Karl Georg Wieseler.

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of international complications due to disorder at
home. Hence the United States has been glad to
encourage and suppttrt American bankers who were
willing o lend a helping* hand to the financial re-
babilitafton of such countries l>ecau8e this financial
rehabilitation and the protection of their custom
bouses from being the prey of would be dictators
would remove ai one stroke the menace of foreign
creditors and the menace of revolutionary disorder.
ITie second advantage to the United States is one
affecting chiefly all the southern and gulf ports
and the business and Indus ry of the south. The
republics of Central America and the Caribbean
possess great natural wealth. They need only a
measure of stability and the means of financial
regeneration to enter upon an era of peace and
prosperity, bringing profit and happiness to them-
selves and at the same time creating conditions
sure to lead to a flourishing Interchange of xrade
with this country.

I wish to call your special attenti(»i to the re-
cent occurrences in Nicaragua, for I believe the
terrible events recorded there during the revolution
of the last summer— the useless loss of life, the dev-
astation of proi>ertT, the bombardment of defense-
less cities, toe killing and wounding of women and
children, the torturing of noncombatants to exact
contributions, and the suffering of thousands of
human beings— might have been averted had the
department of state, through approval of the loan
convention by the senate, been permitted to carrr
ont its now well developed policy of encouraging the
extending of flnancial aid to weak Central Amer-
ican states, with the primarv objects of avoiding
just such revolu:ions by assisting those republics
to rehabilitate their finances, to entabllsh their
currency on a stable basis, to remove the custom
houses from the danger of revolutions by arranging
for their secure administration and to establish re-
liable banks.

During this last revolution In Nicaragua, the gor-
emment of that republic having admitted its Ina-
bility to protect American life and property against
acts of sheer lawlessness on the part of the mal-
contents, and having requested this government to
as^inme that otflce, it oecame necessary to land
over 2.000 marines andi bluejackets In Nicaragua.
Owing to their presence the constituted govern-
ment of Nicaragua was free to devote Its attention
wholly to Its mtemal troubles and was thus en-
abled to stamp out the rel>elIion In a short space
of time. When the Red Cross supplies sent to
Granada had been exhausted. 8.000 persons having
been itlven food In one day upon the arrival of
the American forces, our men supplied other un-
fortunates, needy Nlcaraguans, from their own

I wish to congratulate the officers and men of
the United S'ates navy and marine corps who took
part In re-establishing order In Nicaragua upon
their splendid conduct, and to record with sorrow
the death of seven American marines and blue-
jaekets. Since the re-establlshment of pence and
order elections have been held amid conditions of
quiet and tranquillity. Nearly all the American
marines have now been withdrawn. The country
•bonld soon be on the road to recovery.

The only apparent <langer now threatening Nl'^a-
ragua arises from the shortage of funds. Al-
though American bonkers have already rendered
assls'ance. thev may naturally be loath to advance
a loan adequate to set the country upon its feet
without the support of some such convention as
that of June, 1011. upon which the senate has not
yet acted.

In the general effort to coniVlbnte to the enjoy-
ment of peace by those republics which are near
noighbors of the United States, the administra-

tion has enforced the so-called neutrality statutes
with a new vigor, and those statutes were greatly
strengthened In restricting the expori'atlon of
arms and munitioos by the Joint resolution of
last March. It is still a re.Trettable faci" that
certain American ports are made the rendesvous
of profcMlonal revolutionlsta and others engaginl
In Intrigue against the peace of those republics.
It must be admitted that occasionally a revolu-
tion in this region Is Justified as a real popular
movement to throw off the shackles of a vicious
and tyrannical government. &uch was the Nica-
raguan revolution against the Zelaya regime.
A nation enjoying our liberal institutiona cannot
escape sympathy with a true popular movement,
and one so well Justified. In very many cases,
however, revolutions in the republics In question
have no basis in principle, but are due merely
to the machinations of conscienceless and an>bl-
tlous men, and have no effect but to bring m w
suffering and fresh burdens to an already op-
pressed people. The question whether the use
of American ports as foci of revolutionary intrigue
can be best dealt with by a further amendment
to the neutralltv statutes or whether it would
be safer to deal with special cases by special
laws Is one worthy of the careful considerailon
of the congress.

