Full text of Papers of Benjamin Strong, Jr. : Correspondence with Associations : Regarding the American Truth Society, 1915

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RITZ-CARLTON HOTEL.

New York, March 6th, 1915.

Dear Sir:-

In view of the English attempt of placing
loans and treasury bills in this market, in order to
supply her and her Allies with financial means, I beg
to recommend the enclosed speech of the English Chancellor of the Exchequer of February 15th, as given by
the London Times of February 16th to your special
attention.

Yours very truly,

FROM THE LONDON TIMES, TUESDAY, FEBRUARY 16, 1915.

FINANCE OF THE ALLIES
Mr. Lloyd Geor; [e’s Statement.
The C H A N C E L LO R o f the E X
C H E Q U E R (Mr. L loyd George), w ho
w as then called upon by the Speaker,
said,—I shall do my best to conform to
the announcement o f the Prime Min
ister that the statement I have to make
about the financial conference in Paris
shall be a brief one, but 1 am afraid
my right hon. friend assumed that we
are all endowed with the extraordinary
g ift o f expression which he him self
possesses. (Laughter.) The ai*rangements that w ere made between the
three Ministers for recommendation to
their respective governm ents commit
us to heavy engagements, and it is
therefore im portant I should report
them in detail to the House and find
som e reason w hy w e should undertake
such liabilities.
This is the m ost expensive w ar w hich
has ever been w aged both in material,
in men, and in money. The conference
in Paris w as m ostly concerned with
money. For the year ending D ecem ber
31 next the aggregate expenditure o f
the Allies w ill not be far short o f
£2,000,000,000. The British Empire will
be spending considerably m ore than
either o f our tw o great A llies—prob
ably up to 100 to 150 millions more
than the highest figure to be' spent by
the other tw o great Allies. (Footnote 1)
W e have created a new A rm y: w e have
to maintain a huge Navy. W e are pay
ing liberal separation allowances. W e
have to bring troops from the ends of
the earth; w e have to w age war not
merely in Europe but in Asia, in North,
East, and South A frica. 1 must say
ju st a few w ords as to the relative po
sition o f the three great countries
w hich led us to make the arrangements
on financial matters w hich w e recom
mend to our respective Governments.
Britain and France are tw o o f the rich
est countries in the world. In fact,
they are the great bankers o f the world.
W e could pay for our hnge expendi
ture on the w ar for five years, allow
ing a substantial sum for depreciation,
out o f the proceeds o f our invest
m ents abroad.
(Footnote 2i France
could carry ou the w ar for tw o or
three (Footnote 3) years at least out
o f the proceeds o f her investments
abroad, and both countries w ould.stili
have som ething to spare to advance to
their Allies. This is a most important
consideration, fo r at the present mo
ment the Allies are fighting the whole
o f the mobilized strength o f Germany,
w ith perhaps less than one-third of
their own strength. The problem of
the w ar to the Allies is to bring the re
maining two-thirds o f their resources
and strength into the fighting line at
the earliest possible moment. This is
largely, though by no means entirely, a
question o f finance.
RUSSIA.
Russia is in a different position
from either* Britain or France. She
is a prodigiously rich country in nat
ural resources—about the richest coun
try in the wortd in natural resources.
(Footnote 4) Food, raw material—she
produces practically every commodity.
She has a great and grow ing popula
tion, a virile and industrious ix-ople.
Her resources are overflowing, and she
has labour to develop them in abun
dance. By a strok eof the pen Russia has
since the war began enorm ously Increas
ed her resources by suppressing the sale
o f all alcoholic liquors. (Cheers.) (Foot
note 5) It can hardly be realized that by
that means alone she has increased the
productivity o f her labour by something
between 30 and 50 per cent., ju st as if
she had added millions, o f labourers to
the labour reserves o f Russia w ithout
even increasing the expense o f main
taining them, and whatever the devas
tation o f the country may be Russia
has more than anticipated its wastage
by that great act o f national heroism
and sacrifice. (Cheers.) The great d if
ficulty with Russia is that, although
she has great natural resources, she
has not yet been able to com m and the
capital within her ow n dom inions to
develop those resources even during
the times o f peace. In time o f w ar she
has additional difficulties. She cannot
sell her commodities for several rea
sons. One is that a good deal o f what
she depends upon for raising capital
abroad w ill be absorbed by the exigen
cies o f the war in her ow n country.
Beyond that the yield o f her minerals
w ill not be quite as great, because the
labour w ill bo absorbed in her armies.
There is not the same access to her
markets. She has difficulty in export
ing her goods, and in addition to that
her purchases abroad are enormously
increased in consequence o f the war.
Russia therefore has special difficulty
in the matter o f financing outside pur
chases for the war. Those are some of
the difficulties with w hich w e w ere
confronted.
FRAN CE.
France has also special difficulties. I
am not sure that w e quite realize the
stra in .p u t upou that gallant country
(cheers) up to the present moment. F or
the m om ent she bears fa r and aw ay
the greatest strain o f the w ar in pro
portion to her resources. She has the

largest proportion o f her men under
arms. The enemy are in occupation o f
parts o f her richest territory. They are
within 55 miles o f her capital, exactly
as if w e had a huge German army at
Oxford. (Footnote 0) It is only a few
months since the bankers o f Paris could
hear the sound o f the enemy’s guns
from their counting-houses, and they
can hear the same sound now, som e of
them, from their country-houses. In
those circumstances the money mar
kets o f a country are not at their very
best. That has been one o f the diffi
culties with which France has been
confronted in raising vast sums of
money to carry on-the war and helping
to finance the Allied States.
There is a w onderful confidence, not
withstanding these facts, possessing
the w hole nation. (Cheers.) Nothing
strikes the visitor to Paris more than
that. There is a calm, a serene confi
dence which is supposed to be incom
patible with the temperament^-of the
Celt by those i who do not know it.
(Laughter.) There is a general assur
ance that the Germans have lost their
tide, and that now the German armies
have as remote a chance o f crushing
France as they have o f over-running
the planet Mars. (Cheers.) That is the
feeling which pervades every class o f
the community, and that is reflected in
the money market there. The difficul
ties o f France in that respect are pass
ing away, and the arrangement that
has now been made in France for the
purpose o f raising sums o f money to
promote their military purposes will, I
have not the faintest doubt, be crowned
with the completest success. (Cheers.)
T H E SM ALL STATES.
But we have a number o f small
States which are compelled to look to
the greater countries in alliance for
financial support. There is Belgium,
which until recently was a very rich
country. d:-.astated. desolate, and al
most entirely in the hands o f the en
emy. with an arm y and a civil govern
ment to maintain but with no revenue.
W e have to see that she does not suffer
(cheers) until the period o f restora
tion comes to her. and compensation.
(Cheers.) Then there is Serbia, with
the population o f Ireland—a people o f
peasants maintaining an army o f 500.000 and fighting her third great war
within tw o years, and fighting that
with great resource, great courage, and
bravery. (Cheers.) But she has no re
serve o f wealth, and now no exports
with which she can purchase muni
tions o f war outside, and she has hard
ly any manufactures o f her own. That
is the position as far as the smaller
States are' concerned.
(Footnote 7) There are algo other
States preparing for war, and it is ob
viously our interest that they should
be well equipped fo r that task. They
can only borrow in the French and
English markets.
G R E A T B R ITA IN .
But w e had our ow n special difficul
ties, and I think I ought to mention
those. Two-thirds o f our food supplies
are purchased abroad. The enormous
quantities o f raw materials fo r our
manufactures and our industries are
largely absorbed in w ar equipment,
and our ships in w ar transport. W e
cannot pay as usual in exports,
freights, and services; our savings for
the moment are not w hat they would
be in the case o f peace. W e cannot
therefore pay for our imports in that
way. W e have to purchase abroad. W e
have to increase our purchases abroad
for war purposes. In addition to that
w e have to create enormous credits to
enable other countries to do the same
thing. The balance is therefore heav
ily against us for the first time. There
is no danger, but iu a conference o f the
kind w e had at Paris I could not over
look the fa ct that it w as necessary for
us to exercise great vigilance iu regard
to our gold.
T H E PRO BLEM F O R T H E A LLIES.
These were the complex problems w e
had to discuss and adjust, and we had
to determine how w e could m ost e f
fectually mobilize the financial re
sources o f the Allies so as to be o f the
greatest help to the common cause. For
the moment undoubtedly ours is still
the best market iu the world. An alli
ance in a great w ar to be effective
needs that each country must bring all
its resources, w hatever they are, into
the comtnua stock. An alliance for war
cannot be conducted ou limited liabil
ity principles. I f one country in the al
liance has more trained and armed
men ready with guns, rifles, and am
munition than another, site must bring
them all up against the com m on en
emy, without regard to the fact that
the others cannot for the moment make
a similar contribution. But it is equally
true that the same principle applies to
the country with the larger Navy, or
the country with the greater resources
iu capital and credit. They must be
made available to the utmost for the
purposes o f the alliance, whether the
other countries make a similar contri
bution or not. That is the principle
upon which the conference determined

to recom mend to their respective G ov SA FE G U A R D IN G T H E GOLD R E
ernments a mobilization o f our finan
SERVE.
cial resources for the war.
N ow w e have to consider the position
o f this country w ith regard to the. pos
JO IN T LOANS: A N E X C E PTIO N .
The first practical suggestion w e had sibility o f our gold flitting in the event
to consider w as the suggestion that has of very great credits being established
been debated very considerably in the in this country. The position o f the
Press—the suggestion o f a joint loan. three great allied countries as to gold
W e discussed that v ery fully and w e is exceptionally strong. Russia and
cam e to the conclusion that it w as the France have accum ulated great re
very w orst w ay o f utilizing our re serves w hich have been barely touched
sources. It would have frightened ev so far during the w ar—I do not think
ery Bourse and attracted none. It the French reserve has been touched at
would have made the worst o f every all, or has been used in the slightest
national credit and the best o f none. degree, and I think as far as the Rus
W ould the interest paid have been the sian reserve is concerned it has only
interest upon w hich w e could raise been reduced by the transfer o f £8,000,money, the rate at w hich France could 000 o f gold from Russia to this coun
have raised money, or the rate at which try. Our accumulation o f gold is larger
Russia could raise m oney? If w e paid than it has ever been in the history o f
a high rate o f interest w e could never this country. It has increased enor
raise more money at low rates. I f in mously since the com m encem ent o f the
stead o f raising £350,000,000 a few war. • (Footnote 10) It is not nearly as
weeks ago for our ow n purposes we large as that o f Russia, Friyice. or Ger
had floated a great join t loan o f £1,000,- many, but it must be borne in mind
000,000, the House can very well im that there is this distinction in our
agine w hat the result would have been. favor; up to the present w e have had
no considerable paper currency, and
W e decided after a good deal o f discus
sion and reflection that each country this is the great free market for the
should raise money for its own needs gold o f the world. The quantity im
within its own markets in so far as ported every year of, wrhat shall I call
it, raw gold, com es to something like
their conditions allow ed, but that if
help were needed by any country for £50,000,000, and here I am excluding
w hat com es here by exchanges. The
outside purchases then those who could
collapse o f the rebellion in South A f
best afford to render assistance for the
rica assures us o f a large and steady
time being should do so.
supply from that country, and there
There w as only one exception which
fore there is no real need for any ap
we decided to recommend, and that
prehension.
was in the case o f borrowings by small
(Footnote 11) But still it would not
States. W e decided that each o f the
have been prudent fo r us to have over
great allied countries should contribute
looked certain possibilities. I have al
a portion o f every loan made to the
ready pointed out some o f them—the
small States who w e r e either in with
diminution o f exports, the increase o f
us now. or prepared to com e in later
our imports, the absorption o f our trans
on. that the responsibility should be
ports for w ar purposes, large credits es
divided between the three countries,
tablished fo r our ow n and other coun
and that at an opportune m om ent a
tries, and a diminution in our savings
joint loan should be floated to cover
for investm ent abroad. There is ju st a
the advances either already made, or to
possibility that this might have the e f
be made, to these countries outside the
fect o f inducing the export of gold to
three great allied countries. That w as
other countries. W e therefore have to
the only exception w e made in respect
husband our gold and take care lest it
o f joint loans. Up to the present very
should take wings and sw arm to any
considerable advances have been made
other hive. W e therefore made ar
by Russia, by France, and by ourselves
rangements at this conference where
to other countries. It is proposed that, if
by, if our stock o f gold were to dim in
there is an opportune moment on the
ish beyond a certain point—that is a
market, these should be consolidated at
fairly high point—the Banks o f France
som e time or other into one loan, that
and Russia should com e to our assist
they should he placed upon .the mar
ance.
kets o f Russia. France, and Great Brit
tain. but that the liability shall be di O TH E R R E SU LTS O F TH E CON
FER E N C E .
vided into three equal parts.
(Footnote 12) W e have also made ar
T H E R E Q U IREM EN TS OF RU SSIA.
rangements whereby France should
W ith regard to Russia, we have al have access to our m arkets forT reasu ry
ready advanced £32,000,000 for pur bills issued in francs. W e have also ini
chases here and elsewhere outside the tiated arrangements w hich w e hope w ill
Russian Empire. Russia has also ship help to restore the exchanges in respect
ped £8,000.000 o f gold to this country, o f bills held iu this country against
so that w e have established credits in Russian merchants, who, ow ing to the
this country for Russia to the extent o f present difficulties o f exchange, cannot
£40,000,000 already. France has also discharge their liabilities in this coun
made advances in respect o f purchases try. They are quite ready and eager to
in that country. (Footnote 8) Russia pay, they have the money to pay, but
estimates that she w ill still require to ow ing to difficulties o f exchange they
establish considerable credits for pur cannot pay .bills ow in g in this country.
chases made outside her ow n country
We therefore propose to aseept Ru§=
between now and the end o f the year.
sian Treasury bills against these bills
I am not sure for the moment that it o f exchange due from Russian mer
w ould be desirable for me to give the chants, Russia collecting the debts in
exact figure; I think it w ould be better roubles in her ow n country and giving
not, because it w ould give an idea o f
us the Treasury bills in exchange. W e
the extent to w hich purchases are to
hope that w ill assist very materially iu
be made outside by Russia. But for
the w orking of the exchanges. It w ill
that purpose she must borrow. The
be very helpful to business between the
amount o f her borrow ing depends upon tw o countries, and incidentally it w ill
w hat Russia can spare o f her produce he very helpful to Russia herself in
to sell in outside markets and also on
raising money in her ow n country fo r
the access to those markets.
the purpose o f financing the war.
(Footnote 0) If Russia is able within
W e also received an understanding
the Course o f the next few weeks or
from the Russian Government in re
few months to export a considerable
turn fo r the advances w hich w e w ere
quantity o f her grain, as 1 hope she
prepared to make, that Russia would
w ill be. as in fa ct w e have made ar
facilitate the export o f Russian prod
rangements that she should (cheers),
uce o f every kind that may be re
then there w ill not be the same need
quired by the Allied countries. This,
to borrow’ fo r purchases either in this
we believe, w ill be one o f the most
country or outside, because she can do
fruitful parts o f the arrangem ent en
her ow n financing to that extent.
tered into. -\n arrangem ent has also
A T W O -P O W E R LOAN.
been made about the purchases by the
The tw o Governm ents decided to Allied countries in the neutral coun
raise the first £50.000,000 in equal sums tries. There was a good deal o f con fu
on the French and British markets re sion. W e w ere all buying in prac
spectively. That w ill satisfy Russian tically the same countries; w e w ere
requirements for a considerable time. buying against each other; w e w ere
As to further advances, the allied coun putting up prices; it ended not merely
tries w ill consider when the time ar in confusion, but I am afraid in a good
rives how the m oney should be raised deal o f extravagance, because w e w ere
according to the position o f the mtmey increasing prices against each other. It
markets at that time. I have said that was very necessary that there should
w e gave a guarantee to Russia that he some w orking arrangement that
she need not hesitate a moment in giv w ould eliminate this element o f com pe
ing her orders for any purchases w hich tition and enable us to co-ordinate, as
are necessary for the w ar on account it were, these orders. There w ill be
o f fear o f experiencing any difficulty in less delay, there w ill be much more e f
the matter o f raising money for pay ficiency, and w e shall avoid a good deal
ments. W e confidently anticipate that o f the extravagance which w as inevi
by the time these first advances will table ow ing to the competition between
have been exhausted the military posi-. the three countries.
I have done my best to summarize
tion will have distinctly improved both
very briefly the arrangements which
in France and in Russia.
I may say that Treasury bills to the have been entered into, and I w ould
extent o f £10,000,000 on the credit o f only like to say this in conclusion. A ft
Russia have been issued within the- er six months o f negotiation by th e '
last few days. A t 12 o ’clock to-day the cable and three days o f conferring fa ce
list closed, and the House will be very to face w e realized that better results
glad to hear that the amount was not were achieved by means o f a fe w hours
merely subscribed but over-subscribed o f businesslike discussion by men an x
by the market, because this country is ious to com e to a w orkable arrange
not quite as accustom ed to Russian se ment than by reams o f correspondence.
curities as France, and therefore it w as Misconceptions and misunderstandings
an experiment. I think it is a very were cleared aw ay in a second w hich
good omen for our relations, not merely otherwise might take weeks to ferm ent
during the war, but for our relations into m ischief, and it was our conclu
with Russia after the war, that the sion that these conferences might w ith
first great loan o f that kind on Rus profit to the cause o f the Allies be ex
sian credit in the market has been tended to other spheres o f cooperation.
(Cheers.)
such a complete success.

(1) E n g lan d ’s sh are w ou ld be" ab ou t asterisk are available—the others having in g the u se o f a lcoh ol am on g the w orkin g
$3,000,000,000 aside from the cred its she is no oth er m arkets than Paris and L ondon Classes their p rod u ctiv e p ow er has in
—and it is qu estion able w h eth er even the creased b y 30 to 50 per cent. Such a state
to fu rn ish fo r R ussia and others.
Italian securities w ou ld be taken b a ck by m ent is p erfectly m eaningless. T he p ro
(2) A cco rd in g to the L on d on Statist,
th at coun try. So F ra n ce could not pay hibition neither p rod u ced the capital n or
1909, the total B ritish fo re ig n investm ents
fro m her foreig n investm ents even fo r the m achinery n or the m arkets fo r using
am oun ted to $13,465,000,000. T w o m onths
the in creased p rod u ctivity , and so no rev
O N E year.
ag o L lo y d G eorg e estim ated “ A m erican
enue can com e from it a t all.
(4)
The figures fro m the R ussian budget
in d ebted n ess" to G reat B ritain to be
( 6) T h e R ussian ra ilw a y s yield, as is
$5,000,000,000. B ut this seem s g ro ssly e x a g are given here fro m the S tatesm an’ s Y ear
show n, 120,000,000 roubles. T he R ussian
g erated . A c co rd in g to the S tatist B ritish B o o k (Ed. 1914):
state debt b e fo re the w ar w as n ea rly
R evenu e, ordin ary:
investm ents abroad in one y e a r am oun t
ed to
I. D irect ta x e s ............... R ou b les 265,000,000 9,000,000,000 roubles (nine thousand m il
$853,000,000, w h e re o f
II. In d irect t a x e s ......................... 709,000,000 lions), w ith interest ch a rg e on sam e 400,$ 63,000,000 in the U nited States.
D uties ................................................ 232.000,000 000,000 (fo u r hundred m illion) roubles a
This figure seem s too low. B ut w h atever M on op olies .................... ..........— 1.069,000,000 year.- A s this debt w as m o stly con tra cted
it is, on ly A m erican securities are a v a il State dom ain s ............................... 1,112,000,000 fo r the purpose o f bu ild in g railw ays, it is
able fo r Mr. L lo y d G eorg e's purpose, no Sales o f d om a in s............................
2,000,000 clea r th at th ey are v ery p oor investm ents.
oth ers having m ark et qu otation s. So even R edem ption o f la n d ......................
1,000,000 It can n ot b e oth erw ise in a cou n try o f
if M r. U o y d G e o rg e ’ s estim ate w as co r M iscellaneous and v a r io u s ........
131,000,000 enorm ous dim ensions, v e r y sparsely set
tled, m ostly a g ricu ltu ral and w ith rail
rect E n g la n d ’ cou ld pay fo r h er w ar e x
penditu re not fo r five—yea. not fo r t w o T ota l o rdin ary r e v e n u e .......... 3,521,000,000 w a y s run by g r a fty state officials.
y ea rs and w ou ld fo r that p u rpose have to
(7) A b ou t ?0 per ce n t o f the F ren ch iron
throw' aw a y ev ery d ollar o f investm ent in E xpen diture ord in ary ................. 3.303,000,000 m ines and 70 per cen t o f its coa l m ines
this cou n try . B u t w ou ld A m e rica be able E x traord in ary ............................... 255,000.000 are in the territory occu p ied b y the G er
and w illin g to take all these securities
m ans.
ba ck , at what price, and with w h at con se
Grand total ....... ...................
3,558,000,000
( 8) M r. L lo y d G eorge has Ita ly and R o u
qu ences fo r her o w n d evelop m en t?
T he in d irect ta x es and state m onopolies m ania in his m ind. H e entirely fo r g e ts to
(3) A lfred N ey m a rck , the well know n include the spirit ta x and m onop oly, with m ention Japan, w h ich has also been
F ren ch statistician , g iv e s the fo llo w in g close to 1,000 000.000 roubles. T h e state d o financed by E ngland.
figures o f F ren ch investm ents a b ro a d :
m ains com p rise th e state railw ays, w ith
(9) T his p arag ra ph m eans th a t R ussia
R u ssia ................................................$2,600,000,000 860,000,000 roubles in com e and an expen d i w ill require, apart fr o m the $200,000,000 that
E g y p t ................................................
800,000.000 ture f o r run ning co st o f the state rail h a v e been so fa r ad v an ced and oth er
T u rk ey .............................................
800,000.000 ways- o f 740.000,000 roubles, so th at the net credits, an enorm ous am oun t w h ich M r.
R ou m an ia and G re e ce ..................
800,000,000 revenue fr o m state ra ilw a y s is 120,000,000 L lo y d G eorg e is A F R A I D to state.
P ortu g a l and S p ain .......................
700,000,000 roubles.
D ed u ctin g fr o m revenue and expen d i
(10) H ere the ch a n cellor o f the e x
B razil, A rgen tin a, M e x ic o ..........
600,000,000
T u n is and F re n ch co lo n ie s ........
600,000,000 tu re th e am oun t earned and expen ded on ch equ er re fe rs to the opening: o f the D a r
state
railw
ays,
it
w
ill
b
e
seen
th
a
t
th
ere
danelles.
T his part o f the p rog ram m eans
A u stria -H u n g a ry .........................
400,000,000
•Italy ................................................
300,000,000 rem ains a net am oun t o f 2,600,000,000 rou a sp eedy b orrow in g o f “ silver bu llets” in
China .................................................
200,000.000 bles, w h e re o f 1,000,000,000. roubles obtain ed the U nited States and then the u se o f the
Serbia ................................................
200,000,000 fr o m th e a lco h ol m on op oly are equ al to R u ssian w h eat supply as a m eans o f b e
’•'United S ta tes................................
200,000,000 n ea rly 40 per cen t o f the total revenue. com in g independent o f A m erican m arkets.
E n g la n d and C an ad a....................
100,000,000 A s th a t m on op oly has been en tirely su p
(11) T h is p arag ra ph is entirely m islead
B elgiu m ...........................................
100.000,000 pressed, th e larg est p a rt o f it m u st b e re ing. I t is tru e that the gold reserve o f
♦Switzerland ...................................
100.000,000 placed. T his can n ot b e done in w a r time. the B a n k o f E n g la n d had increased on
Only the investm ents m arked w ith an
(5) L lo y d G eorge sa y s th at b y proh ibit- F eb. 25 to £64;000;000 as ag ain st £43,000,000

in 1904, bu t th e lean s had increased to
£ 103,(i00,000 as ag ain st £38,000,000. I f g old
w ere used fo r w ar purposes the gold c o v e r
o f the B an k o f E nglan d that stands n ow
at ab ou t 35 per cen t w ould b ecom e entire
ly inadequate and B ritish cu rren cy w ou ld
depreciate. T h e sam e is the case w ith the
B an k o f F ra n ce. T h e gold stock has in
creased du rin g one y ea r ending Feb. 18
about 40,000,000 fra n cs. T h e increase o f
circu la tion b y 5,000,000,000 fra n cs renders
the gold o f the B an k o f F ra n ce ju st as
little av aila ble as that o f the B a n k o f
E ngland. T he gold reserve o f the B an k
o f R u ssia has rem ained station ary, the
note issue has not been m ade public v ery
recently, but w h ile on July 29 there w ere
1,600,000,000 roubles o f gold held again st
the sam e am ount in notes, the n ote issue
had doubled tow ard the end o f D ecem ber,
w hile 40,000,000 roubles o f g old have been
shipped to E ngland.
(12) T his paragraph sh ow s the ten d en cy.
T he silver bullets are to be fu rn ished b y
the U nited States, w h ich could certain ly
em ploy its resou rces to v ery m uch better
purposes. H o w these ad vancem ents se
cured here are ever to be repaid Mr.
L lo y d G eorg e does n ot s a y : he is engaged
in an attem p t to w reck not on ly the E n g
lish financial system , bu t also th at o f the
U nited States.
G erm a n y fights b eca u se she has g o t to
and becau se she is able to w ith her ow n
men an d her ow n resources. E n g lan d
fights w ith oth er cou n tries' lives and tries
to fight, w ith oth er cou n tries’ m oney. A s
given b y John E llis B a rk er in 1911, the
total ta x a b le w ealth o f P ru ssia alon e w'as
larg er than the ta x a b le w ealth o f G reat
Britain.
(13) H e r e the g rea t w ea k n ess is sh ow n
o f the R ussian position . T h e cou n try has
been flooded w ith irred eem able notes, and
the R u ssian e x ch a n g e in fore ig n m ark ets
has g on e d ow n to the enorm ous d iscou n t
o f betw een 30 and 33 per cent.

Wutri ilattimm
NEW AND ABSOLUTELY FIREPROOF

200 et& 5t11 Aut.

Nrui tork
C1/4.%-..

A,,,

\-tA

k1/4ck,,Q,As'

103

INAt,
lvcit

Information was given to Mr. Strong to the effect that
the article circulated by the"Labors National Peace Council" is
being financed by German propoganda.

That the head, of the organ-

ization is an Irishman of disreputable appearance by the name of
Leary, a former I. W. W. agitator.

The office of the Council

is in the same block as that occupied by the publishers of the
"Taterland".

It was stated that 30,000 copies of the article

sent to the Reserve Board were distributed and that within three
weeks, 200,000 copies of an article, more virulent in character
are to be distributed.

VCLI

I have put

financial

editor of Evening Post on that

combination at 1133 Broadway next to building where Dernburg
had propoganda.

They are taking in $60 to $100 a day

in subscriptions

for Truth Society which consists of leather larynx Irishman, a
boy and stenographer.
I think it is combination Irish-German politics for
1916 to make munitions (?) an issue.

They are too small fry for us to notice

"Post",

but it might interest P. 0. authorities.

Please consider this

confidential.

Philadelphia

FROII DEUTSCHE'S JOUREAL

Eau York, September 29, 1915.

PROTEST OF DEPOSITORS

TIEH

ith undefeated perseverence was the campaign of the American
Truth Society against the war loan of the Allies continued.

Yesterday

evening a mass meeting was held in the Amsterdam Opera House,which was

well filled and

which the purposed agitation for blocking the loan

was discussed.
"The opening remarks of yesterday's gathering were made by
.

G. IlcCann, who in clear and concise manner, outlined the order

of procedure and whose remarks were interrupted by hearty applause.
The next speaker,

la..

Bernhard Ridder, continued in humorous

manner that the British, or Isaacs P Company, as Herr Ridder called them,
had been giving a course of instruction in :Lbw York.

they had had of making a gaint loan has

The hope which

come to nothing,since the public,

is far more disposed to keep their pockets closed than to open them for
the Allies.

And in Chicago, whither the finance genii of the Allies

have now partaken'themselves will give them a still less cordial reception.
Finally,

Ridder advised the establishment of a great

GermanAmerican Eational Bank which

should build a might bulwark against

the emrloyment of American money in the interests of the Allies.
,Ifter Pr. Ridder, Pr. Jeremiah O'Leary spoke.
_

This tireless

energetic enemy of England made a long discourse, mixing humor with
pathos in brilliant fashion.

advised that depositors who had deposited over

,000,000

-2-

erican banks had advised him and the American Truth Society that
they fully indorsed the stand of the American Truth Society against the
loan and that they would withdraw their deposits as soon as the banks
participated in the loan.
:Jr. O'Leary then spoke concerning the true reasons which these

traitors of allies had in making this loan attractive to the public.
He criticised also the local newspapers, etc. etc.
Concerning the historical relations between American and
England etc etc.

O'leary said in concluding that it is not now the intention_
of depositors to take their money out of the banks.
had done S* and had lost their interest.

Several depositors

But when it cmMeto the point of

the loan then the names of the banks will be made public and"God help
the banks."

From

DEUTSCHES JOUR:LI.
New York, Sept. 28, 1915.

ashington,
C,, 2ept. 28.- "The Executive Committee of the 3J.iLtialig1
Industrial Peace Conference hes in its report of to-day made the direct accusation
thatLgiMzpoTanksat- whose head are the associates of the firm of J. P. Morgan
& Company had made a deal with aiglaed, France and Russia to bring out a loan of
a billion dollars where by to assure a war contract which will bring them in a
profit of four hundred million dollars.

The Federal Reserve Bonrd will
e directly to blame for keeping out of
this business.
As a moans of making the loan improbable depositors will be advised to dr-w their money out of national banks and deposit it in state banks.

It is a destruction and prevention of the loan, the committee report
says, to make so high e bid while the European govermments through the unwholesome aecumuletion or their war loans, see themselves faced with unavoidable
benkruptcye
P.,enkruptcy,threatens also the institutiom that are connected with
the Federal Reserve System, especially if their total loaneble resources are invested in the loan of the European power.
The Executive Conrdttee whose chairman is the former Congressional rep3ent'ative, Robert Bowler of Illinois, was named et the conv7ntion of the National
etustrial Peace Conference which met in Washington on July 21st.
The representatives and delegates of the labor and agricelturel organizations represented at. the
lference themselves represented five million organized farmers and two and a'helS
Ilion from the labor unions.
The full reckoning the the war continues, says the report, must be borne
the "High lords of the mighty,eriminals"who deliver the money and the war mairials and are those carrying on the war.Associates of the Horgan firm 1,-,ho for years have plundered the people and
have laid away so m ny millions, are now the masters of this conspiracy, who for
their own interests drew the money out of the ifeliexxi bank and the Federal Reserve
System end make advances to England and her -21ies as a promise for the fulfillment of the unholy war contract.
The executive com.ittee of the Peace Conference has, says the report, absolute information in its hands that a two fold agreement exists between each group
of bankers and the Allies and that these financial interest 6 have already drwn
more than 4,500,00G,000 out of the Federal Reserve Banks end, are ranking every effort
to put through a similar deal.
The Federal Reserve Board is directly interested in the plans of these
financial interests.
The Federal Reserve Board, which Morgen domineers, was-orlized by , special order of Congress, especially to break the Morgan Cold Trust.
ertkeless, this same unhealthy power holds a powerful control over the money and
credit of the people which should be protected by the Federal Reserve System. The
election of Benjamin Strong, Jr., the former president of the Bankers TrAst Company
of 7ew York, a subsidiari of the Eokgan Gold Trust, as Goverhor of the New York
Feder-1 Reserve Bank is a glaring example that the Federal Reserve 'System will be
controlled by the Merge' interests.

.A.,/,'ANYJ
1.1140.4.

VIOStIMM IMIARIPAIXIMIVINATAIWAR.W.A,T,44AMM,

q.klig' sk.F

lant.,Ag,/,,,,111,,,SALMIPVII,

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tristaatigit lirtarVITINIWWW4AltrltriAllYaNtaitteNlYettimlYfirtTityiatiAliyinliavIdavidaytteit

ettl.DPASMATAIIMIMPAPV, \TAIMIIMPAM,"

mirriNTWiN),

* The lusitania" Case
1111,1111111X 11111
X

ll
X

Was Bryan's Resignation
Justified?

uJ
IN

X
X
TRUTH

JUSTICE

PEACE

WITH COMPLIMENTS OF

FER DI NAN D HANSEN

TRUSTEE

AMERICAN TRUTH SOCIETY

Ia
I

1133 BROADWAY

.
a
at

HISTORICUS
JUNIOR

NEW YORK

XXIN1111111111111.11I
JUNE, 1915

Published by HUGH H. MASTERSON
170 CHAMBERS STREET

NEW YORK CITY

PREFACE

The privilege to express one's opinion is one of the most important
rights inherent in our free institutions. It involves the sacred Freedom
of the Pressthe Palladium of Liberty. Especially precious is the
exercise of this right, when ignorance, passion or prejudice has seized
upon the customary organs of public opinion. But conditions are the
more deeply to be deplored when the generality of our press has set
itself to the practical suppression or distortion of the arguments favorable
to one side of public issues and to the emphasis and glorification of the
other. Thus we are driven, in a way, to the older methods of pamphleteering, if we would be heard.

Thanks to the innate forces of the

Americanistic principle, inherited from Britainfor many good things
come from there'we still have the right of presenting facts and arguments that may appeal to judgment and reason, in channels other than
the newspaper press.
Copyright by
11 ugh H. Masterson
1915.

It is hoped that due consideration will be given to the important
matters contained in this booklet, and adopted or rejected according to
the effect they may have on the thinking reader. If the views are not
exactly like the matter browned up every day for popular consumption,
that is all the greater incentive why you should apply the acid test of
reason, and try, if possible, to form an opinion of your own.

The immediate issue between the United States and Germany resolves itself into a dialectic discussion of what is meant by the loose
term "Humanity" in its relation to maritime warfare. To the United
States it means a scrupulous regard for the safety of a limited number
of passengers who may have occasion to travel within the war zones of
Europe, while to Germany, it means safety to herself and her allies,
numbering about one hundred and forty millions of people. The United
States contends that non-combatants must be safeguarded irrespective of
the circumstance that the safety of a small number of non-combatants
may be inextricably interwoven with the safe conduct of contraband of
war. To the Teutonic Allies "Humanity" means the preservation of their
lives, the quick and decisive ending of the war and an emphatic reassertion of the doctrine that all nations shall be allowed to make progress
according to their merits and that "world-commerce" shall be free and
untrammelled.

INTRODUCTION

The resignation of Secretary of State Bryan should be
effective in clearing the political atmosphere. His dramatic self-

elimination from the Cabinet will focus public thought upon
the question of peace or war.

The following text of Secretary Bryan's letter of resignation
and of the President's acceptance will indicate the issues before
the American people :

to promote the end which you have in view by means which you do not feel at liberty to use.

In severing the intimate and pleasant relations, which have
existed between us during the past two years, permit me to
acknowledge the profound satisfaction which it has given me to
be associated with you in the important work which has come
before the State Department, and to thank you for the courtesies
extended.

With the heartiest good wishes for your personal welfare and

for the success of your Administration, I am, my dear Mr.
SECRETARY BRYAN TO THE PRESIDENT

President

Very truly yours,

Washington, June 8, 1915.

W. J. BRYAN.

My dear Mr. President :

It is with sincere regret that I have reached the conclusion
I should return to you the commission of Secretary of
State, with which you honored me at the beginning of your
that

Administration.

