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UNIVERSITY
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64th Congress \ cT?M\rrT;^ I Documknt

INGRESS \

essioii J

SENATE

1st Session J >. .n.vn. -^ No. 438

INTERNATIONAL HIGH COMMISSION

AN ADDRESS

DELIVERED

AT THE CONFERENCE OF THE INTERNATIONAL

HIGH COMMISSION AT BUENOS AIRES,

ARGENTINA, ON APRIL 4, 1916

HON. W. G. McADOO

r^ECRETARY OF THE TREASURY

AND CHAIRMAN OF THE UNITED STATES SECTION OF

THE INTERNATIONAL HIGH COMMISSION

SOUTHERN BRANCH,

UNIVERSITY OF CALIFORNIA

LIIJRARY,

cos AtS^atES. CALIF.

PRESENTED BY MR. FLETCHER

May 9, 1916.^0rcicrcd to be printed

WASHINGTON

GOVERNMENT PRINTING OFFICE

1916

INTERNATIONAL HIGH COMMISSION.

ADDRESS BY HON. W. G. McADOO.

Secretary of the Treasury and Chairman of the United States Section of the International High

Commission.

Mr. President, Excellencies, and Gentlemen of the Inter-
national High Commission : It is with intcnso satisfaction and pleas-
ure that the members of the United States section of the Interna-
tional High Commission find themselves in this beautiful and hos-
pitable city, the capital of the noble Ivepublic of Argentina, to join
their colleagues of the International High Commission in a discus-
sion of the vital problems that have brought us together. We aro
fortunate both in the time and the place of this meeting. In the
time, because the necessity for the measures we aro trying to secure
was never more urgent; and in the place, because the progressive
and stimulating ideals of the great people of the Argentine have
created a favorable atmosphere in which the objects of the com-
mission's labors will be sympathetically nurtured and developed.

the international high commission.

What is the reason for the International High Commission ? It is
the necessity for a continuing agency of a coordinating and directive
character to accomplish, through the action of the several American
States, the important reforms which, for the past twenty-five years, suc-
cessive Pan American conferences have vainly recommended, and to
bring about unity of action concerning numerous ciuestions which have
been developed by the progress of the world and emphasized by the
European war.

PAxV AMERICAN CONFERENCES.

The first Pan American Conference was held in Washington in
1889 and 1890; the second in Mexico City in 1902; the third in
Rio de Janeiro in 1906; the fourth in Buenos Aires in 1910; and
recently the Pan American E^inancial Conference in Washington in
1915. Upon reading the proceedings of these great conferences, all
brilliantly intellectual and interesting, one is struck with the immense
educationar value of their w^ork and the soundness of their conclu-
sions and recommendations. Many of the most important subjects
on the program of the present International High Commission were
clarified and simplified by these conferences to such an extent that
the labors of this commission will be greatly lessened. Our prede-
cessors discussed arbitration of boundary disputes; the general doc-
trine of the gold standard; the necessity for uniformity of customs
regulations and classifications of merchandise; uniformity of laws
respecting bills of exchange; trade-marks, copyrights, and patents;
banking facilities; improved ocean transportation facilities ; the
completion of an intercontinental railway connecting the Northern
and vSouthern Continents. vSomo of the new cpu^stions m.c, are to
consider are those relating to ])ills of lading and warehouse rec(M|»ts;
arbitration of commercial disputes; stal)ilizati(>n of international
exchange; exploitation of petroleum and mineral coiiibustibles;
improved cable facilities, reduced cable rates, and wireless 1oleg;aphy;
the need for unifying protective legislation in behalf of labor and

>x ^ 451.647

4 INTERNATIONAL HIGH COMMISSION.

laboring classes. So that vrc arc not entering altogether upon orig-
inal work in the discussions that are before us.

In spite of the higlily educational work of these conferences, prac-
tical results have been small. After twenty-live years we have sub-
stantially the same problems; they are still unsolved; they remain a
challenge to the constructive intelligence and enterprise of all the
people of the American States.

Wluxt has been the chief reason for this failure? The answer
seems clear. Not one of the conferences perfected an active organ-
ization under a central direction to continue the work in the intervals
and light unremittinglv for the removal of the difficulties which have
stood in the way of tliat wholesome and extensive development of
inter-American relations, commercial, social, and political, fore-
ordained as the destiny of the American Republics.

