5
ARBITRATION
TAKES PLACE
OF CONFLICT
Powers Won Over to
Way of Peace.
MFT'SEES GREAT PROGRESS
Special Message Discusses
Year's intercourse With
'Other Countries.
REVIEWS MEXICAN CIVIL WAR
Mobilization of American Troops on
Southern Border Explained For.
' clgn Trade Relatlons-Need
For "American Merchant
Marina,
Washington, Deo, 7. Prosldcnt Taft
today eont to congross a spoclal mes
sage on foreign rolatlonB. The mes
sage folio wd:
Too rolntlonfl or the United SUtes
with other countries havo continued
during tho past twelve months upon a
basts of tho usual good will and
friendly Intercourse.
Arbitration.
Tho year Just passed marks an lm
portantjgeneral movement on the part
of the powers for broader arbitration.
In the recognition of the manifold
benefits to maklnd In tho extension of
the policy of the settlement of Inter
national disputes by arbitration rather
than by war, ami In response to a
widespread demand for an advance Is
that direction on the part of the peo
ple of the United States and of Great
Britain and of France, new arbitration
treaties were negotiated last spring
with Great Britain and France, the
terms of which were designed, as ex
pVeeaed In the preamble of these
treaties, to extend the scope and obli
gations of the policy of arbitration
adopted In our prosent treaties with
those governments. To pave tho way
for this treaty with the United States,
Great Drltaln negotiated an Important
modification In Its alliance with Japau,
and the French government also ex
pedited the negotiations with signal
good will. The new treaties have been
submitted to the senate and are
awaiting Its advice and consent to
their ratification, All the essentials
of these Important treaties have long
been known, and It Is my earnest
hope that they will receive prompt
and favorable action,
Clalm-of Alsop & Co. Settled,
I am glad to report that on July 6
last tbe American claim of Alsop &
Co. against the government of Chile
was finally disposed of by the decision
of his Britannic majesty George V., to
whom, as amiable compositeur, the
matter had been referred for deter
mination. His majesty made an
award of nearly 11,000,000 to the
claimants, which wag promptly paid
by Chile. The settlement of this con
troversy has happily eliminated from
ike relations betwen the republlo or
Chile and the United States the only
question which for two decades had
given the two foreign offices any seri
ous concern and makea possible the
unobstructed development of the rela
tions of friendship which It has been
the aim of this government In every
possible way to further and cultivate.
Arbitrations,
la further Illustration of the practi
cal and beneficent application of. the
principle of arbitration and the under
lying broad spirit of conciliation, I am
happy te advert to the part of the
United States In facilitating amicable
settlement of disputes which menaced
the peaea between Panama and Costa
Klca and between Haiti and tbe Do
ulnleftK republic,
Since the date of their Independ
ence, Colombia and Costa Ittca bad
been seeking a solution of a boundary
diepute. which eame as a heritage
from Colombia to the new republle ot
Panama upon its beginning life as an
ladepeadent nation. Although the din
putaats had submitted this question
ipr decision to the president of
France under the terms of an arbitra
tion treaty, the exact Interpretation
of the provisions of the award ren
dered had teen a matter of serious
disagreement between the two ceua
trles, both contending for widely dif
ferent lines even under the terms of
the decision. Subsequently and since.
1903 this boundary question had bees
the subject of fruitless dlpiomatlo ne
gotiations between the parties, in
January, 1810, at the repeat ot both
governments the agents repressing
them met la conference at tbe depart
ment of state and subsequently eon
eluded a protoaol submitting this long,
pending controversy to the arbitral
Judgment of the chief Justice of the
United States, who consented to act
ta this eapaetty. A boundary eommla
slow, Recording to the International
agreement, has sow been appelated,
and It Is expected that the arguments
will shortly proceed and that this long
standing dispute will he honorably
aad satisfactorily terminated.
Again, a few jaeetba o Itapfieared
1 1 " -
tbnt tho Dominican republic and Hall
woro about to enter unon hostilities
becauso of complications growing out
of an acrimonious boundary dispute
which tho efforts ot many years had
failed to eolvo. The government of
the United States, by a friendly Inter
position of good o HI cot, succeeded la
prevailing uopn the parties to place
tbolr reliance unon some form of eacl-
flo settlement Accordingly, oa the
friendly suggestion of this govern
ment, tne two governments empow
orcd commissioners to meet at Wash
Ington In conference at the state de
partment In order to arrange the
terms ot submission to arbitration ot
the boundary controversy.
