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+ The Project Gutenberg eBook of England And, by Dr. E.&nbsp;J. Dillon.
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+<pre>
+
+The Project Gutenberg EBook of England and Germany, by Emile Joseph Dillon
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever. You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: England and Germany
+
+Author: Emile Joseph Dillon
+
+Release Date: July 6, 2009 [EBook #29338]
+
+Language: English
+
+Character set encoding: ISO-8859-1
+
+*** START OF THIS PROJECT GUTENBERG EBOOK ENGLAND AND GERMANY ***
+
+
+
+
+Produced by Irma Spehar and the Online Distributed
+Proofreading Team at https://www.pgdp.net (This file was
+produced from images generously made available by The
+Internet Archive/American Libraries.)
+
+
+
+
+
+
+</pre>
+
+
+
+
+<h1>ENGLAND AND<br />
+GERMANY</h1>
+
+<p class="center" style="padding-top: 4em; font-size: 70%">BY</p>
+
+<p class="center" style="font-size: 130%">DR. E.&nbsp;J. DILLON</p>
+
+
+<p class="center" style="padding-top: 2em; font-size: 70%; line-height: 250%">WITH AN INTRODUCTION<br />
+
+BY</p>
+
+<p class="center" style="font-size: 120%"><span class="smcap">The Hon. W.&nbsp;M. HUGHES, M.P.</span></p>
+
+<p class="center" style="padding-bottom: 4em; font-size: 70%">PRIME MINISTER OF AUSTRALIA</p>
+
+<table summary="publisher">
+<tr><td style="text-align: center; line-height: 150%; padding-right: 6em; font-size: 90%">BRENTANO&#8217;S<br />
+NEW YORK</td>
+
+<td style="text-align: center; line-height: 150%; font-size: 90%">CHAPMAN &amp; HALL LTD.<br />
+LONDON</td></tr>
+
+<tr><td colspan="2" style="text-align: center">1917</td></tr>
+</table>
+
+<div style="width: 35%; margin-left: auto; margin-right: auto">
+<p class="printer"><span class="smcap">Printed in Great Britain by
+Richard Clay &amp; Sons, Limited,</span>
+BRUNSWICK ST., STAMFORD ST., S.E. 1,
+AND BUNGAY SUFFOLK</p>
+</div>
+
+<p class="dedication">
+TO<br />
+<span style="font-size: 140%">H.S.H. ALICE</span><br />
+PRINCESS OF MONACO<br />
+THIS PARTIAL PRESENTMENT OF THE<br />
+BEGINNINGS OF A WORLD<br />
+CATACLYSM
+</p>
+
+
+
+<h2 style="padding-bottom: 1em"><a name="INTRODUCTION" id="INTRODUCTION"></a>INTRODUCTION<span class='pagenum'><a name="Page_vii" id="Page_vii">[vii]</a></span></h2>
+
+
+<p><span class="smcap">Behind</span> any human institution there stand
+a few men&mdash;perhaps only one man&mdash;who direct
+its movement, protect its interests, or serve
+as its mouthpiece. This applies to nations.
+If we wish to know for what a nation stands
+and what are its ideals and by what means
+it seeks to realise them, we shall do well to
+know something of the men who lead its
+people or express their feelings.</p>
+
+<p>It is of vital importance that we should
+understand the attitude of every one of the
+nations&mdash;both friends and enemies&mdash;involved
+in this war. For in this way only can we
+know what is necessary to be done to achieve
+victory.</p>
+
+<p>And the remarkable man who has written
+this book knows those who lead the warring
+nations in this titanic conflict very much
+better than ordinary men know their own
+townsmen.</p>
+
+<p>Dr. Dillon has moved through the chancelleries
+of Europe. He has seen and heard what
+has been denied to all but very few. In the
+Balkans, that cauldron of racial passions which,
+overflowing, gave our enemies an ostensible
+cause for this war, he moved as though an invisible
+and yet keenly observant figure. He<span class='pagenum'><a name="Page_viii" id="Page_viii">[viii]</a></span>
+could claim the friendship of Venizelos and
+other Balkan statesmen. He has travelled as
+a monk throughout the mountain fastnesses,
+he has slept in the caves of Albania. He
+understands the people of all the Balkans,
+speaks their tongues as a native, and knows
+and assesses at their true value their leaders.</p>
+
+<p>At the time of the murder of the Archduke
+Ferdinand and the Archduchess, Dr. Dillon
+was in Austria, and he remained there through
+those long negotiations in which Germany
+tenaciously clung to her design of war.</p>
+
+<p>How well he knows Germany let his book
+speak. His knowledge of Russia is profound.
+A master of many languages, he occupied a
+chair at the Moscow University for many
+years, and his insight into Russian politics is
+deep.</p>
+
+<p>In this book he speaks out of the depth of
+his knowledge, and tells the people of Britain
+what this war means to them, and what needs
+to be done before we can hope for victory.
+He speaks plainly because he feels strongly.</p>
+
+<p>It may be that we cannot agree with him in
+everything that he says. But no one, after
+reading Dr. Dillon&#8217;s remarkable book, will any
+longer regard the war as but a passing episode.
+It is a timely antidote to that fatal delusion.</p>
+
+<p>For this war is a veritable cataclysm, and
+the future of the world hangs upon the result.
+We must change our lives. Insidiously, while
+we have called all foreigners brothers and
+sought foes amongst ourselves, the great force
+of barbarism, in a new guise and with enormous<span class='pagenum'><a name="Page_ix" id="Page_ix">[ix]</a></span>
+power of penetration and annexation, has
+worked for our undoing. This force now
+stands bared, in the hideous bestiality of
+Germany&#8217;s doctrine of Might, and it can be
+defeated only by an adaptation of its methods
+that will leave nothing as it was before.</p>
+
+<p>Dr. Dillon&#8217;s unfolding of the story of German
+preparation is, it will be admitted, one of
+fascinating interest. Of its value as a contribution
+to political and diplomatic history it
+is not for me to speak. But to its purpose in
+keying all men to the pitch; all to a sense of
+the great events in which we are taking part,
+I bear my testimony. &#8220;Germany is wholly
+alive, physically, intellectually, and psychically.
+And she lives in the present and future&#8221;
+(<a href="#Page_311">p. 311</a>). And the living force of Germany
+requires us to rise to the very fulness of our
+powers; for as the champions of truth and
+right we must prove ourselves physically and
+morally stronger than the champions of soulless
+might.</p>
+
+<p>Germany is wholly alive; but she is alive
+for evil. We whose purpose is good, whose
+cause is justice and whose triumph is indispensable
+if honest industry and human right
+are not to disappear from mankind, are as yet
+not fully alive to the immensity and necessity
+of our task. We must awaken, or be awakened,
+ere it be too late.</p>
+
+<p>Germany is living in the present and in the
+future. It is a present of determined effort,
+of unlimited sacrifice, of colossal hope. The
+future for which she strives and suffers is a<span class='pagenum'><a name="Page_x" id="Page_x">[x]</a></span>
+future incompatible with those ideals which
+our race cherishes and reveres. Either our
+philosophy, our religion and code prevail, or
+they fade into decay, and Germany&#8217;s aims
+remain. The choice is definite.</p>
+
+<p>There can be no parley, no compromise with
+the evil thing for which Germany fights. There
+is not room for both. One must go down.</p>
+
+<p>We must win outright. And we can and
+shall win&mdash;if we bend every thought, our whole
+will, our every energy, our utmost intensity of
+determination to the great work. Failing this,
+we shall secure only a victory equivalent to
+defeat. We chose the part of free men, and,
+when purified by complete self-sacrifice, shall
+emerge from the ordeal a great and regenerated
+people.</p>
+
+<p class="right"><span class="smcap">W.&nbsp;M. Hughes.</span></p>
+
+
+
+<h2 style="padding-bottom: 1em"><a name="CONTENTS" id="CONTENTS"></a>CONTENTS<span class='pagenum'><a name="Page_xi" id="Page_xi">[xi]</a></span></h2>
+
+<table summary="toc">
+
+<tr><td class="rightalign"><small>CHAP.</small></td><td class="leftalign">&nbsp;</td><td class="rightalign"><small>PAGE</small></td></tr>
+
+<tr><td class="rightalign">&nbsp;</td><td class="leftalign">INTRODUCTION BY THE HON. W.&nbsp;M. HUGHES</td><td class="rightalign"><a href="#Page_vii">vii</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_I">I</a></td><td class="leftalign">THE CHARACTER OF GERMANY</td><td class="rightalign"><a href="#Page_1">1</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_II">II</a></td><td class="leftalign">THE GERMAN SYSTEM OF PREPARATION</td><td class="rightalign"><a href="#Page_7">7</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_III">III</a></td><td class="leftalign">GERMANY AND ITALIAN FINANCE</td><td class="rightalign"><a href="#Page_27">27</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_IV">IV</a></td><td class="leftalign">THE ANNEXATION MANIA</td><td class="rightalign"><a href="#Page_37">37</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_V">V</a></td><td class="leftalign">GERMANY AND RUSSIA</td><td class="rightalign"><a href="#Page_53">53</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_VI">VI</a></td><td class="leftalign">THE STATESMANSHIP OF THE ENTENTE</td><td class="rightalign"><a href="#Page_81">81</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_VII">VII</a></td><td class="leftalign">TEUTON POLITICS</td><td class="rightalign"><a href="#Page_88">88</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_VIII">VIII</a></td><td class="leftalign">A MACHIAVELLIAN TRICK BY WHICH RUSSIA&#8217;S
+HAND WAS FORCED</td><td class="rightalign"><a href="#Page_99">99</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_IX">IX</a></td><td class="leftalign">GERMAN PROPAGANDA IN SCANDINAVIA</td><td class="rightalign"><a href="#Page_108">108</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_X">X</a></td><td class="leftalign">GERMANY AND THE BALKANS</td><td class="rightalign"><a href="#Page_116">116</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XI">XI</a></td><td class="leftalign">THE RIVAL POLICIES</td><td class="rightalign"><a href="#Page_136">136</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XII">XII</a></td><td class="leftalign">PROBLEMS OF LEADERSHIP</td><td class="rightalign"><a href="#Page_146">146</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XIII">XIII</a></td><td class="leftalign">PROBLEMS OF FINANCE</td><td class="rightalign"><a href="#Page_161">161</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XIV">XIV</a></td><td class="leftalign">READJUSTMENTS</td><td class="rightalign"><a href="#Page_175">175</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XV">XV</a></td><td class="leftalign">THE POSITION OF ITALY</td><td class="rightalign"><a href="#Page_192">192</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XVI">XVI</a></td><td class="leftalign">ROUMANIA AND GREECE</td><td class="rightalign"><a href="#Page_214">214</a><span class='pagenum'><a name="Page_xii" id="Page_xii">[xii]</a></span></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XVII">XVII</a></td><td class="leftalign">GERMANY&#8217;S RESOURCEFULNESS</td><td class="rightalign"><a href="#Page_227">227</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XVIII">XVIII</a></td><td class="leftalign">THE PERILS OF PARTY POLITICS</td><td class="rightalign"><a href="#Page_236">236</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XIX">XIX</a></td><td class="leftalign">PAST AND PRESENT</td><td class="rightalign"><a href="#Page_246">246</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XX">XX</a></td><td class="leftalign">PROBLEMS OF THE FUTURE</td><td class="rightalign"><a href="#Page_272">272</a></td></tr>
+
+<tr><td class="rightalign"><a href="#CHAPTER_XXI">XXI</a></td><td class="leftalign">THE FINAL ISSUE</td><td class="rightalign"><a href="#Page_296">296</a></td></tr>
+</table>
+
+
+
+<h2><a name="OURSELVES_AND_GERMANY" id="OURSELVES_AND_GERMANY"></a>OURSELVES AND GERMANY<span class='pagenum'><a name="Page_1" id="Page_1">[1]</a></span></h2>
+
+
+
+<h2><a name="CHAPTER_I" id="CHAPTER_I"></a>CHAPTER I</h2>
+
+<h3>THE CHARACTER OF GERMANY</h3>
+
+
+<p><span class="smcap">During</span> the memorable space of time that
+separates us from the outbreak of the catastrophic
+struggle, out of which a new Europe
+will shortly emerge, events have shed a partial
+but helpful light on much that at the outset
+was blurred or mysterious. They have belied
+or confirmed various forecasts, fulfilled some
+few hopes, blasted many others, and obliged
+the allied peoples to carry forward most of
+their cherished anticipations to another year&#8217;s
+account. Meanwhile the balance as it stands
+offers ample food for sobering reflection, but
+will doubtless evoke dignified resignation and
+grim resolve on the part of those who confidently
+looked for better things.</p>
+
+<p>The items of which that balance is made
+up are worth careful scrutiny for the sake of
+the hints which they offer for future guidance.
+The essence of their teaching is that we Allies
+are engaged not in a war of the by-past type
+in which only our armies and navies are contending
+with those of the adversary according
+to accepted rules, but in a tremendous struggle
+wherein our enemies are deploying all their
+resources without reserve or scruple for the
+purpose of destroying or crippling our peoples.<span class='pagenum'><a name="Page_2" id="Page_2">[2]</a></span>
+Unless, therefore, we have the will and the
+means to mobilize our admittedly vaster
+facilities and materials and make these subservient
+to our aim, we are at a disadvantage
+which will profoundly influence the final
+result. It will be a source of comfort to
+optimists to think that, looking back on the
+vicissitudes of the first twenty months&#8217; campaign,
+they can discern evidences that there
+is somewhere a statesman&#8217;s hand methodically
+moulding events to our advantage, or attempering
+their most sinister effects. Those
+who fail to perceive any such traces must
+look for solace to future developments. For
+there are many who fancy that the economy
+of our energies has been carried to needless
+lengths, that the adjustment of means to
+ends lacks thoroughness and precision, and
+that our leaders have kept over rigorously
+within the narrow range of partial aims, instead
+of surveying the problem in its totality
+and enlarging the permanent efficacy of their
+precautions against unprecedented dangers.</p>
+
+<p>The twenty months that have just lapsed
+into history have done much to loosen the
+hold of some of the baleful insular prejudices
+which heretofore held sway over the minds
+of nearly all sections of the British nation. It
+may well be, therefore, that we are now better
+able to grasp the significance of the principal
+events of the war, and to seek it not in their
+immediate effects on the course of the struggle,
+but in the roots&mdash;still far from lifeless&mdash;whence
+they sprang. For it is not so much the upshot
+of the first phases of the campaign as the
+deep-lying causes which rendered them a foregone
+conclusion that force themselves on our
+consideration. Those causes are still operative,<span class='pagenum'><a name="Page_3" id="Page_3">[3]</a></span>
+and unless they be speedily uprooted will
+continue to work havoc with our hopes.</p>
+
+<p>It is now fairly evident that the present
+war is but a violent phase in the unfolding
+of a grandiose ground idea&mdash;the subjugation
+of Europe by the Teuton&mdash;which was being
+steadily realized ever since the close of the
+Franco-German campaign of 1870. It is likewise
+clear that, despite her &#8220;swelled head,&#8221;
+Germany&#8217;s estimate of her ability to try issues
+with all continental Europe was less erroneous
+than the faith of her destined victims in their
+superior powers of resistance. The original
+plan, having been limited to the continental
+states, was upset by Great Britain&#8217;s co-operation
+with France and Russia. But, despite
+this additional drag, Germany has achieved the
+remarkable results recorded in recent history.
+And with some show of reason she looks forward
+to successes more decisive still. For in
+her mode of conceiving the problem and her
+methods of solving it lie the secret of her
+progress. But there, too, is to be found the
+counter-spell by which that progress may be
+effectually checked; and it is only by mastering
+that secret and applying it to the future
+conduct of the struggle that we can hope to
+ward off the dangers that encompass us.</p>
+
+<p>Germany is like no other State known to
+human history. She exercises the authority
+of an infallible and intolerant Church while
+disposing of the flawless mechanism of an
+absolute State. She is armed with the most
+deadly engines of destruction that advanced
+science can forge, and in order to use them
+ruthlessly she mixes the subtlest poisons to
+corrupt the wells of truth and debase the
+standards of right and wrong. And this she<span class='pagenum'><a name="Page_4" id="Page_4">[4]</a></span>
+can do without the least qualms of conscience,
+in virtue of her firm belief in the amorality
+of political conduct. Her members at home
+and abroad, whose number is not fewer than
+a hundred and twenty millions, form a political
+community of whose compactness, social sense
+and single-mindedness the annals of the human
+race offer no other example. All are fired by
+the same zeal, all obey the same lead, all work
+for the same object. She sent and is still
+sending forth missionaries of her political
+faith, preachers of the gospel of the mailed
+fist, to every country in which their services
+may prove helpful. Diplomatists, journalists,
+bankers, contrabandists, social agitators, spies,
+incendiaries, assassins and courtesans, willing
+to offer up their energies and their lives in
+order to circumvent, despoil or slay the supposed
+enemies of their race, address themselves
+each one to his own allotted task and discharge
+it conscientiously.</p>
+
+<p>Those German colonists abroad are the eyes
+and arms and tongues of the monster organism
+of which the brain-centre is Berlin. They
+endeavoured to stir up dissension between
+class and class in Russia, France, Britain,
+Belgium, to plant suspicion in the breast of
+Bulgaria and Roumania, to create a prussophile
+atmosphere in Greece, Switzerland and
+Sweden, and to bring pressure to bear on the
+Government of the United States in the hope
+of fomenting discord between the American
+and British peoples. They have occupied posts
+of influence in the Vatican, are devoted to
+the Moslem Caliph, cultivate friendship with
+the Senussi and the ex-Khedive of Egypt, are
+intriguing with the Negus of Abyssinia, and
+spreading lying rumours, false news and vile<span class='pagenum'><a name="Page_5" id="Page_5">[5]</a></span>
+calumnies throughout the world. During the
+years that passed between the war of 1870
+and the outbreak of the present European
+struggle, that stupendous organism contrived
+by those and kindred means to possess itself
+of the principal strongholds of international
+opinion and influence, the centres of the chief
+religions, the press, the exchanges, the world&#8217;s
+&#8220;key industries,&#8221; the great marts of commerce
+and the banks. It has friends at every
+Court, in every Cabinet, in every European
+Parliament, and its agents are alert and active
+in every branch of the administration of
+foreign lands. And while suppleness marked
+their dealings with others, they were inflexible
+only in their fidelity to the Teuton cause.
+Thus in Russia they were conservative and
+autocratic in their intercourse with the ruling
+spheres, and revolutionary in their relations
+with the Socialists and working classes; in
+France and Britain they were democrats and
+pacifists; in Italy they were rabid nationalists
+or neutralists according to the political sentiments
+of their environment; in Turkey,
+Morocco, Egypt and Persia staunch friends
+of Islam. They intrigued against dynasties,
+conspired against cabinets, reviled influential
+publicists, fostered strikes and tumults, set
+political parties and entire states by the ears,
+dispelled grounded suspicions and armed
+various bands of incendiaries and assassins.</p>
+
+<p>But in spite of cogged dice and poisoned
+weapons, the comprehensive way in which
+the enterprise was conceived, the consummate
+skill with which it was wrought out towards
+a satisfactory issue, the whole-heartedness of
+the nation which, although animated by a
+fiery patriotism that fuses all parties and<span class='pagenum'><a name="Page_6" id="Page_6">[6]</a></span>
+classes into one, is yet governed with military
+discipline, offer a wide field for imitation and
+emulation. For the changes brought about
+by the first phases of the war are but fruits
+of seed sown years ago and tended ever since
+with unfailing care, and unless suitable implements,
+willing hands and combined energies
+are employed in digging them up and casting
+them to the winds, the second crop may prove
+even more bitter than the first.</p>
+
+
+
+<h2><a name="CHAPTER_II" id="CHAPTER_II"></a>CHAPTER II<span class='pagenum'><a name="Page_7" id="Page_7">[7]</a></span></h2>
+
+<h3>THE GERMAN SYSTEM OF PREPARATION</h3>
+
+
+<p><span class="smcap">On</span> the historic third of August when war
+was formally declared, its nature was as little
+understood by the Allies as had been its
+imminence. The statesmen who had to full-front
+its manifestations were those who had
+persistently refused to believe in its possibility,
+and who had no inkling of its nature
+and momentousness. Most of them, judging
+other peoples by their own, had formed a high
+opinion of the character of the German nation
+and of the pacific intentions of its Government,
+and continued to ground their policy in war
+time on this generous estimate, which even
+when upset by subsequent experience still
+seems to linger on in a subconscious but not inoperative
+state. At first their preparations to
+meet the emergency hardly went beyond the
+expedients to which they would have resorted
+for any ordinary campaign. In this they resembled
+a sea-captain who should make ready
+to encounter a gale when his ship was threatened
+by a typhoon. Hence their unco-ordinated
+efforts, their chivalrous treatment of a dastardly
+foe, their high-minded refusal to
+credit the circumstantial stories of sickening
+savagery emanating first from Belgium and
+then from France, their gentle remonstrances
+with the enemy, their carefully worded arguments,
+their generous understatement of their<span class='pagenum'><a name="Page_8" id="Page_8">[8]</a></span>
+country&#8217;s case, and their suppression of any
+emotion among their own folk akin to hatred
+or passion. In an insular people for whom
+peace was an ideal, neighbourliness a sacred
+duty, and the psychology of foreign nations
+a sealed book, this way of reading the bearings
+of the new situation and adjusting them
+to the nation&#8217;s requirements was natural and
+fateful.</p>
+
+<p>To the few private individuals who had the
+advantage of experience and were gifted with
+political vision the crisis presented itself under
+a different aspect. Some of them had foreseen
+and foretold the war, basing their forecast
+on the obvious policy of the German
+Government and on the overt strivings of
+the German nation. They had depicted that
+nation as intellectual and enterprising, abundantly
+equipped with all the requisites for an
+exhausting contest, fired with enthusiasm for
+a single idea&mdash;the subjugation of the world&mdash;and
+devoid of ethical scruple. And in the
+clarion&#8217;s blast which suddenly resounded on
+the pacific air they recognized the trump of
+doom for Teuton Kultur or European civilization,
+and proclaimed the utter inadequacy of
+ordinary methods to put down this titanic
+rebellion against the human race. That has
+been the gist of every opinion and suggestion
+on the subject put forward by the writer of
+these lines since the outbreak of the war.</p>
+
+<p>But even without these repeated warnings
+it should have been clear that a carefully calculating
+people like the Germans, in whom the
+gift of organizing is inborn and solicitude for
+detail is a passion, would not embark on a
+preventive war without having first established
+a just proportion between their own equipment<span class='pagenum'><a name="Page_9" id="Page_9">[9]</a></span>
+for the struggle and the magnitude of the
+issues dependent on its outcome. It was,
+further, reasonable to assume that this was
+no mere onset of army against army and
+navy against navy according to the old rules
+of the game, but a mobilization by the two
+military empires of all their resources&mdash;military,
+naval, financial, economic, industrial,
+scientific and journalistic&mdash;to be utilized to
+the fullest for the destruction of the Entente
+group. It was also easy to discern that,
+whichever side was worsted, the Europe which
+had witnessed the beginning of the conflict
+would be transfigured at its close, and that
+Germany would, therefore, not allow her
+freedom of action in conducting the war to
+be cramped by sentimental respect for the
+checks and restraints of a political system that
+was already dead. Lastly, it might readily
+be inferred that the huge resources hoarded
+up by the enemy during forty years of preparation
+would be centupled in value by the
+favourable conditions which rendered them
+capable of being co-ordinated and directed by
+a single will to the attainment of a single end.
+All these previsions, warranted then by unmistakable
+tokens, have since been justified
+by historic events, and it is to be hoped that
+the practical conclusions to which they point
+may sink into the minds of the allied nations
+as well as of their Governments, now that
+nearly two years have gone by since they
+were first expressed.</p>
+
+<p>The earliest impression which German mobilization
+left upon the Allies was that of the
+preventive character of this war. For it could
+have had no other mainspring than a resolve to
+paralyse the arm of the Entente, which, if<span class='pagenum'><a name="Page_10" id="Page_10">[10]</a></span>
+allowed to wax stronger, might smite in lieu of
+being smitten. For the moment, however,
+Germany was neither attacked nor menaced.
+Far from that, her rivals were vying with each
+other in their strivings to maintain peace. Her
+condition was prosperous, her industries thriving,
+her colonial possessions had recently been
+greatly increased, her influence on the affairs of
+the world was unquestioned, her citizens were
+materially well-to-do, her workmen were highly
+paid, her capitalists, seconding her statesmen
+and diplomatists, had, with gold extracted
+from France, Britain and Belgium, woven a
+vast net in the fine meshes of which most of
+the nations of Europe, Asia and America were
+being insensibly trammelled. Already her
+bankers handled the finances, regulated the
+industries and influenced the politics of those
+tributary peoples. And by these tactics a
+relationship was established between Germany
+and most states of the globe which cut deep
+into the destinies of these and is become an
+abiding factor of the present contest. For
+that reason, and also because of the paramount
+influence of the economic factor on the
+results of the struggle, they are well worth
+studying.</p>
+
+<p>To her superior breadth of outlook, marvellous
+organizing powers, the hearty co-operation
+between rulers and people, and the
+ease with which, unhampered by parliamentary
+opposition, her Government was enabled to
+place a single aim at the head and front of
+its national policy, Germany is perhaps more
+deeply indebted for her successes during the
+first phases of the campaign than to the strategy
+of Hindenburg or the furious onslaughts of
+Mackensen. German diplomacy has been ridiculed<span class='pagenum'><a name="Page_11" id="Page_11">[11]</a></span>
+for its glaring blunders, and German
+statesmanship discredited for its cynical contempt
+of others&#8217; rights and its own moral obligations.
+And gauged by our ethical standards
+the blame incurred was richly deserved. But
+we are apt to forget that German diplomacy
+has two distinct aspects&mdash;the professional
+and the economic&mdash;and that where the one
+failed the other triumphed. And if success
+be nine-tenths of justification, as the Prussian
+doctrine teaches, the statesmen who preside
+over the destinies of the Teutonic peoples have
+little to fear in the way of strictures from
+their domestic critics. For they left nothing
+to chance that could be ensured by effort.
+Trade, commerce, finances, journalism, science,
+religion, the advantages to be had by royal
+marriages, by the elevation of German princes
+to the thrones of the lesser states, had all been
+calculated with as much care and precision
+as the choice of sites in foreign countries for
+the erection of concrete emplacements for
+their monster guns. No detail seemed too
+trivial for the bestowal of conscientious labour,
+if it promised a possible return. When in
+doubt whether it was worth while to make an
+effort for some object of no immediate interest
+to the Fatherland the German invariably decided
+that the thing should be done. &#8220;You
+never can tell,&#8221; he argued, &#8220;when or how it
+may prove useful.&#8221; For years one firm of
+motor-car makers turned out vehicles with
+holes, the object of which no one could guess
+until the needs of the war revealed them as
+receptacles for light machine-guns.</p>
+
+<p>Nearly two years of an unparalleled struggle
+between certain isolated forces of the Allies
+and all the combined resources of the Teutons<span class='pagenum'><a name="Page_12" id="Page_12">[12]</a></span>
+ought to banish the notion that the results
+achieved are the fruits only of Germany&#8217;s
+military and naval efficiency. In truth, the
+adequacy of her military and naval forces constitutes
+but an integral part of a much vaster
+system. It has hitherto been the fashion
+among British and French writers to dwell
+exclusively on the comprehensiveness of the
+measures adopted by the Germans to fashion
+their land and sea defences into destructive
+implements of enormous striking power and
+scientific precision. But the German conception
+of the enterprise was immeasurably more
+grandiose. It included every means of offence
+and defence actually available or yet to be
+devised, and testifies to a grasp of the nature
+of the problem which, so far as one can judge,
+has not even yet been attained outside the
+Fatherland. As the present situation and its
+coming developments present themselves as
+practical corollaries of causes which the leaders
+of Germany rendered operative, it may not
+be amiss to describe these briefly.</p>
+
+<p>The objective being the subjugation of
+Europe to Teutonic sway, the execution of
+the plan was attempted by two different sets
+of measures, each of which supplemented the
+other: military and naval efficiency on the
+one hand and pacific interpenetration on
+the other. The former has been often and
+adequately described; the latter has not yet
+attracted the degree of attention it merits.
+For one thing, it was unostentatious and
+invariably tinged with the colour of legitimate
+trade and industry. Practically every country
+in Europe, and many lands beyond the seas,
+were covered with networks of economic relations
+which, without being always emanations<span class='pagenum'><a name="Page_13" id="Page_13">[13]</a></span>
+of the governmental brain, were never devoid
+of a definite political purpose. While Great
+Britain, and in a lesser degree France, distracted
+by parliamentary strife or intent on
+domestic reforms, left trade and commerce
+to private initiative and the law of supply
+and demand, the German Government watched
+over all big commercial transactions, interwove
+them with political interests, and regarded
+every mark invested in a foreign country
+not merely as capital bringing in interest in
+the ordinary way, but also as political seed
+bearing fruit to be ingathered when <i>Der
+Tag</i> should dawn. Thus France and Britain
+advanced loans to various countries&mdash;to
+Greece, for instance&mdash;at lower rates of interest
+than the credit of those states warranted,
+but they bargained for no political gain in
+return. Germany, on the contrary, insisted on
+every such transaction being paid in political
+or economic advantages as well as pecuniary
+returns. And by these means she tied the
+hands of most European nations with bonds
+twisted of strands which they themselves were
+foolish enough to supply. Italy, Russia,
+Turkey, Roumania, Bulgaria, Greece, Belgium
+and the Scandinavian States are all instructive
+instances of this plan. Bankers and
+their staffs, directors of works and factories,
+agents of shipping companies, commercial
+travellers, German colonies in various foreign
+cities, military instructors to foreign armies,
+schools and schoolmasters abroad, heads of
+commercial houses in the different capitals,
+were all so many agencies toiling ceaselessly
+for the same purpose. The effect of their
+man&#339;uvres was to extract from all those
+countries the wealth needed for their subjugation.<span class='pagenum'><a name="Page_14" id="Page_14">[14]</a></span>
+One of the most astounding instances
+of the success of these hardy manipulations is
+afforded by the Banca Commerciale of Italy,
+which was a thoroughly German concern,
+holding in its hands most of the financial
+establishments, trades and industries of Italy.
+This all-powerful institution possessed in 1914
+a capital of &pound;6,240,000 of which 63 per cent.
+was subscribed by Italian shareholders, 20 per
+cent. by Swiss, 14 per cent. by French, and
+only 2&frac12; per cent. by Germans and Austrians
+combined! And the astounding exertions put
+forward by the Germans during the first
+twelvemonth of the war are largely the product
+of the economic energies which this line
+of action enabled them to store up during the
+years of peace and preparation.</p>
+
+<p>The execution of those grandiose schemes
+was facilitated by the easy access which Germany
+had to the principal markets of the globe.
+One of the main objects of her diplomacy had
+been to break down the tariff barriers which
+would have reserved to the great trading
+empires the main fruits of their own labour and
+enterprise. By the Treaty of Frankfort the
+French had been compelled to confer on Germany
+the most-favoured-nation clause, thus
+entitling her to enjoy all the tariff reductions
+which the Republic might accord to those
+countries with which it was on the most amicable
+terms. British free trade opened wide
+the portals of the world&#8217;s greatest empire to a
+deluge of Teuton wares and to a kind of competition
+which contrasted with fair play in a
+degree similar to that which now obtains between
+German methods of warfare and our
+own. Russia, at first insensible to suasion and
+rebellious to threats, endeavoured to bar the<span class='pagenum'><a name="Page_15" id="Page_15">[15]</a></span>
+way to the economic flood on her western frontiers,
+but during the stress of the Japanese
+war she chose the lesser of two evils and
+yielded. The concessions then made by my
+friend, the late Count Witte, to the German
+Chancellor, drained the Tsardom of enormous
+sums of money and rendered it a tributary to
+the Teuton. But it did much more. It supplied
+Germany with a satisfactory type of
+commercial treaty which she easily imposed
+upon other nations. Germany&#8217;s road through
+Italy was traced by the mistaken policy of the
+French Government which, by a systematic
+endeavour to depreciate Italian consols and
+other securities, drove Crispi to Berlin, where
+his suit for help was heard, the Banca Commerciale
+conceived, and commercial arrangements
+concluded which opened the door to
+the influx of German wares, men and political
+ideals.</p>
+
+<p>A few years sufficed for the fruits of this
+generous hospitality to reveal themselves. The
+influx of wealth and the increased population
+helped to render the German army a match for
+the combined land forces of her rivals, a formidable
+navy was created, which ranked immediately
+after that of Great Britain, and a
+large part of Europe was so closely associated
+with, and dependent on, Germany that an extension
+of the Zollverein was talked of in the
+Fatherland, and a league of European brotherhood
+advocated by the day-dreamers of France
+and Britain. The French, however, never
+ceased to chafe at the commercial chain forged
+by the Treaty of Frankfort, but were powerless
+to break it, while the British lavished tributes
+of praise and admiration on Germany&#8217;s enterprise,
+and construed it as a pledge of peace.<span class='pagenum'><a name="Page_16" id="Page_16">[16]</a></span>
+Russia, alive to the danger, at last summoned
+up courage to remove it, and had already decided
+to refuse to extend the term of the
+ruinous commercial treaty, even though the
+alternative were war. That was the danger
+which stimulated the final efforts of the
+Kaiser&#8217;s Government.</p>
+
+<p>Thus the entire political history of Entente
+diplomacy during this war may be summarized
+as a series of attempts on the part of the
+Allies to undo some of the effects of the masterstrokes
+executed by Germany during the years
+of abundance which she owed to the favoured-nation
+clause, British free trade and kindred
+economic concessions. Interpenetration is the
+term by which the process has been known ever
+since Count Witte essayed it in Manchuria and
+China.</p>
+
+<p>The German procedure was simple, yet effective
+withal. Funds were borrowed mainly in
+France, Britain, Belgium, where investors are
+often timid and bankers are unenterprising.
+And then operations were begun. The first
+aim pursued and attained was to acquire control
+of the foreign trade of the country experimented
+on. With this object in view banks
+of credit were established which lavished on
+German traders every help, information and
+encouragement. Men of Teuton nationality
+settled in the land as heads of firms, as clerks
+without salary, private secretaries, foremen,
+correspondents, and rapidly contrived to get
+command of the main arteries of the economic
+organism. German manufactures soon flooded
+the country, because those who undertook to
+import them could count on extensive credit
+from the institutions founded with the money
+of the very nations whose trade they were<span class='pagenum'><a name="Page_17" id="Page_17">[17]</a></span>
+engaged in killing. In this way the competition,
+not only of all Entente peoples but also
+of the natives of the country experimented
+on, was systematically choked. And the customers
+of these banks, natives as well as
+Teutons, became apostles of German influence.</p>
+
+<p>Insensibly the great industrial concerns of
+the place passed into the possession of German
+banks, behind which stood the German
+empire. A nucleus of influential business
+people, having been thus equipped for action,
+incessantly propagated the German political
+faith. German schools were established and
+subsidized by the <i>Deutscher Schulverein</i>, clubs
+opened, musical societies formed, and newspapers
+supported or founded, to consolidate
+the achievements of the financiers. On political
+circles, especially in constitutional lands, the
+influence of this Teutonic phalanx was profound
+and lasting.</p>
+
+<p>In all these commercial and industrial enterprises
+undertaken abroad for economic gain
+and political influence, the German State, its
+organs and the individual firms, went hand in
+hand, supplementing each other&#8217;s endeavours.
+The maxim they adopted was that of their
+military commanders: to advance separately
+but to attack in combination. Not only the
+Consul, but the Ambassador, the Minister,
+the Scholar, the Statesman, nay the Kaiser<a name="FNanchor_1_1" id="FNanchor_1_1"></a><a href="#Footnote_1_1" class="fnanchor">[1]</a>
+himself, were the inspirers, the partners, the
+backers of the German merchant. Marschall
+von Bieberstein once told me in Constantinople
+that his functions were those of a super-commercial
+traveller rather than ambassadorial.
+And he discharged them with efficiency. Laws
+<span class='pagenum'><a name="Page_18" id="Page_18">[18]</a></span>and railway tariffs at home, diplomatic facilities
+and valuable information abroad smoothed
+the way of the Teuton trader. Berlin rightly
+gauged the worth of this pacific interpenetration
+at a time when Britons were laughing it to
+scorn as a ludicrous freak of grandmotherly
+government. To-day its results stand out in
+relief as barriers to the progress of the Allies
+in the conduct of the war.</p>
+
+<p>Of this ingenious way of enslaving foreign
+nations unknown to themselves, Italy&#8217;s experience
+offers us an instructive illustration. The
+headquarters of the German commercial army
+in that realm were the offices of the Banca Commerciale
+in Milan. This institution was founded
+under the auspices of the Berlin Foreign Office,
+with the co-operation of Herr Schwabach,
+head of the bank of Bleichr&ouml;der. Employing
+the absurdly small capital of two hundred
+thousand pounds, not all of which was German,
+it worked its way at the cost of the Italian
+people into the vitals of the nation, and finally
+succeeded in obtaining the supreme direction
+of their foreign trade, national industries and
+finances, and in usurping a degree of political
+influence so durable that even the war is
+supposed to have only numbed it for a time.</p>
+
+<p>Between the years 1895 and 1915 the capital
+of this institution had augmented to the sum
+of &pound;6,240,000, of which Germany and Austria
+together held but 2&frac12; per cent., while controlling
+all the operations of the Bank itself
+and of the trades and industries linked with it.</p>
+
+<p>The Germans, as a Frenchman wittily remarked,
+are born with the mania of annexation.