THE PRESIDENT TO SECRETARY BRYAN

Obedient to your sense of duty and actuated by the highest
motives, you have prepared for transmission to the German
Government a note in which I cannot join without violating what
I deem to be an obligation to my country, and the issue involved

is of such moment that to remain a member of the Cabinet
would be as unfair to you as it would be to the cause which is
nearest my heart, namely, the prevention of war.

I, therefore, respectfully tender my resignation, to take effect
when the note is sent, unless you prefer an earlier hour.
Alike desirous of reaching a peaceful solution of the problems,

arising out of the use of submarines against merchantmen, we
find ourselves differing irreconcilably as to the methods which
should be employed.

It falls to your lot to speak officially for the nation ; I consider

it to be none the less my duty to endeavor as a private citizen

Washington, June 8, 1915.

My dear Mr. Bryan :

I accept your resignation only because you insist upon its
acceptance; and I accept it with much more than deep regret,
with a feeling of personal sorrow.
Our two years of close association have been very delightful
to me. Our judgments have accorded in practically every matter
of official duty and of public policy until now ; your support of
the work and purposes of the Administration has been generous

and loyal beyond praise ; your devotion to the duties of your
great office and your eagerness to take advantage of every great
opportunity for service it offered have been an example to the
rest of us ; you have earned our affectionate admiration and
friendship. Even now we are not separated in the object we seek,
but only in the method by which we seek it.

It is for these reasons my feeling about your retirement from
the Secretaryship of State goes so much deeper than regret. I

The "Lusitania" Case

sincerely deplore it.

NATIONAL MOTIVES IN TREATING
THE "LUSITANIA" QUESTION

Our objects are the same and we ought to pursue them together. I yield to your desire only because I must and wish to

bid you Godspeed in the parting. We shall continue to work
for the same causes even when we do not work in the same way.
With affectionate regard,
Sincerely yours,

WOODROW WILSON.

No lover of America and of the ideals represented in our
institutions, can sympathize with the notion that somehow there
is not war enough on earth, but that America should be dragged
into the cauldron of fire and desblation. We may grope darkly
into war but not with our eyes open.

In these pages our national duties with respect to the "Lusitania" will be considered. I stand upon the broad platform of
national and international justice as the best aid and security for
peace and national welfare.

Mr. Bryan's consistent labors for peace are worthy of all

No nation, that deems itself worthy of respect, can view with
unconcern an assault upon its citizens or its sovereignty. The

United States was clearly within its right in demanding an
explanation of the sinking of the "Lusitania" and in its determination to forestall occasions for a similar frightful catastrophe.

It is an indubitable duty of every nation to protect its subjects
both at home and abroad.
Though this duty is imperative and unquestioned, it does not
by any means exclude the exercise of another high dutythat of

a calm and deliberate consideration of all attending facts and
circumstances, and of according to a fellow sovereign nation a
fair opportunity to be heard.
Our administration, in its endeavor to protect American life
and property in Mexico, has shown a wise statesmanship in considering the circumstances of that country. Our government
gave fair warning to American citizens to get out of the territory

fraught with danger, and then pursued a policy of "watchful
waiting"a policy which has been derided by hot-headed ignorance or cool-headed selfishnessbut which has so far avoided the

praise. In our endeavor to follow Mr. Bryan's reasons for his

loss of thousands of American lives which would have been

resignation and to pass intelligent judgment thereon it will be
proper to go into the "Lusitania" question fully.

sacrificed, in addition to those unhappily gone before, within the
zone of Mexican turmoil and trouble.
We have never had cause to regret peaceful solutions.
When, during the Canadian Rebellion of 1838, England, on
the plea of self-preservation, violated the territory and sovereignty
of the United States, we permitted England to present her side
of the case in her own way and in 1842 the dispute was finally
settled.

The exercise of statesmanlike prudence, which will not precipi-

tate the greater and more stupendous evil of war, in order to

resent a comparatively smaller evil, was evidenced in the case of
the ship "Virginius" when 'Spain seized American citizens thereon
and executed them on the charge that they were aiding the Cuban
Insurrection. Naturally American feeling ran high. But
President Grant held his wits together. He gave Spain a full
opportunity to state her reasons. War was avoided and history
will not impugn either the high, honorable spirit of the United
States, nor the wisdom and courage of President Grant.

In the "Trent" affair war with England was happily avoided.
In the case of the "Lusitania," nothing can be gained by hot spur
"aspirations." The accused nation must have a fair and reasonable opportunity to be heard. That is an elementary principle
of all justice. To assume the role of judge, jury and executioner,
is repugnant to every sense of right and will not be sanctioned-by
that love of law and righteousness which is part of the bone and
sinew of American character.

The judicial atmosphere must be densely fogged where a
defendant is not allowed to demur to an Indictment, nor even
to make his plea ; but is curtly told that he is guiltythat the
only question before the court is what shall be done to the offender.

I frankly avow my belief that all the main premise* of the
American "Lusitania" note are clearly debatable and that it is
.

the part of patriotism to weigh the matter on both sides, in
order that our Republic may be sure it is right before it commits
itself to a definite course of action.

A HASTY THREAT
Believing, as I do, that, under all the circumstances, Germany

has as perfect a right to proclaim a war zone as England had,
and, believing also in the immutable right of self-preservation,
I am constrained to take the position that we were too hasty in
the threat that we would hold Germany to "a strict accountability,'

and I cannot accept the statement, presented in the form of a
postulate, that "the recent acts of the German authorities are
in violation of American rights on the high seas."

TO SAFEGUARD MORE THAN A HUNDRED MILLION
PEOPLE
If it can be demonstrated by the legal authorities hereinafter

THE AMERICAN NOTES
The American notes to Germany on the "war zone" and on

the "Lusitania" questions seem to me to be based upon an
erroneous impression of what are the principles of international

law applicable to the riotous condition that now prevails in
Another criticism, perhaps not very material, is the
categorical form in which the law is laid down to Germany.
Propositions of law and fact are couched in language skilfully

Europe.

phrased to import infallible correctness and unanswerable logic,
which would exclude the possibility of debate or question. But
the form or resoluteness of an assertion cannot save it, if it be
erroneous and have not reason and justice to support . it. The

preliminary answer of Germany indicates a desire not to be
deflected from her purpose to have the discussion of differences
proceed in the usual and proper paths of fact and reason.
Ohl

cited, that the German government acted not only within its
rights and within the rules of international law, but that if it
had acted otherwise, it would have been guilty of a treasonable
disregard of its sacred trust to protect and safeguard more than
a hundred millions of people, it necessarily follows that neither

the rights of the United States nor of its citizens have been
violated.

EVIDENCES OF HUMANITY

It will be unnecessary to dwell upon the fact that in the
large number of instances where the German marine has had
occasion to sink vessels, whether war vessels or otherwise, they
have always saved combatants as well as non-combatants, whenever possible.

The submarines, except when it involved danger to themselves,

not only gave time to lower, boats but frequently took them in
tow and brought them to areas of safety.
When the German auxiliary cruisers took aboard the crews
and passengers of vessels they treated them with kindness and
humanity. This is proof against the theory of barbarism and
cruelty attaching to the general methods of her maritime warfare.
If, therefore, something has happened which would seem to run
counter to the general character of her considerate and humane
practices, we must look for a reason and then consider whether
the reason given is adequate to justify the act.

Even the shallowest mind will be able to grasp the idea that

a people that has been so uniformly careful in saving lives,
whenever possible, will not suddenly turn to barbarism, and without reason, sink passenger vessels holding non-combatants, including women and children, without giving them an opportunity
of escape. The act is so opposed to what any human being, even

when depraved would care to do, that we are put to inquiry as
to the stress of motive and circumstance that would make such
an act seem vital to their own safety.

GERMANY'S ISOLATION AND HER STRUGGLE
AGAINST THE WORLD
This brings us to the point where we must view the situation
as it presents itself to the German authorities. If we do not put

ourselves in their place we will not be able to judge of their
position, and consequently will be unable to think justly and act
wisely.

It will not be denied that the warfare against Germany and
her allies is both military and economic. This seems to be perfectly legitimate warfare. It is intended to isolate Germany so
completely that she will be unable to do any business with neutrals,
thus gradually sapping her financial strength, and by preventing

any access of food-stuffs and war materials, wear out her
lasting power to the point of exhaustion. Germany has reason

to believe that if she is compelled to give up, her conquerors will
practically annihilate her.

That the present world-war is not an ordinary contest to
which we may conceive the general rules of warfare applicable,
but a war to the knife, in which not "subjection" but "extinction"
is the object, may be gleaned from the speech of Winston Spencer
Churchill, First Lord of the Admiralty, (New York Times, Sept.
12, 1915, page 1) in which he portrayed the awful meaning of
this war in the following fateful words :
"IT IS OUR LIFE AGAINST GERMANY'S. UPON THAT THERE
MUST BE NO COMPROMISE OR TRUCE. WE MUST GO FORTH UNFLINCHINGLY TO THE END."

Thus Germany finds herself at bay, with every great power

of Europe arrayed against her and little powers biding their
time, and this not sufficient, the great Republic of the United
States, not officially an enemy, but by declaration a neutral, working with might and main, night and day, utilizing her tremendous
financial, natural and industrial resources, apparently to a single
end, to aid to the utmost in accomplishing the ruin of Germany.

"THOU SHALT NOT KILL"
If we are to consider the question of humanity we must con-

sider not merely humanity in submarine warfare but also
the "humanity" in furnishing the murderous instruments of war.
Let us nof talk of humanity in favor of non-combatants and forget
all humanity in the case of those forced to fight. What humanity
is there in making guns and ammunition to kill? Are we not
deliberately, for purely sordid considerations, violating the mandate : "Thou shalt not kill?" To sell opium or habit-forming
drugs is prohibited because of the public injury resulting ; how
can we absolve ourselves from the sin of murder if we engage
in the traffic of the instruments of murder?

NEGLECT OF NATIONAL DUTY
Some have sought to justify this infamous murder traffic by
a kind of apotheosis to national unpreparedness, suggesting the
necessity for a constant market where the unprepared nations
may be supplied with arms. This makes a virtue of a disregard of national safety and puts a premium on neglect of official
duty. At the present time, it is a mere excuse to permit the
cruelty of a long-drawn-out war, which, if the belligerents had to
depend on their own resources, would be comparatively short and
decisive. The prohibition of the sale of arms during war. would

not only save lives but would at the earliest moment set the

the enemy, but only when suffering is unnecessary to attain that '
object.

If we wish to glorify humanity we cannot do so by furnishing

the means by which the inhumanity is to be maintained. We
must prohibit the sale of the instruments by which the war is
carried on and if anyone tells us that it would be "unneutral" to
stop the war, then let us answer that it is better to be "unneutral"
than to be "inhuman." What moral being that can think straight
would hesitate for a moment in the choice between such, honorable, noble and human "Unneutrality," and the low, miserable
alliance in the "Inhumanity," "that makes countless thousands
mourn."

world at peace and allow belligerents and neutrals to pursue their
normal avocations. This is a consummation in which the whole
world would be benefitted, while the other scheme is cruel, unstatesmanlike, wasteful, and altogether contrafy to the dictates
of humanity and common sense. But, it is claimed, that if there
were no such market for arms, there would be a tremendous pil-

No one can challenge the rectitude of our-ideals. But thz
things we do, are not in accord with the things we preach. We
cry, "Peace ! Peace !" and yet we do the things that prolong war.

ing up of armament, too heavy for nations to bear. My answer
is that war is so mischievous an evil, that any thing that tends to
cut down its duration and to restore processes of peace, must
easily take precedence in a choice of evils.

If we had abstained from these blood-profits, this world-war
would have been over months ago, and for every dollar we make
in this immoral and illegitimate manner we would make hundreds
in an honest and proper way.

A MISCONCEPTION OF THE TERM HUMANITY

NORMAL INDUSTRIES LANGUISH

Field Marshall Prince Schwarzenberg has aptly said : "War
and humanity are two incompatible conceptions." As war is
a contest of force, exemplifying in grossest form" man's inhumanity to man," we must realize the awful chasm between humanity and war. The maiming and butchering of fellow men
cannot be thought of in terms of humanity. Humanity is the
antithesis of war. To speak of "humanity" in the destruction
of humanity is a contradictiona paradox. The only way by
which we can possibly think of both, is by one crowding out the
other.

Certain rules of amenity are observed in war, not with the
idea of preventing the suffering incident to the weakening of

Until our souls have been cleansed from this defilement
let us not utter the holy name of "Humanity."

That our regular and normal industries are famishing is
largely evidenced by the great masses of our unemployed and
particularly by the recession of the business of the U. S. Stei
Co. It appears that only those industries are flourishing which
contribute to the attack and injury of Germany, Austria, Hungary
and Turkey. Not only are these war industries flourishing, but
they are bulging by vast extensions to our armament works and

the creation of new shops and the cbnversion of others as part
of the great symposium of death-dealing industry. Sordid p.lf
for a comparatively few self-seeking and murderous industries
is deemed more important than the true statesmanlike policy of
stopping the war by withholding the means for its continuance,

and thereby allow all our legitimate industries to revive with tremendous impulse and momentum.

FICTITIOUS NEUTRALITY
We must not fool ourselves into the belief that such conduct

as we are exhibiting, will receive the approval of history or
that it is reconcilable with the humanitarian spirit that characterizes our nation as a whole.

I do not blame our people. It is not their fault. It is the
fault of the comparatively few great representatives of the money
power who are ready to make quick money in this peculiar way.

The judgment of history will pierce the veneer of pretence,
and will not be satisfied with the fiction of neutrality. Let us be
honest with ourselves. Let us not put "that flattering unction
to our soul," that our most potential attack on Germany is within
the spirit of either theoretical or practical neutrality.
In living out our fiction of neutrality we are harming countless numbers of our own people, while helping to prolong the
contest with the result of killing and maiming hundreds of thous-

ands of human beings that, but for our interference, would be
alive and well and following peaceful occupations. This we do
in the name of humanity and neutrality, and then we hold up
our hands in holy horror if our misdeeds recoil upon us by reason
of a condition for which we, ourselves, are responsible. All those
men, women and children whom we mourn to-day, would have

been safe, had we given heed to that beautiful impulse of humanity, that most truly national trait of the American character,
that pleaded that this gruesome traffic might come to an end.
But, as frequently happens, the national conscience was stifled
specious reasons were advanced why that which was prohibited

to the government, was fine and worthy, when carried on as
"ordinary commerce." Just as if a thing could be wrong when
done by the government, and right when done by the people of
whom that government is the representative.

A STATE NO WISER THAN THE HUMAN BEINGS OF
WHOM IT CONSISTS
James Bryce in his book, "Neutral Nations and the War," on
page 5, gave voice to the same idea in another form :
"But a State is, after all, only so many individuals organized
under a Government. It is no wiser, no more righteous, than the
human beings of whom it consists, and whom it sets up to govern
it.

"Has the State, then, no morality, no responsibility ?
"If it is right," says Lord Bryce, "for persons united as citizens
into a State to rob and murder for their collective advantage by
their collective power, why should it be wicked for the citizens
as individuals to do so ? Does their moral responsibility cease
when and because they act together? Most legal systems hold
that there are acts which one man may lawfully do which become
unlawful if done by a number of men conspiring together."

A NEUTRAL MAY NOT FURNISH ARMS TO A
BELLIGERENT
I am well aware of Jefferson's dictum that "Our citizens have
been alwaSrs free to make, vend and export arms," (vol. III p.
558) ; but I am also aware that he approved of Paine's proposition of a `,`Maritime Compact for the Protection of Rights and
Commerce of Neutrals," which provided :
"And whereas it is contrary to the moral principles of neutral-

ity and peace, that any neutral nation should furnish to the
belligerent powers, or any of them, the means of carrying on war
against each other ;" the powers will prohibit "the exportation or
transportation of military stores."

TRADE IN ARMS AS ORDINARY COMMERCE
The point is constantly being made that dealing in arms is not
prohibited to a neutral, if done "in the ordinary course of commerce."

Forgetting for the moment that this commerce is per se, im-

moral, we may well ask wether what the United States is
doing is "in the ordinary course of commerce." A single and
wholesouled devotion of almost all our national energies to the
production and transportation of contraband of war is certainly
not what may be termed "ordinary course of commerce," and
when these extraordinary activities result in furnishing one side
with contraband of war, and no effort is effectively made, or
permitted, by which innocent or non-contraband wares may be sent

to the other belligerentsto the great harm of our normal and
legitimate trade and industriesthe situation is certainly anomalous.

The freedom of the sea is hardly to be prized when it

is all freedom for one side, and all foreclosure for the other.

SALE OF ARMS ON A LARGE SCALE
There is a high authority in Bluntschli who holds that when
the sending of arms assumes such large proportions that, under
the circumstances, it may appear to favor one of the belligerents,
it should be prevented by the neutral government.

CONTRABAND OF WAR DEFINED
John Bassett Moore, Proc. Am. Phil. Society, Vol. 51 ( Jan.

March 1912) at page 18 says, "The term contraband of war
denotes commodities which it is unlawful to carry to the country,
or to the military or naval forces of a belligerent." He cites
Kent, Woolsey, Manning, Creasy, Holland and others, showing
the unlawful character of contraband trade.

During our war with Spain, a number of countries prohibited
the furnishing of arms and ammunition of war to either party.
Among these are Brazil, Denmark and Portugal. Japan forbade
its subjects from supplying "arms, ammunitions, or other ma-

GERMANY'S FRIENDSHIP IN CRITICAL TIME.
Germany's attitude during that war is interestingly given by
Ambassador Andrew D. White in his Autobiography, vol. 2,
page 168:

"As to the conduct of Germany during our war with Spain,
while the press, with, two or three exceptions was anything but
friendly . . . the course of the Imperial Government especially
of the Foreign Office under Count von Billow and Baron von
Richthofen, was all that could be desired. Indeed, they went so
far on one occasion as almost to alarm us. The American Consul at Hamburg having notified me by telegraph that a Spanish
vessel, supposed to be loaded with al-ms for use against us in
Cuba, was about to leave that port, I hastened to the Foreign
Office and urged that vigorous steps be taken, with the result that
the vessel, which in the meantime had left Hamburg, was overhauled and searched at the mouth of the Elbe. The German
government might easily have pleaded, in answer to my request,
that the American government had generally shown itself opposed

to any such interference with the shipment of small arms to
belligerents, and had contended that it was not obliged to search
vessels to find such contraband of war."

Let us not forget the financial aid given to the United States
during the Civil War. Germany was one of the few powers
that loaned us, large sums on our bonds when England gave finan-

cial and military aid to our opponent. This is the way Mr.
Andrew D. White- speaks of it on page 169:

"Of one thing I then and always reminded my hearers
namely, that during our Civil War, when our national existence
was trembling in the balance and our foreign friends were few,
the German Press and people were steadily on our side."

terials of direct use in fighting, to the men of war, or other

A CONDITION, NOT A THEORY

ships used for warlike purposes or privateers belonging to either
of the belligerent powers."

allies spells annihilation to Germany. "It is a condition, not a

But the continued sending Of arms and contraband to the

theory" that confronts the German people. For them it is a
question of life or death. The laws under which Germany is impelled to act are not the laws made by convention nor rules of
treaty. There is now no such thing as international law in the

SUBMARINE TO FOIL WAR-OBJECTIVE OF
ENEMIES

great debauch of blood and riot going on among the nations. If
there be such law, it is "more honored in the breach than in the
observance."

GREAT BRITAIN'S LOVE FOR INTERNATIONAL LAW

Has Great Britain followed any law but its own will and
convenience? When it found a German auxiliary cruiser anchored within the territorial water § of Chili, did not Britain
commit the inconceivably cowardly act of sinking the cruiser,
against the rules of international law and in violation of the
sovereignty of Chili ? Did any one bother particularly about that

inexcusably wanton act ? But that was Britain.
all right.
SELF-PRESARVATION

That was

It is thus Germany's dutydriven into a corner, fighting
against the great nations and resources of the whole worldto
prevent her enemies from securing arms and ammunition and
all other contraband of war, at all hazards, by all means, and irrespective of the nationality that screens the instruments of
death intended for her destruction. That this is Germany's duty
under the immutable principle of Self-Preservation, a timehonored principle of international law, admits of no question.
It is, however, more than a mere principle of international law,
it is, in fact, the first and highest law of nations and all other
laws, rules and regulations, must give way before it.

Grotius, the recognized Father of International Law, in
"Rights of War and Peace," (chap. 2, par. 7), quotes Seneca as
follows :

"NECESSITY, THE GREAT PROTECTRESS OF HUMAN INFIRMITY, BREAKS THROUGH ALL HUMAN
LAWS, AND ALL THOSE MADE IN THE SPIRIT OF
HUMAN REGULATIONS."

For obvious reasons Germany is compelled to keep her regular

fleet of war-vessels near her 'borders and can only make use of
her submarines to frustrate the war-objective of her enemies.
It is quite clear, as our note says, that it is not feasible for submarines always to give the notice and observe the rules applicable
to other vessels, in the matter of search, capture or destruction
of enemy vessels or those carrying contraband of war.

GERMANY'S WAR ZONE
The German War Zone notice is not essentially different from

that proclaimed by Britain (New York Times, Aug. 12, 1914,
page 3) to the effect that Britain would lay mines in the North
Sea, in view of the methods adopted by Germany, and that "The
British Admiralty must hold themselves fully at liberty To ADOPT
SIMILAR MEASURES IN SELF-DEFENCE." .
"But before doing SO
they think it right To ISSUE THIS WARNING IN ORDER THAT MER.

CHANT SHIPS UNDER NEUTRAL FLAGS TRADING WITH NORTH SEA
PORTS SHOULD TURN BACK BEFORE ENTERING THE AREA OF SUCH
EXcEPTIONAL DANGER."

The new situation, created by the advent of the submarine,
was wisely provided for by the notice of the war zone, where
the German submarine was intended to operate in preventing
contraband of war reaching the British Isles. This zone must
in effect correspond with that defined by the "Territorial Waters
Jurisdiction Act of 1878, viz : "The rightful jurisdiction of Her
Majesty, her heirs and successors, extends, and always has
extended over the open seas adjacent to the coasts of the United
Kingdom and all other parts of Her Majesty's Dominions, to such
a distance as is necesslary for the defence and security of such
Dominions."

The right of Germany to give such notice is predicated upon
the right and duty of Self-Preservation. This right is .superior

0
21

to the right of a neutral to travel on vessels carrying contraband
of Var within a proscribed danger zone, subject to the risks of
mine, aerial bomb and submarine.
Why should our administration give repeated warning notice

to Americans to leave Mexico, involving a sacrifice of their
property and business interests, and now encourage American
citizens whose lives are every bit as valuable as those residing in
Mexico, to ventureforth into the European arena of war. Would
not the suggestions of prudence to keep out of trouble be even
more imperative on the sea than on the land ?

Do we encourage our children to 'cross the streets, where
automobiles are rushing to and fro ? Do we say to our children,

"You have an unalienable right to cross the street, when and
where and as you like?" No, you will ask them to be careful.
Now, the dictates of prudence and common sense must be followed, if we wish to get along in this imperfect world. If we see

a fight in the street, we have a perfect right to get into it, but if
we get blows we can only blame ourselves. If we see a safe
being hoisted with danger signals near ,we take the risk if we
walk under itif a red flag gives us warning that a dynamite blast

is about to come off, we have the perfect right to ignore the
warning if we are willing to take the risk.

RIGHTS ARE RELATIVE, NOT ABSOLUTE

It is an elementary rule of human conduct that we must so
exercise our rights as not to interfere with the rights of °fliers.
Very few of the rights we enjoy, are absolute. As between two
rights the lesser must give way. As the right of self-preservation
is superior to all other rights, it follows as a demonstration that
the German right to prevent the success of all measures intended
for German destruction, is superior to the right of any non-combatant to travel on ships that carry the means for German destruction. It is inconceivable how any other conclusion can be reached.
This is not new law. The right of self-preservation can never
operate as an infraction of international law. The law of self-

preservation is self-enacting. It is not made by legislation nor
by judges, nor is it a law merely of custom or secured by con-

ventionit is the law that is inherent in nature. It may, of
course, be violated by ignorance, accident or design ; when violated
by design it is known as suicide ; and no nation can be held by any

rule of law or convention to be obliged to commit suicide.

Let me illustrate what is meant by relative rights. Thus,
a wagon has a right of way in a street, but is not allowed to
block the tracks of a street car. Each has its right, but one
is superior. The lesser right must yield.

In applying this principle with respect to the rights of an
American citizen on the high seas, we must allow that the right

of self-preservation of a belligerent nation is superior to the
right of a neutral individual to travel upon the high seas, because

the right of self-preservation is not at all involved in the case
of the individual ; in other words, he does not have to travel on a
guilty ship while a nation at war is bound to preserve its existence.
By a "guilty" ship I mean one that gives aid to the enemy. Such

ships he must not be caught on, for they contain the seeds of
danger. This danger exists by virtue of the imperative requirement that they must be prevented from reaching the enemy port.
That is the essential thing. That is the thing, above all things,

that the belligerent must seek to prevent, for if he fails, the
national existence is imperilled. Here comes in the great right
and duty of self-preservation. If he can capture the ship, well
and good ; if he cannot, then he must destroy it, saving the crew
and passengers, exerting every power to that end ; but if he cannot destroy the ship and also save crew and passengers, then it

becomes a question of duty, a question of the trust that he is
As between the lives of crew and passengers
on the one hand and the life of his nation on the other, there is
no alternative. Does international law require him to betray his
trust and to sacrifice his nation ? By no means. When the life
charged to fulfill.

of his nation is trembling in the balance, there is only one thing a
soldier, a patriot can do---and that is to do his duly!
Please see whether I am not amply supported in my contention

of the paramountcy of the right of self-preservation over another rights, in the following citations of high masters of Inter-

national LawBritish authorities and the authorities on that
subject in the Appendix.

Halleck's Int. Law, Vol. 1, page 119, §18:

"Another right immediately resulting from the independence of sovereign States, is that of self-preservation.

This is one of the most essential and important rights
incident to State sovereignty, and lies at the foundation
of all the rest. It is not only a right with respect to
other States, but a duty with respect to its own members,
and one of the most solemn and important duties which
it owes to them."

Page 120, §19: "This right of self-preservation necessarily involves all other incidental rights which are essential as means to give effect to the principal end. And
other nations have no right to prescribe what these means
shall be."

Page 314: "For International Law considers the Right
of Self-Preservation as prior and paramount to that of
Territorial Inviolability, and, where they conflict, justifies the maintenance of the former at the expense of the
latter right."

This right of self-preservation, which allows an individual,
not as an excuse, but as a matter of right to kill, if he has just
reason to believe his life to be in danger, extends to nations as
well. Can any one doubt that every contraband-bearing ship that

arrives in England is a nail in Germany's coffin, if the alli,es'
policy is to go on without interference or interruption? And can
any one doubt that Germany has the right and duty to prevent
her defeat and extinction by using-her submarines? And if it
is not always feasible to sink these contraband-laden ships before
giving an opportunity to save life, can any one claim that Germany must permit these nails to be driven into her coffin ? If
people will take the risk of the war zone they must bide the consequence. The loss of life, in such circumstances, is one of the
saddest concomitants of war.

RUSSIA SINKS NEUTRAL SHIPS DURING
JAPANESE WAR

Sir R. Phillimore Int. Law, Vol. 1. Chap. 10, Page 312:
"The Right of self-Preservation, by that defence which
prevents, as well as that which repels, attack, is the next
International Right which presents itself for discussion,
which it will be seen, may under certain circumstances,
and to a certain extent, modify the Right of Territorial
Inviolability.

The Right of Self-Preservation is the first law of
nations, as it is of individuals.

All means which do not affect the independence of
other nations are lawful for this end. No nation has a
right to prescribe to another what these means shall be,
or to require any account of her conduct in this respect.

The work, "Cargoes and Cruisers" or "Britain's Rights at
Sea" by Civis, states that the following powers came to the
"London Conference" maintaining the right to sink neutral merchantmen under certain restricted conditions : Germany, the

United States, Austria, France, Italy and Russia. The latter
country actually exercised that right against England, a neutral,
in the Japanese War. The Knight Commander, Hipsang, Oldhamia and other British ships were sunk by Russia without it
being ascertained, in many cases, whether they were really carrying contraband or not. England protested but no redress was
given.

.......m....pm111111111111111.

THE LU$ITANIA
In the awful case of the Lusitania, a preliminary notice had
been given by the zone proclamation, but the notice was ignored.
Advertisements had been made, they were not heeded. Telegrams
had been sent, but no attention paid. The press has recited that
personal appeals had been made, begging and pleading that passengers should not go_ by that munition-laden, doomed vessel.

Oh! the pity of itthose splendid specimens of manhood and
womanhood and childhood, to go down to destruction, because
the demon war demanded the sacrifice. No one with the semblance of a human heart can fail to weep at the sadness and the
loss. Such is war. What could the German authorities do ?
Knowing, as they did, the tremendous military consequence to
the life and welfare of the human interests committed to their
keeping, would it have been honorable, decent or just to allow
this ship, filled to the brim with "Death to Germany," to reach
port? Does any one for a moment think that the German authorities were anxious to take this human toll ? Did they lure the
innocents aboard? Did they invite them to come ? Or did
they do everything in their power, short of physical arrest, to
keep them from going?

THE UNITED STATES ASKS GERMANY TO GIVE UP
ITS RIGHT OF SELF-DEFENCE
In the discharge of our duty to protect American lives, can
we reasonably demand that Germany renounce a mode of warfare absolutely necessary to her self-defence ?
But Germany is asked to give up her submarine warfare. Why

not ask at once for unconditional surrender? In the name of
common sense, is it not enough to have the world against her, to
have us furnish the contraband of war against her, must we also

insist upon allowing our citizens to be put aboard to act as
shields for the protection of arms and ammunition in order to
make sure that they shall reach their destination ? Must we

go out of our way, not only to manufacture the means for
German destruction, but also to insist that our citizenship and our

flag be utilized for that purpose? Is that neutrality in law,
neutrality in fact, neutrality in spirit, neutrality in the sense invoked in our day of prayer, or in the neutrality proclamation of
our president?
America has no moral or legal right to insist that the presence
of an American shall protect a ship carrying contraband of war
from the only practical means by which Germany can rid herself
of the perils, which guns, powder and ammunition mean in the
hands of her adversaries. When these things are put aboard tliese
death-dealing steamers, it must not be supposed that the presence
of a noncombatant will give some kind of sanctity or halo to the
vessels which should make Germany respect them and allow
them to proceed through the war zone to their bloody destination.

IMMOLATION ON THE ALTAR OF INTERNATIONAL
LAW
Is

it conceivable in human nature, that a country against

whom these dangers are directed, and having the power to prevent, would say : "Well, these ships carry a neutral flag, they aim

at our hearts, but .international law requires that we must be
martyrs. We have no available battle-ships to intercept or capture them, we must not use our undersea fleet bceause no law
as to the proprieties of undersea warfare has yet been written,
then let them pass, let them destroy us, history and the plaudits
of mankind will praise the German Kultur and write us down as
the finest and politest people that ever went down on the altar
of international law."

Ask yourselves, fellow-Americans, if, perchance, we were in

war with England and our fleet had been destroyed or bottled
up and we had a submarine fleet that could prevent the bring'ng
of ammunition and supplies to England and that the ammunition
and supplies were in the vessel of our enemy, and German subjects

had been warned by us not to go upon that vessel as we were

going to destroy it, would we, for a moment, hesitate as to what
was our duty, our patriotic duty to do ? Would the neutrals,

And then Mr. Wilson continues, in apt and sage advice which
I include because the suggestions are of prime and vital value at
this time :

by going upon that vessel have the right to prevent us from
carrying on our warfare in a way that was demanded by our
right of self-preservation? Would the neutral have the right
by the infliction of his presence, practically to dictate to us the
way in which we shall and in which we shall not carry on our
warfare?
The suggestion that the German government shall not avail
itself of such forces as are within its power to subdue its British
antagonist on the sea, is not only inadmissible but absurd on the

face of it.
NEW CONDITIONS DEMAND NEW RULES
While it is certainly true, as a general proposition, that no one
has the right to change the law to suit his own convenience, we

must not forget that international law is subject to growth and
changes and that the whirligig of time produces changes when
the time is ripe. The reasonable question arises whether cir-

"I do not speak of these things in apprehension, because all is
open and above board. This is not a day in which great forces
rally in secret. The whole stupendous programme is planned
and canvassed in the open and we have learned the rules of the
game of change. Good temper, the wisdom that comes of sober
counsel, the energy of thoughtful and unselfish men, the habit
of co-operation and of compromise which has been bred in us
by long years of free government, in which reason rather than
passion has been made to prevail by the sheer virtue of candid
and universal debate, will enable us to win through still another
great age without revolution. I speak in plain terms of the real
character of what is now patent to every man merely in order to

fix your thought upon the fact that this thing that is going on
about us is not a mere warfare of opinion. Is has an object, a
definite and concrete object, and that object is Law, the alteration
of institutions upon an extended plan of change."

He then says we ought not to be "too much in love with

cumstances have not so altered and revolutionized conditions that
old rules and customs no longer satisfy the needs of justice.

precedents and the easy maxims which have saved us the trouble
of thinking."

On August 31, 1910, Woodrow Wilson delivered the "Annual
Address" before the American Bar Association in which he said :

of capital importance in supporting the point I wish to make,

"The old order changeth,changeth under our very eyes, not
quietly or equably, but swiftly and with the noise and heat and
tumult of reconstruction.

"In very few ages of the world has the struggle for change
been so widespread, so deliberate, or upon so great a scale as
this which we are taking part in.

Society is looking itself over,

in our day, from top to bottom, is making fresh and critical
analysis of its very elements, is questioning its oldest practices as
freely as its newest . . . . and stands ready to attempt nothing
less than a radical reconstruction."

This last quotation from the words of our President

namely, that changing circumstances beget a need for new rules
to fit the new requirements of right and justice and that we cannot be too slavishly bound by precedents that are rendered obsolete
by the revolutionary changes of the time. Mr. Wilson goes on as
follows :

"The temper of the age is very nearly summed up in a feeling
which you may put in words like these : 'There are certain things
we must do. Our life as a nation must be rectified in certain
all important particulars. Iv THERE BE NO LAW FOR THE CHANGE,
IT MUST BE FOUND OR MADE. WE WILL NOT BE ARGUED INTO IMPOTENCY BY LAWYERS. WE ARE NOT INTERESTED IN THE STRUCTURE

Or OUR GOVERNMENTS SO MUCH AS IN THE EXIGENCIES Or OUR

completely that new practices will inevitably develop to

Some of the changes, having a distinct bearing upon the con-

blockade has probably passed. It would be very difficult

troversy between Germany and the United States, are clearly
brought out by John Holloday Latane', Professor of History, in
an article on "Problems of Neutrality," in The Johns Hopkins
Alumni Magazine, March,

1915, viz :

Page 189: "Another development having far-reaching
effects upon the commerce of neutrals is the action of
England in declaring the North Sea to be a war area or
a strategic area. It has always been the practice of

naval squadrons when manoeuvring in the neighborhood
of an enemy to assume jurisdiction over that portion of
the high sea actually within their sphere of operation
and to warn neutral vessels away. During the RussoJapanese War the use of mines and wireless telegraphy
led to an enormous enlargement of the strategic area.
It can readily be seen that it would be of uital importance

to a belligerent to exclude from his strategic area all
neutral vessels equipped with wireless apparatus. The

use of mines has also been greatly extended and the
right of a belligerent to place mines in certain areas
under certain restrictions is clearly recognized. In the
present case Great Britain, has announced to neutrals that

the North Sea is a war area, that has been mined, and
that if a neutral ship wishes to avoid destruction, it must,
before entering the North Sea, signal to a member of the
British squadron and ask for a pilot. Such action, of

course, practically excludes from the North Sea all
neutral vessels which do not submit to British search."
Page 190: "It seems now probable that this practice
of proclaiming a strategic area will develop into a clearly
recognized principle of law. It is, it is true, in conflict

with the older doctrine of the freedom of the seas, but
the use of wireless telegraphy, mines, and submarines has

changed the conditions'. of modern naval warfare so

meet changed conditions' and will in time receive the
sanction of law. For instance, the day of the old formal
to keep a blockading squadron before a port which was
equipped with submarines and automatic torpedoes. The
proclamation of a large strategic area will probably take
the place of the old blockade. Page 194: If Germany
could effectively blockade England with her submarines
"she could starve England out in a few weeks."

