Lord Kitchener made a tour of the Sudan in January and his report was

thus written with fresh knowledge. So far as is known there have since

been no untoward developments, though in March Major Conry, in charge

of an Arab battalion, lost his life in an encounter with a party of

outlaws on the Atbara River. The Report speaks of 1913 as an uneventful

year except for the Imperial guarantee of a loan of E. 3,000,000_l._

for the development of the Sudan as a cotton-growing country. The

Nile flood was the lowest known in the Soudan for a hundred years.

The area cultivated was 2,303 feddans as against 1,937,000 in 1912.

There was a decrease in the area of cotton, due entirely to climatic

reasons, "not to the indifference of the natives, among whom there

is a marked revival of interest in all forms of agriculture." At

the Tayiba demonstration station, which is now being managed by the

Sudan Plantations Syndicate on a commercial basis, the cotton yield

was good and the quality of a high order. The working of the Tokar

cotton area "has more than justified the policy of the Government. A

marked improvement in the cultivation of the land and in the handling

of cotton has taken place and consequently higher average yields and

better prices have been obtained. The sale of cotton by public auction,

after estimation by Government classifiers, has ensured a fair market

price to the cultivators." The revenue for 1913 was E. 1,644,000_l._

and there was a surplus over expenditure of E. 29,000_l._ The estimates

for 1914 were for a revenue of E. 1,644,000_l._ also with expenditure

of a like sum. There was E. 65,000_l._ in reserve on January 1, 1914.

There are brief but instructive administrative reports. In the Sudan,

as in Egypt, a considerable increase in serious crime is recorded.

The slave traffic has been made "almost impossible." The population

continues to increase, but there is excessive infant mortality. Health

was "satisfactory," malaria being less frequent owing to the dryness

of the year; but sleeping sickness was prevalent in the Yei River

district and is now found over a large area in Western Mongalla and

Western Bahr-el-Ghazal; it was also reported to be prevalent in the

Congo to the west and south-west of Tembara. Cattle disease had been

exceptionally prevalent. The opening of new districts had increased

the territorial responsibility of the Army. The British garrison at

Khartoum consisted at the time of the Report of six companies of

infantry and a detachment of garrison artillery. A list is given

of nine military operations in as many different districts for the

suppression of raiding parties and tribal disturbances. A new general

map of the Sudan on a scale of 1:5,000,000 is nearing completion. The

condition of the south-eastern frontier is described as "not altogether

satisfactory." An extensive trade in arms was carried on between

Abyssinia and the Nuer country. Financial considerations precluded the

Government from setting up an effective administration between the Khor

Yabus and Lake Rudolph, and from occupying the Boma plateau. Something

had been done by the construction of posts after the expedition to the

Anuak country in 1912. These are at Khobo Bonjak and Nasser; "but the

problem will never be satisfactorily solved until the whole country up

to the frontier is effectively occupied. The political situation at

Adis Ababa, and the apparent inability of the Abyssinian Government

to put a stop to the smuggling of arms from the coast, also make for

unrest in the outlying districts bordering on the Sudan, which do not

appear to be under the full control of the central Government."

The war had had no apparent disturbing effect on the Sudan and the

scanty news from Khartoum and beyond by the end of the year was

reassuring as to the attitude of the inhabitants. Sir Reginald Wingate,

the Governor-General and also Sirdar of the Egyptian Army, which was

believed to be for the most part in the Sudan when war was declared,

was in England on leave in August but returned immediately. After

spending some time in Cairo he visited the Sudan and held receptions of

Sheikhs and notables at various centres. The most important gathering

was at Khartoum on November 8. The _Sudan Gazette_ of the previous day

had contained a Proclamation announcing that, at the instigation of

Germany, Turkey had violated the Egyptian frontier and that a state

of war existed between Turkey and Great Britain, and calling upon

the inhabitants of the Sudan to render to the British, Egyptian and

Sudanese forces all the assistance that might be required of them. The

private receptions prior to this proclamation had already made the

Sheikhs and Notables cognisant of the situation as regards Turkey.

The gathering of Sheikhs and Ulema at Khartoum was addressed by Sir

Reginald Wingate. After announcing the state of war with Turkey, as

from November 7, he told them that in order that they should fully

understand the causes of this new war he would call upon the Grand

Mufti to read an Address from him--Sir Reginald--to themselves and to

other religious leaders in the Sudan. The Grand Mufti read the Address

in Arabic. Addressing the company as men of intelligence and education,

possessing a good influence over the people, the Governor-General

appealed to their knowledge of the regenerative work the English had

done in the Sudan, and emphasised our non-interference with any man

in the exercise of his religion. With this knowledge in his mind and

in theirs he was, he said, able to talk to them candidly and without

reservation. He then described to them the condition of Turkey on

the eve of and since the overthrow of the Sultan Abdul Hamid--how

the men who had arrogated to themselves the direction of affairs had

mismanaged the Empire, and had now gone to war with the one Power

which by her actions and the sentiments of her people had ever been

a true and sympathetic friend to the Moslems and to Islam. "These

men--this syndicate of Jews, financiers and low-born intriguers, like

broken gamblers staking their last coin, and in deference to the

urgent demands of Germany and our enemies," had gone to war. After

an argument that England had thus been forced to war by the Turkish

adventurers and that it was not her object to gain territory or

advantage at the expense of a Mohammedan State, the Address assured

the gathering that the world policy of Great Britain would remain

unchanged. The sanctity and inviolability of the Holy Places would be

maintained and enforced on others. She would shelter and protect all

Mohammedan mosques on her borders, as she had done for a hundred and

fifty years in India, where she had guarded the interests of 62,000,000

Mohammedans, "many thousands of whom are now fighting alongside their

British fellow-subjects against the German Army." The Sudan Sheikhs

and Ulema knew the evils of Turkish rule, said the Address, from

bitter experience. But they might feel--and Sir Reginald sympathised

with them--"a certain sorrow at this war." Some might fear that the

result might affect the situation of Mohammedans in other parts of the

world. He assured them before God that their fears were groundless.

The position of no single Mohammedan in the British Empire would be

changed one iota nor a single privilege granted to Islam repudiated.

The Address concluded thus:--

Now I ask you at this present time, you, men of religion, learning,

and experience, to give honourable and wise counsels to the people

who will listen to you; for here in the Sudan, as elsewhere in

the world, the fools will listen to the wise, the ignorant to the

learned, and the common people to men of wisdom and education. I

ask you, then, and I rely upon you, to publish true reports, to

be careful and wise in your words, and by your example to allay

baseless and ignorant fears, to contradict false or alarmist

rumours, and by all means in your power to ensure a sane and

reasonable judgment of events by your co-religionists and the

natives of this country.

The Address was received with enthusiasm and many speakers publicly

protested their loyalty, among them the Mahdi's eldest son. The

document was circulated throughout the country and "it is said there

is hardly a noteworthy person in the Sudan who has not written or

telegraphed to the Governor-General." Offers of assistance were almost

embarrassing in their generosity. Until the end of the year not so much

as a whisper of disaffection had reached England from the Sudan--or, if

that should prove to be inaccurate, had passed the Censor. Despatches

published on December 30 confirmed the unofficial accounts of the

satisfactory attitude of all classes of Sudanese.

III. NORTH-EAST AFRICA AND THE PROTECTORATES.

In the _Somaliland_ Protectorate the action at Dul Madoba in August,

1913, had serious consequences and a state of war prevailed throughout

1914. Among Supplementary Estimates submitted to the House of Commons

in February was one for 25,000_l._ "to meet additional expenditure

entailed upon Somaliland in connexion with the activity of the Mullah."

At that time he was believed to be preparing for an attack on Burao,

where, however, we had no garrison, the force having been withdrawn

after the disaster to Captain Corfield and his camelry. He had been

raiding friendly tribes in the interior and there was a risk that he

might attack Berbera. Our garrison there consisted of 260 Carnatic

infantry and a body of camelry and about the same number at Sheikh.

Further troops were on their way from Aden. It appeared that the

Secretary of State for the Colonies had ordered the camel corps to be

increased from 150 to 300, and this had been done; and in February he

ordered a further increase to 500. The policy was to reoccupy Burao,

about eighty miles from the coast, and to occupy Sheikh, midway between

Burao and Berbera, but not to occupy the interior nor send a punitive

force against the Mullah. The forts at Burao and Sheikh would be

strengthened and the Indian contingent kept at 400 instead of 200 as

before. The estimates for 1914 showed that the recurrent cost of these

permanent defence forces--Indians and camelry--would be 58,800_l._

Mr. Harcourt claimed that these measures met the requirements of the

men on the spot. The Mullah was an old man, he said, in an advanced

stage of dropsy, physically immovable and incapable of leading the

Dervish forays. He had no probable or possible successor. Since he had

been ex-communicated from Mecca he had been left enfeebled--a robber,

but not a prophet. With a little patience and endurance Somaliland

might yet be comparatively peaceful. The policy, therefore, was to

go no farther than Burao and wait for the death of the Mullah. The

Dervish reply to it was an attack in March on Berbera itself, a

body of horsemen dashing to within firing distance of the town and

making good their escape. In July there were disturbing reports of

Dervish activity and it was telegraphed from Aden that more troops

had been requisitioned. The war in Europe closed the usual channels

of knowledge, but in December the Press Bureau issued a short review

of what had occurred. Burao was to be the base of the enlarged camel

corps. Major F. A. Cubitt, D.S.O., had been put in command of the

troops and had arrived in the Protectorate in August. On November 20

the camelry were patrolling the grazing grounds of the tribesmen at

Burao as far as the Ain Valley, and Colonel Cubitt "encountered strong

opposition at Shimberberris, where the dervishes were in a strong

position." He attacked them and again on the 23rd when all their

forts were captured. "The dervishes, overcome by the moral effect

of shell fire"--there had been no previous mention of artillery in

Somaliland--took to flight and suffered material loss. The forts were

demolished as far as practicable. The walls were over six feet thick.

One of the British officers--Captain H. W. Symons--was killed and two

others wounded. The camelry returned to Burao and the Commissioner

reported that "he could not overestimate the excellent effect which

this success will have throughout the Protectorate." It appears that

naval airmen were employed in these operations--the first time aircraft

could have been seen in this region of Africa. The Colonial Office,

while not denying the statement, declined to throw any light upon its

plans for the future.

_British East Africa_ was at once drawn into the vortex of the war. The

Secretary of State for the Colonies announced early in October that

during the previous month there had been considerable activity along

the Anglo-German border because of attempts to raid British territory

and cut the Uganda Railway. All the attempts, with one unimportant

exception--a frontier post whose occupation by the enemy it was not

at the time convenient to oppose--had been repulsed and the raiding

parties forced to retire. The normal garrisons of the Protectorate

and also of _Uganda_ had been increased by "a strong body of troops

from India and also by mounted and unmounted volunteer forces locally

raised; and no anxiety was felt as to the military situation." One of

the earliest moves of the enemy was to send a small party under white

officers to blow up the Uganda Railway near Maungu, but the party was

broken up and its dynamite and outfit captured. At Tsavo on September

6 there was "a hot engagement" between a strong force of the enemy

and Indian troops and King's Royal Rifles. The enemy were severely

handled and repulsed. The enemy had Maxim guns, which the Punjabis

made "a gallant effort to rush with the bayonet," and our losses were

not slight. On the 10th there was another engagement with an invading

force 400 strong including fifty Europeans. This force occupied Kisi on

the 11th, and was attacked on the 12th by a British column which was,

however, compelled to retire. On the 13th the enemy abandoned Kisi,

which the British occupied, finding there ten dead Germans (Europeans)

and six wounded. The Germans had retired to Karungu. Meanwhile German

and British steamers on the Victoria Nyanza had been engaged and

German dhows sunk. On the 20th the Germans attacked a British post at

Campi ya Marabu and after two hours' fighting retired into their own

territory, leaving thirteen dead. Lieut. A. C. H. Forster, in command

of the King's African Rifles there, was killed. The officer who took

over the command reported that the conduct of the King's African

Rifles was splendid and that the success had "materially encouraged

the Masai who lived in the neighbourhood." The British outpost at

Majoreni was attacked on the 23rd, but the enemy again repulsed. On

the 25th a German force of thirty-five Europeans and 150 natives, with

two maxims, attacked a mounted squadron of the Rifles, and after an

hour's bush fighting retreated, leaving eleven dead and many wounded.

