[Sidenote:  Neutral Goods on Armed Hostile Vessels.]

In America, Neutral Goods laden on an Armed[160] Belligerent Vessel are still protected, but in England it is different.  “If the neutral,” says Sir Wm. Scott,

“puts his goods on board a ship of force, which will be defended by force, he betrays an intention to resist visitation and search, and so far adheres to the belligerent, and withdraws himself from his protection of neutrality."[161]

[Sidenote:  The Sale and Purchase of Vessels by Neutrals.]

The Purchase of Ships from the enemy, is a liberty that has not been denied to neutral merchants, though by the regulation of France, it is entirely forbidden.  The rule that this country has been content to apply is, that property so transferred, must be bona fide and absolutely transferred; there must be a sale divesting the enemy of all further interest in it; and that any thing tending to continue his interest, vitiates a contract of this description altogether.[162]

Russia is reported to have several vessels of war in different parts of the world; some of these vessels have been sold, and others are said to be in the process of sale.  I shall cite what Sir Wm. Scott says, on a case nearly similar.

“There have been many cases of enemy merchant vessels driven into ports out of which they could not escape, and there sold, in which after much discussion, and some hesitation of opinion, the validity of the purchase has been sustained.  But whether the purchase of a vessel, built for war, and employed as such, and rendered incapable of acting as a ship of war, by the arms of the other belligerent, and driven into a neutral port for shelter; whether the purchase of such a ship can be allowed, which shall enable the enemy so far to rescue himself from the disadvantage into which he has fallen, as to have the value restored to him by a neutral purchaser, is a question on which I shall wait for the authority of a superior court, before I admit the validity of such a transfer."[163]

It has been said that the sale must be absolute and unconditional; so that a sale under a condition to re-convey at the end of the war, is invalid.[164] Similarly, where the seller is bound by his own government under a penalty not to sell, except upon a condition of restitution at the end of the war, and the purchaser undertook to exonerate the seller, the sale was held invalid.[165]

SECTION II.

Contraband of War.

[Sidenote:  Contraband of War.]

The general freedom of neutral commerce is subject to certain restrictions with respect to neutral commerce.  Among these is the trade with the enemy in certain articles, called Contraband of War.  These are generally warlike stores, and articles which are directly auxiliary to warlike purposes.  Writers on this subject have made distinctions between those things useful only for the purposes of war, those which are not so, and those which are susceptible of indiscriminate use in war and peace.