RATES OF ADVERTISINCl One Square, one inch, one week... 1 00 One Square, one inch, one month.. 8 00 One Square, one Inch, 8 months...- 6 00 One Square, one inch, one year ..... 10 (0 Two Squares, one year .... IS 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 fine Job Printing of every de scription at reasonable rates, but It's oasb on delivery. Published every Wednesday by J. E. WENK. Offioe in Smearbaagh & Wenk Building, XI.M BTBKKT, TIOHBSTA, PA. Fore F.PTTRT JiHAM Terse, SI. 00 A Year, Btrletly li AItum, Entered second-class matter at the pont-offloe at Tlonesta. No subscription received for shorter period than three months. Correspondnnoe solioited, but no notloe will be taken of anonymous oommunloa tlona. Always give your name. , PA , J VOL. XLV. NO. 41. TIONESTA .DNESDAY, DECEMBER 4, 1912. $1.00 PER ANNUM. THE FOREST REPUBLICAN. R ST BOROUGH OFFICERS. Burgess. J. O. Dunn. Justices of the Voce C. A. Randall, D. W. Clark. CbuncMmen. J. W, Landers, J. T. Dale, O. B. Kohlnson, Wm. Smearbaugh, R. J. Hopkins, O. F. Watson, A. B. Kelly. Constable L. L. Zuver. Collector W. H. Hood. School XWreetota W. C. IuieT, J. R. Clark, S. M. Henry, Q. Jamleson, D. U. Blum. FOREST COUNTY OFFICERS. Member of Congress P. M. Speer. Member of Senate 3. IC. P. Hall, Assembly Vf. J. Campbell. President Judge W. I). Hinckley. Associate Judges Samuel Aul, Joseph, M. Morgan, Prot honotary, Register d Recorder, te. 8. R. Maxwell. Hheritr Wm. U. Hood. Treasurer W. H. Brar.ee. ' Commissioners Wm. H. Harrison, J. C. Soowdeu, H. H. MoClellan. i District Attorney.. K: Carringer. Jury Commissioners J, B, Eden, A. M, Moore. Coroner Dr. M. O Kerr. . Countv Auditor George H. Warden, A. C. Gregg and S. V. Shields. County Surveyor Roy S. Braden. County Superintendent-J. O. Carson. s Recalar Terns Cut. Fourth Monday of February. Third Monday of May. Fourth Monday of September. Third Monday of November. Regular Meetings of County Commis sioners 1st and 8d Taesdays of month. . Caere Habbatk Hceeel. Presbyterian- Sabbath School at 9:45 a. m. t M. E. Sabbath School at 10:00 a. m. PreaohHig In M. E. Church every tjab bath evening by Kev. W.S. Burton. Preaohlng in the F. M. Church every Sabbath evening at the usual hour. Rev. O. A. Garrett, Pastor. Preaching' in the Presbyterian church every Sabbath at 11:00 a. m. and 7:30 p. m. Rev. H. A. Bailey, Pa" tor. The regular meetings of the W. C. T. U. are held at the headquarters on the second and fourtn Tuesdaya of each month. BUSINESS v DIRECTORY. TIi .N ESTA LODGE, No. 869, fc0. 0. F. Meets every Tuesday eveniug, in Odd Fellows' Hall, Partridge building. CAPT. GEOBOR STOW POST. No. 274 O. A. K. Meets 1st Tuesday after noon of each month at 3 o'clock. CAPT. GEORGE STOW CORP8, No. 187, W. R. C, meets first and third Wednesday evening oi each month. TF. RITCHEY, ATTORNEY-AT-LAW, Tlonesta, Pa. MA. CARRINGER, Attorney andounsellor-at-Law, OfBoe over Fofcat County National Bank Building, TIONESTA, PA. CURTIS M. 8HAWKEY. ATTORN K Y-AT- LA W, Warren, Pa. Praotioe in Forest Co. A'O BROWN, ATTORNEY-AT-LAW, Offloeln Arner Building, Cor. Elm and Bridge Sts., Tlonesta, Pa. FRANK 8. HUNTER, D. D. S. Rooms over Citizens Nat. Bank. TIONESTA, PA. DR. F. J. BOVARD, Physician A Surgeon, TIONEcJTA, PA. Eyes Tested and Glasses Kitted, DR. J. B. SIGGINS. Physician and Surgeon, OIL CITY, PA. DR. M. W. EASTON, OSTEOPATHIC PHYSICIAN, of Oil City, Pa., will visit Tlonesta every Wednesday. See him at the Central House. Setting bones and treatment of nervous aud chronic diseases a specialty. Greatest success in all kinds of ohroulo diseases. HOTEL WEAVER, J. B. PIERCE, Proprietor. Modern and up-to-date in all Its ap pointments. Every convenience and oomfort provided for the traveling public CENTRAL HOUSE, R. A. FULTON, 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 pleasant 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 oustom work from the finest to the coarsest and guarantees his work to f ive perfect satisfaction. Prompt atten ion given to mending, and prices rea sonable. JAMES HASLET, GENERAL MERCHANT. Furniture Dealer, AND UNDERTAKER. TIONESTA, PENN Gasolines No Carbon Plenty of Power r Save trouble and expense. They're true Quality, not cruae, compresseu goo. rnrr a ... luuil. n ahoMt nil nn m. www - VT. W1VFRIT nil. WORKS CO. PittiWgB, Pa. LAMP OILS LUBRICANTS CHICHESTER S PILLS W rv 1 ,,K DIAMOND nUAMK A Ill A Mil It HHAhill 111.1 H. fni 1I& yeftrt known as Best, Safest, Alwayt RelUI'la SOLD BY DRUGGISTS EVERYWHERE N3. t.maieni ak your urummtm for a t hl.rbe-ter'a I Nam on d TlrandA rill in Kr d ". (.old metalUcSV bntn, Mileil with tilutt Ril-in. V Take no other. Ituy f your " , tkviiarrrl.. Ai.li fo V II I A llV ai.T V B TAFT SENDS IN FINAL