Vfitf ? n TIFT SENDS IN MESSAGE ABOUT FOREIGK AFFAIRS President Informs Congress of Our Relations With Other Nations. AMERICAN DIPLOMACY WINS Its Success in Settling Central American Troubles. DIPLOMATIC SERVICE BETTER Reorganization Has Done Much to In crease Its Efficiency Adjustment of the Sealing and Fisheries Dis putes Interests of United 'States In the Near and Far East. Washington, Dec. 3. President Taftv, submitted to congress today tho first of Beveral messages. If was devoted to our foreign relations and In pnrt was as follows: To tho Senate and House of Itcpro ontatlvcs: Tho foreign relations of the United States actually and poten tially affect tho stnto of tho Union to a degreo not widely realized and hard ly surpassed by any other factor In the welfare of tho wholo nation. Tho position of the United States In the moral, Intellectual, and material rela tions lof tho family of nations should bo a matter of vital Interest to every patriotic citizen. Tho national pros perity and power Impose upon us du ties which wo can not shirk If wo aro to bo true to our Ideals. Tho tremen dous growth of tho export trade of tho United States has already mado that trado a very real factor In tho Indus trial and commercial prosperity of the country. With tho development of our Industries tho foreign commerco of tho United States must 'rapidly be come a still moro essential factor in its economic welfare. Whether we have a far-seeing and wise diplomacy nd aro not recklessly plunged Into nnnecesnry wars, and whether our for eign policies aro based upon an Intel I gent graBp of present-day world con Itions and a clear view of tho poten tialities of tho future, or aro governed by a temporary and timid expediency or by narrow views befitting an in fant nation, are questions in the al ternative consideration of which must convince any thoughtful citizen that oo department of national polity of fers greator opportunity for promoting the interests of tho wholo people on the one hand, or greater chance on the other of permanent national in jury, than that which deals with the foreign relations of the United States. The fundamental foreign policies of tho United States should bo raised high above the conflict of partisan ship and wholly dissociated from dif ferences as to domestic policy. In its foreign affairs the United States should present to tho world a united front. The intellectual, financial and Industrial interests of tho country and the publicist, tho wage earner, the farmer, and citizen of whatover occu pation must co-operate in a spirit of high patriotism to promoto that na tional solidarity which is indispensable to national efficiency and to the at tainment of national ideals. The relations of the United States with all foreign powers remain upon sound basis of peace, harmony and friendship. A greater Insistence upon Justice to American citizens or inter ests wherever it may havo been de nied and a stronger emphasis of the need of mutuality in commercial and other relations have only served to strengthen our friendships with for eign countries by placing those friend ships upon a firm foundation of reali ties as well as aspirations. Before briefly reviewing the more Important events of the last year In , our foreign relations, which it is my duty to do as charged with their con duct and because diplomatic affairs are not of a nature to make it ap propriate that the secretary of state make a formal annual report, I desire to touch upon some of the essentials to the safe management of the for eign relations of the United States and to endeavor,also, to define clearly certain concrete policies which are the logical modern corrollaries of the undisputed and traditional fundamen tals of the foreign policy of the United States. Reorganization of the 8Ute Depart ment. At the beginning of .the present ad ministration the United States, having fully entered upon its position as a world power, with the responsibilities thrust upon it by the results of tho Spanish-American war, and already en caged in laying the groundwork of a rait foreign trade upon which it lould one day become more and tore dependent, found itself without le machinery for giving thorough at tention to, and taking effectivo action ' bpon, a mass of intricate business Htal to American Interests in every Country In the world. i The department of state was an Erchalc and Inadequate machine lack ing most of the attributes of tho for eign office of any great mQtavu poorer. Kith on appropriation made upon my commendation by the congress on kiugust 13. 