We fear there is no getting away from the fact
that the Act, in exempting American coastwise shipping from dues, does violate the simple meaning of the Hay-Pauncefote Treaty. Nor is it quite certain, though we do not wish to insist on this point, that Mr. Taft has not in his mind the possibility of remitting dues in the case of American ships engaged in foreign trade. The Act provides that " when based upon net registered tonnage for ships of commerce, the tolls shall not exceed one dollar and 25 cents per net registered ton, nor be less, other than for vessels of the United States and its citizens, than the estimated propor- tionate cost of the actual maintenance and operation of the Canal." The abatement or exemption appears to be con- templated for "all " vessels of the United States and its citizens." And we must admit that if there is a case— which there is not—for the exemption of coastwise shipping the argument can be made to apply logically to all American shipping. Indignant protests continue to come from notable Americans in public life and from the newspapers whose opinion is best worth having. We have written of the whole subject elsewhere. Our Foreign Office will no doubt use every endeavour to get the matter submitted to arbitration. The Charge d'Affaires at Washington has already made fresh representations in that sense. The United States, of all countries, can hardly be deaf to such an appeal, though Mr. Taft's advice to Congress may have the appearance of pre- judging the question.