MESSAGE of Foreign Relations. WORK DONE BY DIPLOMATS, Recognitor! of Merit Syttem Has Been Beneficial Suggestions Regarding Changes In the Tariff Laws Designed to Aid Commerce Turkish War and Troublea In China. To the Senate aud House of Repre sentative: The foreign relations of the United States actually and potentially affect the state of the Union to n degree not widely realized and hardly surpassed by any other factor lu the welfare of the whole nntlqii. The position of the United Stales In the moral, Intellec tual ami material relations of the fam ily of nation should Jie a matter of vital Interest to every patriotic citi zen. The national prosperity and power Impose upon us duties which we cannot shirk If we are to be true to our Ideals. The tremendous growth of the ex port trade of t he United States lias already made that trade n 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 basis 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 Intlous have only served to strengthen our friendship with foreign countries by placing those friendships upon a firm foundation of realities as well ns aspirations Reorganization of State Department. At the beginning of the present ad ministration the United States, having fully entered upon its position as n world power. Willi 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 an archaic and inadequate machine, lack ing most of the nttributes of the for eign ollice of any great modem power. With an appropriation made upon my recommendation by the congress on Aug. 5, 1000. the department of state was completely reorganized. There were created divisions of Latln-Amerl-can affairs and of far eastern, near eastern and western European affairs. The law offices 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 lu the Innumerable matters where commercial diplomacy or con sular work calls for such special knowledge. The same officers, together with t lie rest of the new organization, are able at nil times to give to Ameri can citizens accurate Information as to conditions In foreign countries with which they have business and likewise to co-operate more effectively with the congress and also with the other ex ecutive departments. Merit System In Coniular 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 be 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, had 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 an adequate per sonnel In that branch of the service. Therefore, on Nov. 20, l'JOO, by an executive order I placed the diplomatic service up to the grade of secretary of embassy. Inclusive, upon exactly the same strict nonpartisan basis of the merit system, rigid examination for ap pointment and promotion only for effi ciency, ns had been maintained with out exception in the consular service. Merit and Nonpartisan Character of Appointments. How faithful to the merit system and how nonpartisan has been the con duct of the diplomatic and consular services in the Inst four years may be Judged from the following: Three am bassadors now serving held their pres ent rank at the beginning of my ad ministration. Of the ten ambassadors whom 1 have appointed Ave were by promotion from the rank of niltilster. 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 rrom the lower grades of the foreign service or from the department of state (if the nineteen missions in I j it in A inc-t ii-n, where our relations are close anil our Interest Is great, fifteen chiefs of mission tiro 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 wera chosen for ascertained titness, without regard to political allllln tloua. A dearth of candidates from southern and western states has alone made It linposKllifaahiiH far completely to equal ize all the states' representations in the foreign service. lu the effort to equalize the representation of the va rious states In the consular service I have made sixteen of the twenty-nine new appointments as consul which have occurred during my administra tion from the southern states. Tills Is 55 per cent. Every other consular ap pointment made. Including the promo tion of eleven young men from the con sular assistant and student Interpreter corps, has been by promotion or trans fer, based solely upon efficiency shown In the service. Larger Provision For Embassies and Legations Recommended. In connection with legislation for the amelioration of the foreign service, 1 wish to Invite attention to the advisa bility of placing the salary appropria tions upon n better basis. I believe that the best results would be obtained by a moderate scale of salaries, with adequate funds for the expenses of proper representation, based lu each case upon the scale and cost of living at each post, controlled