The next day a strong force of the enemy, including fifty Europeans,

attacked the Rifles at Mzirna, but were repulsed, leaving seventeen

dead. During November and December the published casualty lists showed

that fighting had been actively continued and occasional letters home

suggested that it was severe. On November 19 complaint was made in the

House of Lords by Lord Curzon of the secretiveness of the Government,

which had merely issued "a very extensive list of casualties." Lord

Crewe pointed out that German East Africa covered some 350,000 square

miles and had a white German population of between 5,000 and 6,000. The

German force there had been reinforced by reservists and he believed

that some naval force had also been brought from the Far East. The

Germans were well provided with weapons and had machine guns and

constituted a formidable force. While the white population of British

East Africa equalled the German (Lord Crewe was in error here) it had

not the same military element in it. The native infantry and police

force in the German Protectorate numbered 2,000. In the British there

was a considerable force of native police and a military force--the

Rifles--which, though not so large, was extremely efficient and well

officered. It was clear that at the beginning of the war our position

in East Africa could not be altogether secure and it was necessary to

send reinforcements at an early date. The fighting had been in a good

many parts, with varying results and considerable losses. The total

casualties in two months were about 900. It had become necessary to

send reinforcements from India. The fate of the German possessions,

Lord Crewe pointed out, would depend on the ultimate settlement of the

war; but it was necessary to preserve the position of Great Britain as

the paramount Power in Central Africa where she would repel the German

attacks with all the force she could muster. That was the position of

affairs when the year closed. In the earlier months of the year there

had been serious trouble in Jubaland Province, owing to an incursion

of Somalis, armed with rifles. They had probably been fighting against

us in Northern Somaliland. A new post had just been set up at Seremli

with Lieut. Lloyd Jones and a few men in charge. The Somalis--of the

Marehan tribe--said they had not come to fight and were told that

they must give up their rifles, which had apparently been obtained

from Abyssinia, which does a large trade in arms and ammunition--a

trade which it has been found impossible to keep out of Jubaland and

Somaliland as also out of the Sudan border country. The Somalis would

not give up their arms and went away, but returned and attacked the

station. Lieut. Lloyd Jones was severely wounded. Troops had been

telegraphed for through the Italian Marconi station at Bardera and

companies of Rifles hurriedly sent from Uganda and Nyasaland. There was

severe fighting, the Somalis abandoning their bush tactics and charging

down on the troops. They failed to break the square, owing in part to

the maxim fire. A midnight attack was also repulsed. Our losses were

slight and that of the Somalis heavy. Other operations followed later

for the disarmament of the invaders. Two British officers lost their

lives in the fighting and the affair illustrated the extreme difficulty

of maintaining authority in Jubaland, notwithstanding the co-operation

of the Italians on the other side of the Juba. Until the traffic in

arms can be stopped Somali incursions could be checked only by a chain

of posts or the constant use of a mobile force. The Protectorate was

making good progress until the war plunged African affairs everywhere

into confusion. One effect of the war was to suspend the agitation at

Nairobi and in the settled districts for some form of self-government,

beginning with representation on the Legislative Council. Nor has

the question of the reservation of the Highlands for European

settlement advanced. A Bill was passed without opposition--scarcely

without criticism--in the Imperial Parliament guaranteeing a loan of

3,000,000_l._ for the Protectorates of British East Africa, Uganda, and

Nyasaland. In East Africa the money was to be disbursed upon harbour

works and wharves at Kililundi, on roads and bridges, improvements of

the Uganda Railway, additional rolling stock and more steamers for Lake

Nyanza; and on roads and railways in Nyasa. Repayment of the loan is

to be made within forty years. No charge on the British Treasury was

involved.

_Abyssinia_ seems to have had more trouble than usual with her

border peoples, especially on the South. The Italians in _Eritrea_

strengthened their forces and this in conjunction with the gathering

of Abyssinian troops, sent for the purpose of suppressing border

troubles, gave rise to a suspicion that Italy had ambitions hostile to

the Emperor Lidj Iassu; but these were dissipated by Signor Martini,

the Minister for the Colonies in Rome. Italy's policy, he declared,

was restricted to protecting the frontier and holding aloof from

Abyssinia's internal affairs. Lidj Iassu has made his father, Ras

Michael, King of Wotto and Tigre. Ras Michael is the husband of a

daughter of the late Emperor Menelik, and Lidj Iassu is a youth.

Concerning _German East Africa_ the prosperity of 1913 continued up

to the outbreak of war, and it appeared that the completion of the

trunk line from the coast to Kigoma, on Lake Tanganyika, several

months in advance of the scheduled time, stimulated the energies of

the administration and the settlers. The effect of this completion on

the traffic of the Uganda Railway had not developed and will not be

injurious if German Africa passes into British hands as the result of

the war. The line is an achievement scarcely less remarkable than the

Uganda Railway, and must in any event have great influence upon African

commerce. Two trains a week were at first run to the Lake, the journey

taking rather less than one hundred hours.

A glance at a map will show that for the trade of Central Africa the

German line enters into competition both with the British lines to

the south and east and the Belgian Central Railway through the Valley

of the Lukuga to the Congo shore of the Lake. The Belgian line was

expected to be completed in June; but goods by it must be transhipped

before they reach the west coast, whereas the German railway carries

them through to the east coast, at Dar-es-Salaam, now one of the

best-equipped ports on the continent. In connexion with the completion

of this railway the Germans had intended to hold an exhibition at

Dar-es-Salaam, the capital, in August and elaborate preparations had

been made. German scientists have for many years worked actively in

the Protectorate. Dr. Hans Reck, of Berlin University, discovered in

the north of the region the skeleton of a man of the diluvial period

of Africa. Dr. Reck estimated the age of the skull at 150,000 years.

It was found with mammoth fossils and resembled that of the primitive

Bushman. The rest of the skeleton was on its way to Europe.

In _Nyasaland_ (British Central Africa) where part of the Lake forms

the German frontier, the war had serious consequences. The Germans

invaded the country and on September 8 a British force was launched

against a body some 400 strong. The enemy evaded this force and

attacked the post at Karonga, held by an officer with fifty African

Rifles and a few police and civilians. Resistance was kept up until

the main body arrived and drove the enemy back. The fighting lasted

through the day and the Governor reported to the Colonial Office that

"the enemy fought with great determination and had to be dislodged by

repeated bayonet charges." They were ultimately driven towards Songwe,

the British being too exhausted to pursue. Two field and two machine

guns were captured by our force and the enemy lost seven officers

killed and two captured. Karonga is the principal station in the north

of the Protectorate and Songwe is the German frontier post farther

north. On that day (Sept. 13) there was a sharp engagement on the Kisu

Kenu Road between the King's African Rifles and about 400 Germans,

including fifty whites. The German losses throughout were heavy and of

the nineteen officers engaged at Karonga eleven were accounted for,

and of those who escaped three were known to have been wounded. The

Secretary of State telegraphed "his sincere appreciation of the loyal

and valuable assistance rendered by all sections of the community."

Later news was lacking. _Zanzibar_, which is now administered by a

Resident under the authority of the Governor of British East Africa,

had, as far as was known in England, an uneventful year.

IV. NORTH AND WEST AFRICA.

Until the outbreak of war France had pursued with success her policy

of consolidating her interests in _Morocco_. Practically all that is

known of the condition of the Protectorate since July is that Moorish

and Senegalese troops, in numbers not disclosed, were withdrawn and

employed in the fighting in France, as were French and native troops in

Algeria and Tunis. An indication that the internal state of the country

was satisfactory, and that the Turkish Sultan's proclamation of a

Holy War had not then had any overt effect in North-West Africa, was

afforded--for what it may be worth--by a congratulatory message from

the Sultan of Morocco to his troops with the Allies. This applauded

them for the help they were giving "against the enemies of humanity,

liberty and civilisation," exhorted them to steadfastness and expressed

entire confidence in an ultimate triumph. Germans and Austrians

were expelled from the Protectorate, and many who were believed to

be concerned in hostile intrigues were arrested. A batch of German

merchants were accused of plotting for a native rising and were put on

trial by court martial, with what result is not known. There had been

some native trouble in the Zaian district in June, where a detachment

of troops guarding telegraphist workers were attacked between Mekinez

and Rabat, and there was evidence that in the mountains of the Middle

Atlas there was much tribal unrest. An expedition was sent to reduce

the clans to subjection. No particulars were forthcoming of German

political activity within the Protectorate, and there is reason to

believe that the Zaian difficulties were merely part of the general

problem of pacification in the less accessible regions of the country.

Substantial progress was made in this direction in May by the French

occupation of Taza, which lies, roughly, midway between Fez and the

Algerian frontier. Stout resistance had been expected, but the French

surprised the tribesmen by a forced night march and the town was

seized with little loss. It was believed that this easy mastery of the

Beni-Udjam clans would finally pacify the inhabitants of the northern

region, who were said to have accepted the situation willingly. There

still remained an immense triangular area to the south comprising the

Middle and Great Atlas ranges, where chains of military posts had yet

to be established; but with the subjugation of the marauding tribes

of the North it was assumed that the way was cleared for the railway

between Fez and Guersif, on the Algerian frontier, thus linking up

Tunis by an unbroken line, _via_ Ujda, to Rabat and Casablanca on

the Atlantic. Further fighting was reported, however, in the Taza

region late in July, the enemy attacking a strong French force under

General Gouraud. They were beaten off, but the French lost fifty

killed and ninety wounded. On August 4 the curtain fell and the true

condition of Morocco, and the whole of North Africa, is not likely to

be ascertainable until Peace. As a consequence of the Franco-Spanish

treaty of Madrid there was entire co-operation between the two Powers

in Morocco, and the advance on Taza was taken in conjunction with

Spanish activity in the Mediterranean zone and after a visit by General

Lyantey, the French Resident General, to Madrid. An incidental result

of this visit was the abolition of the Capitulations providing for

Consular jurisdiction over French and British subjects, who now come

under the ordinary tribunals in each Protectorate. The Convention

was also ratified for the construction of a railway from Tangier to

Fez, and engineers and surveyors were at work in the belief that the

tribesmen in that part of the Protectorates were sufficiently pacified

to permit of the laying of the rails. There was the usual sporadic

fighting in the Riff. In _Algeria_ a financial difficulty arose from

a request by the French Government for a contribution to the cost of

military defence in France. No demand was made, but it was pointed

out that other French colonies contribute, and it was suggested that

Algeria could spare 5,000,000 francs. Though acceding to the request on

patriotic grounds, the _Delegations Financières_, in view of the heavy

development expenses of the country, offered 4,000,000 francs, and to

raise this sum additional taxation had to be imposed. Authority was

asked for a loan of 55,000,000 francs, secured on the State railways,

the money to be expended on improving and extending the system; but the

war appears to have put this project in abeyance.

_Tripoli_ and _Cyrenaica_, within the range of the Italian coastal

occupation, appear to have continued in the quiescent condition

produced by the Italian successes in the early part of 1913. From

a Treasury statement issued in Rome the cost of the acquisition

was 45,200,000_l._ On the outbreak of war there were reports of a

recrudescence of native trouble, which was attributed to German

intrigue. Allegations were made against the German Consul in Tripoli,

who was arrested, with other Germans, said to be army officers and

believed to be engaged in native dealings hostile to Italy. According

to Rome newspapers the object of the Germans was to instigate a Holy

War. A mysterious incident, conjectured to be in connexion with the

affairs of the Tripolitaine, was a visit of a Senussi Sheikh--El Sayed

Idris El Senussi, a cousin of the Sheikh El Senussi--to the Khedive at

Cairo in June. He was to proceed to Constantinople, and the report was

that he sought to arrange with the Porte and Italy a pact under which,

by the payment of a tribute to Italy, the hinterland would not be

entered by that Power. Whatever the object of the visit the events of

August and September made it the more significant. No reports of other

activity by the Senussi were forthcoming.

The war had extended but slightly to _Nigeria_ by the end of the year.

Small raids by Germans from the Cameroons--presumably with native

troops--had been made, but in each case, said the Colonial Office, the

parties were either quickly withdrawn or driven back. On November 16

there was a fight near Bakundi in which District Officer Glenny was

killed. "The German force was subsequently driven back and dispersed."

On the next day there was an encounter near Marna, and Lieutenant A.

R. Peel and Mr. M. Percival, a mining engineer who had volunteered,

lost their lives. In August the Colonial Office announced temporary

reductions in the railway rates and scale of royalties affecting the

tin mining industry. A further reduction was possible in 1915. It

appeared from the speech of the chairman of the Niger Company (the

Earl of Scarborough) that cash trade has now displaced barter trade

in all but the outlying districts, and that competing firms, British

and foreign, are contesting the commercial supremacy of the Company,

especially at Kano. The tin industry has not realised the extravagant

expectations of the "boom" period; but there are proved areas which

are being worked with success. The Colonial Office issued in December

a Report dealing chiefly with the setting up by Sir Frederick Lugard

of a native judiciary for the administration of tribal laws. The

amalgamation of the North and South Protectorates took effect on

January 1, but sufficient time has not yet passed for the full benefits

of the unification to be appraised. At the outset His Majesty sent a

message of good wishes to the Emirs and chiefs and other inhabitants,

and Sir Frederick Lugard replied on their behalf, saying that he

had taken steps to communicate the message, and asked the Colonial

Secretary to assure His Majesty of an abiding loyalty.

The war was vigorously prosecuted in the _Cameroons_. On August 25 a

Nigerian force under Colonel P. Maclear moved out from Yola, crossed

the frontier and attacked and occupied Tepe, but lost two officers

killed and two wounded. Pushing on to Saratse Colonel Maclear attacked

the German station at Garua, but, after capturing a fort, was heavily

attacked at dawn, and, after suffering considerable loss, was compelled

to retire into British territory. Colonel Maclear and four other

officers were killed and two medical officers captured. Meanwhile two

other British columns had crossed the frontier and left a garrison

at Nsanakang, which on September 6 at 2 A.M. was "suddenly attacked

by the enemy, who had received strong reinforcements. This attack

was repulsed, but a second one, made at 5 A.M., proved successful

after a stubborn resistance. The report of this engagement states

that our troops fought magnificently, as even the Germans admitted.

