Newspaper Page Text
TAFT SENDS IN
President Starts With Giscussian
, ol Foreign ReSations.
WORK DONE BY DIPLOMATS.
PUcofln.ton *t Merit 8/e?em Has Been
Beneficial ? Suggestions Regarding
CHangee In the Tariff Laws Designed
to Aid Cemmirct?Turkish War and
Troubles 1st China.
To the Senate and House of Repre?
The foreign relations of the Vn'ted
fJUtas actually snd potentially ?ffet
the state of the Union to s degree uot
widely rsellsed snd hardly surpassed
by any other fsctor In the welfare of
the whole nation. The position of the
United Htaee? In the moral. Intellec?
tual snd material relations of the fam?
ily of nations should be a matter of
Tttal Interest ta every patriotic cltl
sen The nat-mal prosperity and
power impose upon us duties which |
we eat'not shirk if we sre to be true I
to our Ideals.
Thf trsraendoun growth of the ex?
port trade of the Uulted Ststes has
already made that trade a very resl
fsctor In the Industrial snd commer?
cial prosperity of the country. With
the development of our Industries the
forelgo commerce of the United
States must rspidly become s still
more essentlsl fsctor lu Its economic
The relations of the United Ststes
with sll foreign powers remain upon
n sound basis of pesce. harmony and
friendship A greater insistence upon
Justice to American citizens or Inter?
ests wherever It insy have been denied
and s stronger emphasis of the need of
mutuality In commercial and other ro?
tations have ouly served to strengthen
our friendship with foreign countries
by placlnx those friendships upou a
Arm foundstlou of realities ss well ss
Reorganisation of State Department.
At the beglunlug of tho preseut ad
ministration the United Ststes, having
fully entered upon its position as a
world power, with the res ponst hill ties
thrust u;-..ii it by the results of the
Spanish- Amerlcsu war snd already en?
gaged In laylug the groundwork of a
?set foreign trade upon which It
should one day become more and more
dependent, found Itself without the I
mschlnery for giving thorough atten?
tion to snd taking effective actlou
upon a mass of Intricate business vi?
tal to \uteri, hii interests In every coun?
try in the world
Tbe department of state was sn
archslc snd Inadequate machine, lack
lag most of the attributes of the for?
eign office of sny great modern power.
With an appropriation made upon my
recommendation by the congress on
Aug :.. ltrOv. the department of state
wss completely reorganised. There
were crested divisions of Latin Ameri?
can sffalra snd of fnr easteru. near
eastern snd western European sffalra.
Tbe law offices of the department
were greatly strengthened. There were
added foreign trade advisers to co-op?
erate with tbe diplomatic snd consulsr
bureaus and the politico-geographica I
divisions in the Innumerable matters
where commercial diplomacy or con
aultr work eel's for such special
knowledge. The same officers, together
with the rent of the new organisation,
are able at all times to give to Am -??
ean ? It liens sccurste Information as to
conditions in foreign countries with
which they have business and likewise
to co-operate more effectively with the
congress snd also with the other ex?
Merrt System In Consular and Diplo?
Expert knowledge and professional
training must evidently Im- 'he essence
of thl> r.?.?r,'ui, MM.in Without a train
Od foreign service there would not he
men available for the work in the reor?
ganised department of state. President
Cleveland had taken the first step to
wsnl Introducing the netit ?)*tem In
tbe foreign service That had gegSJ fob
lowed by the application of the merit
aV"< Iple. with excellent result* to th -
entire (SnWeM brauch Almoot noth?
ing, however, had U*eu done In t.'ila dt
rectioti ?Ith regard to the diplomatic
service In thla age of commercial til
plomacy It wss evidently of tbe first
importance to tralu un adequate per?
sonnel In ?hat branch of the service.
