c　to　the　Pacific；　and　now　the　purchase　of　Alaska　by　the　United　States　had　added　new　uncertainties　to　the　international　boundary。　The　claims　of　both　nations　were　based　on　a　treaty　of　1825　between　Great　Britain　and　Russia。　Like　most　attempts　to　define　boundaries　running　through　unexplored　territories；　the　treaty　terms　admitted　of　two　interpretations。　The　boundary　line　from　Portland　Channel　to　Mount　St。　Elias　was　stipulated　to　run　everywhere　a　distance　of　ten　marine　leagues　from　the　coast　and　to　follow　its　sinuosities。　This　particular　coast；　however；　is　bitten　into　by　long　fiords　stretching　far　into　the　country。　Great　Britain　held　that　these　were　not　part　of　the　sea　in　the　sense　of　the　treaty　and　that　the　line　should　cut　across　them　ten　marine　leagues　from　the　outer　coast　line。　On　the　other　hand；　the　United　States　held　that　the　line　should　be　drawn　ten　marine　leagues　from　the　heads　of　these　inlets。
  The　discovery　of　gold　on　the　Yukon　in　1897　made　this　boundary　question　of　practical　moment。　Action　now　became　an　immediate　necessity。　In　1899　the　two　countries　agreed　upon　a　modus　Vivendi　and　in　1903　arranged　an　arbitration。　The　arbitrating　board　consisted　of　three　members　from　each　of　the　two　nations。　The　United　States　appointed　Senator　Henry　Cabot　Lodge；　ex…Senator　George　Turner；　and　Elihu　Root；　then　Secretary　of　War。　Great　Britain　appointed　two　Canadians；　Louis　A。　Jette　and　A。　B。　Aylesworth；　and　Lord　Alverstone；　Chief　Justice　of　England。　Their　decision　was　in　accordance　with　the　principle　for　which　the　United　States　had　contended；　though　not　following　the　actual　line　which　it　had　sketched。　It　gave　the　Americans；　however；　full　control　of　the　coast　and　its　harbors；　and　the　settlement　provided　a　mutually　accepted　boundary　on　every　frontier。
  With　the　discovery　of　gold　in　the　far　North；　Alaska　began　a　period　of　development　which　is　rapidly　making　that　territory　an　important　economic　factor　in　American　life。　Today　the　time　when　this　vast　northern　coast　was　valuable　only　as　the　breeding　ground　for　the　fur　seal　seems　long　past。　Nevertheless　the　fur　seal　continued　to　be　sought；　and　for　years　the　international　difficulty　of　protecting　the　fisheries　remained。　Finally；　in　1911；　the　United　States　entered　into　a　joint　agreement　with　Great　Britain；　Japan；　and　Russia；　which　is　actually　serving　as　a　sort　of　international　game　law。　The　problems　of　Alaska　that　remain　are　therefore　those　of　internal　development。
  Diplomacy；　however；　is　not　concerned　solely　with　sensational　episodes。　American　ministers　and　the　State　Department　are　engaged　for　the　most　part　in　the　humdrum　adjustment　of　minor　differences　which　never　find　their　way　into　the　newspapers。　Probably　more　such　cases　arise　with　Great　Britain；　in　behalf　of　Canada；　than　with　any　other　section　of　the　globe。　On　the　American　continent　rivers　flow　from　one　country　into　the　other；　railroads　carry　goods　across　the　border　and　back　again；　citizens　labor　now　in　one　country；　now　in　the　other；　corporations　do　business　in　both。　All　these　ties　not　only　bind　but　chafe　and　give　rise　to　constant　negotiation。　More　and　more　Great　Britain　has　left　the　handling　of　such　matters　to　the　Canadian　authorities；　and；　while　there　can　be　no　interchange　of　ministers；　there　is　an　enormous　transaction　of　business　between　Ottawa　and　Washington。
  While　there　has　of　late　years　been　little　talk　of　annexation；　there　have　been　many　in　both　countries　who　have　desired　to　reduce　the　significance　of　the　boundary　to　a　minimum。　This　feeling　led　in　1911　to　the　formulation　of　a　reciprocity　agreement；　which　Canada；　however；　was　unwilling　to　accept。　Yet；　if　tariff　restrictions　were　not　removed；　other　international　barriers　were　as　far　as　possible　done　away　with。　In　1898　a　commission　was　appointed　to　agree　upon　all　points　of　difference。　Working　slowly　but　steadily；　the　commissioners　settled　one　question　after　another；　until　practically　all　problems　were　put　upon　a　permanent　working　basis。　Perhaps　the　most　interesting　of　the　results　of　this　activity　was　the　appointment　in　1908　of　a　permanent　International　Fisheries　Commission；　which　still　regulates　that　vexing　question。
