Daily capital journal. (Salem, Oregon) 1903-1919, 1912-12-04

exchange therefor, Of the navo, ~
tion which has been establsbos '"
Guantanamo bay, on the soutb ~
the result Of the negotiations tbns ~
ried on an agreement has ho"
reached between the two povos
ments providing for the suitohIo
largement of the Guantanamo bav
tion upon terms which are ort,as,
fair and equitable to all parties 80.
cerned.
AT the request alike of the govern
ment and both political parties IN pon
ANA, an American commission md
took supervision of the recent nroa,
Dental election in that republic. wbor.
our treaty relations, and, indeed or
cry geographical consideration mol.
the maintenance of order and satisfoo
tory conditions of peculiar interest :,
the government of the United STATE.
The elections passed without disordor
and the new administration has on
tered upon Its functions.
The government Of Great Britain
has asked the support of the Upitod
States for the protection of the intar
est Of British holders of the foreigr
bonded debt Of Guatemala. While mi,
government is hopeful of an arrango.
ment equitable to the British bond-
holders, 1t Is naturally unable to view
the question apart from its relation IN
the broad subject of financial stabin.
ty in Central America, in which tbo
policy of the United States does not
permit 1t 10 escape a vital Interest
Through q renewal OF negotiations he.
tween the government of Guatemala
and American bankers, the aim OF
which is loan for the rehabilitation Of
Guatemalan finances, way appears To
be open by which the government Of
Guatemala could promtly satisfy any
equitable and just British claims, and
at the same time so improve its whole
financial position as to contribute
greatly to the increased prosperity Of
the republic and to rebound to the
benefit of foreign investments and for
eign trade with that country. Failing
such an arrangement, It may become
impossible for the government of the
United States to escape its obligations
in connection with such measures as
may become necessary to exact justice
to legitimate foreign claims
In the recent revolution in Nicara-
qua, which, it was generally admitted,
might well have resulted in a general
Central American conflict but for the
Intervention of the United States, the
government Of Honduras was especial
ly menaced; but fortunately peaceful
conditions were maintained within the
borders of that republic. The fnan-
cial condition Of that country remains
unchanged no means having been
found for the final adjustment Of
pressing outstanding foreign claims.
This makes it the more regrettable
that the financial convention between
the United States and Honduras has
thus far failed of ratification. The
government of the United States con-
tlnues to hold iself ready to cooper
ate with the government of Honduras,
which, it is believed, cannot much
longer delay the meeting of its for
eign obligations, and 1t is hoped at the
proper time American bankers will be
willing to cooperate for this purpose.
Necessity for Greater Governmental
Effort in Retention and Expansion
of Our Foreign Commerce.
It is not possible to make to the
congress a communication upon the
present foreign relations of the United
States so detailed as to convey an ad-
equate impression of the enormous
increase in the Importance and activ-
tiles of those relations. If this gov
ernment is really to preserve to the
American people that free opportuni-
ty in foreign markets which will soon
be indispensable to our prosperity
even greater efforts must be made.
Otherwise the American merchant,
manufacturer and exporter will find
many field in which American trade
should logically predominate pre-
empted through the more energetic
efforts of other governments and 9TH
er commercial nations.
There are many ways in which
through hearty cooperation the legls-
Iative and executive branches of this
government can do much. The abso-
lutte essential is the spirit of united et-
fort and singleness of purpose. will
allude only to very few specific eX-
lmples Of action which ought then to
result. America can not take its prop
er place in the most important fields
or its commercial activity unless we
nave a merchant marine. American
commerce and enterprise cannot be ef-
ectively fostered in those fields un-
ess we have good American banks In
hose countries referred to. We need