§ 769]

ELECTION OF 1900

639

mental principles of our Declaration of Independence and that it must divert energy from our own problems.1

On the other hand, the Imperialists, or "Expansionists," insisted that the United States could no longer shirk responsibilities as a world power. The Filipinos, they said, were not fit for self-government; Americar sentiment would not tolerate returning them to Spain; and Dewey's conquest left America answerable not only for the Philippines themselves, but, more immediately, for European and American settlers and interests at Manila. These forces for expansion were reinforced, of course, by commercial greed and gross pride of power.

769. Imperialism was a leading issue in the campaign of 1900; but Mr. Bryan, once more the Democratic candidate, complicated the matter unhappily by forcing into the Democratic platform a declaration for the dying "16 to 1" cause. Again the reform forces were divided. Some radicals believed in "expansion," and others, fearing "imperialism," feared free silver more. Hanna, again the Republican manager, made skillful use of returned prosperity under Republican rule, appealing to workingmen with the campaign emblem of "the full dinner-pail." Mr. McKinley was reëlected, with Theodore Roosevelt as Vice President.

"Free Silver" passed out of politics after this campaign. In 1890 gold was discovered in Alaska, and soon that wild country was pouring a yellow flood into the mints of the world—as new mines in South Africa had begun to do a little earlier still. Between 1898 and 1904, three quarters of a billion of gold money was coined in the United

1 Congress refused to recognize the Filipinos as citizens of the United States, distinctly rejecting the plea that " the Constitution follows the flag." It even refused to include the islands within the customs boundary of the United States. Our sugar trust and other protected interests demanded that the tariff on Philippine sugar, tobacco, and some other products be continued. In the main, Congress complied. The islanders had expected a free American market as one of the compensations for the lack of independence, and they regarded this policy as gross injustice, savoring of Spanish methods. The Supreme Court, however, by a series of decisions - usually by a five-to-four vote-upheld the authority of Congress to rule and tax these dependencies at will, since they "belong to " but are not 66 'part of" the United States (§ 461).

States. The debtor class could no longer claim that the value of gold was appreciating.

770. Imperialism, too, is no longer a burning question. At first the Philippines were ruled by a Governor-general and a Commission. These American officials gradually introduced a limited local self-government for the more civilized districts, and in 1907 a small electorate of natives were permitted by Congress to elect a lower House of a Philippine Assembly with slight legislative power. In 1913 President Wilson greatly extended the appointment of natives to responsible positions; and the Philippine Government bill of 1916 placed the islands very nearly in the position of a "Territory." The Governor and Vice-Governor are still to be Americans; all other officials may be Filipinos; the electorate was extended some four-fold, and the upper House of the Assembly was made elective like the lower; and the Assembly was given control of all internal legislation, subject to veto by the President of the United States. The absurd tariff discriminations (note above) have been practically removed.

771. The first fruit of the new place of America as a World Power was the preservation of China. England had long held certain ports in that country, and within a few years Germany, France, and Russia had begun rapidly to seize province after province.1 In 1899 McKinley's Secretary of State, John Hay,' sent a note to all powers interested in China urging them to agree that no power should shut out the citizens of other countries from its "sphere of influence" there. This " 'open door" policy, though disliked by Russia and Germany, already had the support of England, and it was favored, of course, by the small commercial countries. The forceful statement of the American position just at that time had much to do with preventing the threatened dismemberment of China. After the Boxer Rising, some of the large European powers seemed again about to take up their old policy of seizing "territorial in

1 Modern Progress, pp. 554-556, or Modern World, §§ 889–891.

2 The greatest American minister of foreign affairs, - unless possibly John Quincy Adams deserves to rank with him. He had served many years before as Lincoln's private secretary, and had afterward held important diplomatic positions. He was one of the joint authors of the great Life of Abraham Lincoln, and had become known also as poet and novelist.

8 Modern Progress, p. 556, or Modern World, § 891.

§ 772]

ROOSEVELT AND JOHN HAY

641

demnities." A strong protest from Secretary Hay induced them, however, to accept money indemnities instead. The indemnity paid by China to the United States, it should be noted, proved much too large; and, after all just claimants had been paid, the balance was honorably returned.

