THE impoverished condition of the treasury and the increasing need of financial assistance, which neither the French Government nor the Parisian banks are inclined to provide upon acceptable terms, is clearly indicated by the following fiscal reports:

*These figures for 1908 represent the Colonial Office estimate and not the actual accounts, but they are not likely to be far out.

The still greater frequency of deficits in the insular budget is shown by the following tables relating to the Budget of Guadeloupe:

THE following communication furnished to the Press of Paris, on March 9, 1910, by the French Government completes the tableau of the intolerable conditions prevailing in the French West Indies:

"The Parliamentary Commission which is investigating political and administrative conditions in the West Indian island of Guadeloupe, in connection with the charges of corrupt practices brought against M. Legitimus, the negro deputy from Guadeloupe, whose first appearance in the Chamber of Deputies a few weeks ago created a sensation, has elicited a number of remarkable facts. V. M. L. Ballot, the Governor of the island, who came here to testify, has been relieved of his functions by the Colonial Minister, M. Milliès-La Croix.

"When he appeared before the commission M. Ballot explained that he was not yet able to give full information, but he admitted that the situation was most deplorable, especially with regard to the court. He said the magistrates, enfeebled by the climate, abandoned themselves to reprehensible practices, such

as 'intoxicating themselves with ether and morphine.' M. Ballot promised to take energetic steps to bring about an improvement in the situation."

There were increases in the imports from all the leading countries above except from Italy and Belgium. The increase in imports from the United States was $656,026.83, or 13.1 per cent.; United Kingdom, $404,577.32, or 22.9 per cent.; Germany, $51,394.93, or 5.6 per cent.; France, $10,629.71, or 3.5 per cent.; China and Japan, $49,692.97, or 27.6 per cent.; Spanish America, $34.996.46, or 22.9 per cent.; and Spain, $15,198, or 11.3 per cent. The decrease in imports from Italy amounted to $11,959.88, or 5.7 per cent., and from Belgium, $6,884.32, or 6.3 per cent.

NOTE II

THE following is the complete text of the much discussed treaty with the Republic of Panama under the provisions of which the United States is building the Canal.

TREATY WITH THE REPUBLIC OF PANAMA

The treaty between the United States and the Republic of Panama, under which the construction of the Panama Canal has been made possible, was signed at Washington on November 18, 1903, was ratified by the Republic of Panama on December 2, 1903, and by the United States Senate on February 23, 1904, and reads as follows:

"The United States of America and the Republic of Panama being desirous to insure the construction of a ship canal across the Isthmus of Panama to connect the Atlantic and Pacific oceans, and the Congress of the United States of America having passed an act approved June 28, 1902, in furtherance of that object, by which the President of the United States is authorised to acquire within a reasonable time the control of the necessary territory of the Republic of Colombia, and the sovereignty of such territory being actually vested in the Republic of Panama, the high contracting parties have resolved for that purpose to conclude a convention and have accordingly appointed as their plenipotentiaries,

The President of the United States of America, John Hay, Secretary of State, and

The Government of the Republic of Panama, Philippe Bunau-Varilla, envoy extraordinary and minister plenipotentiary of the Republic of Panama, thereunto specially empowered by said Government, who after communicating with each other their respective full powers, found to be in good and due form, have agreed upon and concluded the following articles:

ARTICLE I

The United States guarantees and will maintain the independence of the Republic of Panama.

ARTICLE II

The Republic of Panama grants to the United States in perpetuity the use, occupation, and control of a zone of land and land under water for the construction, maintenance, operation, sanitation, and protection of said canal of the width of ten miles extending to the distance of five miles on each side of the centre line of the route of the canal to be constructed; the said Zone beginning in the Caribbean Sea three marine miles from mean low-water mark and extending to and across the Isthmus of Panama into the Pacific Ocean to a distance of three marine miles from mean low-water mark, with the proviso that the cities of Panama and Colon and the harbours adjacent to said cities, which are included within the boundaries of the Zone above described, shall not be included within this grant. The Republic of Panama further grants to the United States in perpetuity the use, occupation, and control of any other lands. and waters outside of the Zone above described which may be necessary and convenient for the construction, maintenance, operation, sanitation, and protection of the said canal or of any auxiliary canals or other works necessary and convenient for the construction, maintenance, operation, sanitation, and protection of the said enterprise.

The Republic of Panama further grants in like manner to the United States in perpetuity all islands within the limits of the Zone above described and in addition thereto the group of small islands in the Bay of Panama, named Perico, Naos, Culebra, and Flamenco.

ARTICLE III

The Republic of Panama grants to the United States all the rights, power, and authority within the Zone mentioned and