The casualties were heavy and Nsanakang was neutralised in order

that the wounded might be attended to." Meanwhile French troops from

Libreville had landed in Corisco Bay from a warship, which sunk two

German auxiliaries, and on September 26 successfully attacked Ukoko;

and H.M.S. _Cumberland_ and _Dwarf_, having reconnoitred the mouth of

the Cameroons River, landed an Anglo-French force under cover of a

bombardment and entered Duala, the capital, and Bonaberi, which both

surrendered unconditionally. The joint force was under the command

of Brigadier-General C. M. Dobell. The wireless station had been

destroyed. Little damage had been done by the bombardment. Forty

thousand tons of German shipping was captured in the harbour. The

German forces had retreated inland in three directions and the Allies

were pursuing. On December 21 the Colonial Office announced the opening

of the port of Duala to trade. The German tariff would be enforced for

the present, but trade with the enemy was prohibited, and limited to

such areas as the military authorities thought fit. The latest news

of the fighting was from a French source and showed that there had

been severe conflicts at Edea, some fifty-six miles from Duala, on the

railway running south-east from that port.

In _Togoland_ the Germans made an unconditional submission.

Lieut.-Colonel Bryant, commanding our forces which had passed into

Togoland from the Gold Coast, reported on August 24 that the German

wireless station at Kamina had been destroyed by the enemy, and that

they had sent a flag of truce offering to capitulate if given the

honours of war and certain conditions. They were told they were not in

a position to ask for terms and must capitulate, which they did after

some hours' delay. The Allied force--French native troops acting with

a Gold Coast frontier force--thereupon occupied Kamina. The cost of

these operations was 60,000_l._ and the Legislative Council of the Gold

Coast Colony passed a resolution offering to pay it as "a tangible

expression of the widely manifested wishes of the inhabitants to afford

their loyal support to His Majesty's Government, and to manifest their

sympathy with it in the righteous war in which the Empire is engaged."

On December 2 the Governor telegraphed that the Revenue Estimates

having disclosed a much more favourable position than was expected

he had inserted, "at the earnestly expressed wish of the unofficial

members of the Council," a sum of 80,000_l._ as a contribution by the

Gold Coast during 1915 to the expenses of the war, this in addition

to the Togoland payment. Mr. Harcourt replied that the offer would be

gladly accepted "if it should appear that the financial position of the

Gold Coast allows of so large a contribution."

From the _Belgian Congo_ news was very scanty, and such fighting as

occurred took place on the frontier in mid-Africa, chiefly it seems

south of Tanganyika. A report from the Governor-General of Katanga

Province spoke of "a complete defeat" of the Germans at Ki Senei, on

the Lake. But no sufficient information is yet available to show how

far the Congo was affected by the war. The Congo Estimates settled at

Brussels in March disclosed a deficit of 856,000_l._ It was expected by

M. Renkin, Minister for the Colonies, that the Central Railway would

reach Lake Tanganyika in June. Touching the competition of the German

line from the Lake to the east coast, he admitted that it would modify

transport conditions in the Congo by attracting traffic which would

otherwise flow to the west; but he deprecated exaggeration about German

influence in Africa and thought it an advantage to Belgium that the

Great African lines should meet in the Congo. New railway projects for

the Congo, extending over 2,000 miles, were submitted to Parliament;

but the war has deferred them indefinitely. Diamonds are now among the

exports of the Congo, and the consignments to Brussels, on account of

the Société Internationale Forestière et Minère, were reported to be

of good quality. German enterprise, in Africa extended to _Portuguese

West Africa_ before the war, a powerful financial group entering

upon the preliminaries of railway construction from the coast. When

war was declared enterprise took the form of a military violation of

Portuguese territory, a small body of Germans entering South Angola.

Portuguese marines were landed and there was a frontier fight. There

were engagements on two other points of the frontier and the Germans

were represented to have been defeated. The addition of Portugal to

the combatants in Europe was, however, prevented at the time by a

formal apology through the German Consul at Loanda, and apparently the

incursion over the frontier was a military error outside the limits of

German war policy in Africa. It was an obscure incident of the war,

especially as fighting was renewed in Angola. On December 22 Portugal

resolved to take vigorous measures "for the military defence of the

Colonies and also preparations for our intervention in the war in

Europe on the side of Great Britain." The Labour difficulty on the

coast and the islands brought trouble to a Baptist missionary, the

Rev. J. S. Bowskill, who had been active in the native interest. He

was arrested at San Salvador, and the Baptist Missionary Society made

energetic representations to the Foreign Office. Sir Edward Grey,

having received information that Mr. Bowskill was to be tried by the

military authorities, telegraphed to Lisbon that it was absolutely

essential that a British Consular officer should be present at the

trial, and that the trial should be before a properly constituted civil

tribunal; and he urged that immediate orders to this effect be sent to

the local authorities. The result was that Mr. Bowskill was liberated

on parole, pending inquiry.

Except for the visit of a squadron of Austrian battleships in May, and

for such changes as the war may have brought, there is little to record

concerning _Malta_. It was used as a place of internment for deportees

from Egypt.

CHAPTER VIII.

AMERICA.

I. THE UNITED STATES OF AMERICA AND ITS DEPENDENCIES.

Apart from the effects of the cataclysm in Europe, the year was marked

by financial disturbances and trade depression, which combined with

the apparent results of the President's policy in Mexico to react

unfavourably on the position of the Administration.

At the opening of the year the President was popular in the country,

and had an unusual control over Congress. The solution of the tariff

and currency problems had cleared the way for anti-Trust legislation,

and the effect of the Report of the Pujo Committee was seen in the

voluntary resignation by the members of the great banking firm of

J. P. Morgan & Co. of thirty out of their thirty-nine directorships

in railroad and other companies. Those resigned by Mr. J. P. Morgan

included directorships of the New York Central and other Vanderbilt

lines, and of the Western Union Telegraph Company, while his partners

retired, _inter alia_, from the United States Steel Corporation, the

Guaranty and other Trust Companies, and the Westinghouse Electric and

Manufacturing Company. Other members of banking firms followed the

Morgan example.

Congress reassembled on January 12, and on January 20 President

Wilson read to it in joint session his Message dealing with "the

very difficult and intricate matter of trusts and monopolies."

Disclaiming any desire "to unsettle business or anywhere seriously

to break its established course athwart," he recommended (1) the

effectual prohibition of interlocking directorates of banks, railroads,

industrial, commercial and public service bodies; (2) a law empowering

the Interstate Commerce Commission to superintend the issue of stocks

and bonds of railways needing money for their development; (3) more

specific definition of "restraints of trade" under the Sherman Law;

(4) the creation of an Interstate Commission to aid the Courts and

provide information enabling business to conform to the Sherman Law;

(5) Legislation ensuring the punishment of persons responsible for

unlawful business practices; (6) prohibition of "holding companies"

[_i.e._ companies controlling others by owning large amounts of their

stock]; and (7) the grant to private persons of the right to bring

suits for redress based on the results of Government suits. The Message

was conciliatory in tone, and its favourable reception, especially in

financial circles, showed that the business world was ready to meet

public opinion in attenuating the features of "big business" most

resented by the public.

These recommendations were embodied in four Bills: (_a_) prohibiting

interlocking directorates, but allowing two years for their holders to

resign; (_b_) creating an Interstate Trade Commission of five members,

with wide and inquisitorial powers of investigating the business of

companies (other than railroads) engaging in interstate and foreign

commerce, and designed to aid the Attorney-General in inquiries into

offences against the anti-Trust law; (_c_) a Trade Relations Bill,

prohibiting certain unfair trade practices and enabling persons injured

by them to recover damages by the aid of the proofs established by

Government inquiries; (_d_) a Bill further defining unlawful monopoly

and restraint of trade as dealt with under the anti-Trust law, and

imposing penalties for violation. Among other items in the programme

for the session were a Rural Credits Bill facilitating advances to

farmers, and a Bill for leasing the Alaska coal lands, designed to

prevent the growth of a monopoly in them.

The President now turned his attention to foreign policy, which gave

cause for anxiety in more than one direction. A settlement of the

dispute with Colombia was already pending, but the friction with

Japan was aggravated by a Japanese Exclusion Bill (shelved eventually

through the influence of the Administration), by a drastic Immigration

Bill, and by rumours that Japan was assisting Huerta in Mexico. The

Spanish-American countries were obviously hostile to any sort of

financial protectorate by the United States, Hayti and the Dominican

Republic were seriously disturbed, and the Mexican problem still

awaited solution. The Senate was adverse to the Arbitration Treaties

(A.R., 1913, p. 459), and the Panama tolls question was pressing.

On January 26 the President conferred with the Senate Committee on

Foreign Relations, and on February 5 he stated what had already been

intimated, that he would press for the suspension of the exemption

of coastwise shipping in the current session. But the most serious

difficulty was in Mexico. Early in the year preparations had been made

for the possibility of enforced intervention by the purchase of stores

of ammunition and the order that the warships, after their pending

Southern cruises, should meet off the Mexican coast; and the alleged

attitude both of General Huerta and of Japan gave force to the demands

made for an increased Army and Fleet. But Huerta seemed likely to have

to retire, and on February 4 President Wilson issued a proclamation

removing the embargo on the export of arms to Mexico, on the ground

that, as there was now no constitutional government, the embargo

interfered with the settlement by Mexico of her own affairs--a view

which overlooked the danger that the arms imported would partly go to

Zapata and other leaders who were brigands rather than politicians, and

so might intensify the disorder. The step, nevertheless, was favourably

received by the American Press, as likely to hasten a settlement; and

public attention was temporarily diverted to other matters. The new

banking system was to be supported by banks representing some 99 per

cent. of the banking capital in the country; and business seemed to be

improving.

The President's announcement regarding the Panama tolls, however, had

set up some opposition, primarily among the shipbuilding interests, the

ultra-Protectionists and the Irish-Americans, but extending also to his

own Democratic followers; and it and his advocacy of the arbitration

treaties were attributed to a desire to establish better relations

with the European Powers in the face of possible complications in

Mexico, owing to the Benton case (p. 483), and of danger from Japan.

On March 5 he sent a Message to Congress strongly urging the repeal of

the exemption. In his own judgment, he said, exemption was a mistaken

economic policy from every point of view, and a plain breach of the

Anglo-American Treaty of 1901; it was only in the United States that

there was any doubt about the language of the Treaty, and the nation

was "too big and powerful and self-respecting" to put a strained

interpretation on its promises just because it had power enough to

read them as it pleased. "The large thing to do is the only thing we

can do--voluntary withdrawal from a position everywhere questioned

and misunderstood." Were his request not granted, he would not know

"how to deal with other matters of even greater delicacy and nearer

consequence." This appeal was effective, and the Commerce Committee of

the House favourably reported the Bill on March 6. It was, however,

strongly opposed by a number of Democrats, among them Mr. Underwood,

of Alabama, leader of the party in the House, and Senator O'Gorman, of

Maryland; by the _New York American_ and Mr. Hearst's other papers, and

by the Irish-American Press, whose chronic suspicions of Great Britain

were excited by the Ulster crisis. It was a sign of the disquiet

aroused by the Bill that Mr. Page, the American Ambassador to Great

Britain, was called to account by a resolution of the Senate for his

speech at the London dinner of the Associated Chambers of Commerce, in

which he was reported to have minimised the Monroe doctrine; but his

explanation proved satisfactory.

While the House was busy with the Bill the Senate dealt with a proposed

amendment to the Constitution, introducing women's suffrage on the

lines of the famous 15th Amendment, and providing that the right of

citizens to vote shall not be denied or abridged by the United States

or by any State on account of sex. This was voted on March 19, by 35

to 34, and thus failed to obtain the necessary two-thirds majority.

Amendments offered respectively by Senator Vardaman, of Mississippi,

rescinding the franchise granted to negroes under the 15th Amendment to

the Constitution, and by Senator Williams, of Mississippi, excluding

negro women, were rejected by 19 to 48 and 21 to 44. Apart from the

stock arguments against the proposal it departed from the practice,

hitherto broken only by the 15th Constitutional Amendment, of leaving

suffrage regulation to the separate States.

Another issue which now became temporarily prominent was that of

the restriction of the consumption of alcoholic liquors. Early in

April, the Secretary of the Navy, Mr. Daniels, took the final step in

enforcing teetotalism on the Navy by issuing an order prohibiting the

introduction from July 1, 1914, of alcoholic liquor of any kind into

any naval vessel, establishment, or station, and holding commanding

officers responsible for infringements of the rule. The men had long

been deprived of their grog, and this order, which was issued on the

advice of the Surgeon-General, extended prohibition to the officers,

who would now be unable to offer wine when entertaining guests from

foreign fleets. But a resolution was also introduced into Congress

demanding prohibition throughout the United States of the manufacture

of intoxicants "for beverage," or of their sale, by means of an

amendment to the Constitution (p. 467), and this resolution was the

subject of more memorials, for and against, than any other issue before

Congress.

