VOL. XXXI., No. 12

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TOPICS OF THE DAY.

EFFECTS OF THE PORTSMOUTH TREATY OF PEACE.

THE

'HE press show such a wide difference of opinion in discussing the Portsmouth treaty that it is hard to say whether they regard the peace, secured at such a time and in such a way, as a cause for rejoicing or for regret. The wrath and disappointment of the populace in Japan which have led them to rioting and attacks on foreigners of so serious a nature that martial law has been proclaimed in several cities; the opportunity which relief from outside pressure gives to the bureaucratic Government at St. Petersburg to marshal all its forces against the people in Russia who are fighting for liberty; and the bitter resentment which the war parties in both countries manifest against the United States for the part which President Roosevelt played in the negotiations-have inspired many papers with misgivings as to the effect the treaty will have upon Russia and Japan and upon the world at large. Thus The Financier (New York) presages that "the acceptance by Japan of the modified terms of peace at the behest of the Mikado. may soon be shown to have been a serious mistake, for the peace which has been won has not been obtained by the victor, but by the vanquished." And The Financial Chronicle (New York) says:

"It does not seem clear that this peace is wholly a blessing. Looking at it in its immediate result, as an end to war, the sum of all horrors, no one can fail to rejoice heartily. Whether, however, it will be for the ultimate good of the Russian people, or the Japanese, or for humankind the world over, is a problem which time only can solve. Should it lead Russia to delay or suspend the apparent movement toward a constitutional government it would certainly be a serious loss to that people and nation, and indeed a loss to the world. So far as Japan is concerned, the check to war affords her a period for rest and an opportunity for recuperation for another struggle with the same Power when it comes. In the mean time, however, the terms of peace as they are presumed to be fail to afford Japan the safety from constant annoyance and

WHOLE NUMBER, 804

sinister courses by her old enemy, which she sought to obtain by war."

But on the other hand there are an equal number of papers which believe that nothing better could have happened than the treaty in the terms and at the very time in which it was written. They assert that the pride of the Czar has been sufficiently humbled and his arrogance subdued as evidenced by the liberal concessions he has already granted to his people; they refer to the generosity shown by the Japanese to a badly beaten foe as positive proof that civilization will have nothing to fear from the development of the yellow races; and they construe the treaty as meaning that Japan has not only gained all that she has a right to expect, but that she has also secured an open door in the Orient for the trade and commerce of the world. All these results might have been lost, and grave complications might have arisen, if the war had been continued. Says the Chicago Chronicle:

"For Japan the peace is eminently wise as well as honorable. Every mile she pushed away from home made the war more costly and more difficult for her. It was impossible to foresee the result of another campaign and she has no huge reserve whereon to take the shock of a reverse. Moreover, even if continuously victorious, to carry on the war another year would have entailed upon Japan burdens that would have been crushing. With peace assured, Japan may devote that year to making money instead of piling up debt in wasteful war, and at the end of a few years she will be far richer than if she had squeezed double the indemnity demanded out of Russia. Because the peace is wise and honorable Mr. Roosevelt is to be accorded high praise for whatsoever agency he had in bringing it about."

And the Louisville Courier-Journal remarks:

'Russia has the victory of refusing to agree to pay the expense of her drubbing, while Japan has pay in territory; she has Port Arthur and Dalny; she has supremacy in Manchuria, supremacy in Korea, supremacy on the Asian seas. More than that, she has the prestige of humbling a Power before which the world had stood in dread. She has the prestige of establishing herself as one of the first of the nations that are to dominate the earth. She has the prestige of gloriously bulwarking her imperiled national existence. She has the prestige of military and naval genius, military and naval prowess, endurance, courage, and patriotism second to no other people. She has the prestige of wise, shrewd, and far-seeing statesmanship, and, not the least in importance, she has the prestige of a financial credit as sound as gold. In every one of these respects Japan has gained and Russia has lost."