1909, the department of Itato was completely reorganized. There wcro croatci! divisions of Latin Ameiicnn nffnlrs nnd o f:r eastern, near eastern, nnd western European affairs. To theso divisions wero called from tho foreign service dlplomntlc and consular officers possessing expe rience nnd knowledge gained by act ual sorvlcu In different parts of tho world and thus familiar with political nnd commercial conditions in the re gions concerned. The work was high ly specialized. Tho result Is that where previously this government from tlnio to tlmo would emphasize in Its foreign relations one or another policy, now American interests In ev ery quarter of tho globo aro being cultivated with equal assiduity. Merit System In Concular and Diplo matic Corps. Expert knowledgo and professional training must evidently bo tho cssenco of this reorganization. Without a trained foreign servlco thero would not bo men avnilablo for tho work In tho reorganized department of stale. President Cleveland has tnken tho first step toward introducing tho merit system In tho foreign service. That had been followed by tho appli cation of the merit principle, with ex cellent rcaultH, to tho entire consular branch. Alnioat nothing, however, had been dono In this direction with regard to the diplomatic servlco. In this ago of commercial diplomacy it was evi dently of tho first importance to train an adoqunto personnel in that branch of tho service Therefore, on Novem ber 2(!, 1909, by nn executive order I placed tho diplomatic sorvlco up to tho grade of secretary of embassy, in clusive, upon exactly tho samo strict non-partisan basis of the merit sys tem, rigid examination for appoint ment nnd promotion only for effi ciency, as had been maintained without exception In the consular service. Statlstlco as to Merit and Nonpartisan Character of Appointments. How fnlthful to tho morlt system and how nonpartisan has been the con- 'duct of the dlplomntlc and consular services In tho last four years may bu Judged from tho following: Three ambassadors now serving hold their present rnnk at tho beginning of the administration. Of tho ten ambassa dors whom I have nppolnted.'llvo wero by promotion from tho rank of min ister. Nino ministers now serving hold their present rank nt the begin ning of the administration. Of tho thirty ministers whom I havo appoint ed, olovon wero promoted from the lower grades of tho foreign servlco or from the department of state. Of tho nineteen missions in Latin America, whero our relations nro close and our interest Is great, fifteen chiefs of mis sion aro service men, three having entered tho service during this admin istration. Tho thirty-seven secreta ries of embassy or legation who havo received their inltlnl appointments nfter passing successfully the required examination were chosen for ascer tained fitness, without regard to po litical affiliations. A dearth of candi dates from southern and western states has alono made it imposslblo thus far completely to equalize 'all the states' representations in the for eign servlco. In the effort to equalize tho representation of tho various states in tho consular service I have mado sixteen of the twenty-nine now appointments as consul which have occurred during my administration from tho southern states. This is 65 per cent. Every other' consular ap pointment mado, including the promo tion of eleven young men from the consular assistant and student inter preter corps, has been by promotion or transfer, based solely upon efficiency shown in the service. In order to assure to the busin6sa and other interests of the United States a contlnuanco of the resulting benefits of this reform, I earnestly re new my previous recommendations of legislation making it permanent along some such lines as those of tho meas ure now pending in congress. Larger Provision for Embassies and Legations and for Other Expenses of Our Foreign Representa tives Recommended. In connection with legislation for the amelioration of the foreign serv ice, I wish to invito attention to the advisability of placing the salary ap propriations upon a better basais. I believe that the best results would be obtained by a moderate scale of salaries, with adequate funds for the expenses of proper representation, based in each case upon the scalo and cost of living at each post, controlled by a system of accounting, and un der tho general direction of the de partment of state. In line with the object which I have Bought of placing our foreign service on a basis of permanoncy, I have at various times advocated provision by congress for tho acquisition of government-owned buildings for the resi dence and offices of our diplomatic of ficers, so as to place them more near ly on an