RATES OF ADVERTISING! One Square, one inch, one week... 1 00 One Square, one inch, one month- 8 00 One Square, one inch, 3 months...- 6 00 One Square, one inch, one year ..... 10 ( 0 Two Squares, one year...... 16 00 Quarter Column, one year 80 00 Half Column, one year. 60 00 One Column, one year 100 00 Legal advertisements ten cents per line each insertion. We do line Job Printing of every de scription at reasonable rates, but It's cash on delivery. Published every Wednesday by l. E. WENK. Offloe in Bmearbaugh & Wenk Building, ELM 8TRKKT, TIONB8TA, FA.. Tenas, 1.00 A Year, Htrlctly In Altuw. Entered as seoond-olass matter at the post-olnoe at Tionettla. So subscription received for a ahorfv period than three months. Correspondence solicited, but no notice will be taken of anonymous communica tions. Always give your name. Fore EPTJBL JL V O VOL. XLV. NO. 41. TIONESTA , PA., DNESDAY, DECEMBER 4, 1912. $1.00 PER ANNUM. THE FOREST REPUBLICAN. R THAW BOROUGH OFFICERS. Burgess, J. O. Dunn. Justices of the Peace O. A. Randall, O. W. Clark. Oauncumtn.J. W, Landers, J. T. Dale, O, H. Kohinson, Win, Smearbaugh, K. J. Hopkins, O. P. Watson, A. U. Kelly. Oonntable L. I,. Zuver. CbHeotor W. H. Hood. School Directors W. C. Iinel, J. K. Clark, 8. M. Henry, Q. Jainieson, D. II. Blum. FOREST COUNTY OFFICER. S. Member of Congress P. M. Speer. Member of Senate J. IC. P. Hail. Assembly W. J. Campbell. President Judge W. 1). Hinckley. Associate Judges Samuel Aul, Joseph M. Morgan. Prothonotary, Register A Beeorder, to. -S. R. Maxwell. Sheriff Wm, U. Hood. Treasurer W. H. Brar.ee. ' Commissioners Wm. H. Harrison, J. C. Boowden, II. II. MoClellan. I District Attorney M. A. Oarrlnger. Jury Commissioners J . B. Eden, A.M. Moore, Coroner Vr. M. C Kerr. . Oouvtv Auditors George H. Warden, A. C. Gregg and 8. V. (Shields. County Purveyor Roy S. Braden. . County Superintendent J . O. Carson. Kecalar Terns ef Caart. Fourth Monday of February. Third Monday of May. Fourth Monday of September. Third Monday of November. Regular Meetings of County Commis sioners 1st and 3d Tuesdays of month. Charca ana Mabaaia Heheel. Presbyterian Sabbath School at 9:46 a, m. t M. E. Sabbath School at 10:00 a. m. Preaching in M. E.. Church every Sab bath evening by Rev. W.H. Burton. Preaching in the F. M. Church every Sabbath evening at the usual hour. Rev. U. A. Oarrett, Pastor. Preaching in the Presbyterian church every Sabbath at 11:00 a. in. and 7:30 p. m. Rev. H. A. Bailey, Pastor. The regular meetings of the W. C. T. TJ. are held at the headquarters on the second and fourth Tuesdays of each month. BUSINESS DIRECTORY. TI . N EST A LO DU E, No. 869, T. O. O. F. Meets every Tuesday evenirff, in Odd Fellows' Hall, Partridge building. GAPT. GEORQK STOW POST, No. 274 U. A. K. Meets 1st Tuesday after noon of each month at 3 o'clock. CAPT. GEORGE STOW CORPS, No. 137, W. R. C, meets first and third Wednesday evening of each month. F. RITCHEY, ATTORN EY-AT-LAW, Tlonesta, Pa. MA. CARRINGER, Attorney and- -ouosellor-at-Law. Offloa over Fa, at County National Bank Building, TIONESTA, PA. CURTIS M. SHAWKEY, ATTORNEY-AT-tiAW, - . Warren, Pa. Practice tn Forest Co. AO BROWN, ATTORN EY-AT -LA W. Offloe in Arner Building, Cor. Elm and Bridge St.,. Tlonesta, Pa. FRANK 8. HUNTER, D. D. S. Rooms over Citizens Nat. Rank, TIONESTA, PA. DR. F. J. BOVARD, Physician A Surgeon, TIONESTA, PA. Eyes Tested and Glasses Fitted. D R. J. B. SIGGINS. Physician and Surgeon, OIL CITY, PA, DR. M. W. EASTON, OSTEOPATHIC PHYSICIAN, of Oil City, Pa will visit Tionests every Wednesday. See him at the Central House. Setting bones and treatment of nervous aod chronic diseases a specialty. Oreateat success in all kluds-of cbroulo diseases. HOTEL WEAVER, J. B. PIERCE, Proprietor. Modern and up-to-date in all its ap pointments. Every convenience aud ooui fort provided for the traveliug public CENTRAL HOUSE, R. A. FU LTON, Proprietor. Tlonseta, Pa. This is the most centrally located hotel in the place,. and has all the modern improvements. No pains will be spared to make it a ploasant stopping place for the traveling public. pHIL. EMERT FANCY BOOT 4 SHOEMAKER. Shop over R. L. Haslet's grocery store on Elm street. Is prepared to do all Kinds of custom work from the finest to the coarsest and guarantees his work to give perfect satisfaction. Prompt atten tion given to mending, aud prices rea sonable. JAMES HASLET, GENERAL MERCHANT. Furniture Dealer, AND UNDERTAKER. TIONESTA. PENN No Carbon Plenty of Power r Save trouble and expense. They re true Quality, not crude, compressed gas. rnrr tin naM luwtii n aKn.it nil WAVERLY OIL WORKS CO. Pittilurgn, Pa. LAMP OILS LUBRICANTS CHICHESTER S PILLS W. TDK lHAMONIt HUAM. A 0 l.ftcllcnt Ank your DrucrUt f'r i hUrbeA'ttr' Hiaitionii It rand . fills in Kt-d ftnd Void metallic1 trs, tealH with lllue KIMioiu Take no other. Buy of your II r 11 IT iaf. Ask- intl M .