+It runs in their blood. And it is not
+merely territory, or political influence, or the
+world&#8217;s markets that they seek to appropriate.<span class='pagenum'><a name="Page_19" id="Page_19">[19]</a></span>
+Their appetite extends to everything in the
+present and future, nay, even in the past
+which they deem worth having. It is thus
+that they claim as their own most of Italy&#8217;s
+great men, such as Dante, Giotto, Leonardo da
+Vinci, Botticelli, Galileo, and it is now asserted
+by a number of Teuton writers that Christ
+Himself came of a Teutonic stock.</p>
+
+<p>German organisms, as well as German statesmen,
+display the same mania of annexation,
+and the Banks in especial give it free scope.
+German banks differ from French, British and
+Italian in the nature, extent and audacity of
+their operations. It was not always thus.
+Down to the war of 1870 their methods were
+old-fashioned, cautious and slow. From the
+year 1872 onward, however, they struck out
+a new and bold course of their own from which
+British and French experts boded speedy
+disaster. Private enterprises were turned into
+joint stock companies, the capital of prosperous
+undertakings was increased and gigantic
+operations were inaugurated. Between the
+years 1885 and 1889 the industrial values
+issued each year reached an average of 1,770
+million francs; between 1890 and 1895 the
+average rose to 1,880 millions, and from 1896
+to 1900 it was computed at 2,384 millions.<a name="FNanchor_2_2" id="FNanchor_2_2"></a><a href="#Footnote_2_2" class="fnanchor">[2]</a></p>
+
+<p>Of all German financial institutions the
+most influential and prosperous is the Deutsche
+Bank. It has been aptly termed an
+empire within the empire. Its capital, 250
+million francs, exceeds that of the Reichsbank
+by thirty millions. It is the first of the six
+great German banks, of which four are known
+as the &#8220;D&#8221; group, because the first letter of
+<span class='pagenum'><a name="Page_20" id="Page_20">[20]</a></span>their respective names is D: Deutsche Bank,
+Dresdner Bank, Disconto-Gesellschaft and
+Darmst&auml;dter Bank. The other two are the
+Schaffhausenscher Bankverein and the Berliner
+Handelsgesellschaft. The total capital of these
+six concerns amounts to 1,100 million francs.<a name="FNanchor_3_3" id="FNanchor_3_3"></a><a href="#Footnote_3_3" class="fnanchor">[3]</a></p>
+
+<p>None of these houses is hampered by those
+rules, traditions or scruples which limit the
+activity of British joint stock banks. They
+are free to launch into speculations which, to
+the sober judgment of our own financiers,
+must seem wild and precarious, but to which
+success has affixed the hall-mark of approval.
+Each of the six banks is a centre of German
+home industries and also of the foreign transformations
+of these. To mention an industry
+is almost always to connote some one of the
+six. Before the war broke out one had but
+to gaze steadily at the beautiful facade of this
+or that Russian bank to discern the Lamia-like
+monster from the banks of the Spree.
+The famous firm of Krupps, for instance, had
+its affairs closely interwoven with those of
+the Berliner Disconto Gesellschaft, and was
+more than once rescued from bankruptcy by its
+timely assistance. Similar help was afforded
+to the celebrated firm of Bauer which is known
+throughout the world for its synthetical
+medicines. There were critical moments in
+its existence when it was confronted with
+ruin. The Bank extricated the firm from
+its difficulties, and the present dividend of
+33 per cent. has justified its enterprise.</p>
+
+<p>In this way the latter-day German banks
+upset all financial traditions, opened large
+credits to industries, smoothed the way for
+the spread of German commerce, killed foreign
+<span class='pagenum'><a name="Page_21" id="Page_21">[21]</a></span>competition and seconded the national policy
+of their Government. As an instance of the
+push and audacity of these modernized institutions,
+a master stroke of the Bank of Behrens
+and Sons of Hamburg may be mentioned: it
+bought up the entire coffee crop of Guatemala
+one year to the amazement of its rivals and
+netted a very large profit by the transaction.</p>
+
+<p>Now as commerce is international and industry
+depends for its greatest successes upon
+exportation, it was inevitable that the up-to-date
+German banks should seek fields of
+activity abroad and aim at playing a commanding
+part in the world&#8217;s commerce. And
+they tried and succeeded. For they alone
+instinctively divined the new spirit of the
+age, which may be termed co-operative and
+agglutinative. It was in virtue of this new
+idea that groups of States were leagued together
+by Germany in view of her projected
+war, and it is the same principle that impels
+her, before the conflict has yet been decided,
+to weld to herself as many tributary peoples as
+she may to assist her in the economic struggle
+which will be ushered in by peace. Germans
+first semiconsciously felt and now deliberately
+hold that in all departments of modern life,
+social, economic and political, our conception
+of quantities must undergo a radical change.
+The scale must be greatly enlarged. The unit
+of former times must give place to a group of
+units, to syndicates and trusts in commerce
+and industry, to trade unions in the labour
+world, to Customs-federations in international
+life. That this shifting of quantities is a
+correlate of the progress achieved in technical
+science and in means of communication, and
+also of the vastness of armies and navies and<span class='pagenum'><a name="Page_22" id="Page_22">[22]</a></span>
+of the aims of the world&#8217;s foremost peoples,
+is since then become a truism, realized not
+only by the Germans but by all their allies.</p>
+
+<p>For individual enterprise, as well as for
+national isolation, there is no room in the
+modern world. Isolation spells weakness and
+helplessness there. The lesser neutral States
+must of necessity become the clients of the
+Great Powers and pay a high price for the
+protection afforded them. Hence the maintenance
+of small nations on their present basis,
+with enormous colonies to exploit but without
+efficient means of defending them, forms no
+part of Germany&#8217;s future programme. And
+the altruistic professions of the Entente which
+claims to be fighting for the rights of little
+States, whose idyllic existence it would fain
+perpetuate, is scoffed at by the Teutons as
+chimerical or hypocritical. When this war is
+over, whatever its upshot, Central Europe with
+or without the non-German elements will have
+become a single unit, against whose combined
+industrial, commercial and military strivings no
+one European Power can successfully compete.
+And the difficulties which geographical situation
+has raised against effective co-operation
+among the Allies in war time will make themselves
+felt with increased force during the
+economic struggle which will then begin.</p>
+
+<p>No mere tariff arrangement, but only a
+genuine league between all the west European
+Powers and the British Empire, supplemented
+by a customs union between them and the
+other Allies of the Entente, will then avail
+to ward off the new danger and establish some
+rough approach to the equilibrium which the
+present conflict has overthrown. The future
+destinies of Europe, as far as one may conjecture<span class='pagenum'><a name="Page_23" id="Page_23">[23]</a></span>
+from the data available to-day, will
+depend largely on the insight of the Entente
+nations and their readiness to subordinate
+national aims and interests to those of the
+larger unit which will be the inevitable product
+of the new order of things.</p>
+
+<p>The ideal type of the industrial bank having
+been thus wrought out, the Germans, whom a
+thoroughly commercial education had qualified
+for the work, carried on vast operations with
+a degree of boldness which was matched only
+by the thoroughness of their precautions.
+They advanced money with a readiness and
+an open-handedness which the West European
+financier set down as sheer folly, but which
+was the outcome of close study and careful
+deliberation. They began by acquainting
+themselves with the solvency of their clients,
+with the nature of the transactions which these
+were carrying on, with their business methods
+and individual abilities, and to the results of
+this preliminary examination they adjusted
+the extent of their financial assistance. They
+had secret inquiry offices to keep them constantly
+informed of the condition of the
+various firms and individuals, and when in
+doubt they demanded an insight into the
+books of the company which was seldom
+denied them. The Spanish Inquisition was
+but a clumsy agency in comparison with the
+perfect system evolved by these German banks,
+which could at any given moment sum up the
+prospects as well as the actual situation of
+each of their customers. It was this comprehensive
+survey which warranted some of the
+large advances they made to seemingly insolvent
+firms which afterwards grew to be the
+most prosperous in the Fatherland.<span class='pagenum'><a name="Page_24" id="Page_24">[24]</a></span></p>
+
+<p>The methods thus practised at home were
+adhered to in all those foreign countries which
+the German financier, manufacturer or trader
+selected for his field of operations. A bank
+would be opened in the foreign capital with
+money advanced mainly by one of the six
+great financial institutions. It would be called
+by some high-sounding name, suggestive of
+the country experimented upon, and little
+by little the German capital would be diminished
+to a minimum and local capital substituted,
+but the supreme control kept zealously
+in the hands of the Teuton directors. Industries
+would then be financed and finally
+bought up. Others would also be financed
+but deliberately ruined. Competition would
+in this way be effectively killed, and little by
+little the life-juices of the country would be
+canalized to suit the requirements of German
+trade, industry and politics.</p>
+
+<p>If an industry in the invaded country was
+judged capable of becoming subsidiary to some
+German industry, the Bank would maintain it
+for the purpose of amalgamating the two later
+on, or else having the foreign concern absorbed
+by the Teutonic. This was a labour of patriotism
+and profit. But if the business was
+recognized as a formidable rival to some
+German enterprise, it was doomed. The procedure
+in this case was simple. The Bank
+advanced money readily, tied the firm financially,
+rendering it wholly tributary; and then
+when the hour of destiny struck, the credit
+was suddenly withdrawn and the curtain rung
+up in the Bankruptcy Court. When this consummation
+became public, the unsuspecting
+foreigner would ask with na&iuml;ve astonishment:
+&#8220;How can it be bankrupt? I understood that<span class='pagenum'><a name="Page_25" id="Page_25">[25]</a></span>
+Germans were financing it.&#8221; They were, and
+it was precisely for that reason, and because it
+was on the way to prosperity as a rival to some
+German firm, that it was suffocated.<a name="FNanchor_4_4" id="FNanchor_4_4"></a><a href="#Footnote_4_4" class="fnanchor">[4]</a></p>
+
+<p>This ingenious system proved exceptionally
+effective in Brazil. It has been said that that
+republic is become a dependency of Germany.
+What cannot be gainsaid is that about one-third
+of Brazil&#8217;s national debt<a name="FNanchor_5_5" id="FNanchor_5_5"></a><a href="#Footnote_5_5" class="fnanchor">[5]</a> is owing to
+German bankers, and the whole financial and industrial
+movement of the country is swayed by
+the Society of Colonization which is German,
+by the German Society for Mutual Protection,
+by the German-Brazilian Society and by the
+three Navigation Companies whose steamers
+ply between Brazil and the Fatherland.<a name="FNanchor_6_6" id="FNanchor_6_6"></a><a href="#Footnote_6_6" class="fnanchor">[6]</a> It
+is because of the far-reaching power and influence
+which has accrued to Germany from
+this successful invasion that Professor Schmoller
+of the Berlin University could write: &#8220;It
+behoves us to desire at any and every cost
+that, by the next century, a German land of
+twenty or thirty million inhabitants shall
+arise in Southern Brazil. It is immaterial
+whether it remains part of Brazil or constitutes
+an independent State or enters into close
+relations with the German Empire. But without
+a connection guaranteed by battleships,
+without the possibility of Germany&#8217;s armed
+intervention in Brazil, its future would be
+jeopardized.&#8221;</p>
+
+<p>It is the Monroe doctrine that is commonly
+credited with thwarting these designs on South
+America. But as a matter of plain fact, it is
+to the British Navy and to nothing else that
+the credit is due. Were it not for the known
+<span class='pagenum'><a name="Page_26" id="Page_26">[26]</a></span>resolve of the British nation to co-operate in
+case of need with the American people in their
+exertions to uphold that doctrine against Germany,
+the Berlin Cabinet would long ago have
+formally established a firm footing in Southern
+Brazil and the United States Government would
+have been powerless to prevent it.<a name="FNanchor_7_7" id="FNanchor_7_7"></a><a href="#Footnote_7_7" class="fnanchor">[7]</a></p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_1_1" id="Footnote_1_1"></a><a href="#FNanchor_1_1"><span class="label">[1]</span></a> The Kaiser is one of the largest shareholders in the
+great mercury mines of Italy.</p></div>
+
+<div class="footnote"><p><a name="Footnote_2_2" id="Footnote_2_2"></a><a href="#FNanchor_2_2"><span class="label">[2]</span></a> Cf. <i>L&#8217;Invasione tedesca in Italia</i>. Ezio M. Gray.
+Firenze.</p></div>
+
+<div class="footnote"><p><a name="Footnote_3_3" id="Footnote_3_3"></a><a href="#FNanchor_3_3"><span class="label">[3]</span></a> <i>Op. cit.</i>, p. 113.</p></div>
+
+<div class="footnote"><p><a name="Footnote_4_4" id="Footnote_4_4"></a><a href="#FNanchor_4_4"><span class="label">[4]</span></a> Cf. <i>L&#8217;Invasione tedesca in Italia</i>, pp. 118, 119.</p></div>
+
+<div class="footnote"><p><a name="Footnote_5_5" id="Footnote_5_5"></a><a href="#FNanchor_5_5"><span class="label">[5]</span></a> 1050 million francs.</p></div>
+
+<div class="footnote"><p><a name="Footnote_6_6" id="Footnote_6_6"></a><a href="#FNanchor_6_6"><span class="label">[6]</span></a> <i>Op. cit.</i>, p. 120.</p></div>
+
+<div class="footnote"><p><a name="Footnote_7_7" id="Footnote_7_7"></a><a href="#FNanchor_7_7"><span class="label">[7]</span></a> An instructive article on the subject by Mr. Moreton
+Frewen appeared in the <i>Nineteenth Century</i> of February,
+1916.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_III" id="CHAPTER_III"></a>CHAPTER III<span class='pagenum'><a name="Page_27" id="Page_27">[27]</a></span></h2>
+
+<h3>GERMANY AND ITALIAN FINANCE</h3>
+
+
+<p><span class="smcap">It</span> was in congruity with those principles
+and methods that the Banca Commerciale,
+which had its headquarters in Milan, set itself
+to discharge the complex functions of a financial,
+industrial, commercial and political agency
+of German interpenetration in Italy.</p>
+
+<p>To German customers and those Italians
+who imported German goods, the Banca Commerciale
+allowed long credits and easy means
+of payment. To all who were in need of implements,
+machinery, or materials for a new
+enterprise, the bank &#8220;recommended&#8221; German
+houses, and those who were wise construed the
+&#8220;recommendation&#8221; as an ultimatum. For if
+it was ignored, their names were inscribed on
+the black books of the bank, and by means
+of an efficacious system of secret dossiers,
+handled by a confidential information bureau,<a name="FNanchor_8_8" id="FNanchor_8_8"></a><a href="#Footnote_8_8" class="fnanchor">[8]</a>
+they found themselves thrust into a &#8220;credit
+vacuum,&#8221; boycotted by finance and condemned
+to bankruptcy. All banks shunned them.
+<span class='pagenum'><a name="Page_28" id="Page_28">[28]</a></span>Their bonds became mere scraps of paper.
+Every enterprise to which they set their hands
+was blighted, and nothing remained for them
+but to abandon their avocations or surrender
+at discretion.</p>
+
+<p>But besides this executive of destruction
+there was another and still more important
+board, whose work was wholly constructive.
+It was commonly known as the &#8220;service of
+information.&#8221; Its functions were to collect at
+first hand all useful data about Italian commerce
+and industry, to draw up tabulated
+reports for the use of Germans at home
+engaged in trade and industry. These lists
+indicated current prices, the qualities of the
+goods in demand, the favourite ways of packing
+and consigning these, samples of manufactures,
+statistics of production, the addresses of
+all firms dealing with Italians&mdash;in a word, every
+kind of data calculated to enable German trade
+and industry to compete successfully with
+their rivals. The manner in which this body
+of information was drawn up, sifted, classified,
+and made accessible, deserves unstinted admiration.
+To say that commercial espionage
+was practised largely in the working of this
+comprehensive system is but another way of
+stating that it was German.</p>
+
+<p>The Banca Commerciale, which was the
+head and centre of this organization, was, as
+a matter of course, called Italian. For every
+similar institution, commercial, journalistic or
+other, which has for its object the realization
+of the Teutonic plan of internationalization,
+invariably wears the mask of the nationality
+of the country in which it operates. And in
+this case the mask was supplied by Italians,
+on whom the bank bestowed all the highest<span class='pagenum'><a name="Page_29" id="Page_29">[29]</a></span>
+<i>honorary</i> posts, while reserving the influential
+ones for Germans and Austrians. Thus the
+moving spirits of this vast organization were
+Herrn Joel, Weil and Toeplitz, men of uncommon
+business capacity, who devoted all their
+time and energies to the attainment of the
+end in view. And their zeal, industry and ingenuity
+were rewarded by substantial results,
+which have left an abiding mark on Italian
+politics and entered for a great deal into the
+attitude of the nation towards the two groups
+of belligerents. In a relatively short span of
+time foreign competition in Italian markets was
+checked, German products ousted those of their
+rivals, and at last the very sources of Italy&#8217;s
+economic life were in the hands of the Teuton,
+whose continued goodwill became almost a
+vital necessity to the struggling nation.</p>
+
+<p>Already in the year 1912 Germany stood
+first among Italy&#8217;s customers, whether we consider
+the list of her exports or that of imports.
+Italy bought from that empire goods valued
+at 626,300,000 francs, and sold it produce worth
+328,200,000 francs; whereas Great Britain,
+who supplies Italy with the bulk of her coal,
+exported only 577,100,000 francs worth, while
+her imports were valued at 264,400,000 francs.
+For France the figures were 289,600,000 and
+222,600,000 francs respectively.</p>
+
+<p>The method by which Italian industries were
+assailed, shaken, and then purchased and controlled
+by this redoubtable organization, bore,
+as we saw, all the marks of German commercial
+ethics. Sharp practice which recognizes as its
+only limitation the strong arm of the penal
+law, is a fair description of the plan of campaign.
+Against this insidious process none of the
+native enterprises had the strength to offer<span class='pagenum'><a name="Page_30" id="Page_30">[30]</a></span>
+effective resistance. One by one they were
+drawn into the vast net woven by the three
+German Fates&mdash;Joel, Weil and Toeplitz. The
+various iron, mechanical and shipbuilding
+works, which represented the germs from which
+native industries were to grow, were sucked
+into the Teuton maelstrom. The larger and
+the smaller steamship navigation companies
+likewise fell under the direction of the Banca
+Commerciale, which permitted some of them
+to exist and even to thrive up to a certain
+point, beyond which their usefulness to the
+general plan would have turned to harm. In
+this way Italy&#8217;s entire mercantile marine became
+one of the numerous levers in the hands
+of the interpenetrating German. And the importance
+of this lever for political purposes
+can neither be gainsaid nor easily overstated.</p>
+
+<p>In every little town and village which sends a
+quota of emigrants to the transatlantic liners,
+agents of the various steamship companies
+are always about and active. Being intelligent
+and enterprising, their influence on local
+politics is irresistible, and it was uniformly
+employed in those interests which it was the
+object of the Banca Commerciale to further.
+&#8220;This institution,&#8221; writes an Italian expert,
+who has studied the subject with unusual care,
+&#8220;being the mistress of the dominant economic
+organisms of the nation, makes use of them to
+carry out a germanophile policy. It employs
+them for the purpose of exercising a directive
+action in all elections, commercial, provincial
+and general. Every servant of a steamship
+navigation company, every purveyor of emigrants
+is at the same time and by the very force
+of things an electoral agent. The position of
+arbitress and mistress of the steamship companies<span class='pagenum'><a name="Page_31" id="Page_31">[31]</a></span>
+carries with it possession of the keys
+of the national wealth, and is consequently a
+formidable weapon of aggressive competition
+against all industries, Italian and foreign, which
+are not affiliated to those of Germany. The
+Banca Commerciale, having obtained that supremacy,
+forced the Italian companies to lead
+a languishing existence in straitened circumstances,
+whereas they might easily have grown
+rich and flourishing. It permits our steamship
+companies to subsist and even to earn somewhat,
+but only just enough to suffice for the
+declaration of a modest dividend. That is why
+Italian navigation companies levy such excessive
+rates of freight, why their service is not
+organized in accordance with rational and latter
+day standards, why they take no thought of
+winning foreign markets or of national expansion.<a name="FNanchor_9_9" id="FNanchor_9_9"></a><a href="#Footnote_9_9" class="fnanchor">[9]</a>
+They have no means of consigning
+merchandise at the domicile, so that the consignees
+are put to enormous expense for collection
+and delivery. And to make matters
+still worse, Italian navigation companies are
+bound with those of Germany by special secret
+conventions, which oblige them to abandon to
+their rivals certain kinds of merchandise of the
+Near and the Far East.&#8221;</p>
+
+<p>If we examine the peculiarly Teuton ways
+of trade competition in their everyday guise,
+and without the glamour of political ideals
+to distract our attention, we are confronted
+with phenomena of a repulsive character. For
+the German&#8217;s keen practical sense, his sustained
+concentration of effort on the furtherance
+of material interests, and his scorn of
+ethical restraints render him a formidable
+<span class='pagenum'><a name="Page_32" id="Page_32">[32]</a></span>competitor in pacific pursuits and a dangerous
+enemy in war. His moral sense is not so much
+dulled by experience as warped by education.
+It may be likened to a clock which has not
+stopped but shows the wrong hour. He has
+been taught that there are times and circumstances
+when religious and ethical standards
+may or must be set aside, and he arrogates to
+himself the right of determining them. Without
+examining into stories of preternatural
+meanness and perfidy which have come into
+vogue since the outbreak of the war, it is fair
+to say that dirty tricks, destructive of all
+social intercourse, formed part of the German
+commercial procedure in France, Britain and
+Russia, the only proviso being that they were not
+penalized by the criminal law of the country.</p>
+
+<p>An amusing but nowise edifying instance
+turns upon Paris fashions. That Berlin, like
+Vienna, should seek to vie with Paris in setting
+the fashion of feminine finery to the world is
+conceivable and legitimate. But that Germans
+should compete with Paris in Paris fashions
+connotes a psychological frame of mind which
+is better understood by the inmates of a prison
+than by a mercantile community. American
+ladies visiting the French capital to order their
+gowns are astonished to note that no fashions
+really new have been shown to them in the great
+Paris houses. They had just seen them all in
+the German capital. And the Paris models
+destined to be placed on the market next season
+turn out to be identical with those which the
+fair visitors had already inspected in Berlin
+and could have purchased there at a much
+lower price. How this could be is explained
+simply. A German merchant in continuous
+relations with the staffs of the Paris firms<span class='pagenum'><a name="Page_33" id="Page_33">[33]</a></span>
+clandestinely obtains from some of the members
+for a high price the models which are still
+being kept secret, has them copied in large
+numbers in Berlin and sold at a cheap price.
+True, the German workmanship lacks the
+dainty finish of the Paris article, but the
+difference is such as appeals only to the eye
+of a connoisseur.</p>
+
+<p>In Italy similar phenomena were observed
+frequently. A firm in Florence celebrated
+for special types of wooden utensils which
+were never successfully imitated elsewhere
+was ruined by commercial espionage. One
+day the proprietor engaged the services of
+two foreign workmen who laboured hard and
+steadily for some time and then departed, to
+his great regret. Six months later Germany
+dumped on the Italian markets the very same
+articles in vast quantities, and at a price so
+low that the Italian firm could not hope to
+compete with them. At first, indeed, the
+Florence house made a valiant stand against
+the invasion, but had finally to give up the
+fight as hopeless. Later on the proprietor
+learned that the two honest-looking workmen
+were first-class German engineers, whose only
+objects in entering his service were to acquaint
+themselves with his methods, copy his models
+and then strangle his trade. And these objects
+they achieved to their satisfaction.<a name="FNanchor_10_10" id="FNanchor_10_10"></a><a href="#Footnote_10_10" class="fnanchor">[10]</a></p>
+
+<p>Thus, in order to strangle concerns that
+compete with them successfully, the average
+German merchant sticks at nothing. His
+maxim is, that in trade as in all forms of the
+struggle for existence, necessity knows no law.
+And he is himself the judge of necessity. The
+history of German industry in Italy is full of
+<span class='pagenum'><a name="Page_34" id="Page_34">[34]</a></span>instructive examples of this disdain of moral
+checks, but one will suffice as a type. It
+turns upon the struggle which the Teuton invaders
+carried on against the Italian iron
+industry, which for a while held its own
+against all fair competition. In their own
+country, the German manufacturers sold
+girders at &pound;6 10<i>s.</i> the ton. The profits made
+at this price enabled them to offer the same
+articles in Switzerland for &pound;6, in Great Britain
+for &pound;5 3<i>s.</i> and in Italy for &pound;3 15<i>s.</i> Now, as
+the cost of production in Germany fluctuated
+between &pound;4 5<i>s.</i> and &pound;4 15<i>s.</i> per ton, it is evident
+that the dead loss incurred by the German
+manufacturers on Italian sales varied between
+10<i>s.</i> and &pound;1 per ton. But this sacrifice was
+offered up cheerfully because its object was
+the destruction of the growing iron industry of
+Northern Italy and the clearing of the ground
+for a German monopoly.<a name="FNanchor_11_11" id="FNanchor_11_11"></a><a href="#Footnote_11_11" class="fnanchor">[11]</a> The spirit that
+animates the Teuton producer, in his capacity
+as rival, was clearly embodied by one of the
+principal manufacturers of aniline dyes in
+Frankfort, who remarked to an Italian business
+man: &#8220;I am ready to sell at a dead loss for
+ten years running rather than lose the Italian
+market, and if it were necessary I would give
+up for the purpose all the profits I have made
+during the past ten years.&#8221;<a name="FNanchor_12_12" id="FNanchor_12_12"></a><a href="#Footnote_12_12" class="fnanchor">[12]</a> To contend with
+any hope of success against men of this stamp,
+one should be imbued with qualities resembling
+their own. And of such a commercial equipment
+the business community of Great Britain
+have as yet shown no tokens.</p>
+
+<p>In Italy the Banca Commerciale was wont
+to send to every firm, whether it had or had
+<span class='pagenum'><a name="Page_35" id="Page_35">[35]</a></span>not dealings with it, a tabulated list of questions
+to be answered in writing. The ostensible
+object was to obtain trustworthy materials
+to serve for the Annual Review of the economic
+movement in the country published every
+year by the Bank. In reality the ends achieved
+were far more important, as we may infer from
+the use to which all such information in France
+was put. There the well-known agency of
+Schimmelpfeng, which was in receipt of a
+subvention from the German Chamber of
+Commerce, was a centre of secret information
+respecting the solvency, the prospects, the
+debts and assets of every firm in France, and
+its tabulated information about French commerce
+and industry, together with all the
+knowledge that had been secretly gleaned,
+was duly sent to Berlin.</p>
+
+<p>Russians complain somewhat tardily of the
+prevalence of the same system among themselves.
+&#8220;Every day,&#8221; writes the <i>Novoye
+Vremya</i>, &#8220;fresh details are leaking out respecting
+a certain German firm, ideal in its resourcefulness,
+which succeeded in spreading a vast
+net over all Russia. It has been satisfactorily
+established that Germans occupied many responsible
+posts in the organization, and that
+these<a name="FNanchor_13_13" id="FNanchor_13_13"></a><a href="#Footnote_13_13" class="fnanchor">[13]</a> officials were subjects of the German
+Empire. At the head of the entire business
+in Russia down to a recent date was also a
+German subject.&#8221; The kind of information
+gathered by the agents of the company, &#8220;for
+business purposes,&#8221; is clear from a circular
+issued by the firm just a fortnight before the
+outbreak of the war.</p>
+<p><span class='pagenum'><a name="Page_36" id="Page_36">[36]</a></span></p>
+
+<h4>THE FIRM OF XYZ</h4>
+
+<p class="right"><span style="padding-right: 5.5em">&#8220;Tula,</span><br />
+
+&#8220;5/18 July, 1914.</p>
+
+<p class="right">&#8220;<i>District Card for the Collectors of the Circuit.</i></p>
+
+<p class="right">&#8220;<span style="padding-right: 1em"><i>Form N 246.</i></span></p>
+
+<p>&#8220;We have forwarded you to-day a number of
+cards of the printed form N&nbsp;246, which you are
+requested to have filled in at once and placed
+at the head of form 490 of the corresponding
+district. We draw your attention herewith
+to the necessity of enumerating on the first
+table of form N 246 all the villages and other
+places of the circuit of each district collector,
+whether or no they contain debtors of ours,
+and of stating in the second table the number
+of inhabitants. The registration is to be done
+by the official charged with that part of the
+work: each circuit is to be entered separately
+and the villages and places it contains to be
+given in alphabetical order. These lists are
+to be verified every six months and fresh
+information set out respecting the growing
+number of our debtors. We request you to take
+this work in hand at once and without delay.</p>
+
+<p class="right">&#8220;<span class="smcap">The Control Department, Tula.</span>&#8221;</p>
+
+<p>When this circular was published in Moscow
+the general director of the firm wrote to certain
+provincial newspapers pointing out that the
+company is American, not German. &#8220;It is
+curious,&#8221; a Russian journal remarks, &#8220;that an
+American firm should need a map containing
+all the villages and hamlets of the districts,
+with the number of their inhabitants, irrespective
+of the presence there of the company&#8217;s
+debtors.&#8221;<a name="FNanchor_14_14" id="FNanchor_14_14"></a><a href="#Footnote_14_14" class="fnanchor">[14]</a></p>
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_8_8" id="Footnote_8_8"></a><a href="#FNanchor_8_8"><span class="label">[8]</span></a> This secret information bureau is everywhere a
+potent engine of attack in German hands. It renders
+deliberate libellers and defamers immune against the
+action of the law. The victims feel the effects but
+cannot point to the cause. The <i>fiches</i>, as the certificates
+are called, are couched in conventional terms and bear
+no signature. In the case of persons whom the bank
+desires to ruin, these documents are sentences of commercial
+death.</p></div>
+
+<div class="footnote"><p><a name="Footnote_9_9" id="Footnote_9_9"></a><a href="#FNanchor_9_9"><span class="label">[9]</span></a> Cf. Preziosi, <i>La Germania a la Conquista dell&#8217; Italia</i>,
+p. 57 fol.</p></div>
+
+<div class="footnote"><p><a name="Footnote_10_10" id="Footnote_10_10"></a><a href="#FNanchor_10_10"><span class="label">[10]</span></a> <i>L&#8217;Invasione tedesca</i>, p. 147.</p></div>
+
+<div class="footnote"><p><a name="Footnote_11_11" id="Footnote_11_11"></a><a href="#FNanchor_11_11"><span class="label">[11]</span></a> <i>L&#8217;Invasione tedesca in Italia</i>, p. 149.</p></div>
+
+<div class="footnote"><p><a name="Footnote_12_12" id="Footnote_12_12"></a><a href="#FNanchor_12_12"><span class="label">[12]</span></a> <i>Op. cit.</i>, p. 150.</p></div>
+
+<div class="footnote"><p><a name="Footnote_13_13" id="Footnote_13_13"></a><a href="#FNanchor_13_13"><span class="label">[13]</span></a> It is an American Company for the sale of certain
+machines. The Russian organ mentions all the names.
+For my purpose this is unnecessary. The curious may
+find them in the <i>Novoye Vremya</i> of 5/18 August, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_14_14" id="Footnote_14_14"></a><a href="#FNanchor_14_14"><span class="label">[14]</span></a> <i>Novoye Vremya</i>, 5/18 July, 1916.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_IV" id="CHAPTER_IV"></a>CHAPTER IV<span class='pagenum'><a name="Page_37" id="Page_37">[37]</a></span></h2>
+
+<h3>THE ANNEXATION MANIA</h3>
+
+
+<p><span class="smcap">Another</span> instructive example of the Annexation
+mania, as it displays itself in German
+commercial undertakings, comes to us from
+Russia.</p>
+
+<p>It is only one of many, a typical instance
+of a recognized method. The Franco-Russian
+joint-stock company Provodnik is known
+throughout Europe. It manufactures tyres
+and other rubber wares. The capital, which
+amounted to only 700,000 roubles at the date
+of its foundation, in the year 1888, had increased
+to 22,000,000 by the time when
+war was declared. It is closely connected
+with another company named the Buffalo,
+which has its headquarters in Riga and was
+promoted by the President of the Provodnik,
+M. Wittenberg, together with several Austrian
+capitalists. M. Wittenberg is President
+of both companies, and the Provodnik has
+assisted the Buffalo on various occasions, even
+during the war, notwithstanding the fact that
+the shareholders of the Buffalo are mostly
+German subjects. On January 2, 1914, another
+company was created, this time in Berlin,
+and called the &#8220;German Provodnik.&#8221; Now,
+according to the instructions laying down the
+rights of the Board (Par. 24), wares may not be
+delivered on credit to any firm or institution
+for the value of more than 50,000 roubles, and<span class='pagenum'><a name="Page_38" id="Page_38">[38]</a></span>
+not even to this amount unless the solvency of
+the recipient is beyond question.</p>
+
+<p>In spite of this clearly marked limitation
+the Board of the Franco-Russian Provodnik,
+which exerted itself with unwonted zest to
+supply the German Provodnik with motor-tyres
+shortly before the war, opened a credit
+of 498,000 roubles in favour of this firm. The
+manager of the warehouses of the Riga products
+in New York is a German subject named
+Lindner. The managers in Zurich and Copenhagen
+are also German subjects.<a name="FNanchor_15_15" id="FNanchor_15_15"></a><a href="#Footnote_15_15" class="fnanchor">[15]</a></p>
+
+<p>It is not to be wondered at that countries
+like Italy and Russia, poor in capital and
+industry, fell an easy prey to the ruthless
+German invader, who, with the help of British,
+French, and even Italian and Russian savings,
+suffocated the nascent industries of the respective
+nations, killed foreign competition,
+earned large profits, obtained control of the
+country&#8217;s resources and an intimate knowledge
+of the political secrets of their respective
+Governments. &#8220;Many Germans,&#8221; wrote an
+Italian Review,<a name="FNanchor_16_16" id="FNanchor_16_16"></a><a href="#Footnote_16_16" class="fnanchor">[16]</a> &#8220;serving in Italian establishments
+are in possession of lists of the fortresses,
+measurements, distances, positions of the roads
+and footpaths, they have found the points of
+triangulation and acquired all requisite data
+and information about them. And to-morrow,
+should war break out, they will accompany and
+guide the German or Austrian invaders.&#8221;</p>
+
+<p>How keen they are to make themselves conversant
+with matters of political moment in the
+guise of honest workmen is becoming fairly
+well known to day, although it may be taken
+<span class='pagenum'><a name="Page_39" id="Page_39">[39]</a></span>for granted that if peace were concluded to-morrow
+these same commercial spies would
+find hospitality among some of the easy-going
+merchants of Great Britain, who still refuse
+to believe in the obvious danger or to act upon
+their belief. In November 1912 the Italian
+Minister of the Marine called for tenders for
+the supply of silver dinner-plate for the warships.
+At the critical moment, when the
+decision was about to be taken, the German
+firm of Hermann, which has its headquarters
+in Vienna, reduced its offer first by 18 per cent.,
+then by 20, and finally by 20&middot;13 per cent. in
+order to get the order. For the order carried
+with it, for the representative of the firm,
+Herr Forster, <i>the permanent right of access</i> to all
+naval arsenals of Italy.<a name="FNanchor_17_17" id="FNanchor_17_17"></a><a href="#Footnote_17_17" class="fnanchor">[17]</a></p>
+
+<p>The <i>na&iuml;vet&eacute;</i> of Italy in matters of this
+delicate nature stands out in jarring contrast
+to the habitual caution of that diplomatic
+nation, and has not yet been satisfactorily explained
+from the psychological point of view.
+One is puzzled to understand how, months
+after the present war had begun, the press
+of Genoa could announce that the supply of
+electric motors for the Italian marine and of
+ventilators for Italy&#8217;s fortified places on her
+eastern frontier had been adjudicated to two
+German firms, on the ground that their tenders
+were the lowest.<a name="FNanchor_18_18" id="FNanchor_18_18"></a><a href="#Footnote_18_18" class="fnanchor">[18]</a></p>
+
+<p>One of the largest automobile and motor
+works in the German Empire is the Benz and
+Rheinische Automobil und Motoren Fabrik
+Actien Gesellschaft of Mannheim. It supplies
+the Kaiser with his cars and has branches
+everywhere. In Italy, too, it exists and
+<span class='pagenum'><a name="Page_40" id="Page_40">[40]</a></span>flourishes. But there the great German firm
+is modestly disguised under the name of the
+Societ&aacute; Italiana Benz. And it is so modest
+that in spite of its gorgeous warehouse in the
+Via Floria (Rome), of its luxurious head-office
+in the Via Finanze, of its well-equipped workshop
+for repairing and fitting and its little
+army of agents actively pushing the business
+all over Italy, its capital, all told, amounts
+only to 30,000 lire, or &pound;1,000! The firm is
+managed by a German engineer whose kith
+and kin are fighting in the Kaiser&#8217;s army.
