ed by an unwonted scarcity of seals at the usual haunts in the vicinity of the Pribilof Islands. The phenomenon is by some attributed to a southward deflection of the warm Japanese current, in which live the fish upon which the seals feed. Should this be the cause, and not some temporary climatic alteration, the location of the valuable sealing grounds may undergo a change.

BALTIMORE INCIDENT CLOSED.

The present quarter has witnessed the happy termination of an incident which at one time threatened to involve two nations in war. When Chili, on January 27 last, acceded to all the demands of the United States ultimatum of January 21, it will be remembered (p. 12) that the settlement of the indemnity claims based upon the Valparaiso outrage of October 16, 1891, was the only point left unadjusted. Chili offered to submit it to arbitration; but President Harrison expressed full confidence that the question might safely be left to the Executive branch of the Government, to be honorably and satisfactorily settled by the ordinary methods of diplomacy. No unusual pressure was brought to bear upon the Santiago Government; and the matter remained in abeyance until after the entrance into the Chilian Cabinet, in June last, of the present Minister of Foreign Affairs, Señor Isidoro Errazuriz. Having intimated to Minister Egan the willingness of Chili to reach a final settlement, Señor Errazuriz, on July 13, in answer to an inquiry from the American Minister as to what were his views on the subject, placed at the disposal of the United States authorities the sum of $75,000 in gold, to be distributed among the families of the victims in the affair of October 16. On July 17, Mr. Egan's cordial acceptance of this offer as a friendly and entirely satisfactory settlement, finally closed the unfortunate incident. Throughout the negotiations, the United States Minister was in thorough touch with the State Department at Washington; and the settlement of this indemnity question is Secretary Foster's first important

achievement since his elevation to the distinguished post he now occupies as Secretary of State.

CHILIAN CLAIMS SETTLED. As further evidence of the entire cordiality now existing between Chili and the United States, may be cited the treaty arrangements concluded on August 7, providing for an International Claims Commission to arbitrate upon the demands for indemnity to United States subjects whose property and commerce were injured before and during the last destructive war of Chili against Bolivia and Peru. These claims amount to many hundred thousandsof dollars, a few dating back as far as fifty years. An adjudication would no doubt have been sooner reached, had it not been for the recent upheavals consequent upon the political methods of the dictator Balmaceda. With the closing of the Baltimore incident, however, negotiations were resumed, with the result that a treaty was concluded as above stated. All claims are to be submitted to three Commissioners, one of whom shall be named by the President of the United States, and one by the President of Chili. These two are to select a third within three months after the exchange of ratifications, which must take place within six months after the date of the treaty; otherwise the third selection shall be made by the President of the Swiss Confederation. Within six months after exchange of ratifications, the Commissioners shall assemble in Washington to decide upon all matters affecting the said claims, which are to be dealt with individually. The decisions of the Commissioners shall be reached within six months from the day of their first assembling; and the opinion of any two of them shall be absolutely final. All sums of money granted shall be paid by one Government to the other within six months from the date of the final award.

THE SILVER CONFERENCE. The American people, as a whole, favor the concurrent use of both gold and silver in the settlement of exchanges by the commercial nations. of the world-but only under conditions

undergo a proportionate sacrifice in making their home remittances, as they must, on a gold basis. The Indian Currency Association, taking the matter up in earnest, proposes that the Indian mints be immediately closed to the free coinage of silver, aiming ultimately to demonetize the metal in India, and to secure the adoption of a gold standard. There is, however, great difference of opinion as to how far such a change is at present advisable or practicable. So far as the Government itself is concerned, no official action has yet been taken, save to suggest that England and the rest of the world should adopt a bimetallic standard fixed by international agreement.

The coming conference thus seems to offer theone practical remedy which can be applied with success. Its outcome will be fraught with immense issues, either in the way of solution or of indefinite postponement of the problem. So delicate are the questions of commercial interest involved, and so subtle the laws that obtain among the phenomena of money and exchange, that the Powers may possibly think it wisest not to lay so much as a finger upon them.

