rade 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]

* * * * *

[Sidenote: National Character of Ships.]

When there is nothing particular or special in the conduct of the
vessel itself, the national character is determined by the Residence
of the Owner; but there may be circumstances arising from that conduct
which will lead to a contrary conclusion. It is a known and
established rule with respect to a vessel, that if she is navigating
under the pass of a foreign country, she is considered as bearing the
national character of the nation under whose pass she sails; she makes
a part of its navigation, and is in every respect liable to be
considered as a vessel of that country. In like manner, and on similar
principles, if a vessel, purchased in the enemy's country, is by
constant and habitual occupation continually employed in the trade of
that country, commencing with the war, continuing during the war, and
evidently on account of the war, that vessel is deemed a ship of the
country from which she is so navigating, in the same manner as if she
evidently belonged to the inhabitants of it.[74] Further, when parties
agree to take the pass and flag of another country, they are not
permitted, in case any inconvenience should afterwards arise, to aver
against the flag and pass to which they have attached themselves, and