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in the course of time decide, with the cordial approval of her illustrious parent land, to enter the brotherhood, thus extending it over the entire continent, an area nearly four times as large as Europe. Surely such a spectacle would soon lead the whole civilized world to follow.

Upon such an occasion as this our thoughts naturally revert to the past services of Secretary Blaine, who stands forth preeminent, presiding as he did over the First Conference of the Republics held in Washington, which conference he had called into being. We rejoice that upon these walls a permanent tribute to his memory is soon to appear. His successor, Senator Root (then Secretary of State, and to whom we chiefly owe this beautiful structure), was an honorary president of the recent and third conference and was the pioneer among high officials in visiting our southern brethren in their own countries. Much has he done for the cause, and in due time a similar tribute to him will no doubt be erected. His successor, our chairman, Mr. Knox, is already to be credited with a notable success in suggesting that the International Prize Court, agreed to by the delegates of the eight leading naval powers, be converted into an arbitral court composed of the most eminent jurists of the respective countries, authorized to decide any international disputes brought before it. Should this pregnant suggestion be approved, of which there is strong hope, the world will have at last its greatest need supplied and the young Secretary of State's everlasting monument be thus provided by one stroke of his pen.


I wish to congratulate the twenty Latin nations south of us upon their educational and intellectual progress, their vast resources, and growing prominence and international influence. Their expanding trade and commerce remarkable. The International Bureau of American Republics is performing a great work in keeping the peoples of the world advised of these matters. I confess that the figures surprise me. These twenty Republics have already 70,000,000 of people, and their foreign trade, which has doubled in the last ten years, amounts to $2,000,000,000 (not millions, but billions). Trade between our own country and these has also doubled in that time and reaches $600,000,000. If the Bureau continues keeping the world advised of the progress of PanAmerican commerce and Pan-American railways and continues to report such amazing progress and resources, it may soon be questioned whether this twentieth century is after all to be Canada's century. It may be captured, not by the northern, but by the southern part of our continent. My recent visit to the West and the Pacific convinced me that the center nation, winner of the nineteenth century, is still in the race and is not to be regarded as a negligible quantity in the struggle for record progress in the twentieth. In any case, we of the middle portion will heartily congratulate our advancing sister nations, north or south.

Mr. Chairman, fully am I persuaded that the rulers and statesmen of the earth, all of whom are to-day constantly proclaiming their earnest desire for peace, are sincere in their protestations. Why, then, is this universally desired peace not promptly secured? Equally am I persuaded that the true root of the failure lies in the fact that these rulers and statesmen know not each other well. They are strangers, and therefore naturally and mutually suspicious. When a difference arises, they meet as strangers, knowing not the sincerity, the truthfulness, the keen sense of honor, and the earnest desire for peace of their fellowstatesmen. The French have a proverb — “ We only hate those we do not know.” The reverse is also self-evidently true 'We only love those we do know."

Two men differ; if strangers, the probable result is strife. Two friends differ; the probable result is peaceful settlement either by themselves, or, failing that, by arbitration of friends, and the two friends become dearer to each other than before. Why? Because neither has assumed to sit as judge in his own cause, which violates the first principles of natural justice. The greatest crime that either man or nation can commit is to insist upon doing that which would consign the judge upon the bench to infamy if he ever dared to sit in judgment upon a cause in which he was an interested party. In nations which will tolerate the duel, its practice is rapidly falling into disrepute, and a court of honor is coming into general use, first to determine whether the two foes are justified in breaking the peace.

One of the chief missions of this palace should be, as their natural home, to draw together the diplomats and representative men of all our Republics and enable them to know each other and learn of the sterling virtues of their col. leagues, and especially their earnest desire for the prosperity of all their neighbors and their anxious hope that peace shall ever reign between them. Thus these statemen will be ome lifelong friends to whom may safely be intrusted the settlement of any international difference that may arise. Above all, we may expect that between such friends no one would insist upon sitting as judge upon his own cause were the other to propose leaving the difference to a mutual friend. This, then, is one of the greatest missions of this international meeting ground in which we are assembled. Nor will its mission be fulfilled until every Republic, and, I fondly hope, Canada also included, shall have agreed to lay aside the sword.

The most momentous declaration ever made upon this subject by the chief of a nation is that of our President recently in New York. He proclaimed that all international disputes should be settled by arbitration; no exceptions. A court of honor should decide whether any dispute involved that phantom of nations called honor. The independence and existing territorial limits of nations would, of course, be sacred and recognized as beyond dispute. He has given us the true solution of the problem of peace against war and placed our Republic in the van, and he is to rank in history with the greatest benefactors of his race.

The crime of war is inherent - it gives victory not to the nation that is right, but to that which is strong.

As I speak there comes to me a new poem, The New Age. I quote two verses:

When navies are forgotten

And fleets are useless things,
When the dove shall warm her bosom

Beneath the eagle's wings,
When memory of battles

At last is strange and old,

When nations have one banner

And creeds have found one fold,
Then hate's last note of discord

In all God's world shall cease
In the conquest which is service,

In the victory which is peace.

With the words of Washington, the father of our country, in my heart: “My first wish is to see the plague of mankind, war, banished from the earth," I now join in dedicating this home of the Bureau of the American Republics to the highest of all its missions, the abolition of the crime of killing man by man a8 a means of setting international disputes.

