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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 W therefore propose to aseept R §= e u 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. 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 The offi Ir 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. in 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 in 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. 1r .A.,/,'ANYJ 1.1140.4. VIOStIMM IMIARIPAIXIMIVINATAIWAR.W.A,T,44AMM, q.klig' sk.F lant.,Ag,/,,,,111,,,SALMIPVII, z imall.(1114)1KatTratt TrallianYlittrectieNtiedYttliANT >4 tristaatigit lirtarVITINIWWW4AltrltriAllYaNtaitteNlYettimlYfirtTityiatiAliyinliavIdavidaytteit ettl.DPASMATAIIMIMPAPV, \TAIMIIMPAM," mirriNTWiN), * The lusitania" Case 1111,1111111X 11111 X ll X X X Was Bryan's Resignation Justified? X X uJ IN X X TRUTH JUSTICE PEACE a WITH COMPLIMENTS OF at FER DI NAN D HANSEN at TRUSTEE AMERICAN TRUTH SOCIETY I a I 1133 BROADWAY a . a at : . I BY HISTORICUS JUNIOR a a NEW YORK I XXIN1111111111111.11 JUNE, 1915 Published by HUGH H. MASTERSON 170 CHAMBERS STREET NEW YORK CITY 1, 3 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. 4 5 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. 6 7 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 9 S 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. 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. 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 But 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. 11 10 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? 13 12 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 0 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, 14 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. 15 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." 16 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- 17 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 18 19 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 20 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 22 23 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. 25 24 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 0 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 26 27 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 is 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 28 29 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. No 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. 30 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: 31 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. . 32 33 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 AssociaBuffalo, New at York, Aug. 31, 1899; also "Private tion 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 34 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." 36 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." 37 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 38 39 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 41 40 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- 4 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). 43 42 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 44 45 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- 47 46 defense, or so to weaken them as to facilitate its own subjugation." 4 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 49 48 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- 4 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 50 51 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 52 53 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 4 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 . 54 with supplies, and the means of prolonged resistance, will be guilty of an aggression and injury towards that power." 55 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 57 56 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 58 59 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 lays down the . affecting their war' . . Jefferson .. 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." . S. 60 61 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- 62 "My reason for resigning is clearly stated in my letter of resignation, namely, that I may employ as a private citizen the 63 0 40 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. 64 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 65 "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 a 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. 66 67 "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." 69 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. 70 71 "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 the Congressmen and United States divided 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 to apprehend what developed 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 in small section of the Eastern States, making , are down, except ourabanks in consequence are filledto seventeen ammunition and with money. The American Locomotive Works only worked up 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 ofMany immediate interest. 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. 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. If loaned 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 c 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. 1 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 ? in 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 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- 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 duce the rentier to exchange his specie for war bonds. Russia Unable to Export Gold from every man, woman and War Debt child in Great Britain of $5.62 a year. Our government statistics show that our Perhaps the new Lord Chancellor has also observed that our bank deposits in 1914 total over eighteen and a half billion dolOur National One Hundred and Eighty-Seven Billion Dollars lars and our national wealth exceeds eighty-seven hundred billion and 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. 