anada that it ran north
of these islands. Lord Alverstone, after joining in a judgment with
the Canadian commissioners that it ran north, suddenly, without any
conference with them, and, as the wording of the award showed, by
agreement with the United States representatives, announced that it ran
where no one had ever suggested it could run, north of two and south
of two, thus dividing the land in dispute. The islands were of little
importance even strategically, but the incontrovertible evidence that
instead of a judicial finding a political compromise had been effected
was held of much importance. After a time the storm died down, but it
revealed one unmistakable fact: Canadian nationalism was growing fully
as fast as Canadian imperialism.

The relations between Canada and the United States now came to show the
effect of increasingly close business connections. The northward trek
of tens of thousands of American farmers was under way. United States
capitalists began to invest heavily in farm and timber lands.
Factory after factory opened a Canadian branch. Ten years later these
investments exceeded six hundred millions. In the West, James J. Hill
was planning the expansion of the Great Northern system throughout the
prairie provinces and was securing an interest in the great Crow's Nest
Pass coal fields. Tourist travel multiplied. The two peoples came
to know each other better than ever before, and with knowledge many
prejudices and misunderstandings vanished. Canada's growing prosperity
did not merely bring greater individual intercourse; it made the United
States as a whole less patronizing in its dealings with its neighbor and
Canada less querulous and thin-skinned.

In this more favorable temper many old issues were cleared off the
slate. The northeastern fisheries question, revived by a conflict
between Newfoundland and the United States as to treaty privileges,
was referred to the Hague Court in 1909. The verdict of the arbitrators
recognized a measure of right in the contentions of both sides. A
detailed settlement was prescribed which was accepted without demur in
the United States, Newfoundland, and Canada alike. Pelagic sealing
in the North Pacific was barred in 1911 by an international agreement
between the United States, Great Britain, Japan, and Russia. Less
success attended the attempt to arrange joint action to regulate and
conserve the fisheries of the Great Lakes and the salmon fisheries of
the Paci