corporated under the laws of the state in which it is located and not enforcing certain regulations as to the listing of securities, dealing on margin, wash sales, etc. Clearing .house associations of which national banks are members, the report recommended, should also be required to incorporate under the laws of their states, and should be prohibited from excluding solvent banks from membership because of their small size and from prescribing rates of interest, discount, or exchange. Finally, for the prevention of concentration of control of money and credit, the report recommended many amendments to the national banking laws, prohibiting interlocking directorates, voting trusts, etc., restricting consolidations of banks, prescribing cumulative voting in boards of directors, and regulating investments, loans, and transactions in corporation securities. The Campaign Fund Investigation. -The scope of the inquiry into campaign funds (A. Y. B., 1912, p. 48) conducted by a special committee of the Senate under the chairmanship of Senator Clapp (Minn.) by authority of a Senate resolution of Aug. 26, 1912, was extended by resolution of the Senate on Jan. 23 to cover the source and disbursement of the funds of the Presidential and Congressional campaigns of 1912. The committee failed to agree upon a report for presentation to the Sixty-second Congress. a The Anti-Trust Law.-The Senate Committee on Interstate Commerce reported on Feb. 27 the results of an inquiry undertaken pursuant to resolution (S. Res. 98, 62d Cong., 1st sess.) adopted by the Senate on July 26, 1911, to determine "what changes are necessary or desirable in the laws of the United States relating to the creation and control of corporations engaged in interstate commerce." The occasion of the investigation was the new "standard of reason" in the interpretation of the Sherman Act established by the Supreme Court in the decision in the Standard Oil Co. case (A. Y. B., 1911, pp. 59, 168). The report has a special importance in view of President Wilson's intention to urge additional anti-trust legislation during the current session of Congress (see The Sixty-Third Congress, infra). It urged the immediate enactment of amendments to the antitrust law to supply the Court with such legislative tests and standards as will limit the scope of judicial discretion. ... Congress should, in so far as possible, specifically prescribe certain conditions upon which persons and corporations shall be permitted to engage in commerce among the states and with foreign nations. These conditions should be of a character that will tend to preserve reasonable competition, or substantially competitive conditions, and to compel independence in both organization and conduct. They should be so clear that the business world can understand them and go confidently forward, guided by them. Our legislation should further recite certain known forms of combination and declare them to be unlawful because in With respect to restraint of trade. other forms, we should declare that if restraint is established the burden of proof is upon the persons or corporations involved to show that the restraint is reasonable. For the better administration and enforcement of the anti-trust law, the report recommended the creation of a trade commission with jurisdiction over all corporations, nrms, and individuals engaged in interstate commerce, excepting common carriers, analogous to that of the Interstate Commerce Commission. The Committee submitted without reporting the text of a bill (S. 5485, 62d Cong., 2d sess.) to create an Interstate Trade Commission of three members, appointed by the President for nine years at an annual salary of $10,000, with the powers and duties suggested in the report. The session ended without a report on either this bill or another much more radical measure "to create an Industrial Commission" introduced in the Senate by Mr. Bristow (Kans.) on Jan. 6 (S. 7970, 62d Cong., 3d sess.). Bills embodying many of the features of the report have been introduced in the Sixtythird Congress by Senator La Follette, Mr. Henry, and others, but the Administration has deferred disclosing its attitude beyond the promise of additional anti-trust legislation. Impeachment of Judge Archbald.— The trial on impeachment of Judge Robert W. Archbald occupied the Senate during the early weeks of the session. After 16 years' service on the bench in the state courts of Penn sylvania, the last 13 years as presiding judge of the Forty-fifth Judicial District, Judge Archbald was арpointed a U. S. district judge for the Middle District of Pennsylvania on March 29, 1901. On Jan. 31, 1911, he was elevated to the bench of the U. S. Circuit Court and designated to serve as one of the judges of the U. S. Commerce Court. An inquiry into his official conduct, inspired by complaints presented to the Interstate Commerce Commission early in the year, was directed by resolution of the House of Representatives of May 4, 1912, and on July 11, 1912, by a vote of 220 to 1, the House resolved upon his impeachment on 13 charges reported by unanimous vote of the Committee on the Judiciary, which were laid before the Senate on July 15, 1912 (A. Y. B., 1912, p. 47). The trial was begun in the Senate, sitting as a Court of Impeachment, on Dec. 3, 1912, and on Jan. 13 Judge Archbald was found guilty on five of the charges preferred against him. articles of impeachment, and the result of the votes thereon, are given below; articles 7 to 12 refer to acts prior to the designation of Judge Archbald as one of the judges of the Commerce Court: The 3. That he attempted to influence the Lehigh Valley Railroad, then a litigant before his court, to relinquish rights to a culm dump near Shenandoah, Pa. Guilty, 60 to 11. 