passed by the German court upon the two correct information about America, and the British officers convicted of spying on a communication to Americans of correct inGerman fortress. The two incidents worked formation about Germany, has been followed upon British sensibilities until press and platform overflowed with anti-German, proAmerican enthusiasm.

What of

by the donation of a large gift to Columbia University for the purpose of founding and equipping a "Deutsches Haus." The donor of this fund, Mr. Edward D. Adams, PresiOnly a few days later the Dutch dent of the Germanistic Society of America, Holland and Government permitted it to be aims at making the "Deutsches Haus" a bureau Belgium ? known, in a discreet, semi-official of information regarding educational instituway, that it had decided to expend a large tions and movements in both countries. It sum of money in erecting a fortress at Flush- is, moreover, to contain a “Germanic Instiing, at the mouth of the Scheldt River. Hol- tute" equipped for the study of German land owns both banks of the Scheldt at its history and civilization, under the direction mouth, and by fortifying these could keep of a competent German scholar. To add to out any ships bound for Antwerp, the Bel- these evidences of mutual goodwill and esgian commercial center, less than one hun- teem, we must not forget to record the gift dred miles up the river. This fortification of $1,250,000, made last month by Mr. Anproject is regarded in England as having been drew Carnegie as a Hero Fund for Germany, determined upon at the behest of the German for the purpose of "rewarding acts of valor Kaiser. It has been known that the Dutch and self-sacrifice in times of peace." are almost in a panic over a possible absorption by Germany, and have adopted a policy Not Endangered Our German friends have apparof conciliation in advance. Antwerp is the by Speeches, ently become so desirous of culseagate of Belgium, and Great Britain is tivating our goodwill that many under treaty obligations to defend the realm of them, both at home and in this country, of King Albert against any outside attack. deeply resented the fancied slight in the indisTherefore, declare the British alarmists, by creet speech of Commander Sims's, referred preventing a British naval force from reach- to above. The cruise of the American fleet ing Antwerp, Holland has played the game in December, which included the stay at of Germany against England. We had some- London, during which this now famous thing to say last month as to just how definite speech was delivered, did not give the warare German aims and ambitions with regard ships time to stop at any German port. This to Holland and Belgium, quoting from an fact made the Sims speech seem more obarticle by Sir Harry Johnston, in a recent jectionable. It is now generally understood number of the Nineteenth Century. The that another cruise is being arranged for Russo-German agreement over Persia, made public during the first days of the year, acted as further fuel to the flame of British feeling against German ambitions.

GermanAmerican

or Potash

the coming summer, during which an official visit will be made to German ports. Several German writers, including the well-known economist, Count von Reventlow, have published articles and given interviews expressing the opinion that the fleet's avoidance of German waters might be due to existing economic differences between the United States and Germany, particularly in regard to the potash dispute. Of course, such a statement is too childish to merit any serious attention. The differences between the governments at Washington and Berlin over the question of German restrictions of the trade in potash and its effect upon contracts made by American fertilizer companies are in a fair way to be settled very shortly with satisfaction to both sides of the controversy. The German

Much has been done during recent years to strengthen the offiFriendship cial friendship between the American and German governments, and many efforts have been made to make the two peoples understand each other so that the official friendship might gradually find deeper roots in public consciousness. The establishment, some years ago, of the Roosevelt Exchange Professorship at the University of Berlin, and the Kaiser Wilhelm Professorship at Harvard, have permitted the delivery of a number of highly instructive and useful lectures in this country and in Germany, which have con- Government desires to conserve its potash duced greatly toward the promotion of cor- resources. This it has an undoubted right dial relations. The recent foundation, in the to do. The authorities at Berlin, however, German capital, of the "Amerika Institut," will not deny that the regulations recently for the dissemination among Germans of imposed upon the potash trade, work a hard

ship to some American manufacturers of hereafter be a more than interested spectator in fertilizers. There can be no doubt that these the game of diplomacy being played by Russia merchants will be accorded fair play and the and England, which has for its apparent obfulfillment of treaty provisions. In another ject the ultimate dismemberment of Persia. article, on page 212 this month, we give an outline of the main points of this controversy, as well as supplying some interesting information as to Germany's advantageous position as the world's source of this precious soil constituent, potash.

The Kaiser's

Labor Legis-
lation

in France

The bill recently introduced in the French Chamber of Deputies by the Briand ministry to prevent general strikes in the future is a remarkably statesmanlike and progressive measure. The interruption of public service of On the eighteenth day of last any kind, says the report accompanying the European month, with quiet but appro- measure, is a crime. At the same time, pubPolicies priate ceremonies, the German lic service employees, like other workers, people commemorated the fortieth anniver- "have a right to amelioration of their consary of the proclamation of the new German dition." For the purpose of reconciling these Empire at Versailles. This is the culmina- two points of view the government bill protion of a series of celebrations of Prussian poses to give the workers a weapon as powvictories over France. The ceremonies, how- erful as the strike and yet legal and reasonever, have been of such a nature and were able.' Provision is made for the creation of observed in such a way that no offense has a "Conciliation Commission," composed of been taken by the French people. At any representatives of railroad and other public rate, no public manifestation of displeasure service companies, as well as the adminishas been recorded. It seems fortunate that, trative boards of all the government-controlled while these German triumphs in war were systems. This commission will meet at regbeing commemorated, the imperial authorities ular intervals, and when conciliation fails, at Berlin were completing the arrangements resort will be had to compulsory arbitration. for promulgating a constitution for Alsace- The commission is given power, in cases Lorraine, the two provinces conquered from the French in 1871. This new constitution, while it does not grant autonomy to the Alsatians and the Lorrainers, does give them a more dignified and independent status in the imperial family of states.

