Anglo-American Arbitration Unlimited

Several months ago President Taft declared that, for his part, he was unable to see why arbitration agreements should expressly exclude "questions of honor or vital interest," and that, as a sincere peace man, he was ready to advocate arbitration unqualified, arbitration of all questions that arise among certain advanced, civilized nations. Later Mr. Taft intimated that he would favor an ideal, allembracing treaty of arbitration with England. The significance of these statements from the head of the American nation was not overlooked, but they produced no stir in Europe. When, however, Sir Edward Grey, the British minister for foreign affairs, in a speech on the naval estimates of the current year, referred to President Taft's courageous, radical ideas on arbitration with sympathy and approval, expressing his belief that the British government, parliament, and people would meet the United States half way, all Europe, so to speak, sat up and took notice. Sir Edward Grey's speech at once became a topic of universal interest and discussion. He amplified it in further utterances, and even the leading tory and imperialist organs have indorsed his views in the main.

Sir Edward's standing lends particular importance to his position on the question. He is a moderate and cautious statesman, and eminently "practical." He frankly tells England and the world that the growing burdens of de

fence and preparation for war cannot fail, in another generation, to provoke insurrection and revolution. He sees no reason in the furious military and naval rivalry of the most "progressive" nations; he deplores the necessity of increasing taxation for non-productive purposes; he would gladly coöperate with other powers in reducing armaments and wasteful defence expenditures. But he insists that no single power can "drop out of the race," insane and ruinous as it is. England must do what Germany, France, Austria, Japan, Russia, America are doing. More war ships, more marines, more guns, more soldiers, is the cry everywhere-all, absurdly enough, in the name of peace and commerce and no power cares to jeopardize its holdings and possessions by a suggestion of weakness. If, however, England and the United States should negotiate a model, comprehensive treaty of "complete" arbitration, the abolition of war in Anglo-Saxondom would inevitably, if slowly, perhaps, lead to its abolition in the world at large. The question of limiting armaments by agreement would enter the domain of "practical" politics, and even German warriors and statesmen might entertain the idea.

There is much point and force in Sir Edward's idea. This is shown by the comments on it of influential German papers, which are not as hostile or contemptuous as they used to be. Even Germany is groaning under her tax burdens and driven to adopt very unpopular revenue measures. Even Germany is beginning to see that there is no advantage in huge armies and navies if other powers feel that they must make their armies and navies even more colossal. And this is indeed the most hopeful sign of the times. It is well known that German opposition has been the great obstacle in the way of international agreements for the reduction of military-naval budgets. If that opposition could be overcome, economy and limitation of armaments would at once become feasible and certain.

However, German opposition is too strong even now

to warrant high hopes of early practical results. An AngloAmerican treaty of unlimited arbitration would be of great moral benefit, but of moral benefit only. It offers the line of least resistance. It is devoutly to be wished, but let no one expect from it more than in existing international circumstances it could yield. England is arming and equipping herself against Germany, Germany against England, France against Germany, Russia against Germany and Japan, and so on. The paramount need of the world from a peace-arbitration point of view is a friendly understanding between England and Germany. Happily, such an understanding is not impossible. It is seriously discussed in both countries.

Success of the Postal Banks

Early in January last the Postoffice department "experimentally" opened forty-three postal savings banks-all in small towns and little industrial centers-under the act authorizing the establishment of such institutions. The law had been enacted in spite of much hostile pressure and agitation, and it left a good deal to be desired from the view-point of those who see nothing dangerous, "socialistic" or un-American in governmental facilities for taking care of savings in connection with the postal service. Still, the act was better than nothing, and it was welcomed as "the thin end of the wedge." Amendments and improvements of it were to depend largely on the results of the first and experimental steps.

How has the legislation worked? A report was published on March 20 covering two months of the operation of the postal banks. The figures were regarded as eminently favorable-that is, as demonstrating the complete success of the experiment. The total number of accounts opened up to the beginning of March was 3,923. The net amount on deposit was $133,869. At the same rate and

proportion of patronage, a system of postal banks covering all money order offices would, after one year's operation, bring forth $200,000,000. The deposits so far made have not been withdrawn from private banks; even bankers admit this. The money was formerly hoarded and hidden, and thus kept out of circulation, or else it largely represents new savings, thrift where before there was waste. In either case, the depositories have done good without affecting adversely a single deserving interest. The patrons of these governmental banks seem to be mostly miners, aliens, farmers of isolated sections lacking in banking facilities. This is all in harmony with the original predictions of the friends of the innovation.

Congress has appropriated, rather grudgingly, $500,000 for the extension of the postal bank system. More offices are to be opened, also in small industrial and agricultural centers, where the need for them is greatest.

An account of the purpose and method of these banks is given elsewhere in this magazine in an article entitled "The Human Side of the United States Treasury."

Corruption in Politics and Legislation

We have referred to the amazing bribery and fraud lately disclosed in Adams County, Ohio, a county of white American farmers, not of aliens or of illiterate and poor blacks. The investigation in that county is not yet completed, but the indictments so far returned exceed 2,000, and this means that over 2,000 persons were engaged in wilful bribery and corrupt traffic in votes. Only the bribed have been called to account and fined or disfranchised; the bribers have escaped.

But, shocking as the conditions have been in Adams. County, they afford some ray of hope and satisfaction in that the grand jurors, bench, and prosecutors have displayed vigor in exposing and ending them. A much worse