by a system of accounting and under the general di rection of the department of state. In Hue with the object which 1 have sought of placing our foreign service on a basis of permanency, I have at various times advocated provision by congress for the acquisition of govern ment owned buildings for the residence and offices of our diplomatic officers, so as to place them more neilrly on an equality with similar otlicers of other nations and to do away with the dis crimination which otherwise must nec essarily be 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. Tills policy has been charac terized as substituting dollars for bul lets. It Is one that appeals alike to idealistic liumnultaiian sentiments, to the dictates of sound policy and strat egy and . to legitimate commercial alms. It is an effort frankly directed to the Increase of Americnn 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 States Keen use modern di plomacy Is commercial there has been a disposition In some quarters to at ttibute to It none but materialistic alms. How strikingly erroneous Is such an Impression may be seen from a study of the results by which the diplomacy of the United States can be Judged. Successful Effort la Promotion of Peace, In the Geld 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 have been prevented or ended. I re fer to the successful tripartite media tion of the Argentine Republic, Bra zil, and the United States between Teru mid Ecuador, the bringing of the boundary dispute between Panama and Costa Rica 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 Influence toward the restoration of amicable re lations between the Argentine Republic and Bolivia. 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 an early cessation of hostili ties. An agreemeut has been reached etween the governments of Chile and Peru whereby the celebrated Tacna Aricn dispute, which has so long em bittered international relations on the west coast of South America, has at last been adjusted. Simultaneously came the news that the boundary dis pute between Peru aud 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 and practical appli cation to the open door policy. The consistent purpose of the present od 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 foreigu bankers In connection with certain Industrial entevprlses, such as the Hiikuang 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 ( III zens participation in such enterprises. In order that the United Stales might bave equal rights and an equal voice lu 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'ns 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 lis cur rency. The principle of international co-operation In mutters of common In terest upon which our policy had al ready been based In all of the above In Itances has admittedly been a great factor In that concert of the powers which has been so happily conspicuous during ( lie perilous period of transition through which the 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 as Nicaragua and Honduras to help themselves. They are the immediate beneficiaries. The national benelit to the United States Is twofold. First. It Is obvious that the Monroe doctrine Is more vital In the neighborhood of the I'anamn canal and the zone of the Caribbean than any where else There, too. the nialnte nance of that doctrine falls most heav ily upon the United States. It Is there fore essential that the countries within that r.phere shall be removed from the niltlll I rT- U III,"' ru t rui ill nvolvedaby heavy foreign umtlcfllonnl finances anil ver pnfint danger of inter Jeopardy Involved debt and ch from the ever national complications due-to disorder at home Hence the United States bas been glad to encourage and support Ameri can bankers who were willing to lend a helping hand to the financial re habilitatlon of such countries Iiecnnse this financial rehabilitation aud the protection of their custom houses from being the prey of would lie dictators would remove at one stroke the .men ace of foreign creditors and the men ace of revolutionary disorder. I wish lo call your espelal attention to the recen' occurrences In Nicaragua, for 1 believe the terrible events re corded there during the revolution of the past summer the useless loss of life, the devastation of property, the bombardment of defenseless cities, t he killing and wounding of women and children, the torturing of noncomhnt ants to exact contributions and t lie suffering of thousands of human be Ings might have been n verted hail the department of state, through approval of the loan convention by the senate, been permitted to carry out Its now well developed policy of encouraging the extending of financial aid to weak Central American states with the pri mary objects of avoiding Just such 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, ami 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 witli sorrow the death of seven Americnn marines and bluejackets.