CHAPTER VII. THE LAST DECADE OF THE NINETEENTH CENTURY.
During the last decade of the nineteenth century tendencies which years before had begun to appear became the dominant feature of the European situation. The old ideals of the Manchester school—freer trade, more intimate and peaceful intercourse between nations, the right of each people to control its destiny, the development of liberal institutions—gave way to a policy of high protective tariffs and bitter commercial warfare, of constant increase in armaments, of eager rivalry in seizing the territory of less civilized and weaker peoples, accompanied, particularly on the continent, by a decrease in the effectiveness of parliamentary government. Several of the great statesmen of the century yielded to new men. Although the close came without such wars as desolated Europe at the end of the eighteenth century, the heavy burdens which rested upon the taxpayer and the constant danger that the work of civilization would be rudely interrupted hardly justified the optimism of the earlier decades. The pronunciamento of the Czar Nicholas in favor of restricting the growth of armaments and the consequent establishment, in 1900, of an international tribunal of arbitration at the Hague held out hopes of a better future.
ENGLAND.—An analysis of the majority which Gladstone had obtained in the general election of 1892 showed that the prospects of Home Rule for Ireland were slight. This majority was composed of an English minority supported by Scottish, Welsh, and Irish groups. The bill which was introduced in the following year differed from the previous bill in that it did not withdraw the Irish members from Westminster. Although the House of Commons gave it a small majority, it was defeated in the Lords. Gladstone felt that his support was too precarious to force the question to a final settlement by an appeal to the country. He accordingly turned his attention to the remainder of his programme, the most important part of which was a Parish Councils bill. This aimed to do for local government in the parishes what the previous Salisbury ministry had done for local government in the counties. After the success of the bill was assured Gladstone withdrew, and Lord Rosebery became prime-minister. Gladstone spent the remainder of his life in retirement. The Rosebery ministry soon fell, and a new Salisbury ministry dissolved Parliament. In the general election of 1895 the Conservatives and their allies, the Liberal-Unionists, received an overwhelming majority. This took the Home Rule question out of practical politics. Only through a series of minor concessions was the attempt to be made to satisfy Ireland's legitimate aspirations. This victory also showed that English public sentiment was ready to break definitely with the principles of Gladstone and his friends, and support a policy of energetic imperialism. The Queen, whose jubilee was again celebrated in 1897, died on January 22, 1901. The new king, Edward VII., at the age of sixty-one, was crowned in 1902.
GERMANY: BISMARCK's LATER POLICY.—Since 1878, when Bismarck abandoned his alliance with the National Liberals, he had been endeavoring to increase the financial strength of the empire by changing the customs and excise system, to conquer the socialists both by direct attack and by taking the working classes under the special care of the state, and, more recently, to procure for Germany colonial possessions. Although his new financial policy was definitely protectionist, his chief aim was to free the imperial government from the need of applying to the different states for a subvention. In consequence of his policy, the income from customs and excises rose in ten years from 230,000,000 marks to 700,000,000. But the plan of state subventions although altered in fact was preserved in appearance, for Bismarck was obliged to concede to Particularist jealousies that all income from these sources above 130,000,000 must be paid to the states and the deficiency in the imperial treasury be made up in the usual manner. Later on the new naval programme again made state contributions a reality. In the laws to protect the workingmen Bismarck affirmed this to be the duty of the Christian state; he did not concede that such measures were simply the right of the workmen. The plan was carried out in three great laws: that of insurance in case of illness (1883), in case of accident in mines or factories (1884), and in case of old age or incapacity (1889). These laws were enacted in the face of much outcry from employers, and were effectively administered. They did not, however, so far remove the grievances of the lower classes as to check the growth of the Social Democratic party. Although the party has since 1891 embodied in its programme the theories of Marx, it is not wholly socialistic in character; it is also a protest of the democratic spirit against the administration of Germany as an aristocratic, military monarchy. In the face of repressive laws the party grew steadily, so that in 1890 it was able to cast 1,400,000 votes. The only force able to resist its advance was the Catholic Center, because the Catholic Church included among its members all classes in the community; while the Protestant Church, in the cities at least, was more generally composed of the employing class. From 1884 Bismarck had put Germany forward as an eager competitor for colonial acquisitions in Africa and the Pacific. The lands that Germany was able to obtain were hardly suited to distinctively German settlement, and afforded comparatively little advantage to trade.