Germany's Game in the Near East

any

where the decision imposes an additional expense upon the companies, to indicate a method whereby they can secure compensation, either by raising rates or by other means. It is expected that the companies will agree. Whether willing or not, however, "they must accede," because in the words of the report

it is now conceded as a principle of jurisprudence that the State, in conceding public service monopolies, does not waive its right to interfere and compel the concessionaires to grant ameliorations in the interest of public good and the preservation of public order.

The report, in conclusion, reviews arbitration experiments throughout the world, particularly commending those carried on in the United States and in Australia.

While there has not been diminution of the Anglo-German animosity, during recent weeks the Germans have avoided giving offense to France in a very delicate matter. They believe that, despite temporary setbacks, they have kept intact their friendship with the United States. They have beyond a doubt improved their relationship toward their eastern neighbor. Early last month, there was published in the European press generally, a statement that Germany and Russia had come to a definite agreement regarding their respective Premier Canalejas of Spain has interests in Persia, Turkey and Asia Minor. secured the enactment into law of The basis of this agreement was reached, it the first important item on his was said, several months ago, when Czar program of reform. The so-called "Padlock Nicholas visited Kaiser Wilhelm at Potsdam. Bill," which prohibits the establishment of The exact character of the agreement has any new religious congregations in Spain for not as yet been made public. It is under- two years, was passed by a large majority in stood, however, to refer principally to Ger- the lower house of the Cortes, on December man ambitions in Persia, and to settle defi- 23. It had been passed by the Senate a nitely Russia's attitude toward the Bagdad Railway. Germany now virtually has a free hand in the Near East, and will undoubtedly

The Success

of Canalejas

month before. This result, as the Premier himself said in a speech to the parliament, "has been achieved in the nick of time."

Will there

Revolution?

The closure of monasteries and convents in Keen European observers are exPortugal a few months ago had resulted in the be a Counter-pecting a counter-revolution at settlement in Spain of all, or most, of PortuLisbon before many months. The gal's monks and nuns. This great addition army and navy, which accomplished the radito the large increase that followed Spain's cal change in October last, are disappointed loss of her colonies in the war with the United because certain reforms have not yet been States, and particularly since the expulsion carried out. Moreover, the anti-clerical measof certain orders from France, greatly com- ures of the government have offended the plicated the situation facing Señor Canalejas. Catholic population. Many of the aristoWhile it will be impossible to keep out the cratic and commercially wealthy classes have large numbers of members of the orders al- emigrated, and this has caused a general deready existing in Spain which have come from pression in business and the appearance of other countries, the provisions of the "Pad- "hard times." Finally, the withdrawal of lock Bill" will prevent the establishment of funds from Portuguese banks by these wealthy any new "congregations" until a definite emigrees to be deposited in Paris or elsewhere, understanding has been arrived at between has produced a stringency in the money the Spanish Government and the authorities market, and the government, in order to reat the Vatican. During early January King lieve this, has issued paper currency far in Alfonso made a trip throughout Spain's excess of its gold reserve. It will require "sphere of influence" in Morocco, making statesmanship of a high order and patience several days' stay in Melilla, the outpost of not usually found among Iberian politicians the Spanish army of occupation. It is re- to pilot the Portuguese ship of state through ported that he was most enthusiastically the troubled waters of the next year. received by the Spanish forces and accorded unexpectedly cordial treatment by the Moorish government and military officials.

Problems

How

China

Moves

The Chinese National Assembly, the first deliberative body in the history of the empire, began its The republican ship of state in sessions on October 3. It dissolved on January of the Portugal seems to have entered 11, after a rather stormy career marked by New Portugal troubled waters. As was to be frequent clashes with the throne and the expected, the provisional government could Grand Council. While it failed to secure not begin to satisfy the illiterate populace most of the reforms it asked, it did good work which had revolted against the abuses of in preparing the way for a general parliament the monarchy. The republican régime has in 1913. The Regent refused to create a been issuing many proclamations announcing responsible ministry at once, as was asked, sweeping reforms. The people read these but did advance the date for the summoning and go on living as before until some fairly of a general parliament. One of the demands definite promise fails of realization, and then, of the Assembly was for the promulgation of as happened last month, there are strikes and an imperial edict abolishing the queue. The other disorders. The ministry has, as yet, wording of the demand scornfully spoke of put off calling a republican assembly that "the pigtail commemorating the subjection might limit its power. It has, however, of the nation by a race [the Manchus] which elaborated a plan of government for a per- is now absorbed by a hardier people." The manent Portuguese republic. This plan is throne refused this demand. Nevertheless based on the parliamentary system of France, an increasing number of officials and private with certain modifications adopted from our citizens are parting with their queue. Under own country. According to the ambitious modern conditions of life it has been proven scheme proposed by the provisional cabinet, unhygienic. Moreover it exposes its wearer the President of the Republic will be chosen to accidents. Curiously enough, the only by Parliament for a term of five years, and formulated objection to its abolition has come will not be eligible for reëlection. As in in the form of petitions from the silk and France, the Cabinet is to be appointed by the President "in accord with the political complexion of the legislative body." The Ministers of War, Marine, Finance and Public Works, however, being considered non-political, will continue "irremovable even in the event that the government loses the confidence of Parliament."