To the Panama Tolls Bill the House showed itself favourable by passing

a special closure rule limiting debate on it to fifteen hours (March

1), and defeating by 200 to 179 an attempt to rescind this rule (March

27). The Bill, however, aroused much opposition among the Democratic

majority, notably from Mr. Underwood (Alabama), the Democratic leader

in the House, Speaker Clark, Mr. Wilson's most formidable rival in 1912

for the Presidential nomination, and Senator O'Gorman in the Senate,

while Senator Lodge and some other Republicans strongly supported it.

The President's attitude was regarded in some quarters as the result

of a bargain designed to conciliate Great Britain in view of the

Benton case (_post_, p. 483), and of British dissatisfaction with the

results of his policy of watchful waiting in Mexico; a view expressly

repudiated by the President himself and by the Under-Secretary for

Foreign Affairs in the House of Commons (March 29, 30). President

Wilson's foreign policy in general, including the Colombian treaty

(signed April 8, _post_, p. 461), was adversely criticised, and Mr.

Roosevelt's friends urged him to attack the Administration on his

return from his exploration in Brazil. However, the Bill was finally

passed by the House on April 1 by 247 votes to 162. It went to the

Senate, and was first dealt with by the Committee on Interoceanic

Canals. The temporary unpopularity of the Administration seemed

to be indicated by the success of Mr. Underwood in obtaining the

nomination for Senator in Alabama, and by the return at Congressional

bye-elections of a Republican in New Jersey and an anti-repeal Democrat

in Boston. The New Jersey contest had been described by the President

as giving the people an opportunity to express themselves as to his

policy.

But public attention was now diverted to a new crisis in Mexico. A

portion of the Atlantic Fleet had concentrated, after its winter

cruise, off the Mexican coast; several ships had then left to refit,

or for other reasons, and four remained: the _Florida_ and _Utah_ at

Vera Cruz, the _Connecticut_ and _Minnesota_ at Tampico. On April 10 a

party of bluejackets landed at the latter port to obtain gasolene; they

were arrested by a Federal (Huertist) colonel and marched through the

streets, but were eventually released with an apology. Admiral Mayo,

the United States commander, demanded that, by way of reparation, the

Mexican authorities should hoist the American flag and give it a salute

of twenty-one guns. President Huerta replied by a proposal that the

United States and Mexican flags should be hoisted together and saluted

reciprocally, gun for gun, and that an agreement to that effect should

be recorded in a protocol. The United States Government regarded this

course as a recognition of the Huerta Government, and were willing only

that the American firing should follow the Mexican. A time-limit (6

P.M. on April 19) was eventually fixed for General Huerta's compliance.

The United States had also to complain of the arrest of a naval

mail-carrier at Vera Cruz. On April 20 President Wilson read a message

to Congress asking it to approve the use of "the armed forces of the

United States in such ways and to such extent as may be necessary to

obtain from General Huerta and his adherents the full recognition of

the rights and dignity of the United States." This, he said, would not

mean war with the Mexican people, but only with General Huerta and

his supporters, and the object of the United States would only be to

restore to the Mexicans freedom to set up their own laws and Government.

A joint resolution was introduced into both Houses embodying the

President's demand, declaring that he was justified in the employment

of the armed forces of the United States to enforce the demand on

Huerta for unequivocal amends to its Government. It was passed in the

House by 337 to 37, but before it had passed the Senate Rear-Admiral

Fletcher was ordered (April 21) to seize the Vera Cruz custom house, so

as to prevent the landing of munitions for the Huertists, expected from

Havre by the German steamer _Ypiranga_. He first demanded, through the

United States Consul, the surrender of the town; on receiving a refusal

he landed a body of marines, who were fired on by snipers, and were

assisted by the guns of the United States warship _Prairie_. Shells

were fired also from the _Utah_, and eventually most of the Mexicans

retreated to the west of the town, the rest sniping the invaders from

the housetops. Next day, April 22, the American ships shelled other

buildings occupied by snipers, together with the Naval Academy and the

artillery barracks, and practically took the town.

The American people, as a whole, rallied to the support of the

President. There was some war feeling, though hardly among the

politicians; the President was generally backed by the Press, the

Churches, and even the labour unions, though the Industrial Workers

of the World threatened a general strike in the event of war. The

joint resolution was passed, in a modified form, substituted in the

Senate and accepted by the House; but the insult to the flag was an

occasion for trying to end the anarchy in Mexico. A force of some

4,000 was embarked at Galveston, troops were also sent to defend the

Mexican border against raids, the United States warships _Louisiana_

and _Mississippi_ were despatched to Vera Cruz, and a Bill was passed

by Congress authorising the mustering of the National Guard and the

Regular Army. General Carranza, however, disappointed American hopes by

declaring that the seizure of Vera Cruz was an affront to the Mexican

people, and demanding its evacuation; and in view of his attitude,

the United States Government hesitated to seize Tampico. British and

German subjects meanwhile were warned to leave Mexico, and General

Huerta facilitated their departure; and gave Mr. Nelson O'Shaughnessy,

the American _charge d'affaires_, his passport.

A temporary lull in the warlike preparations was now set up by the

offer of mediation made by Argentina, Brazil, and Chile, which was

cordially welcomed by President Wilson and took shape in the Conference

at Niagara Falls (_post_, p. 484). An armistice was arranged meanwhile,

and General Funston took over Vera Cruz from the naval authorities on

May 1. The public funeral of some of the marines and bluejackets killed

in the fighting (May 11) afforded the President another opportunity to

emphasise his purpose. Going with the procession from Battery Park,

New York, to the Brooklyn Navy Yard, he delivered an address, paying

a tribute to the patriotism of the slain, and adding: "We have gone

down to Mexico to serve mankind if we can find a way. We do not want

to fight the Mexicans; we want to serve them if we can." In a war of

service, he proceeded, it was a proud thing to die; and it was as hard,

he thought, to do one's duty when men were sneering at one as when

under fire. "When they shoot at you they can only take your natural

life. When they sneer at you they can wound your heart." But a man

ought to regard his conscience and the conscience of mankind.

During this lull in Mexican affairs attention was again directed

to domestic problems. The anti-Trust Bills (p. 453; consolidated,

with some omissions, into one measure) made some progress, and were

supplemented by a Railway Capitalisation Bill, providing that railroad

stock and bond issues should require authorisation by the Interstate

Commerce Commission, that facts concerning the issue should be made

public by that body, and that "interlocking directorates" should

require its authorisation. In financial quarters this measure was

regarded as far too drastic. But the railroad interests were somewhat

reassured by the favourable decision of the Interstate Commerce

Commission on an application by the Southern railroads regarding an

increase of rates. Further increases were permitted by the same body

later in the year.

The Naval Appropriation Bill, passed by the House on May 7, and

subsequently by the Senate, authorised a building programme of two

battleships, six destroyers, and eight submarines. A third battleship,

it was eventually arranged, was to be provided out of the proceeds of

the sale of the _Mississippi_ and _Idaho_ to Greece (p. 459).

While the majority in Congress struggled with the anti-Trust

programme, the Republican Opposition was provided by the disappointing

financial results of the new tariff with fresh material for attacking

the Administration. The value of imports of manufactured articles

from October 1, 1913, to April 1, 1914, as compared with the

corresponding period of 1912-13 had increased from $215,000,000 to

$228,000,000; exports of such articles had fallen to $541,000,000

against $582,000,000; materials for manufacture imported had fallen

from $517,000,000 to $409,000,000; Customs receipts had fallen from

$165,000,000 to $140,000,000. The deficit for the year had already

reached $37,000,000, and a few weeks later the new income tax proved

to be likely to yield only $30,000,000 for the first ten months of

its operation, as against estimates before its introduction by its

projectors and the Treasury respectively of $80,000,000 and $54,000,000.

The position of the Administration was not bettered by the course of

events in Mexico. The Constitutionalists, whose success it favoured

as the more legitimate claimants of authority, committed excesses at

Saltillo, Tampico and elsewhere; and the alleged murder after torture

of Private Parks, who had strayed into the Huertist lines at Vera Cruz,

stimulated the cry for drastic intervention. The Constitutionalists'

refusal to accept an armistice or to submit to the findings of the

Niagara Conference, together with the growing differences among their

leaders, gave little hope of a permanent pacification; and ultimately,

at the end of June, the conference broke up, leaving the Huertists and

Constitutionalists to arrange for another conference composed of their

representatives, which should deal with the establishment, composition,

and programme of a provisional Government.

However, the Administration obtained some success elsewhere. The

Panama Tolls Bill was debated in the Senate at considerable length;

but some waverers were conciliated by an amendment moved by Senator

Simmons (North Carolina), providing that the repeal should not impair

American rights under the Hay-Pauncefote treaty, and on June 11 the

Bill passed by 50 to 35--the majority consisting of 37 Democrats and

13 Republicans, the minority of 23 Republicans, 11 Democrats, and

a Progressive. Among the rejected amendments was one referring the

Hay-Pauncefote treaty to the Hague Court for interpretation. The Bill

was accepted by the House as amended, and signed by the President on

June 15. The honour of America was thus vindicated in the view of

Europe; and the way was cleared for the completion of the programme

of anti-Trust legislation and for the adjustment of relations with

Colombia and other Spanish-American States.

Another success for the Administration was the authorisation by

Congress of the sale to Greece of the battleships _Idaho_ and

_Mississippi_, launched in 1905, and considerably inferior, of

course, both to the newer battleships of the United States and to the

Dreadnought just purchased by Turkey from Brazil. They were, however,

of 14,465 tons each, could steam nearly seventeen knots, and carried

twelve-inch guns. They were to be sold at cost price ($11,726,000) to

pay for a Dreadnought; and the sale was partly intended to enable

Greece to be a match for Turkey, and so to avert a Greco-Turkish war.

The sale was sanctioned by Congress owing mainly to President Wilson's

influence.

Meanwhile the anti-Trust legislation had been partly postponed and

considerably modified by the Senate--notably by an amendment designed

to exempt labour unions and agricultural and mutual aid associations

from being treated as combinations in restraint of trade under the

Sherman Law; and business did not improve. It was true that the

railroad world was encouraged by the decision of the United States

Supreme Court (June 8) that a State must not impose, even within its

own borders, rates which conflicted with the fair operation of those

fixed by the Inter-State Commission for similar services in traffic

crossing the State border; but the general depression was ascribed

to the uncertainty of legislation, and the President's repeatedly

expressed view that the depression was "merely psychological" was not

generally shared. A fresh shock was given to the hopes of revival by

the largest failure on record in the dry goods trade (June 27), that

of H. B. Claflin & Co., an immense wholesale house, with liabilities

of $35,000,000, though the assets awaiting liquidation were estimated

at $44,000,000. The failure, however, was mainly caused by financing

retail customers and inability to raise money on the debts due to it,

and a reorganisation scheme was arranged later.

The situation in politics and business gave Mr. Roosevelt an excellent

opportunity for attack. On his arrival from Spain (June 25) he

denounced the President's Colombian and Mexican policy; and a few days

later (June 30) he spoke at Pittsburg in favour of the candidature

for the Senate of Mr. Gifford Pinchot, who was standing against

Senator Penrose, Republican. After attacking the Democrats for tariff

reduction, and for their "wretched" foreign policy, he denounced the

Republican managers for splitting the party, and promised that the

Progressives would have a scientific Tariff Commission, and would

recognise that big business was not necessarily purely pernicious. The

tone of his speech was less Radical than in former years, and seemed

to hint at a possible fusion of the Progressives with a reformed

Republican party.

The passing of the Panama Tolls Act had cleared the way for the

settlement of other foreign questions. Mr. Bryan was anxious to obtain

the ratification of his "Peace Commission" Treaties, supplementing

the existing Arbitration Treaties by providing for the submission

of disputes between the countries who were parties to them to a

permanent International Commission (which was allowed a year within

which to report) before going to arbitration before the Hague Court.

This Commission would be composed of five members, two appointed by

the respective Governments from their subjects, two from another

country, the fifth from another neutral country by agreement between

them. The Commission's Report would not be final, as in that case the

prerogatives of the Senate would have been infringed. The British

treaty was to be delayed for submission to the Dominion Governments,

but a number of similar treaties with the minor Powers on both sides of

the Atlantic were submitted to the Foreign Relations Committee of the

Senate.

But there were more troublesome questions ahead. The Mexican tangle

was somewhat simplified a little later by the retirement of General

Huerta (July 23, _post_, p. 485), but the Colombian Treaty, which gave

Colombia $25,000,000 as compensation for her loss of Panama in 1903,

and contained words which looked like an apology for the action of

the United States Government on that occasion, was regarded by many

politicians on both sides as both costly and humiliating; while the

Nicaragua Treaty provided for the loan to that State (in return for

the right of constructing a canal by the San Juan route and of using

certain islands as a naval base) of $3,000,000 for certain urgent

items of expenditure and the establishment of a sort of financial

Protectorate. This was regarded as doubtful policy, and as likely to

benefit certain financiers more than either of the Powers concerned,

while the Diaz Government in Nicaragua was believed to be merely the

creature of the United States. There was trouble, moreover, in Santo

Domingo, for which the United States had a certain responsibility

through having lent it financial administrators, and in Hayti, where

German creditors were pressing the Government, and revolution was

impending; and marines were sent in the middle of July to Cuba, for use

if necessary in either Republic.