+And this German engineer, Herr Matt, has
+free access to the Italian War Minister, even
+now,<a name="FNanchor_19_19" id="FNanchor_19_19"></a><a href="#Footnote_19_19" class="fnanchor">[19]</a> when it is question of manufacturing
+projectiles; and he has continuous relations
+with the Italian Airmen&#8217;s Brigade.</p>
+
+<p>Electricity in Italy, together with all its
+auxiliary trades and industries, was, like every
+other lucrative enterprise, in the hands of
+Germans and German Swiss. The names of
+the various company directors had the usual
+familiar Teuton sound. When the European
+conflict broke out it seemed for a moment as
+if all these German concerns must come to a
+sudden and dire end. But just as the German
+engineer Herr Matt, whose relatives are officers
+in the Kaiser&#8217;s army, has free access to the
+Italian War Minister and carries on his business
+in Italy as usual, so the electrical concerns
+had merely to change one or two adjectives in
+their trading names and were forthwith shielded
+from harm. A case in point which is valuable
+because typical occurred recently. The Italian
+Electro-technical Association published a list
+of the manufacturers of electric machines and
+<span class='pagenum'><a name="Page_41" id="Page_41">[41]</a></span>requisites in Italy, and by way of introduction
+set down the following patriotic remarks:
+&#8220;This list is addressed to those who at the
+present moment feel it to be their duty to
+uphold and encourage the production and
+development of materials for electricity. Importation
+from abroad, which we favoured when
+Italian industry was still in an embryonic stage,
+<i>degenerated especially in consequence of the action
+of the Germans</i>, into a veritable conquest of
+the markets; and no weapon, licit or illicit, was
+spurned to destroy our sources of production,
+and suffocate our nascent initiative.&#8221;</p>
+
+<p>These are pathetic words. They are calculated
+to appeal with force to the Italian who
+loves his country. But when one looks more
+closely into the list of Italian producers one is
+disappointed to find the same familiar names as
+before:<a name="FNanchor_20_20" id="FNanchor_20_20"></a><a href="#Footnote_20_20" class="fnanchor">[20]</a> Allgemeine Electricit&auml;ts Gesellschaft,
+Thomson Houston, the Mannesmann Tubes
+Co., the Italian Brown Boveri Co., etc. The
+nationalist Italian press organ which first
+directed public attention to these German
+subtleties asks pertinently: &#8220;Were not and
+are not the real producers named in this list
+the same who were the prime movers in the
+deplorable foreign conquest of the Italian
+market?&#8221;<a name="FNanchor_21_21" id="FNanchor_21_21"></a><a href="#Footnote_21_21" class="fnanchor">[21]</a></p>
+
+<p>The Banca Commerciale, which was admittedly
+an all-powerful German institution,
+and has the control, direct or indirect, of most
+of the industries, the silk manufacture, metallurgical
+and mechanical works of the country
+and of thirty-four electrical companies in Italy:
+which possess a capital of 434,000,000 francs
+<span class='pagenum'><a name="Page_42" id="Page_42">[42]</a></span>and produce energy equal to 940,000 h.p.:
+found itself in an unpleasant predicament as
+soon as the King of Italy declared war against
+Austria-Hungary. But Teuton resourcefulness
+solved the problem with ease and seeming
+thoroughness by inducing certain German
+officials on the board to resign and appointing
+as Italian director a gentleman known for his
+philo-Germanism. But the three creators of
+the bank were left: Herrn Joel, Toeplitz and
+Weil, and although it was affirmed solemnly
+that Joel was no longer the director but
+M. Fenoglio, it has been publicly proved that
+after the resignation of the former, the latter,
+before sending a <i>consignment of gold to Berlin</i>,<a name="FNanchor_22_22" id="FNanchor_22_22"></a><a href="#Footnote_22_22" class="fnanchor">[22]</a>
+had to ask for and actually received the
+authorization of Herr Joel.<a name="FNanchor_23_23" id="FNanchor_23_23"></a><a href="#Footnote_23_23" class="fnanchor">[23]</a></p>
+
+<p>The following brief summary of the companies
+and enterprises in which the Banca
+Commerciale is interested may enable the
+British reader to form an idea of its decisive
+influence on the economic and political life
+of the Italian nation: they include eighteen
+of the largest companies of textile industries;
+sixteen of the most important companies of
+chemical, electrical and kindred industries;
+six of the chief companies of alimentation;
+twenty-six transport companies; twenty-seven
+of the principal companies of mechanical
+industries and naval construction; six building
+companies; five of the chief mining companies;
+twenty-eight of the largest electrical companies;
+and twenty-two miscellaneous.<a name="FNanchor_24_24" id="FNanchor_24_24"></a><a href="#Footnote_24_24" class="fnanchor">[24]</a></p>
+
+<p>Thus every artery and vein of the economic
+organism of Italy is swathed and pressed and
+<span class='pagenum'><a name="Page_43" id="Page_43">[43]</a></span>choked by this German isolator, which nobody dares
+to pull away. For if we turn from the
+economic to the political aspect of this curious
+phenomenon, we shall find that the companies
+enumerated give work to scores of thousands
+of operators and employees, through whose
+willing instrumentality they become vast electoral
+agencies. &#8220;It is obvious,&#8221; we are authoritatively
+assured, &#8220;that the influence of
+such companies in administrative and political
+elections is put forth in congruity with the
+interests at stake, a circumstance which explains
+how it comes that many Italian politicians
+and representatives are, directly or otherwise,
+chained to the chariot of the Banca
+Commerciale and indirectly to that of Germany&#8217;s
+policy.&#8221;<a name="FNanchor_25_25" id="FNanchor_25_25"></a><a href="#Footnote_25_25" class="fnanchor">[25]</a> In Italy the deputies are, with
+few exceptions, the humble servants of their
+constituents, and are powerless to shake themselves
+free from local influences. &#8220;It is easy
+to infer from this what efforts have to be made
+and what compromises must be acquiesced in by
+those deputies whose election depends on such
+institutions which, aware that money is more
+than ever the nerve of political contests, subscribe
+to the election expenses, and assure in this way
+the respectful gratitude of the parliamentary
+recipients of their benefactions. And all this is
+executed with order and discipline. Examples
+could be quoted and names mentioned.&#8221;<a name="FNanchor_26_26" id="FNanchor_26_26"></a><a href="#Footnote_26_26" class="fnanchor">[26]</a></p>
+
+<p>The unsuspected ways in which this remarkable
+organization destroys, constructs and draws
+its sustenance from its victims are a revelation.
+Imagine a few British bankers possessed of two
+hundred thousand pounds and conceiving the
+<span class='pagenum'><a name="Page_44" id="Page_44">[44]</a></span>plan of wresting the economic markets of Italy
+from Britain&#8217;s rivals, building up an all-powerful
+organization with Italian money, throttling
+Italian industries and commerce with the help
+of Italian agents paid for the purpose out of
+the hard-earned savings of the Italian people,
+and then yoking the national policy to the
+interests of Great Britain. One would laugh
+to scorn such a mad scheme, and set down its
+authors as wild visionaries. Yet that was the
+programme of the little band of audacious
+Germans who conceived the design of teutonizing
+Italy. And they had almost realized it
+when the war broke out. Even the halfpence
+scraped together by poor emigrants and half-starved
+Sicilian working-men were diverted from
+the savings banks into banks of German origin,
+two of which held four hundred million francs
+of the nation&#8217;s economies a few months ago.</p>
+
+<p>It was not to be expected that the domain
+of foreign politics should long escape the notice
+or be spared the experiments of this all-absorbing
+organization. What excites our wonder
+are the superiority of its method and the completeness
+of its success. To the thinking of
+Germany&#8217;s leaders international politics and
+foreign trade are correlates. In the Near
+East, where so many of Italy&#8217;s interests are
+now concentrated, the Societa Commerciale
+d&#8217;Oriente of Constantinople, being one of the
+agencies of the Banca Commerciale, was also
+one of the canals through which this influence
+passed. Under the Italian flag and with the
+co-operation of Italian diplomacy, that &#8220;little
+business&#8221; of Germany was conscientiously
+transacted which consisted in the adaptation
+and employment of Italian expansion as an
+instrument for Teutonic interpenetration.<span class='pagenum'><a name="Page_45" id="Page_45">[45]</a></span>
+Whithersoever we turn our gaze we discern,
+lurking under the comely vesture of Italy,
+the clumsy form of the Teuton. It is
+amusing to reflect that the recent railway
+concessions in Asia Minor, for which Italian
+statesmen laboured so hard and so long,
+went in reality to the Banca Commerciale,
+which is but a roundabout way of saying
+to Germany. And in order to win their
+suit and have those advantages conferred on
+&#8220;Italy,&#8221; King Victor&#8217;s Government agreed to
+renounce their claims for the reimbursement
+of the expenses incurred during the administration
+of the occupied Turkish islands. This
+sacrifice meant tens of millions of francs, kept
+from the pockets of Italian taxpayers and handed
+over to the German bankers, who spent them in
+promoting anti-Italian projects. The Bank of
+Albania was also conceived originally as an organ
+of German propaganda, and was pushed forward
+by the same set of agents who induced the
+Italian Government to employ them as its
+own.</p>
+
+<p>In those ways the seemingly modest little
+bank scheme which Friedrich Weil with Crispi&#8217;s
+help initiated in 1890, grew until it acquired
+the influence of a State within the State. And
+then it began to discharge functions unique
+in the history of the banking world. Its
+employees became diplomatists and statesmen
+at a moment&#8217;s notice, ended wars, and drafted
+treaties. The Banca Commerciale put a stop
+to the campaign against Turkey which was a
+thorn in the side of Teutonism and settled the
+terms of peace in accordance with its own
+judgment. It was not an ambassador or a
+minister who opened the pourparlers in Stamboul
+and continued them at Ouchy, but an<span class='pagenum'><a name="Page_46" id="Page_46">[46]</a></span>
+agent of the Banca Commerciale. It was
+that same agent who immediately afterwards,
+in concert with colleagues of his bank, negotiated
+the treaty, reporting by telegraph to
+the headquarters of the bank in Milan every
+important conversation he had with the
+Turkish delegates.<a name="FNanchor_27_27" id="FNanchor_27_27"></a><a href="#Footnote_27_27" class="fnanchor">[27]</a> At a later date important
+conversations between the British Foreign
+Office and the Consulta were entered into in
+the name and for the alleged interests of Italy,
+but the principal part in the drawing up of the
+terms of the settlement arrived at was taken
+by Signor Nogara of the Societa Commerciale
+d&#8217;Oriente,&mdash;the company which the concessions
+demanded were destined to benefit. In fine,
+the parasite had thus become almost equal in
+power to the body on which it battened.</p>
+
+<p>A well-known politician and member of the
+Italian Legislature, Di Cesar&oacute;, narrated the
+following curious incident in a public speech
+delivered on March 17, 1915: &#8220;An Italian
+Admiral, having had the audacity to request
+the immediate delivery of an order for arms
+manufactured by the works which are under the
+control of the Banca Commerciale, was relieved
+of his functions within twenty-four hours, and
+his place was taken by another Admiral, who
+by chance happened to be the brother of one
+of the negotiators of the Italo-Turkish Peace
+of Ouchy.&#8221; And as we saw, the negotiators
+of that peace were officials of the Banca
+Commerciale. An authority on the subject<a name="FNanchor_28_28" id="FNanchor_28_28"></a><a href="#Footnote_28_28" class="fnanchor">[28]</a>
+wrote: &#8220;For many years the Banca Commerciale
+has contrived, directly or indirectly,
+according to circumstances, to take a hand
+<span class='pagenum'><a name="Page_47" id="Page_47">[47]</a></span>in the formation of various ministries.... As
+a matter of fact, on its governing board there
+are seven senators, many deputies, and a
+numerous host of political notabilities. It has
+its tentacles everywhere, high up and low
+down, in Italy and abroad, in peace time and
+in war time, when our native land is elated
+with good fortune and when it is cast down
+with bad. Its hand lies heavy upon everything
+and everybody. It is the arbitress in
+the choice of good and evil and is under no
+obligation to render an account of its doings
+to any one.... In war time we are certain
+to feel greatly hampered by the meshes of
+such a firmly woven net.&#8221;<a name="FNanchor_29_29" id="FNanchor_29_29"></a><a href="#Footnote_29_29" class="fnanchor">[29]</a> This anticipation
+has since come true.</p>
+
+<p>Like the vampire that soothes its victim
+while drawing its life-blood, the parasitic
+German organism cast a spell over influential
+Italians of the community and imparted to
+them a feeling that things were going well with
+themselves and their country. Money passed
+from hand to hand. Labour found remunerative
+employment. Towns in decay were galvanized
+into new life. And all Italy was grateful.
+Milan, the &#8220;moral capital&#8221; of the kingdom,
+where a couple of decades before the name
+of Germany was execrated, became itself very
+largely Teutonic and was dominated by a rich
+and flourishing German colony. Venice, Genoa,
+Rome, Florence, Naples, Palermo and Torino,
+leavened in the same plentiful degree with
+pushing subjects of the Kaiser, turned towards
+Berlin as the sunflower towards the orb of day.</p>
+
+<p>Against Austria, Italians might write and
+<span class='pagenum'><a name="Page_48" id="Page_48">[48]</a></span>talk to their hearts&#8217; content, but towards
+Germany feelings of respect verging on awe
+and of gratitude bordering on genuine friendship
+were cherished by every institution and
+leading individual in the kingdom. And when
+the hour struck to wrench Italy from that
+monster vampire, the task was so arduous
+and fraught with such danger that no Cabinet
+without the insistent encouragement of the
+whole nation would have attempted it. The
+policy of every Foreign Secretary was and still
+is dominated by this unnatural relationship to
+the Teuton, and it came at last to be acknowledged
+as a political dogma that Germany must
+in no case be confounded with Austria. Indeed,
+it is fair to assert that the governing
+circles of both countries held and hold that
+nothing should be allowed to mar these
+friendly feelings, not even the circumstance
+that Germany as Austria&#8217;s ally is bound to
+stand by her during the war. Hence when
+the friction between Italy and Austria was
+growing dangerous, Germany was ready with
+two expedients for keeping her friendly intercourse
+with the former country intact. She
+first assumed the r&ocirc;le of umpire between them,
+endeavouring to beat down the demands of
+the one while spurring on the other to a
+higher degree of liberality, and when her
+well-laid and skilfully executed plan unexpectedly
+failed, in consequence of the interposition
+of a <i>deus ex machina</i>, she produced
+a draft treaty, complete in all details, which
+was to rob war between Italy and herself, if
+circumstances should render it unavoidable,
+of all its frightfulness and savagery. The
+two nations virtually said to one another:
+&#8220;Whatever else we may do, we shall steer<span class='pagenum'><a name="Page_49" id="Page_49">[49]</a></span>
+clear of mutual hostilities to the best of our
+ability. But as the action and reaction of
+alliances may thwart our efforts and force
+us into war against each other, we hereby
+undertake that that war shall be but a
+simulacrum of the struggle that we are at
+present waging against all our other adversaries.
+We shall respect each other&#8217;s property
+religiously, for we shall both stand in need of
+each other when the exhausting struggle is
+ended and the wounds it inflicted have to be
+dressed and healed. We Germans have invested
+thousands of millions of francs in Italy,
+the one foreign country for which we feel
+genuine affection. You Italians have thriven
+on our commercial and industrial enterprise.
+Spare our property now and you shall not
+rue your self-containment. After the war
+the Entente people will shun us as lepers, and
+our only hope of finding outlets for our commerce
+is through the neutral States. Now,
+of all the European Great Powers, Italy is
+the only one qualified to render us great
+services of this nature. And she will be glad
+of a partner whose help is free from the alloy
+of jealousy or hostility. For our interests do
+not clash, whereas those of Italy and the
+Entente Powers never can run parallel. In
+the Adriatic she will find the Slavs pitted
+against her, in Asia Minor the Russians,
+French, British, Greeks, and in the Eastern
+Mediterranean the three last-named States.
+But at no point does Germany cross her path.
+Our common hope in the future is based on
+our experience of the past. It is knowledge
+rather than trust. We Germans succeeded
+in laying the foundations of your economic
+strength. And now that Austria&#8217;s rivalry<span class='pagenum'><a name="Page_50" id="Page_50">[50]</a></span>
+has ceased, we will contribute to your political
+growth. With the help of our organizing
+talent you will become the France of the
+future. Your population is already well-nigh
+equal to that of the Republic. In ten years
+it will be more numerous, and will still go on
+increasing. Tunis has been built up by
+Italian toil. Nature has assigned the Mediterranean
+to Italy as her natural domain. The
+overlordship of the Midland Sea is yours by
+right, and in co-partnership with us you shall
+assert and enforce this right. Mind your
+steps, therefore, in performing the difficult
+egg dance which the European War may
+impose on us both. You are not, cannot be,
+friends of France, closely though you are
+related by blood. Neither can the French
+become our friends. Therefore you and we
+are natural allies, as your far-sighted politicians
+like Crispi perceived. Even Sonnino
+sees that and acknowledges it. The one
+political idea of his life was to solder Italy
+firmly to Germany. And that is still the
+desire of your aristocracy. Fight with Austria,
+if you must, but Italy and Germany
+must not become armed enemies.&#8221;</p>
+
+<p>Nearly two milliards of francs of German
+money are invested in commercial and industrial
+enterprises and immovable property in
+Italy, besides the value of ships detained at
+Italian ports, some of which have cargoes
+valued at several million francs. The Kaiser
+is himself the largest shareholder in the
+Italian mercury mines of Monte Amiata, his
+Foreign Secretary, von Jagow, is another.
+And they are resolved not to relinquish their
+hold. That Prince von Buelow should move
+every lever to save this precious pledge was<span class='pagenum'><a name="Page_51" id="Page_51">[51]</a></span>
+natural, and that Italian statesmen with their
+germanophile leanings should readily fall in
+with his scheme is not to be wondered at.
+The Kaiser&#8217;s ambassador proposed that in
+the case of war each contracting party should
+respect the property of the other. This
+formula sounds decorous. Its meaning is
+profound. A treaty embodying these stipulations
+was agreed to and secretly signed by
+Prince von Buelow and Baron Sidney
+Sonnino, whose admiration for Germany embodied
+itself in all the more important acts
+of his political career. This transaction,
+which the Italian Government wisely refrained
+from publishing, was announced by
+the Germans for reasons of their own. The
+impression produced by this display of eclectic
+affinities so pronounced that even the world&#8217;s
+most ruthless war could not impair them was
+considerable. And it would have been
+heightened if the alleged and credible fact had
+also been divulged that the diplomatic instrument
+was ratified when Italy had already decided
+upon war with Austria-Hungary. Between
+Italy and Germany stands a bridge which both
+peoples are resolved to keep intact at all costs.
+Against the facts it is useless to argue.</p>
+
+<p>The struggle between Germany and Italy,
+therefore, should it ever break out, would
+differ not merely in degree, but also, one
+may take it, in kind, from the lawless and
+ruthless savagery which characterizes the
+warfare of the Teutons against the Entente
+Powers. A civilizing mute would deaden the
+resonance of bestial passion; and even private
+property&mdash;in especial that of Germany&mdash;would
+be safe from confiscation and wanton
+destruction, and when peace is restored the<span class='pagenum'><a name="Page_52" id="Page_52">[52]</a></span>
+rich mercury mines of Italy will again belong
+to the Kaiser and his advisers. Last summer<a name="FNanchor_30_30" id="FNanchor_30_30"></a><a href="#Footnote_30_30" class="fnanchor">[30]</a>
+a series of private meetings was held for three
+days running in Switzerland, at which Germans
+of high standing took part, for the
+purpose of dealing with German capital in
+Italy and safeguarding it during the war. At
+one of the sittings it was computed that about
+two milliards of francs belonging to German
+subjects are buried in Italian undertakings or
+in house or landed property.</p>
+
+<p>In November 1915 the Italian Government
+publicly applied one of the provisions of the
+secret treaty in favour of Germany. At that
+moment it was deemed necessary to commandeer
+German ships in Italian ports for
+the service of the navy and the mercantile
+marine. Had it been a question of Austrian
+vessels they would have been seized and
+utilized without any such precautions. In
+virtue of &sect;4 of the Treaty the Italian authorities
+undertook to pay a monthly sum to the
+German owners for the use of their steamers.
+That clause lays it down that the two contracting
+states shall respect the enactment
+made by the concluding section of Article VI
+of the Hague Convention concerning the
+treatment of enemy merchant vessels.</p>
+
+<p>This treaty, then, is no mere scrap of
+paper. It is a strong bridge spanning the
+chasm between Italo-German friendship in
+the past and Italo-German friendship after
+the war. To take due note of this and of
+like symptoms of the coming readjustment
+of political and economic forces is one of the
+primary duties of Entente statesmanship which
+one piously hopes are being efficiently discharged.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_15_15" id="Footnote_15_15"></a><a href="#FNanchor_15_15"><span class="label">[15]</span></a> Their names are Johann Assman and Rudolf Meyer.
+Cf. <i>Novoye Vremya</i>, 11/24 August, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_16_16" id="Footnote_16_16"></a><a href="#FNanchor_16_16"><span class="label">[16]</span></a> <i>Rassegna Contemporanea.</i></p></div>
+
+<div class="footnote"><p><a name="Footnote_17_17" id="Footnote_17_17"></a><a href="#FNanchor_17_17"><span class="label">[17]</span></a> <i>L&#8217;Invasione tedesca in Italia</i>, p. 171.</p></div>
+
+<div class="footnote"><p><a name="Footnote_18_18" id="Footnote_18_18"></a><a href="#FNanchor_18_18"><span class="label">[18]</span></a> <i>Op. cit.</i>, p. 171.</p></div>
+
+<div class="footnote"><p><a name="Footnote_19_19" id="Footnote_19_19"></a><a href="#FNanchor_19_19"><span class="label">[19]</span></a> Cf. <i>L&#8217;Idea Nazionale</i>. The words &#8220;even now&#8221; refer to
+November 22, 1915, and may be equally true to-day.</p></div>
+
+<div class="footnote"><p><a name="Footnote_20_20" id="Footnote_20_20"></a><a href="#FNanchor_20_20"><span class="label">[20]</span></a> Felix Deutsch, Karl Zander, Otto Joel, Karl von
+Siemens, Walter Boveri, Karl Kapp, etc.</p></div>
+
+<div class="footnote"><p><a name="Footnote_21_21" id="Footnote_21_21"></a><a href="#FNanchor_21_21"><span class="label">[21]</span></a> <i>L&#8217;Idea Nazionale</i>, September 8, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_22_22" id="Footnote_22_22"></a><a href="#FNanchor_22_22"><span class="label">[22]</span></a> On May 21, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_23_23" id="Footnote_23_23"></a><a href="#FNanchor_23_23"><span class="label">[23]</span></a> <i>L&#8217;Idea Nazionale</i>, November 8, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_24_24" id="Footnote_24_24"></a><a href="#FNanchor_24_24"><span class="label">[24]</span></a> <i>Giornale d&#8217;Italia</i>, November 17, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_25_25" id="Footnote_25_25"></a><a href="#FNanchor_25_25"><span class="label">[25]</span></a> Cf. Preziosi, <i>La Germania a la Conquista dell&#8217; Italia</i>,
+p. 66.</p></div>
+
+<div class="footnote"><p><a name="Footnote_26_26" id="Footnote_26_26"></a><a href="#FNanchor_26_26"><span class="label">[26]</span></a> <i>Ibid.</i>, p. 67.</p></div>
+
+<div class="footnote"><p><a name="Footnote_27_27" id="Footnote_27_27"></a><a href="#FNanchor_27_27"><span class="label">[27]</span></a> Signor Preziosi gives the names of those agents as
+MM. Volpi, Bertolini and Nogara (<i>op. cit.</i>, p. 71).</p></div>
+
+<div class="footnote"><p><a name="Footnote_28_28" id="Footnote_28_28"></a><a href="#FNanchor_28_28"><span class="label">[28]</span></a> Professor Bondi, ex-Questor of Milan.</p></div>
+
+<div class="footnote"><p><a name="Footnote_29_29" id="Footnote_29_29"></a><a href="#FNanchor_29_29"><span class="label">[29]</span></a> Rivelazioni postume alle Memorie di un questore,
+1913. Cf. Preziosi, <i>La Germania a la Conquista dell&#8217;
+Italia</i>, p. 75 ff.</p></div>
+
+<div class="footnote"><p><a name="Footnote_30_30" id="Footnote_30_30"></a><a href="#FNanchor_30_30"><span class="label">[30]</span></a> 1915.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_V" id="CHAPTER_V"></a>CHAPTER V<span class='pagenum'><a name="Page_53" id="Page_53">[53]</a></span></h2>
+
+<h3>GERMANY AND RUSSIA</h3>
+
+
+<p><span class="smcap">Turning</span> to our other ally, Russia, we find
+that she underwent a course of treatment
+similar to that which well-nigh prussianized
+Italy. In the Tsardom the task was especially
+easy owing largely to the advantages offered to
+Teutonic immigrants from the days of yore,
+to the German-speaking inhabitants of the
+Baltic provinces, to the proselytizing German
+schools which flourish in Petrograd, Moscow,
+Odessa, Kieff, Saratoff, Simbirsk, Tiflis, Warsaw
+and other centres, to German colonies
+scattered over Russia and to religious sects.
+During the Manchurian campaign the Commercial
+Treaty drafted in Berlin, and at first
+denounced by Count Witte as ruinous to
+his country, was agreed to and signed.<a name="FNanchor_31_31" id="FNanchor_31_31"></a><a href="#Footnote_31_31" class="fnanchor">[31]</a> It
+was Hobson&#8217;s choice. After that the empire,
+which had already been a favourite and
+fruitful field for Germany&#8217;s experiments, became
+one of the most copious sources of
+her national prosperity. Commercial push
+and political espionage were so thoroughly
+fused that no line of demarcation remained
+visible.</p>
+
+<p>Russia&#8217;s losses were proportionate and at
+the time were computed at 35,000,000 marks a
+year. In the Tsardom the imposition of this
+tribute was resented. By the Teutons their
+<span class='pagenum'><a name="Page_54" id="Page_54">[54]</a></span>economic victory was followed by political
+influence. Their agents and spies abounded
+everywhere. Time passed, and as relations
+between the two empires grew tenser, the
+danger defined itself in sharper outline to
+the eyes of Russian statesmen, who resolved,
+however, to postpone remedial measures until
+the day should come for the discussion of
+the renewal of the Commercial Treaty. The
+knowledge that Russia would refuse either to
+prolong that one-sided arrangement or to make
+another like it, and that the consequences of
+this refusal would be disastrous to Germany&#8217;s
+economic and financial position, stimulated
+German statesmen to bring matters to a head
+before Russia could back her recalcitrance
+with a reorganized army, and was one of
+the contributory causes of the European
+struggle.</p>
+
+<p>Since then the war has flashed a brilliant
+light on the dark places of German intrigue,
+and some of the sights revealed are hardly
+credible. Whithersoever one turns one is confronted
+with the same striking phenomenon;
+the preponderant influence wielded in almost
+every walk of life, private and public, by
+institutions and individuals who in some
+open or clandestine way are under German
+tutelage. In the sphere of economics this is
+particularly noticeable. Three-fourths of
+Russia&#8217;s foreign trade was in German hands.
+Dealings between Russians and foreigners
+were transacted chiefly through Germany.
+Imports and exports passed principally through
+German offices, established throughout the
+length and breadth of the Tsardom, and commercial
+dealings were conducted by merchants
+in Berlin, Hamburg, K&ouml;nigsberg, Leipzig, and<span class='pagenum'><a name="Page_55" id="Page_55">[55]</a></span>
+other centres of the Fatherland. Merchandise
+was carried in and out of the country by
+German railway lines, or to German ports in
+German bottoms. Even American cotton and
+Australian wool and tallow were disposed of
+in Russia by German middlemen who had
+them conveyed in German steamers. On the
+other hand, Russian corn, sugar, spirits, were
+taken to Europe by German transport firms.
+Intending Russian emigrants were sought out
+by agents of German steamship companies,
+sent to German ports and accommodated on
+German steamers. In brief, whenever the
+Tsar&#8217;s subjects had anything to sell to the
+foreigner or to buy from him, their first step
+was to go in search of a German, through
+whom the sale or purchase might be effected.</p>
+
+<p>In domestic economics the same phenomenon
+was everywhere noticeable. To a Russian&#8217;s
+success in almost any commercial or industrial
+venture, the co-operation of the German was
+an indispensable condition. Individual enterprise
+might sow and governmental legislation
+might water, but it was German goodwill
+that vouchsafed the fruit. Wherever Russian
+industry showed its head, Germans flocked
+thither to take the concern in hand, regulate
+its growth, and co-ordinate its effects with
+those of other industries which were under the
+patronage of German banks. It was in vain
+that Witte and his fellow workers threw up
+barriers that seemed impassable to German
+enterprise. They were turned with ease and
+rapidity. Thus in order to protect the textile
+industries of Moscow, prohibitive tariffs were
+levied on textile fabrics of German origin.
+But the irrepressible Teuton crossed the frontier,
+established his factories in Poland, founded<span class='pagenum'><a name="Page_56" id="Page_56">[56]</a></span>
+the German-Jewish town of Lodz, and snapped
+his fingers at the Government of the Tsar.
+And forthwith Lodz assumed all the characteristics
+of a German city. German schools
+flourished there, German agents abounded,
+German became the recognized language, and
+permission was at one time given to German
+reserves there, to undergo their periodic term
+of military drill for the Kaiser&#8217;s army!</p>
+
+<p>Of the three Entente Powers challenged by
+Germany in 1914, Russia was therefore by far
+the worst equipped for the unwonted effort
+which the European War demanded of each.
+For her liberty of action, and, in some cases,
+even her liberty of choice, was hampered by
+the financial, economic, and political network
+which Germany had slowly and almost imperceptibly
+woven over the entire population.
+In the fine meshes of this net several organs
+of national life were caught, immobilized and
+connected with the Fatherland. And it was
+not until they strove to move and discharge
+their functions on behalf of the Russian nation
+that they became fully conscious of their
+plight. German intrigue and subterranean
+scheming, under the mask of sympathy&mdash;now
+for the autocracy, now for socialism&mdash;had
+effected far-reaching changes in the Empire,
+which few even among observant politicians
+appear to have realized. These innovations
+were embodied in the thraldom of Russian
+banks to German financial institutions; in
+the splendid organization which kept old
+German colonies that were scattered over the
+Empire in touch with each other, and co-ordinated
+their action; in the eloquent Russian
+advocates and influential dignitaries who contributed
+to the furtherance of German ideas<span class='pagenum'><a name="Page_57" id="Page_57">[57]</a></span>
+and interests and swayed the policy of the
+State; and in the dependence of the great
+Russian Empire on its enemy for munitions,
+and almost every other technical necessary
+of war.</p>
+
+<p>From the days of the great Peter this
+Teuton influence had been creeping imperceptibly
+over the Slav race like some cancerous
+soul-growth. It infused a subtle poison in
+the State organism, the most appalling effects
+of which are only now assuming visible shape.
+Two palace revolutions were brought about
+by a national reaction against the predominance
+of this foreign influence, which was resented
+by the people not merely because it was alien,
+but largely also because of its unscrupulous
+and ruthless character. Some of the most
+atrocious cruelties which students of Russian
+history associate with court and political life
+in the Tsardom, during the best part of two
+centuries, had their sources in the sheer
+malignity of Teuton Ministers who spoke and
+acted in the name of the autocrat of the
+moment. It is characteristic that the Minister
+M&uuml;nnich, in the school for officers which he
+founded in Petersburg, had Russian history
+eliminated from the programme as superfluous,
+German history being allowed to remain; and
+that out of 255 students, only eighteen studied
+the Russian language, whereas 237 applied
+themselves to German. The first Sovereign
+to rebel against this Teuton supremacy in his
+Empire was the late Alexander III., who made
+no secret of his profound dislike for German
+ways. But as the Russian proverb has it,
+&#8220;one man in the field, is not a soldier.&#8221;
+Hercules, to cleanse the Augean stables, had
+need of the water of a river, and the anti-German<span class='pagenum'><a name="Page_58" id="Page_58">[58]</a></span>
+Tsar could not hope to make headway
+without the co-operation of his army of
+officials, who themselves were permeated with
+the Teutonic spirit. And as passive resistance
+was their attitude, his purging scheme was
+abortive. As a matter of cool calculation,
+the only hope of freeing Russia from the
+meshes of the German net was a war between
+the two peoples. And all radical legislation
+had therefore to be postponed.</p>
+
+<p>In the meanwhile the Germans, having
+organized and primed their agents, have been
+teutonizing Russia cunningly and effectively.
+With the precious assistance of their own kith
+and kin settled in the Baltic provinces and
+elsewhere, they employed the never-failing
+expedient of taking an active and, when
+possible, a leading part in domestic Russian
+politics, and invariably on both sides. At
+the Court they have always been well represented,
+and in the ranks of the inarticulate
+and Parliamentary Opposition they have also
+been playing a noteworthy part. In factories
+and other industrial and commercial institutions
+they arranged strikes, called indignation
+meetings and hatched conspiracies at critical
+junctures when it was to Germany&#8217;s interest
+that Russia&#8217;s attention should be riveted
+upon home affairs. No Parliamentary Bill
+could be privately drafted, no railway scheme
+could be secretly discussed, no Ministerial
+measure could be canvassed; nay, seldom
+could a confidential report be drawn up to the
+Emperor himself without the knowledge of
+the Berlin authorities and the occasional intervention
+of their agents in Petrograd. It is
+interesting to note that in 1914 a secret
+memorandum of a highly confidential character,<span class='pagenum'><a name="Page_59" id="Page_59">[59]</a></span>
+from a statesman to the Tsar, found its way
+to Berlin soon after it had been presented to
+the monarch and had a certain influence on
+the decisions which led to the war.</p>
+
+<p>The work of economic interpenetration
+carried on under the &aelig;gis of such powerful
+patrons and resourceful coadjutors was greatly
+facilitated by the German colonies scattered
+over Russia for generations. Many of these
+foreigners had been invited by Catherine II.,
+receiving large grants of land and various
+privileges which enabled them to flourish at
+the expense of the native population, on which
+they looked down with open contempt.</p>
+
+<p>At that time the extent of free land was
+considerable in Bessarabia, Volhynia, and the
+provinces of Kherson, Ekaterinoslav, Saratoff
+and Samara, where down to the year 1915
+entire cantons were inhabited by Germans.
+In the Novouzensky canton, for example, they
+constituted 40 per cent. of the population,
+in that of Berdyansk 17 per cent. and in the
+Akkerman canton 14 per cent. The inducements
+which had been held out to them to
+settle in these fertile districts were irresistible.
+Each colonist received fifty dessiatines of
+land,<a name="FNanchor_32_32" id="FNanchor_32_32"></a><a href="#Footnote_32_32" class="fnanchor">[32]</a> extensive pastures for cattle, grants
+for the journey and the cost of stocking
+his farm, absolute immunity from all taxes,
+rates and military service, and complete local
+autonomy apart from that of the Russian
+community.</p>
+
+<p>The Germans whom these boons attracted
+were of two categories: sectarians (Menonites),
+who eschewed military service on religious
+grounds; and ne&#8217;er-do-wells, who objected
+to the restraints of law and justice in the
+<span class='pagenum'><a name="Page_60" id="Page_60">[60]</a></span>Fatherland; besides a considerable percentage
+of tramps. Most of the men of the second
+category fared as badly in their adopted
+country as they had in their native land.
+They gave themselves up to intemperance and
+kindred vices, and their descendants still lead
+a hand-to-mouth existence in the Tsardom
+which their privileges alone could not better.
+The sectarians, on the other hand, formed a
+compact co-operative body, and by dint of
+persevering industry and shrewdness, made
+the most of their favoured position and prospered.
+With their common savings they
+purchased such vast tracts of land from the
+neighbouring gentry that in time the Russian
+population was constrained to emigrate to
+Siberia and other distant parts of the Empire.
+And when the present conflict was unchained
+they were in possession of an area of fertile
+land bigger than Pomerania, which is one of
+the largest provinces of Prussia. In the Volga
+country alone they owned 879,420 dessiatines,
+or, say, 1,884,471 acres! In the south of
+Russia there are 519 German settlements, and
+the area they occupy is estimated at more
+than 31,252 square versts.<a name="FNanchor_33_33" id="FNanchor_33_33"></a><a href="#Footnote_33_33" class="fnanchor">[33]</a> And the land
+of the country gentry in the neighbouring
+districts was fast passing into their hands.<a name="FNanchor_34_34" id="FNanchor_34_34"></a><a href="#Footnote_34_34" class="fnanchor">[34]</a>
+They have their own local government, their
+banks which help them to acquire Russian
+land, their insurance companies and their
+schools. In short, they were a compact little
+State within the Tsardom.</p>
+
+<p>The sectarians still hold aloof from the
+native population. Indeed, almost the only
+relations in which they stand to Russians are
+<span class='pagenum'><a name="Page_61" id="Page_61">[61]</a></span>those of masters and agricultural labourers.
+They hire Russian peasants to till their land
+and they compel them to work hard for small
+wages. Many of these colonies have the appearance
+of little German towns. They have
+added industrial pursuits to agricultural, possess
+flour mills, timber mills, and plough their
+farms with German implements. They are
+aggressively German in sentiment, language,
+character and Kultur.</p>
+
+<p>That in brief is the history of one type of
+German colonization in the Tsardom. There
+is another at which it may not be amiss to
+cast a glance. It is of recent date and consists
+of German elements already resident in the
+Tsardom. It is a monument of Teuton
+audacity and Slav forbearance. One might
+ransack the history of European nations without
+finding another such instance of downright
+effrontery and disloyalty on the part of a
+privileged section of the community, and of
+easy-going toleration on the part of the State.
+The German elements of the provinces of
+Kurland and Livland, subjects of the Tsar
+though they are, resolved after the abortive
+revolution of 1906 to raise a living wall against
+the rising tide of Russian influence. And as
+is the wont of the Teuton throughout the world,
+they employed Russia&#8217;s men and Russia&#8217;s
+money to achieve their anti-Russian object.
+This object was to attract some twenty
+thousand Germans to the province, provide
+them with farms on easy terms, and look to
+time, the industry of the men, the fecundity
+of the women and the teachings of the schools
+to create a new German State in that part
+of the Russian Empire. It was part of the
+functions of these colonists, we are frankly<span class='pagenum'><a name="Page_62" id="Page_62">[62]</a></span>
+told by their historiographer,<a name="FNanchor_35_35" id="FNanchor_35_35"></a><a href="#Footnote_35_35" class="fnanchor">[35]</a> &#8220;to serve, even
+as armed defenders&#8221; against the Russians!
+In no other country on the globe is such a
+scheme conceivable.</p>
+
+<p>The undertaking was organized and carried
+out by two brothers, Br&ouml;drich by name, in
+one of whom the Tsar&#8217;s Government placed
+implicit confidence and evinced it by appointing
+him to be chief of the police in the canton of
+Goldingen. In this post of trust the German
+leader was able to further the anti-Russian
+cause materially. And he utilized his opportunities
+to the utmost for the purpose during
+the five years of his tenure of office. He
+himself travelled in search of suitable German
+colonists and had numerous agents on the
+look-out for such. He finally got about 13,000
+to settle in Kurland and 7000 in Livland.
