In foreign policy, the principal measure of General Grant's administration was the treaty with Great Britain of May, 1871. The specific and leading purpose of the negotiations was the adjustment of the claim made by the United States that Great Britain was liable in damages for the destruction of American vessels, and the consequent loss of commercial power and prestige, by the depredations of Confederate cruisers that were fitted out or had obtained supplies in British ports. Neither the treaty of peace of 1783, nor the subsequent treaties with Great Britain, made a full and final settlement of the fishery question or of our northern boundary-line at its junction with the Pacific Ocean. These outlying questions were considered in the negotiations, and they were adjusted by the terms of the treaty. The jurisdiction of the island of San Juan on the Pacific coast, then in controversy, was referred to the Emperor of Germany as arbitrator, with full and final power in the premises. By his award the claim of the United States was sustained. The fishery question was referred to arbitrators, but it was a misfortune that the award was not satisfactory to the United States, and the dispute is reopened with capacity to vex the two governments for an indefinite period of time. The claims against Great Britain growing out of the operations of the Confederate cruisers, known as the Alabama claims, were referred to arbitrators, by whose award the Government of the United States received the sum of $15,500,000. But the value of the treaty of 1871 was not in the award made. The people of the United States were embittered against the Government of Great Britain, and had General Grant chosen to seek redress by arms he would have been sustained throughout the North with substantial unanimity. But General Grant was destitute of the war spirit, and he chose to exhaust all the powers of negotiation before he would advise a resort to force. A passage in his inaugural address may have had an influence upon the policy of the British Government: "In regard to foreign policy, I would deal with nations as equitable law requires individuals to deal with each other. . . . I would respect the rights of all nations, demanding equal respect for our own. _If others depart from this rule in their dealings with us, we may be compelled to follow their precedent."_ The reference of the question at issue to the tribunal at Geneva was a conspicuous instance of the adjustment of a grave international dispute by peaceful methods. By the sixth article of the treaty of 1871, three new rules were made for the government of neutral nations. These rules are binding upon the United States and Great Britain, and the contracting parties agreed to bring them to the knowledge of other maritime powers, and to invite such powers to accede to the rules.