-IIKM.T lMAMONI HltANll IMMX for lift yet known M Best, Salest.Alw.ys KellaM SOLD BY DRUGGISTS EVERYWHERE TAFT SENDS IN FINAL MESSAGE President Sf arts With Discussion ot Foreign Relations. WORK DONE BY DIPLOMATS, Recognitor! of Merit System Has Been Beneficial Suggestions Regarding Changes In the Tariff Laws Designed to Aid Commerce Turkish War and Troubles In China. To tlio Senate and House of Repre sentatives: TIiu foreign relntloua of the United States actually iinil t Mit in My affect the stiite of tlu Union to n degree not widely realized mill hardly surpassed by nny other factor In the welfare of the whole natiqii. The position of tlio United Stntes in the inonil, Intellec tual and material relations of the fam ily of nations should lie o matter of vital Interest to every patriotic citi zen. The national prosperity anil power impose upon us duties which we cannot shirk if we are to he true to our Ideals. The tremendous growth of the ex port trade of the United States lias already made that trade a very real factor In the Industrial and commer cial prosperity of the country. With the development of our industries the foreign commerce of the United States must rapidly become a still more essential factor in Its economic welfare. The relations of the United States with all foreign powers remain upon a sound hasls of peace, harmony aud friendship. A greater insistence upon Justice to American citizens or inter ests wherever It may have been denied and a stronger emphasis of the need of mutuality in commercial and other re rations have only served to strengthen our friendship with foreign countries by placing those friendships upon a firm foundation of realities as well ns nspiratlniis Reorganization of State Department. At the beginning of the present ad ministration (he United States, having fully entered upon Its position ns a world power, with the responsibilities thrust upon it by the results of the Spanish-American war and already en gaged in laying the groundwork of a vast foreign trade upon which it should one day become more and more dependent, found itself without the machinery for giving thorough atten tion to and taking effective action upon n mass of Intricate business vi tal to American Interests in every coun try in the world. The department of state was nn Archaic and inadequate machine, lack ing most of the attributes of the for eign ollice of nny great modem power. With nn appropriation made upon my recommendation by the congress on Aug. 5. 1 ill 11), the department of state was completely reorganized. There were created divisions of Latin-American affairs and of far eastern, near pastern and western Kuropean affairs. The law otllces of the department were greatly strengthened. There were added foreign trade advisers to co-operate with the diplomatic and consular bureaus and the politico-geographical divisions in the Innumerable matters where commercial diplomacy or con sular work calls for such special knowledge. The same oflieers, together with the rest of the new organization, are able nt nil times to give to Ameri can c itizens neeurnte Information as to conditions in foreign countries with which they hnve business and likewise to co-operate more effectively with the congress and also with the other ex ecutive departments. Merit System In Consular and Diplo matic Corps. Expert knowledge and professional training must evidently be the essence of this reorganization. Without a train ed foreign service there would not bo men available for the work in the reor ganized department of state. President Cleveland had taken the first step to ward Introducing the merit system in the foreign service. That had been fol lowed by the application of the merit principle, with excellent results to the entire consular branch. Almost noth ing, however, hnd been done In this di rection with regard to the diplomatic service. In this nge of commercial di plomacy It was evidently of the first importance to train nn adequate per sonnel In that branch of the service. Therefore, on Nov. 20, 11)00, by an executive order I placed the diplomatic service up to the grade of secretary of embassy, Inclusive, upon exactly the tame strict nonpartisan basis of the merit system, rigid examination for ap pointment and promotion only for effi ciency, as hnd been maintained with out exception In the consular service. Merit and Nonpartisan Character of Appointments. Mow faithful to the merit