Chamlzal Arbitration Nat Satlafaeterv
Our arbitration of the Chamlzal
boundary Question with Mexico was
unfortunately abortive, but with the
earnest efforts oa the part of both
governments which Its Importance
commands, it Is felt that an early
practical adjustment should prove pos
sible.
Mexfee.
The recent political events la Mexi
co received atteatlou from this gov
ernment because of the exceedinair
delicate and difficult situation created
along our southern border and the ne
cessity for taking moasures properly
to safeguard American Interests. Thn
government of tho Unltod States, la
its doslro to secure a propor observ
ance and enforcement of tho oo-callod
neutrality statutos of tho federal kov-
ernment, Issued directions to the an-
proprlato officers to exercise a dill-
gont and vigilant regard for tho re
quirements of such rules and laws, Al
though a condition of actual armod
conflict existed, thcro was no official
recognition of bolllgorcncy Involving
tho technical neutrality obligations ot
International law.
On the 0th ot March last. In tho ab
sence of tho socrctary of stato, 1 had
n personal Intorvlow with Mr. Wilson,
tno ambassador of tho United States
to Mexico, In which ho roportod to mo
that tho conditions In Mexico wore
much more critical than tho pross dls
patchos disclosed; that President Diaz
was on a volcano of popular uprising;
that the small outbreaks which bad
occurrod wore only Bymptomatlo of
tho whole condition; that a very large
per cent of the people were In sym
pathy with tho Insurrection; that a
general explosion was probable at any
time, in which enso ho foarcd that the
440,000 or more American residents In
Mexico might bo BBsallcd, and that
tho very largo Amorlcan invontmenta
might be' Injured or destroyed.
After a conference with the secre
tary of war and tho secretary of the
navy, I thought It wise to assemble an
army division of full strength at San
Antonio, Tex., a brigade of three regi
ments nt Galveston, a brigade ot In
fantry In tho Los Angeles district ot
Southern California, together with a
squadron of battleships and cruisers
and transports at Galveston, and a
small squadron ot ships at ,San Diego.
At the same time, through our repre
sentative at the City of Mexico, I ex
pressed to President Diaz the hope
that no apprehensions might result
from unfounded conjectures as to
these military maneuvers, and as
sured him that they had no signifi
cance which should cause concern to
his government
The mobilization was effected with
great promptness, and on the 16th ot
March, through the secretary ot war
and the secretary ot the navy, In a let
ter addressed to the chief ot staff, I
Issued the following Instructions:
"It seems my duty as commander
In chief to place troops In sufficient
number where, if Congress shall di
rect that they enter Mexico to save
American lives and property, an ef
fective movement may be promptly
made. Meantime, the inovemont ot the
troops to Texas and elsewhere near
the boundary, accompanied with sin
cere assurances ot the utmost good
will toward the present Mexican gov
ernment and with larger and more
frequent patrols along the border to
prevent Insurrectionary expeditions
from American soil, will hold up the
hands ot tho existing government and
will have n healthy moral effect to pre
vent attacks upon Americans and
their property In any subsequent gen
eral internecine strife. Again, the
sudden mobilization ot a division of
troops has been a groat test ot our
army and full of useful instruction,
wiuia the maneuvers that are thus
made possible can occupy the troops
and their officers to great advantage.
rue assumption by tho press that
I contemplate Intervention on Moxlcan
soil to protect American lives or prop
erty Is ot course gratuitous, because I
seriously doubt whether I have such
authority under any clrcurastancos,
ana i; i itau l would not exercise it
without express congressional ap
proval. My determined purpose, how
ever, Is to be In a position so that
When danger to American lives and
property la Mexico threatens and the
qxlsttns governmont la rondorcd holp
leea by the insurrection, I can prompt
ly execute congressional orders to
protect them, with effect
"Meantime, I send you this letter.
through the secretary, to call your
attention to some things in connection
wim tee preeeace or tae division la
the aouthweet which have doubtless
occurred to you, but which I wish to
emphasize.