equality with similar officers of other nations and to do away with the discrimination which otherwise must necessarily be made, In some cases, In favor of men having large private fortunes. The act of congress which I approved on February 17, 1911, was a right step in this direction. The secretary of stato has already made tho limited recommendations permitted by tho act for any one year, and it is my hopo that tho bill intro duced in the houso of representatives to carry out these recommendations will bo favorably acted on by tho con gress during its present session. Dlplomancy a Handmaid of Commer cial Intercourse and Peace. Tho dlplomancy of tho present ad ministration has sought to respond to modern Ideas of commercial inter course. This policy has been char acterized as substituting dollars for bullets. It Is one that appeals alike to'ldenllstlc humanitarian sentiments, to thr dictates of Bound policy and rtrategy, nnd to legitimate commercial alms. It is nn effort frankly directed to tho increase of American trado up on tho axiomatic prluciplo that tho government of tho United States shall extend nil proper support to every legitimate and boneilclnl Amorlcnn enterprlso abroad. How grfcnt havo been tho rosults of this diplomacy, coupled with tho max imum nnd minimum provision of tho tariff law, will bo seen by eomo con sideration of tho wonderful increaso in tho export trnde of tho United States. Becauso modern diplomacy ia commercial, thoro has been a disposi tion in somo quarters to attribute to It none but nmterlnllstlc nlms. How ntrlkln-.'y erroneous Is Bitch an Im pression may bo seen from a study of tho results by which tho diplomacy of tho United States can bo Judged. Successful Efforts In Promotion of Peace. In tho field of work toward tho Ideals of pcaco this government ne gotiated, but to my regret wns unnblo to consummate, two arbitration trea ties which net tho highest mark of tho aspiration of nations toward tho substitution of arbitration and reasos for war In tho settlement of interna tional disputes. Through tho efforts of American diplomacy several wars havo baen prevented or ended. 1 re fer to tho successful tripartite medi ation of tho Argentine republic, lira rll, and tho United States between Peru and Ecuador; tho bringing of tho boundnry dlsputo between Panama and Costa ltlca to pouceful arbitra tion; tho staying of warllko prepara tions when Hayti and tho Dominican republic wore on tho vorgo of hostlll Urn; the stopping of a war In Nicarag ua; tho halting of Internecine strlfo In Honduras. Tho government of tho United States was tlinnkcd for Its In fluence toward tho restoration of nmlc ablo relations between tho Argentlno republic and Bolivia. Tho diplomacy of tho United Stntes is tictlvo in seek ing to assuage tho remnlnlng ill-feel-lug between this country and tho Ho public of Colombia. In tho recent Civ il war In. China tho United States suc cessfully Joined with tho other inter ested powers in urging an early ces sation of hostilities. . An ngroomont has been reached between tho govern ments of Chllo and Peru whereby tho celebrated Tncnn-Arlca dlsputo, which lias so long embittered International relations on the west coast of South America, has nt last boon adjusted. Simultaneously camo tho news that tho boundary dlBputo between Pom and Ecuador had entered upon a stngo of amicable settlement. Tho position of tho United States in reference to tho Tncna-Arlca dlsputo between Chllo and Peru hnB been ono of non intervention, but ono of friendly in fluence and pacific counsel throughout tho period during which tho dlsputo in question has been tho subject of Interchange of views between thlB government and tho two governments immediately concerned. In tho gen eral easing of international tension on tho west coast of South America the tripartite mediation, to which I havo referred, has been a most potent and beneficent factor. China. In China tho policy of encouraging financial Investment to enablo that country to help itself has had the ro Bult of- giving new llfo and practical application to the open-door policy. The consistent purpose of the present administration has been to encourage the use of American capital In tho development of China by the promo tion of those essential reforms to which China Is pledged by treaties with the United States and other pow. era. The hypothecation to foreign bankers In connection with certain in dustrial enterprises, such as the Huku ang railways, of the national reven ues upon which these reforms depend ed, led the department of state early In the administration to demand for .American citizens participation In such enterprises, in