BISMARCK'S FALL.—William II. began by continuing the policies which had been characteristic of the closing years of his grandfather's reign. It was not long before he became restive under the leadership of Bismarck. He desired to make his own personal aims more prominent. In 1890 there was a struggle over the renewal of the laws against the socialists and a consequent general election. The Emperor seized the opportunity to declare his purpose to improve still further the situation of the working classes, and, with this in view, to call an international congress. In Prussia he declared it to be the duty of the state to regulate the conditions of labor. Such declarations took the control of the electoral campaign out of Bismarck's hands. One result was decided losses for the conservative groups. Bismarck tried to maintain his ascendency by insisting that, according to a cabinet order of Frederick William IV., the king of Prussia must communicate with the ministers through the president of the council. William retorted by denying Bismarck's right to negotiate with the chiefs of the parliamentary groups, and by requiring a decree reversing the obnoxious cabinet order. On March 20 he demanded Bismarck's resignation. Bismarck left Berlin amid a great ovation a few days later. For some years he and his friends formed an unofficial center of opposition and criticism. He died in July, 1898.
GERMANY SINCE BISMARCK'S FALL.—Bismarck's successors were Count Caprivi (1890-1894), Prince Hohenlobe (1894-1900), and Count Bülow. It was tacitly recognized that the anti-socialist laws had failed, and they were not renewed. The socialists as well as all other groups received the additional advantage that somewhat later a law was passed permitting societies of all kinds to affiliate. It was estimated that in 1900 the Social Democrats controlled over 2,000,000 votes. The government vainly attempted to dike the rising flood by laws providing a practical censorship of art and of literature, but these had to be abandoned. In the parliamentary life of Germany the most significant change was the disintegration of the old parties, the strengthening of such groups as the Catholic Center and the Social Democrats, and the creation of a strong Agrarian party or interest. The Agrarians became prominent during the controversy over a commercial treaty with Russia. This treaty was part of a general attempt to develop the European market to make good the loss through the adoption of high tariffs in countries like America and France, and, at first, by Russia herself. Although Germany could not furnish enough grain to feed her own people, and there was a tariff on imported grain, the price kept falling, while the prices of manufactured articles steadily increased. The peasants and the landowners felt that they were threatened with ruin. Accordingly they formed an alliance in 1893, and a parliamentary union which, from that time on, was so formidable as to force important concessions from the government. Among other important measures of this period were the adoption of a new Civil Code for the empire, to go into effect Jan. 1, 1900; the reduction of the term of military service to two years; and the efforts by the successive naval programmes of 1897 and 1900 to create for Germany a strong sea power capable of supporting her trade and colonial aspirations.
FRANCE: BOULANGER.—In 1888 the continuance of the Republic was endangered by the support which many of its enemies and some of its ignorant friends lent to the pretensions of General Boulanger, who had made himself popular as minister of war by his army reforms and by his belligerent attitude toward Germany. When he ceased to be minister, and particularly after he was deprived of his military command, he began an energetic propaganda for a revision of the constitution, with the cry "Dissolution, Revision, Constituent." The royalists gave freely to further the campaign, hoping that moderate men would be frightened into calling the Count of Paris to the throne in order to save the country from another military empire. The Boulangists took skillful advantage of the fact that the deputies representing each department were elected "at large," and not on single district tickets, so that it was possible for Boulanger's name to be placed on each departmental ticket, and so in time to receive the votes of all France. With such a mandate it would be impossible for the moderate Republicans to resist him. For a time the scheme was successful. Boulanger was even elected on the Paris list. Had he been willing to undertake a coup d'etat he might then have overthrown the Republic, but he wished for a more peaceful triumph at the approaching general election. This his opponents deprived him of by abolishing the method of election "at large," so that each deputy was to represent a particular district. Boulanger was soon after attacked on a charge of treason before the Senate acting as a high court. He fled to Belgium and a little later committed suicide on the grave of his mistress.
PANAMA CRISIS.—Hardly had the danger from Boulanger subsided when, in 1892, many of the leading politicians were discredited by the disclosures made in the judicial investigation of the bankruptcy of the Panama Canal Company. It appeared that the company had spent large sums to muzzle the press, so that ignorant investors should not discover the precarious condition of the enterprise. It had also contributed to the campaign expenses of friendly deputies and directly purchased votes in order to obtain authority to negotiate a loan in a manner ordinarily illegal.