-Since the re establishment of pence and order elec tions have been held amid conditions of quiet and 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 dllllcult 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 and progress.. To that na tion In Its sore troubles the syniiHi tlietic 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 40.000 American citizens engaged In enterprises contributing greatly, to the prosperity of that republic and also benefiting the Important trade between the two countries. The Investments of American capital In Mexico has been estimated at $1,0 '0,000,000. The respon sibility of endeavoring to safeguard those Interests and the dangers Insep arable from 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 lomatic otlicers lu Europe Is the inves tigation of the agricultural credit sys tent in the ICuropean countries. Both as n means to afford relief to the con snuiers of tills country through u more thorough development of agricultural resources and us a means of more sulll clently maintaining the agricultural population, the project to establish credit facilities for the farmers is a concern of vital Importance to this na tion. No evldem-e of prosperity nmong 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 an adequate In crease of the land under cultivation; that agricultural production Is fast fall 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. The Importance which our manufac tures have assumed in the commerce of the world In competition with the manufactures of other countries ngaln draws attention to the duty of this government to use Its utmost endenv orn tn Mocin-p liiiniirtinl treatment for American products In nil market' Healthy commercial rivalry In Interna iiuiri mi ll red ansff foffign tlonal intercourse Is best nfw the possession of -proper means protecting and promoting our foRign trade. It Is natural that competitive countries should view with some cou-tJ cern tills steady expansion of our com merce. If In some Instances the meas urea taken by tlieiu to meet it are not entirely equitublea .remedy, should be found. In former messages I hfe described the negotiations of the jfnirtnient of state with foreign governments for the adjustment of the maximum and mini mum tariff as provided in section 2 of the tariff law of 1!)0!). The advantages 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-favored-nntlon treat ment from all the countries of the world. There are, however, other Instances which, while. apparently not constitut ing undue discrimination 'So. the sense of section 2, are 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 1011. that while the maximum and minimum provision of the tariff law of l'JOO has-been Tully Justified by the success achieved lu removing pre viously existing undue discriminations against American products, yet experi ence has shown that this feature of the law should be amended lu such way as to provide n fully effective means of meeting the varying degrees of discriminatory treatment of Ameri can commerce In foreign countries still encountered, ns well ns 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 Ainerleau 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 letter of Dec. 13. 1011. TJie ob ject of the proposed legislation Is, lu brief, to enable the executive to npp"ly. ns the case may require, to any or nil tntn imwll I l.ia u-h,ktliit. tr n.it nn tUn ;PViLst from 0 coulltry which discrtm- mof HKiuuni tut; uiiiieu ouuus, a gr;iAiated scale of duties up to the maximn of 25 per cent nd valorem prortdjL'd In the present lav. ' . Pint tariffs are out of date. Nations no longer acord equal tariff treatment to all other nations Irrespective of the treatment from them received. Such a flexible power nt the command of the executive would serve to moderate any unfavorable tendencies on the part of those countries from which the Impor tations Into the United States arc sub stantially confined to articles on the free list as well ns of the countries which 11 nd a lucrative market In the United States for their products under existing custom rates. It Is very ncucs sary that the American government should be equipped with weapons of negotiation adopted to modern econom ic conditions In order that wo may nt all times be lu a position to gain not only technically Just but actually equit able treatment for our trade and also for American enterprises aud vested In terests