system and how nonpartisan has been the con duct of the diplomatic and consular services in the last four years may be Judged from the following: Three am bassadors now serving hold their pres ent rank at the beginning of my ad ministration. Of the ten ambassadors whom I have appointed five were by promotion from the rank of minister. Nine ministers now serving held their present rank at the beginning of the administration. Of the thirty ministers whom I bave appointed, eleven were promoted from the lower grades of the foreign service or from the department of state. Of the nineteen missions in I.nllii America, where our relations are close i mil our Interest Is great, fifteen chiefs of mission are service men, three having entered the service during this administration. The thirty-seven secretaries of em bassy or legation who have received their initial Appointments after passing successfully the required examination were chosen for ascertained fitness, without regard to political nlllllatlons, A dearth of candidates from southern aud western states has alone made It Impossllifeahus far completely to equal ize all the states' representations in the foreign service. In the effort to equalize the representation of the va rious stales In the consular service 1 have made sixteen of the twenty-nine new appointments as consul which have occurred during my administra tion from the southern states. This Is V per cent. Every other consular op pnlutiuent made, including the promo tion of eleven young men from the con sular nssist'int mid student interpreter corps, has been by promotion or trans fer, based solely upon elllclency shown In the service. Larger Provision For Embassies and Legations Recommended. In connection with legislation for the amelioration of the foreign service, I wish to Invite attention to the advisa bility of placing the salary appropria tions upon a better basis. I believe that the best results would be obtained by a modern te scale of salaries, with adequate funds for the expenses of proper representation, based in each case upon the scale and cost of living nt each post, controlled by a system of accounting and under the general di rection of the department of state. In line with the object which 1 hare sought of placing our foreign service on a basis of permanency, I hnve at various limes advocated provision by congress for the acquisition of govern ment owned buildings for the residence and otllces of our diplomatic olllcers, so ns to place them more nearly on nn equality with similar olllcers of other nations mid to do away with the dis crimination which otherwise must nec essarily lie made in some cases In favor of men having large private fortunes. Diplomacy a Handmaid of Commercial Intercourse and Peace. The diplomacy of the present ad ministration has sought to respond to modern Ideas of commercial inter course. This policy has been charac terized ns substituting dollars for bul lets. It is one that appeals alike to Idealistic humanitarian sentiments, to the dictates of sound policy mid strat egy and . to legitimate commercial aims. It is an effort frankly directed to the Increase of American trade upon the axiomatic principle that the gov ernment of the United States shall ex tend all proper support to every legiti mate and beneficial American enter prise abroad. How great have been the results of this diplomacy, coupled with the maximum and minimum pro vision of the tariff law, will be seen by some consideration of the wonder ful Increase In the export trade of the United Stales Because modern di plomacy Is commercial there lias been a disposition in some quarters to nt ttibute to It none but materialistic aims. How strikingly erroneous Is such nn impression may be seeti from a study of the results by which the diplomacy of the United Stntes can be Judged. Successful Efforts la Promotion of Peace, In the field of work toward the Ideals of peace this government negotiated, but to my regret was unable to con summate, two arbitration treaties which set the highest mark of the aspiration of nations toward the sub stitution of arbitration and reason for war in the settlement of International disputes. Through the efforts of American diplomacy several wars hnve been prevented or ended. I re fer to the successful tripartite media tion of the Argentine Republic, Bra zil, and the United States between I'eru and Ecuador, the bringing of the boundary dispute between Panama and Costa Hlcn to peaceful arbitra tion; the staying of warlike prepara tions when Haiti and the Dominican Republic were on the verge of hostil ities; the stopping of a war in Nicara gua; the halting of