"In the first place, I want to make
the mobilization a first-class training
for the army, and I wish you would
give your time and that of the war
college to a4vtslag aad carrying out
maneuvers of a useful character, aad
plan to continue to do this durlag tha
next three months. By that tlaie we
may expect that either Amhaseador
Wilson's fears will have, been realized
aad chaos and -Us consequeacea hava
ensued, or that the present govern
ment of Mexico will have so read-
Justed mattors as to secure tranquillity
a result devoutly to he wished. Thn
troops can thon bq returned to their
posts.
"Second, Texas la a state ordinarily
peaceful, bat you. caa not pat $$,00
troops Into" It without raaalag iima
risk of a colllslea between tha peo
ple of the slate, and especially the
Mexicans who llvn in Ttiu near the
border and who sympathise with tho
insurrectos, and tbe federal soMfers.
jror that reason I beg you to he as
careful as you can to prevent friction
of any kind.
"Third, One of the great treaties
In tbe coflcentmtlo of troon la the
danger of disease, aad I suppose that
you nave adopted tee most medera
methods or the preventing aad, if
necessary, for stamnlnar out enldeealea.
That Is so much a part of a earn
paiga mat It hardly seems aeeessary
for me to call attention to it
"Finally. 1 wish you to examine thn
question of the patrol of the herder
ana put as many troops oa that work
as la nractlrahla and
now enKSKOd In It. In order tj nrarant
the use of our borderland for the
carrying on of the Insurrection. 1 have
given assurances to the Mexican am
bassador on this polat
I sincerely hone that this exnerl-
ence will always be remembered by
the army and navv na a tisAfnl maana
of education, and I should be greatly
disappointed It it resulted in any In
Jury or disaster to our forces from any
cause. I hnvo taken a good deal of
responsibility In ordering this mobil
ization, but I am rnndv in ntiitriir fnr
it If only you and those under you
UBO tho Utmost earn to avoid thn illf.
flcultleB which I havo pointed out"
i nm moro than happy to here ro-
COrd the fact that nil annrehfinHlnnn
as to tho effect of the presence of so
largo a military force In Texas proved
groundless; no disturbances occurred.
From tlmo to tlmo communications
woro roccivod from Ambassador "Wll.
son, who had returned to Moxlco, con
firming tho vlow that tho massing of
Amorlcan troonfl In the netzhhnrhnnd
had had good effect
The Insurrection continued and ,r-
suited In engagements between tho
regular Mexican trnnnn nml (hn Incur.
gents, and this along the border, so
max in several instances bullets from
the contending forces struck American
citizens engaged in their lawful oeeu.
nations on American soli. '
Pro DO r nrotosta worn mndn ncralnHl
thcoo invasions of Amorlcan rights to
tno Mexican authorities.
The presence ot a lares military
and naval forco available for prompt
action, near the Mexican border.
proved to' bo most fortunate under the
somewhat trying conditions presented
by this Invasion of American rights.
Had no movement therntofnrn tafcnn
place, and becauBO of these ovents It
nau been necessary then to bring
about tho mobilization, It must havo
had sinister significance. On ttio
Other hand, tho presence of the troops
perore ana at tne tlmo of the unfof"
tunato killing and wounding of Amer
ican citizens at Douglas, made clear
that the restraint exercised by our
government In regard to this occur
rence was not due to a lack ot force
or power to deal with It promptly and
aggressively, but wsb due to a real
desire to use every moans possible to
avoid direct intervention In tho af
fairs of our neighbor, whose friend
ship we valued and wore most anxious
to retain
The policy and action of this rov.
ernment were based upon an earnest
rricnaiinesa for tbe Mexican people
as a whole, and It Is a matter of
gratification tn notn flint thin nfi..A
- - - . - ... - - - ....... .i fc..tUUU
of 'strict Impartiality as to all fac
tions in Mexico and of sincere friend
ship for the neighboring nation, with
out regard for party allegiance, has
boen generally recognized and has
resulted, in an even closer and more
sympathetic understanding between
the two remibllcB and a warmer re
gard one for the othor. Action to
suppress violence and restore tran
quility throughout tho Moxlcan ropub
llo was of peculiar Interest to thin
government, In thnt It concerned tho
safeguarding of Amorlcan llfo and
property In that country. On May 25,
1911, Prcsldont Diaz resigned, Senor
do la Barra was chosen provisional
president Elections- for president
and vice-president wern thomnriJiv
held throughout the republlo, and
Henor, Francisco I. Madero was for
mally declared elected on October IB
to tho chief magistracy. On Norem.
ber 0 Prcsldont Mndoro ontered upon
we iiuiioa oi his omco.