When the last number of Current History went to press, the nominations of the American delegates to the conference had not been lifted out of the region of conjecture. The definite announcements were made August 7. Senators William B. Allison, of Iowa, and John P. Jones, of Nevada, Representative James B. McCreary, ExGovernor of Kentucky, General Francis A. Walker, of Massachusetts, and Mr. H. W. Cannon, of New York, are to represent the United States. These nominations are an assurance to the public that the coinage question will receive adequate attention in all its various phases. Senator Allison's political life extends back over twentythree years, and includes distinguished service on the Senate Finance Committee, and as chairman of the Senate Committee on Appropriations. He is a bimetallist, favoring the coinage of silver only so far as practicable under proper safeguards. For twenty years, Senator Jones has served in the Sen

ate; and he is recognized as one of the ablest advocates of free silver coinage, having long been a prominent member of the Finance Committee. He was intimately connected with the drafting of the so-called Sherman Silver Act of July 14, 1890. Representative McCreary, now serving his fourth term in the House, has long been a leading Member of the House Committee on Foreign Affairs. During the recent silver debates, he voted for free coinage; and it was he who introduced the bill providing for the coming International Conference. Mr. Cannon, President of the Chase National Bank, of New York, was Comptroller of the Currency during President Arthur's administration, and has had broad financial experience. He is said to be a bimetallist, but opposed to free silver. General Walker, President of the Massachusetts Institute of Technology, was formerly Chief of the Bureau of Statistics of the Treasury Department, as well as Superintendent of the Census for a while during the ninth and tenth Censuses, and is a recognized expert authority on economic questions. He attended the International Monetary Conference held in Paris in 1878, and is said to be a bimetallist; but he does not favor the unrestricted coinage of silver under present conditions.

The choice of a place of meeting for the conference was long delayed in view of the quarantine regulations so generally established owing to the prevalence of cholera in Europe; but it has at last been arranged to have the conference meet in Brussels on November 22 next. Russia, whose acceptance of the invitation to attend had not been received at the close of the last quarter (p. 130), officially signified that acceptance toward the middle of July. So far as the number and importance of countries to be represented is concerned, the Silver Conference will thus leave nothing to be desired.

The question of the proper ratio between gold and silver, supposing an international agreement to be reached, has recently been discussed by a series of eminent writers in the North American Review, all of whom

agree that the ratio should not exceed 16 to 1, the present ratio in the United States, their consensus of opinion rather favoring the lower ratio of 151⁄2 to 1, the ratio in the Latin Union, in the Central and South American States, in Spain, Holland, and Russia. It is thought that a ratio, if accepted by Great Britain, the United States, Germany, and Mexico, would soon be universally acquiesced in. Should no agreement be reached, there is a growing opinion in the United States in favor of completely stopping the coinage of silver, and thus throwing upon other nations a proportion of the responsibility and risk.

THE CANAL TOLLS QUESTION.

The question of the equitable adjustment of tolls on Canadian and American canals, has of late exercised the press and diplomatic representatives of both countries, but fortunately has not at any time threatened a serious tension of feeling. With the abrogation, in 1866, of the Reciprocity Treaty of 1854, Canada's control of her own canals was freed from all international limitations; and she was at liberty to tax, or even to prohibit, American traffic along those waterways. As a matter of fact, however, the old reciprocal arrangement was observed in practice until 1871,when, by the Treaty of Washington, concluded on May 8 in that year, the arrangement was given official sanction. The 27th article of the treaty guarantees to the subjects of each country the use of the canals "on terms of equality" with the subjects of the other.

It is perfectly plain from the terms of the article, that neither country is authorized to exact from vessels of the other any more or less than she exacts from her own. The Americans claim, however, that Canada, in violation of the treaty article referred to, has long discriminated against the shipping interests of the United States by means of a rebate. A toll of twenty cents a ton is levied on all cargoes, Canadian or American, passing through the Welland Canal; but, when the cargo has passed through, if it is unloaded at a Canadian port, eighteen cents a ton is refunded to the shipper; so that,

practically, American vessels, very few of which carry cargoes to Canadian ports, are subjected to a tax ten times as great as that laid upon Canadian vessels. In this way, it is claimed, not only are American shippers put at a disadvantage, but the Welland and St. Lawrence Canals are used to promote the commercial interests of Canadian ports, such as Kingston and Montreal, at the expense of Oswego, Ogdensburg, and other American ports. The Canadians, on the other hand, claim that as the rebate is not restricted to Canadian vessels, it constitutes no viola

tion of the Washington Treaty, which guarantees "equality" of treatment.