Impressed with the particular importance of
the relations between the United states and \he
republics of Central America and the Caribbean
region, which of necessity must become still more
intimate by reason of the mutual advantages
which will be presented bv the opening of the
Panama canal. I directed the secretary of state
last Februarv to visit these republics for the
purpose of giving evidence of the sincere friend-
ship and good will w^ich the government and
people of the United States bear toward them.
Ten republics were visited. Everywhere he waa
received with a cordiality of welcome and a gen-
erosity of hospitality snch as to impress me
deeply and to merit our warmest thanlcs. The
appreciation of the governments and peoples of
the countries visited, which has been appropri-
atelv shown in various ways, leaves me no doubt
that' his visit will conduce to that closer union
and better tmderstanding between tlie United
'States and those republics which I have had it
much at heart to promote.

For two years revolution and counter revolntion
have distraught the neighboring republic of Mexico.
Brigandage has involved a great deal of depre-
dation upon foreign Interests. There have con-
stantly recurred questions of extreme delicacy.
On several occasions very difficult situations have
arisen on our frontier. Throughout this trying
period the policy of .the United States has been
one of natient nonintervention, -steadfast recog.
nltlon of constituted authority in the neighboring
nation and the exertion of every effort to care
for American interests. I profoundly hope that
the .Mexican nation may soon resume the path
of order, prosperity and progress. To that nation
In Its sore tronbles the sympathetic friendship
of the United States has been demonstrated to
a high degree.

'lueie were In Mexico at the beginning of the
revolution some thirty or forty thousand American
citizens engaged in enterprises contributing greatly
to the prosperity of that republic and also benefit-
ing the important trade between the two countrlog.
The investment of American capital in Mexleo
has been estimated at $1,000,000,000. The re-
sponsibility of endesvorlng to safeguard those
Interests and the dangers Insepar^able from pro-
pinquity to so turbulent a situation have been
prejit. but I am happy to have been able to
ndhere to the policy above outlined— a policy which
I hop«» mny be soon Justified by the complete
success of the Mexican people in regaining the
blessings of peace and good order.

A most important work accomplished In the last
year by the American diplomatic offleers In Europe
U the Investigation of the agricultural credit sys-
tem in the European countries. Both as a meane

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to afTord relief to the consumers of this country
through a more thorough deTelopment of agricul-
tural ri'Bources and as a means or more sufficiently
maintaining* the agricultural population the project
to establish credit facilities for the farmers is a
concern of vital importance to this natiun.

No evidence of prosperity among well established
farmers should blind us to the fact that lack of
capital is preventing a development of the na-
tion's agricultural resources and an adequate In-
crease of ^he land under cultivation; that agricul-
tural production is fast falling behind the Increase
In population, and that, In fact, although these
well established farmers are maintained in Increas-
ing prosperity because of the natural increase In
population, we are not developing the Industry of
agriculture. We are not breeding in proportionate
numtters a race of Independent and Independence
loving landowners, for a lack of which no growth
of cities can compensate. Our farmers have been
our mainstay in times of crisis, and in future It
must still largely be upon their stability and
common sense that this democracy must rely to
conserve its principles of self-government.

The need of capital which American farmers feel
to-day had been experienced by the farmers of
Europe, with their centuries old farms, many
years ago. The problem had been successfully
solved In the old world, and It was evident that the
farmers of this country might profit by a study
of their systems. I therefore ordered, through
the department of state, an Investigation to be
made by the diplomatic officers in Europe, and I
have laid the results of this Investigation before
the governors of the various states with the hope
that they will be used to advantage In their forth-
coming meeting.