Therefore, on Nov. 'JO, lias.?, by sn
executive order I placed the diplomatic
sorvIch up * ' t grade ?*f secretary of
em ha** v. inclusive, upon exactly the
asms strict imnpartlaau basin of the
merit system, rigid examination fgfgp
polntiuetit and promotion only for etil
Clancy, as hud I teen maintained with?
out exception In the consular service
Mant and Nonpartiean Character of
How fni'hful to the merit system
and how n>n partisan baa bests' the)eon
dus t of Ike diplomatic and lOnonlsi
servhea In the last four yesrs may bt
juded froM |he following Three run
beassdors now Nerving held their pros
ent rank Bt he gegtefShaf of my ad
ministration *?f the ten amim ?sad??r?*
whom I have appointed live Were b>
promotion from the rank of minister
Nine minister* now serving held their
present rank st the lioglnnlng ??f the
administration of the thirty ndnlateri
whom 1 have appointed^ eleven wars
promoted from Ike lowci j. ??? of the
foreign ggfYlcs oi ffoin ike department
of state. Of tlie nineteen missions in
Latin-America, where our relations are
clone ami our Interest is great, tit teen
chiefs <?f mission uro service men,
three having entered the service durluy
The IkJll/ IgUII StCftUl ies of em?
bassy or legation who have received
their Initial appointment* Miter pggslng
successfully the required examination
were chosen for ascertained titness.
Without rega rd to political altl lli'.iio.ii.
A dearth of candidates from southern
snd western states has alone made U
Impossible th is far completely to eqliul
lze sll the states' representations in
the foreign sei vice. In the effort to
equalise the representation of the va?
rious states in the consular service 1
have made sixteen of the twenty-nine
new appointments as consul which
have occurred during my administra?
tion from the southern states. This Is
6f> per cent. Every other consular ap?
pointment made, Including the promo
tlon of eleven young men from the con
sular assistant and student Interpreter
corps, has been by promotion or trans?
fer, based solely upon etllcicncy shown
Id the service.
Larger Provision For Embassies snd
In connection with legislation for the
amelioration of the forei D service, 1
wish to invite attentlou to the advlsa- |
billty of placing the salary approprln- |
tlons upon a better basis. I believe'
that the best results would be obtained
by a moderate scale of salaries, with
adequate funds for the expenses of
proi>er representation, based in each
case upon the scale and cost of living
at each post, controlled by a system oi
accouutlng and under the general dl
section of the department of state.
In line with the object which 1 hart
sought of placing our foreign service
on a basis of permanency, 1 have at
various times advocated provision by
congress for the acquisition of govern?
ment owued buildings for the residence
and otllces of our diplomatic officers, so
as to place them more nearly on an
equality with similar ohVers of other
nat (?ns and to do away with the dtl
crimination which otherwise must nec?
essarily be made In some cases In favor
of men having large private fortunes.
Diplomacy a Handmaid of Commercial
Intercourse and Peace.
The diplomacy of the present ad?
ministration has sought to respond to
modern Idess of commercial inter
course. This policy has been ehaiac
terlzed as substituting dollars for bul?
lets. It la one that appeals alike to
Idealistic humanitarian sentiments, to
the dictates of sound policy and strat?
egy and to legitimate commercial
aims. It is an effort frankly directed
to the Increase of American trade upon
the axiomatic principle that the gov?
ernment of the UnJttd States shall ex?
tend all proper support to every legiti?
mate and beneficial American enter?
prise abroad. How great have been
the results of this diplomacy, coupled
with the maximum and minimum pro?
vision of the tariff law, will be seen
by some consideration of the wonder?
ful Increase In the export trade of the
United States Because modern di?
plomacy Is commercial there has been
a disposition In some quarters to at?
tribute to It none but materialistic
alms. How strikingly erroneous is
such an Impression may be seen from
a study of the results by which the
diplomacy of the United States can be
Successful Efforts In Promotion of
In the field of work toward the 1 deals
of peace this Government negotiated,
but to my regret was unable to con?
summate, two arbitration treaties
which set the highest mark of the
aspiration of nations toward the sub?
stitution of arbitration and reason for
war in the settlement of International
disputes. Through the efforts of
American diplomacy several wan
*>ave been prevented or ended. 1 re
fer tc the successful tripartite media?
tion of ibe Argentine Republic, Bra I
zll, and the United States between
Peru and Ecuador, the bringln ? of the
boundary dispute between Panama
and Costa Hlca to peaceful arbitra?