The change of conditions is emphatically expressed by
Thomas Barclay, Vice-President of the Institute of International
Law, in an article entitled "Neutrality versus War" in the 19th
Century and After, of March, 1915, vie:
"Submarine and aerial war, machine and the new siege
guns seem to have produced a change equally profound,
the effect of which is only beginning to make itself felt.

"The present feeling on both sides is one of resentment at new methods which are growing up in response
to the change, but change there is, and we must examine
its consequences with the detachment befitting a new de
facto situation."
The changed methods of warfare are so apparent
that it seems most strange to find with what tenacity rigid

rules of international law are sought to be applied, such as for
instance, were never intended for submarine warfare, because

there were no submarines when the rules were made.

nation can be made to give up new weapons of warfare because
they do not fit in with old rules of practice. New and improved
methods of warfare will find their way into practice and what
has always happened will happen again ; i. e. rules will grow up
to fit the weapons, but weapons will not be abandoned because
of the present lack of rules. You might as well expect railroads

to be operated on laws of the post chaise, on the ground that
changed methods of traction are not entitled to new legislation.

When the rules of visit and search grew up, the submarine
was not known and consequently the rules appropriate to cruisers

and other craft, cannot apply to submarines. So far as rules
of humanity are concerned, they have no immediate relevancy
to the bloody business of winning campaigns. The laws of war
are not laws of "sweetness and light" ; they are laws of death
and destruction, the very reverse of "the milk of human kindness." While war is war, it is the arbitrament of force ; and no
injection- of rules of humanity can be tolerated for the purpose
of taking from one of the belligerents his right to battle for
his victory by ways and means which might assure him success,
and the denial of which will doom him to defeat. Humanity
must seek homesteads more hospitable than fields of battle or
water zones parcelled out by contestants as areas of havoc and
danger.

The nobler instincts of humanity are ever active in seeking
peace ; and, when war has unhappily engulfed the nations, our
effort should be for peace, and not for the continuance of the
contest. That is humanity in its tale, large and noblest sense, and
that is the "humanity" we should strive for, the restoration of
peace not only, but the restoration of good will amongst the
peoples most unhappily estranged. If we pursue our God-given
mission of healing the wounds and removing the misunderstandings of the peoples of the earth, we shall indeed be blessed,
and follow in the humanitarian lines so natural and congenial to
our people.

We now come to the consideration of the freedom of the seas:

THE FREEDOM OF THE SEAS
GERMANY'S ATTITUDE ON THE FREEDOM OF THE
SEAS

The American note makes felicitous allusion to the constancy

of the German attitude "with regard to the sacred freedom of
the seas." The reference is historically just, but it would seem
that the implied admonition could, with much better propriety,
have been addressed to another power.

In the subjoined collection of authorities it will appear that
the sacred freedom of the seas has been the great international
hope and dream for centuries. Frederick the Great was the
champion of that desideratum, and the first to cause a summary
of the rights of neutrals on the sea to be prepared. Germany

has ever been in the forefront of the powers to secure the
inviolability of private property on the sea.

AMERICA ON THE FREEDOM OF THE SEAS
The following quotations from Franklin and Clay indicate
the American feeling on the question of the freedom of private
property on the sea.

Benjamin Franklin in 1788:

It is high time for the sake of humanity that a stop
were put to this enormity. The United States are now
suffering in all their treaties an article engaging . . .
that unarmed merchant vessels shall pursue their voyage
unmolested. This will be a happy improvement in the
law of nations,

Henry Clay in 1826:

Private property of an enemy is protected when on
Those who do net

land from seizure and confiscation.

bear arms there are not disturbed in their vocations.
Why should not the same humane exceptions be extended to the sea? This has been an object which the
United States have had much in their heart since they

alone accepted the proposal under the condition that all
other naval Powers should consent. Again in 1856,
on the occasion of the Declaration of Paris, the United
States endeavored to obtain the victory of the principle

assumed their place among the nations.

that enemy merchantmen shall not be appropriated,

For further light on this subject, please see "Address of
Charles Henry Butler" before the International Law Association at Buffalo, New York, Aug. 31, 1899; also "Private
Property on the High Seas,' by G. A. Finkelnburg, Am. Law

making it a condition of their accession to the Declaration of Paris that this principle should be recognized.
But again the attempt failed owing to the opposition of
Great Britain. (The italics are mine).

Rev., Sept.-Oct., 1904, quoting President McKinley in favor of
abolishing capture of private property at sea.

At the outbreak of war in 1866, Prussia and Austria
expressly declared that they would not seize and appropriate each other's merchantmen. At the outbreak

A HIGH BRITISH AUTHORITY ON THE IMMUNITY
OF PRIVATE PROPERTY FROM CAPTURE
ON THE HIGH SEAS

,of the Franco-German War in 1870, Germany declared
French merchantmen exempt from capture, but changed

Oppenheim, International Law, (Vol. 2, page 184) :
Par. 178. "But the Declaration of Paris has not
touched upon the old rule that private enemy vessels and
private enemy goods thereon may be seized and appropri-

ated, and this rule is, therefore, as valid as ever heretofore. On the other hand, there is a daily increasing
agitation for the abrogation of this rule. Already in
1785, Prussia and the United States of America stipulated by article 23 of their Treaty of Friendship (see
note 2) that in case of war between the parties, each
other's merchantmen shall not be seized and appropiated.
Again in 1871 the United States and Italy, by article 12

of their Treaty of Commerce, stipulated that in case of

war between the parties, each other's merchantmen,
with the exception of those carrying contraband of war
attempting to break a blockade, shall not be seized or
appropriated. Already in 1822 the United States made
the proposal to Great Britain, France and Russia for a
treaty abrogating the rule that enemy merchantmen and
enemy goods thereon can be appropriated ; but Russia

her attitude when France did not act upon the same
lines."

Note 2: Martens, R IV p. 37. Perels (p. 198) maintains that this article has not been adopted by the Treaty
of Commerce between Prussia and the United States of
May 1, 1828, but this statement is incorrect, for article

12 of this treatysee Martens N. R., VII p. 615adopts
it expressly.

GREAT BRITAIN, THE ONLY FOE TO THE
FREEDOM OF' THE SEAS
But Great Britain, from first to last has been the insuperable
obstruction to this relief. Once we have attained the Freedom
of the Seas, there will be removed the greatest temptation that
now lures nations into war. Commerce would then be the means
of cementing peoples instead of dividing them. The occasions
for war would be few and far between and ideals of peace would
be more readily realized.
I can easily understand why the little island of Great Britain
will not give up this practice of legalized piracy in war. It is
by this "black-hand" menace that she gains and controls the bulk

of the commerce of the world. She is the open or secret enemy

of every nation that dares to seek an independent foothold in
world-affairs. The basis of her national life is found in 'the
proposition of Sir Walter Raleigh;

"He who commands the sea controls trade and commerce ;
he who controls trade and commerce commands the wealth and
riches of the world ; and he who controls wealth controls the
world."

THE SUBMARINE AS A DELIVERER

I see before me in the submarine, the great challenger and
destroyer of Great Britain's monoply of the sea. With that
weight lifted from the bosom of the ocean ,there will be a new
freedom of the seas, allowing all the people of the world to
develop trade and industries, with every port an open door to
receive and distribute the good things of life as a general blessing
to all.

If the coming of the submarine would bring such glad tidings
of the new freedom, it would outweigh all the terrible tragedies
of this world-conflict. How poor and deluded would our .judgment be if we did not take advantage of the great opportunity
now before us.

GERMANY FIGHTS FOR THE RIGHTS OF A PERPETUAL OPEN DOOR FOR THE COMMERCE
OF EVERY NATION OF THE WORLD
Germany is indeed fighting the good fight for humanity. Such

an opportunity for securing the freedom of the seas may not
come in a hundred years. I ask not that America take sides
against England, all I ask is that we shall not take sides against
Germany, which bears on her shoulders the burden of humanity

in its contest to shake off this "old man of the sea." Several
such golden opportunities lay within the powers of past presidents, which were neglected. Let us not neglect it now.

35
111/

GERMANY TO CONQUER THE DESPOT OF THE SEA
Germany, if successful, will give us this freedom of the seas.

It has been her constant effort and her consistent contention.
Germany can act as the deliverer of the world from the awful
oppressor that has ruled the sea with despotic sway for centuries
and which ruthlessly seeks to destroy the commerce of any and
every nation that may compete with, or seek to parallel her own.

British naval bases, extending along our Atlantic coast practically dominate every strategical area. The alert diplomacy of
the little isle managed to obtain treaty rights which fairly fettered
American enterprise in seeking inter-ocean canal facilities on
the Western Hemisphere. SlTe keeps a vigilant eye upon our

Panama Canal, and can scarcely forgive us for presuming to
retain some control over it. There is no maritime nation in
the world unmenaced by her naval stations, shrewdly distributed
to control independent commerce of other nations. German

audacity must be punished for threatening to interfere with
British Proprietorship of the Sea.

Since King Edgar (959-975), the Kings of England claimed
dominion of all the seas about England"mare Anglicanum circumguague" in the widest sense of the term.
When Grotius wrote his "mare liberum" establishing the principle of the freedom of the seas, King Charles I of England demanded that Grotius be punished and wrote his representative
at the Hague : that without his sovereignty in all the British
seas he cannot be kept safe. "But commanding the seas, he
may cause his neighbors and all countries to stand upon their
guard, whenever he thinks fit." Mare liberum "must be answered
by a defence of Mare clausum not so much by the discourses as
by the louder language of a powerful navy, to be better understood, when overstrained patience seeth no hope of preserving
her right by other means."

ENGLAND OWNS THE OCEANS
The rulers of England have, since Cromwell's time, followed
his declaration : "England will not suffer any other flag than
the British to float upon the ocean except by her permission."
Sir Philip Meadows in 1689 wrote, "Observations' concerning

the Dominion and Sovereignty of the Seas ; being an abstract
of the Marine Affairs of England." He cites the preamble to the
Act of Parliament (An 16, 17 Car II) as follows :
"To equip, and set out to sea, a Royal Navy, for the
Preservation of His Majesties ancient and undoubted
Sovereignty and Dominion in the Sea."
Pomeroy Int. Law :
§155: "From the time of Elizabeth to that of Charles
II, the English asserted property over all the seas which

wash the coasts of Great Britain, up to the shores of
neighboring states, and north to the Pole. Under the
first Hanoverian Kings, they only claimed a sovereignty.
Queen Elizabeth seized some Hanseatic vessels lying at

anchor off Lisbon for having passed through the sea
north of Scotland without her permission."
When in 1761 the French demanded peace of England, Lord
Chatham declared in the House of Lords that " France should
not obtain peace, unless she signed the destruction of her marine ;

that it was enough, if the coasting trade was allowed her, and

that England should reserve to itself the sovereignty of the
ocean."

Azuni, a celebrated writer on martime law, said :

"England has always felicitated herself on her superiority
at sea, but how shamefully has it been acquired ; by the violation

of the sacred principles of the laws of nations ; by ruining the
commerce of every nation, and by keeping so many French seamen to perish in her prisons."

SENATOR SUMNER ON BRITISH SEA POWER Senator Charles Sumner in his speech of January 9, 1862, on
the Trent affair, covered the general subject of maritime right,,
and after praising Britain for her contribution to municipal law,
says that this Power in maritime questions arising under the law
of nations has too often imposed upon weaker nations her own
arbitrary will. "The time has been," he proceeds to say, "when

she pretended to sovereignty over the seas surrounding the
British Isles, as far as Cape Finistere to the south, and Vanstaten
in Norway. to the north. But driven from this princely pretension,
other pretensions, less local but hardly less offensive, were avowe;1.

The boast of "Rule Britannia, rule the waves," was practically
adopted by British courts of admiralty and universal maritime
rights were subjected to the special exigencies of British interests. In the consciousness of strength, and with a navy that
could not be opposed, this Power has put chains ilpon the sea.

The commerce of the United States, as it began to whiten
the ocean, was cruelly decimated by these arbitrary pretensions.

American ships and cargoes, while, in the language of Earl
Russell, "pursuing a lawful and innocent voyage," suffered from

the British admiralty courts more than from rock or temrest.
Shipwreck was less frequent than confiscation ; and when it
came, it was easier to bear. But the loss of property stung less
than the outrage of impressment, by which foreigners, under the
protection of the American flag, and also American citizens, without any form of trial, and at the mere mandate of a navy officer,
who for the moment acted as a judicial tribunal, were dragged
away from the deck which should have been to them a sacred
altar. This outrage which was feebly vindicated by the municipal claim of Great Britain to the services of her own subjects,
was enforced arrogantly and perpetually on the hi2h seas, where
municipal law is silent and international law alone prevails.

It is mentioned by Mr. Jefferson, and repeated by a British
writer on international law, that two nephews of Washington, on
their way home from Europe, were ravished from the protection

of the American flag, without any judicial proceedings, and

all neutral states, he had an exposition drawn up of the
principles, by which he was actuated. This was the first
time that the rights of neutrals were formally discussed
and explained."

placed as common seamen under the ordinary discipline of British

ships of war. The victims were counted by thousands.
If pretension so intrinsically lawless could be sanctioned by
precedent, Great Britain would have succeeded in interpolating
it into the law of nations.
Protests, arguments, negotiations, correspondence, and war it-

selfunhappily the last reason of republics as of kingswere all
employed in vain by the United States to procure a renunciation
of this intolerable pretension. The ablest papers in our diplomatic history are devoted to this purpose ; and. the only serious

war in which we have been engaged, until summoned to encounter this rebellion, was to overcome by arms this very pretension which would not yield to reason."

WILLIAM 5. DUANE ON FREDERICK THE GREAT
AND ENGLISH PRACTICES ON THE HIGH SEAS
The Law of Nations Investigated by William John Duane,
one of the Representatives of Philadelphia in Penn. Legislature,
1809.

§19: "England, having by every species of injustice
to weak and neutral states, raised itself from insignificance to the first rank of commercial power, found that
to maintain its consequence it was necessary to observe
a loose and indecisive language respecting the laws of
nations. It adopted the long exploded authority of the
Consuls de Mare, and obeyed it whenever it was its interest to do so. Pursuing its usurpation, in the war with
France and Spain in 1745, a number of Prussian vessels

PREDIGESTED MENTAL PABULUM
The trouble with us is, that those who regulate what goes for

our public opinion, do not want the war to end unless it is
ended in favor of the British Allies. Any old reason is supposed
to be good enough for the American public who get their mental
pabulum usually in predigested form. The Pro-Britishness of

our press is just now a vogue and a creed that brook neither
reason nor argument. I do not wish to be understood as opposed to the restoration and maintenance of good will between

the United States and Britain, but I regret that it should be
at the expense of good feeling with Germany or that of any
other nation. We need the good will of all.
PROFESSOR ROLAND G. USHER ON THE NEUTRALITY OF THE UNITED STATES
Professor Usher in the New York Tribune of May 30, 1915,
urges the 'United States government to abstain from war with
Germany became he fears that even a temporary let-up in furnishing arms and ammunition to the British Allies would enable
Germany to gain a quick victory and wind up the war. This
is what he says, among other things :

mortgage claims upon Silesia, which England held under

"It will be apparent, therefore, that the efficiency of the defensive campaign of the Alliesto say nothing of an offensive
campaignwill depend entirely upon the continuance of the
stream of ammunition, equipment and food, which the United
States is sending them every week. This is a palpable and
well known fact, and is not questioned. The assistance of the

the treaties of Breslau and Dresden. Before he took
this decided step in his own defence, and in support of

United States is vital to the enemies of Germany. We are already
doing Germany about as much damage as we can under the cir-

laden with innocent goods, but belonging to belligerents,
were seized and carried into British ports. Frederick

the Great, immediately retaliated by sequestrating the

cumstances. We are already giving her enemies about as much
aid as they can utilize."

BRITISH POLICY TO PREVENT THE UNITED STATES
FROM ATTAINING ITS HIGHEST DEVELOPMENT.
When I consider the constant British efforts to thwart Ameri-

can interests from the inception of our Union to this very day
how Britain took sides most unneutrally against us in our Civil
Wareven as we are now unneutrally aiding her against Ger-

reflect that we are, after all, a practical people, I feel that sooner
or later the spell and hysteria will disappear, and that our Republic, that assembles and assimilates the force and vigor and
all that is best in the peoples and races of the world, so wonderfully pictured by the President in his recent Philadephia speech
to newly-made citizens, will see the wisdom of sober second
thought, will resist the temptations of acrid passion and prejudice, and will rise to the heights of reason, justice, peace, and
good will to all mankind.

manyhow she poisoned the wells of thought against us in
that crucial test of our national existence by the invention of
tales of northern cruelty so black that the so-called "Belgian
atrocities," absolutely pale into insignificancehow our great
journal, the New York Times, battled most righteously against
the unconscionable slanders cast upon American humanity and

civilization during our Civil Warhow the attacks upon our
rights and interests have been continued without respite or intermissioncompelling us to reverse our policies and legislation in

the matter of the Panama Canal tolls because otherwise our
president would be at a loss how to deal with exigent problems
affecting our most intimate foreign interestshow we were not
allowed to pursue the policy of buying ships to take care of the

commerce denied to other nations by reason of this wara

AP.PENDIX

The Appendix speaks for itself. Under various headings are

grouped excerpts from high and instructive authorities which
throw light upon a number of important questions involved in
the war. They furnish ample food for thought and it is deemed
well to let our people read what great men have said without
attempting to sway opinion by comment. If we could only bring
people to think for themselves, much would be gained for the
general welfare.

policy most dear to the heart of our president, and which, if it
had been permitted to us, would have given us a good start in

VESSEL ON THE HIGH SEAS IS A PART OF THE
TERRITORY OF THE NATION TO WHICH

the race for international tradehow our co.nmerce is now

SHE BELONGS

harassed and sand-baggedhow we are being egged on to plunge

into the maelstrom of warwhich, no matter how it would result, would vouchsafe to us no possible compensations, but would
certainly deprive us of our principal vantage ground, of being the
only great power unweakened by the economic and physical waste

of war and the bitterness of feeling that so long remains to impede future commerce and good relationshow, if we keep our
heads level long enough to think of our own interests instead
of continuing to play the part assigned to us of pulling British

chestnuts out of the firewhen I consider all these things and

In the letter of Mr. Webster to Lord Ashburton, of Aug. 1,
1842, he states that

"A vessel on the high seas, beyond the distance of a
marine league from the shore, is regarded as part of the
territory of the nation to which she belongs, and subjected exclusively to the jurisdiction of that nation.
(2 Moore's Digest 287).

SELF-PRESERVATION

In Baty Int. Law at pages 100 and 101 the author refers to
the fact that the United States government endeavored to impress Mexico with the right of the United by rules of absolute
necessity to invade Mexican territory. He shows where Secretary of State in letter to Ellis, Dec. 10, 1836, (20 S. P. 1419) invoked "the immutable principles of self-defencethe principles
which justify decisive measures of precaution to prevent irreparable evil."

In "War Hyprocrisy Unveiled" by Albert E. Henschel, we
find the following on "The Right of Self-Preservation," pages
24 and 25:
"Germany invokes this rule, which is not only sanctioned by the principles of International Law, but which
is divinely fixed in the instinct of every thing that lives

the impulse of self-protection and of self-defense.
"It will be seen from the following expressions of the
most eminent authorities on International Law, that the
right of self-preservation precedes and underlies every
other obligation. All treaties are subordinated and subject to this basic and inherent right. It is implied, and

read into, every treaty and contract, anything to the
contrary said, notwithstanding. This primary right of
existence cannot be lost or bargained away. It is
unalienable.

. .

BRITISH AUTHORITIES ON LAW OF SELFPRESERVATION
1.

Phillimore, Int. Law, Chap 10 (CCXI) :

"The Right of Self-Preservation is the first law of
nations, as it is of individuals. * * * It may happen that the same Right may warrant her in extending
precautionary measures without these limits, and even

in transgressing the borders of her neighbor's territory. For International Law considers the Right of
Self-Preservation as prior and paramount to that of
Territorial Inviolability, and, where they conflict, justifies the maintenance of the former at the expense of
the latter right."

Twiss, Int. Law, page 3:
"The State or Nation is thus under a primary obligation to preserve itself ; in other words, Self-Preservation is a primary duty of National Life."
Page 4:

"The right of Self-Preservation accordingly gives
to a nation a moral power_of acting in regard to other
Nations in such a manner as may be requisite to prevent them from obstructing its preservation or its perfection. (Vattel L II C4 Sec. 49.) This Right is a perfect Right, since it is given to satisfy a natural and indispensable duty."

Hall, Int. Law, 4th Edn., p. 281:

"In the last resort almost whole of the duties of
states are subordinated to the right of self-preservation."

L. G. C. Laughton (United Service Mag., Vol. 29 (N. S.)
1904, page 226, in a very interesting article on "Belligerents
and Neutrals," says:
"It is an axiom of international law that a State has
the right to take measures to secure its existence."

THE RIGHT OF SELF-PROTECTION NULLIFIES
TREATIES
Pomeroy, Int. .Law, 351, cites Martens, Droit des Gens,
Vol. II, Ch. II, Sec. 52:
"* * * Nevertheless, the right of self-preservation authorizes a nation to recede from a treaty which

it cannot fulfill without causing its own destruction ;
and this faculty is even a tacit condition in all treaties,
and especially in alliances."

Page 39: "No nation is bound to stand unresistingly
quiet and behold the means of its destruction furnished
to its enemy by a powerful neighbor. The duty of selfpreservation, lying at the foundation of all law, civil and
national, if conflicting with an otherwise lawful right of
trade, confers the right of preventing and repressing such
aid by forcible resistance, with all the resources at command, including those of war, if needful for the purpose.
Such aid, under such circumstances, however, otherwise,
consistent with the law of nations, becomes substantially
complicity or alliance with the enemy, and may be lawfully treated as such."

Ortolan is then cited :

"Nevertheless, some publicists have observed that
when a treaty leads directly to the destruction of the
state, that state has the right to treat it as null. This
is an evident and incontestible fact, based upon the
right of self:preservation. For moral beings, as well
as for individuals, there can be no obligatory promise
when this promise is of suicide."

LAW OF NECESSITY
Oppenheim, Int. Law, Vol. 1. Page 177:
§ 129. "From the earliest time of the existence of
the Law of Nations, self-preservation was considered
sufficient justification for many acts ol a State which
violate

other

States."

. .

"Thus,

self-preKrvation

is a factor of great importance for the position of the
States within the Family of Nations, and most writers
maintain that every State has a fundamental right of
self-preservation." Page 178: "Such acts of violence
in the interest of self-preservation are exclusively excused as are necessary in self-defence." Page 179:
"The reason of the thing makes it, of course, necessary
for every State to judge for itself when it considers a
case of necessity has arisen, and it is, therefore, impossible to lay down a hard and fast rule regarding the
question when and when not a State can take recourse
to self-help, which violates another State. Every thing
depends upon the circumstances and conditions of the
special case."

Remarks on The Letter of "Historicus," Charles G. Loring,
Boston, 1864:

Thomas Waraker, L.L.D., "Naval Warfare of the Future" :
Page 24: "By all means, let every one who has any
authority or influence inculcate the duty and the expediency of conforming national as well as individual
action to rules and principles. But at the same time
let not caution be lulled to sleep, and a foolish expectation be formed that these rules in the smallest degree

enable a nation to dispense with a single safeguarda
single weapon of defense. It is when the strong man is
armed that his goods are at peace. No one supposes
that he, is disparaging morality or law, because he pro-

vides himself with bolts and bars and other means of
self-defense, to which, in the last resort, he may find
himself driven ; and, similarly, the provision of every
possible means of national self-defense implies no disre-

gard for International rights and duties, but is a pure
matter of prudence, and is the first of the duties which a
government owes to its subjectsa duty which the sub-

ject should use his best endeavors to urge upon his
government."

Page 36: "It could never be pretended that any law

or morality could require an independent nation to
destroy itself, or deprive itself of the means of self-

defense, or so to weaken them as to facilitate its own
subjugation."

modified bounds ; and so far as universal practice has
imposed a limitation, so far that limitation is to be respected in the common exercise of hostility; though per-

Lord Ashburton, British plenipotentiary to Mr. Webster, Sec.
of State, July 28, 1842:

"There are possible cases in the relations of nations,
as of individuals, where necessity which controls all
other laws, may be pleaded ; but it is neither easy nor safe
to attempt to define the rights or limits properly assign-

able to such a plea. This must always be a subject of
much delicacy, and should be considered by friendly na-

tions with great candor and forbeafance.

The in-

tentions of the parties must mainly be looked to!"

Mr. Webster, Sec. of State to Lord Ashburton, Aug. 6, 1842:

"Undoubtedly it is just, that, while it is admitted that
exceptions growing out of the great law of self-defense
do exist, those exceptions should be confined to cases
in which the necessity of that self-defense is instant,
overwhelming, and leaving no choice of means, and no
moment for deliberation."

Alexander Croke, L.L.D., Advocate in Doctors' Commons
in his "Remarks on Mr. Schlegel's Work on Visitation of Neutral Vessels under Convoy (1801), says at page 18:
"It is to be observed that the rights of war externally
against the Public Enemy (in which are included all his
individuals) are naturally and originally unlimited.
Primarily, and by the natural law of nations, which is
nothing but the law of nature and universal justice transferred from individuals to communities, all modes of
hostile violence are legally practicable and the use of one
instrument of destruction is just as legitimate as another.
The practice of mankind influenced by different considerations of humanity, and convenience, has agreed in
confining the ordinary operations of war within certain

haps extreme cases may be put in which the original
rights of self-defense might warrant a recurrence to a
degree of hostile activity beyond it."
Wm. Beach_ Lawrence Argument Before Mixed Comm. on
British and American Claims, 1873, page 3:
"All the pretence which a belligerent can have to interfere with the unrestricted use of the ocean by neutrals,
arises from considerations of self-defence or from the
right to prevent acts, which in their result, may tend to
benefit the enemy."
The Reality of War, an introduction to Clausewitz, by Major
Stewart L. Murray, late Gordon Highlanders-1909 :
"To introduce into the philosophy of war itself a principle of moderation would be an absurdity. We, therefore repeat our proposition that war is an act of violence
which in its application knows no bounds."
The author cites with approval General von der Goltz, p. 112:
"A state is not justified in trying to defend itself with
only a portion of its strength, when the existence of the

whole is at stake."
Article 49 of the Declaration of London, says :
"As an exception, a neutral vesS,el

which would

be liable to condemnation may be destroyed, if the observance of Article 48 would involve danger to the safety

of the warship or to the success of the operations in
which she is engaged at the time."
Grotius in "Rights of War and Peace" :
Page 76: "It has already been proved that when our
lives are threatened with immediate danger, it is lawful

to kill the aggressor, if the danger cannot otherwise be
avoided.

* We must observe that this kind of

defense derives its origin from the principle of self- pre-

And the same is valid in regard to acts of officials or
other individuals committed by command or with the
authorization of a government."

servation, which nature has given to every living
creature, and not from the injustice or misconduct of the
aggressor . . . For I am not bound to submit to the
danger or mischief intended, any more than to expose

myself to the attacks of a wild beast."
Page 77: "Thomas Aquinas, if taken in a right sense,
has justly observed, that in actual self-defense, no man
can be said to be purposely killed. Indeed, it may sometimes happen that there is no other way for a person to
save himself, than by designedly doing an act, by which
the death of an aggressor must inevitably ensue. Yet
here the death of any one was not the primary object intended, but employed as the only means of security,
which the moment supplied."
Page 85: "What has been already said of the right
of defending our persons and property, though regarding chiefly private war, may nevertheless be applied to
public hostilities, allowing for the difference of circumstances."

STATE NOT RESPONSIBLE FOR LOSSES OF FOREIGN
SUBJECTS THROUGH LEGITIMATE ACTS OF
MILITARY OR NAVAL FORCES

Oppenheim, Int. Law, (Vol. 1, Page

"But it must be specially emphasized that a State
never bears any responsibility for losses sustained by
foreign subjects through legitimate acts of administrative
officials and military and naval forces. Individuals who

enter foreign territory submit themselves to the law of
the land, and their home state has no right to request
that they should be otherwise treated than asthe law of
the land authorizes a state to treat its own su1.)jec's."
Mr. Cass, Sec. of State to Mr. Burns, M. C., April

154)

"An act of a State injurious to another State is never-

theless not an international deliquency, if committed
neither wilfully and maliciously, nor with culpable negligence. Therefore, an act of a State committed.by right

or prompted by self-preservation in necessary self-defense does not contain an international delinquency,
however injurious it may actually be to another State.

26, 1858:

"When Mr. Butts domiciled himself in Nicaragua, he
knew that the Republic was in a state of war, and assumed therefore the necessary hazards which attend the
residence even of a neutral in a belligerent country. In
estimating these hazards, he probably weighed against

them the profits which he hoped to derive from this
business, and if he has been disappointed in his expectations, this government can only lament that it is
unable to afford him any remedy."

Mr. Seward, Sec. of State to Count Wydenbruck, Austrian
Minister, Nov.

Oppenheim Int. Law, (Vol. 1, Sec.

163) :

16, 1865:

"It is believed that it is a received principle of public
law, that the subjects of foreign powers domiciled in a

country in a state of war, are not entitled to greater
privileges or immunities than the other inhabitants of
the insurrectionary district. If, for a supposed purpose
of the war, one of the belligerents thinks proper to de-

stroy neutral property, the other cannot legally be regarded as accountable therefor. By voluntarily remaining in a country in a state of civil war, they must be held

to have been willing to accept the risks as well as the
advantages of that domicile. The same rule seems to
be applicable to the property of neutrals, whether that

CHARACTER OF WAR

of individuals or of governments in a belligerent country.

It must be held to be liable to the fortunes of war."
Mr. Fish, Sec. of State to Mr. Niles, Oct. 30, 1871:
"It is an undoubted principle of public law that when
one power, in the exercise of its sovereign rights, deems
it proper to exercise acts of hostility against the territory
of another, the citizens of a foreign state, residing within

the arena of war, whose property May be injured or
destroyed during the war, have no right to demand com-

pensation on the ground of their being citizens of a
third power, for losses which the necessity of war may

bring upon them in common with the citizens of the
state invaded."

Two speeches by David Urquhart (Jan. 20 and 27, 1862) :
THE RIGHT OF SEARCH

Page 31: "A declaration of war is a sentence of
deatha sentence of death pronounced by one people
against another people. If so, then it follows that you
recognize that that awful sentence shall only issue justly,
and then that no one shall interfere to interrupt the exercise of the means by which it shall be carried into execution."
* * * "Having come to the decision to pronounce

that sentence against another people, we should be
traitors to the law and not only to the law but to ourselves, if we suffered any one to come between us and
the execution of that necessary duty."

Statement of Spanish Treaty Claims Comm., April 28, 1903:

(8) . . . "It is undoubtedly the general rule of
international law that concentration and devastation are
legitimate war measures. To that rule aliens as well as

subjects must submit and suffer the fortunes of war.
The property of alien residents, like that of natives of
the country, when in the 'track of war,' is subject to
war's casualties, and whatever in front of the advancing
forces either impedes them or might give them aid when

appropriated, or if left unmolested in their rear might
afford aid and comfort to the enemy, may be taken or
destroyed by the armies of either of the belligerents ; and
no liability whatever i. understood to attach to the government of the country whose flag- that army bears and
whose battles it may be fighting."

Thomas Waraker, L.L.D., Barrister at Law (Page 20)
"NAVAL WARFARE OF THE FUTURE"

"War is the state of nations contending in arms. The
contention i s, therefore, one of force, not of right, and
each must put forward such force as it possesses in such
mode as it deems most advantageous to itself, i. e., as
will put the greatest amount of pressure upon the oppon-

ent to reduce him to submission."
Page 56: "War is not a game which is played according to certain rules for the amusement of spectators, or
a trial of skill in which the performers are to be handicapped and placed at the outset as nearly as possible
upon an equality, but a life and death struggle, in which
each side must and will, and ought to put out his entire
strength in the way that he can best use it, and any previous engagements not so to use it are worthless and

void. The only rule of war is the rule of winning campaigns. No one`will, it is to be presumed, deny that war

is a contest of force. To talk of a contest of force in
which either side is not to use his force is a contradiction
in terms."
Page

58:

"All

unnecessary infliction of suffering is

wanton, and it must be unnecessary, if it produce no
result. The warrior has to ask himself, not if a given
course of action will cause suffering, but whether it will

produce the effect for which he adopts the actionviz.
the reduction of his opponentand. will do so at the
least possible cost to himself. Criterion of the legality
of warlike measures, as between the belligerents, there

is noneof the moral justification there is but one

Phillimore Int. Law, (Vol. 3, Page

114) :

"War is a lawful mode of obtaining redress and adjusting differehces between Independent States, and as
this end requires that compulsory means of destruction
and distress should be inflicted upon the persons and
property of the enemy, no neutral state has a right, for
the sake of private advantage, to prevent these compulsory means from producing their effects."
Page 115; "The rules, and principles of war, are the
same . . . whether it be carried on by sea or by land."

RISKS OF NON-COMBATANTS

that above statedthe productive character of the course
adopted."

"War itself is so tremendous an evil that.
if its existence can be justified, all modes of carrying
it into effect must be justifiable."
Page

67:

Thomas Gibson Bowles, M. P., London, 1900 (Page 20)
THE DECLARATION OF PARIS OF 1856

"The final object and end of all warfare is to reduce
the enemy to submission ; and unless the operations of
naval warfare can be made so to act upon the enemy as
to diminish his material resources for the continuance of
the war, so to injure him so to produce weakness and
weariness, and so to increase that weakness and weari-

ness as to bring him nearer to submissionunless this
effect be caused, the operations themselves, however
brilliant or glorious, must be held to hay
object."

failed in their

Halleck's Int. Law 4th Ed., (108, Page

2) :

"They, therefore, have no right to take the lives of
* * * unless the same should be
nlecessary for the object of the war." (Citing Vattel
non-combatants

Book III, ch 8 § 138; Wheat. Elem. Int. Law, pt. 4, ch 2,
§2; Rutherworth, Institutes b. 2 ch 9 § 15 ;Burlamaqui
c 5. pt. 4 ch 6; Comn v. Blackburne, Doug. Rep. p. 644;
De Felice, Droit de Ia. Nat. C. 2 lec. 25, Riqueltm, Derecho Pub. lib. 1, tit. 1. cap. 12).

Grotius, "Rights of War and Peace, (Page 293) :
"It frequently occurs as a matter of enquiry, how far
we are authorized to act against those, who are neither
enemies, nor wish to be thought so, but who supply our
enemies with certain articles. . .
As to conveying
articles of the first kind, it is evident that any one must
be ranked as an enemy, who supplies an enemy with the
means of prosecuting hostilities."
"If that
power, for instance, ig besieging a town, or block ad.ng
a port, . . . the person who furnishes the enemy
.

with supplies, and the means of prolonged resistance,
will be guilty of an aggression and injury towards that
power."