The anti-Trust legislation, however, was not passed yet, and, while

business men feared its effects, the need of further regulation,

especially in the matter of interlocking directorships and stock and

bond issues, was exhibited by the report of the Interstate Commerce

Commission on the affairs of the New York, Newhaven, and Hartford

Railroad, once among the best managed systems in America, now, by

agreement with the Government, in voluntary liquidation. The inquiry

had been undertaken at the direction of the Senate, and the evidence,

especially that of Mr. Mellen, the President, had been sensational.

Substantially the Directors were found to have used illicit and corrupt

means, including bribery, extortionate commissions, and excessive

payment for properties purchased, to obtain a complete monopoly of

traffic in New England. They had increased the Company's liabilities

between 1903 and 1912 from $93,000,000 to $410,000,000, and had lost

from $60,000,000 to $90,000,000 of the stockholders' money. The

directorate contained representatives of the New York Central and

Pennsylvania Railroads, of the United States Steel Corporation, the

Standard Oil and Pullman Companies, and the stockholders seemed to have

less representation than any other interest.

Meanwhile the President had completed the arrangements necessary for

giving effect to the Currency Act (A.R., 1913, p. 459). In April the

twelve cities in which the district banks were to be were determined

as follows: Boston, New York, Philadelphia, Cleveland, Richmond,

Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas (Texas),

and San Francisco. The selection of Dallas instead of New Orleans

or Galveston, and of Cleveland instead of Cincinnati, caused some

comment, but it was explained that considerations of the wealth and

commercial importance of a city might have to be overridden by that of

the direction of trade. The Presidency of the Board was declined by Mr.

Olney (Attorney-General in the Cleveland Administration of 1893-97),

probably in view of his age; and ultimately (June 15) the nominations

were sent to the Senate as follows: Charles S. Hamlin, Boston, first

Assistant-Secretary to the Treasury, two years; Paul M. Warburg, of

Kuhn, Loeb & Co., an important banking firm, four years; Thos. D.

Jones, Chicago, six; W. Harding, Birmingham, Ala., eight, and A. C.

Miller, San Francisco, ten years. Mr. Warburg and Mr. Jones, however,

were objected to by the Senate, on the ground that they were too

closely connected with "big business," Mr. Warburg being a financier

and Mr. Jones a director of the International Harvester Company,

against which proceedings were pending under the anti-Trust Law; and

Mr. Warburg resented being cross-questioned by the Senate Committee.

They requested the President to withdraw their nominations, though Mr.

Warburg afterwards gave way and was confirmed; so that by the end of

July the Board had not yet got to work.

The war took America by surprise as it did Europe, and almost produced

a tremendous financial crisis. Practically all markets were closed, and

shipping and exchange, for a short time, were utterly disorganised. On

July 31 the Stock Exchange did not open, the news received during the

night indicating that an immense amount of stock would be offered not

only from American but from European holders, and that consequently

a drain of gold would be set up from the United States.[29] Cargoes

accumulated at the ports, inasmuch as the banks would not negotiate

bills of lading on uninsured freight, and insurance was paralysed. Five

hundred million dollars of emergency currency was at once printed, for

use under the Aldrich-Vreeland Act of 1908, which permitted sudden

expansion in emergencies (A.R., 1908, p. 446), and the Secretary of the

Treasury promised the assistance of his Department to the utmost extent

of its powers. A Bill was hastily passed by the Senate, authorising

the Secretary of the Navy to establish naval lines to carry mails,

passengers and freight to South America and Europe, a course, however,

which proved unnecessary owing to the activity of the British Fleet in

recovering command of the sea.

But the _Mauretania_ and _Cedric_ had to put into Halifax; the German

liner _Kronprinzessin Cecilie_, with a large consignment of gold on

board for London, was stopped on her way by wireless orders, and

crept back without lights to Bar Harbour, Maine, where she remained

for some months through fear of capture; eventually she made her way

through coastal waters to Boston. The plight of Americans in Europe

was serious (p. 187). Even more completely than British tourists, they

were held up by the worthlessness, for the moment, of all drafts and

means of credit, and were stranded, not only on the Continent, but

in Great Britain. The Administration, the Embassies, the Consulates,

and private and voluntary effort, worked hard to get them home; the

American cruiser _Tennessee_ brought $250,000 in gold to facilitate the

process (Aug. 20); and special trains (Aug. 26 and 29) took 3,000 from

Geneva to Paris; these were required to stay in specified hotels, and

to leave Havre for New York on appointed dates. An American Committee

in London did admirable work in advising and repatriating others, and

special trains were also run from Germany to Rotterdam and from Austria

to Genoa, whence special steamers were despatched to New York.

At the outset of the war President Wilson tendered his services

for mediation at once or at any future time to all the European

Powers involved; but the offer was premature and brought no definite

response. Strict neutrality was observed, though a few German liners,

anticipating the declaration of war, put to sea with stores and

coal for the converted liner-cruisers; the coast was patrolled by

destroyers, and care was taken that wireless stations should not be

used for communicating with the German Fleet. From the first, except

among German-Americans and a few Irish extremists, American sympathy

was with the Allies, and in spite of the persistent but extremely

maladroit propaganda carried on by the German Ambassador, Count

Bernstorff, Professor Münsterberg of Harvard, Dr. Dernburg, the former

German Colonial Secretary, who was well acquainted with American

business circles, and some German financiers, it became more and more

positively anti-German, especially after the news of the atrocities

in Belgium and the destruction of Louvain. The Belgian Mission (p.

371) was received by the President, and the statements of its members

made a profound impression and set up a great movement to relieve

Belgian distress. The German Emperor telegraphed early in September

to President Wilson, protesting against the use imputed to the Allies

of dum-dum bullets, a use of which President Poincaré telegraphed

a denial. But President Wilson declined to commit himself in his

replies, whether to the Belgians or to the Emperor, and this reserve

was strongly condemned in view of the German atrocities. An active

agitation for peace was initiated by Mr. Hearst, which culminated in

a meeting (Sept. 20) in New York addressed by the Vice-president, the

Speaker of the Lower House of Congress, and the President of the Steel

Corporation, but it was, of course, without result. Later a shipload

of Christmas gifts for soldiers' children in the belligerent countries

was sent to Great Britain by the United States naval auxiliary vessel

_Jason_. An immense amount of Red Cross work was also done, and relief

sent to sufferers in practically all the countries most affected by the

war. By Presidential proclamation, October 4, was appointed as a day of

prayer for the peace of Europe.

On September 4 the President read a Message to Congress, advising

additional taxation to the extent of $100,000,000, of which $20,000,000

would be spent on war insurance, ship purchase, and bringing home

Americans in Europe. A loan of $100,000,000 was raised without

difficulty by New York City in short-term notes to meet foreign

obligations maturing in the near future.

Gradually the economic disturbance righted itself, with some

assistance. The Government undertook to insure cargoes against war

risks, appropriating by Act of Congress $1,000,000 for that purpose.

The difficulty of sending gold abroad was met, partly by the shipment

on the _Tennessee_ to Paris (p. 463), and more fully by depositing a

large sum in gold at Ottawa on account of the Bank of England, so that

bills could then be drawn against it as usual; and the enormous wheat

crop, followed by immense supplies of munitions of war and stores

to Great Britain and France (and even to Russia, _via_ Seattle and

Vladivostok), facilitated a readjustment of the situation. The product

most depressed was cotton, in view of the shortage of factory labour

caused in Europe by the war, though its export to Germany was not

hindered before the new year, and a "Buy a Bale" movement was started

to relieve the producers. The Ship Purchase Bill encountered unexpected

difficulties, partly because the Seamen's Bill, also pending, would

make the working of American ships more costly, still more because the

Allies objected to the purchase by the United States of the interned

German liners, the only shipping available, and the question was not

settled at the end of the year.

Some temporary difficulty arose in October through the seizure by

British cruisers of ships belonging to the Standard Oil Corporation.

The _Brindilla_ had been transferred since the war began from the

German to the American flag, but Great Britain treated the transfer

as invalid, and the vessel was taken into Halifax; the _John D.

Rockefeller_ (which had always been American), bound under the American

flag for Copenhagen, was also stopped, but released, as Denmark had

prohibited the export of oil to Germany. At the end of the year the

United States Government made a temperate protest against the British

detention of American ships and seizure of cargo on them (Dec. 30).

The war served Mr. Roosevelt as an example of the futility of

such engagements as the arbitration treaties just signed by the

Administration. His own plan for maintaining the peace of the world

was an improved Hague Court, whose decisions the nations should pledge

themselves to carry out by force.

The session of Congress closed on October 24. As there had been no

break between the session of 1914 and the ordinary session preceding

it, Congress had been sitting continuously (with very brief recesses)

for the longest period on record. The record of work was remarkable.

Following the Tariff and Currency Acts of 1913, there were the two

Acts representing President Wilson's anti-Trust programme--the Trade

Commission Act, creating a tribunal to arbitrate between commercial

disputants, and the Clayton anti-Trust Bill, preventing interlocking

directorates and otherwise controlling monopolies; the Panama Tolls

Act, the Alaska Railroad Act, providing for the construction and

working by the Government of 1,000 miles of railroad, telephones and

telegraphs; an Act regulating dealings in cotton "futures," and the

conclusion not only of twelve arbitration treaties (p. 460) but of

twenty-three Peace Commission treaties with Great Britain, Norway,

the Netherlands, Portugal, Switzerland, Denmark, Italy, Salvador,

Guatemala, Honduras, Nicaragua, Bolivia, Persia, Costa Rica, Venezuela,

Chile, Argentina, Brazil, Peru, Paraguay, France, and Spain. Besides

this there was the emergency war legislation, comprising the Emergency

Currency Act (p. 462); the insurance of war risks, to which $1,000,000

was devoted; the appropriation of $1,000,000 for special diplomatic

and consular services and the transport home of American citizens

whose return was hindered by the war; and the emergency war taxation,

which was estimated to produce from $94,000,000 to $107,000,000

annually. This included taxes on beer ($1.75 a barrel), whisky (5

cents a gallon), American still wines, champagne (25 cents a quart),

bankers ($1 per $1,000 of capital, surplus, and undivided profits),

pawn-brokers, commercial brokers, commission merchants, proprietors of

places of amusement, dealers in leaf tobacco, and cigar and cigarette

manufacturers. There were also internal revenue (stamp) taxes on a

few articles such as perfumery, on bonds, promissory notes, bills of

lading, conveyances, telegrams, telephone messages, marine, fire, and

casualty insurance, steamship tickets to foreign ports, and parlour-car

berths and seats.

Among the measures left over to the next Congress were the Immigration

Bill (p. 454), the Philippine Government Bill, and the Rural Credits

Bill (p. 453), which had not passed the Senate; a Bill empowering the

Treasury to deposit $250,000,000 in banks in the tobacco and cotton

States (to facilitate loans to the planters); constitutional amendments

respectively establishing women's suffrage throughout the Union, which

had been reintroduced after its failure in the Senate, and prohibiting

throughout the Union the sale or manufacture of intoxicants "for

beverage" (p. 455); and the Bill empowering the regulation of railroad

stock issues by the Interstate Commission. So were the treaties with

Colombia and Nicaragua, which the Senate had not yet ratified, and

Peace Commission treaties with China, Panama, the Dominican Republic,

and Russia.

The President and the Democratic majority in Congress had thus held

together--except, to some extent, on the Panama Tolls Bill--and had

carried much of their programme. But the November Congressional

and State elections showed a very marked reaction against the

Administration, and a rally in the Republican party, emphasised by

the disappearance of the semi-independent "Progressive Republicans,"

and a general return of the Progressives to the Republican fold. The

Democratic majority over all the other parties in the House together

fell from 141 to 31; and in some of the Eastern and Middle-Western

States there was a Republican "landslide." New York State, New Jersey

(the President's own State), Illinois, Wisconsin, and eleven other

States which had been Democratic in 1912 went Republican; Michigan,

Pennsylvania and Washington reverted from the Progressives to the

Republicans; New York, to the general surprise, elected a Republican

Governor. The Progressive numbers in the House fell from fifteen to

seven, though Governor Hiram Johnson secured a personal triumph by

his re-election in California. Women's suffrage was voted on in seven

States and defeated in five, in spite of much agitation just before the

election. A Socialist was elected to Congress from New York City, the

first from any Eastern State.

This sixty-third Congress, however, would not assemble earlier than

the following spring in any case, and meanwhile the sixty-second met

on December 7. Besides the legislative programme just mentioned, the

European War forced on its attention the question of national defence.

