24 AUGUST 1912, Page 2

It is certainly something that the proposal also to exempt

American deep-sea shipping has been rejected. But even if Mr. Taft is right in his opinion—we do not share it—that the exemption from tolls of coastwise trade does not .do any

theoretical violence to the treaty, we fear that in practice coastwise trade is capable of a fatally wide interpretation. Not long ago a German ship started from New York and went east through the Suez Canal. After crossing the Indian Ocean and the Pacific she came to San Francisco,. upon which the owners were fined for engaging as foreigners in the American coastwise trade ! We do not believe that either the Senate or Mr. Taft have raised them- selves in the eyes of their countrymen by their action. Reputable and thinking Americans are, we believe, for the most part indignantly opposed to the policy of claiming any- thing for the United States at Panama that does not fairly and squarely come within the four corners of the Hay-Paunce. fote Treaty. The whole question ought undoubtedly to be referred to arbitration at the Hague. We trust that our Foreign Office will direct all its attention to securing this moat desirable and simple solution.