Diplomacy of the old school, which flourished in the Age of Metternich, is steadily losing ground to the modern diplomacy of industry and finance. The International Chamber of Commerce now meeting in Washington is an instrument of the modern type for the manipulation of international matters as powerful as the official channels for foreign affairs. The importance attached to this conference is evidence of the increasing power which business interests wield in the creation of sound international relations.

In the first day of deliberation several interesting facts came to light. President Hoover by his careful evasion of such pertinent questions as the adjustment of the tariff and the settlement of the war debts, questions which are vital in international politics at the present time, put the administration in a position of little honor. By confining himself to the safety of future disarmament the President showed that he either lacks a clear policy in regard to these other matters or that he refuses to bring the United States into any debate where by she mizat be forced to compromise with the real of the world in the interests of the majority. Nevertheless, the point made by Mr. Hoover is a sound one. Until disarmament has the backing of business and finance the decisions of the official conference will probably remain on paper. Once the world can be made to realize that disarmament would put money in its pocket then concerted action will be possible.

Another result of a gathering such as the present one is the revelation to the general public of the extent of international commercial and industrial agreements. As M. Jean Parmentier of France pointed out, multi-lateral industrial pacts are the outgrowth of the bilateral entente and may foreshadow an important phase of international diplomacy. These unofficial ties, such as the Franco-German agreement among the electrical construction companies are potential instruments for the keeping of world peace, because peace means prosperity. Their importance must be recognized, particularly by the United States who professing to be international peacemaker steadfastly refuses to join with other countries in practical efforts to that end.