internecine strife In Honduras. The government of the United States was thanked for Its inlluence toward the restoration of amicable re lations between the Argentine Republic and liolivia. The diplomacy of the United States is active In seeking to assuage the remaining ill feeling be tween this country and the republic of Colombia. In the recent civil war in China the United Stntes successfully Joined with the other interested powers In urging nn early cessation of hostili ties. An agreement has been reached lietween the governments of Chile mid Peru whereby the celebrated Tacna Arlca dispute, which has so long em bittered International relations on the west coast of South America, has nt last been adjusted. Simultaneously came the news that the boundary dis pute between I'eru and Ecuador had entered upon a stage of amicable set tlement China. In China the policy of encouraging financial investment to enable that country to help Itself has had the result of giving new life und practical appli cation to the open door policy. The consistent purpose of the present ad ministration has been to encourage the use of American capital In the develop ment of China by the promotion of those essential reforms to which China Is pledged by treaties with the United States and other powers. The hypothecation to foreign bankers tn connection with certain Industrial enterprises, such as the Hukuang rail way , of the national revenues upon which these reforms depended, led the department of state early In the admin istration to demand for American i lll zens participation in such enterprises. In order thut (he United Stales might hnve equal rights and nn equal voice in all questions pertaining to the disposi tion of the public revenues concerned The same policy of promoting Inter national accord among the powers hav ing similar treaty rlghts'us oursulves In the matters of reform, which could not be put into practical effect without the common consent of all, was likewise adopted In the case of the loan desired by China for the reform of Its cur rency. The principle of International co-operation In matters of common In terest upon which our policy had al ready been based In nil of the above In Jtnnces has admittedly been a great fuel or In that concert of the powers which has been so happily conspicuous during the perilous period of transition through which (he great Chinese nation has been passing Central America Needs Our Help In Debt Adjustment. In Central America the aim has been to help such countries ns Nicaragua and Honduras to help themselves. They are the Immediate beneficiaries. The national benefit to the United States is twofold, l-'lrst. It Is obvious that the Monroe do'-trlne is more vital In the neighborhood of the Panama canal and the zone of the Caribbean than any where else There, too. the inainle nancp of that doctrine falls mort heav ily upon the United Slates. It Is there fore essential that the countries within that sphere shall be removed from the Jeopardy Involved by heavy foreign debt and chaotic nional finances and from the ever priffnt danger of Inter national complications due-to disorder nt home. ' Hence the United States Ns been glad to encourage and support Ameri can bankers who were willing to lend a helping hand to the financial re hnbllitatlon of such countries because this financial rehabilitation and the protection of their custom houses from being the prey of would be dictators would remove at one stroke Hie .men ace of foreign creditors and the men ace of revolutionary disorder. I wisli In call your espeilnl attention to the recoil occurrences In Nicaragua, for I believe the terrible eents re corded there during the revolution of the past slimmer the useless loss of life, (he devastation of property, the bombardment of defenseless cities, the killing and wounding of women and children, the torturing of noncomhut nuts to exact contributions aud the suffering of thousands of human be tngs might have been averted had the department of state, through approval of the loan eonveutloii by the senate, been permitted to carry out Its now well developed policy of one mraging the extending of financial aid to weak Central American states with the pri mary objects of a voiding Just Biieh revolutions by assisting those repub lics to rehabilitate their finances, to establish their currency on n stable basis, to remove the custom houses from the danger of revolutions by nr ranging for their secure administra tion, and to establish reliable banks. I wish to congratulate the olllcers and men of the United States 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 mnrlnes nnd bluejackets. Since