The published abstract of the treaty shows that Russia recognizes the preponderant interest from a political, military, and economical point of view of Japan in Korea; transfers to Japan the southern branch of the Manchurian railroad with all mines along the right of way; assigns to her the lease of Dalny, Port Arthur, and all adjacent lands and waters; cedes to her the southern part of Saghalien, and also a joint interest in the fisheries along the Russian littoral in the Japan, Okhotsk, and Bering seas. Japan binds herself to show discrimination against Russian subjects or enterprises in Korea, and to allow Russian subjects other than convicts to live without molestation in her part of Saghalien. Both parties mutually agree to evacuate Manchuria simultaneously, and to put no obstacle in the way of any measures which China may take for the commercial and industrial development of that country. They also reciprocally agree to respect and safeguard the property rights of private individuals in the companies and

territory affected by the treaty; to operate the railroad jointly at Kwang-Cheng-Tse and to use it only for the purpose of trade and commerce; and further to restore their prisoners of war on payment of the actual cost of keeping them; and finally to renew the commercial treaty existing prior to the war, but with such modifications as to assure to each the "most favored nation" treatment. These terms, as it will be seen, fall considerably short of the demands made by the Japanese plenipotentiaries, which included the cession of all Saghalien, the payment of the entire cost of the war, the surrender of the interned war-vessels, and the limitation of Russia's naval forces in the Far East. But, as the Louisville Courier-Journal remarks, "diplomats habitually ask for more than they expect to receive." So perhaps the best way to determine what each party has lost or gained by the treaty is to compare its terms with the known points of the dispute which gave rise to the war. They are still recent history.

Government on January last [1904] met the vexed question of Manchuria with a proposal to insert in a Russo-Japanese agreement the recognition by Japan of Manchuria and its littoral as outside her sphere and interest, while Russia within the limits of that province would not impede Japan nor any other power in the enjoyment of rights and privileges acquired by it under existing treaties with China.' But this concession was coupled with conditions that there should be a neutral zone in Korea just south of the Yalu River and that Korean territory should not be employed by Japan for strategical purposes; further there was no mention at all of China's territorial integrity in Manchuria. This note of January 6, with Russia's further delay, was the rock upon which the negotiations split."

pretty largely into the hands of Japan and Great Britain by the new alliance between those Powers, which, it is understood, binds

the signatories to assist each other in case either is attacked by another Power in Asia or the adjacent islands. Those American newspapers which keep an eye on foreign affairs were quick to realize the significance and great importance of this new treaty. If it had been in existence in 1895, and England "had then said," as the

THE JAPS-"Well, it doesn't take much to make him feel good."

THE CHINAMAN-" Me no likee to fight."
-Rehse in the St. Paul Pioneer Press.

New York Times remarks, "that she would not permit Japan to be bullied out of the fruits of her victory" in the war she was then waging," that declaration would have been decisive and the war now ended need not have been begun." In further explanation of the treaty The Times continues:

To many observers this will seem a very one-sided agreement. It not only renders impossible for more than ten years to come such a coalition against Japan as was successful ten years ago. It enables Japan to take a high tone toward Germany in Kiau-Chau and toward France in Indo-China

perhaps, one might add, toward the United States in the Philippines, if there were any reason to suppose that the Philippines were really in question. At any rate, it reenforces by the potential strength of the British navy whatever demands Japan may make, whatever plans Japan may pursue, in Asiatic politics."

