prehensive and systematic nature, the development of which is still going on.

Among those measures one of the most important is that bringing into operation the convention adopted by the International American Conference at Buenos Aires, in 1910, for the protection of trademarks. By this convention the American Republics were divided. into two groups, the northern, embracing the United States, Costa Rica, Cuba, Dominican Republic, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, and Salvador; and the southern, embracing Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela. Of the southern group, Rio de Janeiro was designated as the official center, and of the northern, Havana; and at each of these capitals there was to be established an international bureau for the registration of trade-marks, so as to secure their international protection in the Americas. This treaty, so closely related to the interests of the countries concerned and not least to those of the United States, had lain dormant and unratified. The Inter-American High Commission took it up and brought about its ratification by the requisite two-thirds of the northern group, all of whose members, except Mexico and Salvador, have now ratified it. As a result, the International Bureau of Havana is now open and in operation. It is hoped that a similar result may soon be attained in the southern group, where Bolivia, Brazil, Ecuador, Paraguay, and Uruguay have so far deposited their ratifications. Meanwhile, it would seem to be worth while to consider whether, pending the establishment of the Rio bureau, an arrangement might not be made whereby the members of the southern group, which have ratified the convention, may gain the benefits of international registration by accepting the services of the bureau at Havana.

Another measure that has been vigorously pressed is the convention to facilitate the operations of commercial travelers. In a number of the American countries local taxes, practically prohibitive in amount, on the operations of such travelers, have for many years existed. The Inter-American High Commission, at its meeting at Buenos Aires, adopted a resolution containing the basis of uniform regulations for commercial travelers and their samples. Taking this resolution as a starting-point, the Central Executive Council drafted an international convention, which, after examination and revision, was submitted by the Department of State to the American Governments,

looking (1) to the substitution for all local taxes of a single national fee; and (2) to the admission of samples, (a) without value, free of duty, and (b) with value, under bond for payment of duty on any not afterward withdrawn. This convention, which was first signed and ratified by the United States and Uruguay, has since been signed and ratified by Guatemala and Panama, and has been signed by five other countries-Salvador, Venezuela, Paraguay, Ecuador, and Nicaragua-whose ratifications are awaited. It is understood that several others are ready to sign the convention, while yet others are still considering it, some apparently with favor.

Another measure preferentially dealt with, because of its significance for the future as well as for the present, is the treaty for the establishment of an international gold clearance fund. This treaty has a twofold object. It is designed not only to assure the safety of deposited gold and to avoid the necessity of its shipment when difficulties in transportation exist, but also to facilitate and stabilize exchange through the adoption of an international unit of account. The plan was very carefully studied by the Inter-American High Commission at Buenos Aires; and subsequently, through the coöperation of the Central Executive Council with the Department of State, at Washington, it was incorporated in a draft of a treaty. This draft has so far been signed with the United States by Paraguay, Guatemala, Panama, and Haiti, but it has been approved in principle by at least six other Republics, some of which are now actively considering its adoption.

In order that the nature and object of this treaty may be understood, I will give a precise outline of its provisions. It is agreed that all deposits of gold, made in a bank designated for the purpose, in any of the signatory countries, for the payment of debts incurred in another such country in private commercial and financial transactions, shall be treated as an international trust fund, to be used for the sole purpose of effecting exchange, where, for one reason or another, the actual shipment of gold is to be avoided. To attain this end, the treaty provides the following machinery: Each signatory government is to designate a bank within its jurisdiction to hold any part of the fund there existing as joint custodian with such person or persons or such institution or institutions as the signatory governments may concur in appointing for the purpose. These joint cus todians would hold the moneys so entrusted to them, as part of the

fund, subject to the order of the creditor or creditors for whom the fund is held. Obviously, as the number of signatory governments increased, so would the number of joint custodians. While the international scope of the fund would thus be enlarged, the interest in its security and administration would be correspondingly widened. The details of the practical operations of the fund are to be regulated and determined between the designated banks. In order to facilitate such operations the signatory governments agree to take into consideration the ultimate adoption of a uniform exchange standard, permitting the interchangeability of their gold coins; and for this purpose they recommend the adoption of gold coins which shall be either a multiple or a simple fraction of a unit consisting of 0.33437 gram of gold 0.900 fine. This unit, which represents twenty cents, or one-fifth of a dollar, United States gold, has been popularly called the American franc. Irrespective, however, of the contemplated ultimate unification of standards of American gold coins, the plan, reduced to its simplest meaning, involves the creation of international safe-deposit boxes, where gold may be kept under the guardianship of several American governments, signatories of the treaty. The International Gold Clearance Fund Treaty by its terms covers only the American nations; but it contains a principle, the discussion of which has lately attracted wide attention and which may prove to be of incalculable value to the world in the future.

