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[290] combination exists, or such insurrection suppressed by said State or States, then and in such case it may and shall be lawful for the President, by proclamation, to declare that the inhabitants of such State, or any section or part thereof, where such insurrection exists, are in a state of insurrection against the United States, and thereupon all commercial intercourse by and between the same and the citizens thereof and the citizens of the rest of the United States shall cease, and be unlawful, so long as such condition of hostility shall continue; and all goods and chattels, wares and merchandise, coming from said State or section into the other parts of the United States, and all proceeding to such State or section, by land or water, shall, together with the vessel or vehicle conveying the same, or conveying persons to or from such State or section, be forfeited to the United States: Provided, however, That the President may, in his discretion, license and permit commercial intercourse with any such part of said State or section, the inhabitants of which are so declared in a state of insurrection, in such articles, and for such time, and by such persons, as he, in his discretion, may think most conducive to the public interest; and such intercourse, so far as by him licensed, shall be conducted and carried on only in pursuance of rules and regulations prescribed by the Secretary of the Treasury. And the Secretary of the Treasury may appoint such officers at places where officers of the customs are not now authorized by law, as may be needed to carry into effect such licenses, rules, and regulations.

It was provided in section 9 as follows:

Proceedings on seizures for forfeitures, under this act, may be pursued in the courts of the United States in any district into which the property so seized may be taken, and proceedings instituted.

It will be seen, by reference to the provisions of this section, that the President of the United States was authorized to issue his proclamation, declaring the inhabitants of any of our states, or of a portion of any one of them, to be in insurrection, and thereupon all commercial intercourse became unlawful, and was required to cease, and all goods and chattels, wares and merchandise, on the way to, or from, the state or part of a state, were forfeited to the United States, together with the vessel or vehicle in which they were conveyed. Two effects follow this proclamation: first, the cessation of all commercial intercourse with the citizens of the United States; second, the forfeiture of all goods in transitu. When this condition has been reached, the act then authorizes the President, in his discretion, by license, to reopen the trade in such articles, and for such time, and by such persons, as he may think most conducive to the public interest. The articles of trade were to be chiefly cotton and tobacco; the time during which it might be continued was evidently so long as it could be used for the purpose in view; the persons were those who would most skillfully advance the end to be accomplished; the public interest was the collection and transportation of the cotton to the European manufacturers.

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