The first article of the American treaty with China, June 18, 1858, reads:

In his last annual message President Taft thus described the diplomacy of his administration: “ The diplomacy of the present administration has sought to respond to modern ideas of commercial intercourse. This policy has been characterized as substituting dollars for bullets… It is an effort frankly directed to the increase of American trade upon the axiomatic principle that the Government of the United States shall extend all proper support to every legitimate and beneficial American enterprise abroad.”

The most important single step taken by the western powers in protecting their nationals in China was the acquisition of extraterritoriality. This withdrew them from the jurisdiction of Chinese law and placed them under the laws and tribunals of the home country. As there is at the present time a great deal of discussion as to whether these rights should be withdrawn it may be worth while to glance for a moment at the reasons for the origin of the system, and this may in turn enable us to judge better whether the conditions which gave rise to it have as yet passed away.