The Bay State Monthly, Volume 3, No. 1

It is to be observed also that section 5204 specifies that if losses have at any time been sustained by a bank equal to or exceeding its "undivided profits" on hand no dividends shall be made.

Now the surplus fund is not undivided profits, except in so far as it is earnings not divided among the shareholders. It is made upon a division of the profits—so much to the stockholders and so much to the surplus fund. If the law had intended that losses might be charged to surplus fund in order to leave the other earnings available for dividends it is to be presumed that care would not have been taken to use the words "undivided profits," in the connection in which they are used, as stated above.

Furthermore, if losses may be charged to surplus when at the same time the other earnings are used for dividends to shareholders, a bank may go on declaring dividends, and never accumulate any surplus fund whatever if losses be sustained, as they are in the history of nearly every bank. A construction of the law which would render inoperative the requirement for the creation of a surplus cannot be sound; and as the only way to insure that a surplus shall be accumulated and maintained is to charge losses against other earnings as far as may be before trenching upon the surplus; it must be that the law intended that the "undivided profits" which are not in the surplus fund shall first be used to meet losses.

To a full understanding of the subject it is proper to say that after using all other earnings on hand at the usual time for declaring a dividend to meet losses the whole or any part of the surplus may be used if the losses exceed the amount of the earnings other than surplus, and then at the end of another six months a dividend may be made if the earnings will admit of it, one-tenth of the earnings being first carried to surplus and the re-accumulation of the fund thus begun.

This is because the law has been complied with by charging the losses against the "undivided profits," as far as they will go, and it is impossible to do more, or require more to be done, for the re-establishment of the state of things that existed prior to losses having been sustained than to do what the law requires shall be done to originally establish that state of things.

CONCORD, N.H

IMPRESSIONS D'UN FRANÇAISPar le Professeur Emile Pingault

Quand les Français, les Français de France, comme disent leurs cousins canadiens, parlent de l'Amérique ou pensent à cette reine des républiques, ils n'ont en vue que les grandes villes. New-York, Boston, Philadelphie, Chicago, la Nouvelle Orléans etc. … forment seuls, pour eux, l'immense continent découvert par Christophe Colomb.

Je voudrais essayer de réagir contre l'idée générale qu'on a, que la lumiére, l'intelligence, la prospérité ne se trouvent que dans les grands centres.

La Providence a voulu que je vinsse établir ma tente dans une ville qui, bien qu'étant la capitale du New-Hampshire, paraît comme un point microscopique auprès des villes que j'ai citées plus haut. Eh bien, sans flatterie aucune, si l'on a pu appeler Boston l'Athène de l'Améríque, je ne vois pas pourquoi on n'appellerait pas Concord un petit Rambouillet, toute proportion gardée.

Je ne vous dirái pas que Concord est une petite ville située sur la Merrimac, de 14,000 à 15,000 habitants, mais ce que je puis vous dire c'est qu'il faudrait aller bien loin pour trouver une ville plus intelligente et plus éclairée, je dirais même plus patriarcale. Tout le monde s'y connaît et s'estime l'un l'autre. Il y a dans cette ville une émulation pour le bien et pour l'instruction qui ne peut être surpassée.

Outre les écoles publiques telles que la Haute École (High School), les écoles de grammaire, les écoles particulières, on y voit encore des professeurs de langues modernes, des professeurs de dessin et de peinture, et parmi ces derniers un jeune artiste qui fera vraiment la gloire de l'Etat de Granit si la rlasse éclairée sait l'attacher permanemment à la capitale. La musique a une place privilégiée dans cette ville, les concerts de l'orchestre Blaisdelle sont suivis comme le seraient les premières de Booth et d'Irving. Il y a la plus que du sentiment, il y a véritablement de l'art, et un enfant de Concord, mort il y a deux ans, âge de vingt ans à peine, était une preuve manifeste que l'art est compris ici à un degré supérieure.

