how to do justice to enemy property rights and yet prevent their use against oneself, by impounding on a great scale, in charge of a public official who shall account after the war for all property taken over. This official is the Alien Property Custodian, "vested with all of the powers of a common-law trustee in respect of all property, other than money, which shall come into his possession in pursuance of the provisions of this Act."

Before enumerating the scope of this official's duties, however, it will be convenient to call attention to certain variants of the definition of "enemies" under the Act, which bear upon the Custodian's duties. The first is that, under the Act "enemy" and "ally of an enemy" are lumped together. Thus, since the declaration of war with Austria, the Act applies to those subjects of Bulgaria and of Turkey who may own property here. Another is that residents of territory occupied by an enemy are classed as enemy's subjects for the purposes of the Act. Therefore, a Belgian capitalist owning shares in an American concern is not differentiated from a Berliner. And third, enemy subjects wherever resident are included; a German coffee planter in Brazil, for instance, if the President shall so determine.

Having thus defined enemies, enemy allies, and the property of both, the Act prescribes the duties of the Alien Property Custodian with regard to them. He is to receive enemy's money and property transferred to him, and to administer and account for it, giving proper security. He is appointed by the President, his many assistants being under the regulations of the Civil Service Commission. With him is to be filed a list of officers and shareholders in American companies who are known or suspected to be enemies, together with the amount of their holdings. Trustees and agents with enemy principals, and debtors owing money to enemy creditors, must report to him also as to said debt due or trust property received. And unless licensed to the contrary, such fiduciary will actually pay over such property or money to the Custodian, this payment to be a full discharge.

In case of contracts with enemies abrogated by war, notice thereof is deposited with the Custodian. Claimants to property deposited with the Custodian may sue in equity, making him a defendant, in the United States court of the claimant's district. The users of enemy patents, trade-marks, and copyrights must account to the President and pay not to exceed 5 per cent of their gross sales to the Custodian, with liberal provision for a settlement after the war. The regulation of enemy

owned patents is very favorable to the owner, for he may both take out patents during hostilities and protect against infringement by suit.

Enemy money coming into the hands of the Custodian is to be turned over by him into the United States Treasury and may be invested in Government securities. But other property in the Custodian's keeping is to be duly administered and its income placed in the Treasury. To this end, on his demand, stock or other evidences of beneficial interest of enemy ownership must be transferred to the Custodian's account.

This is a brief summary of the part played by the Custodian in this vast impounding of the property of enemies within the jurisdiction of the United States, the evident intention being that after the war there shall be an accounting and refunding, although the Act says all such claims "shall be settled as Congress shall direct." He represents a supplemental part of the machinery of the process by which a middle course is steered between the ancient harshness of confiscation and the modern idea that foreign property rights have been encouraged to enter a foreign state with the implication of fair treatment.

The Custodian named by the President for the purposes of the Act was A. Mitchell Palmer, Esq. The date set within which return of enemies' money and property must be made to the Custodian was December 5. He has publicly stated that its amount already exceeds six hundred million. The staff in charge of this vast and complicated business numbered 250, with a prospect of increase.

The machinery thus created was set in motion by Executive Order 1 on October 29, 1917. A form of report is provided and specific instructions are given as to (1) who must make the report, and (2) what must be reported, with penalty for failure. These instructions are too long to warrant quoting here; they are well and clearly expressed, but the Act itself is clumsily phrased. One clause adds to the Act's comprehensiveness: "If a person, even an American citizen, is resident within the territory of an enemy or ally of an enemy, including that occupied by its military and naval forces, his property must be reported."

Corresponding to this Trading with the Enemy Act and the employment of a Custodian under it, we learn by the official Reichsanzeiger "that the ordinances dated October 7, 1915, governing compulsory notification to the authorities of foreign property in Germany, have been extended, together with the penalties in cases of noncompliance, 1 Printed in SUPPLEMENT to this JOURNAL, p. 60.

to property owned by citizens of the United States as from November 20," such property to be placed under the Trusteeship of the German Government. The term "property" includes shares in German enterprises within the empire and legal claims upon persons domiciled there. The immediate object of this registration is declared to be "to prevent the illegal transfer or liquidation of American property held within the limits of the empire, for the purpose of removing it from official control and conveying its proceeds abroad. These restrictions do not apply to such disposition as Americans may desire to make of their property within Germany. They, however, are not permitted to sell their holdings to a resident member of a firm in this country without specific permission. American manufacturing plants are not molested and American residents in Germany may also continue freely to dispose of their private means within the confines of the country." It is officially added that the compulsory liquidation of the administration of the property of American firms is not contemplated, as it is presumed the provisions of the Trading with the Enemy Act do not purpose the sequestration or confiscation by the American Government of German property held in the United States. A Copenhagen dispatch significantly adds that these German regulations are of such nature that they can be used as a basis for financial reprisals.