tion; the staying of warlike prepara
11'ms when Haiti and the Dominican
Hepubllc were on the verge of hostll j
Itles; the stopping of a war In Nleara
gua; the halting of internecine strife
The government of the United
States was thanked for Its Influence
toward the restoration of amicable re
latlous bOtWOgfl the Argentine Republic
and Bolivia. The diplomacy of the
United Slates is active lu seeking to
assuage the remaining 111 feeling be?
tween this country and the republic of
Colombia. In the receat tfvU war in
China the United Stales successfully
Joined with the other Interested powers
in urging an early cessation of h >stili
ties. An agreement has been reached
between the governments of Chile and
Peru whereby the celebrated Ta< na
Arl< a dispute, wnleh ban so long em
hlttcrod International relations ou t is
west coast of South Aincrlou, has at
last been adjusted. Simultaneously
Came the news that the boundary dis
puts between ivm ami Ecuador had
entered Upoti a stage of amicable set
lu china the policy of encouraging
tin in- |g] Investment to ounh o tl if
<-.i|i,ir\ to kelp Itself has had Ike result
of giving new lifo and pri M<al gppll
cation to the Opeg BOO! policy, The
renale tent purpose of the present nd
ministration has been |0 OacOUrggS tin
use <d* a merli gg capital In the develop
ment of rhlna by the promotion of
those eeaentlgl reforms to g hl< h < hin i
|m pledged b> treaties with Ibe u? lied
I gutes ani other powers,
The h potbat gttofl to foreign bnnkei
in connection with certain Industrial
enterprises, euch us the lukuang rail?
way:', of the national revenues Upon
which these reforms depended, led the
department of state early in the admin?
istration to demand for American cltl
gens participation in inch enterprises.!
In order that tho United states diIktit
have cquul rights and an equal voice in
all questions pertaining to tbe dlspost
tion of the public revenues concerned.
The same policy of promoting inter-j
national accord among the powers hav?
ing similar treaty rights is ourselves in
the matters of reform, which <? -uld not
be put into practical effect without the
common consent of all. was IiLewi?e
adopted in the case of the loan desired
by China for the reform of its cur?
rency. The principle of international
co-operation in matters Of common In?
terest upon which <>wr policy had al- .
ready been based In all of the above in?
stances has admittedly been a great
factor In that concert of the powers
which has been so happily conspicuous
during the perilous period of transition
ChfOUgh Which the great Chinese nation
has been passing. 1
Central America Needs Our Kelp In
in Central America the aim has been
to help such countries as Nicaragua
and Honduras to help themselves. They
are the immediate beneficiaries. The
national benefit to the United States is
twofold. First, it Is obvious that the
Monroe doctrine is more vital in the
neighborhood of tho Panama canal and
the zone of the Caribbean than any?
where e'se. There, b >. the mainte?
nance of that doctrine falls most heav
ily upon the United States, It is there
fore essential that the countries within
that sphere shall be removed from the
jeopardy involved by heavy foreign
debt and chaotic national finances and
from the ever present danger of inter
natiopal complications duo to disorder
Hence the United States has boon
glad to encouratro and support Ameri?
can hankers who wore willing to lend
a helping hand to the financial re?
habilitation of such countries because
this financial rehabilitation and tho
protection of their custom houses from
beim: tho prey Of would be dictators
would remove at one stroke tho men?
ace of foreign creditors and tho men?
ace of revolutionary disorder.
I wish to call your especial attention
to tho recent occurrences In Nicaragua,
for 1 hol lore the terrible events re?
corded there during the revolution of
the past summer?the useless loss of
life, the devastation of property, tho
bombardment of defenseless cities, ilie
killing and wounding of women and
children, the torturing of noncombat
ants to exact contributions and the
suffering of thousands of human be?
ings-might have been averted had the
department of state, through approval
of tho lonn convention by the senate,
boon perm it totl to carry out its now
well developed policy nf encourairlntr
the extending of financial aid to weak
Central American states with the pri
mary objects of avoiding just such
revolutions by Resisting those repuln
llcs to rehabilitate their finances, to
establish their currency on a stable
basis, to remove the custom bouses
?from the danger of revolutions by ar?
ranging for their secure administra?
tion, i nd to establish reliable banks.
