cent.* and I apprehend there is little or no difference, in the insurance of a like circuitous voyage from the French Windward Islands to France. Of course, when the voyage is really to end at a neutral, instead of a belligerent port, in Europe, the premium on the latter branch of it, is rather lessened than increased.

The compound premium of insurance with. convoy, or the long premium, as it is called, is not easily reducible to its proper absolute value, for the purpose of this comparison; since the risque of missing convoy, is compounded of too many chances, and combinations of chances, of various kinds, physical, commercial, and political, to be averaged by any calculation: but since the assured, in the case of loss, as well as in that of missing convoy, has no return of premium, and the return is always, with a deduction of the difference between pounds and guineas, or 5 per cent, which is 'retained by the underwriter or broker, the premium of 10 to return 5, may be estimated at near 7 per cent, and that of 8 to return 4, about 1 per cent lower.

* This statement has reference to the month of August last, when the author can with confidence assert that these were the current premiums. He understands that they have since been raised, in consequence of the recent decisions in the Prize Court, which have been already noticed. See Appendix (H).

M

The consequence of these premises is, that the sugars of Cuba are insured on their circuitous carriage to Spain at a less expence in the pro portion of 6 to 7, than the sugars of Jamaica to England; and those of Martinique and Gua daloupe, probably, are insured by a like route to France, on terms nearly equal to the value of the long premium, on the direct voyage from our own Leeward Islands.

But this is a conclusion far short of the true result of the comparison: for the English merchant or planter, has also to pay the convoy duty, which is evidently an additional price of his insurance from the war risques of the passage.

The convoy duty on the outward voyage to the West Indies, is no less than four per cent.; on the homeward voyage, there is at present no duty expressly for the protection of convoy; but a new war tax by way of advance on the amount of old duties, has been imposed on sugars imported, and on all other articles of West India produce; part of which advance was understood to be a substitute for an express convoy duty, and on that principle, it is not wholly drawn back on exportation.

It would require an intricate calculation, as well as data not easy to obtain, to determine what is the amount of this charge to the im

porter, if reduced into a specific tax for the protection of convoy. I will, therefore, suppose it to be equal to the convoy duty on the outward voyage: or what will equally serve our purpose, let the insurance on an outward voyage to the West Indies be supposed to be the same in point of premium, as in fact it nearly, if not exactly is, with the insurance homeward: then the whole price of protection to the English West India shipper, compared with that for which the enemy planter or merchant, is insured by the same underwriters, on the passage of his goods to or from the immediate neighbourhood of the same islands, is in the Jamaica trade, as 1'1 to 6, and in the Leeward Island trade, as 10 to 6, a difference against us, computing on the higher premium of above 45 per cent. in the former case, and 40 per cent. in the latter.

But if we separate the price of the sea risque, or the warranty against those dangers which are common both to peace and war, from the war risque, or price of the insurance against detention or capture by an enemy, the difference will be found still more highly adverse to that shipper, whose sovereign is master of the sea: for as the premium of insurance from Martinique to France, before the war, was 3 per cent., while, from the British islands in the same part of the West Indies, it was only 2; the advance occasioned

by the war to the British shipper, convoy duty. being reckoned as insurance, is no less than eight-tenths of the whole existing charge, or a rise on the peace premium of 400 per cent. ; while to the enemy, the advance is only threesixths, or 100 per cent. on the same mode of computation.

An objection here may naturally arise, to which I regret that a shameful but conclusive answer, can be given. Since the rates of insurance which I have mentioned as the current prices of protection to the commerce of our enemies, when carried on under neutral colours, are those which are paid in this country, to British underwriters, and an insurance on the property of enemies is illegal, the hostile proprietor may be thought, not to be effectually secured; for should his secret be, as in the event of capture it sometimes is, discovered, the insurance will be void.

Neutralizing agents, I first answer, are not so incautious, after twelve years experience in their business, and in the practice of the British prize courts, as to expose their constituents very frequently to detection. But such as this risque is, the masqueraders have found an effectual mean of avoiding it. Though a strange and opprobrious truth, it is at Lloyd's Coffee House perfectly notorious, that our underwriters consent to stand

between the naval hostilities of their country, and the commerce of her disguised enemies, by giving them an honorary guarantee against the perils of capture and discovery.

The mode of the transaction is this-A policy is executed, such as may be producible in any court of justice; for the property is insured as neutral: but a private instrument is afterwards signed by the underwriters, by which they pledge themselves, that they will not, in case of loss, dispute the neutrality of the property, or avail themselves of any sentence pronouncing it to be hostile. Sometimes, a verbal engagement to this effect, is thought sufficient, but it has now become a very general practice to reduce it into writing; and in the one mode, or the other, these releases of the warranty or representation of neutrality, are almost universal. It is true, such stipulations are not binding in point of law but every one knows, that at Lloyd's Coffee House, as well as at the Stock Exchange and Newmarket, those contracts, which the law will not inforce, are on that very account, the most sacred in the estimate of the parties, and the most inviolably observed.

The enemy, therefore, has as full security for his low premium, as the British importer for his high one; nor is the comparative result of our premises shaken by the expence of this special