ECONOMIC COERCION AS A SUBSTITUTE FOR WAR By HAROLD WALTER GUEST A. B., Albion College, 1921 THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS IN ECONOMICS IN THE GRADUATE SCHOOL OF THE UNIVERSITY OF ILLINOIS, 1922 URBANA, ILLINOIS /3 7 4 13 tAf 19 22 G.9 38 UNIVERSITY OF ILLINOIS THE GRADUATE SCHOOL 1 HEREBY RECOMMEND THAT THE THESIS PREPARED UNDER MY SUPERVISION BY ENTITLED. ci^ a_ * BE ACCEPTED AS FULFILLING THIS PART OF THE REQUIREMENTS FOR THE DEGREE OF _aal Recommendation concurred in* Committee on Final Examination* 'Required for doctor’s degree but not for master’s 509.398 . ' • ' • . . . ■ . Hi CONTENTS . Chapter I . Introduction . Chapter II. The First Non-Import? tion Agreement of the American Colonies against Or eat Britain. Chapter III. The Second Non-Import? tion Agreement of the American Colonies against Great Britain. Chapter IV. The Third Non- Importation Agreement of the American Colonies against Great Britain. Chapter V. The Embargo and Non-Intercourse Acts. Chapter VI. The Chinese Boycott of American Goods . Chapter VII. The Turkish Boycott of Austro-Hungarian Goods. Chapter VIII. Some Other Cases. Chapter IX. Conclusions . Bibliography . r CHAPTER I. INTRODUCTION. "The sentiment against war has too often been dissipated in rhapsodic visions of Utopia, " says Robert Goldsmith in the in- troduction to his book "A League to Enforce Peace." 1 2 He might have added that prior to 1914 few writers of the twentieth century on this subject indulged in much of anything else. The great bulk of the deluge of peace literature which flooded the -world at that time was of a maudlin, myopic type based on hopes rather than upon actual conditions in the world. The outbreak of the World War in 1914 put an end to all these happy dreams, but as the struggle went on, a new philosophy of peace began to evolve; men began to believe that out of the struggle would emerge a new order in which co-operation among nations would take the place of the jealousies of the past, and international anarchy would give way to some kind of international government. "The world will never be again what it has been," said President Wilson^ in the early days of American participation in the war, and millions of men and wo- men all over the world believed him with a hope and faith born of suffering; believed that at the close of the struggle steps would be taken tov/ards creating machinery that would make possible inter- national co-operation for the preservation of world peace. To meet this expectation of the people of the world, the League of Nations was planned and its constitution written at the Council of Versailles. Among other important features provided for in the organization of the League is the Permanent Court of 1 Goldsmith, Robert: A League to Enforce Peace , p.xix. 2 Ibid . , p. 86 . Digitized by the Internet Archive in 2016 https://archive.org/details/economiccoercionOOgues » 2 Justice. 1 In case a question arises which the disputants do not ■ wish to refer to this court or to a board of arbitration, it may be submitted to the Council, but some type of arbitration must be tried jj "The members of the League agree that they will carry out in full good faith any award that may be rendered, and that they will not resort to war against a Member of the League which complies there- with."^ In case any member of the League does resort to war con- trary to its covenants, "it shall ioso facto be deemed to have committed an act of war against all other Members of the League, I which hereby undertake immediately to subject it to the severance of all trade or financial relations, the prohibition of all inter- course between their nationals and the nationals of the covenant- breaking State, and the prevention of all financial, commercial, or personal intercourse between the nationals of the covenant-breaking State emd the nationals of any other State, whether a Member of the League or not."^ In case these measures fail to bring the reca-1- citrant state to terms, more forceful means may be employed to ac- complish that end. The question that suggests itself at this point is, To what extent caul economic pressure be depended upon as a means of coercing an offending state? The purpose of this study is to supply an answer to that question. During the tariff debates of 1319, John Tyler, then a young representative from Virginia, stood at his desk in the House of Repres entatives and declared the idea that we must become independent of other nations "a theory which 1 Cov enant of th e Leayue of Nations . Article XIV. 2 Ibid., Article XIII. 3 Ibid., Article XVI. - aims to subvert the ordinances of heaven itself." He then went on to show that in the natural state of affairs man is dependent upon man and nation upon nation. Then why should Congress consider enacting legislation which would attempt to annul the very laws of nature and of Providence?^ Whatever the value of this idea as an argument against the principle of protective tariffs, its value as a statement of the interdependence of nations will go unquestioned, and it is upon this economic dogma that the idea of economic co- ercion of nations must rest. Long before man was wise enough to make records of his doings, he was engaged in the exchange of goods and services with his fellows, and out of this trade between indiv- iduals grew trade between regions, and, as nations developed, be- p tween nations. As this interregional or international commerce developed, economic interdependence of nations also developed at equal pace. Improvements in transportation facilities and in business organiz- ation have accelerated this movement, and today we speak of world highways, world markets, and world corporations. Today nations are dependent upon international trade for even the necessities of life. John Bakeless writes: "The great industrial state -- and every great power in Europe is an industrial state in this sense -- must look beyond its bounderies not only for the food that feeds its citizens, but also for the food that feeds its mills. There 1 Annals of Congress , vol.36, p. 1952 . 2 See Bishop Huet's Histoi re du Commerc e . 4 is not a state in Europe that does not look beyond its own borders for food, raw materials, and markets. 1 "Though political internationalism has not gone very far," writes J. A. Hobson, "economic internationalism has. The whole material and moral basis of modern life is laid in a most elaborate network of commercial, physical and personal communications , by which the members of all advanced states have been brought into close and continual co-operation for many of the essential services and activities. To withdraw from these communications , or in any way *to weaken them, would be a signal damage to the life even of the French people, who are more self-sufficient for the essentials of life, economic and moral, than any other great European nation. The entire body of our economic system, on its productive and consumptive sides, has been nourished upon the freest available access to all markets, all national supplies, all economic oppor- tunities throughout the world." 2 In short, the time is rapidly drawing nea.r when our planet can be said to be an economic unit. There are several instances in the annals of modern history when the exertion of economic pressure has been used by one nation against another. The plan of this study is to examine some of these cases, as far as possible discover the effects in the countries against which the pressure was directed, and then attempt to draw some conclusions as to this means of coercion 1 Ba k e 1 e s s , John: The E co nomi c Caus es of M ode rn Wars , p . 2 0 . 2 Hobson, J. A. : Democracy after the Y, r a.r . p.197. 5 among nations. The standard by which the success of these methods will be measured in each case will not be how near to the point of starvation the people of the offending nation were brought, but the amount of satisfaction the offended nation was able to obtain in the form of redress of grievances. This is usually the standard by which we judge whether a war is successful or unsuccessful, and it is the only fair standard that can be applied here. The pacific blockade, which resembles the subject under discussion in that it cuts off an offending nation from intercourse with other countries, will not be considered in this study since the majority of writers on International Law define it as pacific in name only . 1 Some show of force must be exhibited against per- 1 The following quotations in support of this conclusion are taken from A. E. Hogan's Pacific Blockade : Bonf ils -- Manuel de droit international public (4th ed., edit- ed by Fanchelle, I 905 ) par. 993: "Au fond, c ' est bel et bien un acte de guerre, un fait d ' hostilite . " Calvo -- par. 1859: "Tout d'abord, le blocus pacifique nous semble un acte incontes tablemen t agressif, hostile et portant gravement attient aus droits imprescriptibles de tout 6tat inde- pendent; en un mot, un acte de guerre." Fanchille -- p.3S: "Le blocus ne peut exister qu'en temps de guerre, il ne peut pas y avoir de blocus en temps de paix; le pretendus blocus pacifiques n' existent pas." MM. Funck-Brentano et Sorel -- Precis du droit des gens (1337) tone iii, p.40S: "Le blocus pacifique .... constitue, sous quelque forme qu'il soit pr£sente, un veritable acte de guerre." C-essne r -- Le droit des neutres sur mer (1st ed. , Berlin, 1365), p.215: "En effet 1 ' £tablissement d'un blocus £tant l'emploi de la force est un acte d'hostilit^ qui constitue (l'£tat) en 6tat de guerre . 11 Eys -- La guerre maritime (Bruselles et Leipzig, 1381) p. 69 : "Le blocus est un acte de guerre. Le terme blocus pacifique implique ainsi contradiction." MM. Pi stoye et Duverdy -- Traite des prises maritime (1855), p.37o: "On n's. pas declare la guerre, mais on la fait reel- ement . " A. J. Balfour speaking in the House of Commons on the question of the Venezuelan blockade said: "I think it is very likely that the United States will think there can be no such thing as a pacific blockade, and I personally take the same view. Evi- 6 persons and other objects outside the jurisdiction of the nation attempting the blockade, otherwise there can be no such thing as enforcing it; and as soon as the suggestion of force enters, the term 'pacific' no longer applies. Necessarily much that is of a historical nature must be given in presenting the several cases chosen. However the recital of well-known and generally accepted facts of history will be re- duced to a minimum, and attention will be concentrated on evidence showing the conditions brought about by the exercise of economic pressure. ^ As pointed out earlier in the chapter, conditions themselves will not be taken as a criterion of the success of econ- omic pressure except as they serve to bring a nation to the point where it is willing to make concessions to the aggrieved nation. If a nation must be brought to the point of starvation before sat- isfaction can be secured from it, economic coercion is little, if any, better than war. Thus there are two questions to which answers are sought in this study: Does economic coercion function as a means of bringing an offending nation to terms instead of re- sorting to war? and, Does economic coercion make a satisfactory substitute for war? dently a blockade does involve a state of war . " Hogan himself says: "As matters stand it depends wholly on the action of the blockaded state whether a blockade shall be con- sidered as warlike or pacific." 1 The bibliography gives a list of works consulted for the general historical facts of the incidents from American history. 7 CHAPTER II. THE FIRST NON- IMPORTATION AGREEMENT . The direct cause of the first of the non- importation associations in the English colonies in America v/as the Stamp Act of 1765, which provided that every legal or commercial paper must bear a stamp procurable from a duly authorized agent of the British Empire. This was the first time that the mother country had attempted to levy internal taxes upon them, and in an outburst of indignation committees of correspondence and non- importation associations were formed in the four leading commercial colonies: New York, Massachusetts, Pennsylvania, and Rhode Island. The policy of non- importation did not really get underway until about the middle of October ( 1765) , although the objectionable act had been passed in the spring, but the news of the boycott had no sooner reached England and Scotland than its effects began bo be felt among the merchant and trading classes. Edmund Burke, writ- ing of this period, said, 'The trading interests of England lay under the most dreadful anxiety which it ever felt," ^ and the Annual Register for that year declared, "Much an these restrictive laws tended to hurt the British North American colonies, they tended still more to hurt Great Britain herself. " - The Annual Register for the following year began the discussion of the American situation with the following far from cheerful picture: "At the conclusion of our last volume, we saw the nation involved in the most distressful circumstances that could well be imagined; our manufacturers at a stand, commerce al- 1 Writings an d Speeches of Ed mun d Burke , vol.1, p.391* 2 Annua 1 Registe r. 1765, p.24. . 3 □ost totally annihilated, provisions extravagantly dear, and a numerous populace unemployed, without the means of procuring a livelihood. Such and so gloomy was the prospect that opened at home upon us along with the year." 1 Writing about the same time, a writer using the pseudonym of Anti-Se janus said: "There never was a period in English history, when the affairs of this kingdom were in a more desperate state than at present. Mint rbotham in his "View of the American United States" describes the situation as follows: "These restrictions, which the colonists had voluntarily imposed on themselves, were so well ob- served, that multitudes of artificers in England were reduced to great distress, and some of their most flourishing manufactories were, in a great measure, at a stand. "3y suspending their future purchases till the repeal of the Stamp Act, the col- onists made it the interest of merchants and manufacturers to sol- icit for that repeal. They had usually taken off so great a pro- portion of British manufactures, that the sudden stoppage of all their orders, amounting annually to several million sterling, threw some thousands in the Mother Country out of employment, and induced them, from a regard to their own interest, to advocate the measures wished for by America."^ Petition after petition poured in to Parliament praying 1 Annual Rep;ister . 1756, p.31. 2 In t er e s 1 1 nm Let t e r s . voi . 2 , p . 60 . 3 Winterbotham, W. : vol . 1 , p.440. 4 Ibid., p.439. 9 its intervention and the repeal of the legislation that was at the bottom of all the trouble. Archibald. Henderson in a. letter to Burke describes the "particular hardships" of the merchants of Glasgow saying their "very being as merchants is at stake." 1 2 3 In a letter to the Marquis of Rockingham, Sir George Saville spoke of the flood of petitions as follows: "You can find out what hurts them. They speak as ignorant men. Our tra de is h urt . Wha t the devil have you been a do in-G? For our pa rt , we dont pretend to understand your Politi cs and Ameri c an matt e rs , bu t our trade is hurt: pra y re ,ie dy it , and a plague of you (si c ) if you wont. " Horace Walpole wrote: "The situation of our manufacturers was most calamitous. Nottingham had dismissed a thousand hands; Leicester, Leeds, and other towns in proportion. Three in ten of the labourers of Ranches ter were discharged. The trade of England was not only stopped, but in danger of being lost. If trade suffered, land would suffer in Its turn. Petitions would have been sent from every trading town in England, but that they appre- hended that the very hearing of their petitions would delay the repeal . " " Merchants, tradesmen, and manufacturers of London, Leeds, Lancaster, Manchester, Leicester, Bradford in Wiltshire, Frome, Birmingham, Coventry, Maclesfield, Wolverhampton, Stourbridge, Dudley, Minehead, Taunton, Witney, Newcastle upon Tyne, Glasgow, 1 Fit zwilliam and Bourke, ed.: Correspondence of Edmund Bu rke, vol. 1 , p.253 . 