Although several deputies and senators were tried, no one was convicted save an ex-minister, who confessed that he had accepted 300,000 francs. Had the exposure come a little earlier, it must have led to the triumph of Boulanger. Its principal consequence was to bring new men of less tarnished reputations to the front.
THE CHURCH.—In the same year the Church with direct encouragement and even pressure from Pope Leo XIII, rallied to the support of the Republic. The pope issued an encyclical to French Catholics and followed this by a letter to the French cardinals. Many royalists were afflicted by this attitude, but nearly all were submissive. They called themselves the "constitutional party," but were also called the "rallied." Their watchword seemed to be, "Accept the constitution in order to modify legislation."
PARTIES.—The radical revolutionary groups, which had been crushed in the suppression of the Commune of 1871, and which had not been able to reconstitute themselves effectively until the amnesty of 1880, began in the early nineties to make their influence more effective. This coincided with a general shifting of political power toward the Left. The assassination of President Carnot, in 1894, and the enthusiasm provoked by the cementing of the Russian alliance and by the coming of the Czar to Paris, prolonged the control of the moderates, or Progressists, as they were called in 1896. It was the persistent attacks of the radicals that disgusted Casimir-Périer with the presidency. His successor was Félix Faure, a successful business man. When he died suddenly in 1899, Émile Loubet was chosen by the support of the groups of the Left. Before the moderate Republicans lost control they revolutionized the economic policy of France, substituting for practical free trade and commercial treaties a high protective tariff.
DREYFUS CASE.—France had not recovered from the shock of the Panama scandal before she was involved in another scandal far more subtle in its demoralizing influence. Jealousy of the success of Jewish financiers, strengthened by the common feeling that capitalists are enriched by ill-gotten gains, led to an obscure campaign against the Jews and all capitalists. The reminiscences of Panama did not allay these feelings. Soon the royalists seized this instrument as a means of discrediting the Republic, asserting that it had been organized through the influence of German-Jewish immigrants who were enriching themselves at the expense of the thrifty but guileless French. It was also asserted that Jews in the army were betraying its secrets to their German kindred. As the army was universally popular, this was an effective blow at the Jews. The denouement was the arrest of Captain Dreyfus, his degradation, and his confinement on an island off the coast of French Guiana. The evidence had been slight, and it was discredited when a courageous officer of the Intelligence Department told his superiors that even this had been constructed by a Major Esterhazy. The officer, Colonel Picquart, was removed, and his place taken by Colonel Henry, who undertook to supply the necessary evidence. Although he imposed on the minister of war, he was unable to endure the moral strain, especially after distinguished men like Zola became champions of the innocence of Dreyfus, and he committed suicide after making a confession. The government was obliged to bring the case before the Court of Cassation in 1898, which ordered a new trial. Although Dreyfus was again convicted by a military court, he was immediately pardoned by the President.
OTHER COUNTRIES.—After 1897 the situation in Austro-Hungary became precarious, owing to the difficulties which arose when the time came to renew the Ausgleich, or agreement, between Austria and Hungary, first made in 1867. Neither portion of the empire was satisfied with its part of the bargain. As the Hungarians always stood together in any struggle with Austria, they were likely to get the better of the bargain. There was the additional difficulty that no agreement of any sort could be adopted in the Austrian parliament, which had become hopelessly disorganized through the savage conflicts between the various groups, Germans, Czechs, anti-Semites, etc. The only way to prevent the actual dissolution of the empire was to renew the agreement in behalf of Austria by imperial warrant. Another country belonging to the Triple Alliance, Italy, was brought into trouble by the policy of extravagant expansion, pursued especially under the leadership of Crispi. But the disastrous defeat by the Abyssinians at Adowa, in 1896, gave pause to the plans of such statesmen. Spain also suffered disaster in this period, first through the outbreak of revolt in Cuba, and then through the loss of the remnant of her once splendid colonial empire in consequence of the war with the United States.