abroad. Business Secured to Our Country by Direct Official Effort. As illiisU'ittiug the commercial bene fits to Ibo nation derived from the new diplomacy ami its effectiveness upon the material as well as the more Ideal side, It may- be remarked that through direct ofliclal efforts alone there have been obtained In th courso of tills administration' Contracts from foreign governments Involving an expenditure of !f."0,oi 10,01 10 in the factories of the Ujilted States. It Is geraiane'to these observations to remark that In the two years that have elapsed since the successful negotia tion of our new treaty with Japan, which at tlie time seemed to present so many practical difficulties, our export trade to that country has Increased at the rate of over $1,000,000 a month. Our exports to Japan for the year end ed June 3d, 1010, were $'Jl,!l.7J,310, While for the year ended June 30, 1012, the exports were $53.-1 78.0-UI. n net In crease iff the sale of American prod ucts of nearly 150 per cent. The act adopted. at the Inst session of congress to give effect to the fur seal convention of July 7. 1011. between Great Britain, Japan, Russia and the United States provided for the sus pension of all land killing of seals on the Pribllof 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 tills prohibition of land killing Is Inconsist ent with the spirit If not the letter of thr treaty stipulations. The Justifica tion for establishing this close season depends, under the terms of the con vention, upon how far If at all It is .necessary for protecting and 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 and 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 and method of procedure recommend ed In the nward rendered by the North Atlantic cmst fisheries arbitration trl biimrl on Sent. 7. 1010. for the settle- "W'lit hereafter. 111 accordance with 9:Wflie principles laid 9hwn in the award, of options arising with reference to thue'rclse of tha- Americnn fishing liberties under Article I of the treaty of Oct. 20, 1818. between the United States and Great Britain. This agree ment received the approval of the sen ate ou Aug. 1 and was formally rati fied by the two governments on Nov. 15 Inst. Opium Conference Unfortunate Fail ure of Our Government. In my message ou foreign relations communicated to the two houses of congress Dec. 7, 1011. I called special attention to the assembling of the opium conference nt The Hague, to the fact that that conference was to review all pertinent munclpnl laws relating to the opium and allied evils and certain ly all International rules regarding these evils, find 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 called attention by n special message. .The congress nt Its present session should enact Into law those bills now before It which have been so carefully drawn up in collaboration between the department of state nnd the other ex ecutive departments nnd which have behind them not only the moral senti ment .tf the country, but the practical support of all the legitimate trade in terests likely to be affected. Since the International convention was signed adherence to It has been made by sev eral European states not represented at. the conference of The Hague und also by seventeen Latin-American re publics. Europe r tie Near East. The war between Italy and Turkey came to a close In October last by the signnture of a treaty of peace, subse quently to which the Ottoman empire renounced sovereignty ovta Cyrenalca and .T rlpolitavila in favor of Italy. Dur 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 and Turkey nnd their ar rival at an adjustment of the complex questions at Issue between them, war broke out between Turkey on the one hand and Bulgaria, Greece, Montene gro ami Servln on the other. Mn the exercise of my duty fh the feet tor 1 have dispatched to Turkish waters a 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 a result of the efforts of this gov ernment to place the government of LIberiA 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 and the issuance of the bonds of the 1012 loan for the rehabilitation of the tlnnnces of Liberia will follow at an 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 tho United Stntes and three receivers of customs desig nated by the governments of Germany, France nnd Great Britain, which couu fries have commercial Interests lu the republic of Liberia, s The Far East. The political disturbances In China In the niituin and winter of 1011-12 resulted in the abdication of the Man elm rulers on Pel). 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 Americnn people witli the assumption of republican principles by the Chinese people was appropriately expressed .In a concurrent resolution of congress on April 17. 