In the opinion of the New York Sun the treaty is as advantageous to Great Britain as it is to Japan, for the reason that its effect will be to put a check to the ambitions of Russia in every direction, keep her permanently off the seas, and confine her aggressions to the least desirable parts of Asia. To quote:

"In Calcutta well-informed Anglo-Indians will experience a deep sense of relief when they learn of the new treaty concluded between England and Japan. Whatever confidence they may feel in Lord Kitchener's organizing ability, they are keenly alive to

the stupendous difficulties in

volved in the problem of ruling India with a body of Englishmen which, including both soldiers and civilians, does not equal onetenth of one per cent. of the native population. Never before in the history of her relation to the huge Indian peninsula has England been able to count on a foreign ally. To her foreigners have proved at least as inimical as natives. It required a struggle to acquire even a foothold in the teeth of the Dutch, and threefourths of the eighteenth century were spent in a desperate contest with Frenchmen for the control of the Deccan."

its ward and ally in Far Eastern waters and will be held responsible for its attitude toward the rest of the world.

"Doubtless the prime purpose of this remarkable alliance is to maintain the existing status quo in Asia against possible Russian or German aggressions. With Japan in control of the Pacific seaboard and England strengthening its military forces in India, a Slav advance on any part of the Russian border, from Persia to the Far East, would seem to be effectually checkmated. That the unique alliance thus formed between Occident and Orient must introduce a new and potent factor into the politics

The Chicago News predicts that the "Russian advance" will be arrested at every point by this coalition, while the other Powers will receive fair treatment.

It says:

"The importance of any such agreement in giving permanency and stability to the conditions about to be established in the Far East should be obvious. With the assurance of British support Japan can proceed without fear of molestation to gather the fruits of victory. Great Britain on its part will gain the position of a favored nation in all that pertains to oriental commerce and diplomacy. While other Powers will thus be restrained from aggressions in that part of the world, the strong friendship which Great Britain has just cemented with France and its commercial interests with other nations will constitute a guaranty of fair treatment to these nations. To a certain extent Britain will be the sponsor of

of Europe, and the West generally, however, is apparently inevitable."

THE GOVERNMENT PRINTING SCANDAL.

THE

HE first-fruits of the Keep Commission appear to be the removal of the public printer, F. W. Palmer, from office. The spite of this aged official against his ambitious and aspiring young foreman, and the struggle between the Lanston and Mergenthaler people over a fat contract for supplying machines, stirred up a disturbance that led to a complete investigation of affairs in the government printing-office. To let the Savannah News tell the story:

"The public printer is Mr. Palmer, a man well along in years. It seems he had the two machines carefully tested, with the result that the conclusion reached was that the Lanston was the better. Then, according to the story that is in circulation, the president of the Mergenthaler company declared that Mr. Palmer was improperly influenced in his decision, and he wrote to the President about the matter, making charges the President couldn't very well ignore. The President appointed a commission to investigate the merits of the two machines. This commission sustained the public printer in every particular, so it is said.

"The real row, however, is between the public printer and his chief assistants, Oscar L. Ricketts, foreman of printing, and L. C. Hay, foreman of the job-office. These men have sided with the president of the Mergenthaler machine, and have tried to make the situation particularly uncomfortable for Public Printer Palmer. So insubordinate did they become that Mr. Palmer dismissed them. They refused to go, saying that under the civil-service rules they had a right to hear the charges against them and to have a trial upon them.'

The "dark, dirty nauseating stream of details now pouring forth from more than one authoritative source," as the Journal of Commerce describes the evidence, proves, in the opinion of the New York Evening Post, that "the government printing-office has become a hotbed of extravagance and corruption." The sensational report of the Keep Commission, according to newspaper accounts,

`shows that "slackness, waste, pilfering, and irregularities in the purchase of equipment" have been the "distinguishing marks" of the Palmer administration, and that "the office is honeycombed with politics" and burdened with incompetent and dishonest employees, many of whom have in the names of themselves, wives, or friends received bonuses, shares of stock, and various rewards for aiding and supporting the interests of parties who had "axes to grind."

