In 1794 a contest between England and the United States of America respecting St. Croix river was settled by arbitration; in 1803 France was in the same way condemned to pay 18 million francs to the United States of America for unlawful seizure of vessels; in 1818 a threatening dispute between Spain and the United States of America was settled by arbitration, and a contention between these and England was arranged by the Emperor of Russia, who was chosen as arbitrator, etc.

The best known of such disputes was the so-called Alabama question, which threatened a desolating world-war. This affair sprang out of the North American civil war 1861-65. The Southern States had privateers built in England, among which the Alabama especially wrought great mischief to the Northerners. The Government of the Union considered that England had broken her neutrality in allowing the equipment of the privateer, and requested compensation.

A bitter feeling grew up and war appeared inevitable. But on January 24th, 1869, an agreement was happily entered into, which, with fresh negotiations, led to the Washington treaty, May 8th, 1871. In harmony with this the dispute was referred for settlement to a Court of Arbitration consisting of five members, of which England and the United States each chose one, and the neutral states of Italy, Switzerland, and Brazil, likewise each chose one. These five met on December 15th, 1871, as a tribunal of arbitration, at Geneva, and delivered their judgment on September 14th following (four votes against England's one), that the English Government had made a breach in its duty as a neutral power with respect to some of the privateers under consideration, and therefore England would have to pay an indemnity of 15½ million dollars to the United States.[9]

England bowed to the award and fulfilled her duty.

In the same way the powerful insular kingdom voluntarily submitted to settlement in the weary contention regarding the possession of Delagoa Bay and the surrounding region on the east coast of Africa. The dispute was entrusted for settlement, in 1874, to the President of the French Republic, MacMahon, and he decided in July, 1875, in favour of Portugal. That the new contention between these two States, which for some time now has excited an inflammable spirit, not only in Portugal, but in other countries as well, will be arranged in the same friendly manner, there is but little doubt.

The claim of Portugal is much older than that of England. Its special ground is the discovery of the coast which was made by Portuguese mariners three hundred years ago. The Portuguese urge, that since the coast is theirs, they have a right to go as far inland as they choose and place the country thus entered under their dominion. They say further, that they have made a treaty with a native ruler over a kingdom which stretches far inland, and that ruined fortresses are still to be found which show that they once had this distant region in possession. To this assertion Lord Salisbury answers, that where ruined fortresses are found they only testify to fallen dominion. The English Government could not recognise Portugal's construction of the contested question; according to that construction the question would virtually turn upon the possession of Shireland and Mashonaland (the inland country north and south of the Zambesi). It denied Portugal's claim to this territory as so entirely groundless that it could not enter into such a question; but has on the other hand made a peremptory claim, arising from Portugal's violence towards the natives who are under England's protection, for dishonour to the English flag, and for other international offences, etc.

The right of possession of the regions in question can no longer be regarded as doubtful, since Portugal had set aside the general international axiom, that the claim for possession according to colonial usage can only be held valid when colonization is actually carried out to the furtherance of civilization and public safety. Portugal's assertion that the signatories of the Congo Act would be the right adjudicators of the question was denied, upon the ground that Portugal had delayed to make her claim valid when Nyassaland was declared to belong to the sphere of England's interests. On July 1st, 1889, the Under-secretary, Sir James Fergusson, in the Lower House, explained that the Portuguese Government had been informed that they would be held answerable for all loss which Englishmen might suffer by the annulling of the Delagoa railway convention. The same day Lord Salisbury informed the Upper House that the English Government would send three war-ships to Delagoa Bay, to be ready in case of need. Portugal's conduct was, in his opinion, unjustifiable.

Then came the noble lord's ultimatum, with the demand that Portugal should recall all Portuguese officers and troops from the territory which stands under the sovereignty of England or lies within the sphere of England's interests, and give an answer within twenty-four hours; otherwise England would be compelled to break off her relations with Portugal. This threatening manner of procedure, by which a weaker nation was humbled by superior power, roused bad blood in Portugal and was sharply censured in many parts of Europe; yes, even in England, and in Parliament, in the press, and at many great public meetings. At one of these meetings, composed of 700 workmen delegates from various parts of England and 130 Members of Parliament, in quality of vice-presidents, it was unanimously resolved to protest against Lord Salisbury's conduct as at variance with the dignity of the British nation; and to request that the dispute should be settled by arbitration—so much the rather, as the more certain one is of being in the right, the more confidently can one's cause be placed in the hands of an impartial tribunal. Later on the English Government, together with the North American virtually resolved on this expedient for solving, the difficulties relating to Delagoa Bay. Portugal made difficulties and delays, but at length declared herself willing to enter into a proposal for arbitration.[10] All three States were now united in asking the Government of Switzerland to choose three of her most distinguished jurist officials as arbitration judges.

At the time when the first Anglo-Portuguese contest was settled by the President of the French Republic there occurred a second example of both importance and interest. For many years there had been a menacing boundary dispute between Italy and Switzerland, just a little seed of quarrel, such as formerly always broke out into bloody strife, since according to the traditions of national honour not an inch of a patch of ground must be given up except at the sword's point. But the two kingdoms decided to commend the case to an arbitrator, viz., the United States minister in Rome, P. Marsh, who, after a careful study of the claims of the contending parties, declared judgment in favour of Italy, and so the contention was adjusted.

Two dangerous disputes, which in 1874-75 and 1880 threatened an outbreak of war between China and Japan, but were happily solved by arbitration, might be named, but for fear of being prolix I dare not go more particularly into them, instructive as they are.