of that metropolis, there were no steamers from the United States, and our flag was seen upon but 2 per cent. of the sailing vessels. Here is a nation purchasing in Europe $70,000,000 worth of merchandise every year, and only spending about $4,000,000 in the United States, and these $4,000,000 represent articles, such as petroleum, lumber, lard and other pork products, which could not elsewhere be obtained."

THE INTERNATIONAL CONFERENCE.

The Senate passed the Frye bill on June 17, 1886, but it did not become a law until May 24, 1888, when the INTERNATIONAL AMERICAN CONFERENCE became a possibility.

It was for this Conference to give wider, fuller, more learned and disinterested consideration to the question of trade relations and reciprocal commerce between the American nations than ever before. It was called by the President to meet in Washington, October 2, 1889. Invitations were duly issued, and the Conference met with delegates present from Argentine, Bolivia, Brazil, Chili, Colombia, Costa Rica, Ecuador, Guatemala, Hayti, Honduras, Mexico, Nicaragua, Paraguay, Peru, Salvador, United States, Uruguay, Venezuela.

Hon. James G. Blaine was elected President of the Conference. It remained in session until April, 1890, and discussed and reported upon all the subjects prescribed in the Act authorizing the call, to wit:

Plan of Arbitration; Reciprocity Treaties; Inter-Continental Railway; Steamship Communication; Sanitary Regulations; Customs Regulations; Common Silver Coin; Patents and Trade Marks; Weights and Measures; Port Dues; International Laws; Extradition Treaties; International Bank.

In the discussions upon "Reciprocity Treaties," all of which were very able and interesting, two lines of thought appeared. That which represented all of the countries except Argentine and Chili, was in the direction of reciprocity, whose advantages were conceded, and whose practical operation needed but the encouragement of some acceptable concession on the part of the United States. The thought of Argentine and Chili seemed to be that reciprocity was impracticable, unless enlarged to suit the world, and that the United States was not yet so commercially strong, or was too hampered with her tariff system to offer the necessary concessions to all the nations. The attitude and the logic of these two States were fully met by the delegates of the United States in the Conference, showing in detail that the first stage of national growth is agricultural, the second is manufacturing, and the third is commercial. The first two stages with us have been reached, and we now enter upon the third. The same restless

energy, the same enterprise, and the same inventive genius which gave success to agriculture and manufactures will mark the development of commerce.

"The spirit of enterprise begins to spread like contagion into Central America. Imagination already paints on her canals the commerce of the world. The locomotive is there a messenger of peace, the steel rail a bond of friendship.

"Colombia and Venezuela and Brazil and Ecuador and Peru already feel the irresistible impulse which impels to a closer union. The Argentine and Chili may hesitate for a time, but finally they too will join hands with their sister Republics, and joyfully assist to fulfil the bright destiny that awaits us all."

CONFERENCE REPORT AND BLAINE'S REVIEW.

The Conference adopted a Report which recognized the policy of reciprocity and the "need of closer and more reciprocal commercial relations among American States." Secretary Blaine submitted this Report to the President, June 19, 1890, with an exhaustive review of its contents. This review was so exhaustive, and is, moreover, such an important part of the literature of reciprocity, that inability to publish it here in full, for lack of space, is greatly regretted. But its gist was that out of a total of $233,000,000 imports furnished to Chili and Argentine alone in 1888, England contributed $90,000,000, Germany $43,000,000, France $34,000,000, the United States only $13,000,000, and this, notwithstanding the facts that our ports were nearest, and the bulk of those imports were of articles we were actually manufacturing better and as cheaply as foreign nations.

That in 1868 our total exports were $375,737,000, of which $53,197,000, or 14 per cent., went to Spanish America, while in 1888 our total exports were $742,368,000, of which $69,273,000, or only 9 per cent., went to Spanish America.

That it was the unanimous judgment of the delegates that our exports to these countries and the other Republics could be increased to a great extent by the negotiations of proper reciprocity treaties.

That lack of means for reaching their markets was the chief obstacle in the way of increased exports. The carrying trade has been controlled by European merchants who have forbidden an exchange of commodities. Under liberal encouragement from the government and the establishment of regular steamship lines, France increased her exports to South America from $8,292,000 in 1880 to $22,996,000 in 1888. By the same means Germany increased her exports

to South America from $2,365,000 in 1880 to $13,310,000 in 1888.

That the Conference believes that while great profit would come to all countries under reciprocity treaties, the United States would be far the greatest gainer, and that especially since 87 per cent. of our imports from those countries came in duty free, while nearly all our exports to them were heavily dutiable at their ports, in some cases to the extent of prohibition.

That increased exports would draw alike from our farms, factories and forests, such being the character of the articles required by those countries. A steamer load from New York to Rio Janeiro, which was traced to its origin, as to the articles which comprised it, showed that thirty-six of our States and Territories had contributed to the cargo.

That, excepting raw cotton, our four largest exports are breadstuffs, provisions, petroleum and lumber. In 1889 our export of these articles was:—Breadstuffs, $123,876,423, of which only $5,123.528 went to Latin America; Provisions, $104,122,328, of which only $2,507,375 went thither; Petroleum, $44,830,424, of which $2,948,149 went thither; Lumber, $26,907,000, of which $5,039,886 went thither. Since the United States is almost the only source of supply for these articles, which rank as necessaries of life, and there are 50,000,000 of population in Latin America, the advantages of a direct and larger trade are apparent.

That fifteen of the seventeen Republics in the Conference indicated their desire to enter upon reciprocal commercial relations with the United States; the remaining two expressed equal willingness, could they be assured that their advances would be favorably considered.

That to "escape the delay and uncertainty of treaties it

has been suggested that a practicable and prompt mode of testing the question was to submit an amendment to the pending tariff bill, authorizing the President to declare the ports of the United States free to all the products of any nation of the American hemisphere upon which no export duties are imposed, whenever and so long as such nation shall admit to its ports free of all national, provincial (state), municipal, and other taxes, our flour, corn-meal, and other breadstuffs, preserved meats, fish, vegetables and fruits, cot ton-seed oil, rice and other provisions, including all articles of food, lumber, furniture and other articles of wood, agricultural implements and machinery, mining and mechanical machinery, structural steel and iron, steel rails, locomotives, railway cars and supplies, street cars, and refined petroleum. These particular articles are mentioned because they have been most frequently referred to as those with which a valuable exchange could be readily effected. The list could no doubt be profitably enlarged by a careful investigation of the needs and advantages of both the home and foreign markets.

"The opinion was general among the foreign delegates that the legislation herein referred to would lead to the opening of new and profitable markets for the products of which we have so large a surplus, and thus invigorate every branch of agricultural and mechanical industry. Of course the exchanges involved in these propositions would be rendered impossible if Congress in its wisdom should repeal the duty on sugar by direct legislation, instead of allowing the same object to be attained by the reciprocal arrangement suggested."

RECIPROCITY AND THE ACT OF 1890.

We have now reached a period in the history of reciprocity when it was to be given practical application, out