pean rivals in the European markets, it was because the facilities of trade were easier with Europe than with South America. It was clear that as soon as some check should come to the first irresistible American commercial attack upon Europe, as soon as a better steamship service should be developed between the United States and South American. ports, as soon, perchance, as the great dream of a Pan-American railroad should be near realization, the United States, other conditions being equal, would take to itself the South American trade now so carefully exploited by Europe.

II

The South Carolina Interstate and West Indian Exposition opened at Charleston in December and continued after the close of the year. Like its more elaborate and more ambitious predecessor at Buffalo, it pictured the possibilities of the countries to the south of the United States, though it dealt primarily with the United States and the West Indies. It was situated about two and one-half miles from the business center of Charleston, and the grounds extended for two thousand feet along the Cooper and Ashley rivers, amid beautiful natural surroundings. From the prevailing color tone this Exposition came to be called "The Ivory City." Its buildings, like those of the Pan-American Exposition, followed the architecture of the Spanish Renaissance.

III

The international exposition which continued from May to November, 1901, at Glasgow, Scotland, was very largely industrial in its character, though the varied development of Scotland in other branches of human activity was admirably set forth. The site, in Kelvingrove Park, was just about as extensive as that of the Pan-American Exposition. The money outlay, however, was less than at Buffalo. Aside from the local displays, the Glasgow Exposition was most interesting for the large and attractive Russian exhibit, which occupied four-sevenths of the total space allotted to foreign nations. M. de Witte, Russian Minister of Finance, had announced the Czar's wish that the participation of Russia in the Glasgow Exposition will be a new step toward the establishment and consolidation of the amicable relations which are so important for both countries." So the Russian. Government granted $150,000 for the erection of suitable pavilions, which were put up by Russian workmen, sent from St. Petersburg for

the purpose. After the Russian pavilions the Canadian building was regarded as the most striking. The United States had no separate section, but there were many American exhibits in the machinery hall.

Among the many smaller expositions of the year, there was one in the Azores, Portugal's Atlantic Islands, eight hundred miles due west from the Portuguese mainland. In July the King and Queen of Portugal inaugurated the exposition in person, at Ponta Delgada, the principal town of the Azores.

Europe Resents the American Invasion

While the United States was stepping to the front of the ranks of industrial and commercial nations, Europe was far from blind to the situation. England realized that her leadership was being taken from her. It was not so much that she had lagged in the march as that she had been caught and passed by the unexpected spurt of a wide-awake younger nation. Germany, too, was forging ahead at a rapid pace, leading the continental countries and threatening to seize those shreds of British supremacy that were escaping the clutch of the United States. Even Italy was bearing the burden of her heavy debt with greater ease, under the tutelage of a sane and progressive young monarch; and Russia, at the behest of a far-seeing minister of finance, M. de Witte, was working out broad plans to relieve agricultural depression and to develop industrialism which in time might bring to the Czar's dominion the capital that was so greatly needed.

After the first shock of the "American invasion " Europe began to search for means to stem the tide that was advancing from the West. Several years back in the nineties Count Goluchowski, Premier of Austria-Hungary, had foreseen the coming outburst of American. energy and had called for an anti-American coalition of the European Powers. By the first year of the new Century other publicists were voicing the alarm. Paul Leroy-Beaulieu, the French economist, expressed the current feeling in a letter to the Vienna Tageblatt. "The United States," he said, "is on the point of becoming the most important economic factor in the world. It may henceforth be regarded as the first industrial nation, and its superiority will become more strikingly evident year by year. Moreover, it will soon have a considerable mercantile marine." He then advocated the formation of an alliance