Rights of Neutrals. It was the contention of England that the flag of a neutral nation does not protect the goods of a belligerent on board a neutral ship, and that regard should be had to the property of the goods, not of the vessel. The claim, which was based on the old rule of the Consolato del Mare, had invariably been upheld by those States which from time to time had had a marked superiority at sea, such as Spain, England, and Denmark. The other Continental States, being comparatively weak at sea, had long been attempting to substitute for the old rule the principle that free ships make free goods, except in the case of contraband of war; though more than one instance could be quoted of States which when at war amongst themselves had been tempted by a comparative superiority at sea, to abandon the principle for which they had themselves contended against the great naval powers. The Continental States were also at variance with England as to the articles which should be included in the list of contraband; and they also protested against the doctrine that a blockade which was not systematic and continuous could be held rightfully to entail the condemnation of a ship which had approached the coast of a belligerent.
But besides the customs of earlier times, there were other reasons which had largely contributed to the maintenance of the rule of the Consolato del Mare. It had been the policy of Europe for the mother country to monopolize the trade of her colonies; and, as a general rule, no other nation had been permitted in time of peace either to carry their produce or to furnish them with supplies. If therefore a belligerent had been successful in destroying the colonial trade of the enemy, but the latter could continue to trade with security under a neutral flag, it was clear that the advantage of superiority at sea was immensely diminished. Hence had grown up what was known as the Rule of 1756, which substantially amounted to this: that a neutral had no right to deliver a belligerent from the pressure of his enemy's hostilities, by trading with his colonies in time of war in a way prohibited in time of peace; and England considered