La littérature est cultivée avec le plus grand soin. Outre trois clubs, composés chacun d'une quinzaine de membres, qui étudient et admirent Shakspeare; une dame qui manie la parole comme le grand dramatiste maniait la pensée donne des conférences sur l'auteur d'Hamlet devant un auditoire aussi intelligent que nombreux.

Cet amour de s'instruire et d'étudier perce jusque dans les enfants les plus jeunes. Deux Kindergarten sont établis en cette ville; là, outre les choses aimables et utiles qu'on enseigne aux petits garçons et petites filles de cinq à six ans, on leur apprend aussi le français. Qu'il est beau de voir ces jeunes intelligences se développer an son de la belle langue de Bossuet, de Fénelon, de Lamartine et de Victor Hugo. Vous verrez à Concord un spectacle peut-être unique dans les Etats-Unis: une douzaine de petits Américains et Américaines chantant la Marsellaise et dansant des rondes de Bretagne et de Vendée avec une voix aussi douce et un accent aussi pur que s'ils étaient nés sur les bords de la Seine.

Ajoutez à ce tableau bien court et nullement exagéré que l'union et la paix régne entre tous les habitants de la ville, que la police y est heureuse et fort peu occupée, et vous aurez l'idée de la tranquillité dont on jouit dans cet endroit privilégié.

J'avouerai franchement, pour finir, que si toutes les villes et villages ressemblaient à Concord, l'Amérique serait le premier de tous les mondes connus.

CLAYTON-BULWER TREATY VS. MONROE DOCTRINE

By George W. Hobbs

In every conflict of European with American interests on the two continents, comprising North and South America, our countrymen always make their appeal to the "Monroe Doctrine" as the supreme, indisputable, and irrevocable judgment of our national Union. It is said to indicate the only established idea of foreign policy which has a permanent influence upon our national administration, whether it be Republican or Democratic, politically. A President of the United States, justly appealing to this doctrine, in emergency arouses the heart and courage of the patriotic citizen, even in the presence of impending war.

In view of this powerful sentiment swaying a great people, as well as their government, it is not surprising that Congress is often called upon to apply its principles; and it therefore becomes more and more important that it should be well understood by people, as well as Congress, in respect to its origin and purpose.

In the message of President Monroe to Congress, at the commencement of the session of 1823-24, the following passages occur:

"In the wars of the European powers, in matters relating to themselves, we have never taken any part, nor does it comport with our policy to do so. It is only when our rights are invaded, or seriously menaced, that we resent injuries, or make preparations for defence. With the movements in this hemisphere we are of necessity more immediately connected, and by causes which must be obvious to all enlightened and impartial observers. The political system of the allied powers is essentially different in this respect from that of America. This difference proceeds from that which exists in their respective governments; and to the defence of our own, which has been achieved by the loss of so much blood and treasure, and matured by the wisdom of their most enlightened citizens, and under which we have enjoyed such unexampled felicity, this whole nation is devoted.

"We owe it, therefore, to candor, and to the amicable relations existing between the United States and those powers to declare—that we should consider any attempt on their part to extend their system to any portion of this hemisphere, as dangerous to our peace and safety. With the existing colonies or dependencies of any European power, we have not interfered and shall not interfere; but with the governments who have declared their independence and maintained it, and whose independence we have on great consideration, and on just principles acknowledged, we could not view any interposition for the purpose of oppressing them or controlling in any other manner their destiny, in any other light, than as the manifestation of an unfriendly disposition towards the United States."

"It is impossible that the allied powers should extend their political sytem to any portion of either continent, without endangering our peace and happiness.

"It is equally impossible, that we should behold such interposition in any form with indifference."

Lest there may be some misapprehension, as to the political circumstances, which called for the promulgation of this "Monroe Doctrine," let us for a moment review the events which gave color and importance to the political environments of that date which elicited from President Monroe this now famous declaration.

In the year 1822 the allied sovereigns held their Congress at Verona. The great subject of consideration was the condition of Spain; that country being then under the Cortes or representatives of the Revolutionists. The question was, whether or not Ferdinand should be re-instated in all his authority by the intervention of foreign powers.