I wish to congratulate the officers
and men of the I'nltod States navy and
marine corps who took part In re estab?
lishing order In Nicaragua upon their
splendid conduct and to record with
sorrow tho death of seven American
marines and bluejackets. Since the re
establishment of peace and order elec?
tions have been held amid conditions of
quiet aud tranquillity. Nearly all the
American marines have now been
Our Mexican Policy.
For two years revolution and counter
revoluti ?i< have distraught the neigh?
boring republic of Mexico. Brigandage
has involved a great deal of depreda?
tion upon foreign Interests. There nave
constantly recurred questions of ox
treroe delicacy <m several occasions
very difficult situations have arisen on
our frontier. Throughout this trying
period the pulley of the United States
has been one of patient noninterven?
tion, steadfast recognition of constitut?
ed authority in the neighboring na?
tion and the exertion of every effort
to care for American interests. 1 pro?
foundly hope that the Mexican nation
may soon resume the path of order.
prosperity and progress. To that na
tlon In its sore troubles the sympa?
thetic friendship of the United states
has been demonstrated to a high de?
There were in Mexico at the begin?
ning of the revolution some 30,000 or
40.?xui American citizens engaged in
enterprises contributing greatly to the
prosperity of that republic and also
benefiting the Important trade hot ween
the two countries. The Investments .of
American capital In Mexico has been
eatlmatedat $ i.< **>.<>< *>,ooo. The respon?
sibility of endeavoring to safeguard
those Interests and the dangers lusep
srabl ? fi uii propinquity to so turbulent
a Situation have been great, but 1 am
happy to have been able to adhere to
the policy above outlined a policy
a hl< h I hope may h.( be Justified bj
the complete sui.ss of the Mexican
people in retaining tbe bieaaiugs mj
peace aud good order,
A most Important work accomplished
in the past \e.ir b> the American dip
lomstlc offi(*ers In Kurojie is the Inves
tlgstlon of ihe agricultural credit sys
torn in the Ku ropes it couu tries, lloth
as ji means t<? afford relief to tho con
suiners of this country through a more
thorough development of agricultural
resources and us n meani ol more sutfl
rleutl) maintaining the agricultural
j |MVuhitt< u, lbs project to establish
credit facilities for the farmers is a
concern of vital Importance to this na?
I No evidence of prosperity among well
established farmers should blind 'is t*?
the fact that lack of capital Is prevent*
I tng a development of the nation's : rrl
! cultural resources and an adequate In
I crease of the land under cultivation;
! that agricultural production is fast fall*
I Ing behind the Increase lu population
I and that. In fact, although these well
I established fanners are maintained In
increasing prosperity because of the
fiatural increase In population, WO are
not developing the industry of agricul?
Advantage of Maximum and Minimum
The Importance which our manufac?
tures have assumed In the commerce
of the world it competition with the
manufactures of other countries again
draws attention to the duty of this
government to use Its utmost endeav
I ore to secure impartial treatment for
American products in all markets.
Healthy commercial rivalry in interna?
tional intercourse is host assured by
the possession of proper means for
protecting and promoting our foreign
trade. It is natural that competitive
countries should view with some con?
cern this steady expansion of our com?
merce. If in some instances the meas?
ures taken by them to meet it are not
entirely equitable a remedy should be
In former messages I have described ,
the negotiations of the department of i
state with foreign governments for the
adjustment of the maximum and mini?
mum tariff as provided In section 2 of
the tariff law of 1909. The advantages
secured by the adjustment of our trade j
relations under this law have contlu* |
OCd dining the last year, and some ad- 1
ditloual cases of discriminatory treat- j
ment Of which we bad reason to com
plain have been removed. The depart
ment of state has for the first time in ,
the history of this country obtained
substantial most-favorcd-nation treat?
ment from all the countries of the
There are, however, other instances
Which, while apparently not constitut?
ing undue discrimination in the sense
of section 2, are nevertheless excep?
tions to the complete equity of tariff
treatment for American products that
the department of state consistently
has sought to obtain for American
Necessity For Supplementary Legisla?