In closing the formal exercises, President Taft said:

I wish to congratulate our sister republics upon the marvelous progress that they have made in the last two decades in material advancement, and in that without which either spiritual or material advancement is impossible, in peace, in the stability of their government, in the consciousness that it is the annals of a peaceful, happy country that are tiresome. The few instances of disturbed countries that remain are being made less in number by the wonderful progress and prosperity of those who preserve the stability of their government by the peaceful rule of the majority.

It goes without saying that in the foreign policy of the United States its greatest object is the preservation of peace among the American Republics. And it goes also without saying that the organization of the Bureau of American Republics, and the making of this family of American Republics, are events that tend more than anything else to the preservation of that peace, for we twenty. one Republics can not afford to have any two or any three of us quarrel. We must stop. And Mr. Carnegie and I will not be satisfied until all nineteen of us can intervene by proper measures to suppress a quarrel between any other two.

Of course, we are not all philanthropists, as Mr. Carnegie is, and we have an additional interest in the Bureau of American Republics and in the cultivation of good will between the twenty-one Republics in that we hope each of us may profit by the trade which will be promoted by our closer relations.

This is the centennial year of many of the twenty-one Republics, and it is very fitting that the building which represents their closer union should be dedicated in this year.

There is only one other happy feature of the occasion to which I wish to refer, and that is the absolute fitness for the making of this Bureau a success, of Mr. John Barrett. He was born for it, and I hope he will continue to make it more and more useful as the years go on.

For the present Secretary of State, I want to say and I speak with modesty, hecause he and I are in the same administration - there is nothing that this Government can do to promote the solidity of the union between the twenty-one Republics that meet here in this building in joint ownership, that he is not willing and anxious to do. And, if I have any influence with the administration, I propose to back him to the full in carrying this policy out.

The dedication of the Pan-American Building is in the best sense of the word an international event, deeply concerning the future interests and intercourse of the twenty-one Republics of the Western Hemisphere. It is the visible evidence of the progress of a century towards closer union and clearer understanding. It is likewise a guarantee for the future and will doubtless generate the sentiment of solidarity and fellowship which it proclaims and perpetuates.


1. The Hukuang Loan Agreement

Late in May last the United States Government learned that an understanding had been reached between important British, French and German financial groups suported by their Governments by which they were to furnish funds for the construction of two great railways in China. The United States, believing that sympathetic cooperation between the governments most vitally interested would best subserve the policies of. maintenance of Chinese political integrity and equality of commercial opportunity, suggested that American cooperation with the powerful international financial group already formed would be useful to further the policies to which all were alike pledged.

The American Government pointed out that the greatest danger at present in China to the open door and the development of foreign trade arose from disagreements among the western nations, and expressed the opinion that nothing would afford so impressive an object lesson to China and the world as the sight of the four great capitalist nations - Great Britain, Germany, France, and the United States — standing together for equality of commercial opportunity.

An agreement was soon reached with the Chinese Government that American bankers should take one fourth of the total loan and that Americans and American materials should have all the same rights, privileges, preferences, and discretions for all present and prospective lines that were reserved to the British, German, and French nationals and materials under the terms of their original agreement, except only the right to appoint chief engineers for the two sections about to be placed under contract. As to the latter point China gave assurance that American engineers would be employed upon the engineering corps of both roads and that the present waiving of America's right to chief

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engineers would in no way prejudice its rights in that regard when
future extensions should be constructed. After several months of con-
tinuous negotiation, the right to such American all-round equal partici-
pation has been acknowledged and a final settlement on this basis has
been completed.

The grounds for this energetic action on the part of the United States
Government have not been generally understood. Railroad loans floated
by China have in the past generally been given an Imperial guarantee
and secured by first mortgages on the lines constructed or by pledging
provincial revenues as security. The proposed hypothecation of China's
internal revenues for a loan was therefore regarded as involving import.
ant political considerations. The fact that the loan was to carry an
Imperial guarantee and be secured on the internal revenues made it of
the greatest importance that the United States should participate therein
in order that it might be in a position as an interested party to exercise
an influence equal to that of any of the other three powers in any ques-
tion arising through the pledging of China's national resources and to
enable the United States, moreover, at the proper time again to support
China in urgent and desirable fiscal administrative reforms, such as the
abolition of likin, the revision of the customs tariff, and general fiscal
and momentary rehabilitation.

II. The Manchurian Railways
As is well known, the essential principles of the Hay policy of the
open door are the preservation of the territorial and jurisdictional in-
tegrity of the Chinese Empire and equal commercial opportunity in
China for all nations. The United States Government believed that one
of the most effective, if not the most effective way to secure for China
the undisturbed enjoyment of all political rights in Manchuria and to
promote the normal development of the Eastern Provinces under the
policy of the open door practically applied, would be to take the railroads
of Manchuria out of Eastern politics and place them under an economic
and impartial administration by vesting in China the present ownership
as well as the reversion of its railroads; the funds for that purpose to
be furnished by the nationals of such interested powers as might be
willing to participate and who were pledged to the policy of the open
door and equal opportunity; the powers participating to operate the rail-
way system during the period of the loan, and enjoy the usual prefer-
ences in supplying materials.

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