In my last annual message I said that the
fiscal year ended June 30, 1911, was noteworthy
as marking the highest record of exports of
American products to foreign countries. The fiscal
year 1912 shows that this rate of advance has
been maintained, the total domestic exports hav-
ing a valuation approxlnrately of 12,200,000,000,
as compared with a fraction over |2.000,000.000
the previous year. It is also significant that
manufacl^l^ed and partly manufactured articles
continue to be the chief commodities forming
the volume of our augmented exports, the de-
mands of our own people for consumption requir-
ing that an increasing proportion of our abundant
agricultural product's be kept at home. In the
fiscal year 1011 the exports of -articles in the
various stage of manufacture, not including food-
stuffs partly or wholly manufactured, amotmted
approximately to 1907,500,000. In tlie fiscal year
1012 the total was nearly $1,022,000,000, a gain
of $114,000,000.

The Importance which our manufactures have
assumed in the commerce of the world In com-
petition with the manufactures of ot'her countries
agnln draws attention to the duty of this gov-
ernment to use Its utmost endeavors to securs
impartial treatment for American products in all
markets. Healthy commercial rivalry In interna-
tional intercourse Is best assured by the possession
of proper means for protecting and promoting
our foreign trade.

It Is natural that competitive countries should
view with some concern this steady expansion of
onr commerce. If In some instances the measures
taken by them to meet it are not entirely equi-
table, a remedy should be found. In former mes-
sages I have described the negotiations of the
department of state with foreign governments for
the adjustment of the maximum and minimum
tarlflf as provided In section 2 of the tariff law
of 1009. The advantages secured by the adjust-
ment of our trade relations under this law have
continued during the last .vear, and some addi-
tional cases of discriminatory treatment of which
we had reason to complain have been removed.
The department of state has for the first time
In the history of this country obtained substantial
most-favored-natlon treatment from all the coim-
trles of the world. There are. however, other
instances which, while apparently not coostltnt-

ing ondae discrimination in the sense of section
2. are nevertheless exceptions to the completle
equity of tariff treatment for American products
that the department of state conslsteotly has
sought to obtain for American commerce abroad.


These developments confirm the opinion con-
veyed to you in my annual message of 1911. that
while the maximum and minimum provision of the
tariff law of 1909 has been folly justified by the
success achieved In removing previously existing
undue discriminations agHlnst American products,
yet experience has shown that this feature of the
law should be amended in such way as to provide
a fnlly effective means of meeting the varying
degrees of discriminatory treatment of American
commerce in foreign countries still encountered,
as well as to protect against the Injurious treat-
ment on the part of foreign governments, through
either legislative or administrative measures, the
financial Interests abroad of American citixens
whose enterprises enlarge the maricet for American
com nKMli ties.

I cannot too strongly recommend to the congress
the passage of some such enabling measure as the
bill which was recommended by the secretary of
state 4n his letter of Dec. 13, 1911. The object of

he proposed legislation is, in brief, to enable the
executive to apply, as the case may reqnlre, to any
or all commodities, whether or not on the free

list, from a country which discriminates against
the United States, a graduated scale of duties np
to the maximum of 25 per cent ad valorem pro-
vided in the present law.

Flat tariffs are out of date. Nations no longer
accord equal tariff treatment to all other nations
irrespective of ihe treatment from them fecelved.
Such a flexible power at the command of the execu-
tive would serve to moderate any unfavorable tend-
encies on the part of those coontries from which
the importations into the United States are snb-
stantlally confined to articles on the free list as
well as of the countries which find a lucrative
market in the United States for their products un-
der existing customs rates. It Is very necessary
that the American government should be equipped
with weapons of negotiation adapted to modem
economic conditions. In order that we may at all
times be in a position to gain not only technically
Just but actually equitable treatment for our trade,
and also for American enterprise and vested inter-
eats abroad.