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. public debt is a trifle over one billion dollars with a corresponding interest charge per capita of twentythree cents, a year. Wealth Exceeds Russia without the vodka tax, as an income asset is a bankrupt nation. Both these countries have been stripped of their France and one 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 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 forein shadows 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 in Poland, front as well as the German invasion of Courland, are 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. thinking citizens of the German agitatorsmust appeal to all of theput America first must be people 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 2 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 5 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 6 ("): 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- tymtheir markets and their trade. But this temporary relief came to ing 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 8 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 ! I. 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- 10 11 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. 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 12 13 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 Sh 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 14 sons. 1 ! 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 20 21 within her own organization. I am speaking now, and the thoughts that I give are more particularly my convictions, in regarn to 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 0 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 exact hgui-es. But we do know this, that many of them know the 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" 0 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- 10 1111.11.11MMIL._ j C time to save the face of the administration. I believe absolutely speaking as an American onlywe have a right to trade in nonthat contraband goods with belligerents, and our right to trade with neuif it had not been for this war we would have been indeed in a very tral countries is sacred to us. We are not concerned with the question serious condition as the result of our international policy. 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 I , 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. 28 29 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. 32 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 gr 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 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! Ile, 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 at 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 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 majorem gloriam regni ! 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 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 perhaps one day perceive how You will is at her threshold. 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. S. 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, a First of August, 1915 oEssen Diis,eldorf cologne le-Cbatnelie 1, /1.- Arras 0/Alber Coblen Danzig i Quustin oElbing Rope:, OL Solsson Par is o Chalon mantrairail sowers a Brorg cReims Thorn Vetlen ernou Menu ugus Graude enbek Aisne, Cornpieg Osterod Marie,nwerde t WI' Virry h. Slonim oBielostok letrolenka . ovoGeorgievslt ' Troy Praga 7 vsk Pinsho o Swa Ivangor d Oppeln eul.he 0 I ..z.S so W 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' 00 Sc.. of Miles 90,000 80,000 lemysl amok Bartfeld* 100,000 50,000 rl e /- ArN A_ - _C stanislaa 100 kacs 'I- Czerriowitz 16.010 i 40,000 70,000 , 1 1 1 I 1 l 30,000 . , 40,000 I 30,000 ..."-' ii. i 50,000 20,000 I , , II : ' : . , 1 V , % , / t II \ 10,000 Ii- Ar --Oct. Nov. .4. ). Dec. '14, to Aug. 1, '15 Sq.'''. Kilometers - - - - - - -French Curve English Industry in a Year of Peace % 1 1 :) s . ....a ....gust Sept. The Savings of \ . 20,000 4 10,000 Square Kilometers i 60,000-I f 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 1 1,800,000,700,000 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 18 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 i 1 100,000 I ....- ....,.'' 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 A 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 II 460 I .Hr'.1 I 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. 1 and German Money Standards England 4i omparisons Between English 66 . Public Deposits Other Deposits 66 " . . Total . . . ., . . . . . . £ 34.5 Mill. . . " 49.3 " 53.0 . " 146.7* . £ 283.5 Mill. . . . . . . m . . " 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 CC . . MO 751 1852 . . . . . . Gold Reserve . . . Currency Notes Reserve . Total Gold Reserve . Proportion of reserves to liabilities . M 5415 Mill. Imperial Bank Notes. Currency Notes . Total July 15, 1915 Germany 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, 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 Mar- 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 compass of another the year he had married the daughter of coni Company. Sir Rufus now remema wealthy merchant named Cohn and bered also that he had parted with had procured admission to the bar. some of these shares to David Lloyd Mr. Isaacs almost at once won fame George, Chancellor of the Exchequer, In his adroit handling of bankruptcy and the Master of Elibank (Lord cases, and in the defense of enterprisMurray), Chief Whip of the Governing gentlemen whom the world is too ment Party. At this special hearing, much