The law of nations is a system of usages, customs and opinions founded upon the general principles of right and justice as understood in this enlightened age, and which has become established by the great nations of the world. This system regulates the conduct of nations towards each other commercially as well as politically, and is binding upon all by common consent. The great nations of Europe together with the United States, being, as we have reason to believe, the most enlightened and just of the world, as well as the most powerful, have established a code of international law peculiar to themselves. Under this law treaties are made and enforced, commerce between countries is regulated and the rights of citizens abroad are protected.

Treaties are of three kinds, viz., treaties of commerce, treaties of peace, and territorial treaties. Treaties of commerce define and establish the rights and extent of commercial intercourse. Every nation may enter into commercial treaties and grant such special privileges to other nations as it sees proper. It may grant special privileges to one nation over another, or enter into special agreements as in the case of reciprocity treaties. It may even refuse to conduct any intercourse whatever with foreign nations, as was the case when President Jefferson laid the general embargo on trade in 1807, or it may reserve to itself such portions of its trade as it deems proper. An instance of this may be seen in the reservation of the coasting trade of the United States to our own ships. Treaties of peace are made as a result of war. They may provide for the payment of money, as indemnity, the cession of territory or the granting of special privileges, such as coaling stations, etc. Territorial treaties are in effect contracts made between nations for the purchase or sale of domain. Such was our treaty with France for the purchase of Louisiana, with Spain for the purchase of Florida, with Mexico for the Gadsden purchase, and with Russia for the purchase of Alaska.

In order to regulate foreign commerce, carry out the provisions of treaties and protect the rights of citizens abroad each nation exercises jurisdiction over its seamen, vessels and merchandise in foreign lands. This is done through the consular service. In every port of any consequence throughout the world the United States is represented by one or more consular officers. These are divided according to their rank and importance, into Consuls-General, Consuls, Vice-Consuls, Consular Agents and Commercial Agents. They are appointed by the President, and their compensation is fixed in one of three ways, viz.: (1) A fixed salary. (2) A salary with permission to engage in business, and (3) Fees, with permission to engage in business. Those who receive a fixed salary and devote their entire time to the duties of the office, embrace all of those officials who occupy posts in the foreign cities with which the United States has extensive trade relations. In this class of consulates the receipts from fees are paid over to the government. Those consuls who are allowed to engage in business occupy stations where the business of the consulate does not engage their entire time, and those who receive fees and are allowed to engage in business occupy posts in which the duties of the office require but a small part of the agent's time.

Consular Service

The duties of consular officers in foreign ports are numerous and embrace the carrying out of treaty regulations; adjustment in cases of disagreement between master and seamen; salvage in cases or shipwreck; receiving reports of ship-captains on entering and leaving the port; sending to the home government reports on the condition of trade; granting of passports and protection of citizens; care of property of deceased citizens; extradition of fugitive criminals; certification of invoices of goods to be shipped to the United States, etc.

This latter is one of the most common duties of a consul. The invoices of all goods imported into this country must pass through the hands of the American Consul at the port from which they come.* If the goods are to be shipped from an interior town or city they are forwarded with full particulars as to their value, size, number, etc.; to a shipping or forwarding agent in the seaport town who for a small commission attends to the details of shipment. The shipper makes out an invoice, - three copies. These he takes to the office of the consul, and makes oath that the prices, quantities, etc., are absolutely correct. The oath is a precaution against fraud, for otherwise an American importer and foreign merchant might enter into a collusive arrangement for falsifying an invoice and making the price lower than it really was, thus defrauding the Government out of a portion of its revenue. The consul files one copy of the invoice at his office; one copy he sends to the custom house where the goods are to be entered for export and the third is given to the shipper, together with the consul's certificate. The shipper then turns the goods over to the agent of the steamship line, and receives a bill-of-lading also made out in duplicate or triplicate. The shipper keeps one copy of the bill-of-lading, one copy is pinned to the invoice and consular certificate and forwarded to the consignee at the port of destination; and in some instances one copy goes to the ship's captain, as the "Captain's Copy."*

*Likewise the invoices of all goods exported from the United States must pass through the hands of the foreign consul at the port in the United States from which they are shipped.

