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 shut in by a Chinese wall. When we have shut all the world out, we find that we have shut ourselves in. The protective system is applied especially to certain selected lines of production. Of course these are stimulated out of proportion to the requirements of the community, and so are exposed to sharp fluctuations of high profits and over-production. At great expense and loss we have carried out the policy of the home market, and now we are called upon at great expense and loss to go out and conquer territory in order to widen the market. In order to have trade with another community the first condition is that we must produce what they want and they must produce what we want. That is the economic condition. The second condition is that there must be peace and security and freedom from arbitrary obstacles interposed by government. This is the political condition. If these conditions are fulfilled, there will be trade, no matter whether the two communities are in one body politic or not. If these conditions are not fulfilled, there will be no trade, no matter what flag floats. If we want more trade we can get it any day by a reciprocity treaty with Canada, and it will be larger and more profitable than that of all the Spanish possessions. It will cost us nothing to get it. Yet while we were fighting for Puerto Rico and Manila, and spending three or four hundred millions to get them, negotiations with Canada failed through the narrow-mindedness and bigotry which we brought to the negotiation. Conquest can do nothing for trade except to remove the political obstacles which the conquered could not, or would not, remove. From this it follows that the only justification for territorial extension is the extension of free and enlightened policies in regard to commerce. Even then extension is an irksome necessity. The question always is, whether