Afl Illustrating the commercial benefits to the
nation derived from the new diplomacy and its
effectiveness upon the material as well as the
more ideal side, it may be remarked that through
direct official efforts alone there have been ob-
tained in the course of thi« administration con-
tracts from foreign governments involvlnfr an
expenditure of $50^000.000 in the factories of
the United States. Consideration of this fact
and some reflection upon the necessary effects
<^ a scientific tariff system and a foreign service
alert and equipped to co-operate with the business
men of America carry the conviction that the
gratifying increase In the export trade of this
country Is, in substantial amount, doe to our
improved governmental methods of protecting and
stimulating it.

It Is germane to these obserrations to remark
that In the two years that have elapsed since
the successful negotiation of our new treaty with
Japan, which at the time seemed to present so
many practical difficulties, our export trade to
that country has increased at the rate of over
fl.000,000 a month. Our exports to Japan for
the year ended June 30. 1910, were $21,959,810.
while for the year ended June 30. 1912, the ex-
ports were $53,478,046. a net Increase In the
sale of American products of nearly l.'SO per cent.
Under the special agreement entered Into be-
tween the United States and Great Britain on
Aug. 18. 1910. for the arbitration of outstanding
pecuniary claims, a schedule of claims and the
terms of submission have been agreed upon by the
two governments, and together with the special
agreement were approved by the senate on July

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19. 1911. bat Id accordance with the terms of
the agreement they did not ko Into effect until
confirmed by the two Kovemments by an exchiinse
of notes, which was done on April 26 last.

Negotlatlona are still in proRress for a supple-
mental schedule of claims to be submitted to
arbitration imder this agreement, and meaowhlle
the necessary preparations for the arbitration of
ttie claims included in the first schedule have
been undertaken and are being carried on under
the authority of «n appropriation made for that
purpose at the last session of congress. It Is
anticipated that the two goyeraments will be
prepared to call upon the arbitration tribunal,
established under this agreement, to meet at
Washington early next year to proceed with this


The set adopted at the last session of jeongreM
to glTe effect to the fur seal conyentlon of July 7,
1911 between Great Britain, Japan. Russia and
the United States provided for the suspension of
ill land killing of seals on the Prlbiloff Islands
for a period of five years, and an objection has
now been presented to this provision by the other
parties In Interest, which raises the issue, as to
whether or not this prohibition of land killing is
Inconsistent w'th the spirit, if not the letter, of
the treaty stipulations.

The justification for ettabllshlnff this close sea-
son depends, under the terms of^ the convention,
upon how far. If at all. It Is necessary for pro-
tecting and preserving the American fur seal nord
and for Increasing its number. This is a question
requiring examination of the present condition of
the herd and the treatment which it needs in the
light of actual experience and scientific investiga-
tion. A careful examination of the subject Is now
being made, and this government will soon be in
possession of a considerable amount of new infor-
mation about "the American seal herd, which has
been secured during the last season and will be
of great value in determining this question; and if
it should appear that there is any uncertainty as
to tlie real necessity for imposing a close season
at this time I shall take an early opportunity to
address a special message to congress on this sub-
ject, in the belief that this g?Dvemment should
yield on this point rather than give the sllgh est
ground for the charge that we have been in any
way remiss in observing our treaty obligations.

On the 20th of July last an agreement was con-
cluded between the United States and Great Brit-
ain, adopting, with certain modifications, the rules
and method of procedure recommended in the
award rendered by the N<»th Atlantic coast fish-
eries arbitration tribtmal on Sept. 7, 1910, for the
settlement hereafter. In accordance with the prin-
ciples laid down in the award, of questions arising
with reference to the exercise of the American
fishing liberties -onder article 1 of the treatv of
Oct. 20, 1818, between the United States and Great
Britain. This agreement received the approval
of the senate on Aug. 1 and was formally ratified
by the two governments on Nov. 15 last. The rules
and a method of procedure embodied in the award
provided for determining by an impartial tribunal
the reasonableness of any new fisheiy regulations
on the treaty coasts of Newfoundland and Canada
before such regulations could be enforced agmlnst
American fishermen exercising their treaty liberties
on those coasts, and also for determining the de-
limitation of bays on such coasts more than ten
miles wide, in accordance with the definition
adopted by the tribunal of the meaning of the
word "bays" as used in the treaty.