4. That he secured private letters and arguments from the attorney for a railway company to sustain an opinion in favor of the company in a case before his court. Guilty, 52 to 20. 5. That he influenced a subsidiary of the Philadelphia & Reading Railroad to grant a lease on a coal property to a third party, from whom he received a note for $500. Guilty, 66 to 6. 6. That he attempted to influence the Lehigh Valley Railroad to purchase certain coal lands near Wilkesbarre, Pa. Not guilty, 24 to 45. 7. That he accepted certain stock from a litigant in his court in whose favor he had effected a settlement of an insurance. case. Not guilty, 29 to 36. 8. That he attempted to have a note for $500 discounted by litigants in his court. Not guilty, 22 to 42. 9. That he influenced an attorney practicing in his court to accept this note for discount. Not guilty, 23 tho 39. 10. That he accepted a trip to Europe at the expense of a director in several railroads. Not guilty, 1 to 65. 11. That he accepted from attorneys praticing in his court, for the purpose of this trip, a sum in excess of $500. Not guilty, 11 to 51. 12. That he appointed as jury commissioner for his judicial district the general attorney for the Lehigh Valley Railroad. Not guilty, 19 to 46. 13. That he had sought to obtain credit from and through persons interested in suits in his court; that he had carried on, while a judge, a general business in property for speculation and profit; and culm dumps, coal lands, and other coal that he had improperly influenced railroad officials. Guilty, 42 to 20. A resolution removing Judge Archbald from office was carried without a dissenting vote; and by a vote of 39 to 35 the Senate imposed the extreme penalty provided by the Constitution, disqualifying him forever "to hold and enjoy any office of honor, trust, or profit under the United States." The impeachment of Judge Archbald was the ninth to come before the Senate of the United States; the third in which the accused was found guilty and removed from office; and the first in which the sentence included disqualification. The Sixty-second Congress.-The Sixty-second Congress, in the words of the New York Times, "was a busy, excited, confused body which undertook much and brought about little." Through the resentment of the country against the Payne-Aldrich tariff of 1909, the Democrats secured a majority of over 60 in the House and reduced to ten the Republican majority in the Senate. In political history the Sixty-second Congress will take an important place as the transition between Republican and Democratic rule, but its record of substantial legislation was comparatively small. It enacted, in addition to the measures of the last session described above, an important amendment to the pure-food law, an eight-hour law covering Government contracts, campaign-publicity laws, a "dollar-a-day" pension act which added an annual charge of about $25,000,000 to the pension account, acts for the admis sion of Arizona and New Mexico to statehood, the administration of the Panama Canal and the establishment of a Children's Bureau, and an amendment to the Constitution providing for the direct election of Senators. Its efforts to secure downward revision of the tariff, designed to a certain extent for political effect, were defeated by the vetoes of President Taft. The most spectacular extra-legislative incidents of the two years were the demand for the abrogation of the Russian treaty, the disqualification of Senator Lorimer, and the impeachment of Judge Archbald. The investigations of campaign funds, of the money trust, the shipping trust, and the United States Steel Corporation were more or less sensational, but were adapted to partisan rather than public ends. The Senate ratified a number of treaties of importance, but emasculated the arbitration treaties with Great Britain and France advocated by President Taft. On the whole, the record of the Sixty-second Congress reflects the unrest and uncertainties of an expiring political epoch. THE END OF REPUBLICAN ADMINISTRATION The President and Congress.-Of the relations between President Taft and Congress the most striking feature was the coalition of the Progressive Republicans with the Democratic minority in the Senate to defeat confirmation of some 1,500 executive nominations. Late in January the radicals united with the regular Republicans in a decision to force the Democrats to consent to the confirmation of the hundreds of nominations then pending, but an attempt to carry out the plan was defeated by the defection of three progressive Senators, La Follette (Wis.), Bristow (Kans.), and Poindexter (Wash.), which practically destroyed the small Republican majority. On March 1 the Democrats consented to the confirmation of a few important civil appointments along with several hundred promotions in the Army and Navy, but the bulk of President Taft's nominations to civil office were reserved for the approval of Mr. Wilson. Foreign Relations. On the admin- Committee on Interoceanic Canals on istrative side the notable incidents Feb. 17 by a vote of 10 to 5. of the closing weeks of President Taft's term arose chiefly out of the foreign relations of the United States. The disturbances in Mexico (A. Y. B., 1912, pp. 73-7, 112-3), culminating in the overthrow of the Madero Government, on Feb. 18, and the progress of the controversy with Great Britain over the provision of the Panama Canal Act of Aug. 24, 1912, exempting American coastwise vessels from payment of tolls (A. Y. B., 1912, pp. 82-4, 271) are reviewed in detail elsewhere (see III, International Relations; and IV, Foreign Affairs). In respect to Mexico the President continued to disregard the clamor of certain American interests for intervention and pursued his policy of patient non-interference. On Jan. 4 Mr. Taft declared his willingness to submit the tolls dispute to arbitration on a clearly defined issue (see infra, “President Taft's Speeches"), but his term ended before the question of arbitration was definitely raised. In Congress Senator Root (N. Y.) was the principal spokesman of a widespread and powerful sentiment of disapproval of the attitude of the Administration on this question. He introduced a bill (S. 8114, 62d Cong., 3d sess.) on Jan. 14 for the repeal of the discriminatory clause, but the Senate declined to consider a retreat from the position taken by Secretary of State Knox in his reply to the British protest. Sen ator Root's bill was tabled by the The President's Messages.