cotton merchants of Shanghai and Canton, who complain that the new fashion would change the style of dress, and from a number of dealers in artificial human hair, who fear lest the "market" will be flooded with “cheap Chinese goods." It is interesting to note the fact that an American concern (the New York Shipbuilding Company of Camden,

New Jersey, makers of the Dreadnought railroad in the Island of Luzon, and the Arkansas, which was launched last month) Manila Railroad Company is under contract has just secured a contract for building the to lay 400 miles more. Many natives are first Chinese man-of-war ever laid down in employed on these roads as agents, clerks, this country. Heretofore England and Japan engineers, conductors and mechanics, and have built all China's war vessels. they are characterized as "industrious, efficient and responsible." General Edwards refers to what he calls the "filipinization” of the civil service of the Island. He says:

As Seen by an
American

that wherever an American for any reason quits It may be regarded now as an understood rule the service he is to be relieved, so far as is possible with due regard to efficiency, by a Filipino at an equivalent salary so far as the duty itself is concerned, but adjusted to meet the different con

on the part of the American employee by service abroad and the long distances necessarily traveled in reaching and returning from his post of duty.

A Decade

History is being made rapidly in China these days, so rapidly that Observer the magazine articles and even the news despatches find it difficult to keep up with the reality. We have recorded the main facts of this progress, from time to time, in these pages and, during the past two years, have printed several illustrated articles pre-ditions of living and the difference made necessary pared by experts on events in the Celestial Empire. In this number we take great pleasure in presenting to our readers a vivid report of progress, prepared, not by an authority on Chinese affairs, but by a keen, alert, observOn New Year's day the Commonant American editor who has been traveling wealth of Australia attained a in the Far East for some months. Mr. Clarlarger measure of independence ence Poe, one of the representative wide- than it has possessed during the preceding ten awake leaders of the new South, is editor and years of its existence. The Commonwealth proprietor of a number of agricultural jour- was proclaimed at Sydney on January 1, 1901. nals having a large circulation in the South. The Constitution which had been adopted by He comes at the subject with the fresh, keen, all the component states: New South Wales, questioning mind of the modern American Victoria, Queensland, South Australia, West journalist, and we are confident our readers Australia and the Island of Tasmania, prowill find a good deal of instruction and stimulus to further reading in his article "China Awake and at Work" which is found on page 191 this month.

The

of

Australia

vided that, until a permanent site had been chosen for the capital, the Federal government should sit at Melbourne. The capital city, when chosen, "must be in New South Wales, not less than 100 miles from the city That the natives of the Philippine of Sydney." Three years ago the Parliament Contented Islands are now measurably con- decided that the choice should fall on the Filipinos tented under American rule is district of Yass-Canberra, that the federal made quite plain by the annual report, re- reservation should contain not less than 900 cently issued, of General Clarence R. Ed- square miles and that it should have access wards, Chief of the Bureau of Insular Affairs. to the sea. On January 1, the Yass-Canberra About 11,000 regular troops are garrisoned site was approved by the Parliament as the throughout the islands, but, says General site of the Federal capital, and the bill authorEdwards, "no call upon them has been neces- izing the erection of government buildings sary during the past year or seems likely in was passed on the same day. The Constituthe immediate future." Order is maintained tion also provided that for ten years after by the Philippine Constabulary, that splen- the establishment of the Commonwealth, not did body of native police commanded by more than one-quarter of the net revenue American army officers. We have more than from duties and excises should be applied to once found occasion in these pages to commend the excellent work of this Constabulary. Secretary Dickinson, who recently made an extended tour of the islands, heartily commends this force, not only for its regular service, but for "its auxiliary sanitary work, especially during epidemics." The number of native depositors in the Postal Savings Bank has increased during the past year by almost 100 per cent. According to General Edwards's report there are now 375 miles of

Federal expenditure. This condition expired on the first day of the present year, and the central government thus acquired complete financial independence of the states. With the present year also the Defense Act requiring compulsory training comes into active operation. During 1911 the central government assumes direct control over the Northern territory, and the present ministry has promised to proceed without delay to the survey of the much needed transcontinental railway.

RECORD OF CURRENT EVENTS

(From December 20, 1910, to January 19, 1911)