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Rh war between Chili and the allied states of Peru and Bolivia. Its friendly counsel was offered in aid of the settlement of the disputed boundary-line between Mexico and Guatemala, and was probably influential in averting a war between those countries. On 29 July, 1882, a convention was made with Mexico for relocating the boundary between that country and the United States from the Rio Grande to the Pacific, and on the same day an agreement was also effected permitting the armed forces of either country to cross the frontier in pursuit of hostile Indians. A series of reciprocal commercial treaties with the countries of America to foster an unhampered movement of trade was recommended. Such a treaty was made with Mexico, 20 Jan., 1883, Gen. U. S. Grant and Mr. Wm. H. Trescott being the U. S. commissioners, and was ratified by the senate 11 March, 1884. Similar treaties were made with Santo Domingo 4 Dec., 1884; and 18 Nov., 1884, with Spain, relative to the trade of Cuba and Porto Rico, both of which, before action by the senate, were withdrawn by President Cleveland, who, in his message of 8 Dec., 1885, pronounced them inexpedient. In connection with commercial treaties President Arthur advised the establishment of a monetary union of the American countries to secure the adoption of a uniform currency basis, and as a step toward the general remonetization of silver. Provision for increased and improved consular representation in the Central American states was urged, and the recommendation was accepted and acted upon by congress. A Central and South American commission was appointed, under the act of congress of 7 July, 1884, and proceeded on its mission, guided by instructions containing a statement of the general policy of the government for enlarging its commercial intercourse with American states. Reports from the commission were submitted to congress in a message of 13 Feb., 1885. Negotiations were conducted with the republic of Colombia for the purpose of renewing and strengthening the obligations of the United States as the sole guarantor of the integrity of Colombian territory, and of the neutrality of any interoceanic canal to be constructed across the isthmus of Panama. By correspondence upon this subject, carried on with the British government, it was shown that the provisions of the Clayton-Bulwer treaty of 19 April, 1850, can not be urged, and do not continue in force in justification of interference by any European power, with the right of the United States to exercise exclusive control over any route of isthmus transit, in accordance with the spirit and purpose of the so-called &ldquo;Monroe doctrine.&rdquo; As the best and most practicable means of securing a canal, and at the same time protecting the paramount interests of the United States, a treaty was made with the republic of Nicaragua, 1 Dec., 1884, which authorized the United States to construct a canal, railway, and telegraph line across Nicaraguan territory by way of San Juan river and Lake Nicaragua. This treaty was rejected by the senate, but a motion was made to reconsider the vote. Before final action had been taken it was withdrawn, 12 March, 1885, by President Cleveland, who withheld it from re-submission to the senate, and in his message of 8 Dec., 1885, expressed his unwillingness to assert for the United States any claim of paramount privilege of ownership or control of any canal across the isthmus. Satisfaction was obtained from Spain of the old claim on account of the &ldquo;Masonic,&rdquo; an American vessel, which had been seized at Manila unjustly, and under circumstances of peculiar severity. Prom the same government

was also secured a recognition of the conclusiveness of the judgments of the U. S. courts naturalizing citizens of Spanish nativity. From the British government a full recognition of the rights and immunities of naturalized American citizens of Irish origin was obtained, and all such that were under arrest in England or Ireland, as suspects, were liberated. Notice was given to England, under the joint resolution of congress of 3 March, 1883, of the termination of the fishery clauses of the treaty of Washington. A complete scheme for re-organizing the extra-territorial jurisdiction of American consuls in China and Japan, and another for re-organizing the whole consular service, were submitted to congress. The former recommendation was adopted by the senate. The balance of the Japanese indemnity fund was returned to Japan by act of 22 Feb., 1883, and the balance of the Chinese fund to China by act of 3 March, 1885. A bill that was passed by congress prohibiting the immigration of Chinese laborers for a term of twenty years was vetoed, 4 April, 1882, as being a violation of the treaty of 1880 with China, which permitted the limitation or suspension of immigration, but forbade its absolute prohibition. The veto was sustained and a modified bill, suspending immigration for ten years, was passed 6 May, 1882, which received executive approval, and also an amendatory act of 5 July, 1884. Outstanding claims with China were settled, and additional regulations of the opium traffic established. Friendly and commercial intercourse with Corea was opened under the most favorable auspices, in pursuance of the treaty negotiated on 22 May, 1882, through the agency of Com. R. W. Shufeldt, U. S. N. The friendly offices of the United States were extended to Liberia in aid of a settlement, favorable to that republic, of the dispute concerning its boundary-line, with the British possession of Sierra Leone. The flag of the international association of the Congo was, on 22 April, 1884, recognized first by the United States. A commercial agent was appointed to visit the Congo basin, and the government was represented at an international conference at Berlin, called by the emperor of Germany, for the promotion of trade and the establishment of commercial rights in the Congo region. The renewal of the reciprocity treaty with Hawaii was advised. Remonstrances were addressed to Russia against any prescriptive treatment of the Hebrew race in that country. The international prime meridian of Greenwich was established as the result of a conference of nations, initiated by the U. S. government, and held at Washington. 1 Oct. to 1 Nov., 1884. In response to the appeal of Cardinal John McCloskey, of New York, the Italian government, on 4 March, 1884, was urged to exempt from the sale of the property of the propaganda the American college in Rome, established mainly by contributions from the United States, and in consequence of this interposition the college was saved from sale and virtual confiscation. On 3 Aug., 1882, a law was passed for returning convicts to Europe, and on 26 Feb., 1885, importation of contract-laborers was forbidden.

The suspension of the coinage of standard silver dollars, and the redemption of the trade dollars, were repeatedly recommended. The repeal of the stamp taxes on matches, proprietary articles, playing-cards, bank checks and drafts, and of the tax on surplus bank capital and deposits, was recommended. These taxes were repealed by act of congress of 3 March, 1883; and by executive order of 25 June, 1883, the number of internal revenue collection districts was reduced from 126 to 83, The