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[Sidenote:  Hostile character acquired by Trade.]

Again, a National Character may be acquire by Trade, or, as it is called, by commercial domicile.  In general, the national character of a person, as neutral or enemy, is determined by that of his domicile; but the property of a person may acquire a hostile character independently of his personal national character derived from personal domicile.  A person carrying on trade habitually in the country of the enemy, though not personally resident there, should have time given him to withdraw from that commerce; it would press too heavily on neutrals to say, that immediately on the first breaking out of a war, their goods should become subject to confiscation.  But if a person enters into a house of trade in the enemy’s country, in time of war, or continued that connexion during the war, he cannot protect himself by mere residence in a neutral country.  “It is a doctrine supported by strong principles and equity,” says Sir William Scott, “that there is a traffic which stamps a National Character on the individual, independent of that Character which mere personal residence may give him."[70] The principle does not go to the extent of saying that a man, having a house of trade in the enemy’s country, as well as in a neutral country, should be considered in his whole concerns as an enemy’s merchant, as well in those which respected solely his neutral house, as in those which belong to his belligerent domicile.[71]

His lawful trade is exonerated from the operation of his unlawful trade, in all cases, and under all phases.  All trade that does not originate from the belligerent country is protected, but not so, if it can be traced so to arise in not too remote a degree.

The same protection however is not extended to the case of a merchant residing in the hostile country, and having a share of a house of trade in an enemy’s country.  Residence in a neutral country will not protect his share in a house established in the enemy’s country, though residence in the enemy’s country will condemn his share in a house established in a neutral country.[72]

[Sidenote:  Rule of 1756.]

The next mode in which a hostile character may be given to those not naturally bearing it, is by dealing in those branches of commerce which are confined in the time of peace to the subjects of the enemy:  i.e. the ships and cargoes of a Neutral engaged in the colonial or coasting trade of the enemy (not open to foreigners in time of peace), are liable to the penal consequences of confiscation.  This point; was first mooted in the war of 1756, and is called the rule of 1756.[73]

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[Sidenote:  National Character of Ships.]