Honduras and Nicaragua Treaties
Proposed.
As to tho situation in nontni
America, I havo taken occasion In tho
past to emphaslzo most strongly tho
Importance that should bo attrlbutod
to tho consummation ot the conven
tions between the Itopubllcs of Nica
ragua and ot Honduras and this
country, and I again earnestly rccom
mond that tho necessary advlco and
concent ot tbe eonato be accordod to
these treaties, which will make It pos
sible for these Central Amorlcan re
publics to eater upon an era of genu
ine economlo national development
Our relations with the Republlo ot
Panama, peculiarly important, dua to
mutual obligations and the vast in
terests created by the canal, hava
continued In the usual friendly man
ner, and we have been glad to make
appropriate expression of our atti
tude of sympathetic Interest In the
endeavors of our neighbor In undertak
ing the development of tho rich re
sources ot the country.
The Chinese toans,
The past year has been marked la
our relations with China by the con
clueloa of two Important Internatloa
al loans, one (or the construction of
the Hukuaag railways, the other for
the earryleg out ot the currency re
form to which China was pledged by
treaties with the United States, Great
Britain, and Japan, of which men
tlon was made in my last annual mes
sage.
Knowing tho Intercut ef the United
StMe la the reform ot Chinese cur
rency, tha ChlniMMi aroTerntoMit.
the autumn ot 1910, sought the assist
ance ot the Amerlcaa government to
procure fuads with whkh to accom
plish that all-lmportaat reform. la
the course of the suhsequeat aefotla
tlons there waa eembtaed with the
proposed currency loan one for cer-
wa MiwrKii aeveiopmeats la, w is
churia, the two loans aarrecatlnr tha
sum of W.WO,000. While this was
originally to be solely aa Amerlcaa
enterprise, the Amerlcaa government
consistently with 1U daaire to secure
a sympathetic and practical co-opera
tion or the great powers toward main
taining the principle ot equality of
opportunity and the administrative In
tegrity of China, urged the Chinese
government to admit to participation
la the currency loan the associates
OI IMS AttlfM-lran vrnun In 4 Via Uu.
kuaag loan. While ot Immense lm
POrtaaCO In Itonir ) rtnrm An.
templaled la making this loaa Is but
preliminary to nthni- and
prehenslve fiscal rfnnn whixh win
oe or incalculable benefit to China and
foreign Interests alike, since they will
strengthen the Chinese empire and
promote tne rapid development of in
ternational trade.
When these
gun, It was understood that a financial
aaviaor was to bo employed by China.
In connection with tho reform, and in
order thnt absolufn nrmnlltv In all
respects nmong tho lending nations
might bo scrupulously obsorved, the
Amorlcan governmont proposed the
nomination of a noutral advisor, which
Was agrood to by China and ttia nltinr
governmonts concerned. On Soptem
bor 28. 1911. Doctor
dont of tho Dutch Java bank and a
nnnnclor of wide experience In the
Orient, was recommended to the Chl-
neso governmont for tho post of mone
tary adviser.
Especially Important nt
when tho ancient Chinese empire Is
shaken by civil war Incidental to its
awakening to the many Influences and
activity of modernization, are the co
operative policy of Rood undernlnndlnt?
which has been fostered by the Inter
national projects referred to above
and tho general sympathy of view
among all the powors Interested In the
far east
New Japanese Treaty.
The treaty of rnmmorco nrf nl.
tlon between tho United States and
Japan, signed In 1894, would by a
strict Interpretation of Its provisions
hnvo terminated on July 17. 1012. Jan.
an's general treaties with tho other
powers, however, terminated In ion.
and the Japanese government ex
pressed nn earnest desire to conduct
the negotiations for a now treaty with
tne united states simultaneously with
Its negotiations , xvlth the othor pow
ers. Thoro were a number of lmnor-
tant questions Involved In the
treaty, Including tho Immigration of
laborers, revision of the customs tar
iff and the right ot Americana to hold
real estate In Japan. .The United
States consented tj waive all techni
calities and to enter at once upon ne
gotiations for a now treaty on the un
derstanding that thero should be a
continuance throughout the life of the
treaty of the same effective measures
for the restriction of Immigration of
laborers to American territory which
had been In operation with entire sat-
iBinctlon to both governments since
1908. The Japanese government ac
cepted this basis ot negotiation, nnd
a now treaty was quickly concluded,
resulting in a highly satisfactory set
tlement of the other questions re
ferred to.