The Army League and the Navy League were agitating for an increase,

and Congressman Gardner (Republican), of Massachusetts, was pressing

for an inquiry into the "preparedness" of the nation for war. Before

the session opened President Wilson let it be known that he deprecated

such an inquiry, as likely to create an unfavourable impression abroad;

and he took the same line in his Message (Dec. 8). He dealt mainly

with the war, declaring the dearest hope of the nation to be that its

own character as the champion of peace and concord would shortly, in

God's providence, bring it an opportunity such as had seldom been

vouchsafed to any nation--"an opportunity to counsel and obtain peace

in the world and the reconciliation and healing settlement of many

matters that have hitherto cooled and interrupted the friendship of

nations." He urged the country to develop its resources so as to supply

the needs set up by the appalling destruction wrought by the war;

and he specially recommended the Ship Purchase Bill. He urged also a

larger measure of self-government for the Philippines, and a survey of

the Alaska coasts. He declared that, as regarded national defence,

they must depend, not on a standing army or a reserve army, "but upon

the citizenry, trained and accustomed to arms." They must, in short,

develop the Volunteer National Guard--the State militia system. "More

than this would merely mean that we had lost our self-possession, been

thrown off our balance by a war with which we have nothing to do. A

powerful Navy we have always regarded as our proper and natural means

of defence, but who shall tell us now what sort of Navy to build?...

We have not been negligent of national defence." They would profit by

current experience, and what was needed would be adequately done.

The War Secretary's annual Report next day, however, declared the

Army inadequate. The total maximum force available--Regulars and

National Guard--would be but 158,000, and it would take six months to

train additional volunteers; the delay, with a prepared enemy, would

be fatal. He recommended the immediate filling up of the existing

organisation, and fresh legislation dealing with enlistment and the

reserve, both in the Union and in the States. Artillery ammunition was

inadequate, and the aviation corps should be largely increased. The

Secretary of the Navy recommended a building programme for the coming

year of two Dreadnoughts, six destroyers, eight or more submarines,

one gunboat, and one oil fuel ship; he declared that expert opinion

favoured the continuance of building Dreadnoughts, and recommended that

five million dollars should be spent on the air service.

A vigorous agitation was now started for and against the increase of

armaments, but more interest was taken in the debate and division in

the Lower House of Congress (Dec. 22) on the constitutional amendment,

imposing "nation-wide prohibition" of the sale or transport of

alcoholic liquors for "beverage purposes" in the United States and all

territory subject to the jurisdiction thereof. Provision, however,

was made for continuing the supply of intoxicants for sacramental,

medicinal, and industrial purposes. The resolution proposing this

amendment (which would have had to be ratified by the legislatures

of two-thirds of the States to become valid) opened with a preamble

strongly denunciatory of alcohol as demonstrated by scientific research

to be a narcotic poison, imposing a "staggering economic burden"

on the people, and leading to crime, pauperism, insanity, disease,

and national degeneracy. The resolution was moved by Mr. Hobson,

of Alabama, and received 197 votes against 189, but it required

the support of a two-thirds majority of those present, or 258, and

therefore fell through. It divided all the parties; the Ayes comprised

114 Democrats, 67 Republicans, 12 Progressives, and 4 Independent

Republicans, the Noes 141 Democrats, 46 Republicans, 1 Independent

Republican, and 1 Progressive. Two alternatives were defeated, one

to submit the amendment to the States instead of the Legislatures,

the other prohibiting the importation of liquor into any State,

thus localising liquor manufacture. Both sides professed themselves

satisfied with the result.

The celebration of the completion of a century of peace with Great

Britain fell through, owing to the war. Committees for its promotion

had been established in both countries, and the Sulgrave Manor House,

the old house of the Washington family in Northamptonshire, had

been purchased in January by the British Committee. The persistent

British refusal to participate officially in the Panama Exhibition

at San Francisco hampered the movement, and on June 30 the House of

Representatives refused by 187 to 52 to vote money for the celebration.

In State politics--a subject of great interest to students of political

science--very few points can be mentioned here. The "eugenic" marriage

law in Wisconsin, requiring a medical certificate of sound health as

a condition of marriage, was declared unconstitutional by a State

Court; so was an ordinance of a North Carolina city (Winston-Salem)

segregating the coloured population. The November elections showed

the activity of reformers: twenty-three States voted on one or more

amendments to their Constitutions; seven on women's suffrage; six on

liquor traffic prohibition; in each of the two latter cases five States

decided against change.

Throughout the year the mining region of Colorado was almost in a state

of civil war, owing to a coal-miners' strike. In September, 1913, the

Miners' Union had called out some 11,000 men, on the masters refusing

their demands, which included liberty to buy provisions and supplies

where they pleased, and to choose their own doctors, the right to elect

their own check-weighers, better working conditions and pay, an eight

hours' day, and recognition of the union. Strike-breakers had been

imported and the State militia (which was said to be controlled by the

owners) called out to preserve order, and in April it destroyed and

burnt tent colonies sheltering the strikers and erected on land leased

by the union; women and children were killed, and order was restored

by Federal troops. Congress attempted to promote a settlement, but

ineffectually; President Wilson (May 10) ordered the disarmament of all

civilians; the State Legislature did nothing beyond authorising a bond

issue to pay the militia, closing saloons, and forbidding the carrying

of arms; mediation failed; and in September President Wilson wrote to

both sides urging a settlement on specified conditions--the enforcement

of the mining laws, the prohibition of intimidation whether of union or

of non-union labour, the continuance of work during the investigation

of grievances, and an elaborate plan for such investigation with an

ultimate appeal to a Commission of three which was to see that the

conditions were maintained. The owners made difficulties, but the

President appointed the Commission, and the unions ended the strike.

In connexion with it, the Industrial Workers of the World raised a

disturbance in New York, and Mr. John D. Rockefeller, junior, one of

the leading owners, had his residence picketed by Socialists.

Strikes of engineers and firemen on the Western and Eastern railways

was averted respectively at the end of July, when President Wilson

induced both sides to accept a plan proposed by the Federal Board of

Mediation, and in December by arbitration. The murderers of Rosenthal

in New York were executed on April 13, and Becker was again convicted

after a second trial (A.R., 1913, p. 467). Their lives had been

prolonged by the ingenuity of their lawyers. Thaw's extradition was

also confirmed in December by the Supreme Court (A.R., 1913, p. 468).

The Cape Cod Ship Canal, connecting Buzzard's Bay with Barnstable Bay,

was opened on July 29. It was a joint-stock undertaking, and had cost

$12,000,000. [For the Panama Canal see _post_, p. 486.]

_Dependencies._ From _Cuba_ there was no news of importance. In _Porto

Rico_ the November elections--the quietest on record--resulted in large

gains for the Republican party, which desires American citizenship and

eventual admission to the Union. It obtained sixteen seats in the Lower

House of the Legislature against nineteen held by the anti-American

party. The United States Government had previously appointed two

natives of the island to the Executive Council, giving the natives the

majority in it, and a Bill for giving the island popular Government had

been favourably reported in the Congress. In the _Philippines_ Governor

Burton Harrison's concessions to the natives, and the reductions of

official salaries, which drove many Americans to retire from the

service, roused severe criticism in the United States, and a Bill

promoted by the Administration, promising the islands independence, "as

soon as a stable Government shall be established in the Archipelago,"

was passed by the House of Representatives (Oct. 14) by 211 to 59,

but was not taken up by the Senate. At Christmas an unimportant and

abortive rising, promoted by an agitator named Ricarti, was reported to

have been suppressed at Manila.

II. CANADA.

Parliament met on January 14. Seven new members were introduced, six of

them supporters of the Government. Among them was Hon. Arthur Meighan,

the new Solicitor-General.

In his speech from the Throne, H.R.H. the Duke of Connaught expressed

his gratitude for the public sympathy extended to himself and the

Duchess during her serious illness. Reference was also made to the

financial stringency from which the country had been suffering,

but which was passing away. The necessity for readjusting the

representation of the people in Parliament, after the last Census,

was stated. An increase in the number of Senators from Manitoba,

Saskatchewan, Alberta and British Columbia was foreshadowed. No mention

was made of any Naval programme. The debate on the Address began on

January 19. Sir Wilfrid Laurier, the Opposition leader, moved an

amendment regretting that, while the Speech admitted that business

is in a depressed condition, there was no indication on the part of

Ministers of a determination to take any steps towards relieving the

situation. Replying to him on January 20, the Finance Minister, Hon.

W. T. White, so far indicated the policy of the Government as to point

out, (1) that "Free Food," as advocated by the Opposition, meant Free

Trade; (2) that Free Trade had long been abandoned by both parties in

Canada; (3) that the Government did not propose to depart from a policy

of reasonable Protection; (4) that the remedy for the high cost of

living--which was universal--was an increased universal production; (5)

that the Government had voted $10,000,000 for the purpose of increasing

production.

On January 21 the two Houses adjourned in token of respect to the

memory of Lord Strathcona (see _post_, Obit.). The Prime Minister

and the leader of the Opposition joined in eulogising the late Peer;

and the Prime Minister read to the House of Commons a despatch from

the Colonial Secretary conveying the deep sympathy of the Imperial

Government, and closing as follows:--

His name has been for many years a household word among us

embodying to all the thought of Canada and her marvellous progress,

as well as of his own notable career distinguished by large public

usefulness and magnificent liberality, and his memory is assured

of an honoured and abiding place in the annals of the Dominion, to

which he devoted his faithful service to the end.

Laudatory speeches were delivered also in the Senate.

The absence of any mention of a Navy Bill in 1914 was commented on by

the Opposition as proof that no "emergency" existed to justify the

Government's Bill of 1913 (A.R., 1913, p. 473). The Government replied

in effect that it was useless to bring in a Bill in 1914 in the face of

a determinedly hostile Senate; but that the policy and promise of 1913

would be carried out in due time by the Government.

The first division on the Amendment to the Address was taken on January

27, giving the Government a majority of 44. A second amendment was

at once moved, regretting that the Speech gave no indication of any

intention to take steps to secure free access to the markets of the

United States for the wheat and wheat products of Canada, by removing

the duty on wheat and wheat products coming into Canada from the United

States. This was defeated (Jan. 29) by a majority of 45.

On January 27 the Postmaster-General announced that the Parcels Post

system, which had been long under consideration, would be put into

operation on February 10. The first parcel was mailed to the Duke and

Duchess of Connaught at midnight on February 9.

On January 29 the Estimates for the year ending March 31, 1915, were

tabled. A general reduction of $12,000,000 was a marked feature.

The total was $190,735,176; there was a decrease on the Naval item

of $150,000 and of $71,905 on Militia. Subsequently, on May 27, an

additional sum of $17,438,000 was brought down, making the total

$208,173,176.

On February 10 the Bill for the Redistribution of Seats in the House of

Commons was brought down by the Prime Minister. This had been looked

for as probably the most important measure of the session. It had

been in the hands of a large Committee for some weeks, and had been

reported unanimously. The general result of the Act (Chap. 51, 1914)

is as follows: Ontario is to have 82 members; Quebec 65; Nova Scotia

16; New Brunswick 11; Manitoba 15; British Columbia 13; Prince Edward

Island, 3; Saskatchewan 16; Alberta, 12; Yukon Territory, 1; in all 234

members. On the existing representation, Ontario lost 4 seats; Quebec

(under the British North America Act of 1867) remained at 65; Nova

Scotia lost 2; New Brunswick lost 2; Manitoba gained 5; Saskatchewan

gained 6; Alberta gained 5; British Columbia gained 6; Prince Edward

Island lost 1; Yukon remained with one seat as before. The figures show

how population and political power are shifting to the West.

On February 12 the Minister of Railways laid on the table of the House

the report of a Commission to investigate the construction of the

Transcontinental Railway, under the previous Government. The report was

long and sensational in character. The conclusions of the Commissioners

were substantially that the Transcontinental Railway Commission, the

Grand Trunk Pacific Railway and those having charge of the construction

did not consider it desirable or necessary to practise or encourage

economy in construction, and that, without including the money

unnecessarily expended in building the railway east of the St. Lawrence

River, $40,000,000 at least was needlessly expended in the building of

this road. The cost of the unnecessary Eastern Section was estimated

at $35,000,000; and thus the sum total of undue expenditure was stated

at $75,000,000. The Eastern Section of the road was held by many

persons on both sides to be a needless duplication of the Intercolonial

Railway. The road was taken from the control of the Special Commission

which had thus over-expended on it, and was completed and finally

handed over to the Minister of Railways by Major Leonard, C.E., whose

successful labours were highly appreciated by the public.

The Opposition were not satisfied with the report of the Commission,

and on March 25 the former Minister of Railways moved, declaring

that the Report was "so wilfully partisan and misleading as to be

wholly unreliable," that the manifest object of the Commissioners

was "to misrepresent for party purposes rather than to investigate

in the public interest, without regard to the serious consequences

to the country or this great national undertaking; and that for the

appointment of such Commissioners, and for accepting and endorsing

their report, the Government deserved the severe censure of this

House." This motion was vehemently debated till Thursday, April 2, when

it was rejected by 105 to 67.

On April 7 the Budget speech was delivered by Hon. W. T. White, the

Minister of Finance. Many minor tariff changes were announced, but in

general, as indicated by the Minister in his speech on the Address

(p. 470), the Protective policy was maintained. The demand made from

various quarters for "Free Wheat" was refused. The Government asked

for power to increase the existing surtax to 20 per cent, if needed.

