ered for the present to be confidential,—that is, subject to the discretion of either of the two Govern

ments.

But what is the "question of public law involved?" Is it the question of claim for indirect or consequen tial damages, as argued by the British Government? By no means.

Observe, no suggestion of any distinction between direct and indirect claims is to be found in the declaration of the Arbitrators. And their declaration can not be explained by reference to any such order of ideas.

The significant words are: "These claims do not constitute, upon the principles of international law applicable to such cases, good foundation for an award of compensation or computation of damages between nations."

Why do they not? Because they are indirect? Because they are consequential? No such objection is intimated.

But although, in making this declaration, a mere conclusion of mind, the Arbitrators abstained at the time from assigning any reasons for such conclusion, yet they supplied this omission subsequently, as we shall plainly see when we come to review the ensem ble of all the acts of the Tribunal. We shall then be able to appreciate the importance and value of this declaration to the United States.

The Counsel of the United States advised the ac ceptance of this declaration by the Government, as follows:

"We are of opinion that the announcement this day made by the Tribunal must be received by the United States as determinative of its judgment on the question of public law involved, as to which the United States have insisted on taking the opinion of the Tribunal. We advise, therefore, that it should be submitted to, as precluding the propriety of further insisting upon the claims covered by this declaration of the Tribunal, and that the United States, with a view of maintaining the due course of the arbitration on the other claims with out adjournment, should announce to the Tribunal that the said claims covered by its opinion will not be further insisted upon before the Tribunal by the United States, and may bo excluded from all consideration by the Tribunal in making its award,"

In response, the Secretary of State communicated the determination of the President, as follows:

"I have laid your telegrams before the President, who di rects me to say that he accepts the declaration of the Tribunal ns its judgment upon a question of public law, which he had felt that the interests of both Governments required should he decided, and for the determination of which he had felt it important to present the claims referred to for the purpose of taking the opinion of the Tribunal.

"This is the attainment of an end which this Government had in view in the putting forth of those claims. We had no desire for a pecuniary award, but desired an expression by the Tribunal as to the liability of a neutral for claims of that char acter. The President, therefore, further accepts the opinion and advice of the Counsel as set forth above, and authorizes the announcement to the Tribunal that he accepts their decla ration as determinative of their judgment upon the important question of public law as to which he had felt it his duty to seck the expression of their opinion; and that, in accordanco with such judgment and opinion, from henceforth ho regards the claims set forth in the Case presented on the part of the United States for loss in the transfer of the American commer cial marino to the British flag, the enhanced payment of insur ance, and the prolongation of the war, and the addition of a

large sum to the cost of the war and the suppression of the Rebellion, as adjudicated and disposed of; and that, consequently, they will not be further insisted upon before the Tribunal by the United States, but are henceforth excluded from its consideration by the Tribunal in making its award."

This conclusion was announced to the Tribunal by the Agent of the United States on the 25th of June in the following words:

"The declaration made by the Tribunál, individually and collectively, respecting the claims presented by the United States for the award of the Tribunal for, first, the losses in the transfer of the American commercial marine to the British flag; second, the enhanced payment of insurance; and, third, the prolongation of the war, and the addition of a large sum to the cost of the war and the suppression of the Rebellion, is accepted by the President of the United States as determinative of their judgment upon the important question of public law involved."

On the 27th, the British Agent announced the ac quiescence of his Government in this arrangement, withdrew his motion of adjournment, and filed the British Argument.

And in this manner the controversy, which for so many months had engrossed the attention of the two Governments, was finally disposed of as the Govern ment of the United States had constantly contended it should be [unless otherwise settled by treaty],that is, by the declaration of the judgment or opinion of the Arbitrators, in such form as to constitute, in effect, a rule of law, morally binding on Great Britain and the United States.

The President of the Tribunal, Count Sclopis, then proceeded to pronounce an appropriate and wellwritten discourse, expressing satisfaction at the re

moval of all obstacles to the free action of the Tribu nal, and commenting on the political relations of the Treaty of Washington, preparatory to the considera tion of the other questions submitted to the Arbitra.

tors.

SEAT OF THE ARBITRATION.

And here, before proceeding to explain and to dis cuss the subsequent acts of the Tribunal, it seems convenient to pause, in order to speak of the scene of action and of the Tribunal, to which the eyes of all nations were attracted, and especially those of the people of England and of America.

It was most fit and proper to select Switzerland as the country, and Geneva as the city, in which to hold the sessions of the Tribunal.

In fact, Switzerland, at the same time that it is the land of hospitality, inviting the frequentation of all the world by its picturesque scenery, the beauty and sublimity of its lakes and mountains, is also the land of neutrality par excellence. No other country possesses in the same degree these qualities conjoined. In no other country was it possible to avoid all in vidious local suspicion, and to be exempt from any possible political influence foreign to the objects of the Arbitration.

The selection was peculiarly agreeable to the United States, by reason of the striking similarity between our institutions and those of Switzerland. Both Governments cultivate a policy of international neutrality: the one, by reason of its isolation and re

moteness from the Old World, and the other because of its geographical position in the midst of the great military Powers of Europe. Both Governments are federal; and Switzerland, not content with those modifications of her system of government adopted in the year 1848, which did so much to assimilate her political organization to that of the United States, now manifests the purpose to amend that Constitution so as to make it still more like to ours. In both countries the force of public life pervades society like the blood in the human system, so that every citizen is an active member of the Republic. Hence it is impossible to an intelligent American to avoid entertaining warm sympathy for the Swiss Confederation.

Geneva is a cosmopolitan city, situated in the very heart of Europe,-distinguished for the intelli gence of its inhabitants and their love of liberty. It is city, in respect of the commodities of life: it is country, in so far as regards the locality and the sur rounding natural objects, Lake Leman, the Jura, and the Alps.

The Federal Government, as well as that of the Canton of Geneva, appreciated the honor of being the seat of this great international Tribunal, and did not fail to welcome most cordially the two Governments, their Agents and their Counsel, by conspicuous manifestations of political as well as of personal consideration. The Cantonal Government at Geneva hastened to provide suitable accommodations for the Tribunal in the IIôtel de Ville of that city; it afforded to the mem