2 Albemarle, Earl of: 'Memoirs of the Marquis of Ro ckingha m. vol. 2, p.253. 3 Walpole, Horace: Memoirs of George III , vol. 2, p.2lC. 1C Chippenham, and Nottingham are all listed in the proceedings of Parliament as petitioners for the repeal of the Stamp Act, "all complainihg of a great decay in the trade to the North American colonies, owing to the late obstructions and embarrassments laid thereon, and praying relief."^ The Annual Register does not attempt to compile a list of the towns and boroughs from which petitions emanated, but declares that petitions were received "from most of the trading and manuf acturing towns of the kingdom."^ These petitions are represented as saying regarding their trade "that nothing less than its utter ruin was apprehended without the immediate interposition of parliament," and that "the petitioners were, by these unhappy events, reduced to the necessity of applying to the house, in order to secure themselves and their families from impending ruin; to prevent a multitude of manufacturers from becom- ing a burden to the community, or else seeking their bread in other countries, to the irretrievable loss of the kingdom. Finally, the importunity of the trading, manufacturing, and commercial classes won out, and the Stamp Act was repealed. The joy of the people at the news of the repeal shows something of the unpopularity of the act because of the effect it had had upon industry. The Annual Register declares that the passage of the bill repealing the Stamp Act "caused more universal joy, throughout the British Dominions, than perhaps any other that can be remember- ,,4 ed. V.alpole tells how the crow r ds gathered around General Conway, 1 Pa rliamentary Histo ry of England , vol . 1 6 , p . 1 35 • 2 Annual Register , 1766, p.35* 3 Ibid . , p . 36 . 4 Ibid . , p. 46 . 1 1 who had been one of the leaders in Parliament that had worked for the repeal of the act, and how they took off their hats to Pitt "and followed his chair home with shouts and benedictions . " As for G-renville, who had led in opposing the repeal, "the crowd press- ed on him with scorn and hisses."^ There was ringing of bells, drinking the health of the King and Queen, banqueting, and illuminating of buildings, all be- cause "the merchant as well as the mechanic may hope once more to be able to pay their just debts, and the manufacturers be enabled to set the poor to work, who have been too considerable a time quite destitute of work , as well as the common necessaries of life."^ "A body of upwards of two hundred members of the house of Commons carried up the bill to the house of Peers for repealing the Amer- ican stamp-duty act; an instance of such a number going up with a single bill, had not been known in the memory of the oldest man . Edmund Burke received a letter signed by the merchants of Lancaster thanking him for his services in "removing obstructions that lay in the via.y of commerce. "4 The wording of the preamble of the act which repealed the Stamp Act is a frank confession that "the continuance of the said act would be attended with many inconveniences and may be productive of consequences greatly detrimental to the commercial interests of these kingdoms . " D Walpole says that "though Lord Rockingham with 1 Walpole, Horace: "Temolrs of G-eorge I II, vol.2, p.212. 2 Annual Register , 1766, p.o8. 3 Ibid., p.72. 4 C orresp o ndence of Edmund Burke , vol . 1 , p . 1 04 . 5 Robertson: Select Statutes Cases and Docu ments , p . 2 4 4 . ■ 12 childish arrogance and indiscretion vaunted in the palace itself that he had carried the repeal against the King, Queen, Princess- dowager, Duke of York, Lord Bute, the Tories, the Scotch, and the Opposition (and it was true he h--d), yet in reality it wf.s the clamour of trade, of the merchants, and of the manuf acturing towns, that had borne down all opposition." 1 As Burke put it, the Stamp Act "was not repealed in order to double our trade in that year, as everybody knows (whatever some merchants might have said) , but lest in that year we should have no trade at all." 2 Thus in less than six months from the time when the colon ists began their policy of non-importation, they had obtained their objective -- the repeal of the Stamp Act. There is little doubt but what the repealing act would have been passed still sooner had the commercial and industrial elements of the population been fully represented in Parliament as they are today. But, as is well known to students of English history, the aristocracy and landed gentry had a virtual monopoly on the seats of Parliament, and re- presentation of the commercial and industrial classes was usually incidental and indirect. This, coupled with the fact that of the thirteen colonies only four participated in the non-importation movement, should make the victory of the colonists strike one as being all the more remarkable and unqualified. Judging by the standard laid down in the Introduction, there can be little doubt, if any, of the success of this case of economic coercion of one nation by another. 1 Walpole, Horace: Yemoirs of G-eorge III , vol.2, p.2lt. 2 Writings and Speeches of Edmund Burke , vol.1, p.4Cl. - " 13 CHAPTER III. THE SECOND NON- IMPORTATION AG-REEIIENT . With the repeal of the Stamp Act, public opinion on both sides of the Atlantic was that there would be no more attempts to tax the American colonies, but events shaped themselves otherwise. The cabinet had Pitt as its nominal head, but his inexplicable ill- ness made it impossible for him to take the active leadership. With the Duke of Grafton acting for Pitt, no definite policy was followed but things were left to drift as they would. The one thing upon which the cabinet seemed to have signs of agreement was that to attempt to tax the colonies a. second time would be the height of folly, and all suggestions of that nature were studiously avoided. However, in an ill-starred moment Townshend, who was at the head of the exchequer, indiscreetly boasted in Parliament that he knew how to get a. revenue from the colonies "without offence." To the dismay of the rest of the Ministry, Grenville immediately challenged him to commit himself, and this Townshend did. The only now that the situation could be relieved would be for the head of the cabinet to demand Townshend' s resignation, but C-rafton did not think that he possessed that much authority and Pitt's where- abouts were unknown at that time, so Townshend was permitted to bring in a bill providing for import duties on all shipments into the colonies of tea, glass, paper, and paints.'' This bill was passed by both houses of Parliament and received the King's assent in May, 1767 . 1 2 When the news of the passing of this new act reached the 1 See the Autobiography of the Duke o f Grafton , pps . 126-1 2C. 2 Townshend's death occurred four months later. ' ' 14 colonies, there was an Immediate outburst of indignation and pro- test, and gradually the non- importation associations were revived until by the beginning of 1769 the merchants and people of nine of the colonies were co-operating in the movement. The effects were soon felt in England and Scotland as before, and those who had opposed the repeal of the Stamp Act, on the grounds that a surrend- er to the colonies at that time would w r eaken their authority in dealing with them in the future, lost no opportunities to remind the opposition of their prophesies of two or three years before. Thomas Whately wrote in a letter to G-eorge Grenville: "Mr . Maitland tells me, that many who were forv/ard for repealing the Stamp Act, confess now that you were in the right from the begin- ning, and when they exclaimed against the Americans, he bid them thank themselves, v/hose weakness had encouraged the insolence of the colonies, the truth of which reproach they admitted." 1 2 The King wrote in the sue strain in a letter to Lord North: "All men seem now to think that the fatal compliance in 1766 has encouraged the Americans annually to encrease in their pretensions to that thorough independency which one state has of another, but which is quite subversive of the obedience which a colony owes to its mother country . "- Barlow Trecothick, who had achieved considerable popular- ity because of his activity as a leader in securing petitions from the commercial and manuf acturing towns praying for the repeal of the Stamp Act, was elected to the House of Commons from the City of 1 Smith, W. J., ed.: Grenville Papers , vol.4, p.337. 2 Donne , W. B. , ed . : Correspondence of George I II with Lord North, vol . 1 , p.164 . 15 London in the elections of 1768, and became one of the leaders there in demanding the repeal of the Townshend Acts and working in other w ays for their end. "Alderman Trecothick still persists in endeavoring to get an application from the merchants for the repes.l of the duties," wrote Whately to G-renville as early in the movement as January, 1769 .^ However, there was not the flood of petitions pouring in such as had forced the Ministry and Parliament to action in 1766. Lord North had prophesied in October, 1768, that there would be a paucity of petitions on this occasion, and gave as a reason for his belief that the Americans were not living up to their non- import- ation doctrines, but were securing English goods through secret 0 commissioners. However there seems to have been little sound basis for this line of reasoning, for commerce and industry we re depressed, stocks were declining, and everybody seemed "dishearten- ■z ed and uneasy. In Eisset's history the situation was described as follows: "The British merchants who traded to America had sus- tained immense losses by the rejection of their goods; and appre- hended ruin if the associations should continue, presented petit- ions to Parliament, stating their sufferings, and praying its ,,4 intervention. The Annual Register declared the policy of the colonies to be "highly prejudicial to': the commercial interests" of the mother country, and gave figures to prove that point. In 1 G-renville Papers , vol.4, p.409. 2 Memoirs of G-eorme III, vol.4, p.64. 3 G- renvi lle Papers , vol.4, p . 368 . 4 El s s et T s , ^ vol . 2 . 'p . 6 . 5 Annual Remister . 1768, p. 67 . ■ 16 1768 the exports from England to the colonies had amounted to 2.378.000 pounds sterling, while in 1769 the value was only 1.634.000 -- a falling off of 744,000 pounds sterling, or of about thirty-one per cent., in the first year of the movement. Arguments and petitions were unnecessary with such fig- ures staring the members of the cabinet in the facfe, and they began to cast about for some plan which would conciliate the colonies without conceding any principle or sacrificing any mark of author- ity. Lord Hillsborough, Secretary of State for the Colonies at that time, issued a circular letter suggesting the possible repeal of the duties on paper and glass, 1 2 3 4 but the colonists held out for the removal of the duties on tea, sugar, wine, and molasses also. William Knox wrote to G-eorge Grenville four months before any change was actuall;/ made: "The duties upon paper and glass, but not teas, are to be repealed from principles of justice, that as the colonies are obliged to take our manyf actures , and cannot have 2 g others, 1- we ought not to tax them upon their going to them. However, nothing was done until March 5, 1770, when the London merchants trading to America attended the House of Commons in a body and presented a. petition "setting forth the great losses they had sustained, and the fatal effects of the late laws, which, for the purpose of raising a revenue in the colonies, had imposed duties upon goods exported from Great Eritain thither. This one petition served the same purpose that a multitude of petitions had served upon the previous occasion, in that it did arouse Parliament 1 Gr o n v i 1 1 e Papers , vol.4, p.3oS. 2 Because of the Navigation Acts. 3 Ibid., p.480. 4 Annual Register . 1770, p.73. 17 to action. In the debates which followed, there were frequent references made to the alarming state of commerce and industry in Britain, but again there was a hesitancy about taking any action that would resemble a surrender of authority on the part of the mother country. Lord North, who had just assumed the leadership of the Ministry, said in reply to those who favored retaining all of the duties merely as a sign of the dominion and control of the mother country over her colonies: “I know Sir, at the present per- iod, how extremely unacceptable to many gentlemen any intended favour to America will be; but such gentlemen, in the vehemence of their resentment against their fellow subjects beyond the Atlantic, must not forget the prosperity of this country." Governor Povruall also sounded warning in his speech against repealing only a portion of the duties, but his warning was ignored and the duty on tea left in force, in order to make sure that the colonies did not get the notion that Great Britain was re- nouncing her claim to the right to tax them as she saw fit. How- ever, these concessions on the part of Parliament did bring a re- laxation of the non- importation restrictions on all articles except tea, and trade returned to its former channels in greater volume than ever . The victory on this occasion was not as complete and un- qualified as upon the former occasion. However, Parliament was obliged to confess the utter failure of the Towashend Acts, for there was no effort made to conceal the fact that the tax on tea was retained out of obstinacy rather than as a source of revenue. 1 Parliamentary History of England, vol.16, p.359. 13 "I am clear there must always be one tax to keep up the right, and. as such I approve of the Tea Duty, " w rote George III to Lord North at this time. 1 So the tax on tea was retained in spite of the fact that it was frequently pointed out in the debates in Parlia- ment and elsewhere that the cost of collecting the duty would amount to more than the money taken in. Certainly no fair-minded person would claim complete success for this instance of the use of economic pressure, but it would be just as unfair to brand this case as a complete failure. It did fail in that it did. not force England to concede all, but it succeeded in a larger sense in that it forced her to acknowledge the economic futility of the offending acts and brought about the repea.1 of them as far as the revenue aspect was concerned. As in the previous case, the fact that the commercial and industrial groups were inadequately represented in the Government delayed action, and in this case prevented the re- peal being as complete as it otherwise would undoubtedly have been. 1 Cor responde nce of George I II wi th Lord North , vol.1, p.202. CHAPTER IV. THE THIRD NON - I r SPORT AT I ON AGREEMENT. Following the repeal of the duties on paints, paper, and glass, there was a lull in the quarrel between England and her Am- erican colonies. This was the result of the dire financial cir- cumstances of the East Indie. Company because of the oppressive duties on teas shipped into England. An appeal to the government for the remission of these duties was made by them, and Lord North's Ministry willingly gave the relief they requested. This enabled them to begin shipping tea to the colonies in 1773. In most cases, the Americans merely refused to purchase the tea and either sent the cargoes back or left the tea on the wharfs to rot. But in Boston the Royal Governor refused to permit the captain of a ship loaded with tea to return to England with his cargo, and the colon- ists thought he contemplated forcing the tea upon them whether they wished it or not. That was not to be thought of, a/nd the result was the famous Boston Tea Part}', when a band of about fifty men dressed as Mohawk Indians boarded the ship and threw all of the tea into the harbor . V/hen the news of this escapade reached England, indig- nation ran high among those in authority, and even those who were popularly known as friends of America agreed that Boston should be punished. Since the measures of economic pressure which the col- onists had exerted upon them had been successful to such a large degree, it was decided to give Boston a "taste of the same medi- cine." So the Boston Port Bill was pa,ssed providing "for the im- mediate removal of the officers concerned in the collection and management of his Majesty's duties of customs from the town of Bos- 20 ton, in the province of Massachusetts Bay, in North America; and to discontinue the landing and discharging, lading and shipping, of goods, wares, and merchandizes , at the said tov.ni of Boston, or with- in the harbour thereof."