The duty on agricultural implements was reduced from 17-1/2 to 12-1/2

per cent. The large revenue and unusual surplus of 1912-13 was not

maintained; and the revenue for the year ending March 31, 1914, would

therefore be less and a large capital expenditure would have to be

provided for. The sum of $56,404,231 had been borrowed on satisfactory

terms. (The events of the next few months, of course, confounded all

calculations. The revenue to the end of December, 1914, was only

$99,635,943, as against $127,571,762 at the same date in 1913, a

shortage of $27,935,819. The total net debt to the end of 1914 had

increased by $73,182,060. The borrowings of the Government under the

authority of the legislation of the War Session in August must have

been large; but no full account would be given until the presentation

of the Budget of 1915.)

The trade of the Dominion was, of course, subject to some fluctuations.

The total aggregate trade of the year ending March 31, 1913, was

$1,085,264,449. For the year ending at the same date 1914, the amount

was $1,129,744,725. For the seven months of the fiscal year 1914-15

(_i.e._ from March 31 to Oct. 31) the total aggregate trade was

$640,171,557. The effect of the war on the aggregate trade cannot be

seen accurately till the Budget is delivered or the Customs statistics

published in the spring of 1915.

The debate on the Budget was not concluded before the Easter recess.

On the reassembling of the House on April 15 it was resumed, and

continued till April 23, when the leader of the Opposition moved an

amendment declaring that "in view of the prevailing economic conditions

of the country, it is advisable to place wheat, wheat products, and

agricultural implements on the free list, and, without doing injustice

to any class, steps should be taken to alleviate the high cost of

living by considerate removal of taxation." This amendment was defeated

by a majority of 42.

The serious question of relief to the shareholders of the defunct

Farmers' Bank was the subject of prolonged debate. On April 24 it was

announced that the Government would satisfy all the depositors. The

bank had been started on insufficient capital; and official recognition

was given to it on what turned out to be false pretences. The results

were disastrous, and the general manager was prosecuted and imprisoned.

The new Government issued a Royal Commission to investigate the

affairs of the bank, and, as a result, decided to pay the depositors.

Resolutions and a Bill based on them were carried in the Commons by the

usual Government majority. But on June 8 the Bill was thrown out in the

Senate by a non-party vote of 32 to 25, several Government supporters

voting against the measure.

One of the most serious questions of the session related to the affairs

of the Canadian Northern Railway. Aid had become necessary to enable

the company to carry on its great and varied industries. The Government

of Canada had already assumed large responsibilities in guaranteeing

the mortgage debenture stock of the company, and in payments for

construction. On April 28 the Government brought down its proposals for

relief (see _Journals of Commons_, 1914, p. 489; and _Hansard Debates_,

May 13, _sqq._). The proposal of the Government was to guarantee the

payment of principal and interest on securities of the company to

the extent of not more than $45,000,000; taking security by means of

a Trustee and Trust Deed over all the property and interests of the

company and all its subsidiary companies. Some reluctance to agree to

these terms was visible among the Government's supporters, and two

prominent Conservatives refused to support them. Some time elapsed

before the complicated series of statements made by the company,

including railways, steamships, bonds, shares, terminals, etc., could

be understood (see Votes and Proceedings, 1914, p. 859). The total

liabilities of the company to the Government were calculated at about

$197,000,000. The actual debate began on May 13. The Prime Minister's

speech was marked by the quotation for public use of messages of

approval from the Premiers of Alberta, Saskatchewan and Nova Scotia,

all Liberals, but in whose Provinces the Canadian Northern had large

interests. The "six months' hoist" (equivalent to rejection) was moved

by Mr. E. M. McDonald for the Opposition. The debate was maintained

till May 19, when the Opposition motion was rejected by 111 to 64. In

Committee various other amendments were moved, all of them defeated

by majorities of from 40 to 44. A Bill was introduced based on the

Government resolutions; it was passed in the Commons on June 2 by 85 to

38; and in the Senate on June 9 by a non-party majority of 40 to 17.

On June 1 notice was also given of a guarantee of interest on

$16,000,000 bonds of the Grand Trunk Pacific Railway to aid in the

completion of the road, the Government taking sufficient security.

Owing to the outbreak of the war in August, these various guarantees

are understood to have been of little value on a money market where

all available funds were wanted for war purposes; but the actual

results had not been made public at the close of 1914.

On May 8 it was announced from England that H.S.H. Prince Alexander

of Teck was to succeed Field-Marshal H.R.H. the Duke of Connaught as

Governor-General. The announcement was received with general approval.

The speech which the Prince made at the Canada Club, in London, on May

28, was widely copied in the Canadian Press. Owing to the war, the Duke

of Connaught consented to remain at the head of affairs, while Prince

Alexander went on duty to the front.

An important Act passed during the session was the British Nationality,

Naturalisation and Aliens Act (Chap. 44, 1914). This Act remedies a

state of things which caused inconvenience throughout the Empire.

After some years of discussion with the Home Authorities and the

other Colonies, it is now provided that a colonial certificate of

naturalisation shall be effective throughout the British Dominions. The

applicant for a certificate must have a complete knowledge of English

or French, The Canadian Act is based on the British Act (p. 209), 4 and

5 Geo. V. cap. 17.

On May 29 the announcement was made of the terrible disaster

to the steamship _Empress of Ireland_, and the loss of over a

thousand lives (Chron., May 29). The Government at once began a

Canadian investigation; and a Royal Commission, including a British

representative, was appointed to make a searching inquiry. There was

the usual crop of reports, assertions, contradictions and explanations.

The subject was however dealt with prudently in Parliament and there

was no useless debate. The Royal Commission consisted of Lord Mersey,

Sir Adolph Routhier and Chief Justice McLeod of New Brunswick. The

sittings were held at Quebec; and many counsel, English, American and

Canadian, were engaged. The Report of the Commission placed the blame

for the collision on the officers of the _Storstad_ (see p. 599, Sess.

Paper No. 21_b_, 1915). Extensive litigation has been going on since

the Report was presented, and the amounts involved are large.

The session closed on June 12 with a degree of excitement and confusion

which continued for some days after. There had been much discussion

between the two parties regarding the Representation Bill, which was

eventually passed in both Houses. But the increase in the number of

Senators from the West had to be provided for by Resolution, praying

the Imperial Parliament to alter the British North America Act, 1867,

so as to enable the new Senators to be appointed. When the measure

went to the Senate, the Act relating to the increase in the membership

of the House of Commons was accepted. But the proposals regarding the

increase of the Senate did not meet with the approval of the majority

in that House, which was still opposed to the Administration. An

amendment to the effect that the increase in the number of Senators

should not take place till after the next general election, was

refused by the Government. An accusation of bad faith was made by the

Government against the Opposition in regard to an alleged agreement to

pass this Bill and Resolution at the same time as the Representation

Bill. This accusation was denied. Controversial statements as to this

agreement were issued after the close of the session, by the Premier

and the leader of the Opposition. And there the matter ended, to be

taken up no doubt in the session of 1915.

On June 11, the day before the close of the session, both houses

agreed unanimously on an address to H.R.H. the Duke of Connaught,

Governor-General, on what was at the time thought to be his last

official appearance in Parliament. This address was presented

subsequently to the proceedings at the close of the session. The

following paragraphs may be quoted:--

In visiting every portion of our Dominion, and in the earnest

endeavour to acquire by personal contact with all classes of the

community a full and accurate knowledge of the varied conditions

prevailing in this country, and of the purpose and aspirations

which animate our national life, Your Royal Highness has but given

another evidence of that high devotion to duty which has always

inspired your actions and has ever been associated with your career.

The Canadian people will not fail to cherish a happy remembrance

of the deep and practical interest which Your Royal Highness

has invariably manifested in literature, art and industrial

pursuits in the Dominion, as well as in all philanthropic and

charitable undertakings; and they recognise most fully that Your

Royal Highness has always been ready to associate yourself with

every movement designed to improve the conditions and add to the

happiness of those to whom has been entrusted the great task and

duty of possessing and developing this portion of the Empire.

His Royal Highness, in reply, after expressing his cordial thanks

and his profound appreciation of the kindly sentiments of the

representatives of the Canadian people, said:--

During my three years of office it has been my earnest endeavour to

become acquainted with the many problems affecting the welfare and

progress of this great Dominion. Nothing has struck me more than

the energy and tenacity shown in all circumstances by its people,

and I hope that a strong sense of duty will always pervade those to

whom its destinies are entrusted.

Of their loyalty and devotion to the King and to the Empire I have

had many proofs, and I hope that Canadians will always be true to

themselves and to that great Dominion with which it has been my

pride to be connected.

He concluded by a renewed assurance of heartfelt thanks for the

generous expressions towards himself, the Duchess, and their daughter,

and of their prayers for the continued happiness, peace and prosperity

of Canada.

=The War Session.=--When the disturbances in Europe resulted on August

4 in open war, and Great Britain was precipitated into the conflict in

defence of treaties, of her allies, of international morality and of

national honour, Canada lost little time in contributing to the defence

of the Empire.

Parliament was summoned to meet on Tuesday, August 18. H.R.H. and

his staff appeared in service uniform and with few of the forms

of ceremonial display. The Speech from the Throne was brief and

practical:--

Estimates will be laid before you to provide for expenditure which

has been or may be caused by the outbreak of hostilities.

The critical period into which we have just entered has aroused to

the full the patriotism and loyalty which have always actuated the

Canadian people.

From every province and indeed from every community the response

to the call of duty has been all that could be desired. The spirit

which thus animates Canada inspires also His Majesty's Dominions

throughout the world; and we may be assured that united action to

repel the common danger will not fail to strengthen the ties that

bind together those vast Dominions in the possession and enjoyment

of the blessings of British liberty.

As representative of His Majesty the King, I must add my expression

of thanks and admiration for the splendid spirit of patriotism

and generosity that has been displayed throughout the length and

breadth of the Dominion.

The Prime Minister laid on the table the correspondence of the Imperial

Government with foreign Powers (Cd. 7467, No. 6, 1914)--which were

ordered to be printed and to be publicly distributed. Sir Wilfrid

Laurier, the Opposition leader, rose after the formal speeches in

moving the address, and delivered a very eloquent and patriotic speech.

He said:--

It is our duty, more pressing upon us than all other duties, at

once, on this first day of this extraordinary session of the

Canadian Parliament, to let Great Britain know, and to let the

friends and foes of Great Britain know, that there is in Canada

but one mind and one heart, and that all Canadians stand behind

the Mother Country, conscious and proud that she has engaged

in this war, not from any selfish motive, for any purpose of

aggrandisement, but to maintain untarnished the honour of her name,

to fulfil her obligations to her allies, to maintain her treaty

obligations, and to save civilisation from the unbridled lust of

conquest and power.

And in special reference to his French-Canadian fellow-citizens, he

said:--

If my words can be heard beyond the walls of this House in the

province from which I come, among the men whose blood flows in my

own veins, I should like them to remember that in taking their

place to-day in the ranks of the Canadian Army, to fight for the

cause of the allied nations, a double honour rests upon them. The

very cause for which they are called upon to fight is to them

doubly sacred.

The Prime Minister then followed in a necessarily more elaborate

address. He complimented Sir Wilfrid Laurier on his patriotic address.

He spoke earnestly of the efforts made by Mr. Asquith and Sir Edward

Grey to preserve the peace of Europe. He discussed all the treaties by

which the peace of Europe had been guaranteed. And with regard to the

action of Germany in Belgium, he said:--

I cannot resist the conclusion, and I do not think that any man

who reads these documents can resist the conclusion, that it was

the deliberate intention of the Government of Germany, formed many

years ago, to violate the neutrality and independence of Belgium in

case war should break out with France. I say that because every man

in this country, every man throughout the world, knows that plans

of campaign are not made after war breaks out. Plans of campaign

are made long in advance, and the German plan of campaign which

has been carried out in the present war is one which involved as a

first step in their warlike operations the absolute violation of

the independence of Belgium.

On the subject of the value of the British Navy to the Colonies and the

world, he made the following statement, which is likely to become part

of the future policy of Canada:--

It is barely two weeks since war broke out. Already nearly every

pathway across the ocean has been cleared. Our foreign commerce

has been but little interfered with, very little indeed. The

splendid organisation of the British Navy has enabled this to be

accomplished. Those who are familiar with the religious service

used at sea will remember that prayer goes up from the men of the

Navy, in peace as in war, that they may be a safeguard to their

Sovereign and his dominions and a security for such as pass upon

the seas upon their lawful occasions. The quaint words of that old

prayer express as perfectly as may be that which is most essential

for the security and integrity of this Empire, a safe pathway

across the seas. Surely that prayer has been fulfilled even in this

appalling war, for already the silent victory on the sea has been

won. The Atlantic now is, and we have every reason to believe that

the Pacific shortly will be, practically as safe and secure for

those under the protection of the flag as in times of peace.

The Prime Minister outlined the steps that had already been taken to

make the action of Canada prompt and efficient. The sum of $50,000,000

was for the present voted for war purposes. Authority was taken to

issue Dominion notes to a limited extent, and to enable the Government

to act on the general interest of the country in regard to banks, etc.

In the Senate, the proceedings were equally prompt, unanimous and

patriotic. The session closed on August 22.

Meanwhile every form of public and private patriotism was stimulated.