inclined to describe as black- the Prime Minister, Mr. Asquith, and mailers. Mr. Isaacs won his first Mr. Herbert Samuel, Postmaster-Genfame from his skillful defense of Mr. eral, admitted that when Sir Rufus Bob Siever, proprietor of "The Win- denied having owned any Marconi ning Post," a racing paper, notorious stock, they had sat by, heard, and for its delectable column "Celebrities refrained from correcting the stateIn Glass Houses" in which the editor ment, although they knew it to be paid his respects to wealthy people false. The explanation of the emiwho _refused to meet his demands. nent gentlemen was that they felt, Isaacs made Bob Siever a popular hero that, strictly speaking, only British and became one himself. Marconi stock was under discussion. Talents like Mr. Isaacs' could not Among interesting facts brought but be valuable in politics. Indeed out at the inquiry by the Select Comthey were but a short time in gain- mittee of the House of Commons in ing recognition; in 1904 their posses- hearings beginning Mairch 26, 1913, sor was returned to Parliament as a were the following: Liberal from the Reading district. Mr. Godfrey Isaacs had been conDuring the latter years of King Ed- nected with a great many mining ward VII. Mr. Isaacs had the privilege projects in which investors almost inof being a frequent opponent of the variably lost their money. Sir Rufus British Sovereign at the bridge table; partner with his he was a good-natured loser, and had never been aof these schemes, brother in some "played cards almost as badly as the among them that of the St. David's King himself." Gold Mine Company, which expected Substantial rewards began to come to find gold in Wales. Sir Rufus had testified that he to him in 1909, when he was made David's shares had sold out his St. at a small profit. Solicitor-General; a year later he was Rufus declared that he had himself knighted and made Attorney-General lost money, however, in the Gwynne of England. The year of 1912 saw Company, another Welsh mining enSir Rufus Isaacs, his Majesty's At- terprise. The Isaacs brothers, howtorney-General, a Privy Councilor, ever, were not particular Member of the House of Commons country they exploited foras to what minerals, and a member of the Cabinet. This they had year also saw him engaged, in con- andHiberniandone a good business in the Syndicate. junction with his brothers Godfrey and Harry, in a profitable enterprise The Select Committee of the House connected with deals in stock of the of Commons, appointed to investigate Marconi Wireless Telegraph Company. the Marconi scandal, reported to ParGodfrey Isaacs was the Managing Diliament on June 13, 1913. _The report rector of the Company; Rufus Isaacs, drafted by its Chairman, Sir Albert a member of the Government, may or Spicer, found that while the Ministers may not have used his influence in had not used their official positions securing for the company a contract for purposes of private profit, it with the Government and in getting would have been better if Sir Rufus from the Government better terms Isaacs had abstained from the transthan otherwise would have been given actions under discussion and had been the compe,ny. Sir Rufus, in a Parliacandid in describing them. mentary 'inquiry, vehemently denied the Committee agreed eral members of that he had done this. He further substantially with Sir Albert's statedenied that he had taken advantage ment, though expunging from it the of his position as a member of the censure implied. However, on behalf of the Unionist members, Lord Robert government and made profitable use of his knowledge of the fact that Cecil drew up a statement which must a Government contract was to be be regarded as the unprejudiced (and awarded the Marconi Company. It a most conservative) expression of the was on Oct. 11, 1912, that Sir Rufus sentiment of the British public. Anyan the floor of the House of Commons one may read the following language declared that he had not while the If they will consult the Special SupCompany was in negotiation with the plement of The (London) Times for 1860. 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 finan- spite of this he de- In faulted 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 imThe pending flight; Lib- notwithstanding that, 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 lath,. eferbe,Snftem aieben lath Ungfanb nub feinen Miietten botjtrecfen Mitt, urn e 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, idler Rebe au, bob bit Triten abet friege,. fomie ftfiber nub fnitter faac nub (to., toie, err Ribber fie fcbienen, newt), baf3 atainnb itet her 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 R3ebrangni fctiverer 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 I ,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 etnacbt batten, befon.ber.g in bet Mich, fennengtnerieften Veife geforgt unb , 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 *- 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, gains of centuries, and to fill with hate and therefore at peace, are at one the only great nation that has so far with them in their main purposes. They believe risen above its withering influence. that men who agree as For our nation stands primarily not to the ends in view can come together for freedom nor for democracy, but in details. The peace workers believe that the for international and interracial friendships, without which freedom and de- final safeguard against war is found mocracy are alike impossible because in education, in the realization that war, not peace, is a negative condinot permanent The division of the future is not be- tionthe absence of security and law; go into war is to throw away the tween 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 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.