the re establishment of peace and order elec tions have been held amid conditions of quiet nnd tranquillity. Nearly all the American marines have now been withdrawn. Our Mexican Policy, For two years revolution and counter revolution have distraught the neigh boring republic of Mexico. Brigandage has involved a great deal of depreda tion upon foreign Interests. There nave constantly recurred questions of ex treme delicacy. On several occasions very dilllcult situations have arisen on our frontier. Throughout this trying period the policy of the United States has been one of patient noninterven tion, steadfast recognition of constitut ed authority in the neighboring na tion and the exertion of every effort to care for American Interests. I pro foundly hope that the Mexican nation may soon resume the path of order, prosperity nnd progress.. To that na tion In Its sore troubles the sympa thetic friendship of the United States has been demonstrated to a high de gree. There were In Mexico nt the begin ning of the revolution some 30,000 or 40.1 KM) American citizens engaged In enterprises contributing great I; to the prosperity of that republic nnd nlso benefiting the Important trade between the two countries. The Investments of American capital In Mexico has been estimated nt $1,0C0,000.0(M). The respon sibility of endeavoring to safeguard those Interests and the dangers Insep arable f rii in propinquity to so turbulent a situation have been great, but I am happy to have been able to adhere to the policy above outlined a policy which I hope may soon be justified by the complete success of the Mexican people In regaining the blessings of peace and good order. Agricultural Credits. A most important work accomplished In the past year by the American dip lomntlc officers in Europe Is the inves tigation of the agricultural credit sys tern in the European countries. Both as n means to afford relief to the con sinners of this country through n more thorough development of agricultural resources and us a menus of more sulll ciently maintaining the agricultural population, the project to establish credit facilities for the farmers is a concern of vital Importance to this na tion. No evldonee of prosperity among well established farmers should blind us to the fact that lack of capital is prevent ing a development of the nation's agri cultural resources and nn adequate in crease of the land under cultivation; that agricultural production is fast full ing behind the increase in population and that. In fact, although these well established farmers are maintained in Increasing prosperity because of the natural increase In population, we are not developing the Industry of agricul ture. Advantage of Maximum and Minimum Tariff Provision, Tlie importance which our manufac tures have assumed in the commerce of the world In competition with the manufactures of other countries again draws attention to the duty of this government to use Its utmost endenv nrn tn secure lintmrthit treatment for American products in nil markets'. Healthy commercial rivalry In interna tional intercourse Is best irnired I. the possession of -proper nrenns protecting nnd promoting our foRign trade. It Is natural that competitive countries should view with some cou 8. - cern this steady expansion of our coy; merce. If In some Instances the mens- ures taken by them to meet If nre not entirely eqnltablea .remedy, should be found. In former messages I liye described the negotiations of the Aypartment of state with foreign goverlffients for the adjustment of the maximum nnd mini mum tariff us provided In sectiou 2 of the tariff law of 1!I0!I. The advantnges secured by the adjustment of our trade relations under this law have contin ued during the last year, and some ad ditional cases of discriminatory treat ment of which we had reason to com plain have been removed. The depart ment of state has for the first time in the history of this country obtained substantial most-fuvored-nutlon treat ment from all the countries of the world. There are, however, other Instances which, while. apparently not constitut ing undue discrimination a the sense of section 2, nre nevertheless excep tions to the complete equity of tariff treatment for American products that the department of state consistently has sought, to obtain .for American commerce abroad. Necessity For Supplementary Legisla tion, These developments confirm the opin ion conveyed to you In my annual mes sage of 1P11. that while the maximum nnd minimum provision of the tariff law of l'JO'.l has-been fully justified by the success achieved In removing pre viously existing undue discriminations against American products, yet experi ence has shown that this feature of the law should be amended in such way as to provide a fully effective means of meeting the varying degrees of discriminatory treatment of Ameri can commerce in foreign countries still encountered, ns well as to protect against Injurious treatment on the part of foreign governments through either legislative or administrative measures the financial Interests abroad of Ameri can citizens whoso enterprises enlarge the market for American commodities. 