+The Kurlandische Kreditverein advanced the
+necessary capital as mortgagee of the land,
+and within five or six years many of the
+colonists had already paid off their debts,
+sold their farms to other Germans and bought
+untilled land in the neighbourhood for themselves.
+The school was responsible for the
+required standard of German patriotism. The
+success of the experiment exceeded the highest
+expectations, and to-day the man of confidence
+of the Tsar&#8217;s Government, Karl Robert
+Br&ouml;drich, is become chief of the local administration
+under Wilhelm II., and deservedly
+enjoys the confidence of the Kaiser&#8217;s Ministers.</p>
+
+<p>This type of German invasion in Russia,
+especially in recent years, was carried out
+<span class='pagenum'><a name="Page_63" id="Page_63">[63]</a></span>with a supreme disdain of the laws of the
+Empire which is equally characteristic of
+those who display and those who tolerate it.
+In virtue of a law inscribed in the Statute
+Book on 14/26 March 1887, foreigners are not
+permitted to purchase or own land outside
+the cities in the provinces of Kurland and Livland,
+whereas in Esthland there is no such
+prohibition. Yet in Esthland only 6396 dessiatines
+belong to Germans, whereas in the
+two provinces whence they are absolutely
+excluded Germans possess 36,852 dessiatines
+and 6396 dessiatines respectively! In the
+territory of the Don Cossacks no foreigner
+may possess land under any circumstance,
+yet the Germans own there 3700 dessiatines.
+Again, in the provinces of Podolia and Volhynia,
+where, for State reasons, the ownership of
+land is allowed only to Russians, Germans purchased
+and own 63,831 dessiatines in the latter
+province and 12,475 in the former. Altogether
+the amount of Russian territory which passed
+into the hands of the Teutons is enormous.
+In July 1915, when the inventory was not yet
+completed, the area inscribed had reached the
+total of 2,450,000 dessiatines or about 5,250,000
+acres.<a name="FNanchor_36_36" id="FNanchor_36_36"></a><a href="#Footnote_36_36" class="fnanchor">[36]</a> &#8220;This figure&mdash;&#8221; we are assured&mdash;&#8220;is still
+far from complete, inasmuch as a large number
+of data from various provinces have not been included
+in it, and there are no entries at all for the
+three provinces of the kingdom of Poland where
+military operations are going on and where
+unhappily the presence of German colonists has
+been utilized by the German General Staff.&#8221;<a name="FNanchor_37_37" id="FNanchor_37_37"></a><a href="#Footnote_37_37" class="fnanchor">[37]</a></p>
+
+<p><span class='pagenum'><a name="Page_64" id="Page_64">[64]</a></span></p><p>In Poland there were well over 500,000
+German colonists, besides a large number of
+new-comers, whose unwritten &#8220;privileges&#8221;
+included, as we saw, occasional permission
+to their young men liable to serve a few weeks
+annually in the ranks of the German army
+to discharge that duty under German officers
+in Russian Poland! In the Ukraine and the
+most fertile districts of the Volga basin hundreds
+of thousands of Germans lived, throve,
+and upheld the traditions as well as the
+language of the Fatherland, under the eyes
+of tolerant local authorities.</p>
+
+<p>Hard by old Novgorod, the once famous
+Russian republic and cradle of the Russian
+State, a number of German colonists settled
+some 150 years ago. The population of two
+of these settlements numbers several thousand
+souls, descendants of the original settlers, in
+the fourth and fifth generation. They had
+had time enough, one would think, during
+that century-and-a-half to assimilate Russian
+ways and to acquire a thorough knowledge of
+the Russian tongue. Well, these colonists do
+not speak the language of the country in
+which they and their forbears have been
+living for over 150 years! They still consider
+themselves German, and if you ask them who
+their sovereign is they answer unhesitatingly&mdash;Kaiser
+Wilhelm! During Russia&#8217;s recent
+military reverses, which threatened for a time
+to culminate in the capture of Riga, and
+possibly of Petrograd as well, these parasites
+in the body politic of Russia displayed their
+joy in various unseemly ways, which aroused
+the indignation of their Slav neighbours. In
+one of their schools the Russian visiting
+authorities were received with demonstrations<span class='pagenum'><a name="Page_65" id="Page_65">[65]</a></span>
+of hostility. It is usual for the portrait of the
+Russian Tsar to be set up in every school in
+the Empire. In one of these educational establishments
+it was discovered in the lavatory
+with the eyes gouged out.</p>
+
+<p>Long before this war Berlin had become alive
+to the importance of these colonies as factors
+in the work of pacific interpenetration and
+political propaganda. Wandering teachers
+from the Fatherland were accordingly sent
+among them to link them up with their brethren
+at home, and fan the embers of patriotism
+which long residence in the Tsardom had not
+quenched. Little by little, the political fruits
+of these apostolic labours began to show
+themselves: the colonists, whose main preoccupation
+had been to occupy the most
+fertile soil in the district, began to take over
+the approaches to Russia&#8217;s strategic plans,
+and to display an absorbing interest in Russian
+politics. Several Zemstvos fell into their
+hands, and were practically controlled by
+them, and they contrived to gain considerable
+influence in the elections to the Duma.</p>
+
+<p>The chance of a useful part for these German
+colonies to perform having thus unexpectedly
+arisen on the horizon, they seized it with
+promptitude and utilized it with the thoroughness
+that characterizes their race. The numbers
+prosperity, and influence of the colonies grew
+rapidly. Land that had belonged to the
+Russian peasantry was taken over by the
+foreign parasites, and while the Tsar&#8217;s Minister,
+were toiling and moiling to transport hundreds
+of thousands of Russian husbandmen and their
+families in search of land beyond the Ural
+Mountains to the virgin forests of Eastern
+Siberia, there in the very heart of European<span class='pagenum'><a name="Page_66" id="Page_66">[66]</a></span>
+Russia were hundreds of thousands of intruders,
+who, with the help of their German Colonial
+banks, were acquiring additional tracts of land
+from which their native owners had been ousted.</p>
+
+<p>I pointed out this anomaly over and over
+again, and long before the war I described it
+in review articles. The well-known German
+Professor, Hans Delbr&uuml;ck, replied shortly
+afterwards, in the <i>Contemporary Review</i>,<a name="FNanchor_38_38" id="FNanchor_38_38"></a><a href="#Footnote_38_38" class="fnanchor">[38]</a>
+denying point-blank the truth of my
+statements, which were drawn from official
+sources, and confirmed by the evidence
+of my senses. For I had visited several
+of the colonies in question. Besides these
+German settlements, there had also been
+a number of German industrial and commercial
+establishments in the Empire which,
+at first nowise harmful, were afterwards taken
+in hand by emissaries from Berlin, linked up
+together, affiliated to one or other of the great
+financial houses of Germany, and transformed
+into redoubtable instruments of Teuton domination.
+Capital was subscribed, syndicates
+were formed, railway-building and electro-technical
+industries were organized, Russia&#8217;s
+railways policy modified, and metallurgical
+works were monopolized by the Germans.
+Here again financial institutions discharged
+the functions of motive power. At the beginning,
+about thirty million roubles were subscribed
+for the creation of banks, and by dint
+of push, importunity, secret influence and
+intrigue, these institutions received on deposit
+the savings of the Russian peasant, merchant,
+landowner, and official, which finally mounted
+up to several hundreds of millions. With
+this money they were enabled to control the
+<span class='pagenum'><a name="Page_67" id="Page_67">[67]</a></span>markets and constrain Russian institutions
+and individuals to bow to their will.</p>
+
+<p>Contracts in Russia were appropriately
+drafted in the German language, being directed
+to the promotion of German interests. Incipient
+and even long-established Russian firms
+were either killed by unfair competition or
+compelled to enter the syndicates and forego
+their national character. Inventions and new
+appliances were tested, plagiarized, and employed
+in the service of the Fatherland. And
+while preparing for the war which was to set
+Germany above the nations&mdash;<i>Deutschland &uuml;ber
+Alles</i>&mdash;these syndicates followed the policy
+dictated from Berlin, sowed discord between
+Russian firms and various State departments,
+organized strikes and paid the strikers in
+competing establishments, and thus deprived
+the Russian State of industrial organs on
+which it would necessarily have to rely in
+war-time. To give but one example of this
+cleverly devised attack, the cotton industry of
+the Tsardom was in the hands of the Germans
+when war was declared. Another of the most
+important groups of Russian industries is
+that of naphtha. When this precious liquid
+is dear, many of the lesser works have to close;
+when it is cheap, even small industrial enterprises
+are able to go on working. By way
+of obtaining complete control of this vital
+element of Russia&#8217;s industrial life, the Deutsche
+Bank went to work to form a syndicate, had
+a number of private wells bought up, united
+them in one, acquired numerous shares in
+Russian oil companies, and had the manager
+of another German bank&mdash;the well-known
+Disconto Gesellschaft&mdash;made a member of
+the Board of the Russian Nobel Company.<span class='pagenum'><a name="Page_68" id="Page_68">[68]</a></span></p>
+
+<p>One of the results of this ingenious deal was
+a sharp rise in the prices of all the products
+and some of the by-products of naphtha.
+The increase continued at an alarming rate,
+filling the pockets of the German shareholders,
+whose syndicates received the oil at cost
+price for their own consumption, while Russian
+firms were forced to acquire it at the market
+value or to shut down their works. Amongst
+the worst sufferers from these anti-Russian
+tactics were the steam-navigation companies
+of the Volga, which had jealously warded off
+all attempts to germanize them.</p>
+
+<p>In conditions as restrictive as these, it is
+well-nigh impossible for Russian industry to
+hold its own, much less prosper and grow.
+And only the most vigorous and best-organized
+enterprises in the Empire, like that of the
+Morozoffs in Moscow, managed to pursue their
+way unscathed. In Russian Poland, where
+textile industries flourished, and the total
+annual production was valued at 294,000,000
+roubles, over one-third of these industries belonged
+to the Germans, whose yearly output
+amounted to more than one-half of the grand
+total, <i>i.e.</i>, to 150,000,000 roubles.<a name="FNanchor_39_39" id="FNanchor_39_39"></a><a href="#Footnote_39_39" class="fnanchor">[39]</a> In all
+these industrial and commercial campaigns
+the German prime movers had carried out
+their operations more or less openly. But
+where interests affecting the defences of the
+Empire were concerned, caution was the first
+condition of success, and, as usual, the Teutons
+proved supple and adaptable. By way of
+levying an attack against the shipbuilding
+industry, they pushed shaky Russian concerns
+into the foreground, while studiously
+keeping themselves out of view. Thus in
+<span class='pagenum'><a name="Page_69" id="Page_69">[69]</a></span>one case new Russian banks were founded,
+and old ones in a state of decay were revived
+by means of German capital and encouraged
+to form a syndicate with the Nikolayeffsky
+shipbuilding works and certain foreign banks.
+An official inquiry, presided over by Senator
+Neidhardt, lately revealed the significant fact
+that each firm of this syndicate had bound
+itself to demand identical prices for the construction
+of Russian ships, and under no
+circumstances to abate an iota of the demand.
+And it was further agreed that these prices
+<i>should be so calculated as to yield to the members
+of the syndicate one hundred per cent. profit</i>.</p>
+
+<p>This allegation is not a mere inference, nor
+a rumour. It is an established fact. Neither
+is the proof circumstantial; it consists of the
+original agreement in writing signed by the
+authorized representatives of the institutions
+concerned. The data were laid before the
+members of the Russian Duma by A.&nbsp;N.
+Khvostoff.<a name="FNanchor_40_40" id="FNanchor_40_40"></a><a href="#Footnote_40_40" class="fnanchor">[40]</a> Thus the Russian peasant is
+taxed for the creation of a fleet, and the Duma
+votes an initial credit of, say, 500,000,000
+roubles for the purpose. And if the shipbuilding
+companies and their financial bankers
+were honest the aim could be achieved. But
+in the circumstances what it comes to is that
+the nation must pay 500,000,000 more, in
+order to get what it wants. And this tax of
+a hundred per cent. is levied by German parasites
+on the Russian people. One might
+scrutinize the history of corruption in every
+country of Europe without finding anything
+to beat this Teutonic device, which at the same
+time gratified the cupidity of the money-makers
+and dealt a stunning blow at the
+<span class='pagenum'><a name="Page_70" id="Page_70">[70]</a></span>Russian State. Half of the shares of the
+celebrated Putiloff munitions factory are said
+to have belonged to the Austrian Skoda
+Works.</p>
+
+<p>At the outset of the present war, when
+Russia&#8217;s needs were growing greater and more
+pressing, the works controlled by Germans
+and Germany&#8217;s agents diminished their output
+steadily. In lieu of turning out, say, 30,000
+poods of iron they would produce only 5,000,
+and offer instead of the remainder verbal
+explanations to the effect that lack of fuel or
+damage to the machinery had caused the
+diminution. Again, one of these ubiquitous
+banks buys a large amount of corn or sugar,
+but instead of having it conveyed to the
+districts suffering from a dearth of that commodity,
+deposits it in a safe place and waits.
+In the meantime prices go up until they reach
+the prohibition level. Then the bank sells its
+stores in small quantities. The people suffer,
+murmur, and blame the Government. Nor is
+it only the average man who thus complains.
+In the Duma the authorities have been severely
+blamed for leaving the population to the mercy
+of those money-grubbers whom German capital
+and Russian tribute are making rich. &#8220;Averse
+to go to the root of the matter,&#8221; one Deputy
+complained, &#8220;the Government punishes a
+woman who, on the market sells a herring
+five copecks dearer than the current price,
+yet at the same time it permits the Governors
+to promulgate their own arbitrary laws
+regulating imports and exports from their
+own provinces. In this way Russia is split
+up into sixty different regions, each one of
+which pursues its own policy unchecked.&#8221;</p>
+
+<p>The importance of the r&ocirc;le played by the<span class='pagenum'><a name="Page_71" id="Page_71">[71]</a></span>
+banks financed by German capital in Russia
+can hardly be overstated. They advance money
+on the crops and take railway and steamship
+invoices as guarantees&mdash;they are centres of
+information respecting everybody who resides
+and everything that goes on in the district
+and the province. I write with personal
+knowledge of their working, for I watched
+it at close quarters in the Volga district and
+the Caucasus with the assistance of an experienced
+bank manager. Their political
+influence can be far-reaching, and the services
+which they are enabled to render to the
+Fatherland are appreciable. And they rendered
+them willingly. As extenders of
+Germany&#8217;s economic power in the Empire
+they merited uncommonly well of their own
+kindred. Thus of Russia&#8217;s total imports
+in the year 1910, which were valued at
+953,000,000 roubles, Germany alone contributed
+goods computed at 440,000,000. These
+consisted mainly of raw cotton, machinery,
+prepared skins, chemical products, and wool.</p>
+
+<p>How steadily our rivals kept ousting the
+British out of Russian markets by those
+means may be gathered from the following
+comparative tables. The percentage of Russia&#8217;s
+requirements supplied by the two competing
+nations varied, during the fifteen years between
+1898 and 1913, as follows&mdash;</p>
+
+<table summary="stats">
+<tr><td style="text-align: center"><i>Year.</i></td><td style="text-align: center"><i>Germany supplied.</i></td><td style="text-align: center"><i>Britain supplied.</i></td></tr>
+<tr><td>1898-1902</td><td style="padding-right: 2em; padding-left: 4em">34&middot;6 per cent.</td><td>18&middot;6 per cent.</td></tr>
+<tr><td>1903-1907</td><td style="padding-right: 2em; padding-left: 4em">37&middot;2<span style="padding-left: 1.7em">"</span></td><td>14&middot;8<span style="padding-left: 1.7em">"</span></td></tr>
+<tr><td>1908-1910</td><td style="padding-right: 2em; padding-left: 4em">41&middot;6<span style="padding-left: 1.7em">"</span></td><td>13&middot;4<span style="padding-left: 1.7em">"</span></td></tr>
+<tr><td>1911</td><td style="padding-right: 2em; padding-left: 4em">45&middot;4<span style="padding-left: 1.7em">"</span></td><td>12&middot;2<span style="padding-left: 1.7em">"</span></td></tr>
+<tr><td>1912</td><td style="padding-right: 2em; padding-left: 4em">47&middot;5<span style="padding-left: 1.7em">"</span></td><td>12&middot;6<span style="padding-left: 1.7em">"</span></td></tr>
+<tr><td>1913</td><td style="padding-right: 2em; padding-left: 4em">49&middot;6<span style="padding-left: 1.7em">"</span></td><td>13&middot;3<span style="padding-left: 1.7em">"</span></td></tr>
+</table>
+
+<p>In the year 1901 Germany supplied 31 per<span class='pagenum'><a name="Page_72" id="Page_72">[72]</a></span>
+cent. of the total value of Russia&#8217;s imports;
+in 1905 her contribution was 42 per cent.;
+and the increase went steadily forward, reaching
+over 50 per cent. in the year 1913. If we
+add to this the net profits of German industrial
+and commercial undertakings in the Russian
+Empire, we may form a notion of the appropriateness
+of the comparison which likened
+the Tsardom to a vast German colony. The
+entire economic system of the country was
+rapidly approaching the colonial type. And
+to these economic results one should add the
+political.</p>
+
+<p>It is fair to assume that at the outset the
+main motive of this industrial invasion was
+the quest of commercial profit. Subconsciously
+political objects may have been vaguely present
+to the minds of these pioneers, as indeed they
+have ever been to the various categories of
+German emigrants in every land, European
+and other. But in the first instance the
+creation of German industries in Russia was
+part of a deliberate plan to elude the heavy
+tariffs on manufactured goods. It has been
+aptly described by an Italian publicist<a name="FNanchor_41_41" id="FNanchor_41_41"></a><a href="#Footnote_41_41" class="fnanchor">[41]</a> as
+legal contraband, and it supplies us with a
+striking example of German enterprise and
+tenacity. It attained its object fully. About
+three-fourths of the textile and metallurgical
+production in the Tsardom, the entire chemical
+industry, the breweries, 85 per cent. of the
+electrical works and 70 per cent. of gas
+production were German. And of the capital
+invested in private railways no less than
+628,000,000 roubles belongs to Germans. Even
+Russian municipalities were wont to apply to
+Germany for their loans, and of the first issues
+<span class='pagenum'><a name="Page_73" id="Page_73">[73]</a></span>of thirty-five Russian municipal loans no less
+than twenty-two were raised in the Fatherland.</p>
+
+<p>The necessity of waging war against this
+potent enemy within the gates intensified
+Russia&#8217;s initial difficulties to an extent that
+can hardly be realized abroad, and was a
+constant source of unexpected and disconcerting
+obstacles. Some time before the opening
+of the war, a feeling of restiveness, an impulse
+to throw off the German yoke, had been
+gradually displaying itself in the Press, in
+commercial circles, and in the Duma. These
+aspirations and strivings were focussed in the
+firm resolve of the Russian Government, under
+M. Kokofftseff, to refuse to renew the Treaty
+of Commerce which was enabling Germany
+to flood the Empire with her manufactures
+and to extort a ruinous tribute from the
+Russian nation. Two years more and the
+negotiations on this burning topic would have
+been inaugurated, and there is little doubt
+in my mind&mdash;there was none in the mind of
+the late Count Witte&mdash;that the upshot of these
+conversations would have been a Russo-German
+war. For there was no other less
+drastic way of freeing the people from the
+domination of German technical industries
+and capital, and the consequent absorption
+of native enterprise.</p>
+
+<p>When diplomatic relations were broken off,
+and war was finally declared, Germany was
+already the unavowed protectress of Russia.
+And when people point, as they frequently
+do, to the war as the greatest blunder ever
+committed by the Wilhelmstrasse since the
+Fatherland became one and indivisible, I feel
+unable to see with them eye to eye. Seemingly
+it was indeed an egregious mistake, but<span class='pagenum'><a name="Page_74" id="Page_74">[74]</a></span>
+so obvious were the probable consequences
+which made it appear so that even a German
+of the Jingo type would have gladly avoided
+it had there not been another and less
+obvious side to the problem. We are not to
+forget that in Berlin it was perfectly well
+known that Russia was determined to withdraw
+from her Teutonic neighbour the series
+of one-sided privileges accorded to her by
+the then existing Treaty of Commerce, and
+that this determination would have been persisted
+in, even at the risk of war. And for
+war the year 1914 appeared to be far more
+auspicious to the German than any subsequent
+date.</p>
+
+<p>Handicapped by these foreign parasites who
+were systematically deadening the force of
+its arm, the Russian nation stood its ground
+and Germany drew the sword.</p>
+
+<p>Improvisation&mdash;the worst possible form of
+energy in a war crisis&mdash;was now the only
+resource left to the Tsar&#8217;s Ministers. And the
+financial problems had first of all to be faced.
+In this, as in other spheres, the country was
+bound by and to Germany, so that the task
+may fairly be characterized as one of the most
+arduous that was ever tackled by the Finance
+Minister of any country&mdash;even if we include
+the resourceful Calonne. And M. Bark, who
+had recently come into office, was new not
+only to the work, but also to the politics of
+finance in general. Happily, his predecessor,
+who, whatever his critics may advance to
+the contrary, was one of the most careful
+stewards the Empire has ever possessed, had
+accumulated in the Imperial Bank a gold
+reserve of over 1,603,000,000 roubles, besides
+a deposit abroad of 140,720,000 roubles. Incidentally<span class='pagenum'><a name="Page_75" id="Page_75">[75]</a></span>
+it may be noted that no other bank
+in the world has ever disposed of such a vast
+gold reserve.</p>
+
+<p>Although one of the richest countries in
+Europe, Russia&#8217;s wealth is still under the earth,
+and therefore merely potential. Her burden
+of debt was heavy. For at the outbreak of
+the war the disturbing effects of the Manchurian
+campaign and its domestic sequel, which had
+cost the country 3,016,000,000 roubles, had
+not yet been wholly shaken off. And, unlike
+her enemy, Russia had no special war fund
+to draw upon. As the national industries
+were unable to furnish the necessary supplies
+to the army, large orders had to be placed
+abroad and paid for in gold. At the same
+moment Russia&#8217;s export trade practically
+ceased, and together with it the one means
+of appreciably easing the strain. The issue
+of paper money in various forms was increased,
+loans were raised, private capital was withdrawn
+from the country, various less abundant
+sources of public revenue vanished, and the
+favourable balance of trade dropped from
+442,000,000 roubles to 85,500,000. Germany,
+on the other hand, possessed her war fund,
+in addition to which she had levied a property
+tax of a milliard marks a year before the
+outbreak of hostilities; she further drew in
+enormous sums in gold from circulation, and
+generally mobilized her finances systematically.</p>
+
+<p>But Russia was compelled to improvise,
+to make bricks without straw. Her war on
+a front of two thousand versts long had to be
+waged with whatever materials happened to
+be available. Japan&mdash;who, I have little doubt,
+will be found at the close of the great struggle
+to have benefited largely by her pains&mdash;exerted<span class='pagenum'><a name="Page_76" id="Page_76">[76]</a></span>
+herself to provide munitions for her new friend
+and ally. The United States, Great Britain and
+France also contributed their quota. For many
+of these orders placed abroad gold had to be
+exported, and as Russia has no other natural
+way of importing gold but by selling corn,
+which there were no means of transporting,
+a sensible depreciation of the rouble resulted.
+Great Britain and France have also had to
+make heavy purchases abroad for their military
+needs, but these two countries can still export
+wares extensively and keep the payments
+in gold within certain limits. Even Italy
+receives a noteworthy part of her annual
+revenue in the shape of emigrants&#8217; remittances
+from abroad. But once Russia&#8217;s gates were
+closed and her corn had to remain in the
+granaries, elevators, or at railway stations,
+the shortage in her revenue became absolute.
+During the first three months of the year 1915
+the value of Russian exports over the Finnish
+frontier and the Caucasian coast of the Black
+Sea was only 23,000,000 roubles, showing a
+falling off of about 93 per cent., as compared
+with the worth of the produce exported during
+the corresponding three months of the preceding
+year.</p>
+
+<p>It is a curious fact that part of this reduced
+trade continued to be carried on with Germany
+for months after the war had begun. A
+Russian publicist has remarked that at the
+opening of the campaign the voice of the
+nation was heard saying: &#8220;Corn we have
+in plenty, and vegetables and salt. It is we
+who feed Europe. Germany will therefore
+starve without our corn. Our armies may
+retreat, but our corn will go with them; and
+the more the Germans advance into Russia,<span class='pagenum'><a name="Page_77" id="Page_77">[77]</a></span>
+the further they are away from their bread.&#8221;
+And in this the average Russian saw a pledge
+of victory. But before six months had lapsed,
+the everyday man grew indignant. For he
+learned that his corn was being conveyed
+through Finland and Sweden into Germany,
+and in such vast quantities as had never
+before been heard of. Here is a street scene
+illustrative of this traffic and the feelings
+it aroused. A long string of carts laden with
+flour blocks in one of the Petrograd streets
+leading to a bridge over the Neva; a General
+walking with his wife stops one of the drivers
+and asks: &#8220;Wherever are you taking the
+flour to?&#8221; &#8220;Where do you suppose? Sure
+we&#8217;re taking it to the Germans. We have
+to feed the creatures. They are a bit faint.&#8221;
+&#8220;There you see!&#8221; exclaimed the General
+to his wife; &#8220;didn&#8217;t I tell you? And every
+morning without fail the same long line of
+carts blocks the streets while our corn is being
+taken to the Germans!&#8221;<a name="FNanchor_42_42" id="FNanchor_42_42"></a><a href="#Footnote_42_42" class="fnanchor">[42]</a> It is to be feared
+that this commerce has not yet wholly ceased.
+For the Russians, like ourselves, are considerate
+of the Germans.</p>
+
+<p>That that story of trading with the enemy
+is no idle anecdote is evident from the circumstance,
+based on official Russian statistics,
+that during ten months from August to May,
+while the war was being waged relentlessly
+between the two empires, Russia bought from
+Germany no less than 36,000,000 roubles&#8217;
+worth of manufactures. How much the Central
+Empires purchased from Russia, I am
+unable to say. That commerce is one of the
+almost inevitable consequences of improvisation
+and one of the most sinister. Some
+<span class='pagenum'><a name="Page_78" id="Page_78">[78]</a></span>months after the outbreak of the war the
+Imperial Government levied a duty of a hundred
+per cent. on all commodities coming
+from Germany, Austria-Hungary, and Turkey.
+That was assumed to be a prohibitive tariff.
+But it failed to keep out imports from the
+Fatherland. In the one month of April 1915,
+Germany sent 3,000,000 roubles&#8217; worth of
+manufactured goods into Russia, and in May
+2,500,000 roubles&#8217; worth. And the Allied
+Press was then descanting on the stagnation
+in German trade and the starvation
+of the German people. The explanation of
+this anomaly lies in the unforeseen and
+enormous scarcity and rise of prices in the
+home markets. Some metal wares&mdash;for instance,
+various kinds of instruments and of wire
+appliances, etc.&mdash;are not to be had in Russia
+for love or money, consequently a hundred per
+cent. duty is but a heavy tax paid by the
+consumer, not an effective prohibition.<a name="FNanchor_43_43" id="FNanchor_43_43"></a><a href="#Footnote_43_43" class="fnanchor">[43]</a> Since
+then, I am assured, the Government has
+adopted stringent measures which some people
+believe to have put an end to that form of
+trading with the enemy.</p>
+
+<p>It is hard for foreigners to realize the plight
+to which Russia has been reduced by the closing
+of her gates. As the Nile waters were the
+source of Egypt&#8217;s prosperity, so the abundant
+Russian harvests constitute the life-giving
+ichor which flows in the veins of the Russian
+nation. Without superfluous corn for exportation,
+the State would be unable to meet
+its obligations, maintain its solvency, or provide
+the motive power of progress. The
+exportation of agricultural produce was the
+fountain head not only of Russia&#8217;s material
+<span class='pagenum'><a name="Page_79" id="Page_79">[79]</a></span>well-being, but of her moral and cultural
+evolution: everything, in a word, was dependent
+upon plentiful harvests and extensive
+sales of cereals abroad. And, suddenly, the
+gates were closed, the corn was stored, and the
+nation left without its revenue. Nobody but
+a Russian, or one who has lived long in the
+country, can realize fully all that this tremendous
+blow connotes. Parenthetically, it may
+be remarked that it adds a motive, and one
+of the most potent, to those which inspire
+the heroic sacrifices of the people, quickening
+the flame of devotion to their Allied cause.
+Russia is now literally fighting for her own
+liberty, for escape from the iron circle that
+shuts her off from the sea, and isolates her
+from the western world in which it is her
+ambition and her mission to play a helpful
+part.</p>
+
+<p>One needs no further explanation why the
+Russian Government put pressure upon M.
+Delcass&eacute; and Sir Edward Grey to open the
+Dardanelles route for the Russian corn.
+Neither is it to be wondered at that while the
+Allied Forces in Gallipoli were still grappling
+with the Turks, the Tsar&#8217;s Ministers should
+have thrust into the foreground the question
+of Constantinople and the Straits, and insisted
+upon an immediate pragmatic settlement.
+True, that was not statesmanship; it was
+anything but political wisdom; but at any
+rate it was human on the part of all concerned.
+If this Titanic struggle, in which Russia is
+perhaps the greatest sufferer, is to bring her
+any palpable and enduring advantage, this,
+it was urged, can take but one form&mdash;freedom
+from the preposterous restraints that bar her
+way to the sea, and through the sea to the<span class='pagenum'><a name="Page_80" id="Page_80">[80]</a></span>
+outside world. This and other pleas were
+powerful; but for this very reason and for
+the purpose of realizing her natural striving
+I personally would have temporarily negatived
+the Russian proposal and left nothing undone
+to ensure its withdrawal. For if I were
+asked to point to the efficient cause of the
+Allies&#8217; present lamentable plight in the Near
+East, I should single out this premature
+arrangement and its necessary consequences.
+For Roumania and Bulgaria were at the
+moment as bitterly opposed to Russia&#8217;s overlordship
+in the Dardanelles and her possession
+of Constantinople as were France and Great
+Britain in the days of yore. And they
+embodied their opposition in acts.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_31_31" id="Footnote_31_31"></a><a href="#FNanchor_31_31"><span class="label">[31]</span></a> In June 1904.</p></div>
+
+<div class="footnote"><p><a name="Footnote_32_32" id="Footnote_32_32"></a><a href="#FNanchor_32_32"><span class="label">[32]</span></a> About 107 acres.</p></div>
+
+<div class="footnote"><p><a name="Footnote_33_33" id="Footnote_33_33"></a><a href="#FNanchor_33_33"><span class="label">[33]</span></a> One square verst is equal to 0&middot;44 square mile.</p></div>
+
+<div class="footnote"><p><a name="Footnote_34_34" id="Footnote_34_34"></a><a href="#FNanchor_34_34"><span class="label">[34]</span></a> Cf. <i>Novoye Vremya</i>, October 5, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_35_35" id="Footnote_35_35"></a><a href="#FNanchor_35_35"><span class="label">[35]</span></a> His name is Dr. Fritz Wertheimer. His writings are
+to be found in various periodicals. The essay from which
+these data are taken was published in the <i>Frankfurter
+Zeitung</i>, January 8, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_36_36" id="Footnote_36_36"></a><a href="#FNanchor_36_36"><span class="label">[36]</span></a> <i>Novoye Vremya</i>, July 2, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_37_37" id="Footnote_37_37"></a><a href="#FNanchor_37_37"><span class="label">[37]</span></a> By a law sanctioned by the Tsar, in February 1915,
+the German Colonists of Southern and Western Russia
+were obliged to sell their land to Russian subjects, and
+they received ten months&#8217; grace for the purpose.</p></div>
+
+<div class="footnote"><p><a name="Footnote_38_38" id="Footnote_38_38"></a><a href="#FNanchor_38_38"><span class="label">[38]</span></a> Cf. <i>Contemporary Review</i>, February 1911.</p></div>
+
+<div class="footnote"><p><a name="Footnote_39_39" id="Footnote_39_39"></a><a href="#FNanchor_39_39"><span class="label">[39]</span></a> Cf. Duma debates of August 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_40_40" id="Footnote_40_40"></a><a href="#FNanchor_40_40"><span class="label">[40]</span></a> Cf. <i>Novoye Vremya</i>, August 17, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_41_41" id="Footnote_41_41"></a><a href="#FNanchor_41_41"><span class="label">[41]</span></a> Virginio Gayda.</p></div>
+
+<div class="footnote"><p><a name="Footnote_42_42" id="Footnote_42_42"></a><a href="#FNanchor_42_42"><span class="label">[42]</span></a> Cf. <i>Novoye Vremya</i>, February 24, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_43_43" id="Footnote_43_43"></a><a href="#FNanchor_43_43"><span class="label">[43]</span></a> Cf. <i>Utro Rossiyi</i>, August 28, 1915.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_VI" id="CHAPTER_VI"></a>CHAPTER VI<span class='pagenum'><a name="Page_81" id="Page_81">[81]</a></span></h2>
+
+<h3>THE STATESMANSHIP OF THE ENTENTE</h3>
+
+
+<p><span class="smcap">One</span> of the most amazing phenomena of
+Entente statesmanship during the present
+European struggle, is the offhand readiness
+with which the Governments of France and
+Great Britain, yielding to abstract reasoning
+founded upon gratuitous assumptions, not only
+reversed the policy of centuries but committed
+themselves to a wholly new departure which
+was certain to raise up enemies to the Entente,
+to render its task immeasurably more arduous,
+and to lessen its means of achieving success.
+However well Russia deserved of her allies,
+however unquestionable her claim to the city
+of Constantine, no less suitable a moment
+could have been selected to press that claim
+than the spring of 1915. The only evidence
+we possess that the British statesmen primarily
+responsible for this capital blunder were conscious
+of the fateful character of this commitment,
+is the extreme care they took to have
+their responsibility shared by the members
+of the Opposition, which at that time was not
+represented in the Cabinet. But even with
+this indication before us, we cannot believe
+that even now this premature solution of a
+secular problem on lines suggested by transient
+episodes of a military campaign, has struck
+the responsible statesmen in proportion to its
+specific weight, the depth of its importance,<span class='pagenum'><a name="Page_82" id="Page_82">[82]</a></span>
+and the nature of its consequences. To take
+but one of these, we find that towards the end
+of the second year of the campaign, Turkey
+is one of the two key-positions of the international
+situation. To conclude a separate
+peace with that Power is become a pressing,
+and would also be a feasible, task were it not
+that this earmarking of Constantinople for
+Russia constitutes an impassable barrier. No
+Turkish Cabinet would or could conclude a
+separate peace and strike up friendship with
+the nations that are making ready to deprive the
+Caliph of his capital. It would be a mistake,
+however, to assume that this premature allotment
+of Constantinople to Russia is the only
+obstacle to the conclusion of a separate peace
+with Turkey. There are also hindrances of a
+military nature which would have to be displaced
+before any decisive move in this direction
+could be expected of the young Turks.</p>
+
+<p>But it cannot be gainsaid that the most
+formidable obstacle is that. Neither can it be
+questioned that that premature arrangement
+will, if the Allies emerge victorious from the
+ordeal, thrust into the foreground of practical
+politics a whole group of problems the most
+delicate and dangerous that were ever yet
+tackled by the inadequately equipped diplomacy
+of the Allied Governments. It is then
+that the Entente Powers will fully realize the
+deluge to which they made such haste to
+open the sluice-gates in the spring of 1915.
+And the only way practicable out of this blind
+alley would be the spontaneous abandonment
+by the Russian Government of the right it possesses,
+which however the Allies will certainly
+never call in question. Whether the Tsar&#8217;s
+Government believes such a sacrifice necessary,<span class='pagenum'><a name="Page_83" id="Page_83">[83]</a></span>
+and whether, if they did, they could summon
+up the courage requisite to make it, are
+questions which Russia&#8217;s loyal allies have
+neither the right nor the wish to raise. We
+will carry out our obligations in the letter and
+the spirit. If the Russian people, in the person
+of their responsible organ, should renounce for
+the moment the claims which we have formally
+recognized and undertaken to enforce, this
+decision will have been come to spontaneously
+and without pressure or advice from their allies.</p>
+
+<p>The extent to which the Teuton had his
+own way among the easy-going Russian people
+is hardly to be realized. It would be certainly
+inexplicable in an empire governed on national
+lines and conscious of its mission. For unlimited
+pliancy was the quality which German
+importunity evoked on the part of the highest
+authorities. One of many examples is worth
+recording. Among all industrial enterprises
+the Russian Government is most sensitive
+about that of high explosives. The manufacture
+of these they had always rigorously
+reserved for their own people, on obvious
+grounds. Well, the moment the Germans
+resolved to break down this barrier, they
+found the means to do it despite the objection
+raised by the Russian Press that it would be
+dangerous to confide the production of high
+explosives to foreigners and superlatively dangerous
+to confide it to prospective enemies.
+The prospective enemy carried the point, and
+the manufacture of high explosives was handed
+over to a German company, which built works
+for the purpose near the Russian capital, and
+had its headquarters and board of directors in
+Berlin!<a name="FNanchor_44_44" id="FNanchor_44_44"></a><a href="#Footnote_44_44" class="fnanchor">[44]</a></p>
+<p><span class='pagenum'><a name="Page_84" id="Page_84">[84]</a></span></p>
+<p>As in Italy, so in the Tsardom, one of the
+principal levers of Teuton interpenetration
+was the regulation of the national trade and
+industry. That is to say, these were allowed
+to subsist and thrive up to, but not beyond,
+the point at which they were useful as adjuncts
+of German enterprise. And the regulators
+were principally two: the Treaty of Commerce
+extorted from the Tsar&#8217;s Government during
+the embarrassments caused by the Manchurian
+campaign, and the German banks, which in
+the empire paraded as Russian, just as in
+Italy they were decked as Italian. Many of
+those financial institutions were but branches
+of German houses, and their methods were
+identical with those of the Banca Commerciale:
+long credits and easy modes of
+repayment offered to all those who agreed
+to deal with German firms, while discredit,
+ostracism, and ruin threatened the recalcitrant.
