to reduce the conditions
of the capitulation to the surrender of the arms, baggage, artillery, and
horses. England, which was making great efforts to resist the invasion
with which she thought herself threatened, expended considerable sums for
the transport of the troops from Hanover to England. Her precipitation
was indescribable, and she paid the most exorbitant charges for the hire
of ships. Several houses in Hamburg made fortunes on this occasion.
Experience has long since proved that it is not at their source that
secret transactions are most readily known. The intelligence of an event
frequently resounds at a distance, while the event itself is almost
entirely unknown in the place of its occurrence. The direct influence of
political events on commercial speculations renders merchants exceedingly
attentive to what is going on. All who are engaged in commercial
pursuits form a corporation united by the strongest of all bonds, common
interest; and commercial correspondence frequently presents a fertile
field for observation, and affords much valuable information, which often
escapes the inquiries of Government agents.

I resolved to form a connection with some of the mercantile houses which
maintained extensive and frequent communications with the Northern
States. I knew that by obtaining their confidence I might gain a
knowledge of all that was going on in Russia, Sweden, England, and
Austria. Among the subjects upon which it was desirable to obtain
information I included negotations, treaties, military measures--such as
recruiting troops beyond the amount settled for the peace establishment,
movements of troops, the formation of camps and magazines, financial
operations, the fitting-out of ships, and many other things, which,
though not important in themselves, frequently lead to the knowledge of
what is important.

I was not inclined to place reliance on all public reports and gossiping
stories circulated on the Exchange without close investigation; for I
wished to avoid transmitting home as truths what might frequently be mere
stock-jobbing inventions. I was instructed to keep watch on the
emigrants, who were exceedingly numerous in Hamburg and its
neighbourhood, Mecklenburg, Hanover, Brunswick, and Holstein; but I must
observe that my inspection was to extend only to those who were known to
be actually engaged in intrigues and plots.

I was also to keep watch on the state of the public mind, and on the
journ