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 in his loiter of Dec. 13. 1!)11. TJie ob ject of the proposed legislation Is, In brief, to enable the executive to nppv, ns the case may require, to any or all 'Vepminodlllcs. whether or not on the JIst from a country which dlscrim liiaf .against the United States, a gradated scale of duties up to the maxmm of 2u per cent ad valorem proved In the present Inv. ' . Flat tariffs nre out of duto. Nations no longer ncord equal tariff treatment to nil other nations irrespective of the treatment from them received. Such a flexible power nt the command of the executive would serve to moderate nny unfavorable tendencies on the part of those countries from which the impor tations nito the United States nre sub stantially confined to articles on the free list ns well as of the countries which find n lucrative market In the United States for their products under existing custom rates. It Is very neues sary that the Amerlcnn government should be equipped with weapons of negotiation adopted to modern econom ic conditions In order that we may nt all times be In n position to gain not only technically Just but actually equit able treatment for our trade and also for American enterprises nnd vested In terests abroad. Business Secured to Our Country by Direct Official Effort. As Illustrating the commercial bene fits to the nation derived from the new diplomacy and its effectiveness upon the material us well as the more Ideal side, It may be remarked that through direct olllcial efforts alone there have been obtained In thj course of this administration' Contracts from foreign governments Involving an expenditure of .$.-(1,1)11(1.(1110 in the factories of the Ujilted States. It Is germane'to these observations to remark that In the two years that have elapsed Bluer the successful negotia tion of our new treaty with Japan, whlcli at the time seemed to present so many practical dllllculties, our export trade to that country has Increased at the rale of over $1,000.01)0 a month. Our exports to Japan for the year end ed June :io. lino, were $'21,!).',!(."10, While for the year ended June ISO, 11)12, the exports were WIS, -178,0 Id, n net in crease is? the sale of American prod ucts of nearly l.M) per cent. The net adopted .at the last session of congress lo give effect to the fur seal cuuventlon of July 7. 11)11, between Urent Britain, Japan, Russia and the United States provided for the sus pension of all land killing of seals on the Prlbllof Islands for a period of five years, and nn objection has now been presented to this provision by the other parties In Interest, which raises the Issue ns to whether or not this prohibition of land killing Is Inconsist ent with the spirit If not the letter of thr treaty stipulations. The justifica tion for establishing Ibis close season depends, under the terms of the con vention, upon how far if nt all It is accessary for protecting nnd preserv ing the American fur seal herd and for Increasing Its number. This is a ques tion requiring examination of the pres ent condition of the herd nnd the treat ment which It needs In the light of actual experience and scientific Inves tigation. Final Settlement of North Atlantio . Fisheries Dispute. On the 20th of July last an agree ment was concluded between the Unit ed States and Great Britain adopting, with certain modifications, the rules ti nd method of procedure recommend ed in the award rendered by the North Atlantic cmst fisheries arbitration trl bunirl on Sept. 7. 1010. for the settle- jF'iit hereafter, lu accordance with fiie principles laid Jhwn In the award, of (Motions arising with reference to theMTclse of the.