Resolutions of ])odies of able and brilliant men are inherently
effective only when they arouse those tidal waves of human interest
and enthusiasm which, by their very momentum, carry the issues to
success. It is seldom that such things occur. History records few
instances of this sort, but it records many instances of achievement
through persistent and intelligently organized effort.

THE FUTUEE OF THE AMERICAS.

The outbreak of the European war accentuated many of our
problems and brought clearly home to the American Republics the
danger of complete dependence upon the great European States for
their economic develo]:)ment and commercial security. All of them,
including the United states, faced at the beginning of the war possi-
bilities of appalling disaster. That experience clearly shows the
imperative necessity for closer relations between the American States
themselves and a more enduring organization of their own life in
order that they may work out their destinies, freed as far as possible
from the dangers which constantly menace their economic develop-
ment througli Euro))ean complications. It was essential in these
circumstances that the American nations should take measures for
their own protection; that they should reconstruct, as far as practi-
cable, their commercial and financial ix'lationships for the security of
their own interests and the welfare of their people. It was not from
any desire to take advantage of the misfortunes of the great nations of
Europe witli whicli the ties of friendship and commercial intercourse
have been so strongly developed. These ties must continue, not only
because we desire it but because we wish to serve Europe while we serve
om-selves. To do this we nuist nuike ourselves so strong that when
the smoke of battle has cleared and peace is restored to those stricken
lands we nuiy aid them us they have aided us in our time of need.

Wbih' thes*' are our j)urj)oses, we should not be bhnd to the
fact that e((>n(»mic ciianges of a revolutionary character must follow
the colossal coullict now in |)rogress and force readjustments of
inU'mationiil relatit)nships throughout the entire world. When
Ibis time comes the American nations nuist not be unprepared; they
must begin now tosbajx' their own future: they must talve measures
not only to >^ec\nT. their own interests but to put themselves in
position to relieve the heavily l)ur<leiied nations of Euro|)e of many
dt-m.-iiids they have heretofore inade upon them. It stands to
reason that the destruetion of capital and property and life during
this great war will leave the contending nations prostrated for many

INTERNATIONAL niGH COMMISSION. 5

years. During the time of their recuperation they will be unable
to play the important part in the economic development of the
American States which tliey have played in the past. The noblest
concepts of duty and friendship dictate that we should help them
when the time comes to bind up their wounds and repair their losses.
The attempt to organize the resources of the American States ig
conceived, therefore, in no selfish or unfriendly spirit. It is inspired
by the highest motives of good will; it proceeds from a noble purpose
to marshal their resources and make them in the highest degree
available for the best service of manldud throughout the world.

now TO ACHIEVE PRACTICAL RESULTS.

It was in view of these weighty considerations and the necessity for
early and positive action that the Pan American Financial Conference
was called to convene in Washington in May, 1915. It was the firm
resolve of those who directed that conference that a permanent organ-
ization should be created and charged with the duty of carrying into
effect its conclusions and recommendations. This International High
Commission, appointed by each of the American States, is the machin-
ery devised by that conference for this purpose. The financial confer-
ence reaffirmed the necessity for action upon the various subjects which
this commission is here to discuss, but left it to this commission to suggest
the necessary laws and urge their enactment by the interested States.

The work of the International High Commission will ])e the connect-
ing link between the successive Pan American Financial Conferences
which, for my part, I earnestly IwpQ may become a part of tlie per-
manent poUcy of the American States. If such a linancial confer-
ence shall be held every two years, with the International Hifjjh Com-
mission as the intermediate worlcing body to carrv into effect the
conclusions of these conferences, we will no longer live in the realm
of theories, but vnll make practical results of every conference certam.
The work of these financial conferences and of their adjunct, the
International High Commission, is not of a diplomatic character.
It does not, therefore, involve any conflict with the diplomatic organi-
zation of the different States. Its problems are not political; they
are distinctively financial and commercial, and these are not primarily
the subjects of diplomacy. It follows as an inevitable corollary that
there is no conflict between the Pan American Union and the Pan
American Financial Conference and the International High Commis-
sion. I am sure that I express the views of each and all of you when
I say that the Pan American Union is realizing the high purpose for
which it was created in the most thorougli and satisfactory manner.

The importance of its contribution to international relations and
to the service of interests of the most diversilied types can not bo
exaggerated. This useful and splendid union is l)ut in the infancy
of its career, and I am sure that its work, under the wise guidance
of the diplomatic representatives of the Pan American States, will
continue to serve in the highest degree the best interests of the
American States in the field in which it labors.

