10 AUGUST 1912, Page 2

We regret to notice that the Senate on Wednesday decided

by a large majority to retain the clause in the Panama Canal Bill exempting American ships in the coasting trade from the payment of dues. This clause is a violation of the clear sense of the Hay-Pauncefote Treaty. The action of the Senate is an example of the sort of policy the United States should studiously avoid if the Monroe Doctrine is permanently to commend itself to peace-loving nations. It must be honoured and respected if it is to remain an instrument of peace. If the Senate persists in its present course the strongest efforts of Great Britain must be directed to getting the tolls question referred to the Hague for arbitration.