EUROPEAN DIPLOMACY.—The foundation of the Triple Alliance had been laid by the treaty between Germany and Austria. To this Italy had acceded in 1883. Such a combination tended to bring Russia and France together, especially as Russia began to see that the only power pursuing a policy favorable to her desires was France. Finally Russian and French officers were authorized to arrange for the possible coöperation of armies in case of war, and in 1894 a military convention was completed. That there came to be a definite understanding still more comprehensive has been generally believed, but its terms were not divulged. The French minister of foreign affairs used the word "alliance" in the Chamber of Deputies in 1895, and two years later, when President Faure visited the Czar at St. Petersburg, the Czar used the phrase "two great nations, friends and allies." The consequence of these two alliances, and of the peaceful policy pursued by England, was the localizing of difficulties and the maintenance of a "concert" on all questions likely to embroil Europe. This was evident from the treatment of the Eastern, the African, and the Far Eastern questions.
ARMENIA.—Bulgarian affairs had not received their final solution at the Berlin Congress, for the peaceful revolution of Philippopolis in 1885 had forcibly reunited Bulgaria and East Roumelia. But the powers did not recognize the change until Prince Alexander had withdrawn, and Prince Ferdinand had placed himself more under Russian tutelage, making this emphatic by the decision to bring up his son, Prince Boris, according to the Greek rite. The success of Bulgaria rendered the Armenians envious. Discontent at the failure to carry out the reforms promised by the treaty of Berlin led to the formation of a revolutionary party which hoped by provoking a Turkish repression, similar to the Bulgarian "atrocities," to necessitate a new European intervention. Such a scheme was opposed by American missionaries and by the native clergy, for they saw that it was doomed to disaster. The revolutionists endeavored to compromise the missionaries by posting their placards on the walls of the American college at Marsivan. The suspicions of the Turks were directed against the missionaries, and the Girls' Schoolhouse was burned by a mob. Ostensibly to capture agitators the Kurds followed by the regular troops perpetrated terrible massacres in the mountain villages of Sasún in 1893 and 1894. The powers could not agree upon any common plan to check such evils, and when they did force upon the Sultan a scheme of reform, it served only as a signal for worse massacres, which recurred chronically until the final massacre in Constantinople in August, 1896. As the "concert" was honeycombed by jealousies, it was impossible to do more than prevent the development of this horror into a general European war. England was unable to intervene separately because of the hostile attitude of Russia. Such statesmen as Lord Salisbury recognized that England's traditional support of Turkey had been discredited by such events. When, in the following year, war broke out between Greece and Turkey, and when Crete fell into a state of anarchy, the powers were more successful in their common action, for they were able to mitigate the terms which the victorious Turks demanded, and to withdraw Crete from direct Turkish control.
EGYPT.—The history of Egypt touches both the situation in the Turkish empire and the more general situation of Africa and the routes to the Far East. England's occupation of Egypt, at first considered temporary, gave her practical control of the Suez Canal; it also gave her a strong position in the eastern Mediterranean, the lack of which had been one reason for her hostility to the treaty of San Stefano in 1878. The problem of the equatorial provinces had remained vexatious ever since the triumph of the Mahdi and of his successor, the Kalifa. Any attempt to begin a campaign for their recovery was hindered by the peculiar financial condition of Egypt. As all the funds were either mortgaged to creditors, or at least under an international control not favorable to the presence of England, the only money absolutely under the control of the Egyptian government was a special reserve fund, the result of painful administrative economies. But the necessity of an advance was imperative. Although the attempt of the Congo Free State to establish a permanent foothold in the upper Nile basin had been checked by England, France was striving to extend her territorial possessions straight across from Senegal to Jibutil, on the Gulf of Aden. Major Marchand had left Paris secretly in 1896 with this mission. In this year also the defeat of the Italians at Adowa, and the pressure of the troops of the Kalifa upon Kassala, held by the Italians for the English, did not permit longer delay. A great preparatory work had been done in the ten years previous. A new army had been created. The advance began in March, under the leadership of Sir Herbert Kitchener. One of its most effective and brilliant features was the construction in the following year of a railway 230 miles across the Nubian desert to save a river journey of 600 miles. The decisive campaign took place in 1898, with the battle on the Atbara and the crushing defeat of the Kalifa at Omdurman in September. During the summer Marchand had been establishing posts in the upper Nile region as far as Fashoda. Kitchener immediately proceeded thither, raised the English and Egyptian flags near by, leaving the settlement of the question to diplomacy. The French, not being supported by Russia in an aggressive attitude, were obliged to give way, and their sphere of influence was not to include any portion of the Nile basin. The war had been economically managed, so that Egyptian finances were not seriously disarranged. The help that England was obliged to give justified her in considering the Sudan as territory held jointly by her and by Egypt. The general consequence of English rule in Egypt has been a reduction of taxation, and, at the same time, the collection of a larger revenue. Vast public improvements, like the dam at Assouan, also added to the resources of the country.