  Another　source　of　international　complication　arose　out　of　the　Atlantic　fisheries　off　Newfoundland；　which　is　not　part　of　Canada。　It　is　off　these　shores　that　the　most　important　deep…sea　fishing　takes　place。　This　fishery　was　one　of　the　earliest　American　sources　of　wealth；　and　for　nearly　two　centuries　formed　a　sort　of　keystone　of　the　whole　commercial　life　of　the　United　States。　When　in　1783　Great　Britain　recognized　American　independence；　she　recognized　also　that　American　fishermen　had　certain　rights　off　these　coasts。　These　rights；　however；　were　not　sufficient　for　the　conduct　of　the　fisheries；　and　so　in　addition　certain　〃liberties〃　were　granted；　which　allowed　American　fishers　to　land　for　the　purpose　of　drying　fish　and　of　doing　other　things　not　generally　permitted　to　foreigners。　These　concessions　in　fact　amounted　to　a　joint　participation　with　the　British。　The　rights　were　permanent；　but　the　privileges　were　regarded　as　having　lapsed　after　the　War　of　1812。　In　1818　they　were　partially　renewed；　certain　limited　privileges　being　conceded。　Ever　since　that　date　the　problem　of　securing　the　additional　privileges　desired　has　been　a　subject　for　discussion　between　Great　Britain　and　the　United　States。　Between　1854　and　1866　the　American　Government　secured　them　by　reciprocity；　between　1872　and　1884　it　bought　them；　after　1888　it　enjoyed　them　by　a　temporary　modus　vivendi　arranged　under　President　Cleveland。
  In　1902　Hay　arranged　with　Sir　Robert　Bond；　Prime　Minister　of　Newfoundland；　a　new　reciprocity　agreement。　This；　however；　the　Senate　rejected；　and　the　Cleveland　agreement　continued。　Newfoundland；　angry　at　the　rejection　of　the　proposed　treaty；　put　every　obstacle　possible　in　the　way　of　American　fishermen　and　used　methods　which　the　Americans　claimed　to　be　contrary　to　the　treaty　terms。　After　long　continued　and　rather　acrimonious　discussions；　the　matter　was　finally　referred　in　1909　to　the　Hague　Court。　As　in　the　Bering　Sea　case；　the　court　was　asked　not　only　to　judge　the　facts　but　also　to　draw　up　an　agreement　for　the　future。　Its　decision；　on　the　whole；　favored　Newfoundland；　but　this　fact　is　of　little　moment　compared　with　the　likelihood　that　a　dispute　almost　a　century　and　a　half　old　has　at　last　been　permanently　settled。
  None　of　these　international　disputes　and　settlements　to　the　north；　however；　excited　anything　like　the　popular　interest　aroused　by　one　which　occurred　in　the　south。　The　Spanish　War　made　it　abundantly　evident　that　an　isthmian　canal　between　the　Atlantic　and　the　Pacific　must　be　built。　The　arguments　of　naval　strategy　which　Captain　Mahan　had　long　been　urging　had　received　striking　demonstration　in　the　long　and　roundabout　voyage　which　the　Oregon　was　obliged　to　take。　The　pressure　of　railroad　rates　on　the　trade　of　the　country　caused　wide　commercial　support　for　a　project　expected　to　establish　a　water　competition　that　would　pull　them　down。　The　American　people　determined　to　dig　a　canal。
  The　first　obstacle　to　such　a　project　lay　in　the　Clayton…Bulwer　Treaty　with　Great　Britain。　That　obstacle　Blaine　had　attempted　in　vain　to　remove；　in　fact　his　bungling　diplomacy　had　riveted　it　yet　more　closely　by　making　Great　Britain　maintain　it　as　a　point　of　honor。　To　this　subject　Hay　now　devoted　himself；　and　as　he　encountered　no　serious　difficulties；　a　treaty　was　drawn　up　in　1900　practically　as　he　wished　it。　It　was　not；　however；　popular　in　the　United　States。　Hay　preferred　and　arranged　for　a　canal　neutralized　by　international　guarantee；　on　the　same　basis　as　the　Suez　Canal；　but　American　public　sentiment　had　come　to　insist　on　a　canal　controlled　absolutely　by　the　United　States。　The　treaty　was　therefore　rejected　by　the　Senate；　or　rather　was　so　amended　as　to　prove　unacceptable　to　Great　Britain。
  Hay　believed　that　he　had　obtained　what　was　most　desirable　as　well　as　all　that　was　possible；　that　the　majority　of　the　American　people　approved；　and　that　he　was　beaten　only　because　a　treaty　must　be　approved　by　two…thirds　of　the　Senate。　He　therefore　resigned。　President　McKinley；　however；　refused　to　accept　his　resignation；　and　he　and　Lord　Pauncefote　were　soon　at　work　again　on　the　subject。　In　1901　a　new　treaty　was　presented　to　the　Senate。　This　began　by　abrogating　the　Clayton…Bulwer　Treaty　entirely　and　with　it　brushing　away　all　restrictions　upon　the　activity　of　the　United　States　in　Central　America。　It　specifically　permitted　the　United　States　to　〃maintain　such　military　police　along　the　canal　as　may　be　necessary　to　protect　it　against　lawlessness　and　disorder。〃　By　interpreting　this　clause　as　allowing　complete　fortification；　the　United　States　has　made　itself　the　guardian　of　the　canal。　In　return　for　the　release　from　former　obligations　which　Great　Britain　thus　allowed；　the　United　States　agreed　that　any　canal　constructed　should　be　regulated　by　certain　rules　which　were　stated　in　the　treaty　and　which　made　it　〃free　and　open　to　the　vessels　of　commerce　and　of　war　of　all　nations　observing　these　Rules；　on　terms　of　entire　equality；〃　in　time　of　war　as　well　as　of　peace。　This　time　the　treaty　proved　satisfactory　and　was　accepted　by　the　Senate。　Thus　one　more　source　of　trouble　was　done　away　with；　and　the　first　obstacle　in　the　way　of　the　canal　was　removed。
  The