^ The English authorities thought that "the shutting up of the port of Boston would have been naturally a gratification to the neighboring towns, from the great benefits which would accrue to them, by the splitting and removing of its commerce; and that this would prove a fruitful source of jealousy and disunion within the province The event was however very different. The neighboring towns disdained every idea of profiting in any degree by the misfortune of their friends in Boston. The people of the province, instead of being shaken by the coercive means which were used for their subjugation, joined the more firmly together to brave the storm In the same Manner, the other colonies, in- stead of abandoning, clung the closer to their devoted sister as the danger increased; and their affection and sympathy seemed to rise in proportion to her misfortune and sufferings." 1 2 The following is an extract from the copy of the resol- utions sent to the Governor by Boston's neighboring town, Salem: "By shutting up the port of Boston, some imagine that the course of trade might be turned thither, and to our benefit; but nature, in the formation of our harbour, forbids our becoming rivals in com- merce with, that convenient mart. And were it otherwise, we must 1 Annu a 1 Register . 1774, p.103- 2 Ibid., 1775, p.2 21 be dead to every idea of justice, lost to all feelings of humanity, could we indulge one thought to sieze on wealth, and raise our fortunes on the ruins of our suffering neighbor." 1 2 3 4 The Annual Register says of another town near Boston: "Their neighbors, the merchants and inhabitants of the town and port of Marblehead, who were among those that were to profit the most by their ruin, in- stead of endeavoring to reap the fruit of their calamity, sent them a generous offer of the use of their stores and wharfs, of attend- ing to the lading and unlading of their goods, and of transacting all the business they should do at their port, without putting them to the smallest expence. The other colonies also roused to action at receiving the news of the Boston Port Act. "Even those who were moderate, or seeaed wavering, now became sanguine Nothing was to be heard of but meetings and resolutions. Liberal contributions for the relief of their distressed brethren in Boston, were everywhere recommended, and soon reduced into practise.' 1 ^ Thus England's attempt at economic coercion of one port of a large country failed in that it served as a point of union rather than as a point of division. The colonies would have had no better luck if they had been content to cut off trade with only one port of England. This time the colonies were thoroughly aroused, and when the First Continental Congress met in Philadelphia, September 5, 1774, representatives from all but one of the colonies were there. H 1 Ibid., p.9* 2 Ibid. , p. 15 . 3 Ibid . , p . 10 . 4 Georgia. 22 The most important action of this Congress was to form an agreement to import no English products after December 1, 1774, and to export to no British port, home or colonial, after September 10, 1775. Again panic took possession of the merchants and manufacturers of England and Scotland. Burke drew a most depressing picture of "an impoverished revenue; famished millions; the stagnation of nanufac- tures; the total overthrow of commerce; the increase of the poor's rate; the accumulation of taxes; innumerable bankruptcies; and other shocks which may make the fabric of public credit totter to its basis." 1 2 3 4 In Parliament there were frequent appeals "to save our commerce from that destruction which seems almost inevitable,"" but no immediate action was taken, and, as Mr. G-lover representing the West India merchants at the Bar of the House of Commons said: "High-sounding words imply no food to the hungry, no raiment to the naked; and these throughout our empire may amount to millions in number."^ Edmund Burke wrote in a letter to Richard Champion: "You tell me that Lord Clare’s slummerv still prevails in Bristol. Any diet, to be sure, in hard times, is something. This, however, is a maip;re which will scarcely keep flesh on the bones of the manufacturers, who are starving by the measures of those whom he supports."^ Lord Dudley, another member who advocated the use of harsh measures in dealing with the recalcitrant colonies, is quoted as saying in the course of the debate on the bill to restrain the 1 Parli am entary History of England , vol.18, p . 1 90 . 2 Annu al Re m i s t e r . 1775, p.103. 3 Parliamentary History of England , vol.18, p.47C. 4 Corr e spondence of Edmund Burke , vol . 2 , p . 3 • 23 commerce of all New England: "Two of the noble lords who spoke on the other side, seem to feel greatly for the distresses of the Americans; but said not a syllable of the present miseries of our own manufacturers, who were daily dismissed for want, oi employment, and whose suffering would, if not prevented by this Bill, or some other of the same nature, become intolerable. For his part, he lived in the neighborhood of one of the greatest manufacturing towns in the kingdom (Birmingham) a.nd there the state of trade and the want of work was such, that should it continue much longer, the most dreadful consequences were justly to be dreaded." 1 2 Thus representatives of both shades of political opinion in England at that time have testified to the depressed state of affairs existing because of the effectualness of the non- importation policy pursued by the colonies. Under such conditions as those depicted, Parliament was naturally besieged with petitions, not only from all parts of the British Isles, but even from all parts of the Empire. "Several meetings of the great bodies of North American merchants in London and Bristol were held, where those measures by which they were so deeply affected, were fully discussed, their consequences explained, and petitions to parliament prepared and agreed upon in both places. The times were however altered, and such an opposition now, was not productive of the efficacy or danger, which till very lately would have rendered it terrible." "The principal trading and manufac- turing towns in the kingdom, having waited to regulate their con- 1 Par l iamentary Histo ry o f E ngland , vol . 1 8 , p . 436 . 2 Annual Register . 1775, p.47. ' 24 duct as to American affairs, by that of the merchants of London and Bristol, now accordingly followed the example of those two great commercial bodies, and precared petitions upon that subject to be presented to parliament." 1 2 3 The petitioners supposed, of course, that their petitions would be considered by the House as g whole in their debates, but to their disgust a special committee was created with no other powers or duties beyond considering the petitions submitted concerning American affairs. This the oppos- r\ ition termed "the committee of oblivion" for obvious reasons. "On the day appointed for taking the American papers into consideration, a second, and very strong petition was presented from the merchants of London, in which they argue, that the con- nection between Great Britain and America originally was, and ought to be, of a commercial kind; and that the benefits derived there- from to the mother country are of the same nature; that presuming therefore on that opinion, and supported by that observ- ation, they represent, that the fundamental policy of those laws of which they complain, and the propriety of enforcing, relaxing, or amending them, are questions inseparably united with the commerce between Great Britain and America; and consequently, that the con- sideration of the one cannot be entered on, without a full discuss- ion of the other. On the day following the rejection, or rather disregard- ing of their second petition, one of their body, deputed by the 1 Ibid., p .50 . 2 Ibid . , p .52 . 3 Ibid., p.52 . , 25 committee of merchants, in their name represented at the bar of the House "that merchants revealing at that bar the state of their affairs, was i c a sure which all would wish to avoid, unless upon such great occasions as the present, where the public weal is evi- dently at stake, when their duties as good subjects requires it of them; but when the mode of examination is such as totally precludes them from answering the great public object, which in their opinion is clearly the case at present, they beg leave humbly to signify that they wave appearing before the committee which has been appointed.; and that the merchants are not under any apprehensions respecting their American debts, unless the means of remittance should be cut off by measures that may be adopted in Great Britain 1 .' 1 Another notable set of petitions was that offered by the merchants dealing with the British ’Jest Indies, who declared them- selves ready to offer evidence to prove that "several of the West- India islands could not be able to subsist after the operating of the proposed address in America."^ There were also petitions from the inhabitants of these same islands averring the sane thing. Petitions continued to come from all over the Empire in such large numbers that Burke announced that he "would not trouble the noble ' lord (North) and his train to walk out every five minutes in funer- al pomp to inter petitions."^ Why did not this great inundation of petitions have the influence they had had under similar circumstances in the past? They came too late. Burke, writing in January, 1775, said: "If 1 Ibid . , p .56 . 2 Ibid., p.56. 3 Parliamentary History of ;~Yi gland . vol . 1 8 , p . 1 82 . -1— — — — ■. — — .. .. . * ~ wt m 26 the merchants had thought fit to interfere last winter, the dis- tress of this might certainly have been prevented; conciliatory measures would have taken place." 1 2 3 4 5 But in the early part of 1775, the only thought in the minds of the party in power in England was to compel the American colonies to submit, and every other consid- eration was left out and forgotten as far as they were concerned, although they admitted the economic folly of their course. "The Solicitor General 2 defended the measure. He gave every allowance for, and paid all deference to, the interests of commerce and manufactures; but contended, that in the present case interests were concerned of yet greater consequences . " J It was determined that the American matter "was to be taken up in a political, not in a commercial light. That therefore, as there was little con- nection between the views of the house, and those of the merchants, it would be the highest absurdity, that a committee, whose thoughts were occupied by the first, should be at all broke in upon or dis- turbed by the ratter. "As to the petitioners, it was not doubt- ed but they were aggrieved; it might be granted, that all their allegations were well-founded, and that they laboured under great and singular distresses But these were circumstances that did not interfere with the motion; they are a part of the evils incident to mankind, which may be deplored but cannot be avoided. "It was allowed, that for the sake of tranquility, of our trade and manufactures, it were much to be wished, that lenient measures 1 Correspondence of Edmund Burke , vo 1 . 2 , p . 1 . 2 Alexander Wedderburn . 3 Parliamentary H isto ry of England , vo 1 . 1 8 , p.4. 4 Annual Register . 1775, p.50. 5 Ibid., p.75. . 27 could be successfully pursued,"^ but national pride and personal pride were in the saddle and reason was cast to the winds. In less than three months from the time v/hen the merchants of London were pleading their cause at the bar of the House of Com- mons, the first armed skirmishes were taking place at Lexington and Concord between the King's regiments and the American farmers. Peaceful methods of coercion had been abandoned. The differences between the English Parliament and the American people were to be settled by war. But even then, and for some months afterwards , many of those of the merchant ile and industrial cla.sses continued to cling to the hope that peace could be restored and with it their lost prosperity. Of course the outbreak of war brought no relax- ation of the non-intercourse policy, but rather brought stricter enf orcement . As late as October 11, 1775, six months after the begin- ning of hostilities, the merchants and traders of London submitted a petition to the King praying his Majesty "to cause hostilities to cease in your Majesty's colonies in America, and to adopt such mode of reconciling this unhappy controversy as may best promote the interest of commerce and the welfare of all your people." 2 This petition was signed by 1171 persons. Three days later another bearing 941 signatures was presented. Still later in the same month, a petition from the Lord Mayor, the Aldermen, and Commons of the City of London was presented. In this latter petition, fear was expressed for "the loss of the most valuable branch of our com- merce, on which the existence of an infinite number of our indus- 1 Ibid., p.67. 2 Ibid., p.2o7. — ii i — 20 trious nanuf acturers and mechanics entirely depends."^ To speculate over what might have been is an idle way to spend one's tine, but it requires little speculation or prophetic figt to see from the facts presented regarding the three non- importation agreements of the colonies that the third association would have been as successful as the preceeding two, or more so, but for the entrance of certain facts that must be considered. First, as has been pointed out in both of the preceeding cases, the oligarchical nature of the English Government at that time always retarded action desired by the commercial and industrial classes, and often, as in this case, entirely precluded such action. In the second place, this was the third time in a decade that the col- onies had used this kind of pressure to bring the mother country to their way of thinking. In the first two cases, important concess- ions had b en made in order to restore trade to its former channels . This too frequent use of it by the colonies had strengthened the party in Parliament which opposed conesssions to the colonies on the grounds that there was no such thing as satisfying them as they would not stop until they had gained complete independence anyhow. In the third place, the domineering, antogonistic policy followed by the British in the colonies precipitated war before the influ- ences named in the first and second points above could be neutral- ized by the effectualness of the boycott. If the beginning of the conflict could have been postponed until that point could have been reached, the third non-importation movement would have been as successful as the other two, for the English Parliament could not go on forever ignoring the commercial and economic needs of the 1 Parliamentary Hist o ry of Engla nd , vol . 1 8 , p . 098 . 29 people, especially when they themselves, as Burke put it, be.^an to "feel the effects in their purses or in their bellies. 1 Correspondence of Edmu n d Burke , vo 1 . 2 , p . 23 . 