A satisfactory adjustment haa alno
ben effected of the aueatlon trrnwlne
out of the annexation of Korea by
Japan.
Europe and the Near East
In Europe and tho noar oast, durinir
the past twelve month, there has been
at times considerable nolltlcal unmet.
The Moroccan question, which for
porno mouths was tho cause of great
anxiety, happily appears to have
reacued a stage at which It need no
longer be regarded with concern. Tha
Ottoman empire was oocupled for a
period by strife In Albania and Is now
at war with Italy. In Greece and the
Balkan countries tho dlsuuletlne no-
tentlalttlos of this situation havo been.
more or less folt Persia has been tha
scene ot a long internal struggle.
These conditions have boon the
of uneasiness In European diplomacy,
but thus fnr without direct political !
concern to tho United States.
la 'tho war which unhanollv exists
between Italy and Turkey this gov
ernment has no direct political Inter
est and I took occasion at thn aulta-
ble tlmo to Issue a proclamation ot
noutraiity in that, conflict. At the
same tlmo all necessary steps have
beea takon to safeguard the personal
Interests ot American citizens and or
ganisations In so tar aa affected by the
war.
In snlte of the attendant eaonnmiA
uncertainties aad detriments te com
merce, tho United States has aralnad
markedly In lta commercial standing
with certain ot the nations of the
near east Turkey, especially, la be
ginning to come into closer relations
with the United States through (ha
new interest ot American manufactur
ers RB a exporters in the possibilities
ot those regloas, and It Is hoped that
foundations are balna laid for a larra
and mutually beneficial exchange of
commodities betweea the pwo coun
tries. International Cenventlona and Confer
ences. The supplementary protocol to Tha
Hague convention for the establish
ment of on International prize court,
mentioned In my last annual message,
embodying stipulations providing for
an alternative procedure which would
remove the coaetltuttoaat objection to
that part of The Hagae convention
which provides that there may be aa
appeal to tho proposed court from the
decisions of national courts, has re
ceived the signature of the govern
meats parties to the original conven
tion aad has beea ratified by the gor
ernment of the United States, together
with the prize court convention.
The deposit of the ratifications with
the gbverameat ot the Netherlands
awaits action by the powers oa the
declaration, signed at London on Feb
ruary 26, 1909, of tbe rules of Interna
tional law w be recognized within the
meaning ef article seven ot The Hague
cenventlea tor the establishment of aa
International prize court
Fur-Seal Treaty.
The fur-seal controversy, which for
nearly twenty-five years has been the
source of serious frictloa betweea tho
United States and the powers border
lax UDOll the north PaelBn cvoan.
whose subjects have been permitted to
engage in pelagic sealing against the
fur-aoat tlarda' tiavltlB. tViaJt- kraaJIna
- " " . -? 111 ...v.. kll V . U lll)
grounds within the Jurisdiction of the
united States, has at last been satis
factorily adjusted by the conclusion ot
the North Pacific sealinx convention
entered into between tha ITnltcd
States, Great Britalri, Japan and Itus
sla on the EOvcnth of July last. This
convention Is a conservation measure
or yory great Importance, aad If It Is
carried out In the sulrlt of rfecfhroeal
concession and advantage upon which
it is unscu, tnoro Is ovory reason to be
Hevo that not only will It rosult In pre
serving tho fur-ncal horde of tho north
Pacific ocean and restoring them to
their former valuo'for thn ntirnntrx of
commerce but also that It will ntfnrd
a permanently satisfactory settlement
oi a quostipn tno only other solution
of which seemed to ho thn total do.
structlon of tho fur seals. In another
aspect, also, this convention is ot Im
portance in that It flimlnhoa an 111, ,o.
tratlon of the feasibility of securing a
general International game law for the
protection of other mammals ot the
sea, tho preservation of whlnh la nf
Importance to all tho nations of the
world.