AFRICA.—Although Africa since 1885 had been the subject of an important conference at Berlin and of various international agreements it was, strictly speaking, beyond the sphere of action of the European concert. Its partition among the European states, a movement originating in the expeditions of Livingstone and Stanley, went on rapidly from 1884. The Congo Free State, which at first promised to be an international enterprise, speedily changed into a territorial possession of the king of Belgium. When in 1890 it became necessary for him to raise funds for the support of his rule, it was agreed that the reversion of the territory belonged to Belgium as a colony. King Leopold, as already remarked, made an attempt to establish his authority over a part of the upper Nile basin, but here he was thwarted by the ambition of both England and France. England undertook to lease the Bahr-el-Ghazal in consideration of the lease from him of a strip fifteen and a half miles wide along the eastern border of the state, in order to make possible the scheme of a railway on land under British control from "the Cape to Cairo." This scheme was defeated by the Germans as well as by the French. The Portuguese were in turn prevented from extending their holdings from Angola to Mozambique. The French and the English, though each disappointed in their extreme purposes, made substantial gains; England in the regions north of the Cape, across the Zambezi, in Uganda, and in the Sudan; France in western and northern Africa, so that all the northwest, except the coast colonies and the independent Sultanate of Morocco, came under her power. France also turned her protectorate of Madagascar into a colonial possession. England's policy of expansion, together with difficulties arising out of the gold mining industry, involved her in a war with the Boer republics, the South African Republic and the Orange Free State. The center of the mining industry was Johannesberg. So rich were the mines that the foreign population there soon outnumbered the Boers. These foreigners, or uitlanders, desired all the privileges of Englishmen, although they had become residents in a state ruled by primitive agriculturists. They claimed that their industry was ruinously hampered by unwise taxation. So great did their sense of wrong become that they entered into an arrangement with Cecil Rhodes, premier of Cape Colony, and with Dr. Jameson, administrator of the South African Chartered Company, in accordance with which, at a given signal, they were to rise and Dr. Jameson with armed troopers was to come to their assistance. Dr. Jameson did not wait for the signal, the scheme broke down, and he and his troops were captured. To the Boers all this seemed to be an English plot against their independence, and so they became more suspicious. Through a series of incidents the Colonial Secretary, Joseph Chamberlain, was led to attempt to extort by force from the Boers the desired concessions. Before the diplomatic campaign was well begun new issues were introduced, both parties began to prepare for war, and finally in October, 1899, the Boers took the initiative and invaded the British colonies. The war was at first disastrous for the English, but finally through a large army under Lord Roberts the Boers were driven from both the Transvaal and the Orange Free State, which were occupied and declared to be colonies of the empire. But it was not until three years after the beginning of the war that the last Boer bands were compelled by Lord Kitchener to surrender, and the country was pacified. England's influence in South Africa was greatly strengthened by this victory, although her prestige in the world at large was somewhat compromised.
THE FAR EAST.—Before the close of the century the interest which had once belonged to the near East was transferred to the Far East. The first indication of this was the action of the powers at the close of the war which broke out between Japan and China, in 1894, over their relations to Korea. Japan was triumphant, demonstrating in the battle of the Yaloo River the superiority of her new navy. She occupied the peninsula of Liaotung and Port Arthur, a harbor of strategic importance. She demanded a cession of this peninsula, together with Formosa and a large indemnity. Russia, Germany, and France intervened and kept Japan from establishing herself on the mainland. This action did not appear altogether in the interest of China, for each of the three powers soon asked of China quite as important concessions for themselves,—France in the south, Germany at Kiaochow, and Russia at Port Arthur,—which compelled England to guard her interests by leasing WVei-hai-wei, opposite Port Arthur. At this time began the marking out of spheres of influence, a practical partition of China, accompanied by demands of all sorts of railway and mining concessions. This unedifying pressure from aggressive Europeans seemed for a time to awaken China. The emperor began to urge forward reform. It was thought that China might follow in the footsteps of Japan, but suddenly there was a palace revolution, the dowager-empress seized control, and the reformers had to fly for their lives. Closely following this came a serious anti-foreign outbreak, led by "the Boxers," and encouraged by certain high officials. Before Europe was aware of the gravity of the situation it was alarmed by the report that the foreign legations at Pekin had been besieged, captured, and massacred. Although this was a false report, it was true that from June 20 to August 14, 1899, the legations were besieged, partly by a mob and partly by Chinese regulars. The siege was raised by a mixed expedition of European and Japanese troops sent from the coast. The satisfaction with which the news of rescue was received in Europe was chilled by stories that some portions of the expeditionary corps had been guilty of crimes only to be paralleled in the history of European wars in the seventeenth century. After the war a difficult diplomatic question remained, all the more puzzling because the ambitions of the powers prevented any hearty agreement among them. These questions were only in appearance settled by the signing of the protocol in January, 1901. Attention was fixed upon Russia, supported by a new instrument of influence, the Trans-Siberian railway, because it appeared to be her purpose to establish her power in Manchuria on a permanent basis.