From time to time, the question has been the subject of diplomatic negotiation. It was dealt with by Secretary Bayard in 1888, during the administration of President Cleveland; was raised again in 1891 by the United States Consul-General, who addressed a note to the Government at Ottawa; was referred to by the late Secretary Windom in his last Treasury report; and was again brought up by Secretary Blaine during the recent Reciprocity Conference in Washington. As no settlement resulted, the repeated protests from the Carriers' Associations and Boards of Trade of the cities of Milwaukee, Chicago, Detroit, Cleveland, Buffalo, Oswego, Ogdensburg, and other lake ports, finally induced the United States Government to take action. The result was the passage

of the Act of Congress approved July 26 last (p. 181), entitled "An Act to Enforce Reciprocal Commercial Relations between the United States and Canada, and for Other Purposes, whereby the President of the United States is empowered to suspend the free use of the Sault Ste. Marie Canal by vessels, Canadian or American, carrying passengers or cargoes to Canadian ports, and to levy a toll not exceeding $5.00 for each passenger, and $2.00 for each ton of freight so carried. On August 1, Secretary Foster informed the British Chargé d'Affaires at Washington, that President Harrison would be obliged to take the action authorized by Congress without delay, unless the Canadian Government should immediately remove the alleged discrimination in the matter of the toll rebate. On the 13th of August, Sir John Abbott being sick, the Dominion Cabinet assembled in Montreal (the first occasion of its assembling there for many years) to discuss the matter. It was decided, in view of the temporary character of the "order in council" regulating the tolls, and in view of the large contracts made by the grain shippers, not to interfere with the rebate at present, but to notify the United States Government that the existing system would be abolished at the close of the present season of navigation. Should the President of the United States in the meantime enforce the imposition of tolls as authorized by Congress, the Canadian Government distinctly intimated that its undertaking not to readopt the existing system after the present season, should not be binding. On August 20, President Harrison, disclaiming all responsibility for the difficulties standing in the way of an alteration of the Canadian tariff of tolls, issued his proclamation imposing, from and after September 1, 1892, until further notice, a toll of twenty cents a ton on all freight passing through the Sault Ste. Marie Canal in transit to any port of the Dominion of Canada, whether carried in vessels of the United States or of other nations. This "retaliatory" measure was unexpectedly moderate. Instead of imposing the extreme tolls authorized,

which would have been practically prohibitory, it will be noticed that the proclamation simply meets the Canadian toll with a like toll; and, as intimated by Secretary Foster in a note dated August 24, addressed to Mr. Herbert, the British Chargé d'Affaires at Washington, it was designed solely to establish a parity of conditions in the American and Canadian canals, with a view to future negotiations. Besides, it is to remain in force no longer than the discriminations complained of are maintained by the Canadian Government. Now that the season is almost over, its effect upon shipping interests will not be serious. Definite figures are not available; but careful estimates place the amount of freight likely to be affected, at 125,000 tons east-bound, and 40,000 tons westbound. It is rumored, but not yet confirmed, that the Canadian Government will recoup all shippers affected by the proclamation; and it may be expected, that ere the opening of another season, a conference of United States and Canadian representatives will result in an amicable arrangement of the whole matter.

THE MISIONES QUESTION. One of the strangest wars in history is recalled to us by President Harrison's acceptance, about September 15, of the task of adjudicating, as between Brazil and the Argentine Republic, the long unsettled Misiones boundary question. The region known as the Misiones, on the upper Parana River, was the scene of heroic efforts on the part of the missionary Jesuit Fathers for a hundred and fifty years after the Spanish Conquest. While the regions farther north witnessed the pitiless ravages of military conquerors, the overthrow of old empires, and the enslavement and extinction of native races, the Jesuit Fathers maintained an undisputed ascendancy in the region of the Parana. The natives were trained in the pursuit of agriculture and the rudiments of the arts of civilization, and were taught the lesson of the cross. But, within a generation following the expulsion of the Jesuits, the whole region, with its teeming population, had relapsed into barbar