Russia, Prussia, France, and Austria, were inclined to that measure; England dissented and protested, but the course was agreed upon; and France, with the consent of these other continental powers, took the conduct of the operation into her own hands. In the spring of 1823, a French army was sent into Spain. Its success was complete; the popular government was overthrown, and Ferdinand was re-instated and re-established in all his power. This invasion was determined on and undertaken precisely on the doctrines which the allied monarchs had proclaimed the year before at Laybach; that is, that they had the right to interfere in the concerns of another State, and reform its government, "in order to prevent the effect of its bad example" (this bad example, be it remembered, always being the example of free government by the people). Now having put down the example of the Cortes, in Spain, it was natural to inquire, with what eyes they should look on the Colonies of Spain, that were following still worse examples. Would King Ferdinand and his allies be content with what had been done in Spain itself, or would he solicit their aid and would they grant it, to subdue his rebellious American colonies?

Having "reformed" Spain herself to the true standard of a proud monarchy, it was more than probable that they might see fit to attempt the "reformation" and re-organization of the Central and South American Colonies, which were following the "pernicious example of the United States," and declaring themselves "free and independent," it being an historical fact, that as soon as the Spanish King was completely reestablished he invited the co-operation of his allies in regard to his provinces in South America, to "assist him to readjust the affairs in such manner as should retain the sovereignty of Spain over them." The proposed meeting of the allies for that purpose, however, did not take place. England had already taken a decided course, and stated distinctly, and expressly, that "she should consider any foreign interference by force or by menace, in the dispute between Spain and the Colonies, as a motive for recognizing the latter without delay."

The sentiment of the liberty-loving people of the American Union was strongly in favor of the independence of the Colonies, which our government had already recognized; and it was at this crisis, just as the attitude of England was made known, that President Monroe's noble and patriotic declaration was made. Its effect was grand; it disarmed all organized attempts on the part of Spain and her allies to re-organize her "rebellious colonies"—now our sister republics in the western hemisphere—and shook the political systems of the world to their centres.

"The force of President Monroe's declaration," said Daniel Webster, "was felt everywhere by all those who could understand its object, and foresee its effect." Lord Brougham said in Parliament that "no event had ever created greater joy, exaltation, and gratitude, among all the freemen in Europe;" that he felt "proud in being connected by blood and language with the people of the United States;" that "the policy disclosed by the message became a great, a free, an independent nation."

Daniel Webster again said of it, "I look on the message of December, 1823, as forming a bright page in our history. I will neither help to erase it nor tear it out; nor shall it be by any act of mine blurred or blotted. It did honor to the sagacity of the government, and I will not diminish that honor. It elevated the hopes and gratified the patriotism of the people over these hopes. I will not bring a mildew, nor will I put that gratified patriotism to shame."

The effect of this declaration in Europe was all that could have been desired by the patriotic statesmen who contributed their counsel to its adoption. The message arrived in England on December 24, 1823—twenty-two days after Mr. Monroe delivered it to Congress. On the second of January. Mr. Camming, the British Minister of foreign affairs, told the American Minister that the principles declared in the message, that the American continents were not to be considered as subject to future colonization by any of the powers of Europe, greatly embarassed the instructions he was about to send to the British Ambassador at St. Petersburg, touching the Northwestern boundary; and that he believed Great Britain would combat this declaration of the President with animation.

Its effect upon the then pending negotiations with Russia was so favorable, that the convention of 1824 was concluded in the Spring of that year, by the withdrawal on the part of the Emperor of his pretentious to exclusive trade on the Northwest coast, and by fixing the parallel of 54" 40' as the line between the permissible establishments of the respective countries.

This in brief is the history of the celebrated "Monroe Doctrine." It has never been affirmatively adopted by Congress, by any recorded vote, as the fixed and unalterable policy of this Republic; but its patriotic sentiment is so deeply bedded in the hearts of the American people of every political opinion, that Congress ought not and dare not ignore it.

