Nevertheless, United States of America will probably continue to be with us, the United States par excellence, as the British Premier says.

The American Government have given their own proper national title slender official countenance; nor has the term figured for several decades in the messages of the United States Presidents to the United States Congress. President Roosevelt, in its writings, having made a practice of using the term America,1 before he was driven by virtue of his office to employ the official Federal title, which is, only after all, inadequate when addressing foreign nations.2

Brazilians, of employing the term United States as if it referred solely to the republic of the United States of America. "The Federal designation-United States-was (he says) adopted by us in 1889 without any apprehension that it would thereby confuse the general titles previously assumed by the republics of America and Colombia. I trust it is not too late to point out to Englishmen -and to all Europeans-that such Federal designation-United Statesis merely intended for local and domestic purposes in each of the republics named, and not the national title, certainly not the exclusive possession, of a single one abroad."

1 Thus, he writes, "America will become greater than any empire," etc."The Strenuous Life," 69.

Yet the difficulties under which the legal authorities have been labouring, owing to this misapprehension of nomenclature, are numerous. Take a recent decision of the Supreme Court (1901), where it is declared that the existing Federal constitution was made for the United States, by which term we understand the States, whose people united to form the Constitution, and such as have since been admitted to the Union upon an equality with them. Had the counsel of Hamilton been followed, and the term "America" been officially used, how much more comprehensible would be the situation?

APPENDIX II

THE NEW TRUSTS AND THEIR MAKERS

If the physiology of the Trust is yet far from being thoroughly understood, the personality and methods of the Trust makers is less so. Of the Trust system generally, it may be said that, despite the many powerful and plausible arguments used in its defence, these have hardly dispersed the many misgivings in the minds of publicists concerning a system which offers one of the sternest problems which the future has in store for the United States of America.

Not the least significant or interesting feature of the Trust movement has been the rapidity with which it has developed from comparatively moderate beginnings thirty years ago to its present position to-day, when the industrial combinations in America represent a capital of one billion two hundred millions sterling; while during the single year 1899 Trusts were formed to the extent of two billion dollars, which is a sum in excess of the total currency in circulation amongst seventy millions of people.

But the end is not yet, although the first stage of Trust development may be said to have concluded; it now remains for the Trusts, which have swallowed up all separate industries and destroyed competition, to devour themselves-in other words, for the "consolidations" to consolidate. The goal of this movement, if not checked by some obstacle one cannot yet foresee, would appear obviously to lie in the direction of an industrial monarchy or oligarchy, in which one man or a handful of men will control, not as now a million and a half or two

millions of artisans, but the entire labour, skilled and unskilled, of the State; and from this stupendous position be able to dictate both prices and wages to the inhabitants of the republic. Mr. Carnegie once himself admitted as much, although apprehending the intrusion of a factor, imperceptible as yet, which would modify and perhaps totally prevent such a result.

But that, in the present conditions, such a result is neither remote nor fanciful, has this very year been demonstrated by the formation of a Steel Trust whose authorized capital of a billion dollars embraces no fewer than nine separate Trusts, which have enjoyed monopolies in various districts by the complete absorption of competitive enterprises. The effect of this novel tendency of which the United States Steel Corporation is an example, will be nominally to reduce the number of Trusts, indeed, but, at the same time, to render the greater aggregations of manifold power, and it may be a source of manifold danger to the future of the Commonwealth. Of the one hundred and thirty organizations which to-day are classed as Trusts in America, if the process of amalgamation continues, as it threatens to do, scarce a dozen will exist in as many years; each combination being in control of the entire output of steel, iron, oil, sugar, tobacco, furniture, cottons, woollens, etc., of the country, instead of as now a large State or district.

