what satisfaction is it to him to see opportunity beckoning to him on every hand, when others have the keys of credit in their pockets and treat them as all but their own private possession?”
It is imperative, therefore, to act immediately and upon clear principles. “The country has sought and seen its path in this matter within the last few years — sees it more clearly now than it ever saw it before — much more clearly than when the last legislative proposals on the subject were made. We must have a currency, not rigid as now, but readily, elastically responsive to sound credit, the expanding and contracting credits of everyday transactions, the normal ebb and flow of personal and corporate dealings. Our banking laws must mobilize reserves; must not permit the concentration anywhere in a few hands of the monetary resources of the country or their use for speculative purposes in such volume as to hinder or impede or stand in the way of other more legitimate, more fruitful uses. And the control of the system of banking and of issue which our new laws are to set up must be public, not private, must be vested in the Government itself, so that the banks may be the instruments, not the masters, of business and of individual enterprise and initiative.”
The Wilson administration, in its earliest stages, was called upon to consider diplomatic questions that at once gave the people a clear understanding of its foreign policy. With firmness and dignity, unmoved by jingoism or hesitation, the President made clear his determination to make friendliness and justice to other nations the duty and mission of the Republic. In his brief inaugural, Mr. Wilson did not touch upon foreign questions but confined himself to the few economic home problems that pressed for solution. He may have thought, as did most of the people, that no international complications would come up until the needed tariff and currency legislation had been enacted, and he doubtless hoped that not even a small cloud would appear upon the horizon to threaten our cordial and friendly relations with other nations. But there soon came rumors of threatened trouble in one or more Republics to the south of us. There seemed to be a feeling that, after a long period of Republican rule at Washington, the new Administration's induction into office would encourage self-imposed officials to seek to obtain the reins of government. What should the attitude of the Administration be toward our neighbor countries in Central and South America? The President deemed the answer to that question important enough to make a declaration that attracted world-wide attention. He said:
“One of the chief objects of my administration will be to cultivate the friendship and deserve the confidence of our sister republics of Central and South America, and to promote in every proper and honorable way the interests which are common to the peoples of the two continents. I earnestly desire the most cordial understanding and co-operation between the peoples and leaders of America and, therefore, deem it my duty to make this brief statement.
“Co-operation is possible only when supported at every turn by the orderly processes of just government based upon law, not upon arbitrary or irregular force. We hold, as I am sure all thoughtful leaders of republican government everywhere hold, that just government rests always upon the consent of the governed, and that there can be no freedom without order based upon law and upon the public conscience and approval. We shall look to make these principles the basis of mutual intercourse, respect and helpfulness between our sister republics and ourselves. We shall lend our influence of every kind to the realization of these principles in fact and practice, knowing that disorder, personal intrigues, and defiance of constitutional rights weaken and discredit government and injure none so much as the people who are unfortunate enough to have their common life and their common affairs so tainted and disturbed. We can have no sympathy with those who seek to seize the power of government to advance their own personal interests or ambition. We are the friends of peace, but we know that there can be no lasting or stable peace in such circumstances. As friends, therefore, we shall prefer those who act in the interest of peace and honor, who protect private rights, and respect the restraints of constitutional provision. Mutual respect seems to us the indispensable foundation of friendships between states, as between individuals.
“The United States has nothing to seek in Central and South America except the lasting interests of the peoples of the two continents, the security of governments intended for the people and for no special group or interest, and the development of personal and trade relationships between the two continents which shall redound to the profit and advantage of both and interfere with the rights and liberties of neither.”
At the same time, the world was given to under stand that what is known as “dollar diplomacy” would not be countenanced by the Administration. During the Presidential campaign there had been much criticism of this policy and many had attributed to it a growing irritation in some of our sister republics.
The people of China had but latterly changed the form of their government into a republic, patterned after the United States. No great nation had recognized the Republic, and there was doubt whether it would maintain itself. The President determined not to join hands with other nations in a loan coupled with conditions that denied the government of China a free hand. He resolved also that as soon as the Chinese legislative branch was organized he would recognize the new Republic. The people of the United States rejoiced in the recognition, and shortly other nations followed. In extending the recognition of the greatest western Republic to the oldest nation that had put on the robes of self-government, the addresses by the new President of China and the American representative in China gave a thrill to all who believe that all governments derive their just powers from the consent of the governed. The words of President Wilson constitute the best expression of American thought. He wrote:
“The Government and people of the United States of America having abundantly testified their sympathy with the people of China upon their assumption of the attributes and powers of self-government deem it opportune at this time, when the representative National Assembly has met to discharge the high duty of setting the seal of full accomplishment upon the aspirations of the Chinese people, that I extend, in the name of my Government and of my countrymen, a greeting of welcome to the New China thus entering into the family of nations. In taking this step, I entertain the confident hope and expectation that in perfecting a republican form of government the Chinese nation will attain to the highest degree of development and well-being, and that under the new rule all the established obligations of China which passed to the Provisional Government will, in turn, pass to and be observed by the Government established by the Assembly.”
Early in the history of the Administration, the Japanese Minister lodged a protest with the Department of State against the proposed passage of an anti-alien land law bill by the California Legislature. The claim of the Japanese Government was that such a measure would violate treaty rights. “To lease land for commercial purposes” is granted to Japanese subjects in our treaty with Japan. It was claimed by the California Legislature that the Japanese were increasing their leases and their ownership of lands, particularly agricultural lands, in California. President Wilson set himself to see that the treaty rights of Japan should be respected. In a telegram to Governor Johnson, of California, the President “very respectfully but most earnestly advised against” the use of the words “ineligible to citizenship,” which were used in one or more of the bills pending. In a second telegram to Governor Johnson, he appealed to the Executive, the Legislature, and the people of California, “to act in the matter under consideration in a manner that cannot from any point of view be fairly challenged or called in question. If they deem it necessary to exclude all aliens who have not declared their intention to become citizens from the privilege of land ownership, they can do so along the lines already followed in the laws of many foreign countries including Japan itself. Invidious discrimination will inevitably draw in question the treaty obligations of the Government of the United States.” The President added that he was “confident the people and the legislative authorities of California would generously respond the moment the matter was presented to them as a question of national policy and national honor.”
Upon the receipt of a reply from Governor Johnson, President Wilson telegraphed to the Governor asking whether, on account of the difficulty from a distance of understanding fully the situation with regard to the sentiments and circumstances lying back