But did not the United States Senate, when it ratified the Clayton-Bulwer Treaty in 1850, practically ignore the "Monroe Doctrine" and open the door for future trouble? Let us examine this treaty, which, in the light of present Congressional action, has become an important element in American politics, and see if it is not antagonistic to the American policy, and more than the bete noir of partizan dreams. In order for a complete understanding of the terms, and bearing of this treaty, I deem it important to give a full synopsis, rather than a brief reference to its salient points:

THE CLAYTON-BULWER TREATY

"A convention between the United States of America and her Britannic Majesty.

PREAMBLE

"The United States and her Britannic Majesty, being desirous of consolidating the relations of amity, which so happily subsist between them, by setting forth and fixing in a convention their views and intentions with reference to any means of communication by ship canal, which may be constructed between the Atlantic and Pacific oceans, by way of the river San Juan de Nicaragua and either or both the lakes of Nicaragua or Manaqua, to any port or place on the Pacific ocean, the President of the United States has conferred full powers on John M. Clayton, Secretary of State of the United States, and her Britannic Majesty on the Right Honorable Sir Henry Lytton Bulwer, a member of her Majesty's most honorable Privy Council, Knight Commander of the most honorable order of Bath, and Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty to the United States for the aforesaid purpose; and the said plenipotentiaries, having exchanged their full powers, which were found to be in proper form, have agreed to the following articles, viz:

Article 1. The governments of the United States and Great Britain hereby declare that neither the one nor the other will ever obtain, or maintain for itself, any exclusive control over the said ship canal; agreeing that neither will ever erect or maintain, any fortifications commanding the same, or in the vicinity thereof: or occupy, or fortify, or colonize, or assume or exercise any dominion over Nicaragua, Costa Rica, the Mosquito Coast, or any part of Central America. Nor will either make use of any protection which either affords, or may afford, or any alliance which either has or may have, to or with, any state or people for the purpose of erecting or maintaining any such fortifications, or of occupying, fortifying, or colonizing Nicaragua, Costa Rica, the Mosquito Coast, or any part of Central America, or of assuming, or exercising dominion over the same; nor will the United States or Great Britain take advantage of any intimacy, or use any alliance, connection, or influence, that either may possess, with any state or government, through whose territory the said canal may pass, for the purpose of acquiring or holding, directly or indirectly, for the citizens or subjects of the one, any rights or advantages in regard to commerce, or navigation through the said canal, which shall not be offered on the same terms to the citizens or subjects of the other.

Art. 2. Vessels of the United States or Great Britain traversing the said canal shall, in case of war between the contracting parties, be exempted from blockade, detention, or capture by either of the beligerents, and this provision shall extend to such a distance from the two ends of the said canal, as may hereafter be found expedient to establish.

Art. 3. The persons and property engaged in building the said canal shall be protected by the contracting parties from all unjust detention, confiscation and violence.

Art. 4. Both governments will facilitate the construction of said canal and establish two free ports, one at each end of said canal.

Art 5. Both governments will guaranty and protect the neutrality of said canal; provided, however, that said protection and guaranty may be withdrawn by both, or either governments, if both or either should deem that the persons building or managing the same adopt or establish regulations concerning traffic therein, as are contrary to the spirit and intention of this convention, either by unfair discrimination, in favor of the commerce of one contracting party over the other, or by imposing oppressive exactions or unreasonable tolls upon passengers, vessels, goods, wares, merchandise, or other articles,—neither party to withdraw such protection and guaranty without first giving six months notice to the other.

Art 6. Treaty stipulations maybe made with the Central American States, and states with which either or both parties have friendly intercourse; and settle all differences arising as to the rights of property in the canal, etc.

Art. 7. Contract to be entered into without delay, and the party first commencing labor, etc., in the construction of said canal, is to have priority of claim to construct the same, and will be protected therein by the parties to this treaty.