+And as Italian money and Italian institutions
+were employed as instruments of German interpenetration
+in foreign countries,<a name="FNanchor_45_45" id="FNanchor_45_45"></a><a href="#Footnote_45_45" class="fnanchor">[45]</a> so Russian
+funds and banks were used as helps to German
+interpenetration in Belgium and other lands.</p>
+
+<p>A noteworthy instance of the ingenuity
+with which this intricate mechanism was
+worked came to light shortly before the outbreak
+of the war. In Brussels there was a
+branch of the Petrograd International Bank
+which purported to be a purely Russian concern.
+But once the Kaiser had sent his ultimatum
+to the Tsar&#8217;s Government, the Russian
+mask was doffed by the Brussels agency,
+which forthwith appeared in its true colours
+as a potent instrument of germanization in
+Belgium. There was found to be almost
+<span class='pagenum'><a name="Page_85" id="Page_85">[85]</a></span>nothing Russian about the bank but the name.
+The staff, the language spoken, the methods
+of business, the political sympathies, the aims
+of the operations were all German. Out of the
+forty-three permanent members of the staff,
+thirty were German subjects, six Austrians,
+two German-Swiss, two Belgians, one was a
+Dutchman, one Turk, and there was a solitary
+Russian. The moment Count Berchtold presented
+his ultimatum to Serbia this &#8220;Russian&#8221;
+bank refused to change any Russian
+banknotes on any terms and let it be understood
+that they were valueless. A panic on
+the Belgian market was the immediate consequence.
+Russian travellers had to deposit
+their jewellery in pawn and pay exorbitant
+rates of interest on loans. The bank itself
+practised a kind of usury, and advanced only
+sixty per cent. of the face value of notes issued
+by the Imperial Bank of Russia. When the
+Belgian Government, after the declaration of
+war, began to tackle German espionage, this
+&#8220;Russian&#8221; bank was found to be one of the
+strongholds of the military spies. Certain of
+the employees were permanent agents of the
+German Military Attach&eacute;, and were at the same
+time inscribed as members of the staff of the
+Deutsche Bank of Berlin.</p>
+
+<p>All those well-thought-out and successfully
+executed schemes may bear in upon the
+British people some notion of what is meant
+by German organization and co-ordination,
+and may also help them to gauge the chances
+of success, military, diplomatic and economic,
+on which the Allies, with their easy-going
+ways, their hope of somehow &#8220;blundering
+through,&#8221; and their lack of combination and
+of plan&mdash;can rely when pitted against a<span class='pagenum'><a name="Page_86" id="Page_86">[86]</a></span>
+mighty organism, disposing of the most redoubtable
+forces ever created by human science
+and skill, directed by a single mind, and
+served with ascetic self-abnegation and religious
+ardour by over a hundred million
+people. The courage and faith of the Allies
+in gazing for years upon this portentous engine
+of destruction without making suitable provision
+for the day when it would be turned
+against themselves, will fill future generations
+with amazement.</p>
+
+<p>No bare enumeration of details can convey
+an adequate idea of the vastness, compactness
+and potency of the German organization which
+kept the Russian Colossus partially paralysed
+at home, while the Kaiser&#8217;s armies were dealing
+it stunning blows on the battlefield. It is a
+revelation which will be followed by a new
+birth of the whole political world. The German
+colonists, the wandering German commercial
+travellers who acted as political spies, the
+various banks, joint-stock companies, religious
+sects, journals, reviews, schools, clubs, Lutheran
+pastors, and other Teuton agents, were but
+so many wheels and springs of the mighty
+machine which was set in motion and kept
+working by the political leaders in Berlin.
+For all these firms and enterprises and individuals
+from the Fatherland scattered over
+the length and breadth of the Tsardom were
+welded together in one vast organism by far-seeing
+politicians who canalized every important
+current of the nation&#8217;s life and imparted
+to it the direction which German interests
+required. No enterprise was too vast, no
+detail too trivial, for the attention of these
+moulders of Germany&#8217;s destinies.</p>
+
+<p>All those activities, commercial, financial,<span class='pagenum'><a name="Page_87" id="Page_87">[87]</a></span>
+industrial, journalistic, religious, political, the
+German mind combined into a single idea, the
+co-ordinate parts of which were studied and
+regulated, not by party chiefs, but by qualified
+experts, who, although specialists, subjected
+them to organic treatment. In this respect
+the German may be likened to a massive sombre
+figure who, surrounded by a crowd of sprightly
+shadowy nobodies, discoursing with easy
+frivolity on grave subjects, is engrossed with
+the task of destroying a great part of the frame-work
+of the world in order to rebuild it after
+his own plan. Unfortunately the extraordinary
+enlargement of interest which marks the latter-day
+political conceptions, and inspires the
+fateful action of Germany&#8217;s acknowledged
+leaders, breeds in the allied peoples not so much
+a stern resolve to tame that revolutionary
+nation at all costs, as a sentimental longing for
+the return of the idyllic past, and an illusive
+hope that by dint of mild Christian charity it
+may yet be brought back.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_44_44" id="Footnote_44_44"></a><a href="#FNanchor_44_44"><span class="label">[44]</span></a> <i>Novoye Vremya</i>, June 24, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_45_45" id="Footnote_45_45"></a><a href="#FNanchor_45_45"><span class="label">[45]</span></a> For example, the Banca Franco-Italiana in Brazil.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_VII" id="CHAPTER_VII"></a>CHAPTER VII<span class='pagenum'><a name="Page_88" id="Page_88">[88]</a></span></h2>
+
+<h3>TEUTON POLITICS</h3>
+
+
+<p><span class="smcap">It</span> is this Teutonic power of looking far
+ahead, this profundity of vision, this mingled
+comprehensiveness and concentration, and the
+marked success with which these qualities have
+hitherto been exercised to the lasting detriment
+of the Entente nations which looked on and
+na&iuml;vely applauded, that fill the thoughtful
+student with misgivings about the future.
+True, it may not be too late for effective counter
+measures. But two conditions are manifestly
+essential to the successful application of
+any remedy: first, that its necessity should be
+felt and realized; and, second, that the scrupulosity
+which at present hesitates to apply drastic
+measures should yield to higher considerations
+than those of individual delicacy of sentiment
+and over-refined humanitarianism. When an
+individual abuses laws and restraints which
+bind his fellow-men, in order to inflict a deadly
+injury on them, it is meet that they should
+free themselves from those checks in their
+dealings with him. For example, it may be
+theoretically wrong, after the conclusion of
+the present struggle, for our people to bear such
+a grudge against the individual German as
+would exclude him from communion and
+intercourse with the nations of the Entente.
+And this principle would seem to apply with
+greater force to those Germans who might be<span class='pagenum'><a name="Page_89" id="Page_89">[89]</a></span>
+willing to abandon their nationality and
+identify their aims, interests and strivings with
+those of the nation in which they would fain
+become incorporated. But when we reflect
+that almost every German, whatever his calling,
+how profound soever his debt of gratitude
+to a foreign people, considers himself first and
+always a member of his own country, works
+for its interests to the detriment of all others,
+and does not scruple to violate moral laws and
+social traditions in order to betray his new
+friends, we may well ask in virtue of what
+precept we should abstain from ostracizing him
+from the British Empire. His second nationality
+is so often a mere mask to enable him to
+perpetrate black treason, and it is so openly
+thus regarded by his own Government, which
+upholds and solemnly sanctions the principle,
+that it would be inexplicable folly on the part
+of the British nation to aid and abet its
+enemies by admitting them to the freedom of
+the community without taking effective precautions
+against treason.</p>
+
+<p>And yet there is a large body of men in this
+country, as in France and Italy, who condemn
+the demand for these precautions as un-Christian
+and impolitic. Such laxness is the
+soil in which thrives the upas tree whose shade
+has so long darkened the organs of our empire
+and now threatens to blight the whole organism.</p>
+
+<p>An all-important feature in the controversy
+which has arisen over the naturalization of
+German subjects is the utterly amoral view of
+it which underlies the attitude of the Kaiser&#8217;s
+Government. According to these authorities,
+whose utterances and acts are decisive and
+final, a German, unlike every other subject,
+may swear allegiance to two states, of which<span class='pagenum'><a name="Page_90" id="Page_90">[90]</a></span>
+one is his Fatherland, without being bound
+by his oath to the other. Various reasons,
+including material interests, may, it is argued,
+make it desirable that he should acquire citizenship
+in a foreign land; and the Kaiser&#8217;s Government,
+for the good of the empire, recognizes
+this necessity and facilitates the process by a
+law. This law, which was enacted in July
+1913, authorizes the born German subject,
+having first made known his intention and
+motive, to swear allegiance to a foreign state
+without forfeiting, or intending to forfeit, the
+rights or escaping from the duties which flow
+from his German citizenship. Now this is
+a privilege which not even the Pope has ever
+claimed the faculty of according.</p>
+
+<p>From the point of view of international
+law this double naturalization is inadmissible.
+Every individual in the community of nations
+is the subject of a certain state, and only of
+one, and whenever the interests of that state
+run counter to those of any other, he is bound
+legally as well as morally to promote the
+former to the best of his ability and means.
+The Teuton doctrine and practice are that
+Germans may insinuate themselves into a
+country, and in the guise of loyal citizens
+become conversant with its secrets, and then
+use them to its hurt. In the light of this law,
+which was a custom long before it became a
+statute, the number of Germans naturalized
+in various countries grew amazingly during
+the past fifteen years. In France, for example,
+where there were only 38,000 foreigners naturalized
+in the year 1896 and 65,000 in 1901, the
+figure reached 90,000 in 1906 and 120,000 five
+years later. And of these, four-fifths were
+Germans and Austrians. Many Germans first<span class='pagenum'><a name="Page_91" id="Page_91">[91]</a></span>
+became Swiss or British subjects in order the
+more easily to acquire the rights of Frenchmen.
+One in particular, named Wilhelm Hellpern,
+first became a Belgian, then as Willy Hellpern
+a British subject, and finally, with a view to
+obtaining a place on the Board of the Soci&eacute;t&eacute;
+Fran&ccedil;aise de l&#8217;Industrie Chimique, applied for
+and received naturalization in France. This
+&#8220;Willy&#8221; Hellpern was a representative of the
+Central Gesellschaft f&uuml;r chemische Industrie.<a name="FNanchor_46_46" id="FNanchor_46_46"></a><a href="#Footnote_46_46" class="fnanchor">[46]</a></p>
+
+<p>When war was declared in 1914 hundreds of
+Germans applied for papers of naturalization in
+Switzerland, and obtained them from various
+little Swiss communes which were in sore want
+of funds. Spies eager to place their machinations
+under the protection of Swiss citizenship
+found smooth ways to the desired goal. In the
+single canton of Zurich demands for naturalization
+rose from 260 during the nine months
+ending in October 1913,<a name="FNanchor_47_47" id="FNanchor_47_47"></a><a href="#Footnote_47_47" class="fnanchor">[47]</a> to 732 in the corresponding
+nine months of 1915. Several cases
+of fraud were discovered during this rapid
+process of transforming foreign into Swiss
+citizens: one of the most salient being that of
+Friedrich Wilhelm Frank, a German who had
+taken out his naturalization papers in England
+and then decided to shake off his acquired
+British citizenship for that of the Helvetian
+Republic. As Frank had not been resident
+in Switzerland during the two years required
+by the law of that country he applied and
+paid for a false certificate of residence, and in
+this way achieved his object. But the trick
+was finally discovered and the naturalization
+cancelled.</p>
+
+<p>We may protest as vigorously as we will
+<span class='pagenum'><a name="Page_92" id="Page_92">[92]</a></span>against this infamous troth-mongering which
+is destructive of international relations, and
+indirectly of social intercourse, but no responsible
+government can afford to ignore the
+necessity of guarding against its consequences.
+For it is no ephemeral manifestation of temperament,
+nor the passing whim of a political
+party or a class. The law of double citizenship,
+coupled with a plenary indulgence for treason
+and perjury in the cause of the Fatherland, is
+but the solemn consecration of a principle
+which was long practised and is warmly
+approved by the entire German people. The
+Berlin Government publicly invoked it during
+the latter half of the year 1915, under circumstances
+which remove doubts on this score.
+On one and the same day in August that year
+all German official and non-official journals
+published a notice, which ran as follows: &#8220;It
+is alleged that in neutral countries, and particularly
+in the United States of America, men
+of German <i>extraction</i>&#8221; (the word <i>citizenship</i> is
+not used, but <i>extraction</i>), &#8220;are employed as
+workmen, engineers or in other capacities in
+the production of war munitions for our
+enemies. All those who thus reinforce the
+military strength of our foes, thereby make
+the prosecution of the war more difficult for
+Germany, and not only burden themselves
+with a heavy load of moral turpitude, but also
+expose themselves&mdash;and many of them are
+seemingly unaware of this&mdash;to the operation
+of the German laws which punish high
+treason.&#8221;</p>
+
+<p>In other words, subjects of, say the American
+Republic, who were born there of German
+parents or grandparents and never acknowledged
+any other government nor possessed<span class='pagenum'><a name="Page_93" id="Page_93">[93]</a></span>
+the citizenship of any other country, become
+guilty of high treason if they dare to avail
+themselves of the plenitude of the rights
+which that citizenship confers. They may not
+work for firms which supply the Allies because
+their fathers, or it may be only their grandfathers,
+happened to be Germans. The moral
+duties of German subjects still lie heavy on
+them, and they must execute the Kaiser&#8217;s will
+to-day on pain of being dealt with as traitors
+to the Fatherland.</p>
+
+<p>Monstrous principles and revolting procedure
+of this kind are calculated to kindle a blaze of
+indignation in people who realize their effects
+and set value on the boons of civilization or
+Christianity. They are among the many new
+ideas which Kultur has contributed to the
+stock of weapons destructive of modern society.
+One might term them the asphyxiating gases
+of German international politics. In keeping
+with these teachings and practices were the
+theft of foreign passports by the German
+Government which handed them over to spies,
+as in the case of Lody, who was executed in
+London in the early part of the war. Thus the
+binding force of moral and of human law is
+dissolved whenever it clashes with German
+national, military, or commercial interests.
+This dogma lies at the roots of Kultur.</p>
+
+<p>By the time war was declared, Germany had
+stretched forth her tentacles into various lands
+and was draining the life-juices of many peoples.
+Her footing in Italy, Russia, Belgium and
+France was firm. Observant students of international
+politics fancied they could determine
+the approximate date when, if the then rate
+of progress were maintained, Germany&#8217;s overlordship
+over Europe would be definitely<span class='pagenum'><a name="Page_94" id="Page_94">[94]</a></span>
+established and all armed conflicts on the
+Continent become thenceforth meaningless.
+They were all the more puzzled at what they
+set down as the egregious folly of jeopardizing
+the precious fruits of forty years&#8217; well-sustained
+labours by precipitating a tremendous conflict
+of doubtful issue. But besides the sudden
+temptation to utilize a conjuncture of exceptionally
+favourable promise, the leaders of the
+Teutonic nations felt moved to appeal to arms
+by certain slow, but steady, currents which
+threatened to change the situation to Germany&#8217;s
+detriment in the space of another few
+years.</p>
+
+<p>With the remoter causes of the Kaiser&#8217;s
+fatal resolve, we are not now concerned. It
+may suffice to know that they were numerous
+and that the trend of their operation had been
+for a few months unmistakable. Time, which
+was working wonders for the Teuton in one
+direction, was raising up redoubtable enemies
+against him in another. For one thing Russia
+was becoming transfigured. The dry bones of
+the nation which the Germans often declared
+was good only as ethnic manure had had life
+and a soul breathed into them by the great
+agrarian reform of which the credit belongs to
+Witte and Stolypin. The latter statesman in
+a series of conversations had in 1906 opened
+his mind to me on the subject, and frankly
+avowed that the Government, having gone
+astray in its estimate of the Russian peasants
+who turned out to be revolutionary and
+anarchistic, was resolved to render them conservative
+by giving them land and an interest
+in the maintenance of law and order. That,
+he informed me, was the aim and origin of the
+agrarian law, and I expounded the theory, its<span class='pagenum'><a name="Page_95" id="Page_95">[95]</a></span>
+working and its anticipated consequences, in
+a series of articles published at the time.<a name="FNanchor_48_48" id="FNanchor_48_48"></a><a href="#Footnote_48_48" class="fnanchor">[48]</a></p>
+
+<p>Down to the year 1861 the Russian serfs
+had been mostly bound to the soil. They were
+emancipated by Alexander II., who ordered
+each landowner to make over to the serfs as
+much of his landed property as was being
+actually cultivated by these. Wherever this
+amount seemed too extensive for the support
+of a family it was whittled down and the
+residue left with the landlord. Each of the
+various lots thus expropriated was given not
+to an individual, nor to a family, but to the
+village community. Each field was cut into
+as many strips as there were farms, and each
+farm had the use of one. Every year the
+peasants had to pay a certain sum to the
+landlord until the land was wholly redeemed,
+and liability for these payments, like the
+possession of the land, was common. Hence
+the drunkards and the lazy paid little or
+nothing. It was the community which decided
+when the sowing and when the reaping should
+take place. The results of this system were
+baneful. And little by little the more enterprising
+peasants who had no motive to improve
+the value of the land which they were allowed
+for a time to cultivate, migrated to the towns
+and joined the growing army of working men.</p>
+
+<p>How long this state of things would have
+continued, if these immediate consequences had
+formed the only objection to it, is uncertain.
+But the Revolution of 1905-6 rendered it
+wholly untenable. The peasantry, on whom
+the Tsar and the Government counted for
+support, readily followed the lead of every
+anarchist and revolutionary who dangled the
+<span class='pagenum'><a name="Page_96" id="Page_96">[96]</a></span>promise of free land before their eyes, and
+gutted or burned the manors of the landlords.
+With no conception of the sacredness, nor,
+indeed, of the nature of property, they seized
+what they could by force, and were gravely
+disappointed when it was re-taken from them
+by law. Stolypin&#8217;s scheme, as he himself propounded
+it to me, was to enable the peasant
+to acquire the land he tilled, and not merely the
+scattered strips, but a compact farm capable
+of supporting himself and his family. And
+the system of collective liability for payments
+to the State was abolished, together with
+that of collective land-ownership.</p>
+
+<p>This was in truth a genial reform, and the
+business-like way in which it was carried out
+did credit to the late Minister and the people.
+Even now it is far from completed, but already
+there are about six million peasant farms cut
+out and allotted. In European Russia approximately
+as many more remain to be apportioned.
+The effects of this innovation were rapid and
+encouraging. The value of the land rose
+enormously in consequence of the intenser
+culture and the increased yield. Under the
+old arrangement Russia&#8217;s harvest of cereals
+was barely enough to feed the population
+inadequately, to supply seed and to enable a
+limited amount of produce to be exported.
+And as this limited amount was in practice
+often exceeded, the food supply of the peasantry
+was cut down in proportion. At present all
+this has changed for the better and changed to
+a greater extent than the outside world realizes.
+One of the consequences of this betterment,
+coupled with the decrease of drunkenness, is
+the greater purchasing power of the peasant
+and the growth of his requirements. So beneficial<span class='pagenum'><a name="Page_97" id="Page_97">[97]</a></span>
+and evident were the effects of this
+reform, that some patriotic Russians gladly
+saw their Government go to the very extreme
+of pliancy towards Germany rather than run
+the risk of a war and the danger of a break in
+this remarkable career of national regeneration.
+The process was noted and gauged by the Germans,
+who awakened to the fact that, in a few
+years more, the legend of Ilya Murometz would
+be exemplified in latter-day Russia, and a
+Colossus arise among the nations, which would
+hinder the tide of Teutondom from inundating
+Europe for all time.</p>
+
+<p>Other considerations of a more pressing
+character weighed with the statesmen of the
+Wilhelmstrasse, whose survey of the international
+situation was, at any rate, comprehensive.
+Renascent Russia, for example, was,
+as we saw, resolved to withdraw from the German
+Empire the one-sided advantages accorded
+by the Commercial Treaty. And as this question
+would in any case become acute within two
+years, that date was one of the time-limits of
+the European war, and I ventured to designate
+it as such to two of the most prominent statesmen
+of the Entente in the month of March
+1914. They both went so far as to say that
+my anticipation was extremely probable.<a name="FNanchor_49_49" id="FNanchor_49_49"></a><a href="#Footnote_49_49" class="fnanchor">[49]</a></p>
+
+<p>However this may be, Germany, who works
+out her destinies by preventive wars, and
+therefore never leaves the initiative to her
+enemies or rivals, precipitated a conflict which
+would, she believed, break out in any case
+within a couple of years, and for which no more
+auspicious moment could be chosen than the
+end of July 1914, after the Kiel Canal had
+<span class='pagenum'><a name="Page_98" id="Page_98">[98]</a></span>been made navigable for her largest battleships
+and the harvest ingathered.</p>
+
+<p>The year and month of the historic event
+had been fixed by her leaders a considerable
+time in advance, as we now know from incontrovertible
+evidence. So, too, had the
+choice of method, which was in harmony with
+the usual formula, that Germany is never
+the apparent aggressor, and that it is her
+enemies who must be made to appear the
+partisans of preventive war.</p>
+
+<p>The principle was thus laid down by Bismarck
+when he altered King Wilhelm&#8217;s historic
+telegram from Ems: &#8220;Success essentially
+depends upon the impression which the genesis
+of the war makes on ourselves and others. It
+is important that we should be the party
+attacked.&#8221;<a name="FNanchor_50_50" id="FNanchor_50_50"></a><a href="#Footnote_50_50" class="fnanchor">[50]</a></p>
+
+<p>Finally, the very day was determined&mdash;and
+almost on the very eve it was changed to the
+following day.</p>
+
+<p>In connection with the date and the method
+I have a curious tale to unfold which has never
+yet been recounted in western Europe. The
+incident in some respects bears an unmistakable
+resemblance to the story of Bismarck&#8217;s
+forgery of the Ems telegram and is well
+worth relating<a name="FNanchor_51_51" id="FNanchor_51_51"></a><a href="#Footnote_51_51" class="fnanchor">[51]</a> and remembering. The main
+features are as follows.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_46_46" id="Footnote_46_46"></a><a href="#FNanchor_46_46"><span class="label">[46]</span></a> Cf. <i>Hors du Joug allemand</i>, par L&eacute;on Daudet.</p></div>
+
+<div class="footnote"><p><a name="Footnote_47_47" id="Footnote_47_47"></a><a href="#FNanchor_47_47"><span class="label">[47]</span></a> The number for the entire year was 350.</p></div>
+
+<div class="footnote"><p><a name="Footnote_48_48" id="Footnote_48_48"></a><a href="#FNanchor_48_48"><span class="label">[48]</span></a> In the <i>Daily Telegraph</i>.</p></div>
+
+<div class="footnote"><p><a name="Footnote_49_49" id="Footnote_49_49"></a><a href="#FNanchor_49_49"><span class="label">[49]</span></a> Count Witte went farther and fixed the end of 1915
+as the date.</p></div>
+
+<div class="footnote"><p><a name="Footnote_50_50" id="Footnote_50_50"></a><a href="#FNanchor_50_50"><span class="label">[50]</span></a> <i>Bismarck: His Reflections and Reminiscences.</i></p></div>
+
+<div class="footnote"><p><a name="Footnote_51_51" id="Footnote_51_51"></a><a href="#FNanchor_51_51"><span class="label">[51]</span></a> My authority for the story is the principal observer,
+who was also an actor in a part of this subsidiary little
+drama: A.&nbsp;I. Markoff, who at that time represented the
+semi-official Russian Telegraph Agency, as its head
+correspondent in Berlin. He himself told me the story
+in Stockholm and authorized me to make it known.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_VIII" id="CHAPTER_VIII"></a>CHAPTER VIII<span class='pagenum'><a name="Page_99" id="Page_99">[99]</a></span></h2>
+
+<h3>A MACHIAVELLIAN TRICK BY WHICH
+RUSSIA&#8217;S HAND WAS FORCED</h3>
+
+
+<p><span class="smcap">The</span> world is now aware, although it can
+hardly be said to realize, how closely journalism
+approaches to being a recognized organ of the
+Imperial German Government. One of the
+most influential of the Berlin journals during
+the past ten years has been the <i>Lokal-Anzeiger</i>.
+This paper was founded by Herr Scherl, one
+of those clever enterprising business men who
+have been so numerous, active and successful
+in the Fatherland during the past quarter of
+a century. His journal was a purely business
+concern, carried on congruously with the law
+of supply and demand and keeping pace with
+the shifting requirements of the public and
+the strongest currents in the Government. It
+had long enjoyed the reputation of being a
+semi-official organ, and it was Herr Scherl&#8217;s
+ambition that it should be formally promoted
+to that rank. In February 1914 he sold the
+paper to a group of four persons, two of whom
+were Herr Schorlmeyer and Count T. Winckler,
+and all four were members of the political party
+which looked for light and leading to the Crown
+Prince and his military environment. Thus
+the <i>Lokal-Anzeiger</i> became the organ of the
+progressive military party, which was exerting
+itself to the utmost to force the pace of the
+Government towards the one consummation<span class='pagenum'><a name="Page_100" id="Page_100">[100]</a></span>
+from which the realization of Germany&#8217;s dream
+of world-power was confidently expected.
+Among the privileges accorded to the <i>Lokal-Anzeiger</i>
+from the date of its purchase for the
+behoof of the Crown Prince onward, was that
+of publishing official military news before all
+other papers, and not later even than the
+<i>Milit&auml;r-Wochenblatt</i>. Consequently, it thus
+became the most trustworthy source of military
+news in the Empire. This fact is worth bearing
+in mind, for the sake of the light which it
+diffuses on what follows.</p>
+
+<p>War being foreseen and arranged for, much
+careful thought was bestowed on the staging
+of the last act of the diplomatic drama in
+such a way as to create abroad an impression
+favourable to Germany. The scheme finally
+hit upon was simple. Russia was to be confronted
+with a dilemma which would force her
+into an attitude that would stir misgivings
+even in her friends and drive a wedge between
+her and her ally or else would involve her complete
+withdrawal from the Balkans. The
+latter alternative would have contented Germany
+for the moment, who would then have
+dispensed with a breach of the peace. For it
+would have enabled the two Central Empires
+to weld together the Balkan States and Turkey
+in a powerful federation under their joint
+protectorate, and would not only have simplified
+Germany&#8217;s remaining task, but have
+supplied her with adequate means of accomplishing
+it against Russia and France
+combined. Great Britain&#8217;s neutrality was
+postulated as a matter of course.</p>
+
+<p>Congruously with this plan, Russia was from
+the very outset declared to be the Power on
+which alone depended the outcome of the crisis.<span class='pagenum'><a name="Page_101" id="Page_101">[101]</a></span>
+Upon her decision hung peace and war. On
+July 24, telegraphing from Vienna, I announced
+this on the highest authority,<a name="FNanchor_52_52" id="FNanchor_52_52"></a><a href="#Footnote_52_52" class="fnanchor">[52]</a> with
+a degree of force and clearness which left no
+room for doubt as to the aims, intentions and
+preliminary accords of the two Central Empires.
+I stated that if in the course of the Austro-Serbian
+quarrel Russia were to mobilize,
+Germany would at once answer by general
+mobilization and war. For there will, then,
+I added, be no demobilization but an armed
+conflict. Before making that grave announcement,
+I had had convincing assurances and
+proofs that I was setting forth an absolute and
+irrevocable decision arrived at by the Central
+Empires on grounds wholly alien to the interests
+and issues which were then engaging the Austrian
+and Serbian Governments, and that a bellicose
+mood had gained a firm hold on the minds of
+the statesmen of Berlin and Vienna. Had that
+deliberate statement been subjected to adequate
+instead of the ordinary partial tests, the
+full significance of the crisis would have been
+realized by the Governments of the Entente.</p>
+
+<p>In the course of the negotiations which were
+then hastily improvised, Germany, who strove
+hard to gain credit for the r&ocirc;le of disinterested
+peacemaker, gradually revealed herself as the
+chief protagonist, whereas Austria was little
+more than a pawn in the game. Disguising
+her eagerness to provoke one of the two desired
+solutions, Russia&#8217;s abandonment of Serbia or
+her declaration of war, Germany succeeded in
+misleading the Governments of France and
+Britain as to her real intentions.</p>
+
+<p>While M. Poincar&eacute; was in the Russian
+<span class='pagenum'><a name="Page_102" id="Page_102">[102]</a></span>capital proposing toasts and drawing roseate
+forecasts of the future, the German Ambassador
+in Paris, von Sch&ouml;n, was constantly in attendance
+at the Quai d&#8217;Orsay, endeavouring to
+impress on the minds of the Acting Minister
+and the permanent officials there, the sincerity
+of the Kaiser&#8217;s eagerness for peace and the
+growing danger of Russia&#8217;s aggressiveness.
+&#8220;You and we,&#8221; he kept saying, &#8220;are the only
+Continental Governments which are aware of
+the magnitude of the issues and the imminence
+of the danger. You and we perceive the utter
+folly, the sheer criminality, of plunging Europe
+in the horrors of a sanguinary war for the sake
+of a petty state governed by regicides and
+assassins. What interests have you or we to
+risk the welfare of our respective nations for
+the behoof of the Serbian military party whose
+dreams of greatness border on mania? No, it
+behoves us both to do all that lies in us to calm
+Russia&#8217;s passion and induce her to listen to
+the promptings of reason and self-interest.
+You, with the powerful influence which your
+friendship and alliance impart to your counsels,
+and we by dint of example, ought to succeed in
+averting this awful peril.&#8221; In this tone, Herr
+von Sch&ouml;n delivered his daily exhortations and
+found some willing listeners. His specious
+pleading made a deep and favourable impression,
+and would perhaps have led to representations
+by the French Government calculated
+to wound the susceptibilities and perhaps
+estrange the sympathies of France&#8217;s ally at the
+most critical hour of the alliance, had it not
+been for the presence at the Foreign Office of
+a man whose eye was sure and whose measurement
+of forces, political and personal, was
+accurate. That man was M. Berthelot. Gauging<span class='pagenum'><a name="Page_103" id="Page_103">[103]</a></span>
+aright this insidious appeal to the centrifugal
+forces of the political mind, he turned
+a deaf ear to von Sch&ouml;n&#8217;s suasive efforts and
+kept the ship of state on its course, without
+swerving. In this way what seemed to the
+Berlin politicians the line of least resistance
+was adequately reinforced and a formidable,
+because crafty, attack repulsed.</p>
+
+<p>But besides attack, the Germans had also a
+problem of defence to engage their attention.
+And, curiously enough, it appears to have been
+particularly knotty in Austria. At that
+moment Count Berchtold was Minister of
+Foreign Affairs in name, but Count Tisza, the
+Hungarian Premier, was the man who thought,
+planned and acted for the Habsburg Monarchy.
+He it was who had drawn up the ultimatum
+to Serbia and made all requisite arrangements
+for co-operation with Germany. He was
+backed by the Chief of the General Staff,
+Konrad von Hoetzendorff, whose eagerness to
+provide an opportunity for displaying the
+martial qualities of the army was proverbial.
+But there were others in high places there who
+had no wish to see the Dual Monarchy drawn
+into a European war, and who would gladly
+have come to an agreement with Russia on
+the basis of such a compromise as Serbia&#8217;s reply
+to the ultimatum promised to afford. Whether,
+as seems very probable, this current bade fair
+to gain the upper hand, it is still too soon to
+determine with finality. There are certainly
+many indications that this was one of the
+dangers apprehended in Berlin. Russia&#8217;s
+moderation was another. And the interplay
+of the two might, had Germany held aloof,
+have led to a compromise. For this reason
+Germany did not stand aloof.<span class='pagenum'><a name="Page_104" id="Page_104">[104]</a></span></p>
+
+<p>The date fixed for the German mobilization
+was July 31. The evidence for this is to be
+found in the date printed on the official order
+which was posted up in the streets of Berlin,
+but was crossed out and replaced by the words
+&#8220;1st of August,&#8221; in writing, as there was no
+time to reprint the text. It had been expected
+in Berlin that Russia would have taken a
+decision by July 30, either mobilizing or
+knuckling down. Neither course, however,
+had been adopted. Thereupon Germany became
+nervous and went to work in the following
+way.</p>
+
+<p>On Thursday, July 30, at 2.25 p.m. a number
+of newspaper boys appeared in the streets of
+Berlin adjoining the Unter den Linden and
+called out lustily: &#8220;<i>Lokal-Anzeiger</i> Supplement.
+Grave News. Mobilization ordered
+throughout the Empire.&#8221; Windows were
+thrown wide open and stentorian voices called
+for the Supplement. The boys were surrounded
+by eager groups, who bought up the
+stock of papers and then eagerly discussed the
+event that was about to change and probably
+to end the lives of many of the readers. It does
+not appear that the Supplement was sold anywhere
+outside that circumscribed district.
+Now in that part of the town was situated
+Wolff&#8217;s Press Bureau, where the official representatives
+of Havas and the Russian Telegraphic
+Agency sat and worked.</p>
+
+<p>The correspondent of the latter agency,
+having read the announcement of the <i>Lokal-Anzeiger</i>,
+which was definitive and admitted
+of no doubt, at once telephoned the news to
+his Ambassador, M. Zverbeieff. During the
+conversation that ensued the correspondent
+was requested by the officials of the telephone<span class='pagenum'><a name="Page_105" id="Page_105">[105]</a></span>
+to speak in German, not in Russian. This was
+an unusual procedure. The Ambassador could
+hardly credit the tidings, so utterly were they
+at variance with the information which he
+possessed. He requested the correspondent
+to repeat the contents of the announcement,
+and then inquired: &#8220;Can I, in your opinion,
+telegraph it to the Foreign Office?&#8221; The
+answer being an emphatic affirmative, the
+Ambassador despatched a message in cypher
+to this effect to the Russian Minister of Foreign
+Affairs. For there could be no doubt about the
+accuracy of information thus deliberately given
+to the public by the journal which possessed
+a monopoly of military news and was the organ
+of the Crown Prince. The Russian correspondent
+also forwarded a telegram to the
+Telegraphic Agency in Petrograd communicating
+the fateful tidings.</p>
+
+<p>Within half an hour the German Ministry
+of Foreign Affairs telephoned to Wolff&#8217;s Bureau
+to the effect that the report about the mobilization
+order was not in harmony with fact, and
+it also summoned the <i>Lokal-Anzeiger</i> to issue
+a contradiction of the news on its own account.
+This was duly done, and so rapidly that the
+second Supplement was issued at about 3 p.m.
+The explanation given by the newspaper staff
+was that they were expecting an order for
+general mobilization and had prepared a special
+Supplement announcing it. This Supplement
+was unfortunately left where the vendors saw
+it, and thinking that it was meant for circulation
+seized on all the copies they could find,
+rushed into the streets and sold them. On
+many grounds, however, this account is unsatisfactory.
+Copies of a newspaper supplement
+containing such momentous news are not<span class='pagenum'><a name="Page_106" id="Page_106">[106]</a></span>
+usually left where they can be found, removed
+and sold by mere street vendors. Moreover,
+the date, July 30, was printed on the supplement,
+so that it was evidently meant to be
+issued, as a matter of fact it was circulated only
+in a very limited number of copies and in the
+streets around Wolff&#8217;s Bureau, where it was
+certain to produce the desired effect.</p>
+
+<p>Half an hour later the correspondent of the
+Russian Agency received a request to call at
+the General Telegraph Office at once. On his
+arrival he was asked to withdraw his two
+telegrams which the Censor refused to transmit.
+To his plea that so far as he knew there was
+no censorship in Germany he received the reply
+that it had just been instituted and now declined
+to pass his telegrams. &#8220;In that case,&#8221;
+he said, &#8220;my consent is of no importance,
+seeing that the matter is already decided.&#8221;
+Finally, he asked to have his messages returned
+to him, but they would consent only to his
+reading, not to his retaining, them.</p>
+
+<p>The Russian Ambassador also despatched
+an urgent <i>message en clair</i> to his Government
+embodying the contradiction communicated
+by the Wilhelmstrasse.</p>
+
+<p>Now, the significant circumstance is that
+the Ambassador&#8217;s first telegram stating that
+general mobilization had been officially ordered
+throughout the German Empire was forwarded
+with speed and accuracy and reached the
+Russian Foreign Minister without delay. And
+this news was communicated to the Tsar, who
+by way of counter-measure issued the order
+to mobilize the forces of the Russian Empire.