order that the United States might have equal rights and an equal voice in all questions pertaining to the disposition of the public revenues concerned. The same policy of promoting international ac cord among the powers having similar treaty rights as ourselves In the mat ters of reform, which could not be put Into practical effect without the common consent of all, was likewise adopted In the case of the loan de sired by China for the reform of its currency. The principle of Interna tional co-operation In matters of com mon Interest upon which our policy had already been based in all of the above Instances has admittedly been a great factor In that concert of the powers which has been so happily conspicuous during the perilous period of transition through which tho great Chinese nation has been passing. Central America Needs Our Help In Debt Adjustment. In Central America the aim has been to help such countries as Nica ragua and Honduras to help them selves. They are the Immediate bene ficiaries. The national benefit to the United Stages is two-fold. First, it Is obvious that the Monroe doctrine Is more vital In the neighborhood of tho Panama canal and the cone of the Caribbean than anywhore else. Thoro, too, the maintenance of that doctrine falls most heavily upon the United States. It is thcreforo essential that the countries within that sphere shall bo removed from tho jeopardy involv ed by heavy foreign debt and chaotic national finances and from the ever- present dangor of international com plications due to disorder at homo. Hcnco tho United StatcB has been glad to encourage and support Amer ican bankers who wero willing to lend a holplng band to tho financial re habilitation of such coutrlcs becauBO this financial rehabilitation and tho protection of their custom houses from being tho proy of would-bo dictators would rcniovo nt ono stroke tho men nco of foreign creditors and tho men unco of revolutionary disorder. Tho second ndvnntngo to tho Unit ed States Is ono nffectlng chiefly all tho southern nnd gulf ports and the business and industry of tho south. Tho republics of Centrnl America nnd the Caribbean possess great natural wealth. They need only a mensuro of stability nnd tho means of flnnuelnl regeneration to enter upon nn era of peaco and prosperity, bringing profit nnd hnpplucHS to themselves and nt tho Bnmu tlmo creating , conditions sura to lend to a flourishing In terchange of trado with this country. I wish to cull your espcclnl attention to tho recent occurrences In Nica ragua, for I believe tho terrible events recorded thero during tho revolution of tho past summer tho useless loss of life, tho devastation of property, tho bombardment of defenseless cities, tho killing nnd wounding of women and children, tho torturing of non combatants to oxact contributions, nnd tho suffering of thousands of hu man bolngs might havo been avert ed had the department of slate, through approval of tho loan conven tion by tho senate, been permitted to carry out its now well-developed policy of encouraging tho extending of fi nancial aid to weak Central American Btates with tho primary objects of avoiding Just such revolutions by as sisting thosa republics to rehabili tate their finances, to establish tholr currency on n stnblo basis, to remove tho custom hourcB from tho danger of revolutions by arranging for tholr uccuro administration, and to estab lish reliable banks. During this last revolution In Nica ragua, tho government of that repub lic having admitted Its Inability to protect American llfo nnd property against nets of sheor lawlessness on tho part of tho malcontents, nnd hav ing requested this government to as sume thnt offico, It became ncossary to land over 2,000 mnrlncB nnd bluojuek cts In Nicaragua. Owing to their presonco tho constituted Government of Nicaragua was free to dovoto Its attention wholly to its internal trou bles, and was thus enabled to stamp out the rebellion in n short spaco of tlmo. When tho lied Cross supplies sent to Granatin had been exhausted. 