The entry of Latin America into the community of nations is one of the most important facts in the history of civilization. It resulted not only in widening the field occupied by International Law but also in radically modifying its character. Although the Latin States of America inherited the civilization of the peoples of Europe, they developed along different lines. In number, and in the fact of their common origin they were like the members of one large family who had been suddenly and almost simultaneously called into independent life.

This combination of circumstances caused these nations, upon their appearance in the general society of states, to exclude from their constitutions the principles of European public law which did not harmonize with the special character of their organization; and to reject, in their foreign relations, those principles and practices that were incompatible with their independent position or that did not favor their special conditions of development.

The question whether or not the United States Government should construct fortifications commanding the entrances to the Panama Canal is one that must be determined by law or public policy. The law is set forth in the Hay-Pauncefote Treaty, and while this does not in terms forbid the construction of fortifications, nevertheless, the principle of neutralization which is established by that treaty imposes on us certain obligations, and if those obligations set a bar to their construction we are morally bound to abstain from constructing them. If the treaty imposes no such obligation, then the question should be determined by policy. Which is the better policy, to construct them or not to construct them?

The phrase “ most-favored-nation ” first appeared in commercial treaties toward the close of the seventeenth century. The clause in which it was used had been invented earlier in the century to meet the exigencies of that great commercial expansion which had followed upon the restless activities of the fifteenth and sixteenth centuries. The growth of international trade in the eighteenth century called for the multiplication of commercial treaties, and with the treaties the necessity for using the new clause increased.

After the American revolution, a series of treaties were made in which the clause was given an expanded and modified form. Henceforth there appear both the unqualified and the qualified forms. During the nineteenth century, while international trade became world commerce, commercial treaties became so common that they now bind the trading nations in a fine-meshed web. In these treaties the clause of the most-favored-nation was inserted with so few exceptions as to warrant its characterization as the “ corner-stone of all modern commercial treaties.”