Volunteers came forward in larger numbers than could be handled. A

camp for 30,000 men was formed at Valcartier in Quebec. The Province

of Ontario gave $500,000 to the Imperial Government, the Province

of Nova Scotia, 100,000 tons of coal for the Navy. A large sum was

instantly raised for a hospital, or hospital ship, at the request of

H.R.H. the Duchess of Connaught. The Patriotic Fund for the maintenance

of those dependent on Volunteers was swollen to a very large amount.

The province of Prince Edward Island gave 100,000 bushels of oats,

Saskatchewan 1,500 horses. Manitoba sent a million bags of flour. A

regiment was offered by Major Hamilton Gault of Montreal, who, with his

wife, went to the front with his men. H.R.H. the Duke of Connaught went

to live among the troops at the camp, where his presence was inspiring,

and his experience valuable. The Volunteers embarked about the end

of September, under convoy, and were in training under hard weather

conditions till towards the close of the year, when at least a portion

of the contingent was sent to the front; the results had not been

officially stated at the close of the year.

_The Provinces._--The Legislature of Ontario met on February 18.

Two Bills only, of any consequence, were promised, a Redistribution

Bill and a Workmen's Compensation Bill. An amendment to the Address,

regretting the absence of any effort to remedy the conditions of labour

in the Province, was defeated by 58 to 19. A surplus of $230,000

was announced by the Treasurer. New taxes were imposed on business

corporations, to provide about $600,000 extra revenue. The total

expenditure for the fiscal year ending October 31, 1914, was calculated

at $17,437,738. A general election (June 29) resulted in the success of

the Whitney (Conservative) Government by a majority of 55 members, a

decrease of 9 from the majority at the close of the session. During the

early autumn the Ontario Premier (Sir James Whitney) died; and he was

succeeded by the Hon. W. H. Hearst, who was first elected in 1908. The

new Premier reorganised his Ministry (Oct. 2); but no session had been

held at the close of 1914.

The _Quebec_ Legislature, which was sitting at the close of 1913,

resumed business on January 7, 1914. On January 23, charges having

been made against certain members of corruption, a House Committee

was appointed to investigate them. A somewhat sordid state of affairs

was revealed. Acrimonious and prolonged debates took place. Finally

the Committee reported on February 12 against one member of the Lower

and two of the Upper House; these latter resigned their seats. The

Legislature was prorogued on February 19.

The _Nova Scotia_ Legislature met on February 19. The Speech from

the Throne was a review of the year very favourable in character.

A Bill for redistribution of seats and for changing the character

of the franchise was promised. Some disagreeable episodes regarding

slanders on members, and some accusations of members trafficking in

public lands, occurred; but nothing came of them in the end. The Prime

Minister of Nova Scotia later in the year made active and successful

efforts to provide help for the Belgians.

The _New Brunswick_ Legislature met on February 26. It was announced

that the financial claims of the Province against the Dominion had

been settled, and that the Province would receive a revenue of $66,382

in addition. On April 6 charges of corrupt dealing with revenues from

public lands were made against the Hon. J. K. Flemming, the provincial

Prime Minister. An investigation was ordered by the Government itself.

The result was a report unfavourable to the Minister, who accordingly

resigned.

The Legislature of _Prince Edward Island_ met on March 11. The Speech

declared that the prosperity of the Province during the past year had

been unequalled. The business of fur-farming had proved abnormally

successful, and further enterprise in that business was expected. The

Budget was encouraging. The public accounts showed a surplus of $15,500

for the first time in many years; and a surplus was estimated in the

current year. The question of the representation of the Province in the

Federal Parliament was discussed. This question has been settled by the

Representation Act passed by the Federal Parliament.

The Legislature of _Manitoba_ met on December 11, 1913, but did not

begin business till the close of the holidays in 1914. The Legislature

asked the Dominion Government to transfer to Manitoba all the natural

resources of the Province. A redistribution Bill was passed. An

appropriation of $2,500,000 was made for the improvement of roads;

and a Commission was appointed to conduct the expenditure. The Budget

showed a surplus of $473,221. A general election on June 10 resulted

in the support of the Roblin (Conservative) Government, but by a very

largely reduced majority, owing to the prominence given to delicate

questions like temperance and separate schools.

On September 15-18 a special session was held to express the loyalty

of the Province, to encourage enlistment, and to provide for the

continuance and safety of the public business.

The _Alberta_ Legislature met on October 7. The Prime Minister

announced a surplus of $100,000, in spite of the general stringency.

The response of the people of Alberta to the call for troops was

pointed to with pride, in the speech of the Lieut. Governor. The

surplus for the coming fiscal year was estimated at $1,176,967.

The speeches on the Address were all of a loyal character, and no

partisanship disturbed the short session.

The _Saskatchewan_ Legislature met in special session on September 15.

The special business was of a practical character; to grant extension

of time to railway companies engaged in construction work; to regulate

transactions of foreign companies; to enforce the closing of places

where liquor was sold; to take power to regulate executions and debts

in real estate transactions; to grant aid to the Patriotic Fund.

The _British Columbia_ Legislature met on January 15. The principal

item in the speech related to the long-discussed question of better

financial terms for the Province. The public accounts, ending March

31, 1913, showed a deficit of $1,846,228, due to expenditure on public

works. A measure for raising a loan of $10,000,000 was passed. Further

aid, much discussed, was granted to the Canadian Northern Railway, and

other railroads. The session closed on March 5. [For the attempted

immigration from India in the _Komagata Maru_, see p. 407.]

III. NEWFOUNDLAND.

The general depression which prevailed throughout the world was

severely felt in Newfoundland during the year. One of the large iron

mines on Bell Island closed down early in the year, and since the

war commenced the other company has also stopped operations. The ice

conditions prevailing early in the year hindered trade and commerce,

and the fishery operations were seriously impeded by the late ice

blockade of the coasts.

The reduction of the tariff in 1912 and the trade and business

depression affected the revenue of the Colony, which, for the first

time for several years, was below the expenditure by $301,849.

At the outbreak of the war a feeling of uncertainty and distinct

uneasiness was manifested among all sections of the community,

especially as to the probable effect on trade, and more particularly

with regard to the fish markets; but by the close of the year

Newfoundland had--so far--not suffered to any great extent. At

first the most serious problems were those of exchange and war risk

insurance, and for a time these caused considerable anxiety. These

difficulties, however, were overcome by the statesmanlike action of the

Home Government, with the result that confidence was restored and the

prices of the Colony's chief export, codfish, rose from the low figure

of about $5.00 to its present unprecedented figure of 7.50 per quintal

(112 lb.).

The increased cost of imports was heavy. This especially applies to

food stuffs, such as flour, which was comparatively cheap early in the

year, and the increased price of this commodity alone cost the people

of the colony nearly $250,000.

The following comparative statement shows the falling off in the

Colony's productiveness, due largely to the abnormal ice conditions in

the early part of the year. Fortunately the enhanced prices helped to

make up to some extent for the shortages.

1914. 1913.

Cod-fishery, quintals 1,265,565 1,408,582

Seal-fishery, seals 233,719 272,965

Lobster pack, cases 11,017 16,565

Canned Salmon, cases 1,492 2,995

Whale Fishery, whales 168 222

Herrings, salt and frozen, barrels 78,923 68,432

Iron Ore exports--tons 1,245,797 1,243,200

Pulp exports-- " 51,605 51,487

Paper " " 40,077 44,424

The values of the products exported were:--

Fishery $10,907,677

Agriculture 23,702

Forests 315,430

Mines 1,551,803

Manufactures 2,183,611

Miscellaneous 152,320

-----------

Total, 1913-14 $15,134,543

===========

The debt of the Colony was $30,450,765, as against

$29,470,060 at the close of 1913.

The public Revenue $3,618,329.

Expenditure $3,920,178.

The imports and exports were respectively as follows:--

Value of Value of

Countries. Imports. Exports.

$ $

United Kingdom 3,826,529 3,256,446

Dominion of Canada 4,861,047 1,971,809

Other British Possessions 331,415 549,418

United States 5,796,906 1,679,362

Portugal 19,970 888,930

Brazil 31 3,240,487

Spain 113,541 1,260,649

Other Countries 244,287 2,287,442

----------- -----------

Totals 1913-14 $15,193,726 $15,134,543

" 1912-13 16,012,365 14,672,889

=========== ===========

The shore fishery was about 150,000 quintals less than that of 1913

(which was also below the average). The Bank fishery showed a shortage

of about 28.00 quintals, and it is estimated that the Labrador fishery

was slightly in excess of the catch of 1913.

The demand for codfish has been brisk, and though the late shipments

to Brazil did not realise well, yet the markets in Spain, Italy and

Greece have been good, though the risks in shipping and marketing it

have materially increased. The green fish trade to the United States

and Canada was not so brisk as in 1913. The export of this commodity

so far has not suffered much from the effects of the war. Most of the

catch has been shipped and marketed in the Latin countries and in the

Mediterranean without loss.

The Government has been able this year to get the Government of

Portugal to remove the discriminating duty of 35 cents per quintal

on Newfoundland codfish entering that country. This will be a great

benefit to the trade, and will permit the colony to sell on equal terms

with the Norwegians.

The lobster catch was the shortest in the history of that fishery. It

was estimated at 11,000 cases as against 16,500 in the preceding year

and no less than 43,500 in 1904, the year of the biggest catch. The

German market, which has always consumed about 90 per cent. of the

catch, was closed at the end of the season, and the price went down

from $24.00 per case to $13.00, and when the year finished only about

3,000 cases had been exported, the rest being in the hands of the

merchants and packers who do not wish to sell at such a low figure.

The Board of Trade has recommended, in view of the falling catch and

to preserve the fishery, that 1915 be made a close season and the

Legislature will be asked to provide for this at the next meeting.

At the outbreak of the war British colliery owners were faced with

the problem of securing a suitable supply of pit-props, and a

commission visited Newfoundland to ascertain the practicability of

securing supplies. Several cargoes were exported and it is likely that

twenty-five to thirty cargoes will be obtained in 1915.

The mining companies operating in Bell Island were forced to shut

down early in the year and at the beginning of the war, and the loss

of employment to so many men caused much suffering in the part of the

country affected.

At the invitation of the Government, Professor Dunstan, of the Imperial

Institute, visited the colony in the summer to report on the coal

and shale areas in the interior. These were inspected and favourably

reported on, and it was hoped that a beginning would be made in these

new industries at an early date.

The copper mines in Notre Dame Bay will probably be opened up in the

spring of 1915.

During the year the colony was visited by His Royal Highness the Duke

of Connaught.

The Dominion Royal Commission held meetings in St. John's and took

evidence upon such subjects as "The Newfoundland fisheries," "Steam

communication," "Possibilities of increasing the Colony's imports from

other parts of the Empire," "Oil shale areas" and "Lumber exports." The

Commission also visited Bell Island and Grand Falls and took evidence

in relation to the mining and paper industries respectively of these

two places. The seal fishery showed a decrease of nearly 40,000 seals,

but the value was greater than in 1913 because of the greater size of

the seals and the higher value of the oil and the skins. This industry

was attended with two great disasters; the first occurred to the crew

of the _Newfoundland_, who were caught in a blizzard some miles from

the vessel, and seventy-eight were frozen to death, while others were

maimed for life. The other disaster occurred to the _Southern Cross_,

which was on her way home with a full load of seals when she was caught

in the blizzard of March 31 and foundered. There were 174 persons on

board and all perished. No traces have been found of either vessel or

crew. The disasters attracted the attention of the whole civilised

world and subscriptions came freely in from Canada and England, while

the people of the Colony gave well. There is now a fund of $300,000

which is being faithfully administered and which will be sufficient to

meet all cases of want.

The Herring fishery was large and on account of the high price of fish

was well marketed.

At the ordinary session of the Colonial Parliament twenty-six Acts were

passed all affecting the internal economy of the Colony; they included

one giving power to borrow 400,000_l._ for the completion of the new

branch railways and a second to raise a loan of $360,000 for the

extension of the telegraph system, the erection of lighthouses and fog

alarms, and for the construction and improvement of public buildings.

In September a special war session of the Legislature was called and

twelve measures were passed. These measures provided for the raising

of a volunteer force of 1,000 men, for increasing the number of the

Naval Reserve from 600 to 1,000 men, and for raising a loan, which was

afterwards provided by the Imperial Government, for fitting out and

keeping up the contingents. To meet the extra cost of maintaining these

men, some new duties were imposed, and Acts imposing stamp duties and

death duties were passed.

In the same session a Wireless Telegraphy Act was passed, requiring

steamers engaged in the seal fishing to be fitted with wireless

telegraphs. It was felt that, had the _Newfoundland_ had wireless on

board, no one would have been lost.

The call of the Empire was well answered in "the loyal and ancient

colony"; 750 men were sent to the Army and 500 more would be sent early

in 1915. The full number of the Naval Reserve was easily made up, and

already forty-nine have given their lives in the _Viknor_ and the _Clan

McNaughton_ (in 1915). There were fully 200 Newfoundlanders in the

Canadian contingent.

Archbishop Howley, Roman Catholic Bishop of St. Johns, died in October,

and Monsignor Roche, a native of the Colony, was appointed in his place.

IV. MEXICO AND CENTRAL AMERICA.