30 CHAPTER V. THE EMBARGO AND NON- INTERCOURSE ACTS. A cumulative series of grievances and indignities brought the attempts at economic coercion of England and France made by the Government of the United States under the leadership of Jefferson and Madison. A mighty struggle for supremacy was in process across the Atlantic with the forces of France under Napoleon and of Great Britain as chief participants. In the anxiety to achieve victory, both sides had been negligent of the rights of neutrals, especially of the rights of neutra,! carriers, and since the United States was the chief neutral carrier, causes for complaint against the belligerents were often found in this country. The offenses of the French were usually more flagrant, but since they were less frequent, the Non- Importation Act of 1806 was directed against the English nation alone. This was followed by the Embargo Act of December 2 1 , 1807, which was in its turn replaced by another Non- importation Act fourteen months later. The latter two acts were directed against France as well as against England. The effects of these acts on France were negligible, since trade between that country and the United States had not been developed to any extent. The average amount of exports sent from France to the United States during the years from 1795 to 1 S0 1 in- clusive amounted to $1,701,836 while the same figure for Great Eritain and Ireland reached $29,057,877, or more than seventeen times as much. The average amount of imports into France from the United States during this same period was $2,855,422 while for England the figure reached $16,044,403, or about 5.64 times as 31 that for France. 1 2 3 4 Thus the United States did not furnish much of a market for the products of France, and few American products, comparatively speaking, found their way to French markets, and the cutting off of commercial relations by the United States had little effect on the commercial and industrial life of France. In England, on the other hand, the effects of the embargo we re marked. "The American Government, in resorting to a general Embargo, took a measure which was certainly to a great degree efficient, " said James Stephen during the parliamentary debates at 2 that time. But American historians have tended to emphasize the disasterous effects of this policy on our own commerce and industry, and to forget that it had an effect equally disasterous on the commerce of Great Britain. "This embargo cuts us off from trade with at least one foreign country, viz., America itself; and this country happens to be the only one with which we had any trade re- maining, "said the author of an unsigned article in the Edinborough Review of that time. "The effects of this decisive step upon the commerce and industry of Great Britain was beyond all measure dis- asterous . The British exports to North America were then 15,000,000 pounds (sterling) -- worth as Mr. Brougham stated in the debate which ensued on the subject, all other foreign markets put together. It was the closing of this immense vent for our manu- factured produce which v/as the cause of the unparalled depression of our foreign trade during the year 1811."^ 1 Pitkin, Timothy: Statistical View o f t he U.S. . pps. 201-223. 2 Parliamentary Debate s. vol.lP, p.xcv. 3 Edinborough Review . vol.2l, p.1134. 4 Alison: Lives of Lord Cestlereagh and Sir Charles Stewart , vol . 1 , p .520 . 32 However, one must not judge from this that there was no depression at all prior to 1811. "There was great distress in 1807, and there were riots at Manchester and other places, in con- sequence of this distress," declared Stephen at another time in the House, * and Mr. S. Whitbread, apeaking in the House of Commons, March 3, 1809, said: "We predicted that our manufacturers would de- cline and our exports and imports be diminished^ -- and the result has verified the prediction as is but too obvious from the papers on the table. We predicted that our manufacturers would be destit- ute of employment and reduced to extreme distress -- and unhappily the prediction is true, as appears from the number of your starving manufacturers If you wish to ascertain the extent of the injury inflicted on this country by these Orders-^, I ca.ll upon you to reflect upon the condition of the extensive town of Manches- ter, where the poor rates have risen within the last year from 24,000 pounds (sterling) to 49,000 pounds, in consequence of the number of manufacturers thrown out of bread: where of the numerous cotton mills which were formerly employed, 32 are now idle and six only at work.^ Cast your eyes to Ireland and behold the state of its linen manufacture for the want of flax-seed. Whence can it be supplied? Not from America or from the Baltic. There is not, I understand, seed for a twentieth part of the land usually sown with flax in Ireland this year, and the consequence will and must necess- arily be, that in the course of the next year a vast multitude of 1 Par l iamentary Debates . vol.21, p . 1 134. 2 Because of severance of trade relations with the United States. 3 In England the continuance of the Orders in Council were pop- ularly blamed for the continuance of the Non- Importation Act. 4 Baring's figures on the Manchester cotton mills were: 9 in full employment, 31 on half-time, and 44 with no work at all. 33 persons will and must necessarily be thrown out of employment in that country . " ^ Prices were also on the upward grade, as is usually the case in time of war, and this added to the misery from unemploy- ment. "Sugar and coffee rose 100 per cent, in the continental markets, but bread and beef rose nearly as much in the British. Wheat was 105 s. a-quarter, meat Is. a-pound in England. Worse than this, the great diminution of the foreign trade deprived a great part of the working classes of the means of purchasing pro- visions at these extravagant rates. The exports of the empire, which in 1309, had risen to 45,000,000 pounds (sterling), sank in 1611 to 29,000 000 pounds, lower than they had been since the re- newal of the war. The consequence was, that distress in all the manuf acturing districts was universal and intense beyond precedent; and the unhappy operatives, ascribing their misery to the intro- duction of machinery, formed combinations in many places for its destruction . Alexander Baring, speaking in the House of Commons, said that the cause of all the suffering was to be found in "the defic- iency in our imports from America; for the raw material had become so scarce, and in consequence so high, that in many places it was not to be procured . Baring was referring especially to the cot- ton manufacturing industry, but this condition was not confined to that industry, but was rather universal as far as the British Isles 1 Parliamentary Debates . vol .12, p . 1 1 63 . 2 Alison: Lives of Lo rd Castler e agh and Sir Charle s Btewart , vol . 1 , p.5t9 . 3 Parliamentar y De ba tes , vol . 1 2 , p . 1 1 94 - 34 were concerned, except for the few industries that are always stim- ulated by war conditions and even some of those were languishing because of a scarcity of raw materials. "It is not the effect of the Orders in Council or the Continental System of the enemy which has caused the distress so severely felt in this country, but the interruption of our commercial intercourse with America, in con- sequence of the Non- Intercourse Act passed in that country," wrote Lord Castlereagh in a letter.^ This feeling was quite general among the more intelligent of the commercial and manufacturing classes . The announcement of the American G-overnment that the Em- bargo and Non- Intercourse Acts would be relaxed as far as either England or France were concerned when those countries had removed the restrictions on American commerce brought a large number of petitions to Parliament praying for the repeal of the Orders in Council or for other measures of relief . From Bolton came a petition saying "that the petitioners suffer great privations on account of the depressed state of the manufacturers, whereby the price of labour is r duced in the most unprecedented degree, and thousands of the petitioners threatened with the want of employ- ment; and that the depressed reduction of trade reduces thousands of the petitioners to the most extreme distress; and that many useful enterprising and ingenious manufacturers have been re- duced from affluence to complete poverty, the consequence of which is, that a number of the petitioners have been reduced to the ab- solute want of the necessaries of life for themselves and helpless 1 Alison: Live s of Lord Castlereagh and Sir Cha rles Stev/art , vol . 1 , p.525 • 35 offspring." 1 2 "Several subscriptions have been made by the friends of humanity, yet these are very inadequate, nor can effect- ual relief be given, as the distressed objects increase, unless the wisdom of the House devise some method to remove or alleviate the general calamity, which now threatens one common ruin to the great- er part of the inhabitants of that once happy country."^ A similar petition came from Oldham. A petition from Paisley and nearby towns set forth "that the petitioners, in con- sequence of the depressed condition of trade, have of late been subjected to difficulties unknown e.t any former period; and at pre- sent such is the low state of the Cotton Manufactures, that large numbers have been thrown out of employment, and the wages of those that are employed have in general, within the last ten months, been reduced two thirds, so that it requires great exertions for an in- dividual to procure the necessaries of life; and such is the gener- al distress, that of a population of about 30,000, upwards of 1,200 families, who formerly supported themselves by their own industry, are reduced to the necessity of receiving precarious and temporary assistance from their humane and more wealthy neighbors; and that the present calamity, though first felt by the manufacturers and operatives, has not been confined to them alone, but has extended to almost every rank and profession, involving in ruin many re- spectable individuals of large capital; bankruptcy has succeeded bankruptcy to such an alarming extent as nearly to destroy all confidence betwixt the manufacturer and merchant, and that the 1 Parliamentary Debates , vol.10, p. 692 . 2 Ibid., vol.20, p.342. 36 present depressed state of our m; nufacturs is chiefly owing to the exclusion of our commerce from the continent of Europe, and the stoppage of our trade with America; and praying the House to take into consideration the present alarming state of the coun- try, and to adopt such measures as may appear to them best calcul- ated to afford relief."^ Petitions in the same tenor came from Lanark, Ayr, and Renfrew. From Ilanchester came a petition "subscribed by more than forty thousand signatures, the majority/ - of whom were reduced to a state of extreme distress," and saying "that a revocation of the Orders in Council would pave the way to a removal of the Non- intercourse and Non-importation Acts lately passed by the Congress and Senate of the United Sta-tes of America, which have already add- ed, and will no doubt still further tend to add, to the distresses of the Petitioners, and would, in the opinion of the Petitioners, by opening a more extended mart for commerce, in a partial degree O be the means of restoring them to a more comfortable state. "“ The knitters of Leicester sent in a petition signed by 3 11,000 persons, and the merchants and manufacturers of Birmingham and Sheffield submitted a petition bearing 14,000 signatures.^ The potters of Straff ordshire and Yorkshire "humbly conceive that the Orders in Council issued in 1807, and continued in certain of their provisions in an Order of 1309, were intended to force com- mercial communications with the continent of Europe from the press- 1 Parliamentary D eb ates . vol . 19 . p.1017. 2 Ibid., vol. 20, p.342. 3 Ibid. , vol .22 , p . 1 4 Ibid., vol. 22, p.424. , 37 ure of its necessities, but instead of producing that effect, they are manifestly the cause of still further curtailing our trade, by depriving us of the market of the United States of America, the only one of importance which was left to us." 1 2 3 Other towns sub- mitting petitions were Shrewsbury, Kendal,- Dumferline, South Shields,^ Glasgow, 4 5 6 7 Sunderland,^ Blackburn, 0 and Worcester.? Also " 6,560 most respectable individuals of the town of Liverpool, in the space of only four days, had stepped forward to affix their signatures, for the purpose of praying the repeal of the Orders in Council as the cause of the commercial distress which affected not Q that place only, but the country in general." There were also, as was to be expected, a few counter- petitions, most of which were sponsered by the shipowners of Brit- ain, who, of course, did not wish to see a strong American merchant marine develop. A number of the signers of these latter petitions were patriotic individuals, who frankly put their desire to win the war against Napoleon ahead of any personal desires for commercial prosperity. These admitted with all candor that conditions in the country were anything but satisfactory, but thought that the task of winning the war should take precedence over everything else. However, the leaders of the party in Parliament which was 1 Ibid., vol.22, p.329. 2 Ibid., vol.22, p.329- 3 Ibid., vol.23, p.232. 4 Ibid., vol.23, p.247. 5 Ibid., vol.22, p.1057. 6 Ibid., vol.22, p.2l2. 7 Ibid., vol.23, p.351. 3 Ibid., vol.22, p.1053. 33 supporting the Orders in Council were not so frank, but insisted that all this hue and cry about financial and industrial depression was without reason or foundation; that the country was more pros- perous, in fact, than it usually had been in the past. They even went so far as to quote figures of exports and imports of present and past years to show what prosperity the country was enjoying. Whitbread, a leader of the opposition party in the House of Commons, said this "put him in mind of the correspondence which had taken place between a noble lord ( Castlereagh) and General Moore, as to the force commanded by the latter. The General observed, 'I had only such a number of men:' ' 0, ' said the noble lord, 'you had a great nany more; -- here I can prove it on paper.’ So, to the starving manufacturer, who exclaimed, 'I am unable to exist,' the House of Commons night exultingly say,-- 'Look to these accounts -- behold the flourishing state of our exports and imports.'" 1 Upon this same occasion, Alexander Baring said that "he really could not help feeling a good deal of surprise, when he heard the hon. and learned gentleman (Stephen) confidently talk of the prosperous state of the trade of this country, and assert that it was now more flourishing than previous to the Orders in Council. Would any man in the House who was in any way engaged in trade say this? Was there any nan so unconnected with trade as not to know how utterly unfounded this assertion was? It was really surpris- ing to him that there should be any man so blind to everything passing around him, so deaf to the language of ev ry part of the country, or so infatuated by the spirit of the system, as to 1 Ibid., vol.21, p.lloO 39 venture gravely to assert such a proposition. Could any man be ignorant of the universal distress of the manufacturing towns; of the petitions from Straf fordshire ; of the reduced state of that once most flourishing trading town, Liv rpool? He thought these distresses were so evident, as not to require any argument ; in that House to prove their existence."' Although the majority leaders themselves refused to admit the existence of these distressing conditions, the committee appointed to consider the petitions did "fully acknowledge, and most deeply lament the great distress of numbers of persons engaged in the cotton manufacture, in various trades connected with it,"^ etc., but could promise no relief to the petitioners. Finally, however, affairs within the kingdom came to such a pass that some measure of relief seemed imperative; so the Com- mercial Credit Bill was introduced. This aimed to make it possible for merchants and manufacturers to have their personal credit ex- panded by means of government backing, in order to enable them to weather the storm. In the debates on the subject, Lord Grenville announced that he had little use for the bill as it did not in any sense remove the cause of the trouble. Curwen, In the House of Commons, was even more outspoken, saying he "trusted the Committee would not limit its attention to this single measure of relief; but, at a proper and early opportunity, apply itself to an investigation of the original and radical cause . From the inquiries he had 1 Ibid., vol.2l , p.?36. 