This treaty illustrated the general scope and purpose of such compacts between nations for reciprocal treatment of commerce and naviga tion. Local laws, habits and conditions require variations In form, and national policies deter mine how far such engagements may be ex tended to the colonies of a nation, or what ports may be closed to all foreign commerce.
Open Ports.— The United States, by an act of Congress approved 24 May 1828 opened all ports of this .country to the vessels of all nations on the same terms as our own vessels in return for reciprocal treatment, without dis crimination as to the nature of the merchandise carried or the ports where laden. In general, throughout the world, ports that are open to foreign commerce are open to all foreign nations on equal terms.
Retaliation and Embargo.—The application of the principle of retaliation and embargo has in recent years been generally recognized to be detrimental to expansion of commerce and un profitable to the nation applying it. Any de parture from the most favored nation principle reciprocally applied meets with disfavor among nations engaged in commerce. Attempts by vt.rious nations to apply such discriminations, for profit or in resentment, have not been bene ficial to their own commerce.
Treaty Tariffs.— Reciprocal benefits from reductions in tariff dues are resorted to for the encouragement of better commercial relations between rival nations, but customarily the most favored nation principle is observed, at least in theory. Reciprocal tariff treaties with South and Central American republics by the United States under the provisions of the McKinley tariff act failed of ratification. Similar treaties made with leading foreign countries under a provision of the tariff act of 1897 were termi nated on account of the constitutional objection to tariff regulations not approved by legislative enactment, and in the place of these the maxi mum and minimum system adopted by the tariff act of 1909 was applied to our commercial rela tions. This act provided that the minimum rates (a reduction of 25 per cent) might be collected from countries which do not unduly discriminate against the United States, the higher rates to apply to all others. President Taft proclaimed
the lower rates to all countries, after the ad justment of some differences with Germany and France (1910). France and Germany also have the maximum and minimum system, under which (in their practice) discriminations occur.
The Open Door.— At the instance of the United States in 1899-1905, agreements were entered into between the United States and France, Germany, Great Britain, Italy, Japan and Russia, extending the enjoyment of perfect equality of treatment for their commerce and navigation within the "spheres of influence* over which any should exercise control in China, the most favored nation provision being the ruling principle.
The treaty between Great Britain and Japan (1905) provided for °The preservation of the common interests of all Powers in China, by insuring the independence and integrity of the Chinese Empire and the principle of equal opportunity for the commerce and industry of all nations in China.* It also recognized the paramount right of Japan to take measures of guidance and control over Korea, °providing always that such measures are not contrary to the principle of equal opportunity for the com merce and industries of all nations.' Special Features of United States Treaties. — By notice of the United States, the °most favored nation' clause in the (1850) treaty with Switzerland was °arrested" in 1899, together with some other articles, the general features of the treaty remaining in force.
The Argentine treaty (1853) provides that in case of war between the two countries, the citizens of either of them residing in the terri tory of the other shall have the privilege of remaining and continuing their trade or occu pation therein without any manner of inter ruption so long as they behave peaceably and commit no offense against the law ; and their effects and property, whether entrusted to in dividuals or to the state, shall not be liable to seizure or sequestration, or any other demands than those which may be made upon the like effects or property belonging to the native inhabitants of the state in which such citizens may reside. Provision is made also for religious liberty and the right of burial in grounds owned by aliens.