AUSTRALIA.—During the Boer war the English colonies by their loyal and generous cooperation strengthened the bonds of empire and forced to the front schemes to render the imperial tie more practically beneficial and effective. One of these groups succeeded in completing its own federal organization. This was Australia. Active effort towards federation was begun in 1889 by Sir Henry Parkes, but not until six years later was public sentiment sufficiently aroused. The main difficulty, as in the case of the American colonies, was to reconcile the differing trade-interests and to establish a proper balance between the larger and the smaller states. Finally, in 1900, these difficulties were overcome, and all the colonies save New Zealand voted to become parts of the commonwealth of Australia. Each state was to have six senators, and to be represented in the lower house in proportion to its population, although no state was to have fewer than five representatives. Matters of taxation were more fully intrusted to the lower house than in the United States. For a time it seemed impossible to settle the delicate questions of appeal to the Judicial Committee of the Privy Council of England, the only instrument of control left in the hands of the home government, but this was settled by a judicious compromise. During the last decade not only Australia, but also New Zealand, made many interesting attempts to solve labor and social problems by legislation. Although the prosperity of Australia received heavy blows after 1890, it began to recover after 1895, and to advance towards its earlier level.
UNITED STATES: CLEVELAND'S SECOND ADMINISTRATION.—Although the McKinley tariff aided in elevating its author to the presidency, its first political consequences were not helpful to the Republican party. In 1892 there was a popular cry for tariff reduction, and Cleveland was triumphantly elected by the Democrats, who also obtained control of both houses of Congress. President Cleveland's purpose of reforming the tariff was hindered at first by a grave financial and industrial crisis, which came in the spring of 1893. The causes of this crisis were the extravagant inflation of business during the preceding years, a financial policy accompanied by the purchase for coinage of vast quantities of silver, and the natural timidity of capital while the economic policy of the government was in danger of fundamental change. The opponents of the administration took skillful advantage of the panic to bring its policies into discredit. So great was the stringency of the money market, especially on account of the depletion of the gold reserve in the treasury, that President Cleveland was obliged to call an extra session of Congress, and to urge upon that body the repeal of the law requiring the monthly purchases of silver for coinage. This measure, adopted by the Senate with evident reluctance in the late fall, did not wholly relieve the situation, and to maintain the gold reserve and defend its credit the government was forced four times to issue bonds for more gold, the consequence of which was the increase of the public debt by over $262,000,000. During the controversies upon monetary legislation, the President had alienated many members of his party in the House, and particularly in the Senate. He was unable to bring them together for such tariff legislation as had been promised. A bill was passed which also embodied income tax provisions, and this bill became a law without the President's signature. Not long afterwards the Supreme Court declared the income-tax clauses unconstitutional. Since the tariff bill did not produce the expected revenue, the government was obliged to face an ominous deficit. The President, however, by his courage and honesty, upheld the national credit despite attacks from his own party. His foreign policy, save in one instance, was conservative. He refused to take advantage of the Hawaiian revolution to bring on the annexation of those islands, and he endeavored to maintain the neutrality of the United States in the struggle between Spain and the Cuban revolutionists; but he intervened in a boundary dispute between Great Britain and Venezuela, insisting that the question should be submitted to arbitration rather than be settled on the terms imposed by the stronger.