The extravagance and corruption complained of are looked upon as peculiarly unaccountable in view of the fact that Congress has thrown many safeguards around the government printing-office. According to the Washington correspondent of the New York Evening Post," the public printer is circumscribed by all sorts of limitations." To quote:

"[He] is prohibited, even with the authority of the joint committee on printing, from purchasing materials other than paper, where the amount of such purchases in any term of six months exceeds $50, other than by competitive bidding, except in certain emergencies. . . . During the recess of Congress, if the public printer desires to buy emergency articles, he must telegraph to T. C. Platt, the chairman of the joint committee, to get authorization. The joint committee of the two houses on printing acts as a board of directors of this establishment, and bids for supplies are opened in the presence of the committee."

Nevertheless, in the face of all these precautions, extravagances and irregularities appear to such an extent that" one dollar in the government printing-office will not go much farther than forty cents in a private concern." Mr. William S. Rossiter, of New York, in a carefully written article in The Atlantic Monthly for September, attempts to explain the cause for all this trouble, and says:

"The waste in federal printing may be summed up as comprised in two general classes: that occurring from various causes in the conduct of the printing-plant itself; that resulting from the publication of pamphlets and volumes either really not needed at all, or, if needed, issued too expensively or in too large numbers. Of these two classes of waste, that existing in the plant is purely a business matter, and can be remedied to some extent by following more closely the best commercial methods. That occurring in connection with the character and amount of product can probably be met permanently only by some form of supervision dealing especially with the three questions which should be considered with every proposed publication: the question of publishing at all, the

question of economy in mechanical presentation, and the question of restricting the size of the edition so as not to exceed the number of copies required by a wise distribution. Distribution, indeed, forms a perplexing problem by itself. The commercial publisher catering to a definite demand avoids dead stock by reprinting. With federal publications the tendency is toward only one edition and that a liberal one. Herein is the possibility of serious waste people are always to be found who will accept any kind of a book if it costs nothing. Therefore distribution is lim ited solely by the number of copies Congress or government officials are willing to issue. The object of most federal publications could be attained at a very small part of the present cost if they were sent free only to libraries and public institutions, and certain important newspapers which agree to review them, and sold for a nominal sum to all others."

HOW TO EMPLOY CONVICT LABOR.

THE

HE Rev. George B. Wright, Commissioner of Charities and Correction of New Jersey, in an address recently delivered before the State Federation of Labor, made a suggestion which offers a solution for one of the most vexed problems of prison management. The question which Mr. Wright discussed was how to employ convict labor and to utilize the proceeds thereof in the most satisfactory way. He said:

"I wish that when a man of family is imprisoned, the work that he does in an institution might go for the support of his family, which otherwise would have to be sent to the almshouse and supported by the public."

The advantages of Mr. Wright's suggestion became apparent at once to the press, which, in discussing its merits, took notice also of its defects and weaknesses. The scheme makes no provision for women prisoners or convicts who are not encumbered with dependents, but it is supposed that the commissioner intends that in these cases the earnings of each individual would be used to support himself or herself in prison, reserving a small percentage with which to begin life anew upon liberation.

If the proceeds of convict labor were utilized in the way Mr. Wright suggests, it would of course be appraised at something like the market value of free labor of the same class. This is looked upon as the chief and especial advantage of the scheme, for thereby the principal objections against the employment of convicts in

ROBERT BACON.

Some papers regard his Wall Street record as evidence of his unfitness to be Assistant Secretary of State.

him even in his retirement to private life.. Secretary Taft, in the report exonerating Mr. Loomis from the Bowen

charges, declared that his greatest crime was indiscretion, but the New York Herald (Ind.) recently published a batch of letters which the New York World (Dem.) says" vitally "affects his honor. These communications were brought to light, it seems, through a quarrel between the majority and minority stockholders of the Orinoco Company, limited, claimant to the valuable Manoa concession in

Venezuela, and make it appear as tho Mr. Loomis was sent to Caracas through the influence of Ohio politicians, for the especial purpose of protecting the interests of this company. Mr. Loomis, however, denies this implication with the positiveness which has been so effective in the past; and as he is now no longer connected with the Government, no inclination is manifested at Washington to probe for the truth of this new scandal. Thus, for the time being at least, ends the political and official career of this somewhat remarkable man who a few years ago started out with such bright prospects. The earlier phases of the Bowen-Loomis case were considered in our issues for May 6 and 13 and July 1.