-President Taft's last annual message to Congress was submitted in three sections during December, 1912 (A. Y. B., 1912, p. 49). The first, dated Dec. 3, dealt exhaustively with the foreign relations of the United States and the results of the foreign policy of his administration. The second section, dated Dec. 6, dealing with fiscal, judicial, military, and insular affairs, urged consideration of the plan of currency reform recommended a budget, the President urged the crea- 10 The President Taft's Speeches.-During the closing weeks of his administration Mr. Taft added to his long series of public addresses on national problems a number of speeches which were listened to with peculiar interest. Before the International Peace Forum in New York on Jan. 4, the President reaffirmed his belief that the clause of the Panama Canal Act exempting American coastwise shipping using the canal from payment of tolls violated none of the treaty rights of Great Britain, but declared his will A ingness, should diplomatic negotia- | New York on Jan. 4 before the Union tions fail, to submit the question to League Club of New York and Philathe arbitration of an impartial tri- delphia and the Republican Clubs of bunal, composed, as he explained New York and Massachusetts. later, of equal numbers of representa- candid review of the record of his tives of the two countries. In the administration and the causes of the same address and on two subsequent overwhelming defeat of 1912 introoccasions, at the B'nai B'rith celebra- duced a forecast of the political fution in New York on Jan. 19 and ture of the party, which is quoted at before the American Peace and Arbi- length on another page (see Politics tration League in New York on Feb. and Parties, infra). 22, Mr. Taft discussed the rate of his arbitration treaties with Great Britain and France (A. Y. B., 1911, pp. 93-6; 1912, p. 101). The vote of the Senate in striking out the provision for joint commissions of inquiry on the arbitrability of differences had established, he said, President of the United States to a a proposition that the Senate of the United States may not consent with the treaty that shall bind the United States to arbitrate any general class of questions that may arise in the future, but there must always be a condition that the Senate may subsequently, when the facts arise, determine whether in its discretion the United States ought to arbitrate the issue. "This," he said, "relegates the United States to the rear rank of those nations which are to help the cause of universal peace." The introduction in Congress by Mr. Jones (Va.) on Jan. 14 of a bill to grant independence to the Philippine Islands within eight years (H. R. 28026, 62d Cong., 3d sess.) inspired two speeches on the Philippine question, before the Ohio Society of New York on Jan. 18 and the Ohio Society of Washington on Jan. 29. In both President Taft urged Mr. Wilson to hold the Philippines; they should not be separated from the United States, he said, within two or three generations, and an immediate grant of independence to a people not ready for self-government, now secure and prosperous under the protection of the United States, could only result in humiliation and confusion. This view Mr. Taft has reiterated on many occasions during the closing weeks of the year in speeches dealing with the radical changes introduced in the Philippine policy by President Wilson (see The Democratic Administration, infra). President Taft's final message to the Republican party was delivered in President Taft's Administration.— Mr. Taft was elected to the Presidency by a party in which the schism between conservatism and radicalism was already pronounced. In the East the old-time leaders and principles maintained their ascendency over the rank and file of the Republican party, but in the West they were superseded by new ideals and aspirations. Mr. Taft cast in his fortunes with the older men. The Republican party was pledged to a downward revision of the tariff, which had been in abeyance as a political issue since McKinley's administration. Mr. Taft sealed the doom of orthodox Republicanism by his approval of the Payne-Aldrich tariff of 1909. In the Congressional elections of 1910 the Democrats secured a large majority in the House of Representatives and proceeded, with the aid of the progressives in the Senate, to enact a real downward revision of the tariff. Mr. Taft vetoed all the Democratic bills, on the ground that they failed to take account of the basis for scientific reduction of rates available in the reports of the Tariff Board created by the PayneAldrich Act, and his own plan for reducing the cost of living was defeated by Canada's repudiation of the reciprocity treaty. On the other hand, the activity of his Attorney-General in the enforcement of the anti-trust law alienated the business interests whom he was accused of serving. Thus, Mr. Taft lost the support of both wings of the Republican party and went down to disastrous defeat in 1912. As a party leader Mr. Taft failed to discern the inevitable triumph of the progressive wing, and his political ineptitude led him into spectacular mistakes. Partly through his own negligence, partly through the perfidy and abuse of his enemies, his blunders were |