Thomas Gibson Bowles, M. P., (Page 68) :
DECLARATION OP PARIS

DUTIES OF NEUTRALITY
The U. S. vs. Steamship "Meteor," closing argument in behalf of the U. S., by Sidney Webster, (1866), quotes (page 11)
an article in the London Law Times, for Sept. 19, 1863:
"If a nation permits anything to be organized and
constructed within its boundaries, what is plainly designed for the use of one belligerent, it is guilty of a
very clear breach of neutrality against the other. By a
loose, and, as we believe, highly improper reading of the

law, it has been taken for granted that it is not against
the principles of interntaional law for a neutral power
to permit its subjects to sell munitions of war to a belligerent power. It is held that a corttrary principle wou'd
interfere too much with the ship-builders of the Mersey
and the Clyde, and the gun-makers of Birmingham, to
be tolerated. But it appears to us that there are some
things which in the estimation of rightly thinking men,
may be of even higher importance than the prosperity
of the Birkenhead ship-owners or the Birmingham gunmakers, and, among them we may be permitted to reckon
a reverence for law and the preservation of the national
honor. It may be that, if we were to put the spirit of the

law into forcethat spirit which arms the proclamation
of the Queen when she prohibits the sale of all munitions

of warby preventing ships ,evidently built for warlike
purposes, and cargoes of lethal weapons, except upon
proof that they were not to be used in a quarrel as to
which we are neutral ; it may be that in such a case a

"Neutrality consists in standing utterly aloof from
taking any part whatever in a struggle between belligerents. It consists not in impartiality in the conflict but

in abstention from it ; and this shows us at once that
a neutral cannot have any rights at all as a neutral, for
no rights can accrue to him out of a conflict with which
he has nothing to do. He retains the common rights that
all nations have in time of peace; he neither does nor
can gain any new rights, but he has also, arising out of
the war, the obligation of Tiis neutrality, which lies in
this, that he must now exercise his common rights so as
not to take any part in the war. He has no new rights,
but he has a new duty, that of complete abstention from
the conflict, and unless he fulfills that duty, he ceases to
be neutral. * * * The rights of a state fighting for
national existence are admitted and declared to be superior to the convenience of a state trading for individual
profit. . . The principle is, therefore, clear, that
when a war arises even the common rights of the neutral

are subject to limitation in their exercise so far as that
limitation has now become necessary from the new state
of things, in order to secure that the neutral shall be neu-

tral and shall abstain from the war."
Halleck's Int. Law :

"Nor is it correct to say that if the neutral merchant
is willing to incur the risk of capture and condemnation,
he may engage, with entire siecurity of conscience, in a
trade forbidden by the law of nations. The act is wrong

few men would have to get rich more slowly ; but, at any
rate, the nation would be saved from the imputation of

in itself, and the penalty results from this violation of
moral duty, as well as of law. The duties imposed upon

the guilt of blooda guilt which is equally abhorrent

the citizens and subjects flow from exactly the same prin-

where it sullies the reputation of a man or of a people."

ciple as those which attach to the government of the

neutral states. 'Where he supplies to the enemy,' says
Duer, "munitions or other articles contraband of war, or
relieves with provisions, or otherwise, a blockaded port,
although his motives may be different, his moral delinquency is precisely the same. By these acts he makes
himself personally a party to a war, in which, as a neutral, he had no right to engage, and his property is justly
treated as that of an enemy. (Citing Duer, On Insurance, vol. 1, pp. 531, 754, 755, 772-775 ; the 'Shepherdess',

5 Rob. 264; Pistoye et Duverdy, Traite des' Prises, tit.
6 ch. 2 sec. 3; Hautefeuille, Des Nalions Neutres, tit. 15.
By George Bemis, Boston, 1866, (Page 176)
AMERICAN NEUTRALITY

"I cannot sympathize with that defense of commerce

which would justify the purvit of neutral gain even
to selling weapons of war on the battlefield to coxt'batants whose hands are red with slaughter. If such
sort of traffickers insist upon the right of plying their
vocation, I say, let them be subjected to the hazards and
hardships of war. In my view, a transport or a store-

ship is as much an auxiliary to war as a fighting-ship
made such by means of the stores and troops which that

transport is intended to supply, and if we forbid the
furnishing of the latter, to preserve neutrality, why not
the former as well?
"Some may reply to this suggestion, perhaps, that the
supplying of transports to a belligerent falls within that
class of things which a neutral may lawfully do, provided he does it for both parties indiscriminately. That
seems to have been President Pierce's point of view, in
his annual message of December, 1854. But I protest
against this whole notion of balancing a wrong done to

one party, by holding out that we are ready to do the
same thing impartially for the other. So far as Ameri-

411

cati law has lent an ear to this doctrine, it has been pretty
well exposed in the 'Alexandra' law hearing in a discus-

sion over the "Estrella" case between Baron Bramwell
and Sir Roundell Palmerthe latter of whom stood up
for Judge Livingston's opinion in that case as long as

he could (`Alexandra' Law Hearing, pp. 328, etc.).
Sir Robert Phillimore says very tersely and very truly
of this sort of balancing of wrongs, 'that it may be impartial, but it certainly is not neutral." (3 Corn. Int.
Law, p.221).
Page 179: "Need I ask, thentaking warning from
the late experience of the Confederate rebellion and its
almost indifinite prolonetion through the aid furnished
our seccessionists by British Enfield riflles and British
Whitworth and even Armstrong cannonswhether it is
worth our while to any longer advocate a doctrine of
neutrality, fraught with such pernicious consequences to
us as belligerents ?"

Stat. of U. S. 1838, ch. 31, (U. S. Statutes at Large, Vol. 5,
page 212, § 1) :
"Be it enacted, etc., that the several collectors, naval
officers, etc., of the United States, shall be * * required to seize and detain any vessel, or any arms or
munitions of war, which may be provided or prepared
for any military expedition or enterprise against the territory or dominions of any foreign prince or state, etc."

Senator Morton, Jan 10, 1870, introduced similar bill 41
Cong., 2d session.

Thomas - Waraker, L.L.D., (Page 119)
NAVAL WARFARE OF THE FUTURE

"The neutral asserts that he has no interest in the
war, and therefore ought to be unaffected by it. But

in the first place it is difficult to see how he can be entirely unaffected. He must be affected as regards blockades and carriage of contraband. * * * He gives
himself interest in, and he makes himself affected by
the war by carrying the belligerents' commerce, and if
he claims to protect that commerce, he makes himself
so far a participator in the war, and passes out of the
true character of a neutral. In whatever degree it is
important for the belligerent that he should capture his
enemy's property, in the same degree its protection by
the neutral is detrimental to him, and obstructive of his
military operations. The neutral can only be absolutely

is a claim to obstruct the one and to aid the other party
and is an interference in the operations of war."

unaffected by the war if he keep himself clear of all
intercourse with either belligerent."
Page 120: "The province of the neutral is not to interfere in the operations of either belligerent. The very
term 'neutral' implies that no aid is to be given to either
of the conflicting parties. Any such aid involves partici-

Mr. Paul Fuller in the Atlantic Monthly, February, 1915,
page 145, collates some of the authorities on neutrality as follows :

"Vattel defines neutrality as strict impartiality toward
the belligerents in what relates 'solely to -war', with the
obligation to give no assistance, nor furnish anything of
direct use in war. Hiibner defines it as complete inaction with reference to the war and exact impartiality
with regard to the means of carrying it on.
"Hautefeuille defines the neutral nation as that which
abstains from takifig part in the conflict, and from any
act of hostility, direct or indirect.

pation in the strife, and to obstruct one is to aid the

"Bluntschli defines neutral states as those who take
no part in military operations in favor of or tothe detriment of either of the belligerents, and neutrality," he
adds, "consists in maintaining peace on one's own ter-

other. If you and I were fighting, Jones would not be

ritory, and taking no part in the war between third

neutral if he struck me, or if he saved you from my
blow. Nor would it mend the matter that he knocked
you down too, or shielded me too, from your blows.

parties.

He would probably only prolong and exacerbate the contest and enlarge its field, as whichever of us might prove
the victor would desire to thrash him for his pains.

"Similarly in International contests, neutrality consists, not in equally obstructing or giving equal aid to
both belligerents, but in absolute non-interference. The
aid or the obstruction cannot be equal to both. It must

act adversely to the stronger and favorably to the
weaker power, as it must diminish the ratio of the superiority of the former.

"For the neutral to claim the right to protect the
property of the belligerent from the attacks of his enemy

"Hall tell us 'The Neutral State is bound not to commit any act favoring one of two belligerents in matters
affecting their war' . . . Jefferson . . . lays down the
same rule, that 'no succor should be given to either in
men, arms, or any thing else directly serving for the
war'. Mr. Fuller then cites Lord Howick that 'a strict
and honest impartiality, so as not to afford advantage in
the war to either, and so as not to render assistance to

one of the belligerents in escaping the effect of the
other's hostilities' is what honest neutrality consists of."

GROWTH, PROGRESS AND CHANGES OF
INTE`RNATIONAL LAW

J. Mac Donnell, Esq., Master of the Supreme Court. Jour42 (1898) page 787:

nal Royal United Service Inst. Vol.

RECENT CHANGES IN THE RIGHTS AND DUTIES OF BELLIGERENTS

Oppenheim Int. Law, (§

34, vol. 1) :

"The growth of the law through custom goes on very
slowly and gradually, very often too slowly to be able to
meet the demands of the interests at stake. New in-

terests and new inventions very often spring up with
which customary law cannot deal. Circumstances and
conditions frequently change so suddenly that the ends
of justice are not met by the existing customary law of
a state."

AND NEUTRALS ACCORDING TO INTERNATIONAL LAW

"International law consists of a collection of usages,
practices, traditions, rules and conventions, never fixed,
though endeavors are constantly being made to stereotype this collection. Never was this state of transition
more marked, never were changes more rapid and frequent, than at present. Internationl law is not a mere
store-house of rules coming down from a far-off past,
it is a living and a growing law,...some parts of it once im-

"Every custom has originated in a. repetition of urtain actions under given circumstances, and the action
was first introduced as appearing to the actors to be expedient as tending to a result which they desired to ac-

portant are in process of decay ; in other parts is life
and the promise of it. International law has no recognized organ or mouth-pieceno Parliament or Congress
to declare, or amend its measures. Yet it changes
sometimes rapidly ; never more rapidly than today. By
few expounders of international law is sufficient notice
taken of this element of change. And so there is an
international law known to soldiers, diplomatists, and

complish, and the same expediency leads to a repitition of
the action, until at length it forms a custom and is acted

taught in books."

Thomas Waraker, .L.L.D., (Page

26) :

"NAVAL WARFARE OF THE FUTURE"

men of affairs, and another partly obsolete but still

upon without direct reference to its expediency, but
simply because it is the custom.
Page 28: "Thus, if action be taken opposed to general principles, it will be endeavored to show that special
circumstances take the particular case out of the scope
of one general principle, and cause another to be applicable, as Sir W. Scott did when dealing with the English
orders in Council, 1806, 1809. The confiscation of neu-

MR. BRYAN TELLS HIS REASONS FOR
LEAVING CABINET

Differs with Wilson on Question of International Commission

tral goods was contrary to the general principle, but

to Settle Trouble with Germany and as to Warning Americans

Napoleon's Berlin decree having made them under certain circumstances confiscable, the English act on Froceeded on the principle of reciprocity and reciprccity
was a principle recognized by International Law."

many was started on its way over the wires today, Mr. Bryan gave
out this statement :

Against Sailing on Belligerent Ships.

Washington, June 9.Just as the new American note to Ger-

"My reason for resigning is clearly stated in my letter of
resignation, namely, that I may employ as a private citizen the

U S. SHOULD MAKE ARBITRATION OFFER.

means which the President does not feel at liberty to employ. I
honor him for doing what he believes to be right, and I am sure
that he desires, as I do, to find a-peaceful solution of the problem
which has been created by the action of the submarines.

"This plan was offered to all the nations without any exceptions whatever, and Germany was one of the nations that accepted
the principle, being the twelfth, I think, to accept. No treaty was

"Two of the points on which we differ, each conscientious

should stand in the way when both nations indorsed the principle.

in his convietion, are :
"First, as to the suggestion of investigation by an international
commission; and,

"Second, as to warning Americans against traveling on belligerent vessels or with cargoes of ammunition.

SAYS TREATY RULES APPLY TO GERMANY
"I believe that this nation should frankly state to Germany
that we are willing to apply in this case the principle which we
are bound by treaty to apply to disputes between the United
States and thirty countries with which we have made treaties

providing for investigation of all disputes of every character and
nature.

"These treaties, negotiated under this Administration, make
war practically impossible between this country and these thirty
governments, representing nearly three-fourths of all the people
of the world.

"Among the nations with which we have these treaties are
Great Britain, France and Russia. No matter what disputes may
arise between us and these treaty nations, we agree that there
shall be no declaration of war and no commencement of hostilities
until the matters in dispute have been investigated by an international commission, and a year's time is allowed for investigation
and report.

actually entered into with Germany, but I cannot see that thaA
"I do not know whether Germany would accept the offer, but
our country should, in my judgment, make the offer.
"Such an offer,.if accepted, would at once relieve the tension
and silence all the jingoes who are demanding war. Germany has
always been- a friendly nation, and a great many of our peop'e
are of German ancestry. Why should we not deal with Germany
according to this plan to which the nation has pledged its support.

"The second point of difference is as to the course which
should be pursued in regard to Americans traveling on belligerent ships or with cargoes of ammunition.
"Why should an American citizen be permitted to involve his

country in war by travelling upon a belligerent ship when he
knows that the ship will pass through a danger zone?
"The 'question is not whether an American citizen has a right,
under international law, to travel on a belligerent ship; the question is whether he ought not, out of consideration for his country,

if not for his own safety, avoid danger when avoidance

is'

possible.

"It is a very one-sided citizenship that compels a government
to go to war over a citizen's rights and yet relieves the citizens of
all obligations to consider his nation's welfare.

"I do not know just how far the President can legally go in
actually preventing Americans from traveling on belligerent
ships, but I believe the government should go as far as it can,
and that in case of doubt it should give the benefit of the doubt
to the government.

PRECEDENT FOR CAUTION TO PUBLIC
"But even if the government could not legally prevent citizens
from traveling on belligerent ships, it could, and in my judgment,
should earnestly advise Americans not to risk themselves or the

"First, in suggesting the submission of the controversy to
investigation, or

"Second, in warning the people not to incur the extra hazards
in traveling on belligerent skips or on ships carrying ammunition.

peace of their country and I have no doubt that these warnings
would be heeded.

"President Taft advised Americans to leave Mexico when
insurrection broke out there, and President Wilson has repeated
the advice. This advice, in my judgment, was eminently wise, and
I think the same course should be followed in regard to warning
Americansto keep off vessels subject to attack.
"I think, too, that American passenger ships should be prohibited from carrying ammunition. The lives of passengers ought

not to be endangered by cargoes of ammunition, whether that
danger comes from possible explosions within or from possible
attacks from without. Passengers artd ammunition should not
travel together. The attempt to prevent American citizens from
incurring these risks is entirely consistent with the effort which
our Government is making to prevent attacks from submarines.

RIOT WARNING A FAMILIAR ILLUSTRATION

"The use of one remedy does not exclude the use of the
other. The most familiar illustration is to be found in the actirm
taken by municipal authorities during a riot. It is the duty of
the Mayor to suppress the mob and to prevent Violence, but he
does not hesitate to warn citizens to keep off the slerets during
the riots. He does not question their right to use the streets,

but for their own protection and in the interest of order, he
warns them not to incur the risks involved in going upon the
streets When men are shooting at each other.

"The President does not feel justified in taking the action
above stated. That is, he does not feel justified

WILL PUT WILSON'S ATTITUDE UP TO PUBLIC
"And he may be right in the position he has taken, but as a
private citizen, I am free to urge both of these propositions and
to call public attention to these remedies in the hope of securing
such an expression of public sentiment as will support the President in employing these remedies, if, in the future, he finds it
consistent with his sense of duty to favor them."
Secretary Bryan said, in giving out his statement, that while
it mentioned only two points of difference, he reserved any others
for presentation in the future.

STATEMENT BY PROF. GEORGE W. KIRCHWEY
Former Dean of the L,aw School, Columbia University, New
York; Editor Historical Manuscripts for the State of New York:

"It seems to me that Mr. Bryan's retirement from the Cabinet
in the present crises is little short of a calamity, as it indicates
the triumph of what a morning newspaper has called the 'war
party' in the Administration at Washington.

"As I interpret the expression, it doesn't mean that the President or any of his advisers are bent on war with Germany. We
know, on the contray, that they are sincerely desirous of keeping

the United States out of the conflict raging in the other half
of the world.

"What it seems to signify is that the party that has prevailed
over Mr. Bryan will entertain no way of dealing with Germany
but the strenuous waythe German Government must squarely
back down and accept the American interpretation of her rights
as a belligerent or count us among her enemies.

"Under the circumstances, then, I regard Mr. Bryan's resignation as a wise and patriotic act.

"This is a high and mighty attitude, and will be warmly wel-

"It is in effect an appeal to the people, who are now, for the
first time, put in a position to determine whether they want a
strenuous policy which is almost sure to lead to war or a policy
of moderation and conciliation which may secure us our rights

comed by our militant pro-Britons, who want to drag us into

without war.

the war, as well as by multitudes of peace-loving Americans who

"After all, the issue of peace or war for the United States is
too big an issue to be left to any one man or any group of men
to determine. There is still time for the American people to make

identify national honor and dignity with a belligerent attitude
toward foreign Powers with which we are at variance.
"Personally, I believe the German position to be indefensible,
just as I regarded the destruction of the Lustania as a gross violation of neutral and human rights.

"But the task of statesmanship is not to give forcible and
threatening expression to our sentiments of wrath and indignation; still less to demand prompt recognition of our principles
of international morality.

"It is rather to secure our rights by means which will not
bring greater calamities upon us and upon the world.

"Our true position in international affairs is that of trustee
or guardian of neutral rights and of the sacred rights of humanity
the world over.

"The notion that this duty can best be fulfilledthe notion
that it can be fulfilled at allby adopting a course which leads
to our embroilment in the war, is a fatal illusion. There can be
no more certain way of betraying those rights.

"There are other waysways to which we have again and
again committed ourselvesby which our rights and the human
rights which we hold in trust may be secured. Where is our
'American policy' of arbitration in this crisis?
"Why act alone instead of calling a conference of the neutral

Powers to deal with a question which concerns them quite as
much as it does us?

g=111

themselves heard."

REAL ISSUE BETWEEN FORCE AND PERSUASION

Mr. Bryan's Statement
Published June 11, 1915

But the real issue is not between persons, it is between sys-

tems; and I rely for vindication wholly upon the strength of
the position taken.
"Among the influences which governments employ in dealing

To the American People :

"You now have before you the text Of the note to Germany
the note which it -would have been my official duty to sign had I
remained Secretary of State. I ask you to sit in judgment upon
my decision to resign rather than to share responsibility for it.
"I am sure you will credit me with honorable motives, but that
is not enough. Good intentions could not atone for a mistake
at such a time, on such a subject and under such circumstances.
If your verdict is against me, I ask no mercy; I desire none if I
have acted unwisely.
"A man in public life must act according to his conscience, but
howiever conscientiously he acts, he must be prepared to accept
without complaint, any condemnation which his own errors may
bring upon him; he must be willing to bear any deserved punishment, from ostracism to execution. But hear me before you pass
sentence.

with each other, there are two which are pre-eminent and antagonisticforce and persuasion. Force speaks with firmness
and acts through the ultimatum ; persuasion employs argument,
courts investigation and depends upon negotiation.

"Force represents the old systemthe system that must pass
Persuasion represents the new systemthe system that

away.

has been growingall too slowly, it is true, but growingfot
nineteen hundred years.

`:In the old system war is the chief cornerstonewar which
at its best is little better than war at its worst ; the new system
contemplates an universal brotherhood established through the
uplifting power of example.

"If I correctly interpret the note to Germany it conforms to
the standards of the old system rather than to the rules of the
new, and I cheerfully admit that it is absolutely supported by
precedentsprecedents written in characters of blood upon almost
every page of human history.

"The President and I agree in purpose : We desire a peaceful
solution of the dispute which has arisen between the United States
and Germany. We not only desire it, but with equal fervor -We

"Austria furnishes the most recent precedent. It was Austria's
firmness that dictated the ultimatum against Servia, which set
the world at war.

pray for it. But we differ- irreconcilably as to the means of

"Every ruler now participating in this unparalleled conflict has
proclaimed his desire for peace and denied responsibility for the
war, and it is only charitable that we should credit all of them
with good faith. They desired peace, but they sought it according to the rules of the old system. They believed that firmness
would give the best assurance of the maintenance of peace, and

securing it.

"If it were merely a personal difference it would be a matter

of little moment, for all the presumptions are on his sidethe
presumptions that go With power and authority. He is your
President; I am a private citizen, without office or title, but one
of the hundred millions of inhabitants.

faithfully following precedent they went so near the fire that
they were, one after another, sucked into the contest.

"Never before have the frightful follies of this fatal system
been so clearly revealed as now. The most civilized and en-

reached, or at least until, the stress of war over, we can appeal
from Philip drunk with carnage to Philip sobered by the memories of an historic friendship and by a recollection of the innumerable ties of kinship that bind the Fatherland to the United

lightenedaye, the most Christianof the nations of Europe

States.

are grappling with each other as if in a death struggle.

"Some nation must lead the world out of the black night of
war into the light of that day when 'swords shall be beaten into

"FOLLIES, OF FATAL SYSTEM REVEALED"

"They are sacrificing the best and bravest of their sons on the
battlefield ; they are converting their gardens into cemeteries and
their homes into houses of mourning ; they are taxing the wealth

of today and laying a burden of debt on the toil of the future ;
they have filled the air with thunderbolts more deadly than those
of Jove, and they have multiplied the perils of the deep.

"Adding fresh fuel to the flame of hate, they have daily devised new 'horrors, until one side is endeavoring to drown noncombatant men, women and children at sea, while the other side
seeks to starve non-combatant men, women and children on land.

"And they are so absorbed in alternate retaliations and in
competitive cruelties that they seem, for the time being, blind to

the rights of neutrals and deaf to the appeals of humanity. A
tree is known by its fruit. The war in Europe is the ripened
fruit of the old system.

"This is what firmness, supported by force, has done in the
Old World. Shall we invite it to cross the Atlantic? Already

the jingoes of our country have caught the rabies from the
dogs of war ; shall the opponents of organized slaughter be silent
while the disease spreads ?

U. S. SHOULD "LEAD WORLD OUT OF WAR"
"As an humble follower of the Prince of Peace ; as a devoted

believer in the prophecy that "they that take the sword shall
perish with the sword," I beg to be counted among those who
earnestly urge the adoption of a course in this matter which will

leave no doubt of our Government's willingness to continue
negotiations with Germany until an amicable understanding is

plowshares.'

"Why not make that honor ours? Some daywhy not now-the nations will learn that enduring peace cannot be built upon
fear, that good will does not grow upon the stalk of violence.
Some day the nations will place their trust in Love, the weapon
for which there is no shield ;-in love, that suffereth long and is
kind ; in love, that is not easily provoked, that beareth all things,
believeth all things, hopeth all things, endureth all things ; in love
which, though despised as weakness by the worshippers of Mars,
abideth when all else fails."W. J. BRYAN.

Excerpts From

OFFICERS AND DIRECTORS
JEREMIAH A. O'LEARY, Lawyer

President

New York City

Constitution and By-Laws
OF THE

FREDERICK F. SCHRADER, Journalist .1st Vice-Pr'nt

New York City

American Truth Society

J. LORING ARNOLD, Professor of Engineering, 2d Vice-

President.

New York City

JAMES F. QUINN, Physician.. ..... 3d Vice-President
New York City
Treasurer
President Commonwealth Trust Co., Hoboken, N.J.
GUSTAV DOPSLAFF, Banker

The name of this Society shall be,

"American Truth Society."

GEORGE WHITEFIELD MEAD, Ph.D., Editor ..Secretary

New York City

MEMBERSHIP
TRUSTEES
JEREMIAH A. O'LEARY, L.L.B.
Mr. FREDERICK SCHRADER

American citizens only are eligible to membership
in this Society. Any man or woman over the age of
eighteen years is eligible to membership in the American Truth Society.

GEORGE WHITEFIELD MEAD, Ph.D.

JAMES F. QUINN, M.D.

ADMISSION TO MEMBERSHIP

Mr. FERDINAND HANSEN

Each member must sign an application blank,
The above gentlemen are representative cilmertcans. They are men of the highest standing in
their various professions and occupations.

agreeing to conform to the Constitution and By-Laws
of this Society. All application blanks must be filed
with the New York Office or Cential Branch of this
Society.

FLAGS

No flags save the American flag shall be permitted
at public or private function of this Society. No in
signias of any foreign country shall be permitted at
any public or private function of this Society.

_kmerican Truth Society
Organized January 18, 1912, at Hotel
Astor, New York City. Incorporated

cebruary 9, 1912, under the Laws
of the State of New York.

PUBLIC SPEAKERS

No public speaker, except an American citizen,
shall be permitted to speak at any public function of
t he American Truth Society.

INCORPORATORS
C

L. KEHRER, Consulting Engineer, New York
City.

CHARLES NOONAN, Silk Merchant, New York
City.

DISCRIMINATION
No branch, central or local, of the American Truth
Society shall discriminate in its membership against
any American citizen by reason or because of his or
her race, creed or color.

LAJOS STEINER, Lecturer and Writer, Brooklyn
N. Y.
GEORGE F. EWAID, Lawyer, New York City.
BENEDICT S. VITALE, Lawyer, New York City.
OBJECTS

"To propagate a spirit of pure Americanism; to

Membership Application of
Who is an American Citizen

Business Address
Who Agrees to the Constitution and By-Laws

Nature of Applicant's Occupation
Fill out and send $2.00 Annual Dues, payable in advance
Send twelve cents in postage for Plan and Scope

AMERICAN TRUTH SOCIETY

1133 Broadway

New York City

preserve the traditions of the United States inviolate;
to oppose and resist by truth all attempts of corporations, societies and individuals to dominate the public
opinion of the United States for the purpose of discriminating in the interests of any one race by means
of legislation, literature, education or organized propaganda; to propagate the History of the United States
and the States comprising the United States amongst
the people of the United States, and to combat with
truth all attempts to garble, falsify, misrepresent or

suppress the History of the United States or the
States comprising the United States, anywhere within
the United States."
(Certificate of Incorporation.)

THE AMERICAN TRUTH SOCIET
IS AN ORGANIZATION WHICH
DOES THINGS
Note a few:
It was organized two years before the war to

the influences
finance.

which are

now

enslaving

American

It conducted the first big neutrality mass-meeting in
New York City after the outbreak of the war, and
inspired numerous others throughout the United States.

It conducted a public lecture by its President at Carnegie Hall, at which the press was exposed by stereoptican pictures and headlines.

For four successive weeks, it conducted public forums
at the Cort Theatre, exposing the methods of the newspapers, and attacking the export of arms, ammunition
and dumdums.

It has organized branches throughout the United States.

It has sent broadcast thousands of copies of its Plan
and Scope, a pamphlet which contains alarming and
convincing facts about the pernicious

British influences in our country.

operations of

It has circulated over 40,000 copies of the speech of
Hon. Charles Nagel on neutrality.
It has divided the Congressmen and United States
Senators into three classes: 1st, those who are right;
2nd, those who are wrong, and 3rd, those who are
afraid to say whether they are right or wrong.
It is planning to enter the national campaign of 1916,
to insure the election of public men who have been
friends of real neutrality, truth, justice and peace.

It inspired and gave enthusiastic support to the great
mass-meeting of the Friends of Peace" at Madison
Square Garden, New York City, June 24, 1915.
It circulated seventy thousand copies of The Peril of

American Finance, a pamphlet which made our financial
agents more conservative.

Our proudest boast and most popular asset is that the
Anglo-Press has attacked and misrepresented us to the
American people.

WHAT HAVE YOU DONE?

New York,

1915

I hereby subscribe
Dollars to the American Truth Society,
payable when the Society shall have received $5,000 from a friend who has promised to donate the same to it to organize branches throughout the United States.
Name.
Address.
Business.
-

Make checks pseyable to GUSTAV DOPSLAFF, Treasurer, American Truth Society, 1133 Broadway,
v York City.
(OVER)

JUSTKE
PEACE.

TRUTH

Dear Friend:

I wish to personally endorse to you the campaign of the American

Truth Society to raise $5000.00. A friend has offered $5000.00 to
the Society on the condition that it raise $5000.00 of its own accord.

I am doing all I can to help the American Truth Society and
wish to personally call to your attention the work it is doing. I trust
you may be able to assist.

0
70 OAKWOOD AVENUE
UPPER MONTCLAiR
NEW JERSEY

LUIS JACKSON

)Af
Oppose Loans to Foreign Governments
1 Talking Fallacies. Redfield Slow
Luis Jackson, of Upper Montclair, N. J., formerly Railroad

Industrial Development Commissioner and author of "Our

Export Trade," sends out the following:
James J. Hill, whom the financial ring is using as a stoolpigeon shrieked fallacies all the way from St. Paul to New York.
His business prognostications Since the Roosevelt panic of 1907
have be
other windy. Kissing does not go by favor in
the whert .narket. Demand is there. The foreign buyer pays
the exchange differences. Wheat now around $1.00 (Chicago)
and cotton around 10 cents should bring equal to German prices
namely about $1.50 and 15 cents respectively here. The British
want to pay not a European market price, but a contracted area
price.

President Wilson has his hands full. He is supposed to be
assisted on Commerce by William C. Redfield, Secretary of Commerce. Mr. Redfield has proved not big enough for the crisis;
he seems not sufficiently developed to apprehend what
a Minister of Commerce to a great nation stands for. Mr.
William G. McAdoo, Secretors}, of the Treasury is an able man.
I do not know his views, but he is given no rest by the financial
ring.

War is the golden harvest of neutrals. Mr. Redfield should
have seen to this. Neutrals should sell all the war supplies,
merchandise and agricultural products they can to all corners.
Sir Edward Grey has usurped, to his great credit, the position
of being our and other nations' temporary Minister of Commerce.
He tells Holland, Denmark, Norway, Sweden and the United
States of America how much and what business they will be
permitted to do.
In the Civil War our United States Supreme Court, may
it spread in principle throughout the world, ruled that shipments from England to Matamores, Mexico, an independent
sovereign State, for transhipment overland to the Confederate
States, must not be interfered with; even if it injured us, the
public law of nations must be upheld. Holland a rich country
can take and finance all our surplus wheat and cotton, sell same
to Germany and Austria, give us $1.50 and 15 cents, and get us
German Dye Stuffs for our closing industries. Our industries

down, except in a small section of the Eastern States, making
, are
ammunition and our banks in consequence are filled with money.
The American Locomotive Works only worked up to seventeen

per cent, of its capacity during the last fiscal year.

Few of our bankers are developed to far-sighted business
They see only the securing of immediate interest. Many
of them are mere usurers, while others are mere babies in the
grasp.

hands of the financial ring.

We can wait.

When the war is over we shall need all our surplus money
for our own manufacturers to push our export trade. If loaned
to foreign governments they will push their own and take over
our export trade with our money. Oppose all loans to European
countries. Call meeting to express opinion.
September 16, 1915.

ORGANIZED IN 1912

WO'

'q0-trntd °Po

fc.:1,

bt, ceo_

THE PERIL OF
American Finance
READ THIS CAREFULLY
To the Federal Reserve Bank Board,
Directors, Bankers, Bank Depositors, Public Officers, Newspapers,

Employers, Employees and
American Citizens generally

The British Raid upon Our Resources

"A STITCH IN TIME SAVES NINE"

American Truth Society
1133 Broadway

New York City

PriceFive cents per copy, or $2.50 per hundred

From New York Times, July 3, 1915

TO GET $100,000,000

E doubt if the American

BRITISH LOAN HERE

people share the inspired
idiocy of the military experts of

Morgan Group Willing to Take

Our newspapers who report Allied

War Issue.

losses on the front page and
manufacture Allied optimistic

From New York Times, Jul,, 3, 1915.

forecasts on their editorial pages

That Amount of the New

FRANCE TO APPEAL
FOR HOARDED GOLD

for the gratification of fools.
DO YOU KNOW
That Eastern financiers have already loaned to
the Allies from their proprietary banks $200,000,000
and are arranging to borrow $300,000,000 more of
your money solely for Great Britain?
DO YOU KNOW

Ask Citizens to Exchange
It for NotesPrivate Stock

is Over a Man.
I .1-11IS, July 2.The Itrivate stoek of

gold ATV France has been unofficially estlmated at from, 5,900,000,000 to 7.000,-

That material amounting to one billion five

,000,o00 franca ($1,000.000;000 to -$1.400.-

hundred million dollars in value has been contracted
for by the Allies with American manufacturers?

001,,000.)

The Government has decided to Invite
the,eifizens of France to exchange their
gold foi. notes, and to that end Finance
Minister Ribot has addressed,, a letter to
the RaM.:.- of France. suggesting that
special counters be set aside In the bank
in Paris and its branches throughout the
country for the receiving of gold from
citizens Who desire in this way to ren'deaf aurvice, spontaneously to -tlift:diational defense.

That, being now on a paper basis, the Allied
govvrnments cannot pay for these goods in gold
and are offering instead their promises to pay at
some future date, which promises are being discounted and rediscounted by American banks
throughout the country ?
DO YOU KNOW

Ifi addition to the banknote given in

Oxehange. fot this gold, each depositor

That the estimated profit of three hundred
treasuries of a few trusts and corporations while

lllreceiVe a certificate setting forth

million dollars on these war contracts goes into the

Will the American people thus risk
their money?
If the French people lack confidence
and hoard their gold, why should

legitimate business languishes, merchants are deprived of credit and labor of its ordinary employ-

seryice to the countty.

ment?

Americans extend credit to the allies?

From New York Evening Post, June 23, 1915

-$1EIMENTS TEEL.D DP.

cancellattou of Large Orders for Want
of Cash Payment.
'S.F.A.TTLE, June 22.--Canc,e11ation of large

'shipments of war materials for Russia, by

American. manufacturers who are caid
to be-unable to Qlgain cash payments for
their products 'became known to-day
when

the Great Northern Steamship

Company announced that the liner Minnesota probably will not include Vladivostok as a port of call on her next voyage.
The Minnesota was scheduled to sail
direct from Seattle to Vladivostok on
June 27, with practically a full cargo
for the Russian. Government. Seventyfive per cent. of these shipments have
been :cancelled by manufacturers, and it
Is said the Minnesota probably will follow her usual route to Hong Kong.

Our raw products, grain, cotton, copper, etc.,
are prevented from reaching neutral ports, while
By Grace
the material necessary for the
of
operation of our largest indusEngland
tries may only be imported on
sufferance or by the grace of a nation which without

our markets and our money could not carry on its
war another six months.
Exclusive sales of our raw and manufactured
products to a single customer, the profits resulting
therefrom and the various deQuestionable
Schemes

vices which this customer, with
the connivance of international

bankers, has concocted to postpone and finally at
its pleasure to avoid payment therefor, altogether
constitute a bunco operation compared with which
John Law's Mississippi scheme pales into insignificance.