Art. 8. Both governments agree that protection shall be extended by treaty stipulations, hereafter to be made and entered into, to other communications or ways across said isthmus.

Art. 9. Treaty to be ratified by both governments and ratifications exchanged at Washington within six months."

This treaty bears date April 19, 1850, and is still in force in all its provisions.

Is there anything in the terms, conditions, or effect of this treaty, which in any way tends to militate or conflict with the declarations of the "Monroe Doctrine?"

To answer this question satisfactorily, and give a careful analysis of the treaty, in all its details, would take more time and space than I am at liberty to use; but I may be pardoned if I trespass a little and give a few reasons why I am come to the conclusion that the effect of the Clayton-Bulwer Treaty is to abrogate and annul to a great extent the cardinal principle of the "Monroe Doctrine."

In the first place the "Monroe Doctrine" was the accepted policy of this government as to all foreign intervention from 1823 to 1850, and with some of the leading minds of the country it has never ceased to be the paramount creed in the national catechism. During these twenty-seven years the project of building an inter-oceanic canal had been considerably agitated, in Congress and out, and had enlisted to some extent the sympathies of foreign powers who desired a shorter passage to the Pacific Ocean, the East Indies, and the markets of Cathay, than the stormy ones around the southern capes of either hemisphere.

This agitation finally culminated in diplomatic correspondence between the representatives of Great Britain and the United States relative to the construction of such a means of communication and the rights of the two nations to the same, resulting in the treaty. In April, 1850, the Senate of the United States, by a very large vote, ratified and confirmed this treaty, notwithstanding it was vigorously opposed by such men as Stephen A. Douglas and Lewis Cass, then in the zenith of their fame.

It appears in the Congressional record of 1850, and subsequently, that the treaty was ratified without a very clear understanding of its meaning; and it was even hinted, in rather plain language, that the representative of Great Britain had been too sharp, too diplomatic for his American brother, and had overreached him. It further appeared that the honorable Senate was sadly deficient in knowledge of geography, and national boundaries; for it is matter of record, that many Senators voted for the ratification under the impression that British Honduras was included in the territory of Guatamala, and that the British settlements were in that republic; while, as a fact, Balize or British Honduras was on the easterly side of the Isthmus, never had been a part of that republic, and the British settlements were, and always had been, in Yucatan. They further understood the treaty to say, that neither government should occupy, fortify, or colonize Nicaragua, Costa Rica, the Mosquito Coast, or any part of Central America; but it is a fact, that at the very date of the treaty, at the date of the ratification, and since, Great Britain occupied and colonized the Mosquito coast, or that part which joins British Honduras on the northerly side of South Honduras; and Mr. Douglas, in 1857, in a debate in Congress upon a "resolution of inquiry as to the present status of the treaty," said: "I voted against the treaty, Mr. President, for the reason that I am unwilling to enter into any stipulations with any European power, that we would not do on this continent whatever we might think it our duty to do, whenever a case should arise. I voted against it because by clause 1 of that treaty we are debarred from doing what it might be our duty to do; but as it has been entered into, I desire to see it enforced. I am not yet aware that that clause of the treaty has been carried into effect. I have yet to learn that the British Government have withdrawn their protectorate from the Mosquito Coast; I have yet to learn that they have abandoned the possession of that territory which they held under the Mosquito King."

From the day that treaty was ratified to the present, it has been a fertile source of discord and misunderstanding between the two governments; and from 1850 to 1858 its provisions were thrice made the basis of a proposal to arbitrate as to their meaning: their modification and abrogation have been alike contingently considered, and their imperfect and vexatious character have been repeatedly recognized on both sides. Even the present administration is laboring with the difficulty, and seeking some honorable way to free the treaty from its embarrassing features, or entirely abrogate it. President Buchanan, in 1858, characterized and denounced the treaty as "one which had been fraught with misunderstanding and mischief from the beginning;" and the leading statesmen of the country have felt that it was entirely inadequate to reconcile the opposite views of Great Britain and the United States towards Central America.