An important factor in foreign commerce, and one which exporters frequently overlook, is the proper packing of goods for export. This should be governed almost wholly by the conditions to be met with in the country to which the goods are sent. For mountainous countries without good roads, as for example, South America, goods destined for interior towns are transported upon the backs of mules over rocky and tortuous roads, and hence must be packed in boxes or bales that can be readily carried in this manner, one-half the load being upon each side of the animal.

Again the arrival of goods in the rainy season or in the dry season would make a difference as to the method of packing, but as a general rule all merchandise which would be injured by water should be packed in boxes lined with zinc and oilcloth, or waterproof paper, or if packed in bales should be covered with oilcloth or tarpaulin beneath the outer coverings of the bale. As far as practicable only one kind of goods should be packed in a box or bale, otherwise there may be trouble in passing the goods through the foreign custom house.

Houses engaged in foreign commerce use a distinctive mark - a trade-mark, - of such a character or design as to be recognized by the purchasing public in whatever country the goods are offered for sale, as the mark of the American manufacturer or exporter. We are told that the "Mt. Vernon" brand of flour made by George Washington was accepted abroad as of especial excellence, and the same would be true to-day in regard to the value of a special name or mark. Foreigners are often unable to discriminate or judge of the merits of foreign manufactures, and knowing that a certain brand has been tried and found satisfactory, they continue to purchase it. The United States has entered into agreements with nearly all of the leading commercial nations with regard to the protection of trade-marks, but in order to secure this protection the trade-mark must be registered. Mere use, however long continued, does not, as in this country, determine the right to the exclusive use of the mark.

*When a bill-of-lading is made out to order it is transferable by endorsement the same as inland bills. The bill has printed across its face "Original," "Duplicate" or "Triplicate," one of which being honored by delivery of the goods, the other two become void.

Trade Marks

Packing Goods

An important element in foreign trade operations is the banking feature. As previously explained, one of the important functions of banks is to supply the necessary capital to bridge over the interval of time between producer and consumer. This in the case of foreign trade is necessarily considerable, since the producer or manufacturer is situated perhaps thousands of miles from the consumer, and weeks or even months are required before the products reach their destination and are paid for. When goods are shipped to a foreign customer in many cases no drafts are drawn, the amount being simply charged in account to await remittance by bank draft through due course of mail. In other cases documentary drafts are drawn for the shipment C. I. F.* and forwarded through the bank. Such drafts are usually payable at sight or a given number of days after sight and the shipping documents attached are to be surrendered on payment. If the draft has considerable time to run it is generally discounted with a home banker.

Drafts drawn against foreign shipments are usually made payable in the currency of the country in which they are to be paid. Thus a shipment to Germany is payable in marks, to Mexico in pesos, etc. The seller takes the risk of fluctuations in exchange,

*C. I. F. means cost, insurance and freight.

The shipping documents here referred to consist of invoice, bill-of-lading and insurance certificate.

Banking Feature and this is one of the disadvantages in selling to customers the rate of exchange in whose country is not uniform.

The bank forwards the draft with documents attached to a bank at the place where it is payable. The bank there presents the draft tor payment or acceptance. If a time draft, the goods are usually landed and warehoused by the bank, until the draft is paid. In case the consignee desires to withdraw a portion of the goods from the warehouse he may arrange with the bank to do so by paying a portion of the draft, the amount being endorsed thereon. At maturity the draft is paid plus interest from its date until the approximate time it will require a remittance to reach the point of shipment in the United States, and also plus the storage charges. The bill-of-lading and insurance certificate are delivered to the drawer when the draft is paid.

Within twenty-four hours after a ship touches a dock in any port of the United States the captain or a duly authorized officer must hand in to the Custom House the "Ship's Report." No goods can be landed nor even bulk broken until this formality is complied with.* This report is a document in prescribed form giving the name and tonnage of the vessel, name of the captain, number of the crew, port from whence arrived, and a full and complete detailed list of the entire cargo, the number of boxes, bales, barrels or casks and their contents so far as is known, the names of the shippers and the consignees. This report is made out in duplicate. One copy is retained in the Custom House and the other is sent to an officer at the dock where the ship is to unload, who checks off the goods as they are discharged from the vessel. The goods are now delivered to holders of bills of lading, upon payment of the freight and duties or other charges, or if not called for at once, are sent to bonded warehouses.

*This report is usually given to the custom house officer who comes aboard, in many cases with the health officer.