8,000 persons having been given food in ono day upon tho nrrlvul of tho American forces, our men mippllcd other unfortunate needy Nlcarnguans from their own haversacks. I wish to congrntulato tho olllcerB and men of tho United States navy and marine corps who took part in re-establishing .order In Nicaragua upon tholr splen did conduct, nnd to record with sor row the death of seven American ma rines nnd bluejackets. SInco the ro-establlahmcnt of penco and order, elections havo been held amid condi tions of quiet and tranquility. Nearly all tho American marines havo now been withdrawn. Tho country should soon be on tho road to recovery. Tho only apparent danger now threatening Nicaragua .arises from the shortage of funds. Although American bankers have already rendered assistance, thoy may naturally be loath to ad vance a loan adequate to set the coun try upon its feet without the support of some such convention ns that of June, 1911, upon' which-the senato has not yet acted. .The president alluded briefly to the enforcement of neutrality laws, to Secretary Knox's visit to Central America and to the unfortunate dis turbances In Mexico. Continuing, tho message said: Agricultural Credits. A "most Important work, accom plished in the past year by the Ameri can diplomatic officers1 in Europe, Is the Investigation of the agricultural credit system In the European coun tries. Doth as a means to afford relief to the consumers of this country through a moro thorough develop ment of agricultural resources and as a means of more sufficiently maintain ing the agricultural population, the project to establish credit facilities for the farmers is a concern of vital Im portance to this nation. No evldenco of prosperity among well-established farmers should blind us to the fact that lack of capital is preventing a development of the nation's agricul tural resources and an adequate In crease of the land under cultivation; that agricultural production is fast falling behind the increase In popula tion; and that, in fact, although these well-established farmers are main tained In Increasing prosperity be cause of the natural increase In popu lation, we are not developing the in dustry of agriculture. We aro not breeding in proportionate numbers a race of independent and independence loving land owners, for a lack of which no growth of cities can com pensate. Our farmers have been our mainstay In times of crisis, and in future It must still largely bo upon their stability and common senso that this democracy must rely to conserve Its principles of self-government. The need of capital which American farmers feel today had been experi enced by the farmers of Europe, with ago. The problem had been success their centuries-old farms, many years fully solved in the old world nnd it was evident that the farmers of this country might profit by a study of their systems. I thorcforo ordered, through tho department of state, nn investigation to bo mado by the diplo matic officers in Europe, and I havo laid tho results of this investigation boforo tho governors of tho various stateB with tho 'hope that thoy wlll bo used to advantago in tholr forth coming meeting. Increase of Foreign Trade. In my Inst annual message I said that the fiscal year ended Juno 30, 1911, was notoworthy aB marking tho highest record of exports of American products to foreign countries. The fiscal year 15)12 shows that this rato of advance has been maintained, tho total domestic exports having a valu ation approximately of $2,200,000,000, as compared with n fraction over $2,000,(100,000 tho previous year. It W also significant thnt manufactured and partly manufactured articles con tinue to bo tho chief commodities form ing tho volumo of our augmented ex ports, tho demnnds of our own peoplo for consumption requiring thnt nn In creasing proportion of our nbuhdnnt agricultural products bo kept at homo, In tho fiscal year 1911 tho exports of articles In tho various stages of man ufacture, not including foodstuffs pnrt ly or wholly manufactured, nmounted npproxlmntely to s907,GOO,000. In tho fiscal year 1912 tho total was nearly $1,022,000,000, a gain of $114,000,000. Advantage of Maximum and Minimum Tariff Provision. The lmportnnco which 6ur manufac tures havo assumed in tho commerco of tho world in competition with tho manufactures of other countries ngnln draws attention to tho duty of this government to uso lis utmost endeav ors to secure Impartial treatment for Amorlcnn products in nil markets. Healthy commercial rivalry in inter national intercourse Is best nssurcd by tho possession of proper means for protecting and promoting our foreign trade. It Is natural that competitive countries should view with Homo concern this steady expansion of our commerco. If In somo Instances tho measuro taken by them to meet it nro not entirely equi table, n remedy Bhould bo found. In former messages 1 havo described tho negotiations of tho department of stato with foreign governments for tho adjustment of tho mnxlmum nnd min imum tariff ns provided in Bcctlon 2 of tho tariff law of 1909. Tho advan tages Bocured by tho adJuBtmont of our trndo relation) under this law hnvo continued during tho Inst year, and somo additional cases of discrim inatory treatment of