DO YOU REALIZE
That unless our representatives at Washingto
who founded that great democratic institution, the
Federal Reserve Banking System in order to emancipate our merchants and borrowers generally from
the one-man power money trust, rouse themselw
to immediate action, it may soon be too late?
The domestic loans and deposits of these banks
which should, ordinarily, represent the legitimate
wealth and diversified business of the country is
even now in process of transformation and absorp-

tion into sinews of war for the Allied powers.
Under various disguises and the pretence of vast
and immediate profits the whole machinery of the
Federal Reserve Banks may soon be called upon

and utilized to discount hundreds of millions of
manufacturers and foreign mercantile paper now
held by outside banking institutions. Thus, asset

currency resulting from these discounts, will finally
be lodged in the hands of our people without notice

to them that its character has been changed and
that its value is dependent upon the issue of a war
in Europe.
DO YOU KNOW
That a similar transformation of the people's

deposits has already taken place abroad though

YOU REALIZE

CPO That when Premier Asquith said lately in

Parliament that "rather than sacrifice the cause of
liberty, the English would fight to the last drop of
blood and the last farthing of money," he meant

Inch, Russian and Italian blood and American
money?

To this conclusion it has come. An English
financial expert (Hector J. Boon) recently admitted

to a representative of the New York World that
"the Allies only hope of winning lies in getting aid
from American manufacturers. England is almost
totally disorganized and it is up to America to win
the war for us."
The Macedonian cry from England "Come over

and help us" grows louder and louder ; and with
reason. For we observe there a coalition ministry
already discordant and discredited ; military and
naval commanders discharged
England
Demoralized

from service or sulking in their

tents after land and sea campaigns from Flanders to the Dardanelles which
have made them the laughing stock of the world ;
a middle class groaning under taxation, yet unwilling to curb either their pleasures or their profits,

skillfully disguised and covered up by arch manipulators of high finance in London and Paris?
Much of the paper in circulation there, though

and a laboring class being driven from shop to

deemed and is actually fiat currency and currency
which has lost the value of assets once standing be-

last days the English camel can
get his head under the American tent. Uncle Sam
has proved gullible in the past. Witness the pliant

nominally redeemable in gold, cannot be so rehind it.

shambles, alternately the slaves of their masters and
their vices. But there is still America. Her resources
America The
Only Hope

of gold industry, and credit
are strong. If only in these

Even before the war English and French bankers, committed to vast schemes of conquest and development around the globe, had filled the vaults
of their banks and the strong boxes of their clients
with stocks and bonds of Russia, the Balkans, South America, Japan, China and Mexico.
These investments have proved ruinously unsound.
French money invested in Russia in order to prepare the way for a Muscovite invasion of Germany
is hopelessly lost now that that
Depositor's Money
invasion has hopelessly failed.

repeal of the Panama Tolls Bill at a double and

everywhere is no less deplorable and threatening.
To cover the failure of such policies and in the

can be turned to better and safer account at home."*

Invested For
Political Reasons

The condition of the English
joint stock banks with similar
holdings of depreciated paper

hopewhich, with the odds in their favor, seemed
a certaintyof recouping their fortunes in one final
and desperate throw of prepared dice through the
conquest of Germany, financiers in both countries
welcomed the great war.

simultaneous hint from Downing Street and Tokio.
Cannot President Wilson and his new Secretary be

induced to forget the rulings of the Treasury last
Foreign Loans
Ruled Against
By England

year against the offering of
large foreign loans

United States ?

the

Bank loans
can be manipulated by those
interested so as to make it appear that even if the
Allies borrow half a billion of American money,
every dollar of it, plus the profits, remains in the
country. What is the answer ? The answer is,
"Pay us in gold and not in promises, or our own
borrowed money,the money of the peoplewhich
.NOTE.Bankers profess to fear inflation and over-extension of
credits, but they have held their purse-strings so tightly that their

vaults are bursting with idle money. For three years they have been
telling us that the railroads need hundreds of millions of dollars for extensions and improvements and railroad men have confirmed this. The
Erie Railroad, for instance, could spend millions double-tracking its
main line from New York to Chicago, if it could borrow on favorable
terms. If the railroads have needed capital so badly all these years,
the people who hold all this idle money would not create dangerous inflation by letting them have it. Our leading railroad builder has been

DO YOU KNOW
Why England offers us an extra bribe of one-

half per cent. in interest and a remission of her

income tax on this proposed new loan for American
consumption of $300,000,000?
Why should the American investor be tread
more generously than the Englishman is treated in

his own market? Does an American dollar smell
sweeter than a bank of England note ? Does our

English cousin love us more than he loves himself?
This may be the reason for the week-end intimacies
of ambassadors and bankers families. Some cause
may be found in our latest government statistics of
wealth and population. The English war debt is
mounting at the rate of fifteen million dollars a day
and now exceeds five billion dollars. This calls for
a present interest payment
Five Billion of

from every man, woman and
War Debt
child in Great Britain of $5.62
a year. Our government statistics show that our

public debt is a trifle over one billion dollars with a
corresponding interest charge per capita of twentythree cents, a year.

Perhaps the new Lord Chancellor has also

observed that our bank deposits in 1914 total over
eighteen and a half billion dolOur National
Wealth Exceeds

One Hundred and
Eighty-Seven
Billion Dollars

lars and our national wealth

exceeds one hundred and
eighty-seven billion dollars.

These are magnetic figures for

the Chancellors of nations
drifting slowly, but surely, into bankruptcy.

If the war lasts another year, and we can stay
out of it, any citizen of the United States with one
American dollar should be able to buy eight English
shillings and have an odd six
A Dollar
pence over. But if we begin
Worth Eight
English Shillings

to exchange our gold, sound

securities and rich cargoes for
the rotten paper of the Allies,
even with Great Britain's endorsement, Americans
will deservedly be called, for they will become, "the
fools of the world."

DO YOU KNOW
How the enormous purchases of the Allies in
our markets can be covered?
There are substantially four methods.
telling us that the railroads have neither' terminal facilities nor rolling
stock to move the crops promptly.
We have the money. To use it wisely requires the co-operation of
all interests, including Congress. We could spend a billion dollars on
good roads throughout the country within three years. Good roads
would still further stimulate the automobile business and other industries, and would help to lower the cost of living and make life on the
farm more attractive. We can use our idle money without creating inflation if we put it to productive use instead of giving it to speculators.
N. Y. Commercial, July 6, 1915.

In gold ; by commodities ; by American securities owned abroad, or finally, by new international
obligations which represent simply deferred payments on these purchases.
In ordinary times, it should be added, American
Irists spend two hundred million dollars annually
in foreign travel. Gold credit from this source has
ceased. African gold production is a bagatelle in
comparison to the universal demand. In France
a house to house canvass is now in progress to in-

duce the rentier to exchange his specie for war
bonds.

Russia without the vodka tax, as an income

asset is a bankrupt nation. Both these countries
have been stripped of their
France and
Russia
Unable to
Export Gold

gold in exchange for England's
endorsement of their war
supply credits. The Canadian

gold deposit by the Bank of

England, which came originally from United States,
has returned, and since January we have imported
one hundred and twenty million more.

This is the moment when our financiers, who
made a fetich of gold twenty years ago and laughed
Bryan out of the Presidency for advocating a double
standard, are declaring that it is now a drug. Gold
hAs now become so cheap that it can be loaned to
the Allies on their notes of hand. Otherwise, to
quote the head of a great New York Bank "we shall
be in danger of drowning in a sea of gold." But
American citizens will observe that gold is still too
precious to be paid out in salaries or wages to our
own citizens.
But as for foreign gold, for us it does not exist.

If bankers and merchants abroad who now have
apparently unlimited credit in Wall Street were

obliged to pay in gold the London Stock Exchange
Gold Rooms
in London

and Paris

and the Paris coulisse would
be turned into Gold Rooms tomorrow.

This would be a

righteous retribution for specu-

lators who bought and sold our exchange at two
hundred per cent, premium during the Civil War.
But what was good business

1863

in 1863, when Alabama cruisers

v..
1915

were sailing out of English

ports to prey on our commerce,
would be denounced to-day as usury and Shylock
finance by the tender hearted money leaders of Wall
Street.

A second method of payment would be by
commodities.

A glance at the table of our declining imports
for the last six months shows
how far the Allies' exports and
Destroyed
manufactured goods would go
to defray their war necessities. We have greater
need of German exports, chemicals and potash, for
Production

example, than for French champagnes or English
whiskies.

DO YOU KNOW
Said Lloyd George, at the outbreak of the war,
"that the United States owes usGreat Britainyin.
Payment By
American
Securities

some form or other, about frive
thousand million dollars? Really you should send us over a

few hundred millions of gold

on account. I have asked Sir Edward Paish to receipt for it. You may have time on the balance."

How changed the tone of English financiers in
less than a year ! And this Lloyd George balance
turns out to be Falstaffian money owed in a Pickwickian sense. A railway president here has taken
the trouble to ascertain the amount of our railway
securities or obligation owned abroadin large part
outside of Great Britain. They total on April, 1915,
less than one-half of the Chancellor's estimate. No!
Since the Allies cannot return us either gold, commodities or our debts in payment for their requirements in our markets, they must perforce be driven
to forced loans. With the assistance of enemies
The United
States Treated
Like a Conquered
Province

within our gates, Allied bor-

rowers are treating the United
States like a conquered province.
The Anglo-American
press of New York evidently considers it an act of
condescension if English war Lords can use American cash in their business.
One Billion
Dollar Loan

Witness the headline of the
New York Times of July 4th,
1915"Foreign war bonds may

bring six per cent. here.Bankers expect United
States investors to be called upon for $1,000,000,000."
The Times may call such "spirits from the vasty

YOU REALIZE

ODO That if Germany wins the war, an outcome

which is forshadowed with great certainty by the
history of the conflict up to the present moment,
many of the resources which are back of Allied seci
*ties may become the property of Germany by
riht of conquest?
Germany now is actually in possession of over
eighty per cent, of iron and steel and sixty per cent.
textile industries of France, and many other French
resources which are the basis of national obligations
which have been and which will be issued by France.
Who now believes that Germany will be driven
out of Belgium and across the Rhine. Physically

possible it may be but at what unthinkable cost of
life and property.
The German submarine warfare has checkmated England's navy and bids fair to prevent the
delivery of American munitions of war, and therefore to cut off the armies of the Allies in France,
Belgium, Russia and upon the Gallipoli Peninsula
from their necessary supplies. In addition to all
this, the British Isles are threatened with an isolation sufficiently effective to place in jeopardy the
solidarity of the Empire. The inability of the
French, British, Belgian and nondescript forces
of the Allies in France and Belgium to dislodge

the Germans from the positions they have oc-

cupied since September, 1914, constitutes a failure

in offensive and therefore a defeat which fore-

ultimate failure of the Allies
in the West. The German
Coming Events
successes in Galicia, while
Cast Their
holding the great Russian
Shadows Before
battle front in Poland, as
well as the German invasion of Courland, are
shadows

the

indicative of the outcome of the war in the East.
The sinking of the battleships, Triumph, Majestic

deep" but will they come? Independence Day was
an inappropriate date on which to publish this arrogant demand. On this day, 139 years ago, Thomas Jefferson wrote into our Declaration of Independence manhood rights and immunities which
should render us deaf even to the drowning cries of
oversea Kings and their ministries.
To what period in the past can England point
What Has
to justify our intervention now
England Done
in her favor. If her rulers had
For Us?

means of obtaining much needed munitions of war.
Securities subject to such risks are a menace to the

divided continent instead of a united nation of one
hundred million free men.
DO YOU REALIZE
That the Federal Reserve Bank, a government
institution founded by an act of Congress, may become the ultimate financial support of the Allies in
their war against Germany and Germany's Allies?

and her Allies.

had their way with us half a
century ago, they would now be appealing to a

and the Agamemnon by a German submarine which
traversed over four thousand miles from Helgoland

to the Dardanelles, resulting in cutting off the

forces of the Allies on the Gallipoli peninsula from
their sea base, indicates to all reasonable minds the
failure of the Allies to open up, by the Dardanelles

and Bosphorus, the great wheat producing countries of Russia, as well as to furnish Russia with a

prosperity and development of the United States,
and the bankers who risk the moneys of their depositors upon them are recreant to their trust.
DO YOU REALIZE
That if Germany dictates terms of peace to the
Allies that the revenue of the Allies upon which
American financial institutions depend for the payment of interest may be pre-empted by Germany

Germany and her Allies possess both gold an
ihanhood, and indeed, a financial system which i
now appears is independent of any power on
earth. The attitude of the English people towards
the war consisting of indifference to its outcome,

may result in the passing of England as a nat"q,
with the result that the money of the American
people shall have been invested in the resources
of a nation whose manhood has not responded

to the crisis of its existence. To extend credit
to a nation in such a crisis, founded upon such

diversitude is carrying the partisanship which has
been bred into the American people by the news-

papers during the present war to the brink of a

financial panic which might close every bank and

workshop in our land.

DO YOU REALIZE
That some of the banking powers of our coun-

try would make the financial life of the United
States dependent upon the success of the Allies?
The way to make the United States

fi-

nancially independent is to compel the Allies to
pay cash for the goods which are delivered. A cash

business is a safe and sound business. A credit

business becomes an unsafe and unsound business
if our bankers extend credit to nations which, judg-

ing from the events of the past are now or

may in the future become either bankrupt or dependent nations. The banking interests of our

country and indeed the capitalists who are endeavoring to make blood-money out of the European war
are betraying, by their greed and folly, the prosperity of our country.

DO YOU REALIZE
That the admission into the accounts of our national state and private banks, brokers and private
investors of foreign loans of large amounts, besides
working an injury to our own security holders,

might overturn the entire foreign policy of the
United States?

Let no American banker be deceived by the

form or title under which these obligations may be
issued.

To call them twelve months notes, payable
principle and interest in dollars instead of pound
sterling does not change their character. They
compose part of a national debt.
To assert that a nation in a war like the present will redeem its obligations in gold on the day
named is to express an unreasonable hope rather
than a reasonable conviction. None of these war
Investors Not Paid
at Maturity

promises will be paid on maturity. The buyer will be asked

to renew or convert them into
long term bonds. International bankers will make
fat commissions on refunding but the investor will

not get his money unless he is prepared to sell his
holdings in a depreciated market and at a loss.
DO YOU REALIZE
That any debt owing by Russia, France and
Great Britain, to the United States, may be repudia1 through revolution?
This is a possibility which our bankers may
have overlooked. Remember Confederate Bonds
and French Assignats.
Lord Middleton said, in the House of Lords,

July 6th, that assuming the war was over next

March, England's national debt would then amount
to six billion, four hundred million and without increase of taxation there would be a deficit of seventy
million dollars a year in interest alone to make up
in time of peace. Lord Loreburn added the aston-

ishing admission that when he considered the
figures quoted, and that they

Bankruptcy Leading
to Revolution

applied also to other countries,
it meant bankruptcy, and bankruptcy he feared in many places
would lead to revolution.
No sensible banker would advance money to
a firm or corporation admittedly in sight of bankruptcy or engaged in serious litigation unless he had
already made such large advances as to be in possession of most of the assets and knew that he could

foreclose and find a cash customer thus saving a
total loss. Much less should a neutral country like
our own loan to belligerents in Europe so much
capital that the only way to recover it would be to
assume all the liabilities of its debtor, including a
remote and indeterminate war upon friendly nations.

Is the United States so rich that we can afford

to face calmly foreign revolutions and possible repudiation of such debts as the Allies have thus far contracted? But what would happen if international

bankers are successful in siphoning from our sea of gold
into their exhausted treasuries
enough to drain our supply to the danger line ?
The great mass of our people would undoubtedly shrink from the cold-blooded process of collecting a billion dollar debt by war. But in every
large Eastern city would there not be found three

Europe's Gold
Siphon

editors and as many clergymen whose voices would
be clamorous for war?
DO YOU REALIZE

That the finances of the United'States shOuld
be independent of any power on earth?
The last position we should aspire to occupy

is that of a creditor to the exhausted nations of
Europe. South America has

South America
More Inviting

greater need of our capital and

we can surely gain more for

it by establishing central credit and banking

agencies in advanced countries like the A B C
republics.

The best way to secure the United States

against entangling alliances, so opposed to all time-

honored traditions, is to ask that our foreign customers pay cash for goods free on board Ameriop
ports.

If such action on our part tends to shorten the
war, so much the better for ourselves and for mankind. We shall have more customers to deal with
after peace is declared and their buying power will
be multiplied many fold.
Our foreign policy should be consistent. Yesterday, as a result of anti-Semitism in Russia, the
United States at the behest of our Jewish citizens
abrogated our treaty with Russia. To-day, for the

sake of profits some of our Jewish brethren are

financing anti-Semitic Russia against Germany.
Every day's financial reports are confirming this.
Such is England's control over American citizens.
It has overcome their most powerful racial inclinations, and nullified the foreign policy of our government.
*

The American Truth Society in the interests of
the American people presents the above important
questions for their consideration to the end that they
may be aroused to the realization of the dangers into which the partisan and unneutral agitations of
our public press are leading the banking interests
of our country.

THE PEOPLE ARE THE POWER
The American Truth Society considers it to be
its patriotic duty to forewarn and therefore to forearm, before it is too late, the American people of
this situation. The people possess the means of
bringing to an end this dangerous and treasonable
financial policy of the banking interests of our country. The cash which the banking interests are supplying for the Allies is the people's money, money
which has been deposited by the people in our banks
and of which the banks have become the trustees
for its preservation and safe keeping. The banks
are committing a flagrant breach of trust when they
are extending credit, directly or indirectly, to the
Allies under the existing circumstances. They are
giving to the Allies a crub by which the Allies can
blackmail the business interests of our country into
extending to them more and more credit. They are
also giving into the hands of the Allies a means of
coercing the American people into the European

War by creating a financial situation which by

threatening the people with financial disaster may
compel them to enter the war as a means of saving
money and resources which they have placed to
the credit of bankrupt and defeated nations.

A GOLDEN OPPORTUNITY
Now, is the opportunity and there is still time
to keep the business interests of our country upon a
sound financial basis. Organized labor as well as
patriotic American capital should be interested in
movement.

The American Truth Society respectfully suggests that all employers of labor who are in sympathy with this patriotic movement should pay their
employees in gold in order to put gold, which is the

legal tender of the country, in circulation.

All

American citizens who are opposed to the plans of
the Allies to make the United States and Federal
Reserve Bank the base of supplies of the Allies, are
appealed to, not only in the in Put G oId
terests of humanity but in the
In Circulation

interests of the United States

and a safe and sound business and economic policy,
to carry a twenty dollar gold piece as a pocket pro-

test against our banking institutions permitting
England to retain five hundred million dollars in
gold, when the Allies owe us over a billion dollars

in money, and plan to increase that debt to over

two billion of dollars. Let every American citizen
write a letter to his bank and ask that bank whether
or not it or its Eastern depository is loaning money
to arms and ammunition manCarry a Gold
ufacturers, either directly or
Coin as a
indirectly. Let us scrutinize
Protest
our banking operations and
Let every American citizen who is
opposed to the policies and conditions we have

conditions.

pointed out,(the same folly which lost for partisan

English investors in the Civil War over a billion
dollars which they invested in Confederate Bonds,)
refuse to support banks engaged in banking operations which will make the United States the financial
slave of the decrepit and declining British Empire.
The American Truth Society issues this appeal
to the banks and the people to prevent London and

France from hoarding gold whilst the American
Let mass meetings be called all over
the length and breadth of our land. Let the people
be enlightened upon this most momentous question.
Let them declare their independence from a treasonable press which is aiding and abetting the extorpeople starve.

tionate and destructive financial demands of the
Allies upon the resources, the banks, the business,
and the Federal Reserve Bank of the United States.
The Declaration of Independence means noth-

ing if it does not guarantee to our free and independent nation, the economic and financial inde-

pendence of the business and banking interests of
the country. An embargo upon arms and ammu
nition by Congress after our banking and business
interests became dependent upon the fulfillment of
present and future contracts would bankrupt and
ruin the country at once. The munitions enterprise
may go too far to stop it by an embargo, but t`)
retention of their gold by the people would compel
our banking institutions and our dealers in munitions of war to demand from the Allies the cash in

gold which under all laws of trade they are entitled to receive upon the delivery of their goods.

This plan would reduce the tremendous debt which

now exists, by compelling our banks to demand
gold instead of accepting what may become worthless securities. This plan, furthermore, wOuid end
the war, because having insufficient cash, they can
no longer buy.
AMERICAN TRUTH SOCIETY
New York City
1133 Broadway

THE AMERICAN TRUTH SOCIETY
CB AN ORGANIZATION WHICH
DOES THINGS
Note a few:

It was organized two years before the war to combat the
influences which are now enslaving American finance.
It conducted the first big neutrality mass-meeting in New

York City after the outbreak of the war, and inspired
numerous others throughout the United States.
It conducted a public lecture by its President at Carnegie
Hall, at which the press was exposed by stereopticon pictures
and headlines.

For four successive weeks, it conducted public forums at

the Cort Theatre, exposing the methods of the newspapers, and attacking the export of arms, ammunition
and dumdums.

It has organized branches throughout the United States.

It has sent broadcast thousands of copies of its Plan
and Scope, a pamphlet which contains alarming and con-

vincing facts about the pernicious operations of British influences in our country.
It has circulated over 40,000 copies of the speech of Hon.
Charles Nagel on neutrality.

It has divided the Congressmen and United States Senators into three classes: 1st, those who are right; 2nd,
those who are wrong, and 3rd, those who are afraid to
say whether they are right or wrong.

It is planning to enter the national campaign of 1916,
to insure the election of public men who have been
friends of real neutrality, truth, justice and peace.
It inspired and gave enthusiastie support to the great mass-

meeting of "the Friends of Peace" at Madison Square
Garden, New York City, June 24, 1015,

Our proudest boast and most popular asset is that the
Anglo-Press has attacked and misrepresented us to the
American people.

WHAT HAVE YOU DONE?

THE GOLD PROTEST

AGAINST WAR

ORGANIZED IN 1912

WO.

4tPx., 71, ol+ a,

&Li/4n)
How You Can Be an Active Member
Carry a twenty-dollar gold piece in your pocket or at
home as a protest against the financing of our arms
and our munition exporters.

ibtai.Ceut-

Form an endless "Gold Chain" by writing your
friends and interviewing your neighbors, urging these
suggestions.

If an employer, pay your employees in gold coin and
thus put gold in circulation.

In withdrawing your accounts from banks demand
gold specie, or gold certificates, Federal Reserve notes

or U. S. Treasury notes.

This money is the legal

tender of our country (U. S. Revised Statutes, Sections
3584 to 3590 inclusive).
Investigate your bank, and if you believe your bank
is an unworthy depository of your money, you have the
legal right to demand your account in gold specie,
gold certificates, Federal Reserve notes or U. S. Treasury notes. Your money in a safe deposit vault cannot
be diverted to finance the killing of men.
Have this pamphlet reprinted and circulated broadcast,
or forward subscriptions to the AmericanTruth Society,
and it will reprint and circulate it for you.
Act ! Act! Act ! Put pressure on your bankers
compel our exporters of munitions of war to demand

cash from the Alliesand you will save our country
not only from financial ruin, but, perhaps from the
horrors of war.

If you think of a better plan submit it at once to the
American Truth Society, 1133 Broadway, New York

THE PERIL OF
American Finance
READ THIS CAREFULLY
To the Federal Reserve Bank Board,
Directors, Bankers, Bank Depositors, Public Officers, Newspapers,

Employers, Employees and
American Citizens generally

City.

Organize a League in every town, city and precinct
in the United States, and let the sign of admission to
your meetings be the exhibition of a five, ten or twenty

The British Raid upon Our Resources

dollar gold piece.

Join the American Truth Society.
Membership Application of
Business Address

"A STITCH IN TIME SAVES NINE"
Who is an American Citizen

Who Agrees to the Constitution and By-Lawa

Nature of Applicant's Occupation
Fill out and send $2.00 Annual Dues, payable in advance

American Truth -Society
1133 Broadway

New York City

Send twebve cent in ',Wage for Plan and Scope

AMERICAN TRUTH SOCIETY, 1133 Broadway,

New York City

PriceFive cents per copy, or $2.50 per hundred

rHE EMBARGO
discussed by

United States Senator

JOHN DOWNEY WORKS
of California

and

JOHN J. ARNOLD
Vice President of the First National Bank of Chicago

With Expressions of Manufacturers, Professional Men
and Members of the Clergy in All
Sections of the Country

[From The Chicago Herald, September 12, 1915.]

V.ce Consul Denies Swiss Export Arms.
Declares Action Would Be Against Spirit, Ideals and Law
of Native Land.

RECALLS EARLY EDICT
Says Order Prohibited Munitions Traffic and Army Compels
Dictum's Enforcement.

To the Editor: One of the Chicago papers published in
yesterday's issue an article purporting to come from its correspondent in Basel, Switzerland, and stating that Switzerland is kept busy manufacturing arms for indiscriminate export to the belligerent nations surrounding Switzerland:
Against National Spirit.

If this were a fact, it would be decidedly against the
spirit of our neutrality and the high ideals of humanity,

hospitality and brotherhood of man which Switzerland has
practiced and exercised for the last 624 years, and which are
fundamental and the basis of the very existence of Switzerland, which stands isolated among its mighty and strong
neighbors as a haven of refuge.
The fact is that at the very beginning of the war Switzerland by express edict prohibited the export of arms and ammunition, including all articles which might be used for the
manufacture of arms and ammunition, and Switzerland's laws
to this effect are fully protected and enforced by an army of
300,000 men, who are not only ready to resist and invading
army but so see to it that all traffic and intercourse at its
frontiers are thoroughly controlled.
Calls Assertion False.
The assertion, therefore, published in yesterday afternoon's paper that Swiss shells deal death indiscriminately
among the nations at war surrounding Switzerland is utterly

America First!

^,'"A

Conference gives to you
In this pamphlet the American Embargo Senator and of a leadthe publicly expressed views of a United States the speeches that these
ing financier of the United States, embodied in
people of this nation why our
men made in efforts to point out to the
embargo be placed upon all
country should unite in demanding that an shipment to the belligerent
arms and munitions of war to prevent their
nations of Europe.
Works of CaliThe speech of United States Senator John Downey
before
the national
fornia, was delivered August 5th, at Pasadena, Cal.,

convention of the Commercial Law League.
the league delegates,
It commanded such serious consideration by
should be given to the
who realized its importance as a message that unanimously
ordered the
people of the 1Thited States, that the convention throughout the country%
speech printed in pamphlet form for distribution
comment upon
The American Embargo Conference need make no
that you read it carefully
the speech of Senator Works other than to ask
consideration
to
the
points
that
are made by the Senator
and give serious
that
he drives home.
from California, and to the statements of fact
September
8th, at the
The speech of Mr. John J. Arnold was made
of
Commerce.
regular weekly luncheon of the Chicago Association
National Bank of ChiMr. Arnold is the vice-president of the First
has won him a place with the leading
cago. His career as a banker
fnanciers of the United States and Europe.
American who
Speaking as one of those financial experts, and as an
all other considerahas the welfare of the United States placed above
the
Conference
now urges
tions, Mr. Arnold sounded the warning that
business
men
of
the
country,
al!. American citizens, and especially the

false; and, since the public in general does not take the trouble

to read.

right.

of the thinking citizens of the
German agitatorsmust appeal to allpeople
put America first must be
country, and that their pleas that the

to investigate the truth of such publications, I would be under obligations to you if you would give these few lines publicity in your paper, which always has stood for justice and
Respectfully yours,

EUGENE HILDEBRAND,

Vice Consul of Switzerland.
Chicago, September 11, 1915.

of these two men
The Conference would point out that the speeches with being prowho stand far above any possibility of being charged

heard.

propTo strike again at the now expiring charge of "a pro-German
Conference
we
are
aganda.' that has been continually made against this
3

Mr'
inclumng in this pamphlet the published opinions of other American
citizens who are in favor of an embargo, and we ask only that you give
them, your consideration.

After you have done this we ask that you join with us in the effort
to arouse the sentiment for an embargo which exists in the countr)
tcday.

If you have not signed one of the pledges to stand as a voter in
support of this movement, we ask you to send your name, address and
voting precinct to the American Embargo Conference Headquarters, 139
North Clark street, Chicago, Ill.
If you are willing to do more than join the movement, let the Conference know and postal cards 'for the pledges will be sent to you so
that you may be able to secure pledges from other voters. Let us know
how many cards you desire.

If you care for other literature on the subject of an embargo__
articles written by real Americans of note for the information and guid-

ance of the American publicthe Conference will be pleased to place
your name on its mailing list and will send you all of our pamphlets
as they are put into circulation.
The sentiment for an embargo must be organized to be effective,
and the Conference asks 'you to join the ranks of the organization.
Don't hesitate longer !
Send in your name today!

0 Telling Points made by Senator Works.
Can you dispute Him?
The American trade with Germany last year was valued at approximately $500,000,000. This year it has fallen off to $130.000,000
involving a loss of $350,000,000. This doutless is the result of the
British blockade of German ports.

Millions of the producers of the necessities of life have become
the destroyers of property and the lives of their producers.

Millions of horses and mules have been taken out of industrial
pursuits and sent to helpless slaughter on the battle field. We are
draining our country of these useful animals and offering them to a
like sacrifice for money.

The tremendous increases in the export trade, as statistics will
show, lies principally in articles required for military purposes.

THE AMERICAN EMBARGO CONFERENCE.

139 North Clark Street, Chicago, Ill.

We complain of the brutalities of the war and the inhuman deBut these brutalities are practiced in great
part with instruments of war of the most barbarous, cruel and disastrous kind furnished by us for the sole purpose of money gain.
struction of human lives.

But all this temporary relief (to commercial conditions) came to
but comparatively few and for it the nation is paying a fearful price.
This commercial gain has accrued, in the main, to great and powerful
corporations that were rich enough before and needed no such relief.
It has vastly increased the high cost of living to our own people.
The manufacturers of guns, munitions of war, gun powder and all
the things that go to destroy human life, and concerns able, financially,
to fill huge contracts for clothing, food stuffs and other of the neces4

sities of war, are profiting immensely by this increased demand for()
their products, but the small manufacturers and the thousands of men
engaged in similar and legitimate lines of business receive none of its
benefits.

It has given employment to laboring men engaged in service by
those who supply armies in time of war, but deprives many others engaged in legitimate enterprises of means of support.
Laying aside the moral and humanitarian aspects of the case, the
men engaged in supplying war materials to the belligerent nations
are prolonging the war and helping to bankrupt those nations that
have been our best customers in times past and are, for temporary
and selfish gain, destroying in large part, for many years after the
war is over, our international trade with the warring nations.

We show our humanity by a generous support of the Red Cross
and its beneficent efforts to ameliorate the cruel effects of the war,
and yet our people, with the consent and connivance of our Government, are furnishing the means to prolong the war, to slaughter the
men in the trenches, take the lives of yound men and destroy the
property of nations with whom we are at peace.
And what for?
Ask yourself seriously why are we thus increasing the sum of
human misery.
Only that a few of our already too rich citizens may add a few
more millions to their large, often illegitimate, store of wealth.
One of the leading American Journalsnot German-American, or
other hyphenated one, but a plain American newspaper has this to
say on the subject :
"The God of Nations will not hold the United States altogether
blameless for its action and non-action. We may have kept the letter
of the law of neutrality, but we have violated its spirit. Every dollar
of the hundreds of millions received by our people for guns and shells
with which to kill Germans who have ever been our friends is tainted
money. It is covered with blood.
This traffic ought to be STOPPED. If President Wilson will not
call Congress together to enact a law to stop it, then it ought to be
stopped by the overwhelming public opinion of a people who ought

("): to be fair and too humane and too poud to tolerate the infamous
traffic for the sake of the dirty money it brings.
This is the sentiment of millions of our people in our own country,
nygny of whom are afraid or unwilling to give voice to their convictL.As.

These warring nations are all our friends. We should not discriminate between them. Whatever may be the views of individual
citizens, as a nation we should be absolutely neutral in every sense.
We may have our preferences, our likes and dislikes, our favoritism for one nation and our prejudices against another. We may believe that for the good of humanity it were better that one nation
rather than the other be successful. These considerations might at
least tend to justify us in declaring war against one of the belligerents
in the interest of humanity ; but it can furnish no excuse for pretending to be neutral and so aiding one of the belligerents as against the
other as to make our assistance greater and more effective than our
actual participation in the war as a belligerent would be.
It is not our war.
Most of our people believe in universal peace among nations. To
aid in one way or another in carrying on or prolonging a war between
other nations with whom we are at peace is entirely inconsistent with
our peace intentions.

Address of Senator John D. Works on
w ar, Business and Peace.
Delivered before American Commercial Law League National
Convention at Pasadena, Cal., Aug 5.

My subject is War, Business and Peace. Just now they are all
closely connected. Most of the great civilized nations of Europe are
engaged in a stupendous and devastating 'war while we are at peace with
all the world. Besides the hundreds of thousands of lives that are being
sacrificed and the millions of dollars' worth of property of the belligerent

nations and their subjects that is being destroyed, the war is interfering
materillly with the international trade of countries not engaged in the
7

conflict including our own. Unfortunately we were very ill-prepared

for this encroachment on our trade rights and privileges as a neutral
nation.

By unwise tariff legislation we had opened our domestic markets

to the products of the cheap labor of foreign countries. Other 1 aAs
burdensome to business and equally unwise were then threatened a..141
have since been enacted. As a consequence business languished, manufacturing establishments were shut down completely or their products
and their force materially reduced. Thousands of laboring men who
theretofore were employed at permanent work with reasonable wages
lost their places or their time and compensation was materially reduced.
Thousands of capable and industrious men and women were thrown out
of employment and walked the streets hunting for jobs, and often begging for bread. Employes and business men generally became discour-

aged and lost their spirit, independence and energy, fostered and enrouraged in former times, by just and salutary laws. For the very short
time between the taking effect of the new tariff law and the beginning
of the war our markets were being steadily and surely taken over by the
products of the cheap labor of Europe. The balance of trade was rapidly turning against us. Notwithstanding the increased imports the
Government was steadily losing revenue on account of the reduced rates

of tariff duties. A deficit in the treasury, resulting from this loss of
revenue, was inevitable. We were compelled to impose a direct tax on
income to enable the Government to operate. When the war came, Con-

gress was forced to resort to another so-called war tax although we
were not at war and hoped not to be in the future. As a nation we
were tending towards bankruptcy that could only be avoided by the
imposition of other and more burdensome direct taxes. In spite of the
heavy burdens imposed by the income tax and the war tax there is a
deficit in revenue for this fiscal year of over $35,000.000 as cdmpared
with a surplus of $34,000,000 last year, making a difference of $69,000,000.

Under these unfortunate commercial conditions the war, much as it
was deplored from a moral and humanitarian standpoint, come as a
distinct relief, in a great degree, from a self-imposed situation that was
fast driving employers of labor to bankruptcy and their employes to a
pitiful condition of dependence and want. It put an end, to a very
great extent, to the ruinous foreign competition that was threatening
our home industries, and at the same time increased our international
trade in arms, munitions of war, food-stuffs, clothing and many other
products demanded by war conditions. As a result our exports increased
and the imports rapidly decreased. The farmer and the domestic manu-

facturer had their home market restored to them by the war, new markets opened to them in foreign countries and their products brought
higher prices. To those affected in this way, whether producers or
manufacturers, this was a distinct gain and protected them temporarily
the disastrous consequences of the legislation that was fast destroy-

tym
ing their markets and their trade. But this temporary relief came to
but comparatively few and for it the nation is paying a 'fearful price.
This commercial gain has accrued, in the main, to great and powerful
corporations that were rich enough before and needed no such relief.
It has vastly increased the high cost of living to our own people. The
manufacturers of guns, munitions of war, gun powder and all the things
that go to destroy human life, and concerns able, financially, to fill huge
contracts for clothing, food-stuffs and other of the necessities of war,

are profiting immensely by this increased demand for their products,
but the small manufacturers and the thousands of men engaged in
similar and legitimate lines of business receive none of its benefits. It
has given employment to laboring men engaged in service by those who

supply armies in time of war, but deprives many others engaged in
- legitimate enterprises of the means of support. And, laying aside for
the moment the moral and humanitarian aspects of the case, the men
engaged in supplying war materials to the belligerent nations are prolonging the war and helping to bankrupt those nations that have been our

best customers in times past and are, for temporary and selfish gain,
destroying in large part, for so many years after the war is over, our
international trade with the warring countries.

