Gilpin observer., 1909-12-09
Currency Reform, Waterways, Creation Of Body
to Deal With Interstate Commerce
and Other Topics Handled.
Government Expenditures and Revenues Most Important Question
Relations with Other Nations, Nicaragua Excepted,
Are Declared To Be Generally Satisfactory.

relations with Venezuela have been set
| tied within the past few months and that,
under the enlightened regime now direct
Ing the government of Venezuela, provi-
| sion has been made for arbitration of the
remaining case before The Hague tri-
| bunal.
On July 3o 1909. the government of
Panama agreed after considerable nego-
tiation. to indemnify the relatives of the
| American officers and sailors who were
| brutally treated. one of them having, In
deed. been killed by the Panama police
| this year.
The sincere desire of the government of
Panama to do away with situation
| where such an accident could occur is
manifest In the recent request in compli-
ance with which this government has
lent the services of an officer of the army
| to be employed by the government of
Panama as instructor of police.
This government was obliged to inter-
| vene automatically to bring about arbi-
tration or settlement OF the claim of the
Emery Company against Nicaragua.
which II had long before been agreed
| should be arbitrated. A settlement Of
| this troublesome case was reached by
| the signature of protocol on September
| Is. 1909
| Many years ago diplomatic Intervention
became necessary to the protection of the
interests In the American claim of Alsop
| d Co. against the government Of Chile
The government of Chile had frequently
admitted obligation in the case and had
promised this government to settle it.
There had been two abortive attempts to
do SO through arbitral commissions
| which failed through lack of Jurisdiction.
Now. happily. as the result of the recent
| diplomatic negotiations, the governments
| of the United States and OF Chile. actu-
ated by the sincere desire to free from
| any strain those cordial and friendly re-
lations upon which both set such store
nave agreed by protocol to submit the
| controversy to dehnitive settlement by
his Britannia majesty. Edward VII.
! Since the Washington conventions of
lsU were communicated to the govern
| ment of the United States as a consult
| Ing and advisory party. this government
has been almost continuously called upon
| by one or another. and in turn by all of
| the five Central American republics to
| exert itself for the maintenance of the
conventions. Nearly every complaint has
been against the Zelaya government of
Nicaragua. which has kept Central
Amerca In constant tension and turmoil.
| The responses made to the representa-
| tions OF Central American republics as
| due from the United States on account
| OF its relation to the Washington conven-
TONS have been at all times conservative
and have avoided. SO far as possible any
| semblance Of interference. although II is
| very apparent that the considerations of
geographic proximity to the Canal Zone
and OF the very substantial American in
terests In Central America give to the
United States a special position In the
zone OF these republics and the Carib-
bean sea.
/ need not rehearse here the patient ef-
forts OF this government to promote
peace and welfare among these republics
EFFORTS which are fully appreciated by
the majority of them, who are loyal to
their true interests 1t would be no less
unnecessary to rehearse here the sad
tale of unspeakable barbarities and op-
preston alleged to have been committed
by the Zelaya government. Recently two
Americans were put to death by order of
President Zelaya himself. They were Of
hcers In the organized forces of a revo-
luton which had continued many weeks
and was in control OF about half of the
republic. and such, according to the
modern enlightened practice OF civilized
nations, they were entitled to be dealt
with as prisoners OF war
AT the date when this message Is print
ed this government has terminated dip
lomatic relations with the Zelaya govern
ment. for reasons made public in a COM
municatlon to the former Nicaragua
charge d'afraires. and is intending to take
such future steps as may be found most
consistent with its dignity, its duty to
American interests and its moral obliga-
tions to Central America and to civiIiza-
ton.
The Far East.
In the far east this government pre-
serves unchanged Its policy of support
ing the principle of equality OF opportu-
nifty and scrupulous respect for the integ-
rity or the Chinese empire. to which pol
Icy ara pledged the Interested powers of
both east and west
Mention is made OF the sending of
students to America by the Chinese
government. OF China's progress
toward the eradication OF the opium
evil, and OF this governments con.
tinued cordial relations with the JAP
anese empire.
The Department Of State.
Favorable action by congress on the
estimates submitted by the DEPART
ment OF state is urged, especially legis.
lation for the development and reor.
ganization OF the department to make
1t efficient In furthering our foreign
trade. Improvement In the consular
service is noted. Mr.. Taft then says:
Under n provision of the act of Au-
gust 8. 1902 l have appointed three
officials to assist the officers of the
government In collecting information
necessary to a wise administration of
the tariff act of August 6, 1909. As to
questions of customs administration
they are cooperating with the officials
OF the TREASURY department and as to
matters OF the needs and the exigen-
cies OF our manufacturers aud export
ers. with the department OF commerce
and labor. in its relation to the domes-
tic aspect of the subject of foreign
commerce. In the study of foreign
tarih treatment they will assist the
bureau OF trade relations OF the de-
partment OF state It Is hoped thus to
coordinate and bring to bear upon this
most important subject all the ngencieo
of the govcrnU snt which can contrib
ute anything 90 Its efficient handling.
As n consequence OF Section OF
the tarin act of August 8. 1909, Il be-
comes the duty of the secretary OF
state to conduct us diplomatic business
all the negotiations necessary to place
him In position to advise me as to
whether not n pnrticular coupfrv