-Amerlcnn fishing liberties iindar Article I of tlws treaty of Oct. 20, 1818, between the United Stales und Oreat Britain. This agree ment received the approval of the isen ufe on Aug. 1 and was formally rati fied by the two governments on Nov. 15 last. Opium Conference Unfortunate Fail ure of Our Government. In my message on foreign relations communicated to the two houses of congress lie?. 7, 1911, I called special attention to the assembling of the opium conference nt The Hague, to the fuct that that conference was to review ull pertinent muncipnl laws relating to the opium nnd allied evils and certain ly ull international rules regarding these evils, nnd to the fact that It seemed to me most essential that the congress should take Immediate action on the anti-narcotic legislation before the con gress, to which I had previously culled attention by n special message. The congress) nt Us present session should enact Into law those bills now before it which have been so carefully drawn tip In collaboration between the department of state nnd the other ex ecutive departments and which hnve behind them not only the moral senti ment .ttf the country, but the practical support of nil the legltlmute trade in terests likely to be affected. Since the International convention was signed adherence to It has been made by sev eral European stntes not represented at the conference of The Hague und also by seventeen Latin-American re publics. Europe an tie Near East. The war between Italy and Turkey came to a close In October last by the signature of a treaty of peace, subse quently to which the Ottoman empire renounced sovereignty oK-r Cyrennlca and Tripolitnuin In favor of Italy. I Hir ing the past year the near east has un fortunately been the theater of con stant hostilities. Almost simultaneous ly with the conclusion of peace be tween Italy nnd Turkey and their nr rlval nt nu adjustment of the complex questions nt Issue between them, wur broke out between Turkey on the one hand and Bulgaria, (J recce. Montene gro and Servlu on the other. Vn the exercise of my duty fti the letter 1 have dispatched to Turkish waters n special service squadron, con sisting of two armored cruisers, in or der that this government may If need be bear Its part in such measures ns It may be necessary for the Interested na tions to adopt for the safeguarding of foreign lives and property in the Otto man empire in the event that a danger ous situation should develop. Liberia. As n result of the efforts of this gov ernment to place the government of LiheriA in position to pay its outstand ing Indebtedness nnd to maintain a stable and efficient government, nego tiations for a loan of $1,700,000 have been successfully concluded, nnd it is anticipated that the payment of the old loan nnd the issuance of the bonds of the 1012 loan for the rehabilitation of the finances of Liberia will follow at nn early date, when the new receiver ship will go Into active operation. The new receivership will consist of a gen eral receiver of customs designated by the government of tlio United States and three receivers of customs desig nated by the governments of Germany. France nnd Great Britain, which coun tries have commercial Interests in the republic of Liberia, s The Far East. The political disturbances In China In t lie nutiitfiu nnd winter of 11)11-12 resulted In the abdication of the Man chu rulers on Feb. 12, followed by the formation of a provisional republican government empowered to conduct the affairs of the nation until a permanent government might be regularly estab lished. The natural sympathy of the Amerlcnn people witli the assumption of republican principles by the Chinese people was appropriately expressed In a concurrent resolution of congress on April 17. 1!)12. A constituent assembly, composed of representatives duly chosen by the people of China In the elections that are now being held, has been called to meet In January next to adopt n H'f.nai..'iit c.'s'.l'utlon and orc'iid'.u the government of the nascent repub lic. iHirlug the format IvoconstPutio.ail stage and pending definite in Hon hy the assembly, as expressive of the popular will, and the hoped for estab lishment of a stable republican form cf gi'vcrnintut caybli ullilliui; IU international obligations, the United Stntes Is, according to precedent, main taining full nnd friendly de facto re lations with the provisional govern ment The new condition of affairs thus created has presented many serious nnd complicated problems, both of In ternal rehubtlitntiou and of Interna tional relations, whose solution it was realized would necessarily require much time and patience. From the beginning of the upheaval Inst autumn It was felt by the United States, In common with the other powers having large Interests In China, that Inde pendent action by the foreign govern ments In their own Individual Inter ests would add further confusion to a situation already complicated. A pol icy of International co-operation was accordingly adopted In nn understand ing, reached early In the disturbances, to act together for the