1012. 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 a per.nai.-.'iit e.i.'x'JMi'ion and orp.'inhu the government oi' the nascent repub lic. During the format ive constitutional stage and pending definite action by the assembly, as expressive of the popular will, and the hoped for en tab llslni'vnt of a stable republican form cf government tumble, yi fuJUUiuij lis international obligations, the United States 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 and complicated problems, both of In ternal rehabilitation and of Interna tional relations, whose solution It was realized would necessarily require much time ami patience. From the beginning of the upheaval last autumn It was felt by the Uulted 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 an understand ing, readied early In the disturbances, to act together for the protection of the lives and property of foreigners If menaced, to maintain an attitude of strict Impartiality us between the con tending factious and to abstain from any endeavor to inllueiice the Chinese In their organization of a new form of government. It was futlier 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, as a united provisional gov ernment of China was assured, tho United States Joined In a favorable consideration of that government's re quest for advances needed for Imme diate administrative necessities aud later for a 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 any loans to China made by their nationals, certain conditions which were held to bo essential, not only to' secure reason able protection for the foreign Invest ors, hut also to safeguard and strength en China's credit by discouraging Indis criminate borrowing nnd by insuring the application of the funds toward the establishment of the stable and effec tive government necessary to China's welfare. In June Inst representative bnnklng groups of the United States, France, Germany. Great Britain, Japan nnd 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 Inst May was In the throes of a lawless uprising that for a 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 ofy the government itself. The armed force of Culm being inadequate to guard properly from attack and at the same time properly to operate against the rebels, a force of American rfftines was dispatched from our naval station atGiiautauamo Into the province of Oriente for the protection of Ameri can and other foreign life nnd property. The Cuban government was thus able to use all Its forciln putting down the outbreak, which It succeeded In doing In a period of six weeks. The presence of two American wu whips In the har bor of Havana during the most crltlcnl period of this disturbance contributed in great measure to allay the fears of the Inhabitants, including a large for eign colony. Necessity For Retention and Expan sion of Our Foreign Trade. It Is not possible to make to the con gress a .communication upon the pres ent foreign relations of the United States so detailed as to convey an adequate Impression of tho enormous Increase in the Importance and activi ties of those rehitlous. If this govern ment Is really 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 made. Conclusion. Congress should" fully realize tho conditions which obtain in the world as we find ourselves at the threshold of our middle ago ns a nation. We have emerged full grown as a peer In the great concourse of nations. We have passed through various formative periods. We have been self centered In the struggle to develop our do mestic questions. The nation Is now too mature to continue in Its foreign relations those temporary expedients natural to n people to whom domestic affairs are tho solo concern. In the past our diplomacy has often consisted, In normal times. In a mere assertion of tho right to International existence. We are now in a Inrger re lation with broader rights of our own nnd obligations to others than our selves. A number of grent guiding principles were Inld down enrly In the history of this government The recent task of our diplomacy has been to ad just those principles to the conditions of today, to develop their corollaries, to find practical applications of the old principles expanded to meet new situations. The opening of the Panama canal will mark a new era in our Interna tional life nnd create uew and world wide conditions which, with their vast correlations and 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 prob lems of our external relations by a diplomacy modern, resourceful, mag nanimous nnd fittingly expressive of the high ideals of a great nation. WILLIAM II. TAFT. The White House, Dec. 3, 1912.