Tho attention of conn-ess Is esneetl.
ly called to the necessity for legisla
tion on tho part of the United States
for the DUmoSO of ftllfllllncr tha nhlla.
tlons assumed under this convention,
to wmch tho senate gave Its advice
and consent on the twentv.fnurth dav
of July last
International Opium Commission.
In a special messaKo transmitted to
the congress on tho seventh of Janu
ary, 1911, In which I concurred In the
recommendations made by the secre
tary Ot StatO In record to certain
ful legislation for the control of our
interstate and forelgu traffic In opium
aad other monaclne. druH. I mm! ad
from my annual message of Decem
ber 7, 1909, In 'which I announced thnt
tho results ot the International Opium
commission hold at Shanghai In fiVh.
ruary, 1909, at tho invitation of the
United States, had boen laid before
this government: that thn rnnnrt nf
that commission showed that China
was making rcmarkablo progress and
admirable efforts toward tho eradlnn.
tlon of tho opium evil; that the Inter
ested governments had not permitted
their commercial interests to prevent
their cc-operatlon in this reform; and,
aa a result of collateral lnvestlnationa
of the opium question In this country,
I recommended that the manufacture,
sale and use of onhim In tha TTnltad
mates should be .more rigorously con-.
troiieu oy legislation.
Prior to that time and n contlmm.
tlon of the policy of this government
to secure tho co-ODeratlon of the Inter.
cstod nations, tho United States pro
posed an international opium confer
ence with full powers for tho purpose
of clothing with tho force of interna
tional law the 'resolutions adopted by
the above-mentioned commission, to-
eethor with their nnsentitil cnrnllnrtnn
The othor powers concerned cordially
responded to tho proposal ot this gov
ernment, and. T am triad to hn' nhla tn
announce, representatives ot all the
powors assembled in conference at
Tho Hague on the first ot this month.
Since the passage of the opium-exclusion
act, moro than twenty states
havo been animated to modify their
nharmacv laws and lirlnur thmri In an.
cord with tho spirit ot that act, thus
stamping out, to a measure, the in
trnatntn trnflln In onlum and nthar
habit-forming drugs. But, although I
have urgod on tno congress the pass
ago of certain measures for federal
control of tho interstate and foreign
traffic in these drugs, no action has
yet ooon inKen. in viow or tho fact
that thero Is now stttlntr at The Hneiia
so important a conference, which has
under reviow tno municipal laws of
the different nations for tho mttlrntlnn
of their opium and other allied ovlls, a
conference wnicn win certainly deal
with the international aspects ot these
evlla." it seems to me moat oscantlat
that the congress should take Immedi
ate actloa on tho aati-narcotlo legisla
tion tn which I have already callad at.
tentloa by a special message.
Foreign Trade Relatione ef the United
States.
In my last annual message I re
ferred to the tariff negotiations of the
department ot stato with foreign coun
tries In connection with the applica
tion, by a series of proclamations, of
the minimum tariff ot the United
States to importations from the sev
eral countries, and I stated that, In its
general operation, section 2 of the
now tariff law bad proved a guaranty
ot continued commercial peace, al
though there were, unfortunately, In
stances, where foreign governments
dealt arbitrarily with Amerlcaa Inter
ests within their Jurisdiction la a
manner injurious and inequitable.
During the past year some Instance
of discriminatory treatment have beea.
removed, but I regret to say that there
remain a few Cases ot differential
treatment adverse to the commerce e
the United States. While aoae ef
these Instances bow' appears to amoaat .
to undue discrimination la the seaee
of section 2 ot the tariff law of Aagast'
C, 1909, they are all exceptions to that,
complete degree ot equality ot tariff
treatment that the department ot etate
has consistently sought to obtain far
American commerce abroad.
While the double tariff feature et
the tariff law ot 190 has beea assply
Justified by the results achieved la re- .
moving termer aad preveatiae; new, -;
-uadae diserimlaatloaa against AmerU
wuarautw, t w la unnvn in a t Kin a a
ume MS coma ror tun aniaiiMt or .
this feature of the law in Buch way aa v
to provide a graduated mean of meet- -'
lng varying degrees ot discriminatory :
1 . . . . .
n TOiiuout ai American commerce ib,w
fOrafw rnnnMaa aa wall aa In
tect the financial Interests abroad ot,
Amerlcaa citizens against arbitrary y
and injurious treatment on the part ot " '
foreign governments through either
legislative or administrative measures.