Nor should we overlook what has been accomplished in extending the practical acceptance of the principle of the arbitration of commercial disputes. In the program of the Inter-American High Commission this subject has occupied a prominent and permanent place. A substantial achievement was recorded, when, on April 10, 1916, a plan, agreed upon by the Chambers of Commerce of the United States and Buenos Aires, was formally put into effect. The results have been most gratifying; and agreements have since been made between the United States Chamber of Commerce and the national Chambers of Commerce of Uruguay, Ecuador, Panama and Guatemala. Similar agreements are in process of negotiation with the Chambers of Commerce of Honduras, Peru and Montevideo, and one with that of Asunción has just been signed. Much yet remains to be done to give legal certainty, stability and efficiency to the system. Especially is this the case in the United States, where the archaic rule permitting the disregard of arbitral clauses still pre

vails. This rule should be superseded by legislation, similar to that which exists in most other countries, making commercial arbitration, under the supervision of the courts, an integral part of legal procedure. On this question I feel that I can add nothing to the argument so comprehensively and cogently presented in the recent volume on "Commercial Arbitration and the Law," by Mr. Julius Henry Cohen of the New York Bar.

The Central Executive Council has had in its work the active and hearty coöperation of various bodies, such as the American Bankers' Association, the Committee on Commercial Law of the Conference of Commissioners on Uniform State Laws, the United States Chamber of Commerce and the National Foreign Trade Council. It is gratifying to bear testimony to the aid and support thus rendered.

At the present hour, when we are accustomed to think in billions, unfortunately, I may say, of accumulated and accumulating debt rather than of accumulated and accumulating treasure, I trust that I shall not seem to sound a discordant note if I advert to the strict economy practiced by the Inter-American High Commission in its expenditures. So far as concerns the Treasury of the United States, the entire cost of the Commission, since it began its work in 1915, including the visit of the United States Section to Buenos Aires in 1916, represents an annual average hardly equal to the cost of two large public dinners; and when I speak of expenditures, I include not only salaries, but furniture and equipment, stationery and printing, the use of the telegraph and the telephone, and expert assistance in law and in languages. The smallness of the expenditure, which is out of all proportion to the work actually done, is to be ascribed not only to the voluntary services rendered by individuals and by public bodies, but also and in the main to the devotion of the permanent working force and the exceedingly moderate compensation which it receives.

The Second Pan-American Financial Conference met in Washington on Monday, January 19, 1920. Its formal business sessions ended on Friday, January 23d. There were, however, on the official program certain additional exercises, the last of which was a dinner given to the foreign official delegates by the Pan-American Society of the United States at the Waldorf-Astoria, in New York, on the

evening of Tuesday, January 27th. More than five hundred persons were present at this banquet.

All the American Republics were officially represented in the Conference, except Costa Rica, which had no delegate because the United States has not as yet recognized its existing government. At the head of the delegations from Argentina, Colombia, Haiti, Nicaragua, Paraguay, Peru, Salvador and Uruguay, were their Ministers of Finance. Guatemala's delegation was headed by her Minister of Foreign Affairs. A similar position in the delegations from Cuba, the Dominican Republic, Ecuador and Mexico, was occupied by their diplomatic representatives at Washington.

As in the first Conference, the work, with the exception of addresses, was performed by group committees and a committee on resolutions. The presiding officer was the Secretary of the Treasury of the United States, the heads of the various foreign delegations being vice-presidents. By a group committee is meant a committee assigned to a particular country. Each country had such a committee, consisting of its official delegates, usually three in number, and a group of citizens of the United States, usually to the number of fifteen or sixteen, and a secretary. The United States group, it may be observed, though an unofficial body, is designed to continue in existence, for consultative and other purposes.

The group committees were very active bodies, working incessantly and very earnestly, in order to prepare and to present to the Conference, within the brief space allowed, a comprehensive report on the financial, industrial and commercial situation in the respective countries, with recommendations as to what particular measures should be adopted to meet their various needs. All committee reports and all proposals were referred to the Committee on Resolutions, whose report was presented to the Conference on the morning of Friday, January 23d. With the adoption of this report, the formal sessions at Washington came to a close.

The report embraced eighteen resolutions, by the first of which, with a view more definitely to indicate its constituency and sphere of work, the title of what was previously called the International High Commission was changed to Inter-American High Commission. To this body the resolutions specifically referred, for study or for action, various matters concerning which it was not practicable for the Conference itself to make a definitive recommendation. These