+But the Ambassador&#8217;s second telegram was
+held back several hours and did not reach its
+destination until the mischief was irremediable.<span class='pagenum'><a name="Page_107" id="Page_107">[107]</a></span>
+That curious incident is of a piece with the
+Bismarck&#8217;s Ems telegram.</p>
+
+<p>It is by such devices that the German Government
+is wont to launch into war. The
+mentality whence they spring cannot be discarded
+in a year or a generation, nor will any
+Peace Treaty, however ingeniously worded,
+prevent recourse being had to them in the
+future. For this, among other reasons, more
+trustworthy guarantees than scraps of paper
+must be sought and found.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_52_52" id="Footnote_52_52"></a><a href="#FNanchor_52_52"><span class="label">[52]</span></a> On 24th July I received this official information. It
+was published on Monday, 27th.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_IX" id="CHAPTER_IX"></a>CHAPTER IX<span class='pagenum'><a name="Page_108" id="Page_108">[108]</a></span></h2>
+
+<h3>GERMAN PROPAGANDA IN SCANDINAVIA</h3>
+
+
+<p><span class="smcap">The</span> same breadth of vision and efficacy of
+treatment were similarly rewarded in the
+Scandinavian countries, where German propaganda,
+ever resourceful and many-sided, was
+facilitated by kinship of race, language, folklore
+and literature. Of the three kingdoms
+Sweden, the strongest, was also the most impressible
+owing to the further bond of fellowship
+supplied by a common object of distrust&mdash;the
+Russian empire. Suspicion and dislike
+of the Tsardom had been long and successfully
+inculcated by the German Press, from which
+Sweden received her supply of daily news, and
+also, as is usual in such cases, by prominent
+natives who, in obedience to motives to which
+history is indifferent, employed their influence
+to spread suspicion. Sven Hedin rendered
+invaluable services in this way to the Kaiser
+and the Fatherland, throwing the glamour of
+his name over a movement of which the ultimate
+tendency was national suicide. Under
+the auspices of a prussophile minority of
+Swedish politicians, a few of whom were
+supposed to favour the establishment of an
+absolute monarchy like that of Prussia, a
+clever campaign against the Tsardom was
+inaugurated. Falsehoods were concocted,
+imaginary dangers conjured up and described
+as real, and sinister Russian designs against<span class='pagenum'><a name="Page_109" id="Page_109">[109]</a></span>
+the independence of Sweden and Norway were
+invoked as motives for energetic action. In
+vain the Tsar&#8217;s Government protested its
+friendship for Sweden and disproved the poisonous
+calumnies circulated by the Germans.</p>
+
+<p>In the discovery and arrest of a number
+of Russian military spies, who were as active
+in Sweden as in other lands, and whose relations
+with the Tsar&#8217;s Military Attach&eacute; in
+Stockholm were said to be proven, these
+agitators found the few solid facts that served
+them as the groundwork of their fabric of
+suspicion and calumny.</p>
+
+<p>The results of this propaganda answered
+the expectations of its German and Swedish
+organizers. Despite the quieting assurances
+given by the ex-Premier, the late Karl Staaff
+and M. Branting, Sweden&#8217;s two foremost statesmen,
+the present population was thoroughly
+alarmed. They spontaneously taxed themselves
+for new warships, insisted that a non-recurring
+war-tax identical with that of
+Germany should be imposed by the State,
+and many called for the immediate adhesion
+of Sweden to the Triple Alliance.</p>
+
+<p>One of the fixed points of Russia&#8217;s policy,
+the Swedish agitators told their fellow-countrymen,
+is the acquisition of an ice-free
+port which can be utilized in winter. The
+Baltic ports do not answer this requirement,
+not only because they freeze in the cold
+season, but also, and especially, because the
+narrow Sound can be easily blocked by a
+hostile Power and Russia&#8217;s ships bottled up
+in the Baltic. Hence the persevering efforts
+she made at first to get possession of the
+Dardanelles and obtain free access to the
+Mediterranean in war-time. More than once<span class='pagenum'><a name="Page_110" id="Page_110">[110]</a></span>
+she was on the very point of achieving success
+there, but lack of enterprise on the part of
+her statesmen or a sudden adverse change in
+the political conjuncture foiled this scheme,
+the realization of which was put off indefinitely.
+The Persian Gulf was the next
+object of her designs, but there, too, she
+encountered a diplomatic defeat. The third
+goal lay in the Far East, where a new Russian
+empire governed by a Viceroy and possessed
+of a promising capital, was founded with
+every prospect of good fortune. But here,
+again, defective statesmanship was followed
+by failure, and the campaign against Japan
+closed the Far Eastern chapter for a long
+while. Whither, it was asked, can Russia
+turn now? Recent events, M. Sven Hedin
+assured his countrymen, have already answered
+the query. Northwards. The great
+Slav Empire covets an ice-free harbour in
+Norway, and until this war broke out was
+busily engaged in compassing its end. At
+any future moment it may again start off
+on this enterprise. It is the duty of patriotic
+Swedes to thwart this nefarious project.</p>
+
+<p>A Norwegian port, it is freely admitted,
+would not fulfil all Russia&#8217;s requirements.
+It would, for instance, leave much to be desired
+from an economic point of view. The
+resources of the hinterland would be too
+scanty. The cost of transport would be too
+heavy. But strategically it would answer
+the purpose admirably. Now this conquest
+would not be achieved without invading and
+annexing a portion of North Sweden as well.
+For it would be impossible to keep and utilize
+such an acquisition without a hinterland containing
+factories, workshops, wharves, docks,<span class='pagenum'><a name="Page_111" id="Page_111">[111]</a></span>
+stores and a fairly numerous population which,
+in turn, would require corn, cattle, timber,
+etc. Is it credible, asked M. Sven Hedin,
+that the southern boundary of this back-land
+could be drawn further northwards than to
+the north of &Aring;ngermanland, J&auml;mtland and
+Drontheim? At bottom, then, it is the annexation
+of a vast slice of Sweden proper that
+Russia has in view. Perhaps the first route of
+the Russian army would lie on the eastern bank
+of the rivers Torne-&auml;lf and Muonio-&auml;lf and
+lead to the Lyngen Fjord. How long would
+it stop there? Step by step it would move
+along the coast southwards to Drontheim.
+Then Norrland would be surrounded on three
+sides by Russians. &#8220;Later on they would
+tighten the noose and strangle our country.
+Are we to remain inactive during the course
+of events?... The Swede in general is aware
+of the existence of this danger and <i>knows</i> that
+it may come upon him at any moment as a
+reality.&#8221;</p>
+
+<p>In verity, no normal individual, acquainted
+with the political condition of Europe, can
+be said to know that the peril of a Russian
+invasion of Sweden exists or existed of late
+years. As a matter of fact, he knows that
+the contradictory proposition is true.</p>
+
+<p>The symptoms of Russia&#8217;s alleged designs
+on Norway and Sweden are as fantastic as
+the sweeping statements by which they are
+heralded. One of them was the order issued
+by the Russian Government to build a railway
+bridge over the Neva in Petrograd in
+order to link the Finnish railway with all
+the other stations which are situated on the
+opposite bank of that river, as though the
+Russian capital should be the only one in<span class='pagenum'><a name="Page_112" id="Page_112">[112]</a></span>
+Europe without a girdle railway and Finland
+the sole section of the empire cut off from
+all the rest! Another of these &#8220;infallible
+tokens&#8221; of Russia&#8217;s machinations were the
+measures adopted to render the Finnish railways,
+and, in particular, the Oesterbotten
+line, capable of transporting Russian military
+trains, by enlarging the stations, strengthening
+the bridges and rails, and other kindred expedients.
+Further, a number of new lines
+were considered necessary from a strategic
+point of view, one connecting Petersburg
+with Wasa via Hiitola, Nyslott and Iyv&auml;skyl&auml;.
+Barracks were built or ordered in
+Fredrikshamn, Kouvala, Lahtis and other
+Finnish towns, or railway centres. All these
+precautions, however, are not only explicable
+without the theory that Sweden and Norway
+are to be invaded, but they ought to have
+been adopted long ago, say unprejudiced
+military authorities, in the interests of Russia&#8217;s
+home defence. Yet M. Sven Hedin concluded
+his argument with the words: &#8220;When it has
+been further established that the transport
+of Russian troops to Finland has greatly increased&mdash;and
+it is affirmed that there are
+already about 85,000 soldiers there&mdash;and when
+we also bear in mind that for many years past
+Sweden and likewise Norway have been visited
+by so-called knife-grinders<a name="FNanchor_53_53" id="FNanchor_53_53"></a><a href="#Footnote_53_53" class="fnanchor">[53]</a> from Russia, <i>no
+doubt can remain. Russia is making ready for
+an onslaught on the Northern kingdoms.</i>&#8221;</p>
+
+<p>But long before Sven Hedin and his friends
+<span class='pagenum'><a name="Page_113" id="Page_113">[113]</a></span>had begun their campaign, the ground had been
+prepared from Berlin, the work of interpenetration
+had made great headway, and Germany
+was regarded by Sweden as an elder sister. For
+the economic invasion preceded the political.
+Statistics of foreign trade reveal the Teuton
+as the exporter to that country of over forty
+per cent. of the entire quantity of merchandise
+entering from abroad.<a name="FNanchor_54_54" id="FNanchor_54_54"></a><a href="#Footnote_54_54" class="fnanchor">[54]</a></p>
+
+<p>Switzerland, whose position as a neutral
+oasis encircled by belligerents is fraught with
+difficulty, has long been treated as hardly
+more than an adjunct of the German empire,
+and many of the best Swiss writers, far from
+resenting this affront, welcome it as a compliment.
+Just as Americans occasionally write
+about &#8220;<i>the</i> King&#8221; when alluding to the
+British Sovereign, so the Swiss often fall into
+the way of describing the operations of &#8220;our
+army,&#8221; &#8220;our cause,&#8221; when alluding to the
+Kaiser&#8217;s troops and German designs.</p>
+
+<p>Several times during the progress of the
+war the conduct of Swiss organizations and
+individuals towards the two groups of belligerents
+aroused grounded misgivings in the
+minds of the French, British and Italians
+who asked only for the observance of strict
+neutrality. One remarkable instance of the
+pro-German leanings complained of was the
+absolute and persistent refusal of the Swiss
+to submit to reasonable restrictions respecting
+the sale to Germany and Austria of goods
+exported to Switzerland by the allied countries.
+This refusal was all the more significant that
+it came after the secret acquiescence in the
+<span class='pagenum'><a name="Page_114" id="Page_114">[114]</a></span>more stringent limitations which had been
+imposed on them by the Germans. Thus two
+wholly different sets of weights and measures
+would appear to have been employed by the
+spokesmen of the little Republic in their
+dealings with the two groups of warring
+Powers. And it was always Germany who
+obtained preferential treatment.</p>
+
+<p>This bias springs from causes which are
+stable and deep-rooted. The bulk of the
+Swiss people are frankly pro-German in their
+sympathies and their military chiefs side with
+the Teuton on most of those questions of
+principle which form the line of cleavage
+between him and the allied peoples. That
+the end justifies the means, is one of those
+axioms which the authorities of the Swiss
+Republic appear to have endorsed without
+hesitation. In the month of March 1916
+two Swiss Colonels, Egli and de Wattenwyl,
+were tried on two charges which, if proved,
+would, it was somewhat hastily assumed,
+bring down severe retribution on their heads.
+It was alleged that they had communicated
+to the German military authorities important
+telegraphic messages intercepted on their way
+from the Allies. But the evidence adduced
+was deemed insufficient to bear out this indictment.
+The other charge was that they
+had regularly handed on the confidential
+bulletin of the Swiss General Staff to the
+military <i>attach&eacute;s</i> of the Central Empires in
+Berne and only to them. And the count was
+proven to the satisfaction of the tribunal.
+Now this act admittedly constituted a breach
+of neutrality. Yet the Chief of the Swiss
+General Staff, Colonel Sprecher, defended the
+accused men on the singular ground that their<span class='pagenum'><a name="Page_115" id="Page_115">[115]</a></span>
+action&mdash;that is to say, a grave breach of
+neutrality to the detriment of the allied
+nations&mdash;was excusable because of the end in
+view, which was to gain in exchange useful
+information for the Intelligence Department
+of the War Office. This plea is based on the
+German military principle that the means are
+hallowed by the end.</p>
+
+<p>It is some satisfaction, however, to note that
+in the Romande cantons of the Republic a
+series of protests have been made against the
+spirit of Prussian military amorality which,
+as the pleadings and the acquittal of the
+two officers showed, permeates the military
+circles of that little State whose very existence
+depends on its neutrality.</p>
+
+<p>Kultur is widely diffused throughout the
+German-speaking cantons of Switzerland. The
+German Universities of the Republic are regarded
+and treated as Universities of the
+Fatherland and their professors interchanged.
+And when we further reflect that Germany
+exports to Switzerland goods to the value of
+680,870,000 francs as against 347,985,000 exported
+by France, who stands second on the
+list, that German Universities and those of
+German Switzerland elect their professors indiscriminately
+from among candidates of both
+countries, and that German is spoken in
+Switzerland by more than 2,500,000 inhabitants
+as against 796,244 who use French&mdash;one cannot
+affect surprise at much that called for comment
+before the war and provoked mild deprecation
+throughout its first phase.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_53_53" id="Footnote_53_53"></a><a href="#FNanchor_53_53"><span class="label">[53]</span></a> Several Russian &#8220;knife-grinders&#8221; are alleged to
+have been discovered in various parts of Sweden, moving
+from place to place, with maps of various districts and
+a good deal of money in their pockets. The Swedes
+declare that they are Russian spies.</p></div>
+
+<div class="footnote"><p><a name="Footnote_54_54" id="Footnote_54_54"></a><a href="#FNanchor_54_54"><span class="label">[54]</span></a> The value of wares she sold to Sweden in 1911 is
+computed at 275,423,000 krons as against 170,999,000
+krons&#8217; worth purchased from Great Britain.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_X" id="CHAPTER_X"></a>CHAPTER X<span class='pagenum'><a name="Page_116" id="Page_116">[116]</a></span></h2>
+
+<h3>GERMANY AND THE BALKANS</h3>
+
+
+<p><span class="smcap">For</span> two decades the Balkan States and
+Turkey had been objects of Germany&#8217;s especial
+solicitude. And with reason. For the part
+allotted to them in the plan for teutonizing
+Europe was of the utmost moment. The high
+road from Berlin to the Near East passed
+through Budapest and the Balkans. And
+Austria, as the pioneer of German Kultur
+there, kept her gaze fixed and her efforts
+concentrated on Salonica. Bulgaria&#8217;s goodwill
+had been acquired through Ferdinand of
+Coburg, himself an Austro-Hungarian officer,
+and was maintained by Austria&#8217;s energetic
+championship of Bulgaria&#8217;s claims against
+Serbia. Counts Aehrenthal and Berchtold
+destined Bulgaria and Roumania to coalesce
+and form the nucleus of a permanent Balkan
+confederation to be patronized and protected
+by the Habsburgs.</p>
+
+<p>But circumstance thwarted the design.
+And after the Balkan League had done its
+work and Turkey&#8217;s grasp on Europe had
+relaxed, Bulgaria, in the person of Ferdinand,
+was brought to undo what without her lead
+could not then have been achieved, to fall foul
+of her allies and smash the coalition.</p>
+
+<p>This incitement was unwelcome to many of
+Bulgaria&#8217;s trusty leaders, who, much though
+they might grudge Serbia&#8217;s successes and<span class='pagenum'><a name="Page_117" id="Page_117">[117]</a></span>
+rapid growth, were of opinion that Bulgaria
+would be ill-advised to break her connection
+with the Slav cause. But the leaders unexpectedly
+found that they were being led, and
+led away from the natural friends of Bulgaria
+by the German prince who had caused the
+death of Bulgaria&#8217;s greatest statesman and
+made no secret of his contempt for the Bulgarian
+people generally. Ferdinand, assuming
+autocratic power, rendered this inestimable
+service to the Teutons and fastened the Bulgarian
+State to the Central Empires.</p>
+
+<p>At some time before the outbreak of the
+war Ferdinand had struck up a compact with
+the Central Empires which bound Bulgaria
+to follow their lead. This he did at his own
+risk and on his own responsibility. I had
+grounds for believing in the existence of some
+such covenant a considerable time before the
+storm burst, but I had no tangible proof of
+it. In July 1914, however, I knew it for
+certain, but without having ascertained the
+particulars. When and by whom it had been
+signed, and what were the main stipulations
+agreed upon, still remained in the domain of
+speculation. I discovered, however, that Bulgaria&#8217;s
+hands were tied; that her mourning
+for lost Macedonia would not last long; that
+the aims she pursued were the policy of the
+outlet on four seas, and the territorial separation
+of Greece and Serbia; that her r&ocirc;le in
+the Peninsula was to be predominant; that
+she had been chosen to supplant Serbia as the
+leading Balkan State, and would pay tribute
+to the Central Empires in the shape of docility
+to and ready co-operation with them; and
+that Roumania would, if she continued to
+find favour in the eyes of the statesmen of<span class='pagenum'><a name="Page_118" id="Page_118">[118]</a></span>
+Vienna and Berlin, be associated with Bulgaria,
+but without attaining her rank or
+acquiring her power.</p>
+
+<p>It has since been positively asserted by
+M. Filipescu, an ex-Cabinet Minister of
+Roumania, that &#8220;towards the mid-August
+1914, when the treaty was concluded which
+bound Bulgaria to Germany, the Roumanian
+Minister in Berlin, M. Beldiman, had cognizance
+of this treaty and apprised the
+Roumanian Government of the fact.&#8221;<a name="FNanchor_55_55" id="FNanchor_55_55"></a><a href="#Footnote_55_55" class="fnanchor">[55]</a>
+M. Take Jonescu, the illustrious Roumanian
+statesman, has assigned a different date to
+the conclusion of the agreement, but confirmed
+the fact of its existence in the course
+of a conversation which has also been made
+public.[2] He stated that the King of Bulgaria,
+&#8220;who is swayed more by personal rancour
+than by the interests of his people, imposed
+his policy on them. He allied himself with
+the Germans as long ago as Spring 1914. The
+treaty was taken from Sofia to Berlin by an
+official of the Deutsche Bank.&#8221;<a name="FNanchor_56_56" id="FNanchor_56_56"></a><a href="#Footnote_56_56" class="fnanchor">[56]</a></p>
+
+<p>Whatever doubts may prevail respecting
+the exact date, the main fact is established&mdash;Ferdinand
+bound Bulgaria to the Central
+Empires.</p>
+
+<p>Personal interest as well as State reasons
+determined him to place himself under
+Austro-German protection. It was at Austria&#8217;s
+instigation that he had spurned the
+advice of his official advisers, treacherously
+attacked his allies and brought down defeat
+upon his armies and discredit upon himself.
+But the Habsburg Government had undertaken
+<span class='pagenum'><a name="Page_119" id="Page_119">[119]</a></span>to see him through the ordeal to which
+he was then subjected by his own people.
+The Treaty of Bucharest, which deprived
+Bulgaria of Kavalla and Salonica, left the
+wound to fester and Austro-Bulgarian friendship
+to harden into a definite alliance. None
+the less Bulgaria&#8217;s friendship with the Central
+Empires was not openly manifested until the
+financial transaction was concluded between
+them which made Bulgaria the creditor of
+Austria-Hungary shortly before the outbreak
+of the war.</p>
+
+<p>Economically, Bulgaria, like her neighbours,
+had long been a tributary of the Central
+Empires. German and Austrian interests
+were cunningly intertwined with Bulgarian
+in almost every branch of national life. The
+banks, financial houses, export firms, are all
+under Austrian or German control. In the
+army, too, despite its Russian training and
+traditions, there was a party of officers whose
+admiration for the war-lord ran away with
+their discretion. And the celebrated loan of
+half a milliard francs, which Austrian financiers
+undertook to advance to Bulgaria&mdash;on outrageously
+oppressive conditions&mdash;set the crown
+to the work of many years. This transaction
+was not intended by either party to be purely
+financial. Its political bearings were evidenced
+by the circumstances in which it was negotiated
+and the terms on which it was concluded.
+But the economic concessions insisted upon by
+Austria and conceded by Bulgaria constituted
+of themselves a convincing proof of the design
+to reduce the latter country to the position
+of one of the dependents of the Central
+Empires.</p>
+
+<p>Of all the recognized agencies for penetrating<span class='pagenum'><a name="Page_120" id="Page_120">[120]</a></span>
+international opinion, swaying international
+sentiment, and influencing international
+action, one of the most abiding and decisive
+is that of royal courts. Yet its value was not
+merely underrated by Britain, France and
+Russia, but was completely ignored. And
+Germany, whose diplomacy, in spite of its
+clumsiness and brutality, was far-sighted and
+assiduous in watching for and utilizing every
+opportunity of smoothing the way for the
+execution of the grandiose plan, purveyed
+almost every court and throne in Europe with
+kings, queens and princesses of its own. And
+those who were neither Germans by birth nor
+connected with Germans by marriage were
+influenced by education, by military training,
+or at least by a system of atmosphering which,
+with certain striking examples before one, could
+be reduced to a few clear rules.</p>
+
+<p>Roumania at the opening of the war was
+governed by a Hohenzollern prince who had
+linked the destinies of his country with those
+of Austria-Hungary as far back as the year
+1880, and, having renewed the secret convention
+in 1913, which for him was no mere scrap
+of paper, convoked a crown council in August
+1914 and proposed that Roumania should
+redeem his pledge and take the field against
+the enemies of the Central Empires. But
+King Carol&#8217;s military ardour was not merely
+damped but choked by a recalcitrant cabinet.</p>
+
+<p>That monarch&#8217;s influence as a pioneer of
+Teuton Kultur in Roumania can hardly be
+exaggerated. An upright ruler, who discharged
+his duties conscientiously, the King reckoned
+among these the dissipation of native gloom
+by means of German light. And during his
+long reign he succeeded in spreading a network<span class='pagenum'><a name="Page_121" id="Page_121">[121]</a></span>
+of German economic interests throughout
+his realm which, while raising the material
+level of the nation, has reduced it to the
+position of a German tributary. It would be
+unjust to make this a subject of reproach to
+the monarch who acted up to his lights, but
+it would be a mistake to belittle the vast
+services thus rendered by a single individual
+to the Teuton race, or to overlook the degree
+of responsibility that attaches to the nations
+now banded together, and in especial to Russia,
+for the sequence of untoward phenomena
+which, now that they are not only seen, but
+felt, and felt painfully, we na&iuml;vely deplore.</p>
+
+<p>King Carol&#8217;s successor is also a Hohenzollern
+prince whose attachment to his Prussian
+fatherland is noted, whose relations with his
+kinsman, the Kaiser, are cordial, but whose
+devotion to his subjects is paramount. More
+than once since the opening of the campaign
+Roumania was believed to be on the point
+of exchanging neutrality for belligerency, but,
+on grounds which it would be unfruitful to
+discuss, she abandoned the intention, if she
+ever harboured it. As matters now are, the
+Allies are congratulating themselves on the
+circumstance that she is still neutral.</p>
+
+<p>The Queen of Sweden is a daughter of the
+most imperialistic of German princes, the late
+Grand Duke of Baden and a cousin of the
+Kaiser, to whom she is attached by bonds of
+sympathy and admiration. And her consort
+the King, fascinated by the methods, the
+strivings, the achievements of the Hohenzollerns,
+has made more than one attempt to
+imitate them, but, owing partly to the opposition
+of the late Herr Staaff, and largely to
+his own mental and moral equipment, which<span class='pagenum'><a name="Page_122" id="Page_122">[122]</a></span>
+point in a different direction, he felt obliged
+to desist.</p>
+
+<p>The accomplished Queen of the Belgians
+and the Tsaritsa of Russia are also both German
+princesses, but they form exceptions to
+the rule that whichever of any two spouses is
+German exercises an overmastering influence
+on the other. The Prince Consort of Holland,
+the Duke of Mecklenburg, is a German of the
+Germans, but through constitutional channels
+he can wield no political influence, and the
+attitude of the Dutch Government towards
+the Allies has been clear enough to need no
+elaborate exegesis.</p>
+
+<p>The King of Bulgaria is an ex-officer of the
+Austro-Hungarian army, whose pro-German
+work and its far-resonant results will probably
+never be wholly forgotten by his own German
+people. For, as we saw, it has rendered them
+services that cannot be repaid. Not, indeed,
+that he had any coherent plan in his mind&#8217;s
+eye, or was guided by any deep-seated moral
+principles. Politics were for him the art of
+the possible enlarged by the negation of the
+ethical. Ferdinand may, therefore, be described
+as an opportunist, who in current
+politics contented himself with following his
+nose. Of treaties and conventions he had
+signed a goodly number and broken some.
+Thus with Russia he had a secret agreement of
+a military nature, and also with Russia&#8217;s rival,
+Austria-Hungary. With Serbia he had one
+set of stipulations, with Turkey another, but,
+shifty customer that he is, he had set himself
+above them all and was ever ready to follow the
+lead of personal interest. What the historian
+will accentuate is the deftness with which German
+diplomacy, for all its alleged clumsiness,<span class='pagenum'><a name="Page_123" id="Page_123">[123]</a></span>
+contrived to use his defects and his qualities
+alike for the furtherance of its own designs.</p>
+
+<p>Love of country, like religious faith, is a
+respectable mainspring of action. But Ferdinand
+has been credited with neither.
+Whithersoever he moves one looks in vain
+for the guiding light of large ideas. Deeper
+than conscious volition lies the stored-up
+instinct of barren pettifogging egotism to
+which a fine moral atmosphere is deadly.
+Insincerity is second nature to him. He
+once boasted in my presence that he was a
+born actor, and it is fair to say that he played
+his r&ocirc;les&mdash;repellent for the most part&mdash;as
+behoves a mummer. The astonishing thing
+is that he should have got influential politicians
+to take him seriously. While assuring
+the French deputy, M. Joseph Reinach, of his
+attachment to France and signing himself the
+European, he was writing to Professor Walter
+of Budapest offering &#8220;all the sympathies of
+the Bulgarian nation&#8221; to Hungary.<a name="FNanchor_57_57" id="FNanchor_57_57"></a><a href="#Footnote_57_57" class="fnanchor">[57]</a> I have
+read ecstatic communications of his penned
+in hours of exaltation, when visions of Constantine&#8217;s
+city, the mosque of Aya Sofia
+towering aloft, warmed his fancy and the
+sheen of Byzantine brocades and the quaint
+paraphernalia of bygone days inspired his
+apocalyptic words. His language in those
+telegrams and letters was highfaluting and
+bombastic. And I read other communications
+of his&mdash;mostly abject appeals for help&mdash;devoid
+of dignity and manliness, when the gloom of
+dissipated illusions was made unbearable by
+fear of dethronement and death. And the
+figure cut by the Tsarlet, who addressed those
+<span class='pagenum'><a name="Page_124" id="Page_124">[124]</a></span>humble prayers&mdash;mostly to influential ladies&mdash;was
+despicable.</p>
+
+<p>Ferdinand was swayed by ingrained hatred
+of Russia which was almost as potent as his
+contempt for the Bulgars. And he never
+made a secret of either. For the Turkish
+pasha who was responsible for the Bulgarian
+atrocities, which aroused Gladstone&#8217;s indignation,
+Ferdinand&#8217;s professed admiration took
+the form of a subscription.<a name="FNanchor_58_58" id="FNanchor_58_58"></a><a href="#Footnote_58_58" class="fnanchor">[58]</a> But high above
+all motives that turned upon his feelings
+towards others were those that centred
+entirely in himself.</p>
+
+<p>And he had cogent personal motives for
+cultivating cordial relations with the country
+of his birth. From the Austrian Government
+he expected to be saved from the necessity of
+abdicating and expiating his unwisdom. It
+was his inordinate ambition and vanity which
+had brought the Bulgarian nation to the very
+brink of ruin. He it was who had insisted on
+breaking off negotiations with Turkey during
+the London Conference and recommencing
+hostilities. In vain the Chief of the General
+Staff, Fitcheff,<a name="FNanchor_59_59" id="FNanchor_59_59"></a><a href="#Footnote_59_59" class="fnanchor">[59]</a> besought him to conclude
+peace. The importunate military adviser was
+<span class='pagenum'><a name="Page_125" id="Page_125">[125]</a></span>suddenly relieved of his duties and the second
+phase of the Balkan war begun. It was
+Ferdinand, too, who thwarted Russia&#8217;s peace-making
+efforts, refused to send delegates to
+the tribunal of arbitration in Petrograd, and
+ordered the treacherous attack on the Serbs
+and the Greeks which culminated in Bulgaria&#8217;s
+forfeiting some of the principal fruits of her
+heroic military exertions.</p>
+
+<p>For this series of baleful blunders&mdash;to the
+Bulgars they were nothing more&mdash;Ferdinand
+was known to be alone responsible. He had
+assumed the sole responsibility, and he had
+hoped to gather in the lion&#8217;s share of the
+spoils. And as soon as responsibility seemed
+likely to involve punishment, his Ministers
+withdrew and exposed his person to the
+nation. When, after the end of the second
+Balkan war, General Savoff repaired to Constantinople
+to better the relations between
+Bulgaria and Turkey, he invited a number of
+French and British journalists who happened
+to be just then in the capital, and he addressed
+them as follows: &#8220;It has come to my ears that
+in Sofia I am accused of being the person who
+issued the order to our army to attack our
+Allies and that I am to be tried for it. They
+will never dare to prosecute me. For I have
+here&mdash;&#8221; and he thumped his side pocket as
+he spoke&mdash;&#8220;the order issued by the real author
+of the war and in his own handwriting. He
+commanded me orally to do this, but I replied
+that I must have a written order from the
+Government. Thereupon he shouted: &#8216;I am
+the supreme chief of the army and am about
+to give you the order in writing,&#8217; indited the
+behest and handed it to me. That is why he
+cannot prosecute me. I will show him up.<span class='pagenum'><a name="Page_126" id="Page_126">[126]</a></span>
+Already now I tell you, so that all may hear,
+<i>C&#8217;est un coquin, un mis&eacute;rable!</i>&#8221;<a name="FNanchor_60_60" id="FNanchor_60_60"></a><a href="#Footnote_60_60" class="fnanchor">[60]</a></p>
+
+<p>That was General Savoff&#8217;s summing-up of
+his august sovereign. And his forecast proved
+correct. Ferdinand did not attempt to lay
+the blame on him, still less to have an indictment
+filed against him. On the contrary, he
+kissed Savoff on his return to Sofia and later
+on made him his adjutant-general. Ferdinand&#8217;s
+responsibility being established, his abdication
+was clamoured for by public opinion.
+His own estimate of his plight was impregnated
+with despair. He despatched the abject
+telegrams mentioned above to his influential
+friends. It was then that he received a
+letter signed by the three chiefs of the
+Liberal groups of the old Stambulovist Party&mdash;Radoslavoff,
+Ghennadieff and Tontcheff&mdash;and
+written, it has been alleged, after consultation
+between all four parties, exhorting
+him to reverse the national policy and link
+Bulgaria&#8217;s fate with that of Austria. The
+Coburg prince publicly welcomed them, dismissed
+the Daneff Cabinet, handed the reins
+of power to the three self-constituted saviours
+of the dynasty and country, and the Treaty of
+Bucharest was signed in an offhand manner.
+The keynote of the policy of the new Cabinet
+was hatred of Russia, who was held up to
+public opprobrium by the press of Sofia as
+the mischief-maker who had betrayed Bulgaria;
+and as the nation thirsted for a culprit on whom
+to vent its rage, the legend obtained a certain
+vogue. At the same time emphatic assurances
+were given by Count Berchtold that Austria
+would upset the Treaty of Bucharest, break
+<span class='pagenum'><a name="Page_127" id="Page_127">[127]</a></span>down the Serbian and Greek barriers that stood
+between Bulgaria and her natural boundaries,
+and establish Ferdinand and his dynasty more
+firmly on the throne. This prospect heartened
+the King and stimulated his fellow-workers.</p>
+
+<p>But perhaps the most decisive factor in
+Bulgaria&#8217;s attitude towards the Central Powers
+has been that of Russia towards Bulgaria.
+The Tsardom cherishes tender feelings towards
+the political entity which it called into being.
+Bulgaria is the creature of the great Slav
+people which shed its blood and spent its
+treasure in giving it life and viability, and has
+ever since felt bound to watch over its destinies,
+forgive its foolish freaks, and contribute to its
+political and material well-being. Congruously
+with this frame of mind, Russia has not the
+heart to deal with Bulgaria as she would deal
+under similar provocation with Roumania or
+Greece. Like the baby cripple, or the profligate
+son, this wayward little nation ever
+remains the spoiled child. Hence, do what
+harm she may to Russia, she is not merely
+immune from the natural consequences of her
+unfriendly acts, but certain to reap fruits
+ripened by the sacrifices of those whose policy
+she strove to baulk. Conscious of this immense
+privilege, she takes the fullest advantage
+of it. Under such conditions no stable coalition
+of the Balkan States was possible.</p>
+
+<p>The remarkable ascendancy thus won by
+Germany over Bulgaria is but one of the
+salient results of her foresight, organization
+and single-mindedness which the Allies are
+now beginning to appreciate. Their ideal policy
+in the Balkans was to have none. Great
+Britain in particular was proud of her complete
+disinterestedness.<span class='pagenum'><a name="Page_128" id="Page_128">[128]</a></span></p>
+
+<p>Between the Teutons and the Greeks there
+were no such close ties as those that linked
+Bulgaria to the Central Empires. The Hellenic
+kingdom is a democracy marked by a constant
+tendency to anarchy. Down to the beginning
+of the reign of the present monarch its ruler
+was never more than the merest figure-head,
+nor its people anything but an amalgam of
+individuals deficient in the social sense and
+devoid of political cohesiveness. The late
+King George, for instance, remained, to the
+end of his life, an amused spectator of the
+childish game of politics carried on by his
+Ministers; and so insecure did he consider
+his tenure of the kingship, that his frequent
+threat to &#8220;take his hat&#8221; and quit the country
+for good had become one of the commonplaces
+of Greek politics. Only a few years ago his
+reign appeared to be drawing to an ignominious
+end. His functions were usurped by a military
+league and his sons removed from the army.
+Anarchy was spreading, at that time I expressed
+the opinion that the only person
+capable of saving Greece&mdash;if Greece could yet
+be saved&mdash;was the Cretan insurgent, M. Venizelos.
+This suggestion appealed to the Chief
+of the Military League and was adopted.
+Venizelos was invited to Athens with the
+results known to all the world. At first
+reluctantly tolerated, he was subsequently
+highly appreciated by King George and was
+afterwards handicapped by King Constantine,
+whose impolitic instructions during the Bucharest
+Conference resulted in sowing seeds of
+discord between Greece and Bulgaria.</p>
+
+<p>To small countries and petty personal ambitions,
+a war among the Great Powers brings
+halcyon days of flattery, bribery and seductive<span class='pagenum'><a name="Page_129" id="Page_129">[129]</a></span>
+prospects in an imaginary future. In Greece
+all these and other attractions were dangled
+before the eyes of men of power and influence.
+The Sovereign, whose admiration for the Kaiser
+verges on idolatry, soon extended this platonic
+sentiment to the Kaiser&#8217;s army. And when
+fortune seemed definitively to espouse the
+cause of the Central Empires, his admiration
+was reinforced by fear and the pro-German
+leanings, which were at first merely platonic,
+bade fair to harden into active co-operation.
+It was not until then that the Entente Powers,
+discerning the fateful character of their errors
+and the trend of events, resolved after much
+hesitation and discussion to put forth an
+effort to retrieve the situation. Of his philo-German
+tendencies King Constantine gave
+several public proofs long before the war, and
+on the psychological soil from which they
+sprang, German diplomacy raised its typical
+structure of intrigue and adulation. As the
+irresistible captain who had shattered the
+armies of Turkey and Bulgaria, winning undying
+fame for himself and his country, the
+King was encouraged to believe that on him
+devolved the mission of uniting all Hellenes
+under his sceptre, building up a larger Greece,
+consolidating the monarchy within, and ruling
+as well as reigning. And so well laid was this
+plan that when the European armies took the
+field and the Entente Powers counted Greece,
+then apparently governed by Venizelos, among
+its cordial friends, the Teutons, sure of their
+ground, but still working assiduously for their
+object, put their trust in the Kaiser&#8217;s royal
+henchman and their own permanent display of
+force, and were not disappointed.</p>
+
+<p>Long before the war-cloud burst, the history<span class='pagenum'><a name="Page_130" id="Page_130">[130]</a></span>
+makers of Berlin recognized the fact that the
+key to the Dardanelles lay in Sofia, and not
+only to the Dardanelles, but also the key to
+the Near East. The statesmen of Austria and
+Germany discerned that the Bulgars under
+their guidance could be got to do for Turkey
+what Japan hoped, and still hopes, to effect
+for China. It is a work of complete transformation,
+a sort of political transubstantiation
+whereby the Bulgars would infuse ichor
+into the limp veins of the Ottoman organism
+and recreate a strong political entity which
+would be an instrument in the hands of the
+Central Empires. The Bulgar knows the Turk,
+to whom he is more akin by race habits and
+temperament than to any of the Slav peoples,
+understands his psychic state, his mode of feeling
+and thinking, and is therefore qualified to serve
+as link between the Oriental and the Western.
+It was in view of this eventuality that the
+slow, plodding work of grafting Kultur on
+the Bulgar people was undertaken. Two
+German schools, one in Sofia and the other in
+Philippopolis, were the centres whence it was
+radiated to the ends of the land. In Bulgaria
+there are many preparatory grammar
+schools in which tuition for both sexes is free.
+All scholars who have passed through one of
+the German schools are admitted without any
+examination into the Grammar School, or
+Gymnasium, a privilege which works as a
+powerful attraction. Since Turkey retroceded
+Karagatch<a name="FNanchor_61_61" id="FNanchor_61_61"></a><a href="#Footnote_61_61" class="fnanchor">[61]</a> to Bulgaria there are three such
+centres of Teutonic propaganda in Bulgaria,
+and I am informed that a fourth will shortly
+be established in Rustschuk.</p>
+
+<p>The record of the economic invasion of
+<span class='pagenum'><a name="Page_131" id="Page_131">[131]</a></span>Roumania by the Teuton,<a name="FNanchor_62_62" id="FNanchor_62_62"></a><a href="#Footnote_62_62" class="fnanchor">[62]</a> supplemented as
+it was by various complex auxiliary movements
+of a political character, supplies us
+with a fresh variation of the trite text that
+Germany conceived her plan on a vast scale
+and executed it by co-operation between the
+State and the individuals, leaving nothing to
+chance which could be settled by forethought.
+The ruler of the country was a Hohenzollern,
+and as he wielded absolute power in matters
+connected with foreign policy, he had a free
+hand and kept it efficaciously employed. For
+over thirty years King Carol transacted the
+international business of the realm&mdash;economic
+as well as political&mdash;with assiduity, conscientiousness
+and a fair meed of success. He encouraged
+industry and commerce, and welcomed
+German and Austrian capital and enterprise.