It would also seem desirable that .
the maximum tariff of the United''
States should embrace within Its pur
view the free list, which is not the
case at the present time, in order that
it might have reasonable significance
to tho governments of thoso countries
from which the importations lato the
united states are confined virtually ta
n.H.tnfl n 11.- . ,1.1 i
uu wo iree nut,
Tho fiscal year ended June 30, 1911,
showB great progress In tha dovolop- -mont
of American trade. It was note- .
worthy as marking the hlahest record
of exports of American products tc
ioreign countries, the valuation being
In excess of $2,000,000,000. Those ox- .
ports showed, a aaln over thn urnr.nd.
lng year of moro than $300,000,000.
inere is widespread appreciation ex- ,
pressed by the buslnese Interests ot , ..
the country as regards tho nraetleal "
value of the facllltlea now offered by"
tne department of stato. and the do- '
partmont of commerce and labor for .
the furtherance of American com- 2
merce.
Crying Need for American Merchant
Marine.
I need hardly reiterate the convlc-.
tlon that there should speedily ha
built up an American merchant ma
rine. This is nocessary to annum tl.
vorablo transportation facilities to our
great ocean-borne commerce as Wel
as to supplement the navy with an -
adequate reserve of ships and mefa.
it would nave the economic advantage
of kceplug at homo part of tho vaBt
Bums now paid forelan shlnnlne for
carrying American goods. All the"
great commercial nations pay heavy
subsidies to their merchant marine, bo'
that it is obvious that without soma
wise aid from tho Congress the United '
atates muBt lag behind In the matter .
of merchant marina In Its presont
anomalous position.
Legislation to facllttata tha Avtan. .
elnn A m a . I .. n I. , i . .
i-ituc. iiitu uuunb io ioreign
countries Is another matter In which
our foreign trade needs assistance.
Improvement of the Forelfjn 8ervlce.
The entire forelgu-servlce organiza
tion Is being Improved and developed
with especial regard to the require
ments of the commercial Interests ot
the country. The rapid growth of our
foreign trado makes It of the utmost
Importance that governmental agen
cies through which that trade Is to be
aided and protected should possess a
high degree ot efficiency. Mot only
should the foreign representatives be
maintained upon a generous scale in -
so far as salaries and establishments
are concerned, but the selection and
advancement ot officers should he defi
nitely and permanently regulated by,
law, so that tho sorvlco shall not fall
to attract men ot high character and
ability Tbo experienco ot tho past
few years, with a .partial application of
civil service rules to the dlpiomatlo
and consular service loaves no doubt
in my mind ot tho wisdom of a wider
and moro permanent extension of
those principles to both branches ot
.the foreign service. The men selected '
for appointment by means of the ex
isting executive regulations have been
of a far higher average of Intelligence
and ability than the men appointed
before the regulations -were promul
gated. I therefore again commend to the
favorable action ot the congress the
enactment or a law applying to the
diplomatic and consular service the
principles embodied In section 17E3
ot the Rovlsed Statutes ot tho United
States, in tho civil service act of Jan
uary 1G. 1883. and tho executive orders
of June 27, 190G, and ot November 28,
1909. in its conaiqoratlon ot this Im
portant aubjoct I desire to recall to
tbe attention ot tho congress the vary
favorable report made on the Lowden
bill for the Improvement of the foreign
service by the forelan affairs commit.
tee ot the hoase ot representatives.
Available statistics show the strict
sees with which the merit system haa
been applied to the foreign hbi-vIcoj
during recent years and the absolute
non-partisan selection of consuls and
dlpiomatlo service secretaries who in.
deed far from being selected with any
view to political consideration have
actually been choson to a dispropor
tionate extent from states which would.
have beon unrepresented in the for
eign service undor the system which
it IS to be hOPCd is now nennannntlv
obsolote. Some legislation for tbe per
petuation or tno present system ot ex
aminations and promotions upon mer
it and efficiency would bo of crrentent
value to our commercial and Interna
tional jnterosts.
WM. H. TAFT.