The country at this time has the largest balance of trade in its
favor in its entire history.
will be about $4,300,000,000.

The value of trade during the present year
This is $20,000,000 more than ever before.

The falling off of imports will be about $250,000,000. Our gain has
cone mostly from the enormous value of our exports. They will exceed
last year's exports by nearly $400,000,000. Our greatest trade balance
heretofore was in 1908 and amounted to $665,000,000. This year it
will exceed $1,000,000,000 according to Department estimates- or nearly
twice as much as ever before. The trade with Germany last year was
valued at approximately $500,000,000. This year it has fallen off to
$130,000,000, involving a loss of $350,000,000. This doubtless is the
result of the British blockade of -German ports. Great Britain claims

that he and her allies have more than made up this loss by their increased trade with us in war materials. One of the journals of this
country, commenting on this situation, says:
"Tremendous 'increases in the export trade, as statistics will show,
9

lie principally in articles required for military purposes, such as aeroplanes, automobiles, explosives, firearms, animals, food-stuffs and the

limbs, as there seems to be no antidote that will counteract the poison.
It can be seen from this that this shell is more effective than the regular
shrapnel, since the wounds caused by shrapnel balls and fi-agments in
the muscles are not as dangerous as they have no poisonous element
iiS;ing prompt attention necessary."
For cold-blooded savagery, this will equal anything that has 'happened in the belligerent countries. For mere mercenary reasons it offers
for sale shells made by it that will excel all other means of destroying
life and add to the death agonies Of its victims. This brutal and barbarous offer lacks even the excuse of patriotism or love of country.
What a commentary on a civilized and boasted peace-loving and neutral

like."

Mil:ions of the producers of the necessities of life have become the
destroyers of property and of the lives of their producers. They mrl,
be fed and clothed. Hence our enormous exports of food-stuffs and
clothing. Millions of horses and mules have been taken out of industrial
pursuits and sent to helpless slaughter on the battlefield. We are drain-

ing our country of these useful animals and offering them to a like
sacrifice for money. Hundreds of our own factories of useful and nec-

essary things in time of peace have been turned into manufacturies of
guns, powder, shot and shell for the destruction of men. It pays, my
friends, but at what a sacrifice of things better and greater than money,
including our own self-respect and peace of mind.
This enormous increase in our exports, and the balance of trade in
our favor, is being industriously used by politicians to prove that the
nation is prosperous and business good and improving. It is not true
that this country is prosperous in a business way, but if it were it is a
melancholy thing that we must prove our business prosperity by our
increased traffic in deadly instruments of warfare, knowing that they
are,purchased for the immediate purpose of slaying our fellow-men across

the sea. We complain of the brutalities of the war and the inhuman
destruction of human lives. But these brutalities are practiced in great
part with instruments of war of the most barbarous, cruel and disastrous
kind furnished by us for the sole purpose of money gain.

Listen to this. One of the large manufacturing concerns of the
-United States thus advertises its wares:

"The following is a description of the 13- and 18-lb. explosive
shells which are now being used so extensively in the war to replace
common shrapnel. The material is high in tensile strength and VERY
SPECIAL, and has a tendency to fracture into small pieces upon the
explosion of the shell. The timing of the fuse for this shell is similar
to the shrapnel shell, but it differs in that two explosive acids are used
to explode the shell in the large cavity. The combination of these two

nation !

The aspect of this war trade that should concern us far more than
the selfish commercial question of dollars and cents, is the moral and
humanitarian side of it. Let us concede that a few of our people, already rich in this world's goods, are profiting largely by this trade, for
more than this cannot be claimed, and that it has increased the total
of our exports and turned the balance of trade in our favor; will we
profit by it in the long run, and if we will, can we, as a nation and as a
people, afford to pay the price? Let us rise above the consideration of
what we gain from it in money and see how much we are losing of
moral standing, rectitude and humanitarianism. We are a civilized
nation as civilizqtion is generally understood and measured. We are
loudly proclaim:ng ourselves believers in peace among nations, universal
peace. We have declared our neutrality as between the nations now in

the grip of this terrible war. We show our humanity by a generous
support of the Red Cross and its beneficent efforts to ameliorate the
cruel effects of the war and yet our people, with the consent and connivance of our Government, are furnishing the means to prolong the
war, to slaughter the men in the trenches, take the lives of the young
men and destroy the property of nations with whom we are at peace.

cauterize the wound if in the body or head, or to amputate if in the

We furnish the means by which thousands of men, innocent men, who
fight because they must, are maimed and crippled for life, we are helping
to make countless widows and orphans and adding enormously to the
sorrows and sufferings of humanity. And what for? Ask yourselves
seriously why are we thus increasing the sum of human misery. Only
that a few of our already too rich citizens may add a few more millions
to their large, often illegitimate, store of wealth. And we are felicitating
ourselves upon our increased exports and the large balance of trade
gained for us by this nefarious trade. The mere mention of it should
bring the blush of shame to the cheek of every citizen of this great Re-

acids causes a tei rific explosion, having more power than anything of its
kind yet used. Fragments become coated with these acids in exploding

and wounds caused by them mean death in terrible agony within four
hours if not attended to immediately. From what we are able to' learn
of conditions in the trenches, it is not possible to get medical assistance
to anyone in time to prevent fatal results. It is necessary to immediately

public.

I know it is said that under the rules.of international law we

may supply arms and munitions of. war to the belligerent nations without
violating the laws of neutrality. For the purposes of the discussion let
us admit this to be true. I am trying to place the question upon higher
grounds. It involves the taking of thousands upon thousands of hman
lives.

Its merits should be judged, not by man-made laws, but by the
paramount law of God that should rise above all human laws and be our
guide in this momentous crisis. The law of morals and of humanity
should on such an occasion supersede any inhuman law of expediency

or human or legal right. One of the leading American journalsnot
German-lAmerican, or other hyphenated one, but a plain American
newspaper has this to say editorially on the subject:
"The God of nations will not hold the United States altogether
blameless for its action and non-action. We may have kept the letter
of the law of neutrality, but we have violated its spirit. Every dollar
of the hundreds of millions received by our people for guns and shells
with which to kill Germans who have ever been our friends is tainted
money. It is covered with blood. This traffic ought to be STOPPED.
If President W:lson will not call Congress together to enact a law to
stop it, then it ought to be stopped by the overwhelming public opinion
of a people who ought to be too fair and too humane and too proud to
tolerate the infamous traffic for the sake of the dirty money it brings."
This is the sentiment of millions of people in our own country,

to England and her Allies, is to intercept and destroy ships carrying
these same things to the ports of her enemy.
This places our country in a position, brought about in the first
instance by the Alies, that. we may sell military supplies to them but not
lo Germany. When we do this we in every essential particular become
one of the allies and for the time being an active enemy of Germany.
but claiming to be neutral. We could have said to Great Britain when
by her own act she made it impossible for us to send supplies to Germany: If you maintain this blockade, we will furnish no war materials

to you. We cannot furnish arms and munitions of war under such
circumstances to you and maintain our neutrality. We will supply all
of the belligerents alike or none at all. This we should have done on
the ground of neutrality ; but, on the higher ground of morality and
humanity, we should have said to all the belligerent nationsWe do not
believe in the settlement of international disputes by resort to arms.
We will not aid either of you and thus maintain and prolong the war.
Instead, we promptly and properly declared our neutrality, and then
proceeded to give aid to one side as against the other. We were not
honest with ourselves or with the warring nations. We were too anxious
to make money out of this dreadful war to make good our declaration of
neutrality. These warring nations are all our friends. We should not
discriminate between them. Whatever may be the views of individual
citizens as a nation we should be absolutely neutral in every sense.

her enemy's blockade which prevents her from receiving the war supplies
and food-stuffs and other necessities in times of peace that are going

Now let us stop a moment to consider to what false and unjustifiable
attitude has brought us. A single illustration will suffice to uncover the
evil that we have done. The Lusitania, a British-owned ship, undertook to carry to England through the war zone, arms, ammunition and
war supplies sold to that country by American citizens. She also carried
several htindred passengers, many of them citizens of this country. The
British Government knew the ship was subject to destruction by Germany. The passengers were warned personally and by public advertisement, of their danger in traveling on the ship. The United States not
only allowed the exportation of these war materials which should, on
moral grounds, if no other, have been prevented, but after the warnings
of danger were given the passengers, and with full notice of the deadly
peril that confronted them, allowed American citizens to take passage on
a ship that was already marked for destruction. She was torpedoed
by a German submarine and sent to the bottom of the sea. Many of her
passengers were drowned, including a number of our own people. The
sinking of the ship was a brutal and unjustifiable thing. The American
people were justly indignant at this sacrifice of American lives. The

many of whom are afraid or unwilling to give voice to their convictions.
Again let me remind you that the belligerent nations have themselves
brought about such a condition that we cannot carry on this obnoxious
trade and be either humane or neutral in a practical sense. England,
one of the Allies opposing Germany, declared and is enforcing ablockade
of the ports of the latter nation. So we cannot by reason of the act of
Great Britain :ripply war materials to Germany or food-stuffs or other

necessities of life to her people. In turn, and by way of retaliation.
Germany has declared a war zone covering that part of the coasts of
England and Ireland through which our products must be carried to
reach directly the English ports, and maintains her right to destroy merchant vessels can ying contraband goods as well as ships of war found in
the defined zone. While England can enforce her blockade of Germi.n

ports, Germany is not strong enough on the ocean to maintain such a
blockade as againq England. Her only means of retaliating against

President was justified and should be upheld in his vigorous and earnest

protest against this crime against out people which but for our own
greed in sending war materials and that on a passenger ship would have
bee unanswerable. By our own act we had made the tragedy possible
and destroyed the effect of our protest. For this the American peoplga
are not answerable. The fault lies with the men who are growing rich
and richer by their trade in the instruments and missies of death. Their
wrong does not justify Germany, but it has immeasurably weakened the
demand of this country on the German nation. England had provoked
this sacrifice by a deliberate attempt to starve sixty-five millions of German people, many of them as innocent as the passengers on the Lus:tania,
by blockading their ports. England was fighting for her very existence
as a nation and resorted to strong measures to cripple her enemy and
save herself. Germany was likewise fighting for her life and took like
measures to protect herself. This nation provoked the destruction of
the British ship and American citizens by shipping, through the war zone,
the supplies that might mean the success of England and the defeat of
Germany. We were not fighting for the life of this Republic. We had
no such excuse. Our motive was the sordid one of commercial gain.
We protested against the murderous act of Germany, but we did not do

it with a good grace. We did not come in with clean hands. We ourselves were in a sense particePs criminis to this awful crime. We cannot
escape the consequences of our participation in the fearful tragedy. This
was the legitimate outcome of our false position, our violation of the
laws of practical as opposed to legal neutrality, the laws of humanity,
the laws of God. We may have our preferences, our likes and our dislikes, our favoritism for one nation and our prejudices against another.
We may believe that for the good of humanity it were better that one
nation rather than the other should be successful. These considerations

might at least tend to justify us in declaring war against one of the
belligerents in the interest of humanity ; but it can furnish no excuse for
pretending to be neutral and so aiding one of the belligerents as against
the other as to make our assistance greater and more effective than our
actual participation in the war as a belligerent would be. It is not our
war. Most of our people believe in universal peace among nations. To
aid in one way or another in carrying on or prolonging a war between
other nations with whom we are at oeace is entirely inconsistent with our
peace pretensions.

What effect our course will have on our international trade when
the war is over, no one can tell. Any statement about it must be mere
conjecture. It must be evident, however, that we will then deal with

sons and has its compensations. Amongst other things, it teaches us
the value of peace among nations. In this instance it gives a most powerful impetus to the peace movement of the world. Never has this movement been more active. Many plans for the establishment of peace have
nations previously rich and prosperous, but now poor ann burdened with
Onormous debts. They will be much less able to buy what we produce.
For a time they must be less able to pro-duce what we need to buy. They
will be poorer customers in many ways. The animosities against us,
growing out of the war, may make them less willing to trade with us if
they can procure what they want elsewhere. On the other hand, their
increased needs and their inability for a time to produce what they must
have, may make them more dependent upon us and in that way increase
our foreign trade, or they may spur them on to keener and more strenuous competition with us than ever before. It is a problem that cannot
be solved now.

But even war, much as it is to be deplored, teaches its valuable lesbeen suggested, new peace organizations sprung up and old ones have
increased in membership and influence. Peace 'plans, unfortunately,
are not always equal to the war spirit, the savagery that so often controls
the actions of men or the false idea of national honor and national patriotism. As against the insane war spirit that still controls on occasions
neither peace plans nor peace treaties avail to prevent war.
Civilization is no prNf against the inhuman war spirit. We must
go deeper than that if we are going to put an end to war. Nations are
only aggregations of men. They cannot rise above the citizenship of
which they are composed. Therefore all efforts towards the establishment of peace amongst nations must reach the individual citizen. A
nation made up of men and women who will war with their neighbors,
war in their churches, in politics, in the various peaceful walks of life
and within themselves, is a nation that will go to war with another nation. Good and evil are constantly at war between man and man and
within the consciousness of the individual as well as between nations,
and until good overcomes evil in the minds of the people who constitute
separate nations, we cannot expect universal peace. The greatest of
the evils that result in quarrels among men and war between nations is
selfishness. Men are selfish. Nations composed of men are likewise
selfish. The fearful war now raging in Europe is the result of human
selfishness. One nation may be fighting. for access to the sea for its
commerce, another for commercial supremacy on the ocean, another for
an increase of territory, another to recover territory lost by previous
wars, and still another for hate or revenge. All of these are selfish rea15

sons.

In addition and in support of those mentioned the cry of patriot- elk,
ism and love of country is raised, one of the most selfish appeals of all.
We invoke national patriotism as against other nations, as against the
whole world. We forget that we owe an unselfish duty to all mankind,
an international patriotism, world-wide in its scope and unlimited in its_
generous love of all mankind. The selfish consideration of nationa2
rights and national gain and advantage engenders war between nations
just as like considerations by individual men and women engender strife,
bloodshed, litigation and controversies of all kinds among men. To meet
this sense of limited patriotism an international court should be established to settle disputes between nations with full and ample jurisdiction
to deal with all disputes extending even to questions of national honor.
We must realize that the way to peace among nations is to eliminate selfishness from the consciousness of the men and women who constitute nations. Until we do we will have strife among men and among
nations. Therefore peace plans and the advocacy of peace are good as
a means of educating men to avoid war and foster peace, but when we
can teach them to love God and their fellowmen, peace will be assured.
Jesus of Nazareth said: "Thou shalt love the Lord thy God with all
thy heart and with all thy soul and with all they mind." This is the first
and great commandment. And the second is like unto it. "Thou shalt
love thy neighbor as thyself." Uniform obedience to these divine commandments would establish universal and eternal peace among men and
nations. But we do not obey them. We serve other gods before Him.
One of these gods, and, to our minds, the most powerful of all, is money.
In one of the great peace meetings called to form a peace league and
composed of many of the most distinguished men and women of this

country, it was proposed to include in its declaration of principles a
provision against the exportation of war materials to belligerent nations.
It was voted down. What a spectacle! This was serving mamnion, not
God. But they did insert a provision that a nation refusing to obey such

peace regulations as might be provided for to prevent war, should be
forced to do so. So this great peace organization, at its very birth,.eridorsed the right of a neutral nation to aid and assist in carrying on a
war between other nations and declared in favor of making nations
peaceful by force. You cannot make men honest or unselfish by law.
You cannot make men or nations peaceful by force.
The establishment of nniv.ersal peace amongst men and nations is a
consummation devoutly to be hoped. But we should not delude ourselves with the belief or hope that this can be accomplished by peace
plans or regulations. The people of all nations must be brought to love
16

(3od with all their hearts, with all their souls, with all their minds, and
their neighbors as themselves. They must be taught to serve the one
and true God only, to love peace and hate war, and to be patriotic not
to their own nation only, but to the people of all nations of the world.
EsPecially is this true of the rulers and leaders of all nations. It is they

an, not the masses of the people who make war. The brotherhood of
men of all Dations and of all tongues must be established and maintained in the minds and consciences of then. Thus will universal peace
be established. It cannot be established in any other way.

The Industry and the Issue.
(An editorial reproduced from the Omaha World--Herald of Sept. 7.)
A dispatch to the Chicago Herald, under date of last Saturday, from
Dover, Del., says that "three large companies to deal in war munitions,
with a total capital stock of V55,000,000, were incorporated here today."

One, the largest, with a capital stock of $240,000,000, is to "deal in
powder, dynamite and other high explosives; to manufacture all kinds
of war munitions and to erect factories and mills for the production of
same." A second, with a capital of $10,000,000, is to "manufacture,
sell and deal in war munitions of all kinds, and machinery for producing
same." The third, with a $5,000,000 capitalization, is to "develop and
carry on a general business of manufacturing guns, torpedoes, etc."
These are the developments of a single day, in a single state, with
regard to the deadly new industry in which the United States is engaging
on a gigantic scale. In Pennsylvania, Connecticut, Rhode Island, Massachusetts, and practically every other eastern state, the same thing is happening.

Hundreds of millions of dollars are being invested for the

manufacture of war. Scores upon scores of shops and mills that hitherto
have been devoted to the production of articles to sustain life and add
to human happiness, are being converted into factories for the production
of articles to destroy life and add to human woe.
Capital to the enormous amount required for the financing of these

industries is not picked up along the country highways and byways.
These workshops of death do not represent the investments of people in
moderate circumstances looking for safe investments of their savings.
They are being builded by the plutocracy of the United States. They

are promoted and organized in Wall street and financed by the great
money kings of the country and those associated with them.

They show

plutocracy in a new and formidable and sinister aspect, menacing not
alone to the honest neutrality of this country so far as the European
17

war is concerned, but menacing to its future once the war is over.
The main immediate object of this new industry is the prolongation
of the present war to the last possible day. Only so can the anticipated
crop of profits be harvested. And after that object is attainedif attained it may bethe main object will then be to promote and cultivate
other wars, and heavy armaments for war, at home and abroad, soil.at
the investments will continue to be profitable. As a subsidiary object,
but a highly essential one, the American sentiment against the trade in
arms and munitions must be beaten down.

It is not surprising, therefore, that the campaign against the antimunitions idea as sponsored by Senator Hitchcock in the last session of
Congress is so active, so well organized, and so intelligently conducted.

Behind it stands the organized plutocracy of the country, and to its
service are devoted the best brains of the country which great wealth is
always able to buy.

The House of Morgan[head of the American plutocracy, is the
American fiscal agent for Great Britain and its allies in the war. Morgan's most important duty, if not only duty, in this respect, is to see that
war material is provided for the Allies, and that, when the Allies run
out of the means to pay for them, that this country also loan them hundreds of millions of &liars with which to buy. The profits may be
expected to be proportionate to the needs of the customers and the importance of the service rendered.
It is a tremendous conspiracy against human happiness that is under
way. It is so big and powerful that it can summon to its assistance aid
from press and pulpit, from schools and colleges, from "society" and
science and scholarship, just as the slave interests were able to do, once
upon a time, and just as the beneficiaries of high tariff did for a generation while they were gathering into their families the most enormous
fortunes the world has ever known. It can even charge with being
"traitors" those who denounce the trade in arms and ammunition, just
as, more than a half century ago, the slave oligarchy branded as "traitors"
Abraham Lincoln and others who denounced the Dred Scott decision.
And it does make the charge. From all of the countless avenues of
publicity and opinion-molding which it controls, or influences, or to which
it has access, it is resorting to all manner of tricks and sophisms to
ridicule, to belittle, to discredit, to discourage those who declare the right
and the duty of this Christian nation to forbid the sale of arms and
ammunition to be used against peoples with whom we are at peace.
It is a great issue that is growing up, side by side with the great
industry, and' the one will continue to grow just so long as the other does.

:conomic Endurance of the Great Belligerents Right of the Great Neutral to the
Freedom of the SeasPatriotism of Peace
Higher than Patriotism of War
The following speech was delivered by Mr. John J. Arnold, VicePresident of the First National Bank of Chicago, on September 8th, at
the regular weekly luncheon of the Chicago Association of Commerce
and is a reprint from Chicago Commerce, the official organ of that body.

Said Mr. Arnold :
In order that you may fully understand my own personal relation-

ship toward this subject, I want to state that in the first place, in
spite of the war clouds overhanging my daily occupation, in spite
of the devastation which has taken place, I am still, as I always have
been, an optimist. As to my own individual makeup and personality,
I have just a word to say, which I think may interest you at this time.

My father was born in Germany, of English ancestry. My mother
was born in this state, in the city of Naperville, of German and
French parentage. I myself was born in Canada, my wife is a
Hoosier, and my youngsters are Suckers. And I am proud to say that
over and above everything else I am every inch an American citizen.
The first twenty years of my life my training was entirely British,
and, naturally, when this conflict came upon us my sympathies went
to Great Britain. I have, for twenty-five years, due to my daily occupation, been interested in affairs international, more particularly
those pertaining to trade und finance. In this capacity I have tried to
study world movements from the standpoint of an American. Since
the outbreak of the war I have tried to follow its progress, and have
honestly endeavored to study all phases of the situation. I have long
ago come to the conclusion : that in this, as in all other controversies,
there are two sides to be considered. As to the final outcome of this
conflict I have but one wish, and that is that right rather than might
may prevail.
Now, I realize that on the question of what is right, opinions may

18
19

and do differ, but in my judgment they differ only because they ai
opinions. If all of the facts were known and all of us knew them as
facts, then I believe that in our American uprightness all prejudice.
and bias would disappear, and we, as Americans, would think approximately alike.
()
Withholding Judgment
Great world movements, when studied in retrospect, give us a
much more accurate basis for sane and sound conclusions than when
studied as current events. I need only remind you of the fact that
during the civil war the name of Abraham Lincoln was reviled and
despised not only in certain sections of our own land, but more particularly in Great Britain, that country of which I am proud to say
I have been a subject by birth. Today the whole world is united in
giving recognition to the value and worth of the life and character of
the railsplitter from Illinois.
Conditions during the civil war were such that we, as a nation,
found it advisabe to send to Great Britain three of our leading citizens, one of our leading politicians, Thurlow Weed ; one of our most
successful international lawyers, William M. Evarts, and our most
brilliant orator, Henry Ward Beecher, for the purpose of laying before that great people the facts as we knew them. And yet they did
not want to believe them. I believe that the attitude of Americans
to-day is that we want to stand aloof and hold in abeyance our judgment until history has been sanely written und carefully set down,
and then we will pass our judgment, not as pro one thing or another,
but purely as Americans.
No Hyphenated Propaganda

It is may opinionI may be wrongthat no one in our country
today is in possession of sufficient facts to place him in a position to
come to a final and fixed conclusion as to the causes. underlying this
War. Nor are we in position to say what will be best for the world as a
result of the final outcome of the issues at stake.
So much has been said recently with regard to hyphenated Americans. Gentlemen, it does not matter what we may say on this sub-

I am, however, absolutely and unalterably opposed to any
and every hyphenated propaganda.
citizen.

Speaking Alway as an American
Now, I come to the question of the hour : "The Economic Aspects
o the War." This subject, in itself is so broad. and 'comprehensive,
so full of apparently contradictory conditions, that I certainly would
hesitate to come before you to speak as one with authority. But I
come merely to present to you certain views which have become convictions with me. I want to just emphasize this, that in what I have

to say I have one thought uppermost in mind, and that is that I am
speaking purely as an American.
Of course, you are interested in the subject from the standpoint
of the economic aspects as concerning our own commercial and national life. But our position with the world is so closely interwoven
that in discussing this subject today it will be necessary for us to
take, at least, a cursory glance and review the conditions abroad. And

I am going to simply, in a few words, analyze out, as I see it, the
situation among the belligerents from the economic standpoint.
The Central Powers
I will first speak as to the central powersGermany and Austria.
As to their economic condition I know that a great deal has been said
with regard to the collapse of finances in Germany and Austria. I
want to merely call your attention to the conditions as they really
exist. In the time of the ancient Greeks trade between peoples was
entirely based upon exchange of commodities, and it was only as
civilization advanced and developed and enlarged the horizon that
a medium of exchange became necessary. - As long as a people can
deal one with the other purely in commodities, the exchange can go
on indefinitely, so long as those people are satisfied with the obliga-

tions that are being piled up on the part of the government. From
this standpoint I view Germany and Austria's economic condition
as merely in this - light, that the day of reckoning may possibly be
postponed until after the war, but that day of reckoning is surely
coming.

ject, the fact remains that we have, as a country, a hyphenated

Russia and France

citizenship, and I for one have no objection to being known as such.
The fact that I was born in Canada is something that I have always
been proud of, and I maintain that to be known as a Canadian-American does not in any way detract from my patriotism as an American

Russia is a land of vast resources, but the development of the
resources of any nation is dependent upon the intelligence of its
citizenship. Viewed from this standpoint, Russia has not by any
means come to a full realization of that which she has possible

within her own organization. I am speaking now, and the thoughts

that I give are more particularly my convictions, in regarn

the possibility of taking care of the financial obligations, in regard
part of the nations at war. Russia, in her present condition, however,
is not in a position to bring herself up suddenly to the place whEl
she can immediately take care of her obligations resulting from this
conflict.

France is a nation most wonderful in its makeup, having a
citizenship that is intelligent as well as frugal. The habit of saving
has been developed in an unusual way, and her resources are very
large. France in times of peace has been able to aid Russia in her
commercial and economic development, and on this account is very
much interested in seeing Russia sustained and supported.
England's Double Task
England, on the other hand, has come down from the position
of being the banker for the world to being at leastfor the moment
merely the banker for the allies. Now, there has been a great deal
of criticistn with regard to England because she is occupying only
practically thirty miles of the front of the war lines, while France
and Belgium have over 500 miles. That is true. But we must not
forget that fight east and west is maintained and kept up only because
'Great Britain has put her financial resources back of all the allied
armies. So that while she has not been serving the allies at the battle
.

front with soldiers and ammunition as the others, she has, nevertheless,
been furnishing the sinews of war, and without them the allies would

long since have been defeated.
come now to the question which I think will interest you very
much, and that is: Will the allies be able to pay for that which they
are getting from us?
I believe today that the resources of the allies are sufficient, so
far as resources are concerned, to carry on this war for years to come.
Several weeks ago there passed through my hands a statement which
accompanied a dividend check which was sent from the city of London to a citizen in Chicago. This dividend check was for 417 pounds
sterling, and the deduction for income tax was 47 pounds sterling,
or 11+ per cent. So that, although I believe these nations will be
aL le to continue the war so far as the resources are concerned, you
can readily understand what the burden is going to be when already,
two months ago, the income tax in England was 111 per cent.
22

Balance of Trade
Now , we come to the consideration of the subject-of our relation
from the economic standpoint with these nations. It is a well-known

fact that two nations trading with each other, interchanging cornrfalities, have no concern with regard to settlements until it comes

to the point where one gives more in-commodities than. she receives.
In this way we have for years, ever since the founding of our nation,
been receiving from the European nations more than we have been

able to give in return.

American Securities Abroad
The difference, known as the balance of trade, must be
adjusted
from time to time, and the method that is frequently resorted to is the
payment in gold. Gold, however, is usually a means of last resort.
So that instead of settling our obligations by shipping gold, the Europeans who have been forwarding commodities to us in larger quantities than they have been receiving, had to take from us obligations

that had a maturity fixed in the future. And in this way England
at the time of the war had approximately four billion dollars'
worth
of American securities. Germany had one and
one-quarter billions.

France one billion, and Holland and the other countries approximately
one billion. So that in all we had obligations which
we owed to
Europe in the form of stocks and bonds amounting to approximately
seven billion dollars. On the other hand, we were holding in this nation of ours European obligations, such as British
consols, French
ren tes, and German government bonds
amounting
approximately
to
one pillion dollars. So that the net obligation
owing to Europe on
the part of the United States was six billion dollars. Now, of those
securities many have already been returned. We do
not know the
exact hgui-es. But we do know this, that many of them
were purchased by Holland, by Sweden, by Norway, and by other countries
in Europe. Agreat many of those securities,
on the other hand, are
lying in the banks in this country, held in escrow, in trust
for European holders, and further securities of this character are held in banks
of this country but have been actually pldged against loans.
And
the situation which confronts us today is that it would
appear to be
somewhat difficult for the allied nations to corral enough of these
securities to bring to the United States to place in our hands as collateral for the loans which they require.
First Maintain Financial Stability
A commission of French and English bankers and
financiers is
23

reported as coming to this country for the purpose of arranging a
large loan to take care of the obligations which are being created now
on account of war supplies. I have no doubt that some arrangement
will be effected whereby the credit will be extended.
Another question is : Shall we accept further gold payments?
account of such obligations? Some of our economists are of t e
opinion that further receipts of gold will only tend towards creating
inflation in our financial system.
Now, I whish to emphasize one thought in this connection, and

that is this : Our Federal Reserve board and the federal banking
system has been organized for a two-fold purpose.

In the first place, the federal reserve system is organized for the
purpose of extending our credit facilities when business is active and
commerce is expanding. If we had had such a system in 1907 that
panic would not have taken place. The federal reserve system has
another function, and that is that in time of easy money it shall serve

the country by maintaining conservatism and by preventing speculative investment. At this time the great concern of our Federal

Reserve board should not be : Will the federal institutions throughout our land be in a position to earn enough to pay expenses? That
is merely a secondary consideration. But the great purpose of the

organization today should be, and I think is, to maintain financial
stability, even in the face of easy money and business inactivity.

How Europe Does It
Under our system country bank deposits are ?laced in reserve
and central reserve centers with the understanding that these deposits
bring back earnings. In our country we have a fixed rate of interest
that we have been paying on these deposits the year around. When
the interest rates are high we pay the same as when interest rates
are low. Now, you can readily see what that means to our banks.
We must necessarily seek some place where this money can earn
something in return.
In Europe they have a scientific system which works automatically. When the Bank of England rate advances the deposit rate advances. When the Bank of England rate decreases the deposit rate
decreases. I believe that our Federal Reserve board should initiate a
similar system here.

The World's Banker
I am thinking of the days when the war will be over. I believe
that at the present time the European governments will find that it
24

-I"

is very difficult to place any of their bonds in American markets, because we do not know what their position will be when the war is
over.

But when peace has come these nations will have to be

financed, and there is only one place to which they can go to secure

10p in their -rehabilitation, and that is to the United States of
America.

We have heard it said that the United States of America has
become the world's banker. Only that nation which can serve the
rest of the world best will be the financier or the banker of the world.
I believe that we ought to be taking gold in payment of the goods that
we are shipping, and we should be husbanding our gold reserve so that
when the war is over we will be in a position to serve the world.

In What Form Shall Europe Pay?
Not only will the European nations have to come to America for

support, but South America and the Orient in the past have been
receiving financial aid from Europe, and they are turning to us for
assistance. But even if we are to take payment in gold there is a
limit to the gold supply in Europe. The gold supply in the Bank
of England today is 335 million dollars ; in the Bank of France, 875
million dollars ; in the Bank of Russia, 790 million dollars, a total
of two billion dollars. And figuring on the basis of peace time, there

should be in the vaults of the other banking institutions of those
countries another billion dollars, making in all three billion dollars
of gold in the possession of those governments and the banks.
The gold supply of the United States alone in its treasury and
in the banks is approximately two billion dollars. The European
nations must also husband their gold. They cannot allow depletion
to go on indefinitely. And in how far they will be able safely to go
on paying us in gold is a serious question. The thing that concerns
us, then, is in what form shall Europe furnish payment for the goods
which are now being shipped to the allied nations ? It can only be
done by shipping gold to some extent and by securing further credit
from us. As to how far they will be able to secure credit, of course,
is a problematic question. When once the limit has been reached,
then we will find a collapse of international finance and this will bring
on the end of the war, if nothing else will before that time.
I want to call your attention to one economic phase and condition
with regard to which we in America have been very indifferent. We
have been building up our export business ; and, I want to say that,
as a Democrat, I am free to admit that this war came along just in
25

1..1=r1-

1111.11.11MMIL._

time to save the face of the administration. I believe absolutely that
if it had not been for this war we would have been indeed in a very
serious condition as the result of our international policy.

speaking as an American onlywe have a right to trade in noncontraband goods with belligerents, and our right to trade with neutral countries is sacred to us. We are not concerned with the question

of how much our supplying England with war munitions injures

A British Policy
Let me call your attention to another condition that I think is of
interest to us, even if we will not heed its warning. We have been
pursuing a policy quite contrary to that of far-sighted England. If

band trade with Germany and neutral countries harms England's',

you will study the export figures of England you will find that in
January of this year they were 40 per cent below that of a year ago;
February, 36 per cent; March, 32 per cent; April, 19 per cent; May,

economic position.

20 per cent, and June, 16 per cent. Now, when you take into account
that about 15 to 20 per cent of England's exports annually went to
Germany and another 15 per cent to Austria, you can readily see that

trade in non-contraband goods, especially with neutrals, be restored,

England's foreign commerce is, outside of Austria and Germany,
ahead of what it was before the war.
What does that mean? It means that England has been keeping
her industries at home active while she has engaged the factories of
the United States to produce the war munitions for her armies. My
position was from the beginning of this war that our great aim ought
to be in this country to develop commerce with the nations at peace
rather than to supply means for destroying life and property.
This Nation's Right to Trade
I have heard of a factory that received an order for war munitions

amounting to five million dollars, and it cost that institution one
million dollars to change its factory over to produce that war material.

True, the British government paid that million dollars. But that
institution has given up all its other activities of trade and is simply
manufacturing the things for war. And when this war is over England will be at the front with her exports and her foreign trade and
we will have to call a halt while we reestablish ourselves. That is a
condition which I think is worthy of our study.

I am speaking only as an American. I have absolutely no
sympathy with any of the unlawful things that any and all of the
belligerents have done as affecting our national life, our life and our
commerce.