protection of the lives aud property of foreigners if menaced, to maintain nn attitude of strict Impartiality ns between the con tending factions and to abstain from sny endeavor to Inlluence the Chinese in their organization of a new form of government. It was father mutually agreed, in the hope of hastening nn end to hos tilities, that none of the interested pow ers would approve the making of loans by its nationals to either side. As soon, however, ns a united provisional gov ernment of China was assured, the United Stntes joined In a favorable consideration of that government's re quest for ndvnnccs needed for Imme diate administrative necessities and later for n loan to effect n permanent national reorganization. The Interested governments had already, by common consent, adopted, in respect to the pur Kises. expenditure and security of nny loa us to China made by their nationals, certain conditions which were held to lie essential, not only to secure reason able protection for the foreign invest ors, but also to safeguard and strength en China's credit by discouraging indis criminate borrowing and by Insuring the application of the funds toward the establishment of the stnble nnd effec tive government necessury to China's welfare. In June last representative banking grotqis of the United Stntes, France, Germany. Great Britain, Japan and Russia formulated, with the general sanction of their respective govern ments, the guaranties that would be expected in relation to the expenditure nnd security of the large reorganization loan desired by China, which, however, have thus far proved unacceptable to the provisional government The Cuban Situation. The republic of Cuba last May was In the throes of a lawless uprising that for n time threatened the destruction of a great deal of valuable property much of it owned by Americans and other foreigners ns well ns the exist ence off the government Itself. The armed force of Cuba being inadequate to guard property from attack and at the suine time properly to operate against the rebels, a force of American 4ff ines was dispatched from our naval station atGiiaiituiiamo into the province of Orients for the protection of Amerl cnn nnd other foreign life nnd property. The Cuban gdvernment was thus able to use all its forcelu putting down the outbreak, which It succeeded In doing in n period of six weeks. The presence of two American wawhlps In the har bor of Havana during the most critical period of this disturbance contributed in great measure to liny the fears of the inhabitants, including a large for eign colony. Necessity For Retention and Expan sion of Our Foreign Trade, It is not possilde to make to the con gress u . communication upon the pres ent foreign relations rtf tlio United Stntes so detailed ns to convey nu adequate impression of tho enormous increase in the importance and activi ties of those relations. If this govern ment Is renlly to preserve to the Amer ican people that free opportunity In foreign markets which will soon be In dispensable to our prosperity, even greater efforts must be mndo. Conclusion, Congress should' fully realize the conditions which obtain In tlio world as we find ourselves at tho threshold of our middle nge ns a nation. We have emerged full grown as n peer In the great concourse of nations. Wo have passed through various formative periods. We have been self centered In the struggle to develop our do mestic questions. The tuition Is now too mature to continue In Its foreign relations those temporary expedients natural to n people to whom domestic affairs are tho side concern. In the past our diplomacy has often consisted, in normal times, In a mere assertion of the right to International existence. We nre now In a larger re lation with broader rights of our own and obligations to others thnn our selves. A number of great guiding principles were laid down early In the history of this government. The recent tusk of our diplomacy has been to ad just those principles to tho conditions of today, to develop their corollaries, to find practical applications of the old principles expanded to meet new sltuntlons. The opening of the Panama canal will mark n new era In our Interna tional life and create new and world wide conditions which, with their vast correlations und consequences, will ob tain for hundreds of years to come. We must not wait for events to over take us unawares. With continuity of purpose we must deal with the prol lems of our external relations by a diplomacy modern, resourceful, niBjf uaniinoiis and fittingly expressive of the high ideals of a great nation. WILLIAM II. TAFT. The White House, Dec. 3, 1912.