yet possible to say. The success of the move was at any rate a gratifying recognition of the growing importance of the United States in world politics, particularly in the affairs of the Pacific Ocean. Not only did the president appeal with great force and in the interest of the civilized world to the emperors of Russia and Japan to open direct negotiations ⚫ with each other, but when the commissioners met he kept in constant touch with them, advising, restraining, urging, and compromising their differences. The president's appeal was made June 8, 1905; the formal meeting of the envoys took place aboard the president's yacht August 5; the conference began its regular sessions at Portsmouth, New Hampshire, August 8; and the treaty was signed September 5. Russia and Japan agreed to evacuate Manchuria, with the exception of the Liaotung peninsula, and to restore it to China; the Russian leases of Port Arthur, Talienwan, and adjacent territories and territorial waters were to be transferred, with the consent of China, to Japan.'

While the treaty of Portsmouth was being negotiated, England and Japan signed a treaty of alliance for the protection of England's interests in India and Japan's interests in Korea, and also for the preservation of Chinese territorial integrity and the principle of commercial equality of all nations."

1 Foreign Relations, 1905, pp. 807-828.

Am. Journal of Int. Law, I., No. 1, Document Supplement.

During the war between Russia and Japan the sympathies of the American people were very largely with Japan, partly because her resources were more limited, and partly because the underhand methods of Russian diplomacy had created an unfavorable impression. But no sooner had the Russian plenipotentiaries set foot on American soil than Count Witte drew to himself the sympathetic interest of the public. This was due in part to his striking personality, and in part to the realization that the odds were greatly against him. Public opinion undoubtedly helped the Russian negotiations. The result was that the Japanese envoys went home somewhat disgruntled, and with at least an outward resentment, because they had failed to get any indemnity, and had been forced to relinquish their claims to half of the island of Saghalien. With the great prestige derived from this war, and an absorbing ambition to dominate China, Japan will undoubtedly be a formidable rival of the United States for commercial and naval supremacy in the Pacific.

CHAPTER VII

FREE SILVER VERSUS IMPERIALISM

(1900)

WHEN the presidential campaign of 1900 opened,

the Republican party had been in undisputed control of all branches of the federal government for over three years. During that time it had passed a new tariff, conducted a war with Spain resulting in the annexation of vast insular dependencies, and passed a gold-standard act. The Dingley tariff was enacted July 24, 1897, by a special session of Congress convened by President McKinley shortly after his inauguration. The duties thus imposed were excessive, but were accompanied by a provision through which it was claimed that many of the higher rates would be greatly reduced and our commerce at the same time proportionately extended: limited reciprocity agreements were au8 thorized with foreign powers, to be entered into by the president and proclaimed without the action of the Senate. Several such agreements were made. In addition, the act provided for reciprocity of a more extended nature: it gave the president power for a period of two years to enter into treaties with

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1901

ELECTION OF 1900

foreign countries, providing for a reduction of not more than twenty per cent. of the Dingley rates, in return for concessions in favor of American commerce; or to transfer to the free list articles which were the natural products of such countries, but not of the United States. The reduction offered was no real concession, for the tariff had been raised to a point where with the twenty per cent. off the rates were about normal. Under this provision seven treaties were negotiated within the next two years by John A. Kasson, and submitted by the president to the Senate for ratification; but that body, controlled by special interests, failed to act upon them.1 This was an act of bad faith to say the least, for the House had agreed to the bill and the president had signed it with the distinct understanding that the rates were to be reduced by reciprocity agreements.

The financial measure known as the gold-standard act was passed by the Fifty-sixth Congress, and signed by the president March 14, 1900. By this act the dollar consisting of 25.8 grains of gold, nine-tenths fine, was made the standard of value, and the duty was imposed on the secretary of the treasury of maintaining at a parity with that standard all forms of money issued or coined. For this purpose the secretary was authorized to set aside

1 Senate Com. on For. Rels., Compilation of Reports, VIII., 474-635. 2 U. S. Statutes at Large, XXXI., 45. 3 Cf. Dewey, National Problems (Am. Nation, XXIV.), chap. xx.

$150,000,000 in gold coin and bullion from the general funds of the treasury as a reserve fund with which to redeem United States notes and treasury notes issued under the act of 1890. If at any time this fund falls below $100,000,000 and the secretary is unable to replenish it in the usual manner, he is authorized to borrow money by the issue of bonds until the fund is restored to $150,000,000. The act did not affect the legal-tender quality of the silver dollar, but provided for the retirement of the treasury notes of 1890 as fast as silver bullion should be coined into dollars and silver certificates issued in amounts equal to the treasury notes so retired. The act also amended the national banking law by providing for the organization of banks in places of three thousand inhabitants or less with a capital of $25,000 instead of $50,000, as formerly; and by allowing banks to issue circulation on the bonds deposited up to the par value of the bonds, instead of to ninety per cent. of their face value, as before.

This act was received with great satisfaction by the financial world, and was regarded generally as settling for some time to come the financial policy of the government. The Dingley tariff, however, was by no means satisfactory to the country at large, and the dissatisfaction which it occasioned deepened when it became evident that the Republican majorities in Congress had no intention of carrying out in good faith its reciprocity features. [However vital and important the tariff policy of