They have all violated the law, and I think that the

United States as a whole was back of the administration, in the efforts
to bring to time Germany for her policy.
I maintain that we as a nation have treated England generously,
in supplying war munitions. England, on the other hand, has shown

us no gratitude. We have the right, and I want to say again I am
26

, rmany, nor are we to be concerned with how much our non-contra-

policy,

Peace Trade Without Interruption
Two things I should like to see done for the betterment of our
First, let the American business men not interested in war
suppliesand a large majority are not interesteddemand that the

and that at once; or that our exports of war munitions also shall
cease. I think that is absolutely neutral ground. We have a larger
percentage of our citizenship who are interested in trade with the
neutral countries than we have a citizenship that is directly interested

in the trade in war munitions. And while I have not a word to say
in opposition to our shipping war munitions, I do have something
to say on the other side, that citizens who are interested in peace
trade ought to be allowed to continue that trade without interruption.
Second : When the war is over there will be a readjustment
taking place all over the world, and every one of the important nations
is organized so that they will immediately protect themselves along
the lines of tariffs. But we, in our cumbersome method of swinging

from one extreme to the other, having a high tariff party in power
for four years and then swinging back to the free trade policyare
absolutely helpless for a fixed period of time. I believe that the
American business men should rise up and demand of the present
administration the appointment of a non-partisan tariff commission
which shall have the power to deal with these propositions especially
as they come to us as the result of this war.
The Country's Increasing Burden
It is a fundamental principle of economics that the destruction
of life and property is an economic waste, and in a conflict so farreaching in its effect as this one that is now raging the whole world
will have to help to pay the cost. The United States of America is
a most important part of this world, and the longer this conflict is

continued the greater will become the burden placed upon our
shoulders, which we shall have to bear as the result of a condition
27

with the creation of which we have had absolutely nothing to do.
On this account, and on this account only, I believe we as Americans
should contribute nothing which will prolong this struggle.
Now, in conclusion I am going to bring to you the plea which I
have made in every address that I have delivered since the outbrec)

of the war, and I believe that especially in an organization such as
ours in which we have a most complex membership, this plea will be
appropriate.

Patriotism of Peace

I heard President Wilson last winter make this most beautiful
and most significant statement. He said : "When peace will be as
handsome as war there will be no more war." What did he mean by
that statement? Ah, it is a handsome thing to see the citizens of a
nation laying aside all their differences of opinion, political, social,
religious, or whatever they may be, and standing shoulder to shoulder
as one man in the defense of the home land. But, ladies and gentlemen, I maintain that there is something that is far more handsome

than the patriotism of war. I am thinking of the opportunity that
is placed in the hands of the Americans and the citizens of our land
to demonstrate to the world what means the real and true patriotism
of peace.

Shoulder to Shoulder for Mankind
In this time in which we are living, we, as American citizens,
should forget that we have within our veins German blood or British
blood. This is the time when we should lay aside all of our social and
political and religious differences, or differences of whatever character
they may be, and stand shoulder to shoulder, united, I hope, not in
defense of our nation, but united in lifting up the lofty ideal, that of the
true fatherhood of God and the real brotherhood of man.

3
Are these Men Pro-German Agitators?
BY HENRY FORD
Head of the Great Ford Motor Company of Detroit and Employer of 18,000
Men Who Represent 56 Nationalities.
I would never let a single automobile get out of the Ford plant anywhere in the world if I thought it was going to be used in warfare.

I look upon war as nothing more than murdera wasteful sacrifice
of human life and a useless disruption of the world's social economic conditions by parasites, who control the governments of the countries now
at war. I mean the militarists.
I consider the man who aids the war, whose goods wll tend to pro-

long the war, even though they be sold under guise of aiding the injured of that warfare, is an accessory to the murders of war.
I can think of nothing lower in the moral scale than a man who
will grow rich on the blood of soldiers driven to battle, one against another, for no reason whatever.
Aside from the moral aspect of this slaughter, which lowers the
status of humanity to a level of primordial brutishness, I detest the sinful waste of material resources that attends the killing and the disruption of the business of the world; that prevents those men who are spared

in the battle line from enjoying the benefits that come from the labor
of Peace.

Every man's yery nature recoils from the sin of this slaughter. No
less repugnant is the feeling that the world's progress along every line
is halted, that business, science, commerce and everything stimulating
human endeavor, are thrown into a jumbled, confused heap.
There can be no stability while war lasts, and everything the world
does is a vast gamble. There is nothing to be gained by the nations that
are fighting. There is everything to be lost and everything is being lost.
The rest of the world, which has no quarrel with either side, is made
nearly as great a loser as either of the belligerents, by reason of the
closing of the usual avenues of legitimate commerce and the uncertainty
attending all business and commercial relations.
I have refused from the beginning to sell automobiles anywhere in
the world if it were known that the automobiles were to be used in
this war.

I maintain that attitude to the end of what I believe will be the la. J
of all wars. Thousands of cars were sought by each of the warring nations, but all were denied, and similar requests will continue to be denied.
If other Americans aid the war with the products of their industry, I am

sorry for them, as Americans and as men; I am sorry for Ameriobecause of them.
BY CHARLES M. HIGGINS
Standard Oil Director.
President Wilson should have stopped the exportation of ammunition from this country long ago. Our country's attitude on this subject

is merely building up a few people who profit by the manufacture of
arms and ammunition. Many big business men and corporation directors
that I know view the matter in a similar light.

BY REV. DR. BAKER P. LEE
Rector of Christ Episcopal Church of Los Angeles.

There is little doubt that an embargo on the shipment of arms and
ammunition from this country would greatly hasten the final chapter
of the terrible struggle across the Atlantic.
Anything that could be done by this country along those lines would
aid in making it the strongest nation in the world at the close of the war,
and as such it could be the Moses to lead the world into the land of peace
and brotherhood. All true Americans and Christians must commend
the action of the manufacturers who have declined war contracts at the
sacrifice of great profits.

BY GEORGE V. YOUNG
Mayor of Phoenix, Arizona.

I am sure that the thinking man and woman will realize the utter
folly and inhumanity of an advanced nation like the United States permitting commercialism to override Christian duty.
Just so long as this country continues to supply arms and ammunition to the warring countries, just so long will our advocacy of peace be
hypocritical. We cannot supply any nation those things that are employed to kill and maim and at the same time be conscientious in praying
for peace.
Questions of neutrality and certainly of commercialism should not
enter into, the present situation. We cannot hasten peace except at the
cost of miny human lives if we continue furnishing arms and ammunition to the warring nations. For the sake of humanity this practice
should be stopped. If the manufacturers cannot or will not realize the
irreparable injury they are doing to our nation, Our President and our

...ongress should certainly find a means of bringing an immediate end to
the practice.
BY MRS. COURT F. WOOD
President District of Columbia Federation of Women's Clubs.
ederated Club women stand for peace, and the bringing about of
peace by any honorable means that may be suggested.
The Federation in the national capital has a special peace committee

and it is fortunate in having to serve, as chairman of that committee,
Mrs. Belva Lockwood, a veteran peace advocate.

We should indorse most heartily the co-operation of every neutral
nation, at this time, in an effort to bring about peace among the warring
nations. Public sentiment in this nation should be educated against shipping ammunition and armament abroad to help peoples of the fighting
nations to keep on killing each other.
Whether an embargo on arms would be legal I do not know, but if
such an embargo were made on shipments it should apply, of course-,
to every nation alike and thus prevent our shipping to one nation what
we could not sell to another.
Washington, D. C.
BY RABBI ISIDORE MYERS
Los Angeles, Cal.

There is absolutely no escape from the logic in the argument for a
cessation of the continued shipment of war munitions to Europe, and
it is surprising that this phase of the war situation has not appeaied
the people before.

The manufacturers who make guns and shells are contributing to
murder and nothing else.
It is absolutely foreign to the high ideals of Americans, and it seems

to me to be within the power of the United States, and especially the
President, to stop it. It is a case of greed on the one side helping brute
force on the other.
I believe that the Government would even be justified in compensating these manufacturers for their losses rather than have this stigma
rest upon our nation.
We are becoming hardened to the cruelty of war, it seems, as reports from the front which shocked us during the first few months of
the war no longer create the same humane feeling.

BY FRANK WILLIS
Governor of Ohio.

"How can we pray for peace and yet send our warring brothers a
sword?"

30
31

The Trade in Arms.
An Editorial reproduced from the Chicago Tribune of September 16.]

It is almost a certainty that when Congress convenes the embargo

question will become a red hot political issue. The administration has been
virtually unembarrassed in its correct position maintaining the right to sell
in order to maintain the right to buy, but that immunity has been due to
the fact that the opposition has not had official voice. It will have when
Congress meets again.
When the national assembly was in session the question was not acute.
It had been debated academically, but it needed time to grow in seriousness
and, with Congress adjourned, it has had this time. Three elements are
likely to be influential in demanding an embargo. One will be comprised
of Congressmen representing pro-German districts. One is likely to be
contributed by Southerners demanding a way into Germany for high-priced
cotton and demanding, if it be not opened, a retaliation upon the nations
which block it. The third will be that of Americans moved by humanitarian
instincts to ask that our national co-operation in the work of man slaughter
cease.

Pro-Germans and Southerners will represent special interests, but the
third element will represent an uneasy American conscience. The conscientious scruple will be quickened by the thought of great and unnatural
profits, of the building up of great fortunes and the inflation of industries
upon such raw and dripping diet.
Where it is believed that the aid given the Allies is aid given humanity
the conscience will not be deeply moved, but where it is held that the
war is merely one for readjustment of power and boundaries the scruples
against complicity will be energized by the thought of the fortunes being
made.

The principle which the United States Government has maintained is,
in the opinion of The Tribune, important to the well-being of the United
States. The right to buy war supplies is a protection against the lack of
preparation. It is in theory. It easily can be in fact. The United States,
we safely assume, never will be sufficiently prepared. In time of emergency
it will be looking about in the market for what it needs and does not have.
In maintaining this safe principle the United States has made possible

the manipulation of markets and the inflation of fortunes in a manner
which is offensive to the American conscience. It is not within the
American conception of right to see men fattening their wealth upon the
sufferings of men.
The Gargantuan nature of the trade is an embarrassment to the principle insisted upon, although in the nature of things if it be permissible to
sell any quantity of material it is permissible to sell sufficient material.

Otherwise the principle is merely a rhetorical declaration. But the operations of the large capitalists have approached scandal and the hard selfishness of the men chiefly profiting from the maintenance of a sound American
policy may undermine that policy to our national detriment.
Continued neglect of public opinion, disregard of the interests of labor
employed in the vastly profitable munition factories and elsewhere, and
the obvious hogging of unnatural profits will augment the certain political
opposition to this necessary principle of trade in arms and the United States

will be done injury by the men to whom its policy has been the most
valuable.

An Open Letter to the President
HONORABLE WOODROW WILSON,
President of the United States.

My dear Mr. President:
About a year ago, at the outbreak of the war, you, as the head of the nation, called upon the
American People to humble themselves before Almighty God and pray for peace. That call has found
response in the hearts of millions of God's children, who believe in the efficacy of prayer and take to
heart the words of the Master, "Blessed are the peace-makers, for they shall be called the children of
God," and ever since they have offered their daily petitions. As the war has grown more furious,
their prayers have become more fervent and insistent. It is only too evident that these prayers have not
been answered. There must be a reason. Is it not our duty to make a heart-searching inquiry for such
reason? We have the divine promise that "the effectual fervent prayer of the righteous man availeth
much," together with the injunciion that "Righteousness exalteth a nation." We ask ourselves and we
ask you, the honored head of our nation, whether these prayers for peace by the American People can
bear the supreme test of such Righteousness? Is it not a humiliating fact, that whilst we have prayed
for the poor war-cursed nations, we have at the same time been diligent, almost mad to prey on them,
coveting and seizing their millions and hundreds of millions for the very things that killkill not only
outright on the bloody field of battle, but react on us and kill our prayers and make them futile,
yea, a heinous and blasphemous misuse of the name of God. Instead of being favored with a gracious
answer to our prayers, must we not rather fear the righteous wrath of Him, who amid the thunder of
Sinai has proclaimed, "I shall not hold him guiltless who taketh my name in vain"? This wholesale
exportation of death-dealing weapons is certainly not a manifestation of the spirit of interceding peacemakers, but rather of wanton peace-breakers. It may be legitimate according to man's law (although
even this is disputed by most competent authority). But man's law is often deficient"Summum jus,
summa injuria." Man's law legalized slavery, God's law abolished it. In times of supreme moment,
when the most vital issues are in jeopardy and exigencies arise, which no human casuistry could foresee,
we as a praying nation should not only look for wisdom from above, but should also obediently yield
to the law of Him, whom we invoke as "Our Father which art in heaven."
We are deeply grieved to note the continuance of the export of arms and ammunition in unprecedented and ever-increasing quantities. Our inconsistency because of this deplorable traffic has brought
us ridicule, contempt and shame. Our prayers for peace have become a mockery before the nations

and an abomination unto the Lord ;for only he "can ascend the hill of the Lord and stand in His
holy place, who hath clean hands and a pure heart."

Why have our prayers not been answered ?thus sayeth the Lord: " When ye spread
forth your hands, I will hide mine eyes from you; yea, when ye make many prayers, I will not

hear: your hands are full of blood!" Isaja 1, 15.
MT. VERNON, N. Y.
August 10th, 1915.

G. C. BERKEMEIER, D.D.
Director of the Wartburg Orphans' Farm School
Secretary of the General Council of the Ev. Luth. Church in N. A.
Editor of Official Organ of the General Council

D. A.W. WAR TRACTS
) Number 9.
An open Letter by John L. Stoddard, the veteran American Lecturer.
The older generation of Americans will remember the famous Stoddard LectureCourses, which described so entertainingly men and manners in foreign countries.

The founder of these was John L. Stoddard. Born and bred in the U. S. A. he
travelled extensively and studied for years the life and habits of other nations. His
words have the ring of forcible sincerity which we hope will attract many of his
fellow-countrymen to read them.

I have received some letters lately from America, whose authors
ask me why I do not write to them as formerly, and why a "difference of opinion" as regards the war should mar our friendship.
I have replied as follows:To us Americans, who through some
years of residence in Germany or Austria have learned to know
and love these countries, this is no simple "difference of opinion."
It is a part of our existence. You, at a distance of four thousand
miles, are able to discuss the subject academically, but we are in
the warring countries. We know at first hand of their heroism,
their exertions and their sufferings. We also know that were this

the condition of other places and people visited thus by Russians.
The point is, that, much as you would deplore such horrors,

war a war of conquest, the entire nation would not fight enthusiastic-

many young men whom we admire and love. They include musicians,
artists, scientists, students, and professors. Opposed to them, at a
distance of a few metres, are Senegal negroes, Indians, Turcos, and

ally, as it does to-day. We are surrounded by a multitude of sick
and wounded men, who in the awful firing line have risked their
lives in our defense. We see pathetic wrecks of splendid manhood,
youths whose limbs were frozen in the icy trenches, men whose
perforated lungs will never heal, and scholars whose keen eyes
have been forever darkened by splinters from American shrapnels.
Many of these we knew before. Many who fought beside them
will return no more. The parents also, who are proud to give
their sons, yet every day await with bated breath the published list
of dead and missing, are to us familiar figures.

We know,what History will yet confirm,that these two
empires never wished for or provoked this war.
We know, however, that their enemies, including Belgium, plotted
and prepared for it. We know that France, forever gnawed by the
devouring ulcer of "revenge," had poured milliards of francs into
the bottomless treasury of Russia, so that at the given moment
her armies might sweep resistlessly through Germany and Austria,
while troops from envious England and complaisant Belgium should,
with the millions sent by France, march equally victoriously to the

this is one of the armies which you are hoping
will ride over and subdue Germany and Austria!
Do you begin to see why we can hardly write to you "just as
formerly?"

In the Trenches of Flanders
stand to-day,unless Americans bombs or bullets have killed them,

Algerians,fighting for civilization, of course, against whom the
refined and rarely-gifted youths must frequently contend in handto-hand bayonet fights! If these young Germans are spitted and
stabbed to death by those savages, some of whom are apparently
first cousins to gorillas, you must logically rejoice. You hope that
they, and those who infamously called them there, will carry freedom

and civilization over the Rhine to Heidelberg and Bonn! What
you are practically saying is,"Anything is good enough to kill
a German." Can you expect us, to whom such a result would be
heartbreaking and abhorrent, to feel the same cordiality toward
you, while you hold such sentiments? Would that you understood
the German spirit! These men, inspired by their love of country,
need no cheap appeals such as are placarded on English walls and
tramcars, imploring citizens to enlist in Kitchener's army. Besides
the soldiers liable to service, millions of young Germans have
volunteered to drive the advancing foes from their loved Fatherland.

And England!

Rhine. We know that many ideas which you have formed at
England's instigation, such as the notion that the German people
have been forced into this war by an ambitious Emperor or by a
military caste, are utterly erroneous. The English fables that
Hungary desires to make a separate peace with Russia, that an
estrangement exists between Bavarians and Prussians, and that the
Germans, Austrians and Hungarians wish to dissolve their forms
of government and found republics, are ridiculous. Such nonsense,
when presented to a well-informed paper, ought to be thrown into
the waste basket. This is the second time in the space of fifty

years that the brotherhood of north and south Germany has been
sealed with blood. Even Austria, which, it was thought, would
crumble into its component parts at the first shock of war, displays
a splendid solidarity; while the United States of Germany were
never so united as to-day. Both love and loyalty to the aged
Emperor Franz Joseph and to William II in their respective
countries never were so strong. But still we see you drugged by
the knock-out drops of British lies, and seemingly immovable in
the opinions formed by you in those first fatal days, when your
bewildered minds were

We are simply dumbfounded at your attitude toward that Archhypocrite among the nations, whose monster empire is based on
ruthless conquest, and whose record in opium-cursed China, in
starving India, in the concentration camps of the Boer republics,
in ruined Ireland, and even in America is an everlasting disgrace.
You know that she is trying to starve our two beleaguered empires
and to deprive our millions of non-combatants of the necessities
of life. Yet you wonder that we retaliate and warn all merchant ships,
under penalty of destruction, not to bring munition to her! You know
that England rides roughshod over the rights of neutral nations, that

she even dares to hold up and to confiscate United States
mail, and, if she likes, suppresses cablegrams from America

enTr

111.4

I will not accuse all of you of sanctioning this inhuman prolongation of the carnage,

but are you doing anything to prevent it?
You do not need a precedent, but if you want one, you can find
it in the law of the 20th of April 1818, which has never been
abrogated, and on which, if I am not mistaken, Theodore Roosevelt based his action at the outbreak of the Russo-Japanese war.
This law forbids the sending of weapons to belligerents. There
are many more.
During the Spanish-American war the German Government
stopped the sale of arms and munitions of war to Spain.
At this time every neutral country, except the United States, has
placed an embargo on munitions of war.
Besides all this, President Wilson's own Declaration of Neutral-

ity: "We must be neutral in fact as well as in name, and we
must put a curb on every transaction, which might give preference
to one party in the struggle over another."
If, however, you do approve of this infamy, you cannot escape
the fact that you are thus contributing enormously to the massacre
of thousands, and are adding daily to the appalling number of
desolated homes. You are in fact the silent partners of the Cossacks
and the Fiji Islanders. The wretched excuse that "business is business" is a pitiful confession of the lowest of ideals. But even on
that level America, as a whole, is losing millions steadily, that only
a few may become rich.

Italy!
Logically also, if you wish Germany and Austria to be defeated,

I suppose you are glad to see at this juncture a hitherto neutral
nation stab its allies in the back, so as to "finish the thing up
quick !" If you have read Prof. Ferrero's article in the "Atlantic
Monthly" for April, you must have felt, I think, some qualms of
conscience. The Professor admits that it will be, (note the words),
"hard to invent" a cause for attacking an ally of thirty years. He
even confesses that the lands which he cynically describes as "Italian
provinces" never belonged to Italy. They are coveted, because so
many immigrants from his country have been allowed to settle
there, that the language of the prolific settlers has become the
dominant one! No historical claim, such as is made in regard to
Alsace and Lorraine, exists, as an excuse for taking them. Moreover,
the Professor allows that all the industrial, commercial and financial
classes, as well as the clericals, are against the project. Can you
imagine a greater crime than to carry out that scheme under such
circumstances? Yet he argues that it should be done ad majorenz
glorianz regni I And you?

I write these words on a lovely spring morning in the fruitful
valley of Andreas Hofer. Before me for a score of miles is a vast,
undulating sea of scented bloom. If your desires are fulfilled, this

may become a hell of devastated fields, burned houses and earth-

mine troops trom envious England and complaisant Belgium should,
with the millions sent by France, march equally victoriously to the

Rhine. We know that many ideas which you have formed

England's instigation, such as the notion that the German people
have been forced into this war by an ambitious Emperor or by St
military caste, are utterly erroneous. The English fables that
Hungary desires to make a separate peace with Russia, that an
estrangement exists between Bavarians and Prussians, and that the
Germans, Austrians and Hungarians wish to dissolve their forms
of government and found republics, are ridiculous. Such nonsense,
when presented to a well-informed paper, ought to be thrown into
the waste basket. This is the second time in the space of fifty
years that the brotherhood of north and south Germany has been
sealed with blood. Even Austria, which, it was thought, would
crumble into its component parts at the first shock of war, displays
a splendid solidarity; while the United States of Germany were
never so united as to-day. Both love and loyalty to the aged
Emperor Franz Joseph and to William II in their respective
countries never were so strong. But still we see you drugged by
the knock-out drops of British lies, and seemingly immovable in
the opinions formed by you in those first fatal days, when your
bewildered minds were

"Wax to receive and marble to retain."

II
LUgledily
also,u you w iii

And England!
We are simply dumbfounded at your attitude toward that Archhypocrite among the nations, whose monster empire is based on
ruthless conquest, and whose record in opium-cursed China, in
starving India, in the concentration camps of the Boer republics,
in ruined Ireland, and even in America is an everlasting disgrace.
You know that she is trying to starve our two beleaguered empires
and to deprive our millions of non-combatants of the necessities
of life. Yet you wonder that we retaliate and warn all merchant ships,
under penalty of destruction, not to bring munition to her! You know
that England rides roughshod over the rights of neutral nations, that

she even dares to hold up and to confiscate United States
mail, and, if she likes, suppresses cablegrams from America

to neutral lands like Switzerland!
Moreover, the English censor regulates your news! The American
correspondent, Colonel Emerson, sent 78 cablegrams to the United
States in the first months of the war. Only three went through
unchanged, and these told of German reverses; a fourth was falsified,
and 74 were suppressed! What cowards you are to submit to this!
Do not say that we, who are temporarily residing here and have
not hurried home through fear, are "un-American." We are infinitely more American than those of you who have not still enough

How we are situated.

of the old spirit of your fathers to resent such action from that

You ask why we should feel aggrieved because you hold these views.
I will try to tell you. During this long and terrible winter we have been
living in a state of mental tension of which you can form no idea. Upon

You have, and you deserve to have, the contempt of the world.
Think of it,through fear of England the Boston Post Office has

the wind-swept, snow-heaped crests of the Carpathians the troops
of Germany, Austria and Hungary, shoulder to shoulder, have
maintained for months amid unspeakable hardships, a wonderful
resistance to the Russian masses, pushed against them with an utter
disregard of human life. "Men are the cheapest thing we have,"
said recently a Russian general. In fact, day after day and night
after- night, hundreds of thousands of the soldiers of the Grand
Duke were driven forward in successive lines, like billows of the
sea, so that the last, at least, might scale the corpses of its predecessors, force a passage at all costs, and pour triumphantly through
vanquished Hungary. The prize,the actual object of the war,

the forming of a vassal Balkan State and the possession of the
Bosphorus, apparently justified in the mind of the Russian commander
any massacre. But thank God, we have finallyyet at what a

cost!repelled these numberless invaders. The human dyke, which
could alone preserve us from destruction, has not given way. But, now
when our brave men, who have survived, stand panting, but victorious

in Eastern Galicia, and we can deem ourselves secure, why do we
hear from you no word of joy, or message of congratulation? Does
not your British master let you know the news? Perhaps that can
explain your silence. I fear, however, that, having cast in your
lot with the Allies, you must regret that the appalling Slavic inroad
has been checked, and would have actually rejoiced, had it succeeded! Yet you are perfectly aware of Russia's history. You have
read Kennan's revelations, Kropotkin's horrifying statements, and
the recent stories of the Pogroms. You cannot seriously believe
that because this semi-brutal nation has become temporarily the ally
of England it is to-day essentially different from what it was before.
Upon my table lies a letter from a German naval officer, written in
Memel. With it he sent me several newspapers published there immediately after the expulsion of the Cossacks. I have also the description of the explorer Sven Hedin, who arrived in Memel the day

after the Russians left. A friend of mine here, who was born in
Memel, has received letters lately written from that pretty city. Do
you know what those vermin-infested, physically-diseased beasts did
in Memel? Do not be alarmed. I am not going to relate it. But
from the admirable letters of Herbert Corey, the American correspondent of the Cincinnati Times-Star, you can form some idea of

unchanged tyrant of the seas, whom they twice fought victoriously.

refused to forward to me, even at the sender's risk, a little package
of tea, although whole shiploads of guns and ammunition are meanwhile on their way to France and England!

England is treating you as she did in 1812.
She is to-day lampooning the German Emperor, as she ridiculed and
insulted Abraham Lincoln in our Civil War. She bullies you, snubs
you, ruins your commerce, humiliates you in the eyes of European
neutral nations and even of the Allies, and save for a few courageous
men, like Gov. Colquitt of Texas, you sit there hypnotized by such

silly words as "Militarism" and "Bernhardi,"
and kiss the hand that cuffs you. Thank God, you are not all so.
Friends write me that there are really millions there who think as
we do, and I read with joy of such Americans of British descent,
as Quincy Adams of Boston, and Profs. Hall, Wheeler, Sloane, and
Burgess, who are advocates of the Teutonic cause. I need not say
that those of you who recognize the truth about these empires and
wish for their success, were never so dear to us as now. We love
you, and are grateful to you for every word and act of sympathy.
God bless you!

The shipment of arms.
But the story is not ended. More than 860/0 of the wounds
and deaths now caused in the ranks of German, Austrian and Hungarian troops are the result of bombs and bullets sent from the
United States! You know in your hearts that this makes your
assertions of neutrality a mockery, and exposes the President and
the nation to unmitigated scorn. The United States by its continual
enormous shipments of arms, horses and ammunition to the Allies
has made itself one of the principal participants in this hideous
war, and only for the advantage of one side. U. S. Senator Clapp
of Minnesota has rightly said :"The spectacle of the United States
sending shiploads of food and clothing to the orphaned and widowed
people of Europe, and at the same time sending shiploads of guns
and ammunition to make more widows and orphans, is one of those
grotesque contrasts that we sometimes find. There is so much
money invested in the making and the sale of arms and war munitions
that we have simply been powerless to get anywhere with the bill."

xei1iIany rilIll /1.1LMLI'1ri Lt/ L/C llelettLell,

I write these words on a lovely spring morning in the fruitful
valley of Andreas Hofer. Before me for a score of miles is a vast,
undulating sea of scented bloom. If your desires are fulfilled, this

may become a hell of devastated fields, burned houses and earthstrewn corpses. Of course you do not wish that such a fate should
befall me personally, but in so far as you are eager for the realization of the above mentioned plan, you stand among the foes who
would destroy us.
We still think tenderly of our old friendship. We wave our
hands to you across the death-filled trenches in token of that old
affection. But so long as you regard as "Barbarians" these noble
nations struggling against a dastardly conspiracy; so long as you
calumniate one of the finest, noblest-hearted men the world contains
to-day,the Emperor William II; and so long as you desire a result
which means for us and for the world a great calamity, how can
you think that we can be the old-time friends?

One Word more.
There will inevitably come a time when you will have a rude
awakening. Do not deceive yourselves. Germany never will be
conquered. Never! Moreover, the wonderful victories of Hindenburg

and Mackensen, prove that there is now no possibility that AustriaHungary will be subdued by her colossal foe. The braggart prophecies about the Indians camping in Berlin and Cossacks in Vienna,
will find no fulfilment. No armed Englishman or Frenchman, or
any of their particolored savages, will ever cross the Rhine or see
the Spree. Whatever else may come, not that!
But England, your beloved master, has already lost muchvery

muchthat she will nevermore regain. Nor is the story of her
losses ended. The principal object for which England has intrigued
and fought through many generations has been to keep Constantinople
and the Bosphorus from Russian hands. Now she has been com-

pelled not only to concede them to her formerly hated rival, but
even to fight to bring them into his possession. Through her mad
jealousy of Germany, England has also turned the whole East
topsy-turvy, sacrificed her own prestige,

and made Japan the lord of the Pacific.
India and Egypt are no longer hers securely, and the final Nemesis
is at her threshold. You will perhaps one day perceive how
foolish you have been not to have given from the first your .7,1,-

pathies to the Teutons in their efforts to beat back tf, oiavs and
to obtain for all the, freedom of the seas. 71.0e two things they
will do, but alas, not with your good,:ii and moral aid. To you
will fall the baneful influence of England's policy in the Far East,
and you will live to see the arrogant, though decadent, Briton put
into the place he would long since have been compelled to occupy,
but for the mass of gold which he had ravished from a subject world.
(Reproduced from the "Continental Times" of June 7th.)

The facts and figures below are brought up to August 1, 1915.

tce then, Germany's position has been further greatly strengthened

Facts j!room the

radrurter eitutul

One Year of War

Territory Occupied on Western Front

Territory Occupied on the Eastern Front

Enemy's Territory Occupied by Germany. (Light Shading)
Aug., 1914 Enemy's Territory Occupied by Allies. (Dark Shading)
Aug., 1915

The Territory Occupied by Central Powers. (Light Shading)
The Territory Occupied by Russians. (Dark Shading)

Middle of August, 1914
,^1.!
,

Dun

nt-

ach.2

se.ypres

Calai

A ntwel9r,

First of August, 1915

oEssen

Diis,eldorf
cologne
le-Cbatnelie

/1.-

Arras
0/Alber

Coblen

Danzig

i
Quustin

oElbing

Rope:,

Solsson

Par is

o Chalon
mantrairail

sowers

Brorg

cReims

Thorn

Vetlen ernou

ugus

Graude
enbek

Aisne,

Cornpieg

Osterod

Marie,nwerde

WI'

Virry

h. Slonim

oBielostok

letrolenka
.
ovoGeorgievslt

Troy

Praga

vsk

Pinsho

o Swa

Ivangor d

Oppeln
eul.he

0
I

..z.S

Ratiber

iTaros law

recow?

Scale of MeleS
yalia

Neu Sand
Go3

Possession of Conquered Territory From Month to Month

Tarn

s`
soh

Kaschau4
0

IS'

Sc.. of Miles
90,000

80,000

lemysl

amok

Bartfeld*

100,000

50,000

rl e

ArN

stanislaa

100

kacs

'I-

Czerriowitz

16.010

i
40,000

70,000

1
1

30,000

40,000

30,000

..."-'

ii.

50,000

20,000

II
:
'
:

10,000 Ii-

--Oct.

Nov.

.4.

).
Dec. '14, to Aug. 1, '15

Sq.'''.

Kilometers

- - - - - - -French Curve

English Industry
in a Year of Peace

1 :) s . ....a
....gust Sept.

The Savings of

20,000 4

10,000

Square
Kilometers

60,000-I

German Curve

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. April May June July

Curve of Central Powers

Russian Curve

The first chart displays the varying for-tunes on the Western front, the second chart those on the Eastern I
front. It will be noted that after the first two and one-half months of war, the positions on the Western
front remained stationary. On the Eastern front, however, the Russians at first made large gains which
later were entirely wiped .out and reversed by German successes.

UL ILLIGVV CU

Cost of the First
Year of the War to England

Gains and Losses at Sea
Prisoners of
Teutonic
Allies

1,900,000
(July 28)

Increase in Number of Prisoners1
Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July

J/1

detained in enemy's ports at beginning of war not
included. On the side of the Allies the losses are

1,900,000
11,800,000,700,000

1,600,000

steadily growing. Since the historical day of February
18 (declaration of German war zone), the increasing
losses of the Allies are easily discernible, while German
losses remain almost stationary. The actual losses of
the Allies are much greater than is generally known,
as can be seen by the curve.

1,500,000
1,400,000

1,300,000
1,200 000

Russians
1,518,000

TONS

The curves indicate the tonnage of merchant ships,
sailing vessels and steamships definitely lost, that is,
those destroyed or condemned by prize courts; vessels

1,100,000
1,000,000

900,000

Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July
Loss <I se to C raisers, U-Br Ms an I Mine

Prinelp. 19 to 11-80 at

800,000
700,000

600,000
500,000
400,000

900,000

French

268,000

Serbs

300,000

800,000
700,000

Losses in Merchant Ships

600,000
500,000

50,000

400,000

Belgians
40,000

200,000

......,-.*

300,000

English
24,000

,..--

...'

....-'..

Allies: 790,000 tons

100,000

....-

....,.''

100,000

Germany: 255,977 tons

.....---'-- ---4
200,000

....""-

The uppermost of the three curves shows

the total prisoners taken by Germans and
Austro-Hungarians. The middle line shows
prisoners in German hands; the lowest shows
those in hands of Germany's Allies.

Losses of Germans

Losses of Allies

Losses in War Ships
Germany: 95.307 tons
Allies: 331,870 tons

Industrial Calla Lpse of France
The Portions of industrial France either occui )ied by Germans or included in the war zone
1

Iron Ore: 90%

Coal: 68.8%

Pig Iron: 85.7% Textile Industry:
68.7% Total Industry: 43%

Increased Cost of Living in England
Grains and Meat

...---.Products of Mines
July to Sept.I Oct to Dec. Jae. to Mar. April to June
890

850

800

750

700

The curved lines on the left
show the increased cost brought

about by the war in two of the
most important commodities on
the English market, grains and
meats, as well as the products of
the mines. The basis for these
calculations is to be found in the
London Economist. This pub-

Captured Guns

6,000

lication calculates the average

prices of the more important
650

commodities, based on the aver-

age prices from 1901 to 1915;
this average for grain and meats
600

shows an index figure of 500,
and for products of the mines

550

400.

The deviation from these

figures since the beginning of the
500

war are indicated on the chart.

460

i Amor

460

.Hr'.1

Savings Deposits of the German People
The Savings Capacity of the German People Before and During the War
After the First Year
Before the War
of the War

Changes in the Gold Reserves of the
Central Banks

11111
1914 July Credited to
Depositors

Shortly before the war, German
savings had passed the proud sum
of twenty thousand million marks.
Although the depositors had, in the
meantime, subscribed more than

M 20,180,000,000

From July 15, 1914, to July 15, 1915, in Marks

1914 July Credited to

Depositors M 20,183,000,000
Interest

2,363,000,000
M 22,540,000,000
, Deduct lor
War Loan
19/5 July Credited to

two thousand millions of war loans,

Germany

Depositors M 20,380,000,000

at the end of the first year the deposits showed an increase of more
than two hundred millions.

Increase 1049 Mill.

2,160,000,000

England

Increase 266 Mill.

Italy

Decrease 4% Mill.

France

Decrease 85 Mill.

Russia

Decrease 135 Mill.

and German Money Standards
England

omparisons Between English
July 15, 1915

Germany

Public Deposits
Other Deposits

Total

" 49.3
" 53.0

" 146.7*

Total

£ 283.5 Mill.

" 53.1
" e8.5
£ 81.6 Mill.
e8.79%

* £ 158.0 Mill., deducting 11.3 Mill. on behalf of Currency Notes Redemption Accounts of the
Bank of England.

M 8258 Mill.

.
Gold Reserve
Proportion of reserves to liabilities

£ 34.5 Mill.

MO
751

1852

.
.
.
.
.
Gold Reserve
.
.
.
Currency Notes Reserve .
Total Gold Reserve
.
Proportion of reserves to liabilities .

M 5415 Mill.

Imperial Bank Notes.
Currency Notes

Bank Notes .
Currency Notes
Public Deposits
Other Deposits

July 15, 1915

" 2392
.

