capital. The next step was the negotiation in 1884 of a treaty between the United States and Nicaragua for the construction of a canal by the government of the United States along a route located by Mr. A. G. Menocal, an engineer of the navy. This treaty was submitted to the Senate by President Arthur; and its terms were as follows:

The canal was to be built by the United States, and to be owned jointly by the United States and Nicaragua.

The United States was to protect perpetually the integrity of the territory of the republic of Nicaragua.

Privilege was given the United States to construct across the territory of Nicaragua a railway between the termini of the canal, and telegraph lines, in its discretion.

A belt of land was granted, two and one half miles wide, of which the canal was the central line, and a belt two and one half miles wide around the southern end of the lake.

The canal was exempted from taxation.

The United States was to have exclusive control of construction.

The net revenues were to be divided between the owners in the proportion of one third to Nicaragua and two thirds to the United States, and accounts were to be liquidated quarterly.

The United States was to loan Nicaragua $4,000,000 for works of internal improvement, to be refunded out of Nicaragua's share of the revenues.

The treaty was laid before the Senate, but failed of ratification under the two-thirds rule, and shortly after, it was withdrawn.

In October, 1886, a meeting of persons interested in the construction of the canal was called at New York, and a new company was organized which sought a charter from Congress. In the meantime Captain Eads had obtained a concession from Mexico for a ship railway across the Isthmus of Tehuan

tepec, and had introduced into Congress a bill providing for the charter of his company. The antagonism between the two interests delayed both bills so that they were not acted upon, but in March, 1887, the new Nicaragua company sent Mr. Menocal to Nicaragua to obtain a new concession in their behalf, which was ratified by the Nicaraguan government in April of that year. At the meeting of Congress in December, a bill for the incorporation of the Maritime Canal Company of Nicaragua was introduced, and reported to both Houses with a favorable recommendation. Final action was reached in February, 1889, and the bill, approved by the President, became a law. A construction party consisting of forty-seven engineers and their assistants was immediately sent to Nicaragua and work was begun.

The government of Costa Rica having claimed riparian rights along the San Juan River was also induced to grant a concession similar to that already secured from Nicaragua, and the work began under most favorable conditions. The harbor at Greytown, which had long been useless, was improved by the erection of a breakwater and pier, and a railway was constructed some distance up the San Juan River for the use of the canal company, which is now actively engaged upon the enterprise.

PROPOSED ANNEXATION OF SANTO DOMINGO AND ST. THOMAS.

CONE

THE REPUBLIC OF LIBERIA.

NE of the most interesting episodes in our diplomacy and an event that caused a serious political commotion, was the proposition made during the first year of the administration of President Grant, to annex the island of Santo Domingo to the United States.) Being the cradle of American history, the scene of the first civilized settlement in the new world, and for half a century the center of affairs on this side of the Atlantic, there has always been a sentimental interest attaching to Santo Domingo that has not been felt in any other part of our continent. Then, too, the dramatic and furious fight that was made there for emancipation, the successful issue of the struggle, and the foundation of a republic of black men, for black men, and by black men, have made the soil of the picturesque island holy ground to the lovers of human freedom.

"Soon after my inauguration as President," said General Grant in his message forwarded to Congress in 1871, "I was waited upon by an agent of President Baez with a proposition to annex the republic of Santo Domingo to the United States. This gentleman represented the capacity of the island, the desire of the people, and their character and habits, about as they have been described by the commissioners whose

report accompanies this message.

He stated further that, being weak in numbers and poor in purse, they were not capable of developing their great resources, that the people had no incentive to industry on account of lack of protection for their accumulations; and that, if not accepted by the United States-with institutions which they loved above those of any other nation-they would be compelled to seek protection elsewhere. To these statements I made no reply, and gave no indication of what I thought of the proposition. In the course of time I was waited upon by a second gentleman from Santo Domingo, who made the same representations, and who was received in like manner.

"In view of the facts which had been laid before me, and with an earnest desire to maintain the Monroe doctrine, I believed that I would be derelict in my duty if I did not take measures to ascertain the exact wish of the government and inhabitants of the republic of Santo Domingo in regard to annexation, and communicate the information to the people of the United States. Under the attending circumstances I felt that if I turned a deaf ear to this appeal I might, in the future, be justly charged with a flagrant neglect of the public interests and an utter disregard of the welfare of a downtrodden race praying for the blessings of a free and strong government, and for protection in the enjoyment of the fruits of their own industry."

In the July following, General Grant sent General Babcock, his private secretary, to Santo Domingo upon a secret mission. He bore a letter of instructions from Secretary Fish to ascertain the facts about the condition of the government, its standing with the people, the financial condition, resources and industries of the island, and particularly the public sentiment with reference to the annexation proposition. His report to the President was confidential, and has never been

made public, but it must have been favorable, for within a very short time after his return Secretary Fish negotiated a treaty with an agent of the Dominican government by which that portion of the island under its con

trol and jurisdiction-not including the western shore which constitutes the republic of Hayti - was annexed to the United

States. The area of

this territory was

28,000 square miles,

equal in size to Vermont, Massachusetts, Connecticut, and Rhode Island combined.

There was also a separate treaty negotiated, which granted to the United States the perpetual lease of the peninsula and Bay of Samana, at the eastern end of the island, as a supply station for the use of our navy in the West Indies.

In his message to the Senate, transmitting this treaty, General Grant expressed the opinion that the island, if properly cultivated, would yield to the United States all the sugar, coffee, tobacco, and other tropical products that would be required to supply the needs of our people, and would cut off at least a hundred million dollars' worth of our imports annually. He expressed great interest, too, in the benefits which annexation would confer upon the people of Santo Domingo, who for years had been plundered by thieves and adventurers.

But to the surprise of General Grant, when the annexation treaty was submitted to the United States Senate, it was rejected by a tie vote, 28 to 28, although a two-thirds vote was