2 Ibid., vol.20, p.oC9. 3 Ibid., vol.20, p.oC9. =»■ 40 made in the great manufacturing districts of Lancashire, he knew, that the distresses and sufferings of that deserving body were by themselves attributed to the nature of our relations with America. The agricultural interest was now feeling the evil; for, from the distress of the manufacturer, no longer able to purchase the same food as formerly, the farmers could not obtain the same market for their produce He conjured the Chancellor of the Exchequer, therefore, whatever may be his own predilections, not to continue bigotted to a scheme of policy, which had produced and must con- tinue to produce such widespread distress and privations."' Lord Castlereagh declared that "no question more vital, both to the national security and the commercial interests of the country, ever came before Parliament. There can be no doubt that a case of grave distress to the manufacturing classes has been made out in the evidence, and there is reason to fear that if the North Amer- ican market is not speedily opened that suffering will be augment- ' 1 ! 2 ea . The effect of the embargo on the United States is well- known to students of American history. John Lambert gives an interesting description of the port of New York during the time when the embargo was being enforced: "The coffee-house slip, the wharfs e„nd quays along South-street, presented no longer the bustle and activity that had prevailed there five months before. The port, indeed, was full of shipping; but they were dismantled and laid up. Their decks were cleared, their hatches frstened down, and scarcely a sailor was to be found on board. Not a box, bale, 1 Ibid., vol.19, p.344. 2 Lives o f Lord Castlerean.Ii and Si r Charles Stevmrt . vol . 1 , p.325. 41 cask, barrel, or package, was to be seen upon the wharfs. Many of the counting-houses were shut up, or advertised to be let; and the few solitary merchants, clerks, porters, and labourers, that were to be seen, were walking about with their hands in their pockets. Instead of sixty or hundred carts that used to stand in the street for hire, scarcely a dozen appeared, and they were unemployed: a few coasting sloops, and schooners, which were clearing out for some of the ports in the United States, were all that remained of that immense business which was carried on a few months before. The coffee-house was almost empty: or, if there happened to be a few people in it, it was merely to pass away the time which hung heavy on their hands, or to enquire anxiously after news from Eu- rope, and from Washington; or perhaps to purchase a few' bills, that were selling at ten or twelve per cent, above par. In fact, everything presented a melancholy appearance The scene was so gloomy and forlorn, that had it been the month of September in- stead of April, I should verily have thought that a malignant fever was raging in the place; so desolate were the effects of the em- bargo, which in the short spare of five months had deprived the first commercial city in the States of all its life, bustle, and activity; caused above one hundred and twenty bankruptcies; and completely annihilated its foreign commerce."' With conditions such a.s these existing in every American port, is it surprising that there arose a strong opposition to the embargo from the very beginning, and that there was a vast amount of evasion? The embargo was an insane attempt to apply the eco n- 1 Lambert : Travels through Canada and the United Stakes of _ for th America , p.63. * 42 omic method of coercion, in that it could not fail to injure the state using it more then the states against whom it was directed. ' T ere non-intercourse with the offending powers would have been more difficult of strict enforcement, but it would have left im- portant markets open to American shipping and would have imposed enough restraints to cripple the offenders. The success of the Non-Intercourse Act, v/hich followed the repeal of the Embargo Act, has been clouded by the breaking out of the War of 1812, but it should be remembered that Parliament did actually repeal the offensive Orders in Council in so far as they applied to America before the news that the United States had declared war had reached England. If the war spirit in America could have been cooled down for another two or three months, there is plenty of reason for believing that with the repeal of the Orders in Council, war with England could have been avoided. ' ■ 43 CHAPTER VI. THE CHINESE BOYCOTT OF AMERICAN GOODS . "China now has the distinction of having organized the most extensive boycott in the annals of history," wrote W. A. P. Martin in the January (1906) number of Worlds Work, ^ concerning the boycott Y/hich the Chinese were carrying on against American pro- ducts at that tine. This movement was organized and carried on by the Merchant Guilds of that country in retaliation for the alleged unfair treatment which the students, merchants, and professional men of China were receiving at the hands of the immigration offic- ials of the United States. The movement was essentially a popular one although it had "the countenance and sympathy, open or secret, of all officials, high or low."^ The attitude of the Government is shown to some degree in their act annulling the contract of the Canton-Hankow railroad which was held by a. syndicate controlled by 3 J. P. Morgan & Company. The American authorities demanded that the Imperial Gov- ernment of China, issue an edict commanding the Chinese tradesmen to desist from their boycotting tactics, and this was done. Some time afterwards the Journal of Commerce was quoted as saying: "Cables received by American houses doing business in South China (say) that the boycott on American goods not only continues in Canton and some interior ports, but is assuming a more aggressive end dangerous character . Upon receiving such news, the Govern- 1 Martin, W.A.P.: Awake ni ng of Chi na. Worlds Work, 11:7124. 2 Ibid . , p .7 1 26 . 3 Review of Reviews, September, 1905, 32:281. 4 Literary Digest, November 11, 1905, 31:693. 1 * ■ 44 raent of the United States demanded that the Government of China take some drastic action to bring about enforcement, to which the Imperial Government sagely replied that it could not force its sub- jects to trade with or desist from trading with any nation. The effectualness of the boycott is something of a mooted question. "The movement in China to boycott American goods was so far effective that it ca.used the United States Government to take action with regard to the obnoxious immigrant regulations," was the way a brief article in The Economist (London) approached the subject. "Put as regards the actual volume of tra.de, the movement would appear to have been abortive, seeing that exports from the United States to China, in the ten months ending October last were more than twice as great as in any corresponding period in the history of American commerce, while for the month of October the total was larger than in any preceeding October except that of 1904. More than half of the American exports to China consist of cotton cloths, and the following table shows the quantity of these goods shipped and also the value of the United States total ship- ments to that market in the ten months ending October in the years named: Year Exports of Cotton Cloth (yards) Total Exports ( dollars ) 1905 1904 1903 1395 451 , 501,271 171 , 1 16,493 177 , 037,479 31 , 781 ,765 $ 50 , 104,767 $ 20 , 557 , 184 $ 13 , 311 ,480 $ 2 , 834,803 These figures point to a trade development of a very pronounced character, and they afford adequate reason for the desire of the 45 United States Government to cultivate friendly relations with China." 1 2 This was written in December when the boycott had been in force for nearly five months. However, even before it went into effect, Dun's Review forsaw the situation ahead and hs.d an explan- ation for the continued exports to China throughout 1905, saying that they were "evidently in anticipation of the intended boycott, and that a provision has been made in all the boycott agreements exempting merchandize already purchased. To the end of the pre- sent calendar year, therefore, our trade w r ill not suffer very mat- erially however stringent or effective the boycott may be. Should it be permitted to remain in force indef initely, however, there can be no question that not only our trade with China but our trade in many other parts of the Orient, including the Philippines and the Straits Settlements, will be seriously imperilled."" "It required little more than a threat on the part of China to boycott United States products to bring us to time," com- mented the Milwaukee Free Press when President Roosevelt issued his instructions to Secretary Metcalf to exercise less rigor in ex- ecuting the exclusion laws.^ Such would seem to be the facts in the case. May 10, 1905, the meeting was held at Shanghai which declared the boycott of American wrares to go into effect August 1, and less than seven weeks later the president hah issued the order mentioned above. A sort of terror seemed to take possession of the trading and oanuf acturing population of the United States at the mere suggestion of a boycott by China. The boycott was 1 Economist (London), December 16, 1$05, 43:2013 2 Dun's Review', July 29, 1905. 5 Literary Digest, July 8, 1905, 31:38. . 46 scheduled to begin August 1, hut several weeks before that time, in fact from the very beginning, agitation was on in the United States to take measures that would avert what they believed would be a catastrophe. Assistant Secretary of State Loomis informed the American Minister to China that the protests were "increasing and becoming more emphatic." 1 The officials of the Standard Oil Com- pany notified the State Department that the American petroleum in- dustry would be greatly and gravely affected by the movement in China. Those connected in any way with the raising of cotton or the manufacture of cotton cloth were also alarmed, as China was one of the important markets for that commodity. "The Chinese question formed the subject of the most hot- ly debated resolution adopted by the Trans-Mississippe Commercial Congress at Portland, Ore. The resolution referred to, after re- citing the existence of the boycott, petitioned the President, if deemed expedient, to reiterate his instructions for the proper treatment of the privileged classes in China, to ascertain the rea- son for the present boycott, and to appoint a commission to invest- igate and report to Congress, with recommendations for a comprehens- ive immigration law framed to remove all unreasonable restrictions'.'^ In the beginning, sentiment in the Far West had been almost unan- imously in favor of rigid enforcement of the lav/, but when their financial welfare was threatened, a change took place in their attitude of which the above instance is one example. "If news- 1 House Documents, vol . 1 , 59th Congress, p.212. 2 Ibid . , p .208 . 3 Brads treet ' s , August 26, 1905, 33:529- 47 paper editorials are taken as a sign," commented The Outlook, "pop- ular feeling seems strongly to be inclined towards sympathy with the Chinese demands . " ^ The fact that the first ten months of I905 had showed an actual increase of exports from this country failed to reassure many, as they realized with Dun's Review that the storm was yet to break. This view was justified when in the opening months of 1906 the effects began to be more obvious. "So far from the boycott of American goods being ended," declared The Outlook at this time, "it continues seriously to affect American trade in the Yangtse and Canton regions. Also the message of the President to Congress, December 5, 19°5, called attention to the seriousness of the quest- ion and demanded action that would relieve the situation."^ The statement of Special Agent Durrill stationed at Hong Kong probably had something to do with making the people of this country see the real danger in the dispute. He said: "The boycott against the pro- ducts of the United States must be given serious consideration. It has constituted a grave menace to the maintenance of a market which has taken years of earnest, conscientious work to build up, and according to business men here (Hong Kong) , who are thoroughly familiar with the situation in all its ramifications, its contin- uance will deal a blow to the American exporters from which it will require time to recover. This view of conditions now obtaining in the Chinese market may be regarded as extreme by Americans in- terested in the export trade with the Orient, but careful inquiries 1 Outlook, August 26, 1905, 80:992. 2 Outlook, January 20, 1906, 82:106. 3 House Documents, vol ■ 1 , No . 1 , 59th Congress, p.L. 43 indicate that it is conservative and unbiased, and that it can easily be verified by facts and figures." 1 2 3 4 5 A later report from Hong Kong said: "The decrease in American exports to China in 1906, which for general trade was one of the worst years almost in the commercial history of that Empire, occurred in cotton piece goods, copper, and mineral oil; the decrease in the three articles amount- ing to $30,586,946 . Consul Mason Mitchell reported for Chungking: "The year of 1905 was chronicled as the most disastrous since the port was opened to trade in 1893, and the year 1906, as far as the returns show, was fully as bad in trade as 1905*"^ Consul -General James W. Ragsdale at Tientsin reported a falling off of 13 per cent, in the importation of American cotton piece goods in 1906 at that port, and a 2 6 ner cent, decrease in oil importations from America.^ The Consul-G-eneral at Shanghai reported to the State Department through the American Minister to China that "American trade was suffering heavily and it was feared that it would take a long time to regain the ground lost during the boycott. Brief extracts from various issues of Dun's Review during 19 06 tell the same story: March 31 , "Only a moderate export demand is noted, chief- ly in sheetings for China." April 7, "Little export interest is shown, small orders 1 Monthly Consular and Trade Reports, February, 19C6, p.4- (In House Documents, vol.56, 59th Congress, 1st session.) 2 House Documents, vol.18, 59th Congress, 2nd. session, p.256. 3 Ibid., p.274. 4 Ibid. , p .291 • 5 House Documents, vol . 1 , 59th Congress, 1st session, p.216. 49 for China and Manila. barely preventing inactivity in this depart- ment . " May 2 6 , "Many Southern mills are nearing the end of their Chinese orders, which will add to the competition for bus- iness . " June 9, "The weakest feature of the cotton goods indus- try ft the present time is the utter absence of export demand. China is out of the market and a heavy accumulation of goods is noted at Shanghai, while the outlook for their absorption is far from promising." June 16, "Absence of export demand continues the least encouraging feature in the cotton goods industry." June 30, "Exports to South America and other miscellan- eous shipments only partially offset the utter lack of contracts from China, which is the least satisfactory feature." Under these conditions, the legislature of the State of Georgia awakened to a burning zeal for the promotion of Christian missions in China, and sent a petition to the President and to Congress urging them "to repeal or so modify what is known as 'the Chinese-exclusion act' as will not only restore friendly relations, but extend our commerce with that country."^ In an article in World Today, James J. Hill of the Great Northern Railroad is quoted as saying, "The Chinese boycott has been the greatest commercial disaster America has ever suffered:"^ and the Vice-President of the Pacific Mail Steamship Company regretfully announced that our trade with China was "practically gone" as a result of the boycott.^ 1 Congressional Record, vol.40, part 1, p.2t4. 2 World Today, March, 1906, 10:309* 3 Nation, February, 1906, 82:152. 50 One thing that served to cloud the issue and confuse many was the number of apparently conflicting reports that continuously came in. From Amoy, Consul 0. S. Anderson reported that "the im- ports of American kerosene show a great increase, in spite of the keenest competition, boycott, and other troubles."