PERMANENT ORGANIZATION OF THE INTrOKXATIONAL HIGH COMMISSION.

The United States Section of tho Intornationai High Commission
has been established by act of the Congress and th? necessary funds
have been appropriated to enable it to maintain its oi-ganization and

^ cr .^ /^ ^ K*^

6 IXTERXATIONAL HIGH COMMISSION.

do tho work for which it was created. Presumably each country
represented lierc has taken simihxr action with respect to its own
commission.

How should the commission itself organize most effectively ? If I
may be permitted to suggest, I would say that each section should
have a permanent chairman and secretary, with headquarters in
some convenient city, preferably the capital of its own country.
These various sections should be coordinated and directed through a
central organization, consisting of a president, a vice j^resident, and
a secretary general of the International High Commission itself,
whose headcpiarters should be in the capital of the country of which
such president, vice president, and secretary general are citizens.
This central organization should l)c charged with the general direc-
tion of tlie work and keep in constant touch with each section of the
International High Commission. By this kind of cooperative effort
we should endeavor to secure from the Governments concerned ap-
proval of the measures which may be agreed upon and recommended
at the present session of the International High Commission.

ELIMINATE BARRIERS TO TRADE AND COMMERCE.

In the light of past experience and present necessity surely such
reforms as are j^ossible ought to be accomplished now, if they can be
accomplished at all. They are so manifestly in the interest and to
the advantage of each one of the American States that a determined
effort should be made to secure prompt and conclusive action. Why
should we, from indifl'erence or nep;lect, continue laws, regulations,
or practices wliich operate to the cletriment of our respective coun-
tries? Wliy should we maintain barriers in the way of proper
development of our trade and commerce when, by a mere stroke of
the pen, so to speak, we can destroy them? Why should we dimm-
ish, if we do not actually prevent, the prosperity of millions of our
fcUow human beings in the various nations of the Americas because
we do not permit that fair play of economic forces which, if released,
would promote the prosperity of all ?

These objects can not be attained in short order. Their very mag-
nitude and complexit}^ involve patience, persistence, zeal, and deter-
mination. What we seek is not impossible, as some pessimists insist.
We have the power to make the seemingly impossible possible, if we
know what we want and are resolved to achieve it. Let us, therefore,
gentlemen, devote ourselves with all of the energy, intelligence, and
enthusiasm we can command to the benevolent tasks before us. Let
us proceed with the unaltera])le determination to translate these con-
clusions into the law of our respective States. Let it not be said that
wc have failed, as our predecessors have failed, to secure the remedies
after we liave ascertained what the remedies ought to be. W> have a
great and inspiring opportunity to render a service of incalculable
benefit to all of tlie nations of the Western Hemisphere — an oppor-
tunity tlnU ai)p('als to the imagination, tlnills the blood, and enobles
the thought. Let us determine our program and go forward with the
inflexible coura*:;!' and high ])ur|)ose of a San Alartin, a Bolivar, an
Artigas. an O'liijjgins, a Washington, and success can not escape us.

Laws alone will not. (»f course, create conmierce or })ring i)ros])erity,
althou;ih laws alone frcfiuently destroy commerce and prevent pros-
perity; but benelifcnt laws will encourage commerce and contribute
to pro-pcritv by crf-ating the conditions und(M- which the individual

INTERNATIONAL HIGH COMMISSION. 7

may work with security of lifo and property and en<:jago in iiiferna'
tional trade ^yithout needless impediments. This bein^ done, indi-
vidual initiative and enterprise must always be relied upon as Iho
chief factor to do the rest.

THE FOUNDATIONS OK PROSPERITY.

Trade between the peoples of the different nations of the earth
rests upon the fundamentals of mutual confidence, p;ood will, and
respect. Nations, like individuals, find in the ties of friendshij) (ho
best guaranty of peaceful and profitable intercourse. llaj)pily the
fundamental of friendship already exists between the American
States, and we owe it to ourselves to reinforce that friendship with
laws so harmonious that the citizens of our respective countries may
have the fairest and freest opportunity to cultivate the most intimate
relations with each other.