+The upshot of his exertions was that in
+the fullness of time his kingdom, like those
+of Italy, Bulgaria and Turkey, became to
+most intents a nascent Teutonic colony. In
+Roumania, as in Bulgaria, the commercial
+methods and business ways are German. The
+heads of banking establishments and great
+industries are either Teutons or friends of
+Teutons. Nearly every big enterprise, commercial
+and industrial, was launched and kept
+afloat by capital from the Fatherland. The
+Discount Bank in Berlin has a vast cellar filled
+with Roumanian bonds, shares and other
+securities. So close are the ties that connect
+the little state with the great empire that even
+<span class='pagenum'><a name="Page_132" id="Page_132">[132]</a></span>the Roumanian railways have a special convention
+with those of Prussia. Here, then, as
+everywhere else, we are in presence of intelligence
+wedded to politico-economic enterprise.
+Individual German firms and the Government
+worked hand in hand; diplomacy, trade and
+commerce moved steadily towards the same
+goal, and attained it.</p>
+
+<p>Owing to Roumania&#8217;s grievances against
+Russia&mdash;whose seizure of Bessarabia nearly
+forty years ago left a wound which festered for
+years and has only recently been cicatrized&mdash;King
+Carol concluded a military convention
+with the Austro-Hungarian empire, the stipulations
+of which have never been authoritatively
+disclosed. There is reason to believe
+that one clause obliged the Roumanian Government
+to come to the support of the Habsburg
+Monarchy with all its military resources in
+case that empire should be wantonly attacked
+by another Power. Whether this instrument,
+which was never laid before the Roumanian
+legislature for ratification, is deemed to have
+been vitiated by the lack of this indispensable
+sanction, or is assumed to have terminated
+with the decease of the king who concluded
+it, is a matter of no real moment. The
+relevant circumstance is the unwillingness of
+Austria-Hungary to invoke the terms of the
+convention and the resolve of the Bucharest
+Cabinet to ignore them.</p>
+
+<p>Thus Roumania, like all other neutral states,
+was well within the sphere of attraction of the
+Central Empires long before the present conflict
+was unchained. And the clever tactics
+by which siege was laid to the sympathies of
+a nation which at bottom has hardly any
+traits in common with the besieger, would<span class='pagenum'><a name="Page_133" id="Page_133">[133]</a></span>
+have entailed a complete revision and remodelling
+of the polity of Russia, France and Britain,
+had these Powers had any coherent programme
+or distant aims. But their motto was: Sufficient
+unto the day is the evil thereof.</p>
+
+<p>True, none of those States ever designed a
+political revolution of the Old Continent, such
+as Napoleon had imagined or Germany is now
+striving to realize. But neither did they read
+aright nor even give serious thought to the
+symptoms of the great conspiracy which was
+being hatched by others for that purpose.
+Busied with their party squabbles and social
+reforms, they took it for granted that international
+tranquillity which was a condition of
+the stability of all internal affairs was assured.
+Such occasional misunderstandings as might
+crop up among the Powers could, they imagined,
+always be smoothed over by manifestations of
+goodwill and timely concessions. Fitfulness and
+hesitancy marked every attempt made by Germany&#8217;s
+rivals to push their trade or extend their
+political relations beyond their own borders.</p>
+
+<p>This lack of enterprise was especially accentuated
+in their dealings with Turkey. No
+Powers had done so much to uphold Ottoman
+sway in Europe as France and Britain, and for
+a long while their exertions found their natural
+outcome in a degree of influence at the Sublime
+Porte which was unparalleled in Turkish
+history. But once Germany inaugurated her
+economico-political campaign in the Near East,
+the principle of neighbourliness was invoked in
+favour of allowing her to possess herself of a
+share of the good things going, whereupon
+Great Britain, and in a lesser degree France,
+curbed their natural impulse and left most of
+the field to the pushing new-comer. For years<span class='pagenum'><a name="Page_134" id="Page_134">[134]</a></span>
+the writer of these lines pointed out the danger
+of this self-abnegation, but his insistent appeals
+for a more active line of conduct were met
+by the statement that Near Eastern affairs
+had long ceased to tempt the enterprise or
+affect the international policy of Great Britain.
+As though Great Britain were not a member
+of the European community or her geographical
+insularity implied political isolation; or as if
+her policy of equilibrium were capable of being
+achieved without the employment of adequate
+means! When I raised my voice against our
+participation in the Baghdad railway scheme
+and bared to the light the political designs
+underlying it, Cabinet Ministers assured the
+country that its scope was exclusively economic
+and cultural and had no connection with
+politics! This na&iuml;ve belief and the <i>laissez-faire</i>
+attitude which it engendered enabled the
+Teutons to reduce Turkey to economic and
+political thraldom and to earmark Asia Minor,
+thenceforward hedged in with the Baghdad and
+Anatolian railways, as a future German colony.</p>
+
+<p>The closeness and constancy of the relations
+between economics and politics which easily
+took root in German consciousness, had for
+another of its corollaries the dispatch of General
+Liman von Sanders and his band of officers to
+reorganize the Ottoman army. This measure
+struck some observers as the beginning of the
+end of European peace. It was thus that the
+Russian Premier, Kokofftseff, and his colleague,
+Sazonoff, construed it, and that was the interpretation
+which I also put upon it. But none
+of the other interested Governments expressed
+similar misgivings, nor, so far as one can judge,
+entertained any. Yet when war was finally
+declared, Germany&#8217;s plan of campaign allotted an<span class='pagenum'><a name="Page_135" id="Page_135">[135]</a></span>
+important r&ocirc;le to Turkey not in a possible emergency,
+but at a date to be determined by the
+completion of her military and naval equipment.</p>
+
+<p>In this ingenious and comprehensive way,
+operating at a multitude of points, but never
+dissociating economics from politics, never
+abandoning the work of commercial expansion
+to the unaided resources of individuals, the
+Teutonic empires contrived to spread a huge
+net in whose meshes almost every civilized
+nation was to some extent entangled. And the
+subsequent political conduct of many of these
+was determined in advance by the plight to
+which they had been thus reduced. Russia was
+reasonably believed to be incapable of taking
+the field; Italy was accounted wholly unfitted
+to bear the weight of the financial burden
+which a conflict with Germany would lay upon
+her shoulders; Roumania, it was calculated,
+would decline to exchange material gains for
+political returns purchased at a heavy cost;
+Bulgaria could not afford to estrange Austria&#8217;s
+sympathies and need never fear that she
+might forfeit those of Russia; Sweden, saturated
+with German Kultur, was one of the
+foreposts of Teutonism in the north of Europe
+and might in time be induced to imitate
+Bulgaria and play for the hegemony of the
+Scandinavian States with the Kaiser&#8217;s help;
+Switzerland was virtually German in everything
+but political organization; Holland
+would believe in Prussianism and tremble;
+Belgium was economically a pawn in German
+hands and Antwerp a German port; and
+in the United States millions of hyphenated
+Germans would plead the Teuton cause and
+do the rough work of advancing it by means
+of their political organization and influence.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_55_55" id="Footnote_55_55"></a><a href="#FNanchor_55_55"><span class="label">[55]</span></a> See <i>Le Temps</i>, October 31, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_56_56" id="Footnote_56_56"></a><a href="#FNanchor_56_56"><span class="label">[56]</span></a> Mr. M. Civinini of the <i>Corriere della Sera</i>. See
+<i>Corriere della Sera</i>, October 11, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_57_57" id="Footnote_57_57"></a><a href="#FNanchor_57_57"><span class="label">[57]</span></a> In September 1914. See <i>Morning Post</i>, September 4,
+1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_58_58" id="Footnote_58_58"></a><a href="#FNanchor_58_58"><span class="label">[58]</span></a> The Batak massacre of Bulgarians by order of Abdul
+Kerim Pasha had called forth Gladstone&#8217;s pamphlet:
+<i>Bulgarian Atrocities</i>, and aroused the horror of civilized
+men. But the Hungarian aristocracy sympathized with
+the mass murderer, and presented him with a golden
+hilted sabre. The list of subscribers for this mark of
+aversion to the Bulgarian people can still be viewed in
+the Museum at Budapest. The third name on that list&mdash;Princess
+Clementine&mdash;is followed immediately by that of
+her son Prince Ferdinand of Coburg, who gave one hundred
+florins as a token of his admiration for the exterminator
+of his future subjects! It need hardly be added
+that he was not yet Prince of Bulgaria.</p></div>
+
+<div class="footnote"><p><a name="Footnote_59_59" id="Footnote_59_59"></a><a href="#FNanchor_59_59"><span class="label">[59]</span></a> General Fitcheff has since become Minister of War.</p></div>
+
+<div class="footnote"><p><a name="Footnote_60_60" id="Footnote_60_60"></a><a href="#FNanchor_60_60"><span class="label">[60]</span></a> This narrative was published by M. Wesselitsky in
+the <i>Novoye Vremya</i>, November 6, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_61_61" id="Footnote_61_61"></a><a href="#FNanchor_61_61"><span class="label">[61]</span></a> One of the suburbs of Adrianople ceded in July 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_62_62" id="Footnote_62_62"></a><a href="#FNanchor_62_62"><span class="label">[62]</span></a> Roumania&#8217;s annual imports from Austria-Hungary,
+according to the latest available statistics, were valued
+at 136,906,000 francs; from Germany at 183,713,000;
+and from Great Britain at only 85,470,000 francs. France
+exported thither goods valued at no more than 35,273,000
+francs.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XI" id="CHAPTER_XI"></a>CHAPTER XI<span class='pagenum'><a name="Page_136" id="Page_136">[136]</a></span></h2>
+
+<h3>THE RIVAL POLICIES</h3>
+
+
+<p><span class="smcap">In</span> face of this Teutonic control of the
+world&#8217;s trade, politics and news supply, the
+Great Powers whose outlook, political and
+economic, was most nearly affected, exhibited
+a degree of supineness which can only be
+adequately explained by such assumptions as
+one would gladly eliminate. Anyhow the
+lessons conveyed by eloquent facts fell upon
+deaf ears. Yet it was manifest, in view of
+Germany&#8217;s ingenious combination of economics
+and politics, and the irresistible co-operation
+of the State and individuals in applying it,
+that the slipshod methods of Britain and
+France could no longer be persisted in without
+grave danger to these states. To deal with
+trade and industry as though they were matters
+that concerned only the particular business
+firms engaged in them was no longer an economical
+error, it was also a political blunder.
+To Government meddling in trade and industry
+the British people have ever been averse. And
+their dislike is intelligible although no longer
+warranted. A glance at Germany&#8217;s economic
+campaign and its results ought to have borne
+out the thesis that individual self-reliance and
+push are unavailing to cope with a potent
+organism equipped scientifically, provided with
+large capital and backed by the resources of
+diplomacy. New epochs call for fresh methods,<span class='pagenum'><a name="Page_137" id="Page_137">[137]</a></span>
+and the era of commercial and industrial
+individualism was closed years ago by the
+German people. Co-ordination of effort, the
+combination of politics with economics, and
+unity of direction were among Germany&#8217;s
+methods in the contest, and she adopted them
+in the grounded belief that commerce and
+industry lie at the nethermost roots of the
+vast political movements of the new era.</p>
+
+<p>This is a century of co-operation, of joint
+efforts for common interests, of union in
+trade, industry, labour, politics and war. To
+stand aloof is to be isolated, and isolation
+means helplessness against danger. Germany
+was the first Power to grasp these facts, to
+understand the new phase of life and to adapt
+herself to it. For this work of readjustment
+her people were specially endowed by Nature,
+and in their equipment for the task they saw
+a mark of election set upon them by their
+&#8220;old God.&#8221; For the correlate of co-operation
+is talent for organization, and with this
+the Teutons are plentifully gifted. They feel
+impelled as it were by instinct to push forward
+much further on the road already
+traversed by all nations from isolation to
+individualism through gregariousness. They
+opened the new era of amalgamation by co-ordinating,
+on a vast scale, individual achievements,
+resources and labour, and directing
+them to a common end. The allied peoples
+were meanwhile content to muddle through
+in the old way. This difference explains much
+that seems puzzling in the outcome of the
+struggle.</p>
+
+<p>It has been affirmed somewhat off-handedly
+that the Latin and British peoples, incapable
+of united and organized effort, have halted at<span class='pagenum'><a name="Page_138" id="Page_138">[138]</a></span>
+the individualist stage. They are supposed
+to lack the bump of organization. According
+to this theory among the Germans, who had
+passed through all the intermediate phases
+and carried individualism to sinister extremes
+in the past, a reaction set in which called forth
+the latent powers of organization which they
+possess. And these have been wielded with
+brilliant results ever since the unity of the
+German Empire was first established. Applying
+the new principle to politics, the statesmen
+of Berlin grasped the fact that all future
+conflicts in Europe would be waged by coalitions.
+Neither Austria-Hungary alone nor the
+German Empire alone could undertake a world
+war. That was the genesis of the scheme of
+welding the two central empires in one politico-military
+entity and then attracting as many
+other States as possible into their orbit. And
+the enterprise was conducted so ingeniously
+that when war was declared, Roumania, Bulgaria
+and Turkey were tied to the Triple
+Alliance. And henceforward, whatever the
+outcome of the war may be, the permanent
+fusion of Germany and Austria is a foregone
+conclusion.</p>
+
+<p>By the means described a state of things,
+actual and potential, was established which
+rendered Germany&#8217;s military attack on Europe
+much less hazardous and doubtful a venture
+than was at first supposed. For there was
+not a country on the globe which she or her
+ally had not subjected to the process of interpenetration,
+nor was there one which had
+remained wholly irresponsive. Even Brazil,
+Chili, Peru, China, Morocco, Persia, Abyssinia,
+had all experienced its effects. And
+when at last the harvest-time was come and<span class='pagenum'><a name="Page_139" id="Page_139">[139]</a></span>
+its fruits were to be ingathered Germany felt
+that she could count to varying extents on
+the active sympathy and support of governments,
+parliaments and nations; on the Turks,
+the Swiss, the Swedes, the Bulgarians, the
+Roumanians; on the autocratic ruler of the
+Greeks and on millions of American-Germans.
+Every independent religious centre was permeated
+with an atmosphere composed in
+Germany. The Caliph and the Sheikh-ul-Islam
+of the Moslems, the evangelical preachers
+of the Russian Baltic provinces, Brahmins in
+India, subjects of the Negus of Abyssinia, the
+Jews of western Russia and Poland, as well
+as those of the Netherlands, the Catholics of
+Switzerland, Holland and Italy, nay, the
+Vatican itself, raised their voices in the chorus
+of the millions who sang hosannah to the
+Highest.<a name="FNanchor_63_63" id="FNanchor_63_63"></a><a href="#Footnote_63_63" class="fnanchor">[63]</a></p>
+
+<p>Dismay was the feeling aroused among the
+Allies by the quick dramatic moves which
+precipitated the war. The trump of doom
+seemed to have sounded at a moment when
+mankind was on the point of discovering the
+secret of immortality. The utter unpreparedness
+of the Allies was the dominant note of
+the new situation, and its manifestations were
+countless and disastrous. There was no adequate
+British expeditionary army to send on
+foreign service, and there existed no machinery
+by which such a force could quickly be got
+together and trained. Voluntary enlistment
+was a slowly moving mechanism, and even if
+it could be made to work more rapidly, there
+was no way of employing the new soldiers,
+for whom there were neither barracks nor
+<span class='pagenum'><a name="Page_140" id="Page_140">[140]</a></span>uniforms nor rifles in sufficiency. And if all
+these requirements could have been improvised,
+there were no generals accustomed to
+handle armies of millions. And even if all
+those wants had been supplied to hand
+there was no Government enterprising enough
+to put them to the best advantage of the
+nation. Moreover, colonial expeditions were
+the most extensive military operations which
+the country had carried on within the memory
+of the present generation, and it was beyond
+the power of the authorities not only to
+organize the imperial defences on an adequate
+scale but even to realize the necessity of
+attempting the feat. In a word, the prospect
+could hardly have been more dismal.</p>
+
+<p>In France it was a degree less cheerless, but
+still decidedly bleak. Mobilization there went
+forward, it is claimed, more smoothly than
+had been anticipated, but not rapidly enough
+to enable adequate forces to be dispatched
+in time against the German military flood.
+The organization of the railway system was
+most inefficient. And had it not been for
+heroic Belgium, who, confronted with the
+alternatives of ruin with honour and safety
+with ignominy, unhesitatingly chose the better
+part, the inrush of the Teutons would, it is
+asserted by military experts, have swept away
+every obstacle that lay between them and the
+French capital, which was their first objective.
+Belgium&#8217;s magnificent resistance thus saved
+Paris, gave breathing space to the French,
+and enabled the Allies to swing their sword
+before smiting.</p>
+
+<p>Russia, too, did better than had been augured
+of her, but not nearly as well as if her resources
+had been organized by competent experts,<span class='pagenum'><a name="Page_141" id="Page_141">[141]</a></span>
+alive to the dangers that threatened the
+empire. On the eve of the war a process of
+fermentation among the working men of her
+two capitals was coming to a head, and a
+revolt, if not a revolution, was being industriously
+organized. The movement had certainly
+been fostered, and probably originated,
+by wealthy German employers in Petrograd,
+Moscow and other industrial centres. They
+had hoped to frustrate the mobilization order,
+retard Russia&#8217;s entry into the field, and possibly
+bring about civil strife. And they were within
+an ace of succeeding. On the very eve of
+hostilities reports reached Berlin and Vienna
+that the revolution was already beginning.
+But the declaration of war against Germany
+purified the air, absorbed the redundant energies
+of the people, and fused all classes and
+parties into a whole-hearted, single-minded
+nation, giving Russia a degree of union which
+she had not enjoyed since Napoleon&#8217;s invasion.
+But, separated from her allies, she
+went her own way without much reference to
+theirs. Her plans had been drafted by her
+military leaders, and might be modified by
+local conditions or subsequent vicissitudes,
+but were neither co-ordinated nor even synchronized
+with those of France and Britain.
+Thus the first and most important lesson had
+still to be mastered.</p>
+
+<p>Li&egrave;ge and Namur having fallen, the danger
+to Paris struck terror to the hearts of the
+French, and the public mind was being
+gradually prepared by the Press to receive the
+depressing tidings of its capture with dignified
+calm. The occupation of the capital, it
+was argued, would not essentially weaken
+the military strength of the Republic. For the<span class='pagenum'><a name="Page_142" id="Page_142">[142]</a></span>
+army would still be intact, and that was the
+essential point. Here, for the first time, one
+notes the almost invincible force of the antiquated
+opinions to which the Allies still
+tenaciously clung about warfare as modified
+by Germany. No misgivings were harboured
+that the enemy might threaten to burn the
+capital city if the army refused to capitulate,
+or that he was capable of carrying out such a
+threat. War in its old guise, hedged round
+with traditions of chivalry, with humanitarian
+restrictions, with international laws, was how
+the French and their allies conceived it. And
+it was in that spirit that they made their
+forecasts and regulated their own behaviour
+towards the enemy.</p>
+
+<p>The rise of Generals Joffre, Castelnau and
+Foch and the retreat of the German invaders
+raised the Allies from the depths of despair
+to a degree of confidence bordering on presumption.
+After the departure of the Belgian
+Government to Antwerp,<a name="FNanchor_64_64" id="FNanchor_64_64"></a><a href="#Footnote_64_64" class="fnanchor">[64]</a> the occupation of
+Brussels,<a name="FNanchor_65_65" id="FNanchor_65_65"></a><a href="#Footnote_65_65" class="fnanchor">[65]</a> the defeat of the Austrian army by
+the Serbs and the rout of three German army
+corps by the Russians,<a name="FNanchor_66_66" id="FNanchor_66_66"></a><a href="#Footnote_66_66" class="fnanchor">[66]</a> the Western Allies
+conceived high hopes of the military prowess
+of the Slavs, and looked to them for the decisive
+action which would speedily bring the
+Teutons to their knees. And for a time
+Russia&#8217;s continued progress seemed to justify
+these hopes. Her troops entered Insterburg<a name="FNanchor_67_67" id="FNanchor_67_67"></a><a href="#Footnote_67_67" class="fnanchor">[67]</a>
+and pushed on to K&ouml;nigsberg, which they
+invested and threatened,<a name="FNanchor_68_68" id="FNanchor_68_68"></a><a href="#Footnote_68_68" class="fnanchor">[68]</a> and in the south
+they scored a series of remarkable successes
+in Galicia. But in the west of Europe the
+<span class='pagenum'><a name="Page_143" id="Page_143">[143]</a></span>Allies could at most but retard without
+arresting the advance of the Germans, whose
+aim was to defeat the French and then concentrate
+all their efforts on the invasion of the
+Tsardom. Despite assurances of an optimistic
+tenor there appeared to be no serious hope
+of defending Paris, nor were effective local
+measures adopted for the purpose; and on
+September 3 the French Government, against
+the insistent advice of three experienced
+Cabinet Ministers, suddenly moved to Bordeaux,
+and earned for itself the nickname of
+<i>tournedos &agrave; la bordelaise</i>. On the same historic
+day the Tsar&#8217;s troops triumphantly entered
+Lemberg, restored to that city its ancient
+name of Lvoff, and proceeded to introduce
+the Russian system of administration there
+with all its traditional characteristics. But
+in lieu of conferring full powers on the
+Governor of the conquered province, a man
+of broad views and conciliatory methods,
+the Government dispatched a narrow-minded
+official, devoid of natural ability, of administrative
+training, and of the sobering consciousness
+of his own defects, and listened to his
+recommendations. For Russia, like France
+and Britain, still contemplated the situation
+and its potentialities through the distorting
+medium of the old order of things. Their
+orientation had undergone no change.</p>
+
+<p>One of the immediate consequences of
+Russian rule in Galicia was to confirm the
+Vatican in its belief that Austria offered
+Catholicism far more trustworthy guarantees
+for its unhindered growth than could ever be
+expected from the Tsardom.</p>
+
+<p>The famous battle of the Marne<a name="FNanchor_69_69" id="FNanchor_69_69"></a><a href="#Footnote_69_69" class="fnanchor">[69]</a> infused
+<span class='pagenum'><a name="Page_144" id="Page_144">[144]</a></span>new energies into the Allies, whose Press
+organs forthwith took to discussing the terms
+on which peace might be vouchsafed to the
+Teutons, and in these stipulations a spirit of
+magnanimity was displayed towards the enemy
+which at any rate served to show how little
+his temper was understood and how enormously
+his resources were underrated. Soon,
+however, the mist of ignorance began to lift,
+and saner notions of the stern interplay of
+the tidal forces at work were borne in upon
+the leaders of the allied peoples. One of
+the first discoveries to be made was the enormous
+consumption of ammunition required by
+latter-day warfare and the ease with which
+the Germans were able to meet this increased
+demand. That this enormous advantage was
+the result of scientific organization was patent
+to all. Nor could it be ignored that an essential
+element of that organization was the militarization
+of all workmen whose services were
+needed by the State. But from the lesson
+thus inculcated to its application in practice
+there was an abyss. And as yet that abyss
+has not been bridged. The most formidable
+obstacle in the way is offered by the shackles
+of party politics, which still hamper the leaders
+of the Entente Powers, and in particular of
+Great Britain. Industrial compulsion has not
+yet been moved into the field of practical
+politics.</p>
+
+<p>One of Germany&#8217;s calculations was that,
+however superior to her own resources those
+of her adversaries might be, they were not
+likely to be mobilized, concentrated and
+brought to bear upon the front. Consequently
+they would not tell upon the result. Military
+discipline had not impregnated any of the<span class='pagenum'><a name="Page_145" id="Page_145">[145]</a></span>
+allied nations, whose ideas of personal liberty
+and dignity would oppose an insurmountable
+obstacle to that severe discipline which was
+essential to military success. Great Britain,
+they believed, would cling to her ingrained
+notions of the indefeasible right of the British
+workman to strike and of the British citizen
+to hold back from military service. And the
+telegrams announcing that in the United
+Kingdom the cries of &#8220;business as usual,&#8221;
+&#8220;sport as usual,&#8221; &#8220;strikes as usual,&#8221; &#8220;voluntary
+enlistment as usual,&#8221; indicated the survival
+of the antiquated spirit of individualism
+into a new order of things which peremptorily
+called for co-operation and iron discipline,
+were received in Berlin and Vienna with
+undisguised joy. The persistence of this spirit
+has been the curse of the Allies ever since.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_63_63" id="Footnote_63_63"></a><a href="#FNanchor_63_63"><span class="label">[63]</span></a> The Highest of All is the official designation of the
+Kaiser: der Allerh&ouml;chste.</p></div>
+
+<div class="footnote"><p><a name="Footnote_64_64" id="Footnote_64_64"></a><a href="#FNanchor_64_64"><span class="label">[64]</span></a> August 17, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_65_65" id="Footnote_65_65"></a><a href="#FNanchor_65_65"><span class="label">[65]</span></a> August 20, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_66_66" id="Footnote_66_66"></a><a href="#FNanchor_66_66"><span class="label">[66]</span></a> August 22, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_67_67" id="Footnote_67_67"></a><a href="#FNanchor_67_67"><span class="label">[67]</span></a> August 23, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_68_68" id="Footnote_68_68"></a><a href="#FNanchor_68_68"><span class="label">[68]</span></a> August 29, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_69_69" id="Footnote_69_69"></a><a href="#FNanchor_69_69"><span class="label">[69]</span></a> September 12, 1914.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XII" id="CHAPTER_XII"></a>CHAPTER XII<span class='pagenum'><a name="Page_146" id="Page_146">[146]</a></span></h2>
+
+<h3>PROBLEMS OF LEADERSHIP</h3>
+
+
+<p><span class="smcap">It</span> is worth noting in this connection how
+heavily the lack of genial leaders at this critical
+conjuncture in European history told upon
+the allied peoples and affected their chances
+of success. The statesmen in power were
+mostly straightforward, conscientious servants
+of their respective Governments, whose ideal
+had been the prevention of hostilities, and
+whose exertions in war time were directed to
+the restoration of peace on a stable basis.
+By none of them was the stir, the spirit, the
+governing instincts of the new era or the
+actual crisis perceived. They all failed of
+audacity. Hence they were solicitous to leave
+as far as possible intact all the rights, privileges
+and institutions of the past which would
+be serviceable in the re-established peace
+r&eacute;gime of the future. In Great Britain the
+voluntary system of recruiting the army and
+navy was to be respected, the right of workmen
+to strike was recognized, and the maintenance
+of party government was looked upon
+as a matter of course. The writer of these pages
+made several ineffectual attempts to propagate
+the view that a War Cabinet presided over by
+a real chief was a corollary of the situation,
+military and industrial compulsion for all was
+indispensable, that a discriminating tariff on
+our imports and a restriction of certain exports<span class='pagenum'><a name="Page_147" id="Page_147">[147]</a></span>
+would materially contribute to our progress, and
+that a special department for the manufacture
+of munitions ought to be organized without
+delay.<a name="FNanchor_70_70" id="FNanchor_70_70"></a><a href="#Footnote_70_70" class="fnanchor">[70]</a> One measure indicative, people said,
+of undisputed wisdom which was resorted to
+was the appointment of Lord Kitchener as
+Secretary for War.<a name="FNanchor_71_71" id="FNanchor_71_71"></a><a href="#Footnote_71_71" class="fnanchor">[71]</a> If this step deserved the
+fervent approval it met with, its efficacy was
+considerably impaired by imposing on the new
+Secretary the task of purveying munitions and
+other supplies, in addition to the multifarious
+duties of his office. And with this solitary
+exception everything was allowed to go on
+&#8220;as usual,&#8221; with consequences which every
+one has since had an opportunity of meditating.
+Internal whole-hearted co-operation
+between the Government and all the social
+layers of the population was neither known
+nor systematically attempted, and still less
+were the respective forces of the Allies co-ordinated
+and hurled against the enemy. The
+struggle was confined to the army and the
+navy, and these instruments of national defence
+were inadequately provided with the
+first necessaries for action.</p>
+
+<p>Each of the Allies was isolated, cooped
+within its own narrow circle of ideas, buoyed
+up by its own hopes, bent on the attainment
+of its own special aims. The first step towards
+amalgamation was negative in character, but
+superlatively politic. It took the form of a
+covenant by which it was stipulated that none
+of the Allies should conclude a separate peace
+<span class='pagenum'><a name="Page_148" id="Page_148">[148]</a></span>with the enemy. But beyond that nothing
+was done, nor was anything more considered
+necessary.</p>
+
+<p>In Britain the consciousness that the country
+was at war spread very slowly, while the conviction
+that this was a life-and-death struggle
+which would seriously affect the lives and
+rights and habits of every individual made no
+headway. Only a few grasped the fact that
+a tremendous upheaval was going forward
+which marked the rise of a new era and a
+complete break with the old. By the bulk
+of the population it was treated as a game
+calling for no extraordinary efforts, no special
+methods, no new departures. It was construed
+as a hateful parenthesis in a cheerful
+history of human progress, and the object of
+the nation was to have it swiftly and decently
+closed. Hence the machinery of the old system
+was not discarded. Voluntary enlistment was
+belauded and agitation against joining the
+army magnanimously tolerated. Attacks on
+the Government were permitted. The manufacture
+of munitions was confided to private
+firms and to the whims of dissatisfied workmen,
+and co-operation among the various
+sections of the population was left to private
+initiative.</p>
+
+<p>Most of us are prone to consider this war
+as a fortuitous event, which might, indeed,
+have been staved off, but which, having disturbed
+for a time the easy movement of our
+insular life, will die away and leave us free to
+continue our progress on the same lines as
+before. But this faith is hardly more than
+the confluence of hopes and strivings, habits,
+traditions, and aspirations untempered by
+accurate knowledge of the facts. And the<span class='pagenum'><a name="Page_149" id="Page_149">[149]</a></span>
+facts, were we cognizant of them, would show
+us that the agencies which brought about
+this tremendous shock of peoples without blasting
+our hopes or exploding our pet theories,
+will not spend their force in this generation
+or the next, and that already the entire fabric&mdash;social,
+political, and economical&mdash;of our
+national life is undergoing disruption.</p>
+
+<p>The shifting of landmarks, political and
+social, is going steadily if stealthily forward;
+and the nation waking up one day will note
+with amazement the vast distance it has imperceptibly
+traversed. If only we could realize
+at present how rapidly and irrevocably we are
+drifting away from our old-world moorings,
+we should feel in a more congenial mood for
+adjusting ourselves to the new and unpopular
+requirements of the era now dawning. Already
+we are becoming a militarist and a protective
+State, but we do not yet know it. We have
+broken with the traditions of our own peculiar
+and insular form of civilization, of which
+poets like Tennyson were the high priests,
+yet we hesitate to bid them farewell. We
+still base our forecasts of the future political
+life on the past and calculate the outcome of
+the next elections, the fate of Disestablishment
+and Home Rule, the relative positions of the
+chief Parliamentary parties on the old bases,
+and draw up our plans accordingly. In short,
+we still bear about with us the fragrant atmosphere
+of our previous existence which will
+never be renewed. And it is owing to the
+effects of that disturbing medium that our
+observations have been so defective and our
+mistakes so sinister. We still fail to perceive
+that decay has overtaken the organs of our
+Party Government and the groundwork of our<span class='pagenum'><a name="Page_150" id="Page_150">[150]</a></span>
+State fabric is rotten. Yet everything about
+and around us is in flux. We are in the midst
+of a new environment.</p>
+
+<p>When this war is over we shall search in
+vain for what was peculiarly British in our
+cherished civilization. Of that civilization
+which reached its acme during the reign of
+the late King Edward, we have seen the last,
+little though most of us realize its passing.
+It was an age of sturdy good sense, healthy
+animalism, and dignity withal, and not devoid
+of a strong flavour of humanity and home-reared
+virtue. But in every branch of politics
+and some departments of science it was an age
+of amateurism. Respect for right, for liberty,
+for law and tradition, for relative truth and
+gradual progress, was widely diffused. Well-controlled
+energy, responsiveness to calls on
+one&#8217;s fellow-feeling, and the everyday honesty
+that tapers into policy were among its familiar
+features. But if one were asked to sum it all
+up in a single word it would be hard to utter
+one more comprehensive or characteristic than
+the essentially English term, comfort. Comfort
+was the apex of the pyramid which is now
+crumbling away. And it is that Laodicean
+civilization, and not the fierce spirit of the new
+time, which is incarnate in the present official
+leaders of the British nation.</p>
+
+<p>The French, too, approached the general
+problem from their own particular standpoint.
+Provided with a serviceable military organization,
+the same unconsciousness of the need of
+mobilizing all the other national resources
+pierced through their policy. Parties and
+factions subsisted as before, and half-way
+men who would have been satisfied with
+driving the enemy out of France and Belgium<span class='pagenum'><a name="Page_151" id="Page_151">[151]</a></span>
+lifted up their voices against those who insisted
+on prosecuting the war until Prussianism
+was worsted. The French Socialists met
+in London<a name="FNanchor_72_72" id="FNanchor_72_72"></a><a href="#Footnote_72_72" class="fnanchor">[72]</a> and passed resolutions in which
+the usual claptrap of the war of classes, the
+boons of pacifism and the wickedness of the
+Tsardom occupied a prominent place. And
+the Congress was honoured by the presence
+of two Cabinet Ministers, MM. Guesde and
+Sembat.</p>
+
+<p>Russia, true to her old self, carried the
+narrow spirit of the bureaucracy into the
+fiercest struggle recorded by history, seemingly
+satisfied that the clash of armies and
+navies would leave antiquated theories and
+moulding traditions intact. When the revolutionist
+Burtzeff published his patriotic letter to
+the French papers approving Russia&#8217;s energetic
+defence of civilization, he was applauded by
+all Europe. &#8220;Even we,&#8221; he wrote, &#8220;adherents
+of the parties of the Extreme Left and
+hitherto ardent anti-militarists and pacifists,
+even we believe in the necessity of <i>this</i> war.
+The German peril, the curse which has hung
+over the world for so many decades, will be
+crushed.&#8221; Yet when he returned to his
+country resolved to support the Tsar&#8217;s Government
+and lend a hand in the good work, he
+was sent to Siberia, in commemoration of the
+old order of things.</p>
+
+<p>Germany alone took her stand on the new
+plane and accommodated herself to the new
+conditions. Thoroughness was her watchword
+because victory was her aim, its alternative
+being coma or death. With her gaze fixed on
+the end, she rejected nothing that could serve
+as means.</p>
+<p><span class='pagenum'><a name="Page_152" id="Page_152">[152]</a></span></p>
+<p>In congruity with these divergent views
+and sentiments was the reading of the war&#8217;s
+vicissitudes in the various belligerent countries.
+The allied Press was over-hopeful,
+right being certain to triumph over might
+wedded to wrong. Publicists pitied the
+Teutons in anticipation of the fate that was
+fast overtaking them. P&aelig;ans of victory resounded,
+allaying the apprehensions and numbing
+the energies of the leagued nations. The
+German, it was asseverated, had shot his bolt
+and was at bay. Russia had laid siege to
+Cracow, and would shortly occupy that city
+as she had occupied Lemberg. The Tsar&#8217;s
+troops might then be expected to push on to
+Berlin, and to reach it in a few months. And,
+painfully aware of the certainty of this consummation,
+Austria was dejected and Hungary
+secretly making ready to secede from the
+Habsburg Monarchy. To this soothing gossip
+even serious statesmen lent a willing ear. The
+writer of these remarks was several times
+asked by leading personages of the allied
+Governments whether internal upheavals were
+not impending in Germany and Austria, and
+his assurance that no such diversion could be
+looked for then or in the near future was
+traversed on the ground that all trustworthy
+accounts from Berlin, Vienna and Budapest
+pointed to a process of fermentation which
+would shortly interpose an impassable barrier
+to the further military advance of the Central
+empires. But he continued to express himself
+in the same strain of warning, which subsequent
+events have unhappily justified.</p>
+
+<p>In October 1914, for instance, he wrote&mdash;</p>
+
+<p><span class='pagenum'><a name="Page_153" id="Page_153">[153]</a></span></p><div class="blockquot"><p>&#8220;Germany has already shot her bolt, people
+tell us. Already? The people who for forty
+years have been preparing to establish their
+rule from Ostend to the Persian Gulf have
+expended their energies after three months of
+warfare? And the concrete foundations built
+at such pains and expense in the German
+factory that dominates Edinburgh? Was the
+Teuton simple-minded enough to fancy that
+he would be in a position to utilize this and
+the other emplacements for his giant guns
+within three months after the outbreak of
+hostilities? Let us be fair to our enemy and
+just to ourselves. The German has not shot
+his bolt. If time is on our side, it will also
+remain on his up to a point which we have
+not yet reached. Those who urge that the
+German must make haste imply that his resources
+are gradually drying up, and that
+neither his food supplies, nor his chemicals,
+nor his metals can be imported so long as we
+hold command of the seas. His armies will
+therefore die of inanition, or their operations
+will be thwarted for lack of munitions. This
+would indeed be joyful tidings were it true.
+If false, it is a mischievous delusion.</p>
+
+<p>&#8220;We are told that the German time-table
+has been upset. Unquestionably it has. But
+is the time-table identical with the programme
+for which it was drawn up? If it is, then the
+march on Paris has been definitely abandoned.
+Now is this conclusion borne out by what we
+behold? What, then, is the meaning of the
+plan to capture Belfort and Calais? What is
+the object of the vast reinforcements now on
+their way from the east to Von Kluck&#8217;s army?