In this matter of the "Open Door," the immediate incentive of American policy was the wish to prevent the exclusion of American trade from rich Oriental provinces; but that policy fell in happily with the interests of civilization and humanity. The main opposition to the American policy—in ways both secret and open came from Kaiser Wilhelm of Germany. In a moment of justifiable irritation at the German government's methods, Hay exclaimed, "I had almost rather be the dupe of China than the chum of the Kaiser."

772. Theodore Roosevelt was the next force in our foreign policy. While Hay was still engaged in his correspondence with European powers regarding China, an anarchist murdered William McKinley, and that suave, gentle, cautious President was succeeded by the impetuous, aggressive, positive Roosevelt (§ 769). Hay, however, remained Secretary of State. In 1904, at the opening of the war in the Orient between Russia and Japan, Hay obtained pledges from both countries to respect the neutrality of China, and the next year Roosevelt intervened actively to bring about peace.

The main foreign problems of the Roosevelt administration had to do with Central America. The Latin states of America still need capital for their development, and sometimes they invite it by granting foreigners valuable franchises and "concessions." Sometimes, too, a corrupt government sells such "concessions" for far less than their value-to fill its private pockets. All such grants, corrupt or legitimate, are apt to be resented by the native population, and are sometimes revoked by succeeding governments. In this, and in many other ways, foreigners acquire claims against these countries which the states are unwilling or unable to pay. The United States has long taken the ground that the use of national force to recover

such claims for a private citizen is improper. England has usually adhered to the like policy. But other powerful nations have commonly shown a readiness to collect such private debts for their citizens by force or threats of force.

In 1902 ten European countries had claims, aggregating some $38,000,000, against Venezuela. Castro, President of the Republic, defied the claimants. Finally Germany and England began a blockade of Venezuelan ports. Through the efforts of Roosevelt and Hay, the blockade was soon raised, and the claims submitted to arbitration.1 This process revealed gross padding and unreasonableness in the claim; and the commission cut the amounts down to less than eight millions. Then, under pressure from this country, Venezuela made provision to pay this amount.

773. This last event has been said to create a "New Monroe Doctrine." Europeans had long expressed the opinion that if the Monroe Doctrine made us the protector of semi-anarchic communities against just claims, then we must ourselves see that such debts were paid. Roosevelt seemed to assent to this doctrine. He took the ground, in this dispute, that if "chronic wrong-doing" or "impotence" in any American country called for intervention, then it would become necessary for the United States to "exercise an international police power." In 1904 he went even further, when he stepped in to obviate European intervention in bankrupt San Domingo, by virtually making the United States the "receiver" for that country in behalf of its creditors.2

This policy has been severely criticized on the ground that it encourages foreign capitalists to engage in the wildest financial schemes in South America, guaranteeing them their claim through United States intervention. Another solution of the whole matter, much in favor among

1 Thayer's Life of John Hay reveals the startling fact that Roosevelt kept Germany from seizing Venezuelan territory by threat of instant war (II, 284-288). Roosevelt himself afterward confirmed this statement.

2 A recent application of this policy is the occupation of Hayti in 1915 by United States marines - which, with its complicated and unhappy results, is a fit topic for a special report.

§ 774]

THE PANAMA CANAL

643

the weaker nations themselves, would be to leave all such claims against a government to arbitration by the Hague Tribunal, and to let any capitalist take the risk, if he seeks investments in countries which would not regard such arbitration.

774. More important still was the movement for the Panama Canal. In 1881 a French Panama Canal Company began work at the Isthmus, but eight years later the project came to an ignoble end in financial scandal, with little to show for the $260,000,000 expenditure. Secretary Blaine (§ 758) was then earnestly desirous of making the canal the concern of the

From a

A GUN FOR THE PANAMA FORTIFICATIONS, in the course of transportation from the factory. One of the world's biggest 16-inch guns. photograph.

United States government; but the Clayton-Bulwer Treaty (§ 705) prevented.

The Spanish War brought the matter forcibly to public attention again, especially when the battleship Oregon, much needed to reinforce the American Atlantic squadron, had to circle the Horn to get to Cuban waters. The American people began to demand an interoceanic canal under American control;