28.94%

The facts and figures above are brought up to August 1, 1915. Sim

lommonPF--

:e then, Germany's position has been further greatly strengthened

HE CAREER OF LORD READING
Life-Story of the Head of the Anglo-French Commission

Now in this Country Seeking a Billion-Dollar Loan
Lord Reading, the head of the
Anglo-French Commission which is in
this country seeking a loan of one
thousand millions of dollars of American money, is a most picturesque
character.
The little boy, Rufus Isaacs, was
born in the heart of London, Oct. 10,

Disappointed in his hope of a
university education, he enlisted as a
common sailor and made a voyage to
Rio Janeiro. Returning to London, he
found in a broker's office an immediate opportunity for the development of
the peculiar talents of which he has
amply proven himself possessor; at
the age of twenty-five he had become a
member of the London Stock Exchange, and within twelve months had
gone into bankruptcy.
Within the compass of another
year he had married the daughter of
a wealthy merchant named Cohn and
had procured admission to the bar.
Mr. Isaacs almost at once won fame
In his adroit handling of bankruptcy
cases, and in the defense of enterprising gentlemen whom the world is too
much inclined to describe as blackmailers. Mr. Isaacs won his first
fame from his skillful defense of Mr.
Bob Siever, proprietor of "The Winning Post," a racing paper, notorious
for its delectable column "Celebrities
In Glass Houses" in which the editor
paid his respects to wealthy people
who _refused to meet his demands.
Isaacs made Bob Siever a popular hero
and became one himself.
Talents like Mr. Isaacs' could not
but be valuable in politics. Indeed
they were but a short time in gaining recognition; in 1904 their possessor was returned to Parliament as a
Liberal from the Reading district.
During the latter years of King Edward VII. Mr. Isaacs had the privilege
of being a frequent opponent of the
British Sovereign at the bridge table;
he was a good-natured loser, and
"played cards almost as badly as the
King himself."
Substantial rewards began to come
to him in 1909, when he was made
Solicitor-General; a year later he was
knighted and made Attorney-General
of England. The year of 1912 saw
Sir Rufus Isaacs, his Majesty's Attorney-General, a Privy Councilor,
Member of the House of Commons
and a member of the Cabinet. This
year also saw him engaged, in conjunction with his brothers Godfrey
and Harry, in a profitable enterprise
connected with deals in stock of the
Marconi Wireless Telegraph Company.
Godfrey Isaacs was the Managing Director of the Company; Rufus Isaacs,
a member of the Government, may or
may not have used his influence in
securing for the company a contract
with the Government and in getting
from the Government better terms
than otherwise would have been given
the compe,ny. Sir Rufus, in a Parliamentary 'inquiry, vehemently denied
that he had done this. He further
denied that he had taken advantage
of his position as a member of the
government and made profitable use
of his knowledge of the fact that
a Government contract was to be
awarded the Marconi Company. It
was on Oct. 11, 1912, that Sir Rufus
an the floor of the House of Commons
declared that he had not while the
Company was in negotiation with the
1860.

Government
shares.

bought

any

Marconi

It was months later, in the course
of an examination by a Select Committee chosen by Parliament to investigate the Marconi scandal, that
Sir Rufus remembered that he had
purchased 10,000 shares of American
Marconi stock, from his brother,
Harry, who in turn had obtained it
from their brother Godfrey, the Managing Director of the British Marconi
Company. This transaction was on
April 17, 1912, two days before the
Government announced that it had
closed a contract giving exclusive
wireless rights throughout the British
Empire around the world to the British Marconi Companya contract
which enormously enhanced the value
also of the subsidiary American Marconi Company. Sir Rufus now remem-

bered also that he had parted with

some of these shares to David Lloyd
George, Chancellor of the Exchequer,
and the Master of Elibank (Lord
Murray), Chief Whip of the Government Party. At this special hearing,
the Prime Minister, Mr. Asquith, and
Mr. Herbert Samuel, Postmaster-General, admitted that when Sir Rufus
denied having owned any Marconi
stock, they had sat by, heard, and
refrained from correcting the statement, although they knew it to be
false. The explanation of the eminent gentlemen was that they felt,
that, strictly speaking, only British
Marconi stock was under discussion.
Among interesting facts brought
out at the inquiry by the Select Committee of the House of Commons in
hearings beginning Mairch 26, 1913,
were the following:
Mr. Godfrey Isaacs had been connected with a great many mining
projects in which investors almost invariably lost their money. Sir Rufus
had never been a partner with his
brother in some of these schemes,
among them that of the St. David's
Gold Mine Company, which expected
to find gold in Wales. Sir Rufus had
testified that he had sold out his St.
David's shares at a small profit.
Rufus declared that he had himself
lost money, however, in the Gwynne
Company, another Welsh mining enterprise. The Isaacs brothers, however, were not particular as to what
country they exploited for minerals,
and they had done a good business in
the Hibernian Syndicate.
The Select Committee of the House
of Commons, appointed to investigate
the Marconi scandal, reported to Parliament on June 13, 1913. _The report
drafted by its Chairman, Sir Albert
Spicer, found that while the Ministers
had not used their official positions
for purposes of private profit, it
would have been better if Sir Rufus
Isaacs had abstained from the transactions under discussion and had been
candid in describing them. The Liberal members of the Committee agreed
substantially with Sir Albert's statement, though expunging from it the
censure implied. However, on behalf
of the Unionist members, Lord Robert
Cecil drew up a statement which must
be regarded as the unprejudiced (and
a most conservative) expression of the
sentiment of the British public. Anyone may read the following language
If they will consult the Special Supplement of The (London) Times for

June 14, 1913, page 8, column 3. Lord

Robert Cecil said:
"We are of the opinion that the
Attorney-General (Sir Rufus Isaacs)
acted with grave impropriety in making an advantageous purchase of
shares in the Marconi Company of
America upon advice and information
not then fully available to the public,
given to him by the managing director
of the English Marconi Company (his
brother, Godfrey Isaacs), which was

in the course of obtaining from the
government a contract of very great
importancea contract which even
when concluded with the government,
had to be ratified by the House of
Commons.
"By doing so he placed himself,

however unwittingly, in a position in
which his private interest or sense of
obligation, might easily have been in
conflict with his public duty.
"We find that the purchase of
shares by Ministers on April 17, was
made at a time when the shares could
not have been bought in the ordinary
course on the Stock Exchange, and at
a price lower than that at which an
ordinary member of the public could
have then bought them. The Attorney-General obtained these advantages
because he took the shares from Mr.
Harry Isaacs, who had to his knowledge taken them on even more advantageous terms from Mr. Godfrey
Isaacs. We think these circumstances
Increase the impropriety of the transaction."
There are certain additional incidents which shed light upon the
Isaacs methods. For instance: The
Master of Elibank investment in Marconi shares was made with party
funds and for the profit of the party.
The Master of Elibank was a large investor
in this way, his broke, being
one Charles E. Fenner. In the course

of events Fenner became insolvent.
The Parliamentary inquiry into the
Marconi scandal was dra wing near and
it was feared that Fenner's bankruptcy would bring to light the story
of the Isaacs, Lloyd George and Lord
Murray transactions. It was accordingly resolved to give Fenner finanIn spite of this he defaulted and fled the country owing immense sums of money. The Master of
Elibank at once resigned his position
as Party Whip and left the country,
making a mysterious journey to
France, Algeria, New York and South
cial aid.

America. His whereabouts were unknown during the hearing before the
House of Commons Committee. It was

not until last year that he returned
and was forced to admit the facts
given above.

Fenner was arrested in
Paris and returned to his country, and
in May, 1914, was sentenced to four
years' penal servitude.
It was charged that Sir Rufus
Isaacs was cognizant of Fenner's impending flight; that, notwithstanding
the fact that he was Attorney-General
of England, he made no effort to
prevent the criminal's escape.
Such is a partial history of the man
whom the Government of Great Britain has deemed best equipped to send
across the sea to make to American
bankers and business men representa-

tions designed to secure a loan of a
billion dollars.From The Vital lime, September 25.

.fri0 Mit

mil

.terten brolit iditvere
ontfer=q,nntite ber %ational anbuftrini $eace &nterence" bedt

men be

tterbrect)erife4T

6eibtruf0 mut nub rat bringenb,

Zetwfiten au O Nation aThanfett mt Wien..
Zer gefittiti,qu.kfcbuf3 bet Rational
Uafbiiattott, Z. U., 28. Sept.
tibititriaf 3eaceC.t7ortference" bat in feinem beutigen Ocriclit bie birefte Te,
lain-thiamin erboben, bah eine Tantieegruppe, an beren Spit e fftitglieber her
'Iyi-ctua ,0 43. Morgan & Uo. ffeben, mit 'EngIanb, RD:inlaid) nub Tutfanb eaten
Wit taufcbbanbef betrieb, um tine alliffiarbe Zoffate, al. 9Infeibe aufaubringen,

moffir amen ArieggieferunO,Rontrafte duoeficbert tuerben mitten, bie *ten
einen Rettoprofit von $400,000,000 einbringen.
Zie Tunbereferbe,Teborbe Win) ebenfaln bireft befcbufbigt, bet bet ttan&aftion Meier Wejcbafte fieb biiffig rubig berbaften du baben.
tin :Witte, Me c2Infeibe unmiiglicit 8u. maeben, tuirb ben Zepofitoren
bringenb angeraten, ibre. 'Iatiefber au O ben Wationalbanfen au aieben nub bie,
jefben intactManfen au bebonietert.
Uine ' f.inuebt. imb Berltiirung be ?InfeibebTane lei, fo beitt e in bem
Uomite,Tericbt, um fo bringenber geboten, well bie eurobitifcben iftenierungen
/turd, ungebeur0 Qfttbaufen ibrer Riieofcbutben jilt einem unbermeibficfmn
anferott genentibergeftetft fatten. jin 93anferatt butte, and, ben Znftituten,
:*tie tnit bent Zunborefertm,..Suftem oerfttiloft finb, wenn braftifcb ibre gefainten
ankiinfeibenben Meibmittef in bet Witte* an bie euroltaifcbett Miidtte feftgefeat
miirbett.

155

Eretutib,gomite, beffen 9,3orjitenber her frfibere RongrefOlbgeorbnete
f1inoid tit, tuurbe auf bem nonuent bet 91a3ionalnbuftrial
cc Uonference", tuelcber am 21. 'ZnIi in Valbington tagte, errtannt. Zie
reter unb Zefegaten bet auf bem Sionbent bertretenen ?Irbeiter, nub fanb,
trartfcbaftlicben 'Crganijationen rebrafentietten ffinf Rationen oNanifierter at
3._.`ct

Robert Rol-pier bon

met nub atoeieinbath .c.1Thillionen TRitgiiebet on Wrbeitererbanben.
Zie bolle 5.8frantIvortung bafilr, bob her SItieg immer noclj meiter geffibrt
ft
tuirb, baben, fagt bet Tericbt, bie obetftert , erren bet macbtigen berbrecbetijcben

ZruftV 3u tragen, bie ha 06eIb nub bag3 griegmaterial an bie nriegfilbrenben

'-iefetrt.

;fitafieber her Vorgan,Rirma, tbeIcbe fejt Z Oren bct Toff aAgebIfinbert
lath fo mancbe 2).liflion eingeftedt batten, feiett jett bit 90?eifter biejer Zrujt,
.. erfcbtatung, bie im eigenen Zntereffe bc0 UleIb au?, ben 'Oanfen be O
urn
lath,.
eferbe,Snftem aieben lath Ungfanb nub feinen Miietten botjtrecfen Mitt,

in 0_5:.genberfprecben ffir bie ungebeiteren ktieg6,Aontrafte au erfilfrett.
Zti,i '1/4.f.:re3utill,3ornile bet is, riebertVortferen3 bat, jagt bet Tericbt, ben
.abfotut fiber3engenben Zetoei6 in ben S',Anbett, bat ein negenfeitig0 Ueberein.
fount= 3ntifrben jener OattfieOgrubbe nub ben fitiiertett beftebt, nub bafi biefe
Winaimintereffut berei0 ctit ben Zunbefteferoer--Zanfen ntettr 6S $500,000,000
ge3ogen baben unb gegentniirtia hie eifriaften /Inftrennunnen maMen, ficb unbev
8fiatirb minbeftem: noM einen nieiMen t8etrag 3n oerfcbaffett.

Tie Ounbefteferbe.Zettitrbe tit an item Vane jener Winan3intereffen blurt

beteitigt.C.S.,.ie Meigert jicb nicbt nut, biefen Zram&iftionen einen Uinbalt au ge,
bieten, fonbern macbt aucb nicbt einmaI tin tebi ctit ibret 93ereittuilligreit, bie
gefamte Milliarbenjuntme an bet-vitt-igen nub au erfauben, baf3 Me abebitmitieT
bet Oanfinftitute be 93unberejerbe,(...=tiffem,.3 unbefcbtanft ant 1.2ieferung bon

q) a r gat WTI flit ben '2Infauf bon Munition unb fonjtigern Arie0material bet,
Manbt merben.

Zie Tunbereferbeebtirbe, in bet Vorgan bominiert, tuurbe fiir ben at.O.,

8 toed b om Rongtel3 organifiert, Me 9Rorganjcbe OleIbtruftmacbt du
91410beftomeniger fibt biefe ferbe unbeifoofte ffiacbt eine ,iiberauei
irffaute Slontroffe fiber tile 03etb. nub grebitmittel be 4 Zoff0 au, bie uon bem
unbarefette.e..bftem bebiitet merben fatten. Zie Uabf bon Teniamin, Strong
n., hem cinftigen Trafibenten her Tanfe6' St.tuft Ub.-in Retro Dorf, einer ocil,

.erftbren.

urg be VtorclanjAen Oientrujte. , 8um Cberbanpt bet Rem Dotfer Tunbe,
relerbe,Tanf ft tin gfandenbe Oeifpief bafilr, ba, NO Ounbe4refertte.Spftem
. on ben Ttorganfcben antcreffen boffin bebrrfcbt toirb.
1atildfitben

Troteft Der Zepoiltoren gegen
riten=1')nnipirn Bunet)men.
ben, jobath bie betreffenben Tanfen
Pit unbetbegtettanbbaftigfeit
on her Wmerican Zrutb Societn bet PM an her 9Infeibe beteifigten.
ampf gegen bie Arie0anfeibe bet
.c.xtt C'2eatn fpracb bann fiber Me

Illierten toeitergeffind. %lid) geftern tbabren 93eMeggrilithe, lbelcbe bit biefi,
enb fanb im Watfterbam Cpera gen Tertteter bet 'Mfiietten batten, tint
't_olifs _rine Raffennerfammlung ftatt, biefe Wnfeibe bem Tubtifuni fcbmacfbr,fr
tuefcbe jtarf befutt mar unb in toetcber
macben. 'Er griff aucb bie biefigen

hie aiethemutte knitation dur Tereite, Beitungen in fcbarfer
Tung her Wnleibe fortgefetit Murbe.
Zen R3orfit in bet gejtrigen Ter,
fammfung filbrte err N. S. Vc(tann,
trefeber in flare': fatficbet Ueije bet
3e-r1ammfung bie Zageorbnung
breitete nub beffert 211.0filbrungen
berbott burcb febbaf ten VIpptca0 unter,
brocben troutben.

T.3eije

an urtb

fate, bajd affein hie 5)earftfcben Beitun,

nen latter ben engliffien Ofattern eine
TobenRuette .Wuftabme macbten, roacbe
cantiintigun,/ nom Tublifurn tnit feb,
baftem Teifaff anklet/on/men tourbe.
llfuf hit gefebicbtficben Torgiinge drui,
fcben Ffinetifa nub Ungfanb eingebenb,

neiebjte Rebner, .err Ternbatb tvie er an bet attln bon Beiturto,
Ribber, ft:Otte in langerer butuorifti, artifetn, tocldje tuabrertb be Tfirger,
fomie ftfiber nub fnitter
idler Rebe au, bob bit Triten abet friege,.
fcbienen,
newt), baf3 atainnb itet her
faac nub (to., toie, err Ribber fie
nannte, in Retro Dorf bereit elite 2ebre
etbaften batten.
Zie , offnitngen,
tuefcbe fie fief) auf einen atiefenpump
gemacbt batten, leien in 91icf0 dereon,
nett, benn bc0 biefige Tubtifum jei bei
ueitent mebr geneigt, ficb bie Zafcben
,-;uaubalten, a.0 fie flit bit 32Iffiterten au

einb biefe .2anbe 'Mat. %uf her an
eitf troie et burcb berfcbiebene
Minbgebun.3en Titnarcf nacb, baf3
beren

beutfibe Regierung, tote ba

beuffcbe

Toff 8u alien Beiten nub befonbee,
MOO 2a-nb in fctiverer R3ebrangni
Mat, ficb at treue Iteunbe ermiejen

Linb in @Intact°, tvobin ficb bit babe. ?Ittf Me 9reuf3erung be bent,
S'inana,genie bet tttiierten lett bege, fcben 251ifitar,attado t,aubtmann
ben batten, merben fie nocb troeniget We, 13aben ibiotifcbe D anfeW eingebenb,
Offnen.

genfiebe finbert.

bemerfte er, bafd

ctupt-tnann b. Tanen

Bum Scbluf3 recite .tert Ribber bie eigentlicb rticljt Reues gefaat babe. Ur

Utablierung einer groten @ertnan Wine, trieberbote, baf3 irgenb ein Danfee, ein
titan Rational,Tanf an, troefcbe gegen VInterifanet, bet ficb bunt bie falfcben
bie Termenbung amerifanifcber 03eIber Tericbte her TreiTe berfeiten Iief3, ibt
im ,;.intereffe bet aliietten em n macbti, gefb far bieje ,2Infeibe bergugeben, in
bet at em n Zbiot lei.
ge Tolfluerf bifben lone.
nerr C'2eartt fagte darn S&trul3,
Racb
errn Ribber fbracb
eremiab 0'2,earn. Ziefer uncut/fib, fei jet nidit bie 91bficbt her Zepofi,
licbe tatfraftigfte Reath U,nglanb nub toren, ibr Metb an ben Tanfert du
feiner potitifcten Uebergriffe biett tufe, nebmen. Terfcbiebene Zepojitoren bat,
her chic fangere ungemein fel-felt-the ten 6 getan nub ibre Bit/fen ter,

Rebe, toot-in er . umor nub Tatbo?, in lot-en. c2Iber menn bict 1nleilte 811fiaribe
brilfanter Veife u bermifcfien berftanb. fame, bann toiirben bit Tamen her
Or bericbtete annocbjt, bat Zepoft, Tanfen Eldora:a ymacfit rnerben, nub
toren. ruelcbe ilber $10,000,000 in ante: qatt belfe bcrnn ben Q3anfen."
(tine 93ntjcbaft nig; hem Vejten
tifaniicben Tanfen angelegt batten, ibn
nub hie 2Tmerican Stuart Societn be bracbte Tr. ;','ame?, perantfin Zrautrnan
nacbricbtigt batten, bob fie bon' nub gan3 bon sniftnaufee, metcbcr feinen Stant),
tie Tejtrebungen her Wmerican Zrufb punft ar? Zeutfeb91merifaner in Me,
Societb gegen Me VIttIeffie imterftiiten jer 7ingetegenbeit mit berebten Sorter
Lathnte._ Zepartitnguth.cf4. telx.ir mar, 4ettlorbob.

,Utb2,e

gerabe in bie abri%
in bon Striegg,Thmition interef,
nicbt

,terten Ateifen frtapp tnirb."

jonbern

rut firth,
.2anbeg,

franft em n berebernbes
ment au bringen berrabgen.

ataliener Indic=

Reine 971annmeiber.

SrlitadgfrIjiff ;300 Zote.

ift ferner Zettfacbe, bat bie Tan.
begiiblicbe Oorftettung bet euffragette,
bag beif3t ether F8ertret."n
fstiinen

Mercbe biejeg
zabifat
OiefebTecbtg,
torpe, eigentTicb tricbt berbient, fonbet-tt burcb
Wert; ruffifdle glotte erfotg,
bie Ternrabtaffigung beg mittraTi en
reidi beftbolfen.
gefcbtecbtg berfauert, ficb art ben 9Ratt,
nern u racben berfuljt, unbent fie ibnert
,Oine Oabag, bag 2eben aucb auf poritifcbem Oebiete
13arig, 28. 3ept.

Mabrfebeintidy

Xattrbboot

bon

meTbet, bat; ficb fauer matt, troabrbaftig nicbt auf un,

epercbe au g

tuf bem italienifcben 3cbtacljtjcbiff Ze:
Iofion ereignet
tebetio Orin" eine
tat, butcb toelcbe Sloraer,inmiral 9lubin
)e(.,ferbin fein Veben eingebilf3t bat. Tie
5.`,epejcbe Tatt erfennen, bat bag Scbiff
'elbit berloren ift. Sic bc.t fotgenben
Mortraut:
,,tin Oar!) be itaTienifcben 3cbtac1jt:
cbiffe.g Oenebetto Orin" ift ein Oranb
tuggebrocben, bem eine,ftplofion fofate.

Big Yeti flub.at sOffigiere nub 379
Ream bon
norben.

bet ZefOung

fete bentjcbett Zuffragetten pat.
gteicb grog/ Terfammtung bon Man,
nern trairbe fein griitereg euanturn an
Zntertigeng nab potitiftem Terftanbnig
auf3rabeifen ge'babt baben, Mid bide
Tarnen, beren auf3ere
rf,teinung
auterbem eine captatio benebotentiae
mar, beren ficb aucb bag berbartetfte
.

1.12/ittnerber3

firanen.
bie

nicbt

batfe

berf151ief3en

Tie befte Oropaganba, tnetcbc

beutfcben

3uffra9etten für

gerettet C.Sace macben fonnen, ift bie,

ire

bctf3 fie

bie Manner unit unb breit 8u einer
tinter ben oten befinbet ficb Aorta, ibrer frObticben '30ratro1ien einfaben.

'fbmitaT 9htbin be Gerbin.

linb fie toerben unit her ReitC..,.xtimmen

Ter Oranh lit gufartig entjtanben." genug erbalien, urn mit friegenben ac00
:2&labtfc5einliM 'mar ein f. u. f. Zaucb: nen aug hem Rampfe fur bag arauen,
root baran fcbutb. ?Inm. b. ;Neb.)
ftiminrecbt berborgugeben.
Tag 3cbtactufdyiff' 93enebetto Orin"
Oiekett nub Wuttiraeben.
abrgeug
bon
13,427
Zonnen
at em n '
!rib batte in j_'yriebenggeiten eine Te,
Oierebet tourbe bei hem Tiner na,
g tar int tilt:lid) arab unb micbt gu fnapp. Vlber
nctnnung bon 720 Aiipfen.

sabre 1904 fertiggefteltt toorben unb mobtgemerft, eg maven nicbt bie

ojtete $5,750,000.
men, inetdje bie Tangen Elleben bieften,
Tag acbtacbtfcbiff, bag bet Zor, fonbetn bie artanner, troetcbe arg
abnougbt,Rfaffe angeborte, mar mit nub 81=01 at 91nbatrafet bet RMauen,
girMffgiilligen, bier acingartigen unb betnegung anivejenb waren nub ben Za,
fecbggiirtigen ,qanonen beftildt nub men afferbartb
djIlneS nub burcbaug
erbem mit 20 Rtniiffpfirabern unb Oerbienteg. fagten.
mei Tlaginigefcbilten auggerilftet. 2tucb
er:r Z'2earty tacit bet erfte Rebner,
latte 0 bier Zorpebotangietrobre. Tag tnefcber neben feinen unermiibticben
,rxbrgettg enttnicrette eine etnerfigkit
4ampf gegen ben q3ump bet Via:Herten
on 22% ,S1noten.
auch- nod Bet fanb, ben gra= einige
r.mejto fflubin be
nonter=?Ibmird
orte fiber ibre ZuaTififation
Mar her Rommanbant be bergticbe
F.,erbin
afg eiimmgeberinnen gu, fagen, nacb,'

Dffeilithe bet Wiliierteu
ittuft lian3.
(aartfetung bon bet 1. Eeite.)

bem bie %orfiterin, art. Ratberine '3.
Treier ibrett Tericbt erftattet batte.
getangte auterbern nod) ein
mulifatifcbeg 13rogramin
rau %bete Strueger
gur 9,fugfiibrung.
fiinftterifLbeg

fang einige Lieber nub

err Oabriet

bet efte fpiette .mebrere Ciolitt,(3oTog
rangiififcbe . auptjtabt burcbbraufte, ift mit atterfennengtoetter Otabour.
treitg jtarf abgeflaut, unb bag $ubti, ter ben %ranefenben befanb ficti aitcr)

bie 13rafiben,
inn beginnt u fragen, ob bie begon, AMT. Varty Norrete
tene Cffenfibe fortgefeV Metben fort tin bet grauentimintecbtg42i9a bon
Ne beute ban her grant fomtnenben Vanbcrttan, i" ran Trot. 23m. Sbeobetb

entfprecben ' ben gebegten unb anbere.
rof3en 'ftuartungen nit*, obgreicb bet,
Stehle 13robibitionittinnett.
mbert toirb, bat hie ?.trfiierten fomobt
Zie Ibec, bat unit bet infilbrung
91orbmeftert at in her Ebampagne beg graueuffimmteci0 her 13robibition
an am Water borbringen unb iiber %fir unb Zor geoffnet tniirbe, ift, fo,
000 tneitere Ciiefangene gemacbt baben. Ineit bie beutfcbeit euffragef ten in #13e,
Oetubigung beg Vubtifumg initb tracbt fommen, gruttbfatfcb. Vatichr bet
d'art, bat bet nadjite grate 3orfto13 Zamen fcbmingen bag Ofag unb man,
rjt in gruel abet btei Zagen unterrtom, die audj ben grumpen unit bergerfreuen,
ten merben farm, ba er burcb ein tar, bet Oirtuofitat. Rratt
r. Arifbna.
;0 Zombarbeinent borbereitet tnetben We* etnen Zoe* ant , e-rrrt @gorge
1-lacbricbten

aiiff e.

eufbefter Oiered augbracbte, tat bieg

Ter frangiififcbe 1Benera1ftab metbet mit einem folcil' eTenanten ectrantnge
ii feinem beutigen Wacf)mittagOericbt, ibteg Tecberg, bat ficb irnenb eine
afj bie ,Vfttiierten Inatmenb bet 9-tacbt in rebeng,Srflaib harm bate ein Egem,
frtoig ectmit± lilt Scbritt Ibeiter atgen pet
nebmen fonnen.
aftlub bon *Goncbeg binge,
err 9111aire batte fiir ben nomfort
rumen feien, unb bie grangojen and) bet T,amen
iibrigeng exurb in bet aner,
a her Tbanmagne einige gortfttrilte
fennengtnerieften
Veife geforgt unb
etnacbt batten, befon.ber.g in bet Mich,

, gegen 1:r it. 5:)figei 9-1o. 1E3:., rnejtlieb be-rbient bafilr nocry ein befiater.-,-=on bent 933eifer 91abarin unbn orbricti 23ort bet 2lnerfentrang.

Rif groter detniffenbaftigfeit imb
n ben 'Argonnen ,fei bet bon ben Ruborfommenbeit berfaben bie amen

on 2Raffigeg.

eutfcbett bei 2a:dRi1te,23lorte unb

beg Q;nipfanggcoutiteg

4Imt, nauttia)

Strifbna,
ante unit fecbg abet acbt Tatairlonen Rran 8tofaTenber, arm
Rtau Giturtetnedb, art.
:nternommene QIngriff afigettinen arau
,orben nub bie furngiififcben Zutopen 03rof3 nub nh..Soffirtattn.

atten bie berforenen auteren Gcbditen,
Senator eobget dattin tot.
taben gum Zeit gurilderobert.
2,tran,
Vail., 28.Siept.
g,rau
Ter um .9)1itternacbt beriiffentricbte
dg, te beutige Oeticbt be frangafiften Wnrta C. 2obge, bie Oattin beg Ounbeg,
C.-^,enatiorg
entn q:abot 1Mb9e, ift beute
3eneratjtabe5 fautet:
iftrtoig brangett nnfere ZriMben rflb nacb nut furgem 2eiben an erg,

eute meter but, aber nut fufhveife. frbtracbe aug bent .2eben gefcbiebert. Tie

In ben .tiiben bei Soucbeg maditen tuir Oerftorbene mat eine Zocbter beg Tear,
ngefiibr 100 05efangene, bie Item Dom 2IbmitaIg Ebarteg ,c5entty abig.
ftlfirben nricagfdmuotab guriicraebrarb=

en ore4ifdmit (garbeforog angebilren.

Zn bet abampagne madyten mir

feichfattg

einige

.. 5,ortfcbritte,

tt1fcbmittt3er tvanbert int 8nditbaut.
Ter Zideffperutant Zobn Rearug, bet

befon, hot mebteren 'O3oci5en nacb bem EeTbft,

erg in bet (Meaenb bon 9Raffigeg,
morbe her nunftreiterin ,Rreba Rager,
',ere 800 Oiefangene in unfere firm in 157 O3eft 112. Sir. berbaftet
'Oe fielen.
Inurbe, tourbe geffern im 93unbeg,
ot ben 21rgonnen bercbacy bet eirtb biftriftggeticbt bon 91icbter ,Zyougb
afcre Salibengraben beftig, body et.= gtvei Zabren Rucbfbaug in Wttanta bet,
iberten tuir bag aeuer tuirffam.
urteirt, nacbbem er fit.h fcbutbig belannt
utterienefecbte fanben feine ftatt, body batte, fatfcbe aiinfgig,Centgitilde berge,
aubgranatenau ftent gu baben.
mberten tuir bei
riffen meitere Zeite unterer ertten
'iiityengraben' guriicf, in benen ftd bet defangene, 21 dettbiite tittb 40 9ita,
frbinengetuebre gettiegen.
h !lectern bebanotet butte.
Tie stveite beutfdte Oerteibirrunag.
sigrieftertuatbe nub im Oatvbe=
waren tuabrenb beg gangen Tar, fink tneftfidy bon &Mug befinbet fidy in
unferm Oefin. Tiefe SteTtuna mar
beftiae Rattottaben im Oange."
auberorbentlidy hart befefttat unb be
Oien,Wretub metbet neuen erfoig.
ftebt nub einem %et! bon Stbiitfettgriiben,
(3.2,er ReTbmar, bombettfilberen lInterftanben unb meb-.
onbon, 28. 3ep.t.
Rrend j meTbet beute ?Thenb fiber reren grilen %rtuverfen.

-3ituation an her 3tont her briti,

Zrinmen:
Y2Bir bebauoten bag Range Terrain
91o. 70 nub baben
iirblitty bunt
ortfebritte gemadn.
ci thing tveitere
.nfere grieggbeute ift nun auf 3000

ueir finb leM an bet britten Zer=

teibigungginie in engftem Stontaft mit
hem aeinbe.

Zei Zamtume mirth beide bon un.

feren glienern ein eifettliaTptsug beg

aeinbeg bombarbiert."

THE PEACE WORK OF TODAY.

By David Starr Jordan, President of
Leland Stanford University, Cali-

exhaustion of the people concerned.
No one can read the future; but we

anticipate that -this rivalry cannot

fornia.

continue. Through sheer-ruin Europe

The great political and moral strug-

ments and to provide better safeguards
against declarations of war. The

gle of the next fifty yearsbloodless,
we hopewill not be between nation
and nations but between militarism
and freedom. It is said in Europe that
this is a war of old men, in which
young men are condemned to pay and
die.

In so far-as this is true, it is

because old men are educated under
old influences,the traditions of envy,
suspicion, secrecy and war. The young
men, wilingly or not, must come under
the influence of internationalism

spread everywhere by travel, trade
and science, the most cosmopolitan

of all human efforts, because it arises
from entering into the work of others,
and it persists because every door is
opened wide to all.
The war spirit in all its ramnifications rests on traditions of the dark

The nation considered as a
tion,at least to that part of it not
ages.

great power is intolerable to civiizachoked in traditions of violent but ignoble history. And the question of
our century is this: shall the old rela-

tion of armed peace go on until the
nations are fattened for another war,
or shall we build up civilization again
on a new basis of personal security,
mutual trust and mutual help?

This is not a question of nation
against nations, nor can it ever be

settled by force of arms. In every
nation are those who believe in trust
and friendliness, that the international war system is a temporary phase
of an immature civilization, to pass

away even as its prototype, cannibalism, in the maturity of our race.
Those who believe in ultimate right. eousness, that this is God's world and
not the Devil's, stand naturally on the
Side of peace. Not necessarily for
"peace at any price," for sometimes
peace canot be had at any price whatever.

But we would like to see the

price-lists before deciding. With Abraham Lincoln, we would count the cost

before throwing to the winds the
strength that goes with law-abiding.
There may be no honorable way out

of war; but only a few times in a

century is there an honorable way Into
it. We that call ourselves peace-work-

ers see no such way before ifs. We
see no way of getting into war unless
we ourselves take the plunge. And *-

go into war is to throw away the
gains of centuries, and to fill with hate

the only great nation that has so far
risen above its withering influence.
For our nation stands primarily not
for freedom nor for democracy, but

for international and interracial friendships, without which freedom and democracy are alike impossible because

not permanent
The division of the future is not between Germany and the allies, but be-

tween those who believe war as in
itself normal, salutary and righteous
as a part of a nation's day work, and
those who believe it vicious, ruinous,
unrighteous, at best a last resort of
'murdered, mangled liberty," The
first group will build up the war system in time of peace, by way of prepreparedness for an unholy plunge. To

this end all else must be sacrificed,
as there can he no perfect preparedness if money or strength is expended on anything else. To military rivalry there is no limit save absolute

wil be forced to reduce her arma-

young men, those that are left of
them, will be heard from, and they
will have scant respect for the older
order of armed diplomacy and the
framework on which it rested. This
does not mean absolute disarmament

at least not till the modern spirit is
dominant throughout Europe.
A nation which does not believe in

war should guard itself against surprises; but the size of the equipment
Should represent the minimum of
safety, and its military force should
be the last resort and not the first in
case of international misunderstandings. Whatever armament persists
should be under the civic authority
and not the dominant power within
the nation. They do not strenuopsly
object to increase of army or navy
if convinced of the soundness of the motive behind it. They are naturally
suspicious of the influence, in this
connection, of those interested in the
resulting profits. We have more confidence in men in active service than
in outclders who speak for the expanSion of the service.
The workers for international frien-

ship recognize the great service of

many army and navy men to the
cause of peace. In America, these officers are not drawn from a special
sublimated caste, but from the body
of the people. It is said that as a
rule they are neither "militarists or
pacifists." And yet a peace-lovingthat is, law-abiding--nation has the
right to expect all of them to stand

on the side of peacethat is. "law"

as opposed to the lawlessness of war,
for "war is a deed of violence that in
its operation knows no bounds."
The peace-workers See nothing in
the present horizon, accident except-

edthat indicates greater need of d-

fense than existed before the war. To
talk of war with some particular nation as "inevitable" is a way of bringing it on. It opens the way to some
sudden stroke or ultimatum, pushed on
by those who hope to gain by war or
by the stimulation of international fear
and hatred.
They are wiling to admit that their
judgments are not infalible and that

all those who really abhor war, and
wish to keep our nation law-abiding,
and therefore at peace, are at one
with them in their main purposes.
They believe that men who agree as

to the ends in view can come together
in details.
The peace workers believe that the
final safeguard against war is found

in education, in the realization that
war, not peace, is a negative conditionthe absence of security and law;
and that. by its destruction of the best
in its generation, it brings about raceexhaustion for generations to come.
There can be but one idea in rational
education in these regards, and this is

"to present the facts of war and its
causes, and particularly the present

war, to the minds of students that they

will learn to hate war."
Meanwhile the worker fov peace, as
Dr. Fried observes, is not a fireman
to be called on in a crisis to put out
a fire. He is the agent of fireproof
holding material, which. if generally
adopted, will make fire impossible.

Full text of Papers of Benjamin Strong, Jr. : Correspondence with Associations : Regarding the American Truth Society, 1915

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