which wo had reason to complain havo boon re moved. Tho department of stato hnB for tho first tlmo in tho hUtory of this country obtained substantial most-fnvored-natlon treatment from all tho countries of tho world. Thoro arc, however, other Instances which, while nppnrently not constituting un- duo discrimination In tho senso of section 2, aro novcrthclcsB cxcoptlonB to tho complete equity of tariff treat ment for Amorlcnn products that tho department of stnto consistently hns sought to obtain for American com merco nbroad, . Necessity for Supplementary Lelgela lation. Theso developments confirm tho opinion convoyed to you in my annual message of 1911, that whllo tho max imum and minimum provision of tho tariff law of 1909 has boon fully Jus tified by tho success achieved in re moving previously existing unduo dis criminations ngalnst American prod ucts, yet experience has shown that this feature of tho law Bhould bo amended in such way as to prevent a fully effectivo means of meeting tho varying degrees of discriminatory treatment of American commerco in foreign countries still encountered, as well aB to protect against injurious treatment on tho part of foreign gov ernments, through eithor legislative of administrative measures, tho finan cial interests abroad of American cit izens whoso enterprises enlarge the market for Amorican commoditlees. I can not too strongly recommend to congress tho passage of somo such enabling measure as tho bill which was recommended by the secretary of stato in his letter of December 13, 1011. Tho object of the proposed leg islation is, In brief, to en able the executive to apply, as tho caso may require, to any or all commodities, whether or not on the free list from a country which discriminates against the United States, a graduated scale of duties up to the maximum of 25 per cent, ad valorem provided In the present law. Flat tariffs are out of date. Hi Special Claims Arbitration With Great Britain. The special agreement entered Into between tho United States and Great Drltaln on August 18, 1910, for tho ar bitration of outstanding pecuniary claims, a schedule of claims and the terms of submission have been agreed upon by the two governments, and to gether with the special agreement were approved by tho senate on July 19, 1911, but in accordance with the terms of the agreement they did not go into effect until confirmed by the two governments by an exchange of notes, which was done on April 26 last. Negotiations are still in prog ress for a supplemental schedule of claims to be submitted to arbitration under this agreement, and meanwhile the necessary preparations for the ar bitration of the claims Included imthe first schedule have been undertaken and are being carried on under the authority of an appropriation made for that purposo at the last session of ccmgresB. It is anticipated that the two governments will be prepared to call upon tho arbitration tribunal, es tablished under this agreement, to meet at Washington early next year to proceed with this arbitration. Fur Seal Treaty and Need for Amend ment 'of Our 8tatute. Tho act adopted at tho last session of Congress to give effect to tho fur seal convention of July 1, 1911, be tween Great Uritain, Japan, Russia and' tho United States, provided for tho suspension of all land killing of seals on tho Prlbllof islands for a pe riod of flvo years, and an objection has now been presented to this pro vision by tho other pnrtlcB in inter est, which raises tho issuo as to whether or not this prohibition of land killing in inconsistent with tho spirit, If not tho lotter, of tho treaty stipu lations. Tho Justification for cstnb- I llshiug this close soaHon depends, un dor tho terms of tho ecflvcnilon, upon how far, If at all, It is necessary for protecting, and preserving tho Amori mil fur-seal herd nnd for Increasing Its number. This Is n quetftlon re quiring examination of tho present condition of tho herd nnd tho treat ment which It needs In the tight of actual experience and scientific inves tigation. A careful examination of tho subject Is now being mndo, and this government will soon bo In pos session of n conslderablci nmount of now information about tho American Beal herd, which has been secured during tho past season nnd will bo ot grcnt value In determining this ques tion; nnd If It should appear that thoro is any uncertainty aB to tho real necessity for Imposing a closu season at this tlmo, I shall tako nn early opportunity to nddrcss n special messngo to congress on this subject, In tho belief that this govern-' ment should yield on this point rather than glvo tho slightest ground for the charge that wo havo been in nny way remiss In observing our treaty obliga tions. Final Settlement of North Atlantlo Fisheries Dispute. On tho 20th of July Inst an agree ment wns concluded bctwoon th United States and Great Hrltnln adopting, with certain modifica tions, tho rulcB and. 