These developments confirm the opin?
ion conveyed to you in my annual uns
sage of 1911, that while the maximum
and minimum provision of the tariff
law of 1909 has |>een fully justified by
the success achieved In removing pre?
viously existing undue discriminations
against American products, yet experi?
ence has shown that this feature of
the law should l>e amended In su h
way as to provide a fully effective
means of meeting the varying degrees
of discriminatory treatmer t of Ameri?
can commerce in foreign countries still
encountered, as well as to protect
against injurious treatment on the part
of foreign governments through eitler
legislative or administrative measures
the financial Interests abroad of Ameri?
can cltl/.ens whose enterprises enlarge
the market for American commodities.
I cannot too strongly recommend to
the congress tiie passage of some such
enabling measure as the bill which w as
recommended by the secretary of state
in his letter of Dec. 13. 1011. The ob?
ject of the proposed legislation is, in
brief, to enable the executive to apply,
as the case may require, to any or all
commodities, whether or uot on the
free list from a country which discrim?
inates 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. Nations
no longer accord equal tariff treatment
to all other nations irrespective of the
treatment from them received. Such a
flexible power at the command of the
executive would serve to moderate any
unfavorable tendencies on the part of
those countries from which the impor?
tations into the United States are sub?
stantially confined to articles on the
free list as well as of the countries
which find a lucrative market in the
United States for their products under
existing custom rates. It is very neces?
sary that the American government
should be equipped with weapons of
negotiation adopted to modern econom?
ic conditions In order that we may at
all times be ku a position to gain not
only technically Just but actually equit?
able treatment for our trade and also
for American enterprises and vested In
Business Secured to Our Country by
Direct Official Effort.
As Illustrating the commercial bene?
fits to the nation derived from the new
diplomacy and its effectiveness U|M)U
the material as well as the more Ideal
side, it may be remarked that through
direct official efforts alone there have
been obtained in the course of this
administration contracts from foreign
governments Involving an expenditure
of $50,000U00 in the factories of the
It is germaue to those observations to
r?>'- -I ha! in the t ><? years thai have
elapsed since the successful negotln
Hon of our new treats with Japan,
which .it the lime seemed to present so
many practical difficulties, our ex|?orl
trade t'? thai eouiitr) has Increased at
tho rale of over $1,000,000 a month.
Our exports to Jnpau for the year end
ed June .'to |pl0, were $21,050.110,
while for the year ended June SO, 1012,
the exports wen- $5.1,478,04(1, n nel In?
crease In th<? sale of American prod
nets of noarlj i 'i0 per cent.
The :o-t adopted :it the IhsI session
of.?? ?a io give effei i l?? t he t ur
. .ii unveiiUou of J ul) '?. ll)l i. bei w i en
Great Britain, .Japan, Russia and the
United States provided for tbe
pension of all land killing of seals un
the Prlbilof islands t'<>r a period of
five years, and an objection has now
been presented to this provision by the
Other parties in interest, which raises
the issue as to whether or not this
prohibition of land killing is Inconsist?
ent with the spirit if not the letter of
the treaty stipulations. The justifica?
tion f<?r establishing this close season
depends, under the terms of the con?
vention, Upon how far if at all It is
necessary lor protecting and preserv?
ing the American fur seal herd and for
increasing its number. This is a ques
tion requiring examination o! the pres?
ent condition of the herd and the treat?
ment Which it needs in the lieht of
actual experience and scientific inves?
Final Settlement of North Atlantio
On tho 20th of July last an agree
ment was concluded hot ween the Unit?
ed States and Great Britain adopting,
with certain modifications, the rules
and method of procedure recommend?
ed in the award rendered by tho North
Atlantic coast fisheries arbitration tri
bunal on Sept. 7, 1010, for the settle
ment hereafter, in accordance with
the principles laid down in tho award,
of questions- arising with reference to
tho exorcise of the American fishing
liberties under Article I of the treaty
of Oct. 20, 1818, between the United
States and (Jreat Britain. This agree
ment received the approval of the son
ate on Aug. 1 and was formally rati?
fied by the two government! on Nov. 15
Opium Conference?Unfortunate Fail?
ure of Our Government.