The successor to Mr. Loomis as First Assistant Secretary of State is Robert Bacon, and the papers are not unanimous in expressing approval at his appointment. Some fear is felt that he has been too long and too intimately connected with Wall-Street interests to make a satisfactory servant of the people. Biographical sketches show that Mr. Bacon was graduated from Harvard with President Roosevelt in 1880. In 1899 J. Pierpont Morgan took him into his firm in New York and made him a member of Drexel & Company, of Philadelpiha, and of the foreign branch in Paris. The most conspicuous services he did for Mr. Morgan were to direct the British end of the steamship merger which resulted in the formation of the Mercantile Marine Company in 1903; and to represent Mr. Morgan's interests in the negotiations which ended the anthracite coal strike in Pennsylvania. His withdrawal from the Morgan firms shortly after the settlement of the strike gave rise to the rumor that he and his chief had disagreed on im

portant matters touching this labor disturbance. This was denied, and as the "Directory of Directors" for this year mentions Mr. Bacon as a director of many railroads and big corporations which Mr. Morgan owns or controls it would seem that the new Assistant Secretary of State and the great Wall-Street magnate are still on friendly terms and have some business interests in common. This connection, real or supposed, between Mr. Morgan and Mr. Bacon has given occasion for the criticism which is heard against this new appointment in the State Department. Thus the Philadelphia Public Ledger (Ind.) remarks:

"All that is published of Mr. Bacon speaks of his high qualifications. He was a classmate of Mr. Roosevelt, whose friendship he has retained, and both the President and Mr. Root are said to have been impressed by the judgment and ability he displayed at the time of the anthracite conference. He is evidently a man of high character, wide experience, and trained judgment, and one of that class of cultivated and prosperous citizens and men of affairs whose activity in public life is to be welcomed. That his appointment will not pass without criticism, however, may be expected. We need not regard the criticism of those who look upon wealth or education as a disqualification for office; but a directorship in the United States Steel Corporation is not, it must be admitted, a claim on popularity, and at the moment when the State Department has just been assisting Mr. Morgan to extort several millions from the Chinese Government; for the surrender of a railway concession on which little or nothing had been expended, the intimate association of diplomacy and finance seems unpleasantly emphasized."

But the general trend of comment is favorable to the appointment. It is pointed out that the State Department and its auxiliary, the consular service, are the government agents upon which Americans immediately rely for the protection of their interests abroad. The extension of foreign trade, especially in the Orient, is making these interests very valuable and worthy of the highest concern of the Government. The new Assistant Secretary of State, who will have direct charge of this work for the department, has been trained to handle large affairs; he is, as the New York Tribune (Rep.) says, "familiar with business methods," and, as the New York Evening Mail (Ind. Rep.) says, is willing to "abandon large compensation and influential position in private life" for honor and responsibility of public place." Therefore the Boston Transcript (Rep.) remarks:

the

As a diplomatist Mr. Bacon, in one sense, has his experience all before him, but to a man of his training its acquisition ought not to be very difficult. Our diplomacy, notably in the Far East, will for some time to come turn on the treatment of ques-tions more or less commercial, the expansion of our trade, and the general readjustment of her relations to the conditions resulting from the triumph of Japan. There will be play for special talent of the diplomat practically acquainted with high finance and familiar with its currents, and few have had more experience in this direction than Mr. Bacon, so long associated with Mr. Morgan. Toward the Far East the commercial-financial interests of the country are now being directed. Besides the tendency of our trade to expand

WILLIAM J. CALHOUN,

Who goes to Venezuela as the special representative of the President to find out the truth about the Bowen-Loomis dispute.