'method of procedure recommended In the award rendered by tho North Atlantic Coast FlBhorlcB Arbitration Tribunal on September 7, 1910, for tho settle ment hereafter, in nccordnnco with tho principles laid down in tho award, of questions arising with reforonco to tho oxcrclso of tho Amorican fishing liberties under Artlclo I of tho treaty of October 20, 1818, between tho United Stntes nnd (treat Drltaln. This ngrcomont received tho approval of tho Bcunto on August 1 and was for mally ratified by tho two governments on November 15 last. Tho rules nnd a mothod of procedure embodied in tho award provided for dotcrmfnlnr? by nn impartial tribunal tho reason ableness of nny now fishery regula tions on tho trenty coasts of Now foundlnnd and Canada before such regulations could bw enforced against American fishermen exercising tholr treaty liberties on thoso coasts, and, nlso for determining tho delimitation of bays on such coasts moro than 10 mlloB wldo, in nccordanco with the definition ndopted by tho tribunal of tho meaning of tho word "baya" as used In tho trenty. avMsTl Imperial Valley and Mexico. In order to mako posBlblo tho moro effectivo performance of tho work nec essary for tho confinement In their prcBcnt channel of tho waters of the lowor Colorado river, and Uiub to pro tect tho peoplo of tho Imperial Val ley, as well aB in order to reach with tho government ot Mexico an under standing regarding tho distribution of tho waters of the Colorado river, in which both governments are much, interested, negotiations aro going for ward with a view to the establish ment of a preliminary Colorado river commission, which shall havo the powers necessary to enable it to do tho needful work and with authority, to study tho question of the equitable distribution of the waters. There la every reason to believe that an un derstandlng upon this point will be reached and that an agreement will bo signed in the near future. The messago told what the govern ment has done in connection with the) -Balkan war and in placing the gov ernment of Liberia in position to pay its debts. The now condition of at fairs In China was set forth, 'and then our relations with Central and South American governments were set forth in more detail. It concluded aB follows: Congress should fully realize the conditions which obtalu in the world as we find ourselves at the threshold of our middle age as a nation. We have emerged full grown as a peer la the great concourse of nations. We have passed through various forma tive periods. We have been self-centered in the struggle to develop our domestic resources and deal with our domestic questions. The nation It now too mature to continue in its for eign relations those temporary expe dients natural to a peoplo to whom do mestic affairs are the sole concern. In the paBt our diplomacy has often consisted, in normal times, in a mere assertion of the right to international existence. We aro now in a larger relation with broader rights of our own and obligations to others than ourselves. A number of great guid ing principles were laid down early in tho history of this government. The recent task ot our diplomacy has been to adjust those principles to the con dltlons of today, to develop their corol laries, to find practical applications of the old principles expanded to meet new situations. Thus are being evolved bases upon which can rest the superstructure of policies which must grow with the destined progress of this nation. The successful con duct of our foreign relations demand a broad and a modern view. Wo can not meet now questions nor build for the future If we confine ourselves to outworn dogmas of tho past and to the perspective appropriate at our emcrgenco from colonial tlmeB and conditions. Tho opening of the Pana ma canal will mark a new era In out International llfo and create new and world-wldo conditions which, with their vast correlations and conse quences, will obtain for hundreds of t years to come. Wo must not wait for events- to overtake us unawares. With continuity of purpoBo we must deal with tho problems of our external re lations by a diplomacy modern, re sourceful, magnanimous, nnd fittingly cxprosslvo ot tho high ideals ot js great uatlon. . WH. H. TAFT- Tho White House, December 3, 1912. ,J t A 1 $ - 7 s 4 1 'i 1 '1 4 t mi . Vl &w kSJl 5. Mvm lM$mj hmwsM ;gfegtote& w&wBxU wi&trwVr. .W1