As the text of the German ordinance concerning trading with the enemy is not accessible, further details cannot be given.

From remote times, trading with the enemy has been illegal in Great Britain; the prohibition had accordingly only to be made operative by royal proclamation, which was issued on the day after the declaration of war, though subsequently modified. Penalties and details were specified in the Act of September 18. It was not until the end of November, the 27th, that the Custodian of Enemy Property was appointed by and under the regulations of the Board of Trade. To this Custodian are to be paid any dividends, interest, or share of profits belonging to an enemy, together with any money paid into a bank or held in trust, for an enemy's account, with penalty for noncompliance. Evasion of full distribution is penalized. Enemy's rents are to be lodged with the Custodian. Notification of all facts. relating to the above is compulsory. The High Court or one of its judges may vest in the Custodian debts due from an enemy or damages recoverable from him, or property or property rights, real and personal, belonging to him, with power to sell and manage. The Custodian

shall hold such money and property for the duration of the war, “and shall thereafter deal with the same in such manner as His Majesty may by Order in Council direct." Enemy property in the hands of the Custodian is made liable on proper order for that enemy's debts, but with due regard to other claims upon him. No assignment of enemy property in evasion of the Act is valid.

In subsequent orders, I note as of interest that occupied territory, its residents and their property, is treated as a part of the occupant's territory, copied in the United States Act. Also that interest on public British obligations of the government, of any of the Dominions, of muncipalities or of foreign governments - due to an enemy, is payable to the Custodian. Occasional changes were made in the procedure.

Our Act was evidently patterned after the British Act, but is more of a unified system, not having thus far at least to be frequently patched up to meet developments. And our Act classes enemies and their allies together, while the British Act met the emergency of each new enemy by reënactment ad hoc. Germany and Austria-Hungary at the outset had no allies.

These are the more important provisions of the Trading with the Enemy Acts so far as they relate to a Custodian, or public trustee. They appear to form a reasonable and necessary piece of machinery to sequestrate and administer the property of every kind belonging to nonresident enemies, in a just and orderly manner during a war.

It would be valuable if a Custodian or his Assistant would give the JOURNAL an account of its actual working. If an international boycott ever becomes a real part of a public system for bringing pressure upon a recalcitrant state, this practice, or something resembling it, must be resorted to.

T. S. WOOLSEY.

THE INTERNATIONAL RELATIONS OF JAPAN, CHINA AND THE

UNITED STATES

In an editorial comment in the last issue of the JOURNAL,1 attention was called to the visit of the Japanese mission to the United States, headed by Viscount Ishii, and a part of his address, delivered at a banquet in New York on September 27, 1917, was quoted, in which the

1 October, 1917, p. 839.

distinguished head of the mission referred to, as better than ships, men or guns, the notes exchanged between Secretary Root and Ambassador Takahira in 1908, in which the two governments expressed themselves as mutually agreed "formally to respect the territorial possessions belonging to each other in the regions of the Pacific Ocean." Thereupon Viscount Ishii stated, in behalf of the country which he represented:

Gentlemen, Japan is satisfied with this. Are you? If so, there is no Pacific Ocean question between us. We will coöperate, we will help, and we will hold, each of us, what is guaranteed under that agreement.

On this state of affairs the editorial comment indulged in that most dangerous but most attractive weakness of even well-informed persons when speaking of public affairs-a political prophecy - and the writer of the comment felt himself justified in assuring Viscount Ishii and the people of Japan, for whom he spoke, that the people of the United States would answer "yes" to his questions. But, of course, a statement of this kind could only be taken as an expression of individual good will and a hope that it was shared by the American people. The best answer would be that of the American people, and as Viscount Ishii spoke for the Japanese people, it was natural that Secretary Lansing should speak not only for the American people but for the government which they have constituted and to whose support they have pledged their lives and their sacred honor.

To this question, put on September 29, 1917, a formal answer was given on November 2, 1917, by Secretary of State Lansing on behalf of the government and people of the United States, and accepted by Viscount Ishii on behalf of the government and people of Japan, and evidenced by an exchange of notes between Secretary Lansing and Ambassador Ishii. The simplest way of making clear the intent of the two countries is to set forth the evidence of their intent, which they themselves have furnished:

EXCHANGE OF NOTES BETWEEN THE UNITED STATES AND JAPAN, NOVEMBER 2, 1917 1 In order to silence mischievous reports that have from time to time been circulated, it is believed by us that a public announcement once more of the desires and intentions shared by our two Governments with regard to China is advisable. The Governments of the United States and Japan recognize that territorial 1U. S. Treaty Series, No. 630. The texts of both identic notes are printed in the SUPPLEMENT to this issue, p. 1.