whereby it stands pledged to cooperate in the military defense of the canal, despite its solemn obligations as a member of the League of Nations.

The nigger in the Nicaraguan wood pile is evidently the issue on quite different grounds-between the United States and its neighbor immediately to the south of the Rio Grande. In order to enforce our will, we appear to menace Mexico with the threat of severing diplomatic relations and lifting the embargo on arms and munitions, which would result, probably, in putting the country anew into the throes of civil war. Yet the problem need not be solved in this fashion. With all due respect for "national honor and vital interests,” the matters in dispute might be adjusted by a resort to the Permanent Court of International Arbitration at The Hague, of which the United States is a sponsor.

Our country may not "covet an inch of our neighbors' territory"; yet somehow it seems to have been exemplifying on this side of the Atlantic what John Galsworthy described as a characteristic of the motherland on the other "the possessive instinct of the nation on the move." Of the measures we have taken in the Caribbean, the eventual outcome is painfully clear. If we go on as we have begun, the American empire must ultimately bestride the entire area. Politically, the republics within it may remain "sovereign and independent"-in the language of diplomacy. Economically, they would become a happy hunting ground for American capitalists, upheld and protected by their government. The Monroe Doctrine then will deserve the definition given in the covenant of the League of Nations: a "regional understanding" about a sphere of influence for a great power.

Of this broadening out of the United States over its huge preserve, bounded by the wall of the Monroe Doctrine, the nations of Europe doubtless would disapprove. Even though we are only emulating their own example elsewhere in the world, they are likely to object to such

behavior on our part, just as the Latin-American republics still outside the sphere will cherish resentment. Both will vent their feelings in hard words, if nothing worse. But what does that matter? Business is business. And southward the course of empire takes its way.

FROM STATE DEPARTMENT RECORDS®

1907

Central American Court of Justice created under joint auspices of United States and Mexico.

1909

October 7. American consul at Bluefields, Nicaragua, wires State Department that "a revolution will start in Bluefields on the 8th," that the revolutionaries "propose to protect the property of foreigners," and that General Emiliano Chamorro (who, with J. J. Estrada and Adolfo Diaz, secretary-at $1,000 per year-of an American mining company, was to lead the revolution) has just landed secretly from Costa Rica. October 12. Consul wires State Department that revolution occurred on 10th; that "foreign business interests are enthusiastic," that "immediate reduction of tariff is assured; also the annulment of all concessions not owned by foreigners."

December 1. Secretary Knox withdraws recognition of Nicaraguan government, stating that "the government of the United States is convinced that the revolution represents the ideals and the will of a majority of the Nicaraguan people more faithfully than does the government of President Zelaya."

December 16. Zelaya resigns, naming Madriz, also of Liberal party, to succeed him.

6 By Lewis S. Gannett. Nation. 124:89-91. January 26, 1927.

1910

May 16. Madriz forces, having swept all Nicaragua, call upon Estrada to surrender his last stronghold at Bluefields.

May 16. U.S.S. Paducah declares Bluefields a netural

zone.

May 31. United States prohibits interference with American ships carrying arms to Estrada in Bluefields; insists that customs duties be paid to Estrada faction, not to Madriz.

August 20. Madriz resigns; Estrada enters capital and declares himself president; his first official act is to telegraph Secretary Knox that the victorious party "entertains warm regard for American people.” September 12. Estrada promises to ask for American loan.

October 11. Department of State offers aid in securing loan from American bankers, suggests foreign control of customs, and offers service of "confidential financial expert."

October 18. Thomas C. Dawson arrives as special agent of the United States.

October 27. "Dawson Pact" signed on board United States battleship by Nicaraguan leaders, promising loan, American customs control, and a claims commission-one member to be appointed by Nicaragua, two by United States-to settle American claims. against Nicaragua; and agreeing upon election of Estrada and Diaz as president and vice-president. December 31. General election; Estrada and Diaz unanimously elected.

1911

March 27. American minister cables "President Estrada is being sustained solely by the moral effect of our support and the belief that he would unquestionably have that support in case of trouble."

March 29.-Estrada by presidential decree ratifies Dawson plan for claims commission.

April 4. President Estrada dissolves assembly; revolution threatens.

Late April. New assembly, subordinate to Estrada, elected.

May 6. New assembly authorizes president to negotiate loan with American bankers.

May 9. Estrada resigns in favor of Diaz.

May 14. Department of State approves recognition of Diaz; revolution still threatens.

June 5. American minister reports informing Diaz that "I had communicated to my government his pledge not to resign and that I was instructed to say that my government considered the pledge as given to it through me and appreciated it very much."

June 6. Knox-Castrillo treaty signed, United States offering to aid Nicaragua to get $15,000,000 loan from American bankers, customs to be put under American control as security. (This treaty was never ratified, either by the American Senate or the Nicaraguan Assembly.)

July 30. American minister reports that Diaz is a mere figurehead, but has "repeated his promise not to resign until the loan matter had been settled."

September 1. Brown Brothers and Company, and J. and W. Seligman and Company, New York bankers, sign contract for $15,000,000 loan if and when treaty is ratified; meanwhile lend Diaz government $1,500,000, also guaranteed on customs, which they are to control; bankers also take option for 51 per cent of stock of National Bank of Nicaragua, and railway rights. November 20. State Department wires to hold assembly in session until American fiscal experts arrive, as supplementary legislation may be needed.

December 2. Diaz orders assembly held in session. December 21. Diaz confidentially suggests treaty "per

mitting the United States to intervene in our internal affairs."

December 23. Secretary Knox expresses "intense gratification."

1912

March 26. Same bankers give Nicaragua further loan of $500,000 taking lien on government steamship and railway lines.

July 29. Anti-Diaz revolution breaks out; Diaz appoints Chamorro his general-in-chief.

August 3. Revolution spreading; Diaz asks "that the government of the United States guarantee with its forces security for the property of American citizens in Nicaragua and that it extend its protection to all the inhabitants of the republic."

August 4. 100 men from U. S. S. Annapolis arrive in Nicaraguan capital. United States minister orders. revolutionaries to return engine and two box cars to American corporation operating railroad.

August 11-15. Nicaraguan capital bombarded by revolutionaries.

August 12. American manager of Bank of Nicaragua wires James Brown of Brown Brothers for protection. Brown consults State Department.

August 15. Major Smedley D. Butler with 350 United States marines arrives in capital.

August 20 (about). American minister declares capital a neutral zone. September 4. State Department announces its policy is "to take the necessary measures for an adequate legation guard at Managua, to keep open communications, and to protect American life and property." Also states that "the American bankers who have made investments . . . have applied for protection.” September 5. Admiral Southerland arrives with reinforcements.