l system, Holstein contained a great quantity of
colonial produce; and, notwithstanding the measures of severity, it was
necessary that that merchandise should find a market somewhere. The
smugglers often succeeded in introducing it into Germany, and the whole
would probably soon have passed the custom-house limits. All things
considered, I thought it advisable to make the best of an evil that could
not be avoided. I therefore proposed that the colonial produce then in
Holstein, and which had been imported before the date of the King's edict
for its prohibition, should be allowed to enter Hamburg on the payment of
30, and on some articles 40, per cent. This duty was to be collected at
the custom-house, and was to be confined entirely to articles consumed in
Germany. The colonial produce in Altona, Glnckstadt, Husum, and other
towns of Holstein, lead been estimated, at about 30,000,000 francs, and
the duty would amount to 10,000,000 or 12,000,000. The adoption of the
plan I proposed would naturally put a stop to smuggling; for it could not
be doubted that the merchants would give 30 or 33 per cent for the right
of carrying on a lawful trade rather than give 40 per cent. to the
smugglers, with the chance of seizure.

The Emperor immediately adopted my idea, for I transmitted my suggestions
to the Minister for Foreign Affairs on the 18th of September, and on the
4th of October a decree was issued conformable to the plan I proposed.
Within six weeks after the decree came into operation the custom-house
Director received 1300 declarations from persons holding colonial produce
in Holstein. It now appeared that the duties would amount to 40,000,000
francs, that is to say, 28,000,000 or 30,000,000 more than my estimate.

Bernadotte had just been nominated Prince Royal of Sweden. This
nomination, with all the circumstances connected with it, as well as
Bernadotte's residence in Hamburg, before he proceeded to Stockholm, will
be particularly noticed in the next chapter. I merely mention the
circumstance here to explain some events which took place in the north,
and which were, more or less, directly connected with it. For example,
in the month of September the course of exchange on St. Petersburg
suddenly fell. All the letters which arrived in Hamburg from the capital
of Russia and from Riga, attributed the fall to the election of the
Prince of Ponte-Corvo as Prince Royal of Sweden. Of thirty letters which
I received there was no