* Reporting from Hankow, Consul-G-eneral William Martin said that the imports of American kerosene had increased 5 “I per cent, in that port during the year 1906 as compared with the previous year . ^ Consul-G-eneral Rodgers of Hong Kong went to great pains to show that the "so-called boycott" had nothing to do with the falling off of the trade in cotton cloth in 1906 , but that it was "wholly due to the fact that the greater portion of the trade was in Manchuria, within the war zone, and that the demoralization and waste of the war left the people unable to purchase their usual quantities of the goods. Vice-Consul Lupton at Amoy reported that "while agitation in re- gard to the American boycott has been extreme, the effects on tre.de have been almost nil."^ A number of other consular officials re- ported without making any reference at all to the boycott, which would seem to indicate that it had had no effect worth mentioning in their region. The explanation of these apparent contradictions is that the boycott was not universal in the Chinese Empire, although it did take in the chief ports such as Shanghai , Tientsin, Hong Kong, and Hankow. The movement even spread to Siam and the Philippine Islands where the Chinese entered into agreements supporting the 1 House Documents, vol.1t5, 59th Congress, p.331. 2 House Documents, vol.18, 59th Congress, 2nd session, p.280. 3 Ibid., p.2o6. 4 House Documents, vol.56, 59th Congress, 1st session, p.24. 51 boycott. In China itself, the movement was confined, for the most part, to the port towns of the South. A number of other ports were left unaffected and American products poured into these ports in greater volume than ever. The boycott was a success in that it secured for the Chinese what they desired in the way of concessions from the Gov- ernment of the United States, but it was fear for loss of tra.de more than actual loss of trade that brought the Americans to time. More than a month before the boycott was scheduled to go into effect, President Roosevelt issued instructions to Secretary Met- cf If enjoining him to enforce the exclusion e.ct with less rigor, and before it had been in force six months, resolutions and bills were being introduced into both houses of Congress calling for modifications of the law, or for resolutions providing for invest- : 1 igation by experts in order that all the information on the subject' might be available for Congressmen to use in framing a new laW • With the rssumption of this new attitude on the part of the United ’ States, the boycott soon dwindled away in spite of the efforts of I ! certain agitators to keep it going. In addition to ameliorating the conditions of Chinese travelers and students in this country, other efforts were made at bringing about better understanding between the peoples of the two 1 countries. It was about this time that the part of the indemnity fund which had not been used by the United States in settling claims of citizens for damages received in the Boxer uprising was returned to the Chinese Government. This, coupled with the gen- erous gifts from the United States to the famine relief of China, 52 served to allay much of the bitterness of the Chinese and to bring fn end to the boycott. "The boycott will cease some time after the causes which produced it have ceased to operate, and not soon- er," srid Chester Holcomb in The Outlook, December 30, 1905, and the future disclosed that he was right. Thanks to the government officials and the merchant and industrial classes of America, con- ciliation was brought about before any real damage had been done to American commercial interests in China. This one ca.se considered alone would not make out a very strong case for economic pressure a s a means of bringing an offending nation to terms, but consider- ing it in conjunction with the preceding cases, and considering the disunified action of the Chinese nation, government and people, at this time, it cannot be considered a failure, especially since the object desired was attained. ■; ■ | 53 CHAPTER VII. THE TURKISH BOYCOTT OF AUSTRO -HUNGARIAN GOODS . 1 Two Turkish provinces, Bosnia and Herzegovina, were hand- ed over to the administration of Austria-Hungary in accordance with the terns of the Treaty of Berlin (1878), but the understanding was that their allegiance to the Sultan was in no wise impaired. No time was set for the termination of the Austro-Hungarian control, and there was a tacit understanding among the powers that when the final breakup of the Ottoman Empire took place Austria-Hungary should assume the sovereignty as well as the administration of these provinces. But the surprising rejuvenescence of the "sick man of Europe' at the time of the establishment of constitutional govern- ment under the auspices of the Young Turk Party in July, I 908 , alarmed the Government of Austria-Hungary, for it feared the rise of a new, strong Turkey which would declare its sovereignty and rights of administration over all of its territory. To forestall any such possibility, Austria resolved to annex the two provinces, and thus make them an integral part of her own empire. Accordingly, on the 7th of October, Emperor Francis Joseph announced to the world the formal annexation of Bosnia-Herzegovina to the Austro-Hungarian Empire. This, of course, brought vigorous protests from the Porte and from the Balkan countries bordering on Bosnia-Herzegovina, but the only response Austria-Hungary gave was to mobilize troops along her eastern frontier and in the annexed territory. Turkey did not wish to go to war. Neither did she w ish to submit to such an im- The basis of the general historical data of this chapter is, Ho 1 t and Chi 1 t on : The His t ory of Europ e from 1 862 to 1914 . — "r 1 . 54 position without £ struggle. The Government took no action, but popular feeling was aroused and a general boycott of everything Austrian was soon underway. The best idea of the sequence of events in connection with this boycott can be got from a series of extracts from the bi-weekly articles written for The Economist (London) by its spec- ial correspondent in Austria-Hungary. The first notice of the boycott recognizing it as a potent force appeared October 31, I 908 : "Austrian industry is suffering severely from the boycott of Austrian goods which is being organized in Servia and Turkey." After this, no more appeared in the column conducted by the Austrian special correspondent until the number of November 28 , when the following appeared under the date of November 24: "Financial and commercial circles in Austria are looking forward with the greatest anxiety to the development of the boycott- ing movement in the East. Fears are expressed that Austrian indus- try may lose one of its best markets. The ships of the Austrian Lloyd have been warned not to land in Turkish ports, and have been obliged to bring their passengers home again. Either the Turkish authorities have not the power to put a stop to this movement, or else they secretly encourage it. The travelling represent tives of the big Austrian exporting firms describe the state of affairs as quite desperate. The traveller of a Reichenberg cloth manu- facturer returned home a week ago instead of extending his travels to the middle of December as usual. He went to Egypt first, and announced his coming to the firm's customers in Constantinople ; but he was informed that no orders of any kind would be given, that he 55 had best not show himself in Turkey, where he would be badly re- ceived. Beyrut and Smyrna firms gave the same advice. The boy- cott of Austrian goods is now being carried out systematically. At first it seemed a thing of no consequence, and only happened in single instances in seaports. But now local committees have been formed in all Turkish cities and towns, who organize the boycott and see that it is everywhere carried out No one dares to oppose their orders, since everybody who purchases Austrian goods is accused of committing high treason In many instances good old customers in Turkey have sent their usual orders at the beginning of the winter, but afterwards cancelled them by letter or telegram, declaring they would not be able to sell the goods. In other cases the goods have been sent, but the ships were not allow- ed to land, nor were the firms who ordered them allowed to take them on shore. Several Lloyd steamers have already returned to Trieste with Austrian goods that no Turkish port would receive. The Austrian diplomatists were asked to interfere, but all they have succeeded in obtaining is that the mob is not allowed to attack the Llo 3 ' - d steamers or rob the Austrian merchants settled in Turkey. No one can be compelled to buy Austrian goods if he has a mind not to. The result of this state of things is that the shares of the Lloyd Company, which for years were quoted at over TOO crowns, now stand at the figure of 400. But besides the Lloyd Company the railways suffer from the boycott, since no goods are sent to Trieste from any part of the Empire." Two weeks later, in the issue of December 12, the Aus- trian correspondent made the following comments, along with some others on the boycott situation: ! a '' * .tv I 56 "The returns of Austria's exports to Turkey up to the month of October were published yesterday.”* The boycott of Aus- trian goods began immediately after the announcement of the annex- ation of Bosnia and Herzegovina. The returns do not show what was exported during October alone, but comprise the months of July, August, September, and October. Turkey n@^t have stopped import- ing Turkish caps (fezes) all at once, for the number exported dur- ing those four months in 1907 was 750,000, in 1908 only 234,000, which means, of course, that in October, 1903, none at 9,11 were ex- ported. The exports of sugar, timber for building, cotton text- iles, paper, rod iron, have all decreased considerably, but the true stfte of affairs will only be known when Austrian manufacturers cease to send goods to Turkey. The figures in the returns natur- ally only apply to the goods which were sent, and no notice is tak- en of the fi ct that by far the greater part of the goods could not be landed, and had to be taken back to Trieste." Under the date of January 5, 1909, this correspondent wrote : "The Turkish boycott against Austrian and Hungarian ships has not in the slightest degree abated, but is spreading day by day All Llojrd steamers tha,t arrive in Turkish ports are boycotted. No boats come to them to land the passengers, and when the captain lands them with his own boPts, they cannot obtain a conveyrnce to take them to their destination, or even a man to car- ry their luggage Manufacturers and merchants are seriously considering the question whether retaliation v. T ill not become 1 December 7 , 1908. necessary as the only means of making Turkey come to her senses. Turkey does not appear to fea.r retaliation, because its ex- ports to Austria-Hungary are much inferior to its imports from these countries.” Before another article from this correspondent's pen appeared, Austria's offer of financial compensation for Turkish rights in the two provinces had been tentatively a.ccepted, so in the issue of January 23 attention is given to the effect of this turn of events on affairs in the dual monarchy? "The Vienna Bourse, and, indeed, the Vienna and Budapest world of business have had a very lively week, in consequence of the almost unexpected acceptance of Austria-Hungary's offer to pay for the consent of Turkey to the annexation of Bosnia and Herzegov- i na - It was assumed from the very first that an immediate stop would be put to the boycott against Austrian and Hungarian goods in Turkey, and the prices of the shares which had suffered most from the boycott rose very high indeed. Turkish lottery oonds from IV5 to 134; Turkish Tobacco Monopoly Company from 314 to 332. 50; Fez Manufactory from 500 to 553; Lloyd Navigation Company from 400 to 423. The shares of the Orient Railways rose by 20 crowns five minutes after the news had been received." In the issue of February 6, the whole matter was summed up with a rough estimate of the loss Austria-Hungary had suffered: "The boycott has lasted four months, and has cost Aus- trian industry, Austrian railways, and Austrian navigation very nearly a milliard crowns. The financial sacrifice which Austria- Hungary made officially to pacify Turkey is very small when cornnar- 58 ed to the sacrifice which the boycott has extorted." This testimony of The Economist's special correspondent is confirmed by abundant witnesses whose reputations for veracity md accuracy go unquestioned. The foreign affairs department of the Fortnightly Review for January, 1 909, said: "The boycott has proved an instrument of formidable power. The damage to Austro-Hungarian interests has been immense. The commercial war has done more than anything else to shatter the cal- culations of Baron Aerenthal . This was a form of reprisals upon which the Ballplatz had not reckoned for a single moment. The boy- cott has been a popular movement. It has been enforced in every harbour. Even the threats of the Turkish authorities could not induce the porters to unload, the Austrian ships and to handle Aus- trian goods." The New International Year Book for I 909 summarized the events connected with the boycott as follows: "The principle on which Austria seemed at first to take her stand was that having taken nothing from Tirkey she could not admit Turkey's right to claim compensation. She urged that she was giving back more than enough in restoring Novi -Bazar . 1 But the Turkish boycott of Austrian goods, which prevailed in the clos- ing months of 1908, brought Austria to a more serious vi ew of the situftion, and she finally acceded to certain of the Turkish de- mands: namely, the increo.se of Turkish customs duties to fifteen per cent., the establishment of Turkish monopolies in ciga.rette paper and matches, the personal and religious freedom of the H 0 s- 1 A former Turkish sa.n .iak or small district now in Jugo-Slavia. 59 lemo in Bosnia-Herzegovina, the eventual suppression of the Aus- trim postoffices in Turkey, modifications of the capitulations and abrogation of certain privileges as to the Albanian Catholics. But to the demand of Turkey for an indemnity of 100,000,000 francs Austria at iirst refused to accede. Later, however, she offered 50 , 000,000 francs and finally struck a bargain at 2,500,000 pounds (Turkish) ( 62 , 500 ,000 francs ) . " 1 T.iis payment on the part of Austria~Hunga.ry to Turkey was in reality more significant than any other of the concessions, al- though it was disguised as "a grant in consideration of the former Turkish State properties in Bosnia and Herzegovina ." 2 3 Dr. E. J. Dillon writing on "Foreign Affairs" in the February ( I 909 ) number of The Contemporary Review said this on the subject: r'er more significant is the financial compensation offer- ed. To begin with, it represents a departure on the part of Baron Aenrenthal from the position he took up immediately after the annexation. He then declared that the matter concerned only Austria-Hungary end the incorporated provinces, and that he could not entertain the demand for money. "3 ing Age reiused to admit that the boycott ws s the only instrument that had brought about the concessions on the part of Austria, and declared that the compensation was "in reality a fine imposed upon a violator of treaties by the moral sense of Fu- rope , and that "the boycott of Austri s,n goods could never of it- 1 p .74 . 2 Annual Remister , 1 909 , p . 7 1 4 . 3 95 : 245, February, I 909 . 