the state? There is no power but the sword of the aggrieved country. The violation of treaty obligation is universally regarded as a just cause of war. But suppose a powerful state violates a compact which it has made with a puny state? In such a case punishment through war is out of the question and the weak state must rely upon the natural operation of the law of nations. "In the eye of international law treaties are made to be kept," and if a powerful nation persistently and perversely breaks its treaties it will incur the hostility of its neighbors and sooner or later these will combine and force it to abide by the rules of international law. The President, acting through the Secretary of State and diplomatic agents, negotiates treaties with foreign powers. After a treaty has been framed, if it meets with the approval of the President, it is sent to the Senate, where it must be ratified by a two-thirds vote (95). If it is successful in the Senate it is sent to the foreign government for ratification. When it has been ratified by the foreign power the treaty is law for all the states whose governments have signed it. Suppose the President and the Senate should conclude a treaty which required an outlay of money, would their action bind the House of Representatives? This question arose in 1794, when ninety thousand dollars was needed for carrying Jay's Treaty into effect. The House voted the money, but passed a resolution declaring its right to deliberate upon any regulation of a treaty which was placed by the Constitution under its control. Treaties requiring money for their execution have been concluded again and again, and the House has always made the necessary appropriation. It has never, however, acknowledged its obligation to do so. Arbitration. A treaty provides for the peaceful intercourse of two or more nations in the future. How shall questions and disputes arising out of past transactions be settled? One nation has wounded the pride of another, or has trespassed upon its boundaries, or damaged its commerce, or maltreated its citizens; how shall the injured nations find redress without declaring war? Nations which are capable of a humane and enlightened policy may find a peaceful exit from the most exasperating situations: they may submit their differences to a court of arbitration, just as private citizens often submit their differences to arbitration in order to avoid a battle in the courts of law. Nations wishing to settle a dispute by arbitration enter into a preliminary treaty, and agree upon a method of selecting the members of the arbitration board, appoint a time and place for the meeting of the board, and define precisely the question to be settled. The arbitrators, like impartial judges, listen to the claims of the several states, investigate and weigh the facts pertaining to the case, and render a decision in accordance with the facts and the principles of justice. When the decision of a board of arbitration has been fairly obtained, all the nations affected by it are under the most solemn obligations to acquiesce in it. During the nineteenth century international disputes were settled by arbitration more frequently than ever before, and in the number of cases submitted to arbitration the United States led the nations of the world. The increasing success of arbitration, and the expressed desire of many of the great powers to adopt it as a substitute for war, have encouraged lovers of peace to look forward to a time when the countries of the earth shall agree to submit all differences to a permanent board of international arbitration. If such a tribunal shall be constituted and its decisions obeyed, peace may be permanent and much of the money and talents and energy that are devoted to the support of war will be devoted to commerce and industry. QUESTIONS ON THE TEXT 1. Where is power in respect to foreign affairs lodged? Define international law. Name five of the most important of the laws of nations? How are the laws of nations enforced? 2. What is the difference between an ambassador and a minister? What is the legal position of an ambassador resident in a foreign country? 3. What are the duties of an ambassador or minister? 4. What is a consul? a consul-general? What are the duties of a consul? 5. How do the diplomatic representatives of the United States receive their positions? 6. What is a treaty? How are treaties made? How are they enforced? 7. What is the attitude of Congress respecting treaties which call for the outlay of money? 8. What are the duties of a court of arbitration? What has been the example of the United States in respect to arbitration? 9. How may the permanent peace of the world be secured? SUGGESTIVE QUESTIONS AND EXERCISES 1. Name some of the great men who have represented this country at foreign courts. Who is our ambassador to Great Britain? to Germany to France? 2. What is a chargé d'affaires? an envoy extraordinary? 3. Name the most celebrated treaties which the government of this country has entered into and state the leading terms of each. By what treaty has this country profited most? 4. What is the difference between a "convention" and a treaty? 5. Of the international rules mentioned in the text state one (if there is such a one) which is contrary to justice; one which is contrary to the interests of mankind; one which is contrary to natural law. 6. Upon what occasion and for what causes have ministers of foreign countries been requested to leave the United States? 7. Name the principal questions which the United States have submitted to arbitration. Give an account of the Alabama claims. 8. Could the decisions of a permanent international court of arbitration be enforced if all the nations should disarm? 9. What was the object of the Hague conference? What did that conference accomplish? For answers to these questions, see Report of the Hague Peace Meeting. 10. What influences are now at work tending to bring about universal peace? What influences are at work tending to destroy peace! 11. Give an account of the "Monroe Doctrine."' 12. A secretary of the British ambassador was arrested, brought before the judge of a New England town court, and fined for running an automobile too fast: Did the judge have the right to impose the fine? Topics for Special Work.-Treaties: 6, 270-273; 8, 280-292. The Department of State: 16, 77-91. XXXV TAXATION Introductory. We now come to the function of taxation, or the orderly collection of revenue for the support of government. The science which treats of public expenditures and of the means of securing them is called public 'finance. Since under our dual system of government taxation is a concurrent function (p. 49) exercised with sovereign power by the State as well as by the federal government, and since each government determines its own expenditures, public finance in the United States is resolved into two sharply defined systems-national finance and State finance. An adequate study of the taxing function requires the consideration of the following topics: (1) Taxation in its General Aspects, (2) National Finance, (3) State Finance, (4) Public Debt, and (5) Problems of Taxation. In this chapter we shall dispose of the first of these topics. The Cost of Government. It is plain that expenditures for government in the United States must be very heavy, for there are three highly organized governments to be supported: the federal government with its army and navy and courts of law and high officials and thousands upon thousands of employees; the State governments with their numerous departments; the local governments with their school system and charitable institutions and highway improvements and police and sanitary service. The federal government spends about $800,000,000 a year, State and |