When this is done North American capital in abundance will
seek opportunity to assist in the development of your wonderful re-
sources. I imagine that the assistance of North American capital in
your development will not be regarded as harmful to your interests.
On the contrary, will it not be a helpful and conserving influence,
beneficial alike to Latin America and to European investors in
Latin America, if your development shall not be arrested or re-
tarded for want of adequate capital? It is because we wish to use
the power and resources of our country to help our neighbors, and
because by helping them to strengthen themselves wo steadily
approach the realization of that ideal of American unity whiclr
has been for generations the dream of statesmen of both conti-
nents, that we are striving to do what our President so nobly ex-
pressed in his speech to the Pan American Financial Conference
m Washington, May, 1915, when he said, "We are not trying to mako
use of each other, but we arc trying to be of use to one another."
Tills is the spirit of our national policy; this is the very essence of
international morality — the Golden Rule of international intercourse.

TRANSPORTATION.

The problem of ocean transportation to which the Argentine
Minister of Finance has referred is, beyond doubt, of paramount
importance. For many years the American nations have blindly
ignored their economic security, if not their physical safety, by
depending almost entirely upon foreign ships for the transportation
of their deep-sea commerce. Now, when a great war involves the
leading maritime nations upon whose flags they relied, they find
themselves without the essential means of protecting their own
interests. We must correct this situation. Tlio American nations
must quickly find the way of creating a merchant marine of ample
proportions to secure forever their physical and economic safety.
The completion of the missing links of the great intercontinental
railway is also of supreme importance and should be considered an
indispensable feature of inter-American policy.

THE UNITED STATES AND LATIX AMERICA.

It is a significant and felicitous fact that the essential fundamental
of friendship and mutual respect has always existed between the
United States and the Latin American Republics. With the exccp-

8 INTERNATIONAL HIGH COMMISSION.

tion of the War with Mexico in 1S47, the great Repiibhc of the North
has been at peace with every Central and South American State from
the beginning of their existence to the present time.

The United States has consistently and unceasingly manifested
(k^ep interest in the weliare of the Latin American Republics, This
found its first expression in the Monroe doctrine, enunciated by one of
our great Presidents not only for the protection of the United States,
but for the jjreservation of the strugglmg Republics of the Western
Hemisphere in the days of their infancy.

More recentl}' the Goveniment of the United States has given fresh
and convincing evidence of its friendly attitude toward and its high
appreciation of the Latin American States. In the unfortunate
complications in Mexico we have accepted the friendly advice and
assistance of the Republics of South America. It was the ambas-
sadors of Argentina, Brazil, and Chile and the ministers of Bolivia,
Uruguay, and Guatemala who, in response to the request of our
Government, contributed so patrioticalh", unselfishly, and nobly to
the effort to solve the Mexican problem with due regard to the rights
of the nations and the interests of the people of suffering Mexico.

These notable events have given new" point and importance to
uiter-American relations. They have served to make more convinc-
ing and clear the attitude of the United States toward all the nations
of the Westeni Hemis])here. They have reaffirmed those noble sen-
timents of friendship expressed by our great President in his speech
at Mobile in 1913, and have given new emphasis to his statement on
that occasion that the United States ''will never again seek one
additional foot of territory by conquest." To this added force has
been given by the recent declarations of our illustrious President and
our distinguished Secretary of State in favor of mutual guarantees of
the territorial integrity and political independence under republican
forms of government of every nation of the American Continent.

With such guarantees we do not have to live in fear of each other;
we do not have to suspect each other; wo do not need to arm against
each other, because so long as there is assurance against loss of ter-
ritory or independence by any nation on this continent we can work out
our desthiies in peace, undisturbed by internal fear or external aggres-
sion. Contrast this with the state of affairs in unhappy Europe, where
race oppressions, race hatreds, national vrrongs, extentUng through the
centuries, have created the disastrous conditions of mutual (hstrust
and suspicion which have turned the leading nations into armed camps
and precipitated the most colossal conflict in the history of time.

It would seem as if in the very wisdom of God the American Conti-
nent was created as a refuge where men of all nations might, in the
spirit of true fraternity, build new States, dedicated to liberty, jus-
tice, and liumanity, as an example to the woi'ld of the regenerative
forces of mankind; where, freed from the passions and hatreds of cen-
turies, they may (lemonstrate the ability of man to live in peace and
amity, exemplifying the loftiest ideals of liberty and humanity, set-
tlhig no disj)ut('S ];y the sword })ut by the light of God's justice'alone,
and developing a civilization which will fullill the mission for which
Christ died more than 1,900 years ago. God grant that our beloved
America may realize this dream and stand, for time and eternity, as
the examplar and champion of international rectitude and honor!

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