60 oelf have availed to wring from her." 1 2 Even though this be true, it does not imply any impairment of the argument for the broader aspects of economic coercion. In fact it is a confirmation of the plan set forth in the Covenant of the League of Nations according to which all intercourse, commercial and otherwise , between the nationals of the member states and those of the offending state would be cut off. Thus a most powerful economic pressure would be exerted, but it would be ridiculous to say that no moral pressure was being applied at the same time. In the case of the Turkish boycott, one nation was exerting economic pressure and moral press- ure,'* and several other nations were exercising moral pressure alone. Under those conditions, Austria-Hungary held out a little over three months. What would have been the result had all the nations which contented themselves with applying moral influence ranged themselves alongside of Turkey in declaring and enforcing a boycott of everything Austro-Hungarian? 1 February 6, 1909, 260:381. 2 Montenegro and Servia also declared boycotts, but they did not get into operation until negotiations for settlement with Turk- ey were well under way. However the fact that they had enter- ed the lists when they did may have had something to do with the readiness with which Austria acceded to the Turkish de- mands . 61 CHAPTER VIII. SOME OTHER CASES. In addition to the cases already cited, there are several others of the same kind which might be treated in the same manner, would time and space permit. However, in order to round out the study, this chapter will be devoted to mentioning a/nd giving a sum- mary of the events connected with these cases. One case was that of the Prussian Government against Great Britain in 1822. The Navigation Acts had developed into restrict- ions stating that "no sorts of wine other than Rhenish, no sorts of spices, grocery, tobacco, potashes, pitch, tar, salt, resin, timber, or olive oil should be imported from the Netherlands or Germany in sny ship whatsoever."^ This brought a reply from Prussia in the shape of a great increase of port dues on ships belonging to na.tions that did not admit the ships of Prussia on a. reciprocal basis. To the remons trainee of the British Government which followed at once, the Prussian Minis ter to England answered: "You have set us the ex- ample by your port and light charges, and your discriminating duties on Prussian ships, and we have not gone beyond the limits of that example. Hitherto we have confined the measure of our port and tonnage charges to ships only; but it is the intention of my Govern- ment next yea.r to immitate you still more closely, by imposing dis- criminating duties on the goods imported in your ships. Our object is a just protection to our own navigation, and so long as the measure of our protection does not exceed that which is afforded in your ports to Prussian ships, w r e cannot see with v;het reason you 1 Levi, Leone: History of British Commerce , part iii, Chapter II. 62 crn complain ." 1 The English Government saw the point and immed- iately negotiations were begun for a reciprocity treaty with Pruss- ia . Another striking case is that of the boycott carried on by the Chinese against Japanese products in I 908 . A Japanese steamer was siezed by Chinese officials on the charge that it was engaged in smuggling arms and ammunition to the Chinese revolution- ists. "There was no mistake about the cargo and apparently none about the intent, but the Japanese Government claimed that the steriner had been overhauled in Portuguese and not in Chinese waters. Tokyo forced Peking to apologize, to pay indemnity, to salute the Japanese flag when it was rehoisted over the Tatsu-Maru 2 , and to punish the Chinese customs officials who had captured the vessel."^ There was an outburst of indignation in China which expressed it- self in the form of a boycott of everything Japanese. Almost im- mediately the Government of Japan adopted a more conciliatory attitude; their consul at Canton who had refused to take any pro- pitiatory measures was recalled; Je.pan conceded certain points of dispute over the railways of China; and agreed that no Chinese revolutionaries should find refuge in Japan . 4 Following the award of the Shantung province to Ja.pan by the Conference of Versailles in 1919, another boycott was declared by the Chinese against Japanese wares . China, refused to enter in- 1 Ibid., p . 164 . 2 The name of the captured Japanese steamer. 3 Worlds Work, June, 1908 , p. 10305 4 The International Settlement , p. 89 . to any negotir tions whatsoever concerning the matter until the Japanese Government "should cease to occupy the concession of Tsing tao, the Kiaochow leased territory, and the Tsingtao-Tsinan railway and should make unconditional restoration of these concessions and properties to China." 1 Mr. Reginald V/heeler, who was an eye wit- ness of the boycott movement in Shanghai, gives the following account: "The boycott was taken up by the merchants and was rigidly enforced. The Japanese goods in their stores were taken out and burned; Japanese banknotes were refused; the great Chinese depart- ment stores in Shanghai pledged themselves not to order more Japan- ese goods. Chinese stevedores refused to work on Japanese boats; the ricksha coolies refused to haul Japanese passengers. It be- came dangerous for even a. foreigner to anpear on the streets wear- ing a straw hat made in Japan.” 2 By April of the next year (1920), "Japan faced new diff- iculties in respect to finances The stock market was swamped by securities. Tokio Exchange Stock dropped 210 points Contributing causes of the crash were the tightening of the money market, the loss of gold and the adverse balance of trade. The excess of imports during the first three months of 1920 was $ 1 30 ,000 , 000 , equal to nearly 50 per cent, of total exports. The Chinese boycott played an important part in the unfavorable trade balance . In the same month, appeared the following statement based 1 Current History, June, 1920, p.463. 2 Ibid., April, 1920, p.o2. 5 Ibid., June, 1920, p.4o3. 54 on statistics which appeared in "Hillard's Review" and in "The Herald of Asia": "The serious decline in the trade of the Japanese steamship companies is seen in the fall from 154 tons per trip in 1913 to an average of barely seventy-one tons per trip during the first ten months of 1 0 1 9 * Cotton yarn, paper, cotton cloth, um- brellas, canvas bags, matches showed a net decrease of 70 per cent.; prtent medicines, looking glasses, earthen ware, soap, hats and caps, fms, cotton hosiery, cotton tissues, satin, a decrease of 54 per cent.""* In May, 1920, the Japanese consul at Tientsin said the boycott had wrought "incalculable loss" to Japanese commerce-, and in October the' Mini chi (Japanese newspaper) said that the movement was "growing in vehemence, with the result that an increasing num- ber of embittered Japanese merchants are returning to Japan. Many of the men declared that unless some resolute steps are taken by the Japanese authorities, Japanese commercial interests would be seriously undermined." The loss sustained by the import trade for the month of August alone was declared to be over $17,000,000.^ In the middle of the following year, the Mimichi announc- ed that the Council Extraordinary meeting in Tokio had recognized the "necessity of withdrawing the Japanese garrison now stationed in the zone a.long the Shantung Railroad.. ..and that delay in carry- ing out this withdrawal had been due solely to the failure of China to provide an adequate policing force Besides the withdrawal, it was planned bo abandon Japanese rights over collieries and other T Ibid., April, 1920, p. 62 . 2 Ibid., Hay, 1920, p.253. 3 Ibid., December, 1920, 0 . 457 . 4 Ibid., p.458. 65 mines and salt fields, as well as other rights acquired under the Versailles Treaty.” 1 2 3 However it was not until the tine of the Washington Conference that the treaty bet ween the two powers defin- itely arranged the terms of the withdrawal. The 'Washington corres- pondent of the New York Tribune wrote: "Japan is as well pleased as China, for the anti- Japanese boycott throughout China has more than o offset any advantage which Shantung gave to Japan." Altruism had little to do with her surrender of her rights in Shantung; as the ■z Tokyo C humai Shogyo put it, she "ate hunble pie."^ There is little doubt but what the Chinese boycott was the big factor in bringing her to see things from China's point of view. Another recent case is that of the Int ernational Feder- ation of Trade Unions against the "White Terror" Government of Hungary. Bela Kun ' s communist government had been overthrown by the Whites under Admiral Horthy, and in the so-called reign of terror which followed, many atrocities were committed against the supporters of Kun according to reports which reached Western and Central Europe. The International Federation of Trade Unions appealed "to the workers of all countries to refuse, beginning June 20, 1920, to do any work which might directly or indirectly benefit the Hungary of the White Terror. Beginning June 20, 1920, no train shall cross the Hungarian frontier, no ship shall enter Hun- gary, and no letter or telegram shall enter or leave Hungary. All traffic should be stopped. Wo coal, no raw material, no food- 1 Ibid., August, 1921, p.887. 2 Literary Digest, February 11, 1922, p.12. 3 Ibid., May 20, I 922 , p.19. 66 stuffs, nothing shall enter the country." 1 2 3 According to the Journ a l de Geneve . a Swiss publication, the initiative was taken in this movement by the English, French, and Dutch Federations of Labor, while the Federations of Germany, Austria, Italy, Czecho- o Slovakia, and Switzerland fell in line.- "Postal and telegraphic communication between Hungary and Austria was almost immediately completely suspended. At Austrian railway terminals the workmen sidetracked all cars destined for Hungarian cities, and the sidings were soon filled with this inter- rupted traffic. Similar action was taken in Jugo-slavia and Po- land. The Czechs to some degree ignored the boycott because of unf riendliness for Austria The other countries, however, in- cluding even the labor unions of Great Britain, joined vigorously in the boycott, and within a few days it was apparent that Hungary was feeling its effects to a more serious extent than the Govern- ment admitted At the middle of July, when this article went to press, the boycott wa s still tightening its grip on Hungary, but the cessation of mail communication, coupled with the significance of the Horthy Government, prevented the receipt of fuller details on the subject. n> The boycott "was lifted on August 9, after the leaders had decided that its continuance would be useless. A proclamation issued by the Amsterdam labor executive to the workers of Austria enumerates the reasons why the embargo failed. 4 In the first 1 From the Appea.l of the International Federation of Trade Unions as published in The H at ion . July 3, 1920, p.27. 2 Living Age, August 14, 1920, p.394. 3 Current History, August, 1920, p.381. 4 Ibid., October, 1920, p.76. 67 place, the statement says, the co-operation of the workers of Aus- tria, Czecho-slovakia, Rumania and Jugo-slavia proved inadequate for lack. of substantial support from workers in countries without frontiers in common with Hungary. The success of the blockade was expected on the assumption that the workers of Western Europe would exert pressure, on their Governments in favor of intervention against the White Terror." In other words, they did not expect to bring the Hungarian Government to terms by economic pressure alone, but expected to influence their governments to intervene with their armies. They were not prepared to wait for the results of the economic boycott in Hungary and depend on that to get results, and when the Powers did not intervene as soon as they had hoped, the whole thing was dropped. "In the second place, the Magyar working class was so ex- hausted by suffering from the White Terror that it was unable to act with the workers of neighboring states." The revival of the Communist Revolution was another part of their program. In add- ition to stirring up armed external intervention, they expected to bring about the overthrow of Horthy's Government by internal forces. "In the third place, the failure of the blockade is due to the indirect support accorded to the terrorist regime by some of the Entente Governments desirous of using the armed forces of Hun- gary for their own ends." Instead of intervening, as the boycott- ers desired, the Governments were, recording to this, giving rid and comfort to "the enemy." To sum up, there are four main reasons why this instance 68 of economic coercion failed: 1 ) an organization making up a small pert of the population in general or even of the laboring population curried on the boycott, and this made it differ from the other in- stances cited in which all classes of people co-operated together; (2) the Federations themselves of some countries took part only he If -heart edly , especially those of Cz echo -Slovakia and Germany, and this weakened it at vital points; (3) according to their own statements given above, they were not using the boycott as a weapon but a s an advertising medium, and when it failed in the latter c pacity, they did not wait to see whether it would truly function a s a weapon or not; (4) the Governments were often, in fact usually, out of sympathy with the movement, and this, coupled with the fact that large numbers of laborers vrere out of the ranks of the Feder- ations and therefore not definitely co-operating, made failure al- mo s t in evi tabl e . 1 Nation, September 11, 1920, p.236. 69 CHAPTER IX. CONCLUSIONS. What conclusions ' can one draw after examining the fore- going crses? First, in no one of them can economic coercion be a total failure as a substitute for war, although there are some, such as the third non-inporta tion agreement of the colonies and the embargo and non-intercourse acts of 1306-1812, when other events have clouded the effects of the policy, or 7/hen the existence of war has a.cted as a neutralizing agent. In practically every one of •i these cases, the pressure has been exerted by one nation alone against another lone nation. If one nation, working alone, can force another to terms by the exertion of economic pressure, as was done in the cases given, how much sooner results would be secured if several nations cut off relations with the offending country as provided for in the plan of the League of Nations. It is generally admitted that such coercion would be irresis table , and that, after ?n experience or two, the mere threat of such pressure would be sufficient in most cases. One of the things shown in the historical section of this study is that it is not at all necessary to bring a nation to the point of starvation before it is ready to make some kind of terms. Because men will patiently and silently suffer business losses in time of war is no indication that they will do the same in time of commercial war. In fact, history shows that men complain very readily and vociferously under such circumstances. If a man's bus- iness is suffering because his country is engaged in war with 1 An exception is the case against Austria when Servia and Nonte- negro joined Turkey in boycotting the dual monarchy . mother nation, he thinks of his sons and of his neighbors' sons, who are out there "somewhere" in the fight, suffering as no busi- ness loss can possibly make him suffer, end he stifles his com- plaints. The snirit of self-sacrifice permeates the whole nation and he is ashamed to find fault about a financial loss. If, on the other hand, a man's business is suffering because his country is cut off from commercial relations with other nations as a punish- ment for some offense against international morality, he is not go- ing to bear his losses silently end charge them up to patriotism. The whole affair is reduced to a business basis, and he is looking ; rt it from the standpoint of dollars end sense. He will complain. He will protest. He will demand action on the part of his govern- ment that the grievance of the other nations may be removed, in order that his business may go on as before. He forgets the old ideas of "national honor", "national pride", and a "place in the sun" • He is more interested in crea ting a commercial empire than he is in building up a huge, inchoate political empire of question- able value, and his behavior is governed accordingly. > The use of economic coercion has been objected to by many on various grounds. Robert G-oldsmith complains that "it would injure non-combatants more than responsible aggressive gov- ernments . " 1 So does war. Economic pressure invariably accompan- ies war, and non-combatants usually suffer more from such coercion applied in time of war because of the reasons set forth in the paragraph above. In cas es where economic pressure a.lone is used ; to coerce an offending nation, it is not necessary to bring its ' 1 Goldsmith, Robert: A League to Enforce Peace , p.13o. ! 