question, it did not receive immediate attention.

I shall here add the second and third stipulations of the Treaty of Commerce, which prove the utter waste of powder in the negotiation of the much-abused "Clayton and Bulwer." Section 1st is purely commercial in its character.

Section 2. And inasmuch as a Contract was entered into on the 27th day of August, 1849, between the Republic of Nicaragua and a Company of Citizens of the United States, styled “The American Atlantic and Pacific Ship-Canal Company," and in order to secure the construction and permanence of the great work thereby contemplated, both high contracting parties do severally and jointly agree to protect and defend the above-named Company in the full and perfect enjoyment of said work, from its inception to its completion, and after its completion, from any acts of invasion, forfeiture, or violence from whatever quarter the same may proceed; and to give full effect to the stipulations here made, and to secure for the benefit of mankind the uninterrupted advantages of such communication from sea to sea, the United States distinctly recognizes the rights of sovereignty and property which the State of Nicaragua possesses in and over the line of said Canal, and for the same reason guaranties positively and efficaciously the entire neutrality of the same, so long as it shall remain under

the control of citizens of the United States, and so long as the United States shall enjoy the privileges secured to them in the preceding section of this Article.

Section 3. But if by any contingency, the above-named "American Atlantic and Pacific Ship-Canal Company" shall fail to comply with the terms of their Contract with the State of Nicaragua, all the rights and privileges which said Contract confers, shall accrue to any Company of Citizens of the United States which shall, within one year after the official declaration of failure, undertake to comply with its provisions, so far as the same may at that time be applicable, provided the Company thus assuming said Contract shall first present to the President and Secretary of State of the United States satisfactory assurances of their intention and ability to comply with the same; of which satisfactory assurances, the signature of the Secretary of State, and the seal of the Department shall be complete evidence.

Section 4. And it is also agreed, on the part of the Republic of Nicaragua, that none of the rights, privileges, and immunities guarantied, and by the preceding Articles, but especially by the first section of this Article, conceded to the United States and its citizens, shall accrue to any other nation, or to its citizens, except such nation shall first enter into the same treaty-stipulations, for the defense and protection of the proposed great inter-oceanic Canal, which have been entered

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into by the United States, in terms the same with those embraced in Section Second of this Article.

It will be seen by a comparison, that the spirit, intent, and conception even of both Treaties are similar. Why, therefore, a new compact? Great Britain, by subscribing to Section Fourth, shared all the advantages to be enjoyed by the United States. There was a non-desire at this early date to forego her colonies, and her cherished hopes of "an hereafter” in our midst, as I shall prove as we proceed.

Subsequent to the consummation of the last-named Treaties, the Canal Company experiencing difficulties in properly arranging the details of their proposed work, procured a separation of the privilege of exclusive steam-navigation in the interior waters (which amounted to Lake Nicaragua solely), from the remainder of the original Charter, and secured and established the monopoly of Transit across from Greytown to San Juan del Sur. This is known as the "Nicaragua Transit."

War having occurred in the interior, and there being two distinct Governments, one at Leon, sustained by the Bishop and General Muñoz, and the other at Granada, supported by Gen. Chamorro, the question, if at all admissible, was not at least debatable, "which of the two to choose?" as both claimed precedence and authority. Joseph L. White, Esq. Agent for the Canal Company, in a mode entirely sui generis,

succeeded in negotiating the desired separation. The Leonese Government, however, entered its protest as follows:

"The Provisonal Supreme Government will see with satisfaction the interests of the aforesaid Company arrayed in harmony with those of this State when it shall have recovered its internal peace, and when its Government is qualified to enter upon affairs of this kind; but any negotiations concluded in the meantime are not authorized by it, nor will they be recognized as legal and subsisting."

The President of the State, (Pineda) having been shortly after this, gagged and blindfolded in Leon, by some of his ardent admirers (in the very house too, subsequently occupied by our Minister, Mr. Kerr of Maryland), and placed on a mule and trotted off to Chinandega, was subsequently permitted to leave for Granada, via Realejo and San Juan del Sur.

The Transit went into active operation, and the frequent charges from, and discharges of imported Champagne, never suffered either of the Governments to be sufficiently qualified to enter into the equality or inequality of the Contract or Charter, as subsequently amended. One fact, however, is apparent. The Canal is not in existence, and the Transit has been successful.

CHAPTER XXVII.

RIVAS REVOKES THE TRANSIT COMPANY'S CHARTER-WHAT NICARAGUA CLAIMS IN THE MATTER—THE REPLY THERETO-WHAT THE UNITED STATES AND NICARAGUA AGREED TO DO-WHAT RIVAS DID AND THE REMEDIES THEREFOR-THe cass anD YRISARRI TREATY—WHAT PRESIDENT BUCHANAN SAYS -WANTS AN ARMED FORCE TO PROTECT THE TRANSIT-WHAT THE POSTMASTER-GENERAL SAYS-IMPORTANCE TO FOREIGN RESIDENTS OF KEEPING THE ROUTE OPEN-MONSIEUR BELLY NEGOTIATES FOR A ROUTE-REMARKS OF THE FRENCH PRESS THEREON-CHRISTOPHER COLUMBUS, BARON HUMBOLDT, AND LOUIS NAPOLEON ON INTER-OCEANIC COMMUNICATIONS-OVERLAND ROUTE -GEN. CASS ON THE INTERVENTION OF FOREIGN POWERS-THE POLICY OF THE AMERICAN CONTINENT.

IN August, 1852, the Accessory Transit Company made its first inter-oceanic trip over the Nicaraguan route, and continued in successful operation until February 18th, 1856; then it was suddenly closed, and the Grant and Charter of the Company were arbitrarily revoked by the Government of Rivas. It It will be remembered that at this period General (289)

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