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The Trust system, which sprang into being early in the seventies," owed its foundation and origin to Mr. J. D. Rockefeller. Yet the consolidation of the oil-refining interests which then took place was probably less the result of machinations and manoeuvring on the part of this capitalist than a natural perception on the part of the well-owners and refiners, of the manifest advantages which would attend such an amalgamation of the new industry which followed the discovery of the western Pennsylvania oil-wells. They would thus be better able to resist the aggression and overcharge of the railway companies, which were doing their best to throttle commerce in that day. By first threatening and afterwards, on numerous occasions, actually fulfilling their threats to build lines of their own for the transportation of their product, the railways were soon brought to terms. The methods subsequently adopted by Mr.

Rockefeller, at the head of the Standard Oil Company, were deep and far-reaching, making competition virtually impossible then, by underselling any rival who had the hardihood to oppose them; and less possible now than ever when the capital of the Trust stands publicly at six hundred millions of dollars. From dealing merely in oil it has branched out in correlative industries, until it now manufactures its own tanks, cases, and cans; besides owning its own railways, steamboats, trucks, and delivery-vans, and directly managing the transportation of its oil on all the railway lines of America.

In addition to all the huge mass of labour and enterprise which is thus centralized in a single group of men-or, more properly, a single man-this Trust has probably not less than twenty millions sterling invested in the manufacture of byproducts and proprietary articles well known to the English as well as the American consumer. It is known to possess some fifty millions sterling invested in railway securities, banking deposits, and other forms of active capital. The power which the Standard Oil Trust wields, industrial, financial, political, in America, is one of the most astounding features of transatlantic social and political econony. The head of this Trust is, beyond dispute, the richest individual in the world, boasting an annual income of certainly not less than five millions sterling.

As for the Steel Trust, with its capital stock of $850,000,000 and a bonded indebtedness of $304,000,000, it stands nominally as the superior of the Standard Oil Company, and perhaps really is so. The leading spirit and organizer of this gigantic combination of the steel interests is Mr. J. Pierpont Morgan, the New York financier, for whose services in connection therewith he has received three millions sterling in shares. That these services have not been overpaid, if one chooses to regard the transaction from the standpoint of a director of this Trust, may be judged by the moral and financial responsibility entailed upon Mr. Morgan during the critical moment when the Trust was in process of formation. The stock of the various steel companies had not been all acquired and might without warning be converted into a weapon to lower the market value of

the acquired stock, and so ruin the promoter of the Trust. But the great power in the money market which Mr. Morgan has for some years possessed, enabled him to carry out the deal successfully; and the sum of twenty million dollars which he had on deposit effectually frustrated the attempts of rival financiers to thwart the Trust.

The presidency of the consolidation falls to Mr. C. M. Schwab, who has succeeded Mr. Carnegie in the Steel Company bearing the latter's name. It would be difficult to quote a more striking instance of the rewards which good fortune, accompanied by shrewdness and ability, often receive in America than Mr. Carnegie's, unless it were that of his former employee, Mr. Schwab. This new Trust magnate was born and bred in an obscure Pennsylvanian town, and beginning as a wage-earner at the age of fifteen, was given employment in the Carnegie works in 1880. As an engineer he exhibited such intelligence and skill as to earn Mr. Carnegie's approval and his promotion to the post of chief engineer seven years later. In the mean time Mr. Schwab had directed his attention to the study of metallurgy and chemistry, and was soon able to introduce several improvements in the manufacture of steel plates. At the age of thirty-seven, or less than six years ago, he was appointed to the chief control of the Carnegie Company at a salary of twenty thousand pounds sterling, with forty thousand workmen under his command. By the retirement of Mr. Carnegie and the formation of the new Trust, he acquires fifteen million dollars worth of stock and the presidency of a combination employing not less than half a million of men and over two hundred millions sterling of capital.

At the head of the Sugar Trust stands a well-known figure in Mr. H. O. Havemeyer, President of the American Sugarrefining Company. It is this vast concern which, controlling the gross output of refined sugar in the country, and regulating the quality and price to the consumer, is prominent amongst those Trusts persistently denounced as most inimical and even dangerous to the interests of the community. The Trust was formed several years ago by its present head and his brother, the late Theodore Havemeyer; all its refineries are under the