In my message on foreign relations
communicated to the two houses of
congress Dec. 7. 11*11, I called special
attention to the assembling of the
opium conference at The Hague, to the
fact that that conference was to review
all pertinent munclpal laws relating to
the opium and a.lied evils and certain?
ly all International rules regarding these
evils, and to the fact that it seemed to
mo moat essential that the congress
should take immediate action on the
Bntl-narcotiC legislation before the con?
gress, to which I had previously called
attention by a special message.
The congress at its present session
should enact into law those bills now
before it which have been so carefully
drawn up in collaboration between the
department of state and tho other ex?
ecutive departments and which have
behind them not only the moral senti?
ment of tbe country, but the practical
support of all the legitimate trade in?
terests likely to be affected. Since; the
international convention was signed
adherence to it has beeu made by sev?
eral Duropean stafes not represented
at the conference of The Hague and
also by seventeen Latin-American re?
Europe and the Near East.
The war between Italy and Turkey
came to a close in October last by the
signature of a treaty of peace, subse?
quently to which the Ottoman empire
renounced sovereign)ty over Cyrenaiea
and Tripolitania in favor of Italy. Dur?
ing the past year the near east has un?
fortunately been the theater of con?
stant hostilities. Almost simultaneous?
ly with the conclusion of peace be?
tween Italy and Turkey and their ar?
rival at an adjustment of the complex
questions at Issue between them, war
broke out between Turkey on the one
hand and Bulgaria, (Jreece, Montene?
gro and Servia on the other.
In the exercise of my duty in the
matter I have dispatched to Turkish
waters a sjH'cial service squadron, con?
sisting of two armored cruisers, In or?
der that this government may if need
be bear its part in such measures as it
may be necessary for the interested na?
tions to adopt for the safeguarding of
foreign lives and property in the Otto?
man empire in the event that a danger?
ous situation should develop.
As a result of tho efforts of this gov?
ernment to place the government of
Liberia in position to pay its outstand?
ing indebtedness and to maintain a
stable and efficient government, nego?
tiations for a loan of $1.700,000 have
beeu successfully concluded, and it is
anticipated that tho payment of the
old loan and the Issuance of the bonds
of the 1012 loan for the rehabilitation of
the finances of Liberia will follow at
an early dato, when the new receiver?
ship will go into active operation. The
new receivership will consist of a gen?
eral receiver of customs designated by
the government of the United States
and throe receivers of customs desig?
nated by the governments of Germany,
France and Great Britain, which coun?
tries have commercial interests in the
republic Of Liberia.
The Far East.
Tho political disturbances in China
in the autumn and winter of 1011-12
resulted In the abdication of the Man?
ch u rulers on Feb. 12, followed by the
formation of a provisional republican
government empowered to conduct tho
affairs of tbe nation until a permanent
government might be regularly estab?
lished. The natural sympathy of the
Americsn people with tbe assumption
of republican principles by the Chinese
people wss appropriately expressed in
a concurrent resolutlou of congress on
April 17. 1012.
A constituent assembly, composed of
representatives duly chosen by the
people of China In tbe elections that
are now being he'd, has been called
to meet in January next to adopt a
permanent constitution and organise
the government <?r the nsscent r;;oii>
lie During the form: ir econstitutional
stage and pendln ; definite action by
the assembly, its expressive of the
popular will, and the hoped for estab
llshment of t stable republican form
of government < able of fulfilling its
international obligations, the United
BUttea la, according Id precedent, ?Sin*
j tainiug full and friendly do facto |f>
j latious with the provisional goveru
Tho new Condition of affairs thus
created has presented Many serious
and compltcntnd problems, both of iu
ttrnnl rohnbllltatlon and of interna?
tional relations, whose solution it wai
realized would necessarily require
nncn time ind patience. From the
boginning of the upheaval last autumn
ft was felt by the United States, in
common with the other powers hiving
large Interest! in china, that Inde?