In the subsequent negotiations Ix'tween the two
governments, undertaken for the purpose of giving
practical effect to these rules and methods of pro-
cedure. It was found that certain modifications
therein were desirable from the point of view of
both governments, and these negotiations have
finally resulted in the agreement above mentioned
by which the award recommendations as modified
by mutual consent of the two governments are
finally adopted and made effective, thus bringing
this cental old controversy to a final conclusion.

which is equally beneficial and satisfactory to both


In order to make possible the more effective
performance of the work necessary for the con-
finement in their present channel of the watera
of the lower Colorado river, and thus to protect
the people of the Imperial valley, as well as In
order to reach with the government of Mexloo
an understanding regarding the distribution of
the waters of the Colorado river, In which both
governments are much Interested, negotiations ar««
going forward with a view to the establishment
of a preliminary Colorado river commission, which
shall have the powers necessary to enable It to
do the needful work and with authority to study
the question of the equitable distribution of the
waters. There Is every reason I'o believe that an
understanding spon this point will be reached
and that an agreement will be signed in the near

In the Interest of the people and city of Ha
I^so this government has been assiduous In Its
efforts to bring to an early settlement the long
standing Charalzal dispute with Mexico. Much
has been accomplished, and, while the final solu-
tion of the dispute Is not? immediate, the favor-
able attitude lately assumed by the Mexican gov-
ernment encourages the hope that this trouble-
some question will be satisfactorily and definitely
settled at an early day.

,ij?.. pursuance of the convention of Aug. 23,
1906, signed at the third pan-American confer-
ence, held at Rio de Janeiro, the International
commission of Jurists met aif that capital during
the month of last June. At this meeting sixteen
American renuhllcs were represented. Including
the rmted States, and comprehensive plans for
rhe future work of the commission were adopted.
At the next meeting, fixed for June, 1914, com-
mittees alrendy appointed are Instructed to report
regarding topics assigned to them.


In my message on fon-Ign relations communi-
cated to the two houses of congress Dec. 7, 1911,
I called especial attention to the assembling of
the opium conference at The Hague, to the fact
ttiar that conference was to revltw all pertinent
municipal laws n> la ting to the oplam and allied
evils and cen'alnly all international rules re-
garding these evils, and to the fact that it
seemed to me most essential that the congrens
Rhotild take Immediate action on the antlnarcotic
logl.«!atIon before the congress, to which I had
previously called attention by a special message.

The interna tlonnl convention adopted by the
conference coti forms almost entirely to the prin-
ciples contained in the proposed antlnarcotic leg-
islation which has been before the last two con-
gresses. It was mo!»t imfortnnate that this gov-
ernment, having taken the Initiative in the in-
ternational action which eventuai'ed in the Im-
portant International opium convention, failed to
do its share in the greaiT work by neglecting to
pass the necessary legislation to correct the de-
plorable narcotic evil In the United States as
well as to redeem International pledges upon
which It entered by virtue of the above mentioned
convention. The congress at its present session
should enact Into law those bills now before it
which have been so carefully drawn np in col-
laboration between the department of state and
the other executive departments, and which have
behind them not only the moral sentiment of the
country but the practical support of all the legit-
imate trade Interests llkelv to be affected. SInco
the international convention was signed adher-
ence I'o it has been made by several ICuropean
states not represented at the conference at Tlie
Hague and also by seventeen Latin- American


The war between Italy and Turkey came to a
close In October last by the signature of a treatv
of peace, subsequently to which the Ottoman em'-
frl'it^m"^ii°T** sovereignty over Cyrenalca and
Trlpolltanla la favor of Italy. During the last

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Online LibraryKarl Georg WieselerThe Chicago daily news almanac and year book for .. → online text (page 92 of 147)