71 inhabitants to the point of starvation before the government is ready to make concessions. This is especially true of countries having a democratic form of government, but even the most desx)otic government cannot stand out long against the united will of an agi- tated people. Were it a case of helpless women and children being starved to death, economic pressure would be even more horrible than war, but, with the glamour of war and the arousing of pugnacity end hate absent, it is doubtful whether any nation would ever sub- mit to its government permitting it to arrive at such a state. The facts presented in the preceeding chapters bear out this idea. One of the most com ion objections raised is that it acts as a boomerang. It causes great inconveniences to the nation that applies it. In reply to this, Viscount Bryce has convincingly said: "Whatever that inconvenience might be, it would be less than the evils a war would cause, and it could not last long, because no excommunicated State could support for more than a few weeks or months the painful consequences of total isolation and would dread *| permanent injury to its commerce." > Another objection is that stated by J. A. Hobson as fol- low’s: "Though postal, railway and telegraphic intercourse could be cut off easily by agreements between Governments , private trading could not so easily be stopped. It is not found a simple matter to stop all trading between members of nations actually at war when national sentiment sides strongly with the legal prohibition. It might be much more difficult to prevent all commercial intercourse 1 Bryce, James: Intern' tionel Relations , vol.1, p.252. 72 for private gain when there was no special hostility between the two nations in question.""' This handicap was present in every one of the cases presented in the previous chapters of this study, yet r large degree of success attended the majority of them. There is no doubt but what a one hundred per cent, perfect application of economic pressure would get much quicker results, but it does not necessarily follow that it would take twice as long to get results with one only fifty per cent, efficient. The objection stated by Mr. Hobson cannot be considered seriously as an argument against the use of economic pressure, and probably he did not intend it as such . Samuel G-ompers fears that a League of Nations with such an effective tool "would almost certainly become the repressive .. 2 tool of the reactionary and privileged forces of the world. Here, undoubtedly, does lie a real danger, but even to that one may cynically reply that since it is advocated as a substitute for war, its taking such a turn would only make it more truly a genuine substitute. War has been used as such a tool. The terms of peace dictated by a conquering nation "are not in themselves con- formable to the sense of justice or the reasonable will of the parties concerned, but are a mere register of the preponderance of power when the conflict is brought to a close." ; Such a settle- ment merely leaves the seeds of future strife, whether it is en- forced by military or economic pressure, but that cannot be a.ccept- 1 Hobson, J. A.: Towards Internationa l 0- over nine nt . p-93- 2 Enforced Peace , p . 1 1 4 . 3 Hobson, J. A.: Democracy after the 7'ar , p." 7 - J 73 ed as an argument against economic coercion as a substitute for war. It merely points out that both can be misused. J. A. Hobson also points out the fact that the use of economic coercion involves the risk that the boycotted nation might retaliate with force of arms and precipitate war itself. ^ This is a possibility which cannot be ignored, but it cannot in any sense militate as an argument against the use of economic pressure in place of resorting to war. In the one case, war may arise as one of the results, but it is only a possibility and not a necess- ary consequence. In the other case, war is the only recognized means of chastising the recalcitrant nation, and therefore follows as a natural result in case diplomatic efforts break down in the attempt to make an adjustment. Militarism "stands as the surviving incarnation of pure physical force in a civilization the value and progress of which consist in the supersession of physical by intellectual and moral direction. The feet that it has harnessed to its chariot some of the finest activities of the human intellect and will cannot hide the truth that it stands for barbarism." This ides, is coming to be recognized by practical men more and more, and when the League to Enforce Peace advocated as part of their program "economic pressure through non-intercourse" , this plan was approved by the Chamber of Commerce of the United States, the National Association of Manufacturers , the National League of Commission Merchants, and the National Wholesale Dry C-oods Association, as well as by a. large 1 Hobs on , J . A . : T owards I ntern a tion al -ov eminent , p . 94 . 2 Hobs on , J . A . : Democracy after the War , p . 1 9 • - 74 number of state and. local Chambers of Commerce and other commercial 1 organizations in the United States and Canada. Although economic pressure has been shown to be success- ful when applied by one nation against one other nation, there can be little doubt but that the most satisfactory results can be ob- t' ined when some type of international co-operation reinforced by interne t ions 1 government is in existence. Whether the League of Nations fills this place satisfactorily or not, it would seem that even an unsatisfactory government is better than no government at all. As J. L. G-arvin, the English journalist, says: Interorgan- ization between governments is "unprecedented ; but if we want re- newed wars we have only to stick to precedent."' The outstanding obstacle to every effort to perfect a true league of nations is the jealous fashion in which the individ- ual states cling to every vestige of their own sovereignty, and there must be sole surrender of authority before there can be any such thing as an international government . "Society implies re- straint," said Theodore Marburg, former United States Minister to Belgium. "And a. society of nations is not exempt from the rule. The one license which it ha.s become perfectly clear the nations must surrender is the license to make war at will. ^ That sur- render has not yet been made, and probably will not be made until the League of Nations, or its successor if it ha.s one, has given a practical demons tre tion of the efficacy of economic means of co- 1 Lake Mohonk Conference, 19 16, p.215. 2 G-arvin, J. L.: The Economic Foundations of Peace , p.105* 3 Marburg, Theodore: Lea gu e of Nations , p.61. 75 ercion. "The right of the individual state to stand out against *t the progress of the world is open to serious question." As the Newark Advocate puts it, "There can't be any concert of nations p while each one of them wants to be a, soloist." To sun up the whole thing, the principle of the economic boycott as a means of coercing recalcitrant nations is sound, and when tried, has worked except when disturbing influences have pro- duced a state of mind a iong the citizenry of the boycotted nation which causes them to consider commercial prosperity secondary as compared with some other object pursued by the government . When ideas of national honor and national pride have been left out of the reckoning, the boycott has invariably been found to work satis- factorily. Since, under these conditions, economic pressure has been found so satisfactory as a substitute for war, it should be even more satisfactory if used as a means of backing the authority of a society of nations . When so used, it is probable that it would be almost impossible for a single nation to defy the injunct- ions of an international court or to ignore the moral sense of the civilized nations of the earth. One should remember that in the cases cited in the prev- ious chapters, the nations involved have invariably been of the highly civilized, commercial type. Were all nations of that type, armies end navies could probably be safely scrapped as soon as a real spirit of co-oper tion had been established among the nations, and machinery of interns tional government had been constructed to 1 Sayre, Francis Bowen: Experiments in International Administrat - ion . p.152. 2 Current Opinion, Way, 1922, p.5o3. J 76 direct it. However there are backward peoples who must remain under the tutelage of the more advanced nations, and for the pro- tection of ^oth classes some kind of an armed force must be main- tained for the present at least. As strong as the case is for economic coercion as a substitute for war, it would be height of folly to depend on it alone at this stage of the world's develop- ment . Neither the presence nor the absence of arms works as an absolute insurance of peace. Real peace is based upon deeper foundations and will not come until there is a genuine spirit of peace in the hearts of men. You can disarm a man, but if he is provoked he will fight anyhow with whatever comes to hand, provid- ing his opponent is no better armed than himself. However there c?n be little doubt but that a reasonable limitation of armaments would go a long way towards the pro lotion of peace. In the countries of Western Europe, the sale of firearms is regulated and restricted by law, while in the United States anyone may buy a gun. The results of these two policies are reflected in the number of homocides in each country. Where anyone may own a gun without its being any other person's affair, there is pretty ant to be some shooting occasionally. It should not be left to each nation to decide whether it will arm or not, or to what extent it shall arm. That is a question that should be settled by the society of nations. There are dozens of such questions which are related to the general subject of "world peace and organization, but not direct- ly to the subject of economic coercion as a substitute for war. However, he who would work for the cause of substituting the boy- 77 cott for warfare must at the same time work for these other means of promoting world unity and harmony, or there can be no sure and permanent result. To be sure "the boycott is not a lovely weapon", neither does it bring real peace which can never exist, in an im- perfect society, but in that it is less destructive of life and property than is war, it should be commended and advocated as a means of coercing offending nations until the genuine peace is ushered in, whenever that is. 1 Goldsmith, Robert: A League to Enforce Pe: ce , p.135. ' m3 BIBLIOGRAPHY . Angell , Norman: The Great Illusion . 2nd eel . , Putnam: 1 9 13. Angell , Norman: The Worlds Highway . Doran: 19 15. Baseless, John: The Economic Cau ses of ^odern "Tars . Moffat : 192 1 . Bigelow, John: v , r o rid Perce . Mitchell Kennerley: 1 9 16 . Bourne, Randolph S., ed . : Towards an Endur ing P eace . Auer lean Association for International Conciliation . Brailsford, H. N.: A Leagu e of Nations . 2nd ed . , Macmillan : 1917 . Bryce, James: International Relations . 2 vols . , Macmillan: 1 922 . Buxton, Charles, ed.: T owa r d s a La sting Settle n e nt . Macmillan: 1 9 16 . Crosby, Oscar T.: International War . Macmillan: 1 9 1 9 • Duggans, Stephen Pierce, ed . : The Lea pue of Nations . Atlantic Monthly Pres s : 1 9 1 9 • Erzberger, M. : The League of Nations , translated by Bernard "Mall, Holt: 1919 • Garvin, J. L.: The Economic Foundations o f Peace . ' ,T acmillan: 19 19 • Goldsmith, Robert: A League to Enfor c e Peace , Macmillan: 19 17 . Hobson, J. A.: Democracy after the far , Macmillan. f Hobson, J. A.: Towards Intern at ional Government . Macmillan: 1 9 1 5 • 79 Hogan, Albert E . : Pacific Blockade . Oxford: 1903. Huet, Bishop: Histoire du Commerce . Paris: 1717. Jordan, David Sts.rr: Unseen Empire . American Unitarian Ass'n:l9l2. Ki lien, Horace Meyer: The Structure o f Lasting; Peace . Jones, Boston: 1918. Marburg, Theodore: A League of Nations . Macmillan : 1 9 17 . Minor, Raleigh C.: A Republic of nations . New York:l9l8. Peish, G-eorge: A Permanen t Lea gue of Na tions . London: 1 918 . Percy, Eustace: The Responsibilities of the League . London. Sayre, Francis Bowes: Experi m ents in International Ad ministration . Harpers : 1 9 1 9 • Schvan, August: F oundation s o f Pernanent Peace , London . Sts llybrass , W. T. S.: A Society of Nations , New York : 1 9 1 9 • Problems of the Interna tional Settlement . (A series of studies by scholars and experts of various nations , with an intro- duction written by G- . Lowes Dickinson.) Covenant of the L e agu e of Nations . Enforced Peace , (Proceedings of the League to Enforce Peace, I 9 I 6 .) Proceedings of the Lake Uohonk Conferences . 30 BIBLIOGRAPHY FOR CHAPTERS II, III, IV, and V. Yorks of General Reference : Br tier oft, G- . : Hist ory of th e United States , 10 vols . , last revision, New York : 1 884 . Br s s e 1 1 , J ohn So oncer: A Short Hist ory o f the Un ited 5 totes , Macmillan : 1919- Bogart, Era e s t Lud low: 2£c on on ic History of the United States , 3rd ed . , Longmans : 1 92 1 . Chsnning, Edward: Th e Jeff er s on ion S y s t em . in Hart's American Nation series, Harpers : 1 906 . Howard, George Elliot: Prelioinaries of the Revolution , in Hart's American Nation series, Harpers : 1 905 • YcYaster, John Bach: History of the Peopl e of the United States . Svols . , Appleton : I 9 IO . Pr imary Sources : An n ual Reg i ster . Almon, John, ed . : Interesting Letters . 2 vols., London: 1767. Burke, Edmund: Vr i t ing s and Spe eche s . Beaconsfield edition, 12 vols. Boston : 1 90 1 . Fitzwilliam end Bourke, ed.: Correspondence of Edmund Burke, 4 vols. London : 1844 . 31 Alison, Sir Archibald: Lives of Lo r d CaBtlereagh end Sir Charles Stewa rt . (contains much of their correspondence) , 3 vols. Blackwood, London: 1861 . Donne , W. Bodham, ed.: Correspondence of Georye III with Lord North . 2 vols., London : 1 367 . V/; lpole, Horace: "~ono Irs of Gcorne ITT . Barkers ed., 4 vols., London : 1 894 . Anson, Sir illiam, ed.: Autobiography of the D u ke of Grafton . London : 1 898 . Suith, "illia.m James, ed • : Grenville Papers . 4 vols., London:1853. Albemarle, Bari of: ' T enoirs of the ~ r ar; uis of Rockingham . 2 vols., Loudon : 1852. Ha ns rd , T . C . : Parlia isntary Hi stor y of By; land , London : 1813. Hansard, T. C.: Pa r 1 i am ent ary D ebs. t e s . London:1813- Robertson, C. Grant, ed . : Select Statutes Cases and Documents . London : 1913- Prime Second' ry Sources: Bissett, Robert: History of the Reign of George III . 6 vols., London : 1 820 . Winterbotham, W.: View of the American United States , 4 vols., London: 1795 • Lor d North's Adminis t ration , London : 1732. BIBLIOGRAPHY FOR CHAPTER VI. A nnurl Register , 1 905 - I906 . Brrdstreet ' s . I905-I906. Dun's Review . 1905-1906. The Eco no mist (London) , 1905-1906. Lit e r: r v Pi ~ e s t . 1905- 1906. N r t Ion (New York) , 1905 - 1906 . Out I o oh (New York), 1905-1906. Review of Reviews . 1905-1906. ■To rid Tod- y . I 9 O 6 . Y orlds York . 1 905- 1906. Congressional Record , vo 1 . 40 . Ho use Documents . 59th Congress. Honthly Consuls r and Trr.de Reports . I 905 -I 906 . 83 BIBLIOGRAPHY FOR CHAPTER VII . A n nit' 1 Re "is ter . I908-I9C9. Contempor: rv Review . I9O8-I9O9. Economist . (London) I908-I909. Portal "An tlv Review . 1 908- 1 909 . J ournal des ^cononistes . I908-I909. Living Ame . 1903 - 1909 . New Intern.- tionel Yet r -qqV , 1 9 0 9 . R^vue -Aon.0 nioue Int ernetionr 1 e , 1 908 - 1 909 . 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