pendent action by the foreign govern*
j ments In their own individual inter?
ests would add further confusion to a
situation already complicated. A pol?
icy of International cooperation wss
accordingly adopted in an understand?
ing, reached early in the disturbances,
to act together for the protection of
tho lives and property of foreigners if
j menaced, to maintain an attitude of
strict Impartiality as between the con?
tending factions and to abstain from
any endeavor to Influence the Chinese
in their organization of a new form of
It was futher mutually agreed, in
the hope of hastening an end to hos?
tilities, that none of the interested pow?
ers would approve the making of loans
by its nationals to either side. As soon,
however, as a united provisional gov?
ernment of China was assured, the
United States joined in a favorable
consideration of that government's re?
quest for advances needed for imme?
diate administrative necessities and
later for a loan to effect a permanent
national reorganisation. The interested
governments had already, by common
consent, adopted, in respect to the pur?
poses, expenditure and security of any
loans to China made by their nationals,
certain conditions which were held to
be essential, not only to secure reason?
able protection for the foreign invest
! ors, hut also to safeguard and strength?
en China's credit by discouraging indis?
criminate borrowing and by insuring
the application of the funds toward the
establishment of the stable and effec?
tive government necessary to China's
In June last representative banking
groups of the United States, France.
Germany, Creat Britain, Japan and
Russia formulated, with the general
sanction of their respective govern?
ments, the guaranties that would be
j expected in relation to the expenditure
' and security of the large reorganization
loan desired by China, which, however,
have thus far proved unacceptable to
the provlslona' government
T'.ie Cuban Situation.
The republic of Cuba last May was in
the throes of a lawless uprising that
for a time threatened the dest-uction
of a great deal of valuable property
much of it owned by Americans and
other foreigners?as well as the exist
ence of the government itself. The
armed force of Cuba being inadequate
to guard property from attack and st
i the same time properly to operate
I against the rebels, a force of American
I marines was dispatched from our naval
station at <; u an tana mo into the province
of Orteute for the protection of Ameri?
can and other foreign life and property.
The Cuban government was tlus able
to use all its forces in putting down the
outbreak, which it succeeded in doing
in a period of six weeks. The presence
of two American warships in the har
; bor of Havana during the most critical
period of this disturbance contributed
In great measure to allsy the fears of
the inhabitants, including a large for?
Necessity For Retention and Expan?
sion of Our Foreign Trade.
It is not possible to make to the con?
gress a communication upon the pres?
ent foreign relations of the United
J States so detailed as to convey an
1 adequate impression of the ^rormous
? increase in the importan *e and activi
ties of those re'ations !f this govern?
ment is really to preserve to th& Amer
' lean people that free opportunity in
foreign markets which will soon be in
I dispensable to our prosperity, even
greater efforts must be made.
Congress should fully realize the
conditions which obtain in the world
I as we find ourselves at the threshold
of our middle age as a nation. Wo
i have emerged full grown as a peer in
' the great concourse of natioris. Wo
; have passed through various formative
periods. We have been self centered
in the struggle to develop our do?
mestic questions. The nation is now
too mature to continue in its foreign
relations those temporary expedients
natural to a people to whom domestic
affairs are the sole concern.
In the past our diplomacy has often
consisted, in normsl times, In a mere
assertion of tho right to international
existence. We are now in a larger re?
lation with broader rights of our own
and obligations to others than our?
selves. A number of great guiding
principles were laid down early In the
history of this government. The recent
task of our diplomacy has been to ad
Just those principles to the conditions
of today, to develop their corollaries,
to lind practical applications of the
old principles expanded to saget new
The opening of the Panama canni
will mark a new era in our interns
tional life and create new snd world
wide conditions winch, with their vast
correlations and consequences, will ob?
tain for hunonsN of \ears to come
We must not wait for evetttS to over
take us unswsreo With continuity of
purpose we must deal with tbe prob
lems of our external rotations by a
diplomacy modem, rxeonrcefnl, tuag
nnnlmotis and fittingly expressive of
the tsi| h ideals -t a great nation.
Wild.I \M 1! TAFT
Tic White Hvvuse. Dec S. 1012