Problems of the Pacific

by Frank Fox

It is true that if the United States decides "to play a lone hand," she may win through if all the circumstances are favourable, for she seems destined to control the resources of all America. It is likely that within this decade the United States Flag will fly (either as that of the actually governing or the suzerain Power) over all the territory south of the Canadian border to the southern bank of the Panama Canal. Intervention has been threatened once already in Mexico. With any further disorder it may be carried into effect. The United States cannot afford to allow the chance of a disorderly force marching down to destroy £70,000,000 worth of United States property. Central America has been marked down for a process of peaceful absorption. The treaty with Honduras (a similar one exists with Nicaragua) shows the method of this absorption. It provides:

"The Government of Honduras undertakes to make and negotiate a contract providing for the refunding of its present internal and external debt and the adjustment and settlement of unliquidated claims for the placing of its finances upon a sound and stable basis, and for the future development of the natural and economic resources of that country. The Governments of the United States and Honduras will take due note of all the provisions of the said contract when made, and will consult, in order that all the benefits to Honduras and the security of the loan may at the same time be assured.

"The loan, which shall be made pursuant to the above undertaking, shall be secured upon the customs of Honduras, and the Government of Honduras agrees not to alter the import or export Customs duties, or other charges affecting the entry, exit, or transit of goods, during the existence of the loan under the said contract, without consultation and agreement with the Government of the United States.

"A full and detailed statement of the operations under this contract shall be submitted by the fiscal agent of the loan to the Department of State of the United States and to the Minister of Finance of the Government of Honduras at the expiration of each twelve months, and at such other times as may be requested by either of the two Governments.

"The Government of Honduras, so long as the loan exists, will appoint from a list of names to be presented to it by the fiscal agent of the loan and approved by the President of the United States of America, a collector-general of Customs, who shall administer the Customs in accordance with the contract securing said loan, and will give this official full protection in the exercise of his functions. The Government of the United States will in turn afford such protection as it may find necessary."

Under the terms of these loan conventions the independence of Honduras and Nicaragua dwindles to nothing. The purpose of the arrangements was stated by Mr President Taft in his message to Congress: "Now that the linking of the oceans by the Isthmian Canal is nearing assured realisation, the conservation of stable conditions in the adjacent countries becomes a still more pressing need, and all that the United States has hitherto done in that direction is amply justified, if there were no other consideration, by the one fact that this country has acquired such vast interest in that quarter as to demand every effort on its part to make solid and durable the tranquillity of the neighbouring countries."

"Solid and durable tranquillity" means in effect United States control. From the control of Central America to that of South America is a big step, but not an impossible one; and the United States already claims some form of suzerainty over the Latin-American peoples there. It insists upon giving them protection against Europe, whether they wish it or not, and under certain circumstances would exercise a right of veto over their foreign policy. The United States also is engaged in promoting through the Pan-American Bureau a policy of American continental unity. This Bureau was the outcome of the Pan-American Conference convened by Mr Blaine in 1890. The general object of the Bureau "is not only to develop friendship, commerce, and trade, but to promote close relations, better acquaintance, and more intimate association along economic, intellectual, educational and social lines, as well as political and material lines, among the American Republics." "The Bureau for commercial purposes," its Director, Mr Barrett, reports, "is in touch in both North and South America, on the one hand with manufacturers, merchants, exporters, and importers, doing all it can to facilitate the exchange and building up of trade among the American nations, and on the other hand with University and College Presidents, professors, and students, writers, newspaper men, scientists, and travellers, providing them with a large variety of information that will increase their interests in the different American nations." The Bureau publishes handbooks and reports on the various countries containing information relating to their commercial development and tariffs.

There will be held this year (1912) at Washington a Pan-American Conference on trade, organised by the Bureau, "to awaken the commercial organisations, representative business men, and the general public of both North and South America to an appreciation of the possibilities of Pan-American commerce, and the necessity of preparing for the opening of the Panama Canal." "The Conference," says the official announcement, "will have a novel feature in that it will consider the exchange of trade—imports as well as exports—and the opportunities not only of the United States to extend the sale of her products in Latin America, but of Latin America to sell her products in the United States, for only upon the basis of reciprocal exchange of trade can a permanent large commerce and lasting good relations be built up between the United States and her twenty sister American Republics. Heretofore all discussions and meetings have considered only the export field, with a corresponding unfortunate effect on public opinion in Latin America, and her attitude towards the efforts of the United States to increase her commerce with that important part of the world. Another special feature will be a careful consideration, from the standpoint of the business interests of all the American countries interested in the Panama Canal, of what should be done to get ready for greater exchange of trade through that waterway, and to gain practical advantages to their commerce from the day it is opened."

The policy of Pan-America may one day come into effect, and the United States Power command the resources of all America except Canada. (That Canada will ever willingly come under her suzerainty seems now little likely.) But from Cape Horn to the Gulf of St Lawrence is an Empire of mighty resources, great enough to sate the ambition of any Power, but yet not forbidding the ambition to make it the base for further conquests.

Yet, withal, the United States cannot rely confidently on an unchecked career of prosperity. She may have her troubles. Indeed, she has her troubles. No American of to-day professes to know a solution of the negro problem. "There are two ways out of the difficulty," said one American grimly; "to kill all the negroes, and to deport all the negroes; and neither is humanly possible." To allow them to be absorbed by intermarriage with the White population is unthinkable, and would, in a generation or two, drag the United States down to the level of a larger Hayti. A settlement of the black question will one day, sooner or later, absorb the American mind for some time to the exclusion of all else. Neither the acquisition of territories with great coloured populations, nor the extension of suzerainty over half-breed countries will do anything to simplify that problem.