MCKINLEY ADMINISTRATION.—In the campaign of 1896 the older leaders of the democracy were thrust aside and William J. Bryan became the party candidate, with the free coinage of silver at the ratio of 16 to 1 as its watchword. This appealed strongly to the distressed debtor class, very numerous in the West on account of the "hard times." The tone of the platform and of the speeches of the leaders was such as to attract the workingmen. The Republicans nominated McKinley, with the promise to reenact the former tariff legislation, to foster industries, and to protect the financial credit of the country. The success of the Republicans was at first doubtful; but the conservative interests became alarmed, and finally the Republicans gained a decisive victory. By the time President McKinley was inaugurated, the period of business liquidation and readjustment was over, confidence had returned, and so the new President became, as campaign placards of his party had announced, "the advance agent of prosperity." The tariff was restored to its older level, the monetary system was reformed, and the gold standard legally established. It was not this legislation, however, that rendered the period significant; it was the adoption of a new national policy of expansion, incident to the war with Spain. The Spaniards had been unable to put down the Cuban insurrection. The drastic measures, especially the policy of "reconcentration" adopted by General Weyler, had discredited the Spanish cause. The ancient tradition of Spain's cruelty to her colonies predisposed the American people to credit reports of atrocity. The administration was apparently anxious to perform its duties as a friendly power, but this was rendered more and more difficult owing to the growing popular demand for intervention. On the 15th of February, 1898, the American battleship Maine was blown up in Havana harbor. Although there was no decisive proof that this was due to the Spaniards, there was no doubt of it in the popular mind. A little later the Spaniards were ready to make any concessions short of an actual abandonment of their sovereignty. It was now too late. There was an irresistible demand for war, and war was declared in April. The result was inevitable, and Spain was obliged to yield sooner than was anticipated. Her fleet at Manila was destroyed by Admiral Dewey, May 1, and her West India squadron by the fleet in which Rear Admiral Sampson held the chief command, on July 3. Meantime a small American army had rendered Santiago untenable. After the surrender of Santiago, Porto Rico was soon overrun. Manila, which had been under the American guns since May, was also forced to surrender. A protocol signed in August led to the negotiation of peace in December. According to its terms, not only was Cuba to be evacuated, but Porto Rico, the Philippines, and the Ladrones were to become American possessions. In this way a war begun because of popular sympathy with the Cubans, turned into a means of territorial expansion. The resistance to the policy of an expansion of this sort was strong in certain sections of the country. Many senators held similar opinions, long delaying the ratification of the treaty of peace.
COLONIAL PROBLEMS.—Simultaneously with the ratification of the peace, war broke out in the Philippines between the American army and the natives, whose leaders had been bent on securing independence. The American troops easily defeated the organized native armies, though one consequence of the struggle was widespread ruin in the island of Luzon; but they were unable for over two years to pacify the country. Even before these troubles were ended, measures were taken to substitute a civil for a military administration, which went into effect in the summer of 1901. Porto Rico was organized as a partly autonomous territory, and although on its trade with the United States there was not at first a full freedom from tariff restrictions, these subsequently disappeared. In dealing with Cuba there had been no formal recognition of the revolutionary organization. It was suspected by many that the military occupation would be prolonged until annexation was brought about, but the President insisted upon the fulfilment of the pledges which had been made at the beginning of the war. A Cuban convention agreed to a treaty in accordance with which the United States acquired the right to intervene to guarantee the independence of the island should this be endangered by entanglements with foreign states. The Cubans also promised to sell or lease to the United States sites for naval stations. The army of occupation was then withdrawn, and the new government inaugurated in 1902. Even before the outbreak of the war, President McKinley had endeavored to bring about the annexation of the Hawaiian Islands, but it required such a pressing need of a controlling position in the mid-Pacific, as the hostilities emphasized, to overcome the opposition. It was not until after the war closed that the islands were organized as a territory. About the same time England withdrew from her joint control of Samoa, and Germany agreed with the United States for a partition of the group. Active preparations were also made for the building of an interoceanic canal through Nicaragua or the Isthmus of Panama on the route laid out by the French. With these questions of expansion and colonial government, other equally important problems, growing out of the new period of prosperity, agitated the public mind, particularly the formation of gigantic corporations, a form of organization which tended to supersede the trusts. As the state laws were helpless to check abuse of power by such corporations, there was a growing demand for the better enforcement of the national laws already enacted or the adoption of other laws more effective. In 1900 McKinley was reëlected, Bryan again being put forward by the Democrats. A few months after his inauguration, while he was visiting the Pan-American Exposition at Buffalo, he was fatally shot by an anarchist. Upon his death, the Vice-President, Theodore Roosevelt, became President.