+Personally, I have not a doubt that Paris is
+the objective, or that the Germans are still
+striving to carry out their programme in its<span class='pagenum'><a name="Page_154" id="Page_154">[154]</a></span>
+entirety, which is the extension of their empire
+over Europe and Asia Minor. The immediate
+object of the Allies is to foil this design, and
+only after we have accomplished that can we
+think of assuming the offensive and crushing
+Prussian militarism. We have not compassed
+that end; the battlefields are still in the Allies&#8217;
+countries, and the initiative rests with the
+enemy. Now to whatever causes we may
+attribute this undesirable state of things&mdash;and
+it certainly cannot be ascribed to lack of
+energy on the part of the British Government
+or our military authorities&mdash;it is right that
+those who are acting for the nation should
+ask themselves whether those causes are still
+operative. If they are&mdash;and on this score
+there is hardly room for doubt&mdash;it behoves
+the Allies, and the British people in particular,
+to rise to a just sense of the <i>unparalleled sacrifices</i>
+they must be prepared to make during
+the ordeal which they are about to undergo.&#8221;</p></div>
+
+<p>The German way of looking at the relative
+strength and positions of the belligerents as
+modified by the vicissitudes of the campaign
+was realistic and statesmanlike. Starting from
+the principle that a people of about a hundred
+millions, animated by a lively faith in its own
+vitality and mental equipment, can neither
+be destroyed nor permanently crippled, they
+argued that the worst that Fate could have
+in store for them would be a draw. But before
+that end could be achieved the Teutonic
+armies must have been pulverized and Germany
+and Austria occupied by the allied
+troops. And of this there were no signs.
+&#8220;We never fancied,&#8221; they said, &#8220;that what
+happened in 1870 would be repeated in 1914.<span class='pagenum'><a name="Page_155" id="Page_155">[155]</a></span>
+How could we make such a stupid mistake?
+Then we had only France against us. To-day
+we encounter the combined forces of Russia,
+France, Belgium and England. This difference
+had to have its counterpart in the campaign.
+Thus we have not yet captured Paris.
+But then to-day we are wrestling with the
+greatest empires in the world, and we hold
+them in our grip. We are fighting not for a
+few milliard francs and a disaffected province,
+but for priceless spoils and European hegemony.
+Moreover, Belgium, which we possess
+and mean to keep, is a greater prize than the
+temporary occupation of Paris. Besides, postponement
+is not abandonment. Whether we
+take the French capital one month or another
+is but a detail.</p>
+
+<p>&#8220;And, over and above all this, we have
+reached the sea and are within a few miles of
+England&#8217;s shores. Furthermore, Russia&#8217;s army,
+which we lured into East Prussia until it
+fancied it was about to invest K&ouml;nigsberg,
+has been driven back beyond Wirballen far
+into Tsardom, with appalling losses of men
+and material. Her other forces, which several
+weeks ago boasted that they were about to
+capture Cracow, will soon be driven out of
+Przemysl and Lemberg. Libau will fall into
+our hands. Riga is sure to be ours, and Warsaw
+itself will finally admit our victorious
+troops. Does this look like defeat at the hands
+of our enemies? And German soil is still as
+immune from invasion as though it were girded
+by the sea.&#8221;</p>
+
+<p>In all our forecasts one important element of
+calculation was invariably left out of account:
+the consequences of our blunders, past, present
+and future. And these have added enormously<span class='pagenum'><a name="Page_156" id="Page_156">[156]</a></span>
+to our difficulties and dangers. Not the least
+made was the mistake in allowing the two
+German warships <i>Goeben</i> and <i>Breslau</i> to enter
+the Dardanelles. To have pursued them into
+Ottoman waters would, it was pleaded in
+justification, have constituted a violation of
+Turkish neutrality. Undoubtedly it would,
+but the infringement would not have been
+more serious than many flagrant breaches of
+neutrality which the Sublime Porte had committed
+a short time before and was known to
+be about to perpetrate again.<a name="FNanchor_73_73" id="FNanchor_73_73"></a><a href="#Footnote_73_73" class="fnanchor">[73]</a> But a scrupulous
+regard for the rights of neutrals has been,
+and still is, the groundstone of the Allies&#8217;
+policy, irrespective of its effects on the outcome
+of the war. The rules of the game, it
+is contended, must be observed by us, however
+much they may be disregarded by the
+enemy. This considerateness and scrupulosity
+may be chivalrous, but they form an irksome
+drag on a nation at war with Teutons. The two
+ships were at once transferred by Germany to
+the Turks.<a name="FNanchor_74_74" id="FNanchor_74_74"></a><a href="#Footnote_74_74" class="fnanchor">[74]</a> Some two months later, deeming
+their war preparations completed, the latter
+suddenly bombarded the open Russian town of
+Theodosia in the Black Sea, and sank several
+small craft, thus realizing Germany&#8217;s hopes
+and justifying her politico-economic policy.
+It was now too late to lament the chivalrous
+attitude which had permitted the <i>Goeben</i> and
+<span class='pagenum'><a name="Page_157" id="Page_157">[157]</a></span>the <i>Breslau</i> to steam into the Dardanelles, or
+to regret the indifference we had persistently
+displayed to Near Eastern affairs for well-nigh
+twenty years. The best that could be done at
+that late hour was to face the consequences
+of those errors with dignity and to strive to
+repair them with alacrity. But all the efforts
+made were partial and successive. There was
+no attempt at co-ordination.</p>
+
+<p>Turkey&#8217;s defection was a serious blow to the
+allied cause, not only in view of the positive,
+but also of the negative, advantages it was
+calculated to confer upon Germany. The
+Ottoman army, consisting of first-class raw
+materials, had had its latent qualities unfolded
+and matured by German organization, discipline
+and training. Its supplies were replenished.
+Ammunition factories were established. Barracks
+were built and fortifications equipped in
+congruity with latter-day needs. Three million
+pounds of German bar gold reached Constantinople,
+and were deposited in the branch offices
+of the Deutsche Bank there for the requirements
+of the army. In all this the Kaiser&#8217;s
+Government ran no risks. The return was
+guaranteed by the politico-economic measures
+which had been continuously applied during
+the years of our &#8220;disinterestedness.&#8221;</p>
+
+<p>Enver had meanwhile risen to the zenith of
+his career. He was now War Minister and had
+surrounded himself with officers who would
+follow him whithersoever he might lead them.
+A low-sized, wiry man, seemingly of no account,
+Enver is pale of complexion, shuffling in gait.
+His eyes are piercing, and his gaze furtive.
+A soul-monger who should buy him at his
+specific value and sell him at his own estimate
+would earn untold millions. For, to use a<span class='pagenum'><a name="Page_158" id="Page_158">[158]</a></span>
+picturesque Russian phrase, the ocean is only
+up to his knees. He is physically dauntless
+and buoyant. In the war against Italy he
+had fought well and organized the Arab and
+other native troops under conditions of great
+difficulty, winning laurels which have not yet
+withered. A Pole by extraction, Enver Pasha
+is a Prussian by training and sympathies,
+and a Turk by language and religion and by
+his marriage with a daughter of the Sultan.
+Political sense he has none. His one ideal
+was to earn the appreciation of the Prussian
+military authorities, to whom he looks up as
+a fervid disciple to peerless masters. German
+military praise melts his manhood and turns
+his brain. He possesses a dictatorial temper
+with none of the essential qualities of a dictator,
+and in the field he is distinguished, I
+am told, by splendid valour without an inkling
+of scientific strategy.</p>
+
+<p>It was that Polish Turk and his German
+masters who formally made war upon Russia,
+France and Britain.<a name="FNanchor_75_75" id="FNanchor_75_75"></a><a href="#Footnote_75_75" class="fnanchor">[75]</a> And the Turkish nation
+had no opportunity to sanction or veto their
+resolve. Nay, even the majority of the
+Cabinet, including the Grand Vizier, had had
+no say on the issue, were not even informed
+of what was being done until overt acts of
+hostility had actually clinched the matter.
+Indeed, there was a majority of Cabinet
+Ministers in favour of neutrality, but it was
+ignored. In this way Turkey threw in her
+lot with the Teutons,<a name="FNanchor_76_76" id="FNanchor_76_76"></a><a href="#Footnote_76_76" class="fnanchor">[76]</a> to the astonishment
+<span class='pagenum'><a name="Page_159" id="Page_159">[159]</a></span>of the Allies, who had hoped that a policy of
+forbearance and meekness would elicit a
+friendly response and frustrate the effect of
+the master strokes by which Germany, during
+a long series of years, had consolidated her
+ascendancy over Turkey and obtained the
+command of the Ottoman army. The childish
+notion that a sudden exhibition of pacific
+intentions and goodwill is enough to foil the
+carefully laid schemes of a clever enemy which
+have been maturing for decades, is the refrain
+that runs through the history of our foreign
+policy for the last thirty or forty years. And
+not only through the history of our foreign
+policy. Faith in the sacramental efficacy of
+an improvisation is a trait common to all the
+Allies, but in the British nation it is the faith
+that is expected to move mountains.</p>
+
+<p>The negative aspect of Turkey&#8217;s belligerency
+proved to be quite as irksome as the positive.
+For it involved the closing of the Dardanelles
+to Russia&#8217;s corn export and the disappearance
+<span class='pagenum'><a name="Page_160" id="Page_160">[160]</a></span>of the principal route for communications
+between the Tsardom and its Western allies.
+Archangel is blocked in winter and inadequately
+connected by rail with the two capitals in
+summer. This additional embarrassment and
+its financial sequel compelled the attention of
+the Allies to the need of some kind of co-operation&mdash;just
+to satisfy actual needs. For
+neither then nor at any subsequent period was
+there any pretence of laying open the whole
+ground and building a complete structure
+upon that. A temporary expedient is all
+that was contemplated, and nothing more lasting
+was evoked. None the less, the Conference
+of the three Finance Ministers in Paris<a name="FNanchor_77_77" id="FNanchor_77_77"></a><a href="#Footnote_77_77" class="fnanchor">[77]</a>
+marked a step in advance, and was subsequently
+followed up by a closer and more continuous
+contact.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_70_70" id="Footnote_70_70"></a><a href="#FNanchor_70_70"><span class="label">[70]</span></a> Cf. <i>Contemporary Review</i>, November 1914. I was
+requested to suppress an article on the subject of &#8220;Coalition
+Government&#8221; and another on the subject of &#8220;Tariff
+Reform during and after the War.&#8221;</p></div>
+
+<div class="footnote"><p><a name="Footnote_71_71" id="Footnote_71_71"></a><a href="#FNanchor_71_71"><span class="label">[71]</span></a> August 5, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_72_72" id="Footnote_72_72"></a><a href="#FNanchor_72_72"><span class="label">[72]</span></a> February 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_73_73" id="Footnote_73_73"></a><a href="#FNanchor_73_73"><span class="label">[73]</span></a> Turkey had already violated her neutrality to our
+detriment many times. For instance, on September 25
+she had erected military works against us on the Sinai
+frontier; as far back as August 25 Turkish officers had
+seized Egyptian camels laden with foodstuffs. Moslem
+fidahis in Ottoman service endeavoured to incite the
+Egyptian Mohammedans against the British Government
+during the first half of October.</p></div>
+
+<div class="footnote"><p><a name="Footnote_74_74" id="Footnote_74_74"></a><a href="#FNanchor_74_74"><span class="label">[74]</span></a> August 13, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_75_75" id="Footnote_75_75"></a><a href="#FNanchor_75_75"><span class="label">[75]</span></a> November 3, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_76_76" id="Footnote_76_76"></a><a href="#FNanchor_76_76"><span class="label">[76]</span></a> On October 25, 1908, after having studied the origins
+of the Turkish Revolution and the antecedents of its
+authors, and while all Europe was still warmly congratulating
+the Young Turks on their bloodless victory
+and moderation, I dispatched the following telegraphic
+message to the <i>Daily Telegraph</i>&mdash;
+</p>
+
+<div class="blockquot">
+<p>&#8220;Most unwillingly do I give utterance to facts and
+impressions calculated to introduce a jarring note
+into the harmonious optimism of Western peoples,
+who confidently augur great things of the young
+Ottoman nation, and discern no difficulties likely to
+become formidable dangers to the new-born State.
+But a knowledge of all the essential data is indispensable
+to correct the diagnosis without which the
+malady cannot be successfully treated. Emancipation,
+then, has produced a beneficent enthusiasm for
+the political ideals of Europe in minds hitherto impermeable
+to Western notions, but has neither transformed
+the national character nor supplied the revolutionary
+movement with the requisite constructive
+forces. <i>Neither can it break the fateful continuity
+of Turkish history nor avert the defects of the destructive
+causes that have been operative here for generations.</i>&#8221;</p></div>
+</div>
+
+<div class="footnote"><p><a name="Footnote_77_77" id="Footnote_77_77"></a><a href="#FNanchor_77_77"><span class="label">[77]</span></a> February 6, 1915, and the following three days.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XIII" id="CHAPTER_XIII"></a>CHAPTER XIII<span class='pagenum'><a name="Page_161" id="Page_161">[161]</a></span></h2>
+
+<h3>PROBLEMS OF FINANCE</h3>
+
+
+<p><span class="smcap">Finances</span> are the nerve of warfare, and in
+a contest which can be decided only by the
+exhaustion of one of the belligerents they are,
+so to say, the central nerve system. The
+Germans being astute financiers, and aware
+that the war to which their policy was leading
+would soon break out, had made due preparations,
+with a surprising grasp of detail. Nothing
+was forgotten and nothing neglected. And
+success rewarded their efforts. The result was
+that they mobilized their finances long before
+they had begun to mobilize their troops.</p>
+
+<p>France, on the contrary, persuaded that
+peace would not be disturbed, took no thought
+of the morrow. Yet her budgetary estimates
+showed an ugly deficit. This gap, however,
+would have been filled up in the ordinary
+course of things by a big loan which was about
+to be floated. But M. Caillaux, probably the
+most clever financier in France, who, if he
+applied his knowledge and resourcefulness to
+the furtherance of his country&#8217;s interests, could
+achieve great things, used them&mdash;and together
+with them his parliamentary influence&mdash;to
+upset the Cabinet and thwart the loan scheme.
+Then, taking over the portfolio of the Finance
+Minister in the new Cabinet, he arranged for
+borrowing a small instead of a large amount,
+thereby exposing his country to risks more<span class='pagenum'><a name="Page_162" id="Page_162">[162]</a></span>
+serious than the public realized. For it was a
+heavy disadvantage on the eve of the most
+exhausting struggle ever entered upon by the
+French people, whose strongest position was
+weakened as no enemy could have weakened it.</p>
+
+<p>Russia was in a different, but nowise better,
+position when suddenly called upon to meet
+the onerous demands of the world-contest.
+She, too, having pinned her faith to the
+maintenance of peace, had made no preparations
+for war, financial or military. Moreover,
+a considerable sum of her money was at the
+time deposited in various foreign countries,
+and especially in France, for the service of her
+loans and the payment of State orders placed
+with various firms. This money, on the outbreak
+of hostilities, was automatically immobilized
+by the moratorium, although the
+delicate question whether a moratorium can
+be legally applied to sums thus deposited by
+a foreign Government has not yet been decided
+with finality. As a matter of fact,
+Russia&#8217;s deposits remained where they were,
+and could not be utilized. The consequences
+of this embargo were irksome, and for a time
+threatened to become dangerous. Little by
+little, however, these restrictions were removed,
+partly by the French Government and
+partly by the spontaneous efforts of the banks.</p>
+
+<p>France, too, suffered in a like way from the
+paralysing effect of the moratorium. For the
+French had no less than half a milliard francs
+lent out at interest for short terms in Russia.
+This sum could, as it chanced, have been refunded
+at once without inconvenience, seeing
+that it was liquid in the banks of Petrograd,
+Moscow, Warsaw, and other cities of the Tsardom.
+But as the money was in Russian roubles,<span class='pagenum'><a name="Page_163" id="Page_163">[163]</a></span>
+and all international exchange had ceased, it too
+was incapable of being converted into francs.
+Thus the two allies, although really flush of
+money, were undergoing some of the hardships
+of impecuniosity, and to extricate them
+from this tangle was a task that called for the
+exercise of uncommon ingenuity. This happily
+was forthcoming.</p>
+
+<p>But that was only one aspect of a larger
+and more momentous business which the
+financiers of the Entente Powers had to set
+themselves to tackle. Another of its bearings
+was the effect of the war upon the rate of
+exchange of the rouble, which is of moment
+to all the Allies. Indeed, so long as the conflict
+lasts the smooth working of the financial
+machines of the three States is of as much
+moment to each and all as is the winning of
+battles and the raising of fresh armies. In
+this struggle and at least until the curtain has
+fallen upon the final scene, the maintenance
+of financial credit and the purveyance of ready
+cash, together with all the subsidiary issues to
+which these operations may give rise, should
+be discussed and settled in common.</p>
+
+<p>During the present world combat, which
+has not its like in history, whether we consider
+the issues at stake, the number of troops
+engaged, or the destructive forces let loose,
+the ordinary narrow conceptions of mutual
+assistance, financial and other, with their
+jealous care of flaccid interests, cannot be
+persisted in. The basic principle on which
+it behoves the allied Powers to sustain each
+other&#8217;s vitality can only be the community of
+resources within the limits traced by national
+needs. For our cause is one and indivisible,
+and a success of one of the Allies is a success<span class='pagenum'><a name="Page_164" id="Page_164">[164]</a></span>
+of all. Hence, although we move from different
+starting-points and by unconnected roads,
+we are one community in motive, tendencies
+and sacrifices. The sense of Fate, whose
+deepening shadow now lies across the civilized
+nations of the Old Continent, has evoked the
+sympathies of the partner peoples for each
+other, and temporarily obliterated many of the
+points of artificial distinction which owed their
+existence to national egotism.</p>
+
+<p>Russia&#8217;s resources, then, were immobilized
+at the outset of the war. The minister who
+had spent thirty-five years in the financial
+department of State had resigned shortly
+before. His successor, a man of considerable
+capacity and good intentions, was bereft of
+the help of the best permanent officials of
+the Ministry, who had followed the outgoing
+minister into retirement. And no minister
+ever needed help more sorely than M. Bark.
+For the sudden cessation of all international
+exchange and the consequent immobilization
+of Russia&#8217;s financial reserve, made it temporarily
+impossible for her to satisfy demands
+which could easily have been met under
+circumstances less disconcerting. Here her
+British ally came to the rescue. In the first
+place, the British Government gave its guarantee
+to the Bank of England for the acceptances
+which this bank had discounted. These were
+of two kinds: all acceptances whatever discounted
+before hostilities had broken out, and
+all commercial acceptances discounted since
+the declaration of war. The measure which
+brought this welcome assistance was general in
+its form, but it included Russian bills accepted
+in London. And this discount by the Bank of
+England will continue until one year after the<span class='pagenum'><a name="Page_165" id="Page_165">[165]</a></span>
+close of the campaign. In plain English, that
+means that the greater part of Russia&#8217;s cash
+payments in London will be put off until then.</p>
+
+<p>In Russia&#8217;s dealings with France a like
+trouble made itself felt, but the same remedy
+was not applied. The Government there did
+not offer a State guarantee for acceptances
+by the Banque de France. The reasons for
+this difference of method are immaterial. The
+main point is that some other expedient had to
+be devised whereby Russia could discharge her
+short-term debts to her French creditors. In
+the Tsardom money was available for the
+purpose, but it was in roubles, which would
+first have to be exchanged into francs, and,
+as there was no rate of exchange, this operation
+could be effected, if at all, only at a
+considerable and unnecessary loss.</p>
+
+<p>After several weeks&#8217; negotiations, and a
+thorough study of the question, an agreement
+was struck up between the Imperial Russian
+Bank and the Banque de France, by which
+the latter institution placed at the disposal of
+the former the requisite sum in francs which
+was specially earmarked for the payment of
+Russia&#8217;s private debts in Paris.</p>
+
+<p>The fall in the rouble was partly caused by
+the diminution of Russian exports, in consequence
+of the closing of the Baltic, the Mediterranean,
+and the land routes <i>via</i> Germany and
+Austria. The whole harvest of 1914 lay
+garnered up in the Tsar&#8217;s dominions, where
+prices fell to a low level, while the rouble lost
+one-fourth of its value. Russia&#8217;s interest on
+her foreign debt was thus increased by twenty-five
+per cent. The Western allies, on the other
+hand, were paying huge sums for corn to
+neutrals. As in the long run all Entente<span class='pagenum'><a name="Page_166" id="Page_166">[166]</a></span>
+Powers will have to bear their share of eventual
+losses, it behoved them to prevent or moderate
+them. And this they accomplished to a limited
+extent. It might have been well to go further
+into the matter and consider the advisability
+of entering into closer partnership than was
+established by their concerted efforts in Paris.
+An economic league with privileges for importation
+and exportation accorded to all its
+members&mdash;and only to these&mdash;not merely during
+the war but for a series of years after the conclusion
+of peace, might perhaps have tended
+to solve that and kindred problems. But the
+Allied Governments were constitutionally averse
+to taking long views or adopting comprehensive
+measures.</p>
+
+<p>But the reopening of the Dardanelles and
+the liberation of Russia&#8217;s corn supplies called
+for immediate attention and a concrete plan of
+campaign. The idea of rigging out a naval and
+military expedition had been mooted in London
+before the Financial Conference in Paris, but
+on grounds which do not yet constitute
+materials for public history it was dropped.
+At the Conference the scheme was again taken
+up, and the previous objections to its execution
+having been successfully met it was
+unanimously accepted. It is worth observing
+that the original plan, so far as the present
+writer was cognizant of it, was coherent, adequate
+and feasible, and involved co-ordination
+on the part of all three Allies. It did not contemplate
+a purely naval expedition to the
+Dardanelles, but provided for a mixed force
+of land and sea troops, of which the number
+was considerable and under the conditions
+then prevalent might also have been ample for
+the purpose. Although the Allies had thus<span class='pagenum'><a name="Page_167" id="Page_167">[167]</a></span>
+made what they believed to be adequate provision
+for the success of their project, they
+took measures to render assurance doubly
+sure. They entered into pourparlers with
+Greece, from whose co-operation they anticipated
+advantages which would tell with decisive
+force not only on the outcome of the
+expedition but also on the upshot of the war.</p>
+
+<p>Venizelos was approached and sounded on
+the subject. His authority in his country,
+like that of Bismarck on the eve of his fall,
+was held to be supreme. For he had saved
+Greece from anarchy and the dynasty from
+banishment; he had reorganized the army,
+strengthened the navy, established good government
+at home, extended the boundaries of the
+realm and laid the foundations of a regenerate
+State which might in time reunite under the
+royal sceptre most of the scattered elements of
+Hellenism. His personal relations with King
+Constantine were, however, understood to be
+wanting in cordiality, but the monarch was
+credited with sufficient acumen to perceive
+where the interests of his dynasty and country
+lay, and with common sense enough to allow
+them to be safeguarded and furthered. It was
+on these unsifted assumptions that the Governments
+of the allied Powers went to work.</p>
+
+<p>One redoubtable obstacle to be dislodged
+before any headway could be made was
+Bulgaria&#8217;s opposition. In order to displace
+it, it would be necessary to acquiesce in her
+demands for territory possessed by her neighbours.
+And in view of the intimate relations,
+political and economical, which the military
+empires had established with Bulgaria and
+their firm hold over Ferdinand, even this
+retrocession might prove inadequate for the<span class='pagenum'><a name="Page_168" id="Page_168">[168]</a></span>
+purpose. According to a binding arrangement
+between Serbia and Greece, no territorial
+concession running counter to the settlement
+of the Bucharest Treaty might be accorded to
+Bulgaria by either of the two contracting
+States, without the consent of the other.
+And now Venizelos was asked to signify his
+assent to the abandonment by Serbia of a
+part of the Macedonian province recently
+annexed. This point gained, he was further
+solicited to cede Kavalla and some 2000
+square kilometres of territory incorporated
+with Greece, to Bulgaria, in return for the
+future possession of 140,000 square kilometres
+in western Asia Minor. It was stipulated
+by him and hastily taken for granted by
+the Governments of the Allied States that
+these concessions, together with those which
+Serbia and Roumania were expected to make,
+would move Bulgaria to follow Russia&#8217;s lead
+and enter the arena by the side of the Allies.
+But before Venizelos&#8217;s readiness to compromise
+could be utilized as a practical element of
+the negotiations, the Bulgarian Cabinet had
+applied for and received an advance of 150
+million francs from the two Central empires
+on conditions which, in the judgment of the
+Greek Premier, rendered further dealings with
+that State nugatory.</p>
+
+<p>At the same time King Constantine, yielding
+to German importunity and to personal
+emotions, adopted a series of measures of
+which the effect would have been to discredit
+in the eyes of the nation Venizelos&#8217;s patriotism
+as a minister and his veracity as an individual.
+The upshot of these machinations was the
+voluntary retirement of the Premier from
+public life, the dissolution of the Greek Parliament,<span class='pagenum'><a name="Page_169" id="Page_169">[169]</a></span>
+the accession to power of a Germanophile
+Cabinet, and the frustration of that part
+of the Allies&#8217; plan which had for its object the
+immediate co-operation of Greece and the subsequent
+enlistment of the neighbouring Balkan
+States. As yet, however, Greece was not wholly
+lost to the Entente. Another opportunity presented
+itself which, had it been seized by the
+Governments of Great Britain and France,
+might yet have altered the course of Balkan
+history. But the acceptable offer in which it
+was embodied by the Hellenic Government
+elicited no response whatever in London or
+Paris. This was the last hope. Thenceforward
+the Allies were constrained to rely upon
+their own unaided exertions.</p>
+
+<p>How they approached the problem thus
+modified, and to what degree and in consequence
+of what technical occurrences the
+achievement fell short of reasonable expectations,
+are matters which do not come within
+the scope of this summary narrative of historic
+events. It may suffice to contrast the belief,
+which in March 1915 was widespread&mdash;that the
+Dardanelles would be forced and Constantinople
+captured in the space of four or five
+weeks&mdash;with the circumstance that since then
+the British troops alone had nearly a hundred
+thousand casualties and that in the month of
+January 1916 it became evident that nothing
+could be gained by further prolonging this painful
+effort, and the enterprise was abandoned.</p>
+
+<p>In spite of Turkey&#8217;s hostility, the tone of
+the Allied Press lost little of its buoyancy.
+Japan, who had declared war on Germany
+in August,<a name="FNanchor_78_78" id="FNanchor_78_78"></a><a href="#Footnote_78_78" class="fnanchor">[78]</a> had since captured Kiao Chau<a name="FNanchor_79_79" id="FNanchor_79_79"></a><a href="#Footnote_79_79" class="fnanchor">[79]</a>]
+and that achievement coupled with the results
+<span class='pagenum'><a name="Page_170" id="Page_170">[170]</a></span>of four months&#8217; warfare in Europe were held
+to be promising. For Germany&#8217;s original
+plan of campaign had been foiled, her army
+driven back from Paris, and Austria had been
+defeated in Galicia. If on the debit side
+of the balance nearly all Belgium and nine
+departments of France had fallen into the
+enemy&#8217;s hands, it was some solace to learn
+that the military authorities of the Allies had
+reckoned with all that from the outset. Every
+reverse sustained by their arms turned out to
+have been foreseen and discounted by their
+sagacious leaders. Then, again, it was argued
+that time was on our side, enabling us to
+develop our resources, which are much vaster
+than those of the enemy. To this way of
+looking at the situation the writer of these
+lines opposed another. &#8220;There is,&#8221; he wrote,
+&#8220;a small section of the nation, men conversant
+with the aims, modes of thought, and
+military, financial, and economic resources of
+the enemy, whose gloomy forecasts in the
+past have been unhappily fulfilled in the
+present, and who would gladly see more conclusive
+evidence than has yet been offered that
+everything which can be done at a given
+moment to turn the scale more decisively in
+our favour is being expeditiously undertaken
+by the responsible authorities.</p>
+
+<p>&#8220;They are afraid that the gravity of the
+issues for which we are fighting, the telling
+initial advantages secured by the wily enemy,
+the formidable nature of the difficulties in the
+way of decisive victory, and the tremendous
+sacrifices which we shall all be called upon to
+make before we come in sight of the goal,
+have not yet filtered down into the consciousness
+of any considerable section of the people.<span class='pagenum'><a name="Page_171" id="Page_171">[171]</a></span>&#8221;
+Many months later<a name="FNanchor_80_80" id="FNanchor_80_80"></a><a href="#Footnote_80_80" class="fnanchor">[80]</a> Mr. Lloyd George re-echoed
+that judgment when dealing with the
+Welsh miners&#8217; strike.</p>
+
+<p>But optimism continued to prevail among the
+allied peoples, who through the Press proclaimed
+their conviction that ultimate and complete success
+was a foregone conclusion. At the same
+time, however, an eager desire to hasten this consummation
+found vent among a considerable section
+of politicians, more particularly in France.
+And one of the means by which they hoped to
+attain their goal was by inviting Japan to co-operate
+with the Allies in Europe. As &#8220;invitation&#8221;
+was the term employed, the peculiar
+manner in which the idea was conceived hardly
+needs definition. To the Japanese themselves
+the inference was patent and distasteful. Theretofore
+it had been a dogma that France, Britain
+and Russia, being quite capable of crushing
+Germany and Austria, neither attempted nor
+wished to draw any neutral or Asiatic nation into
+the sanguinary maelstrom of war. And even now
+it was held to be undignified to swerve from that
+doctrine. Help therefore, it was contended,
+was not indispensable to victory, it was merely
+desirable from the humanitarian standpoint
+of putting an early end to the campaign and
+sparing the lives of millions.</p>
+
+<p>French statesmen of the calibre of MM.
+Pichon and Cl&eacute;menceau pushed into the foreground
+of international politics this question
+of Japan&#8217;s military intervention in Europe.
+An organized Press campaign was carried on in
+several of the most prominent daily papers
+and reviews of Paris.<a name="FNanchor_81_81" id="FNanchor_81_81"></a><a href="#Footnote_81_81" class="fnanchor">[81]</a> Striking arguments
+<span class='pagenum'><a name="Page_172" id="Page_172">[172]</a></span>were put forward in support of the thesis that
+Japan&#8217;s co-operation in Europe is desirable,
+and the inference which many readers were
+encouraged to draw was that if the aim had
+not yet been attained, failure should be ascribed
+to the statesmanship of the Allies, which was
+deficient in sagacity, or to their diplomacy,
+which was wanting in resourcefulness. M.
+Pichon, in a masterly article in the <i>Revue</i>,
+wrote: &#8220;I am one of those who hold that
+(Japan) could bring to us here on the European
+continent an incomparable force, and I remain
+convinced that the Japanese Government would
+like nothing better than to respond to the
+appeal of the Triple Entente Powers if these
+requested its collaboration for future combats.&#8221;<a name="FNanchor_82_82" id="FNanchor_82_82"></a><a href="#Footnote_82_82" class="fnanchor">[82]</a></p>
+
+<p>The idea was that Japanese troops should
+come to southern Europe, combine with the
+Serbs and create a new front there. This
+diversion, it was contended, would transform
+the slow and costly siege war and give the
+Allies access to Germany. And these decisive
+results could be achieved by an expedition of
+less than half a million Japanese warriors.</p>
+
+<p>When it was asked what motives could be
+held out to Nippon potent enough to determine
+her to embark on such an enterprise,
+the reply was that she had a positive interest
+to undertake the task. For by contributing
+to the defeat of Germany in Europe she would
+free herself from Teutonic machinations in the
+Far East. The Allies would, of course, have
+to promise her territorial compensation commensurate
+with her sacrifices. And after the
+conclusion of peace Japan would extract from
+Germany not only a sum big enough to cover
+all the expenses of the expedition, but also a
+<span class='pagenum'><a name="Page_173" id="Page_173">[173]</a></span>heavy war indemnity. Over and above this,
+France and Britain would enable her to float
+on easy terms a loan of some three hundred
+millions sterling, as a moderate return for the
+three or four months curtailment of the war
+which costs the Allies nearly a hundred and
+twenty millions a month. Lastly, Japan&#8217;s
+horn would be vastly exalted and her prestige
+increased by her participation in the most
+tremendous conflict recorded in history.</p>
+
+<p>Considered on its merits the enterprise impressed
+one more by its arduousness than by
+the tangible advantages it offered to either
+of the interested parties. The technical difficulties
+were many and well-nigh insurmountable:
+the lack of transports, the distance
+at which the Mikado&#8217;s troops in Europe would
+be from their base of supplies, and the length
+of time that must elapse before they could
+replenish their stores of ammunition, whether
+these were drawn from Tokyo or manufactured
+in Europe. And half a million fighting
+men, however well trained, would represent
+but a drop in the ocean when flung against
+the millions to whom they would be opposed.</p>
+
+<p>Still more decisive was the question of
+motive. Why should the Japanese sacrifice
+their brave soldiers? For the sake of territory
+which they do not yet covet, or of prestige
+which they enjoy in a superlative degree
+already? Although chivalrous and highly impressible
+to everything that can appeal to a
+high-minded people, they are also practical
+and far-sighted and are not to be lured by a
+will-o&#8217;-the-wisp. They had already assisted
+the Allies in the Far East and performed their
+part admirably.</p>
+
+<p>The Japanese army is made up of patriots<span class='pagenum'><a name="Page_174" id="Page_174">[174]</a></span>
+whose lives belong to their country. To their
+spirit of self-sacrifice there are no bounds.
+And that this splendid organism should be implicitly
+set down as a band of mercenaries
+capable of being bought and sold is more than
+its leaders can brook. The idea that mere
+money or money&#8217;s worth could purchase
+Japanese blood is resented by our Far Eastern
+Ally. Between Europe and Asia Japan is the
+connecting link. Her people are endowed
+with some of the highest qualities of the
+European and the Asiatic. Their civilization
+is ancient and refined, and they understand
+and appreciate that of Europe. The chivalry
+of the Samurai is recognized universally.
+Their respect for their plighted word is
+scrupulous. And their tact and moderation
+have been demonstrated time and again
+during their relations first with Russia and
+then with the United States. Japan&#8217;s immediate
+task lies in the Far East, and to that
+region she is minded to confine her activity,
+as was shown by the pressure which she soon
+afterwards put upon China. None the less,
+it is symptomatic of feelings which are still
+inarticulate and of currents which flow beneath
+the surface, that more than once of late the
+Russian Press has called for a defensive and
+offensive alliance between the Tsardom and
+Japan.<a name="FNanchor_83_83" id="FNanchor_83_83"></a><a href="#Footnote_83_83" class="fnanchor">[83]</a> That it will come and exert a noteworthy
+influence on the politics of the world,
+is the firm conviction of the present writer,
+who has had the good fortune to contribute
+more than once to bring the two Powers
+closer together.<a name="FNanchor_84_84" id="FNanchor_84_84"></a><a href="#Footnote_84_84" class="fnanchor">[84]</a></p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_78_78" id="Footnote_78_78"></a><a href="#FNanchor_78_78"><span class="label">[78]</span></a> August 23, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_79_79" id="Footnote_79_79"></a><a href="#FNanchor_79_79"><span class="label">[79]</span></a> November 6, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_80_80" id="Footnote_80_80"></a><a href="#FNanchor_80_80"><span class="label">[80]</span></a> July 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_81_81" id="Footnote_81_81"></a><a href="#FNanchor_81_81"><span class="label">[81]</span></a> In the <i>Petit Journal</i>, the <i>Homme Encha&icirc;n&eacute;</i>, <i>l&#8217;Illustration</i>,
+the <i>Revue Hebdomadaire</i>, and the <i>Revue</i>.</p></div>
+
+<div class="footnote"><p><a name="Footnote_82_82" id="Footnote_82_82"></a><a href="#FNanchor_82_82"><span class="label">[82]</span></a> Fevrier, <i>Revue</i>, 1915, p. 195.</p></div>
+
+<div class="footnote"><p><a name="Footnote_83_83" id="Footnote_83_83"></a><a href="#FNanchor_83_83"><span class="label">[83]</span></a> Cf. <i>Novoye Vremya</i>, June 26, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_84_84" id="Footnote_84_84"></a><a href="#FNanchor_84_84"><span class="label">[84]</span></a> See Hayashi&#8217;s <i>Secret Memoirs</i>.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XIV" id="CHAPTER_XIV"></a>CHAPTER XIV<span class='pagenum'><a name="Page_175" id="Page_175">[175]</a></span></h2>
+
+<h3>READJUSTMENTS</h3>
+
+
+<p><span class="smcap">Deprived</span> of the help for which they had
+looked to Japan, the publicists and politicians
+of the allied countries now centred their hopes
+on the neutrals and on Kitchener&#8217;s great army,
+which was to appear on the scene in spring,
+put an end to the warfare of the trenches, and
+free Belgium from the Teuton yoke. The impending
+belligerency of certain of the neutrals
+would, it was reasonably believed, turn the
+scales in favour of Britain, France and Russia.
+Indeed, Bulgaria alone, owing to her commanding
+geographical position, might have
+achieved the feat more than once during the
+campaign. With the death of King Carol of
+Roumania<a name="FNanchor_85_85" id="FNanchor_85_85"></a><a href="#Footnote_85_85" class="fnanchor">[85]</a> the probability of this consummation
+seemed to verge on certitude. It
+aroused high hopes among the Allies.</p>
+
+<p>The propitious moment seemed to have
+come for the union of all Roumanians under
+the sceptre of the new king. Over three
+million members of that race under Hungarian
+sway had long been waging a losing contest
+for their nationality, language and religion.
+And they entertained no hope of better prospects
+in the future. For in view of her military
+inferiority Roumania, with her little army
+of half a million men, could not indulge in
+energetic protests against the treatment meted
+<span class='pagenum'><a name="Page_176" id="Page_176">[176]</a></span>out to her kindred by Hungary. She had no
+choice but to resign herself to the inevitable.
+Diplomatically, too, she was bound to Austria
+by a secret convention, concluded by the
+Hohenzollern prince who had presided over her
+destinies for a generation. Economically she
+was, as we saw, tied hand and foot to Germany.
+Moreover, it was a matter of common knowledge
+that King Carol would never tolerate
+any radical change in the political orientation
+of the kingdom. To the writer of these lines
+he said so in plain words shortly before he died,
+and he also charged him with a message of
+the same tenor to the Austro-Hungarian
+Minister of Foreign Affairs. But, loyal and
+conscientious, as was his wont, King Carol
+added that if circumstances should ever necessitate
+a radical change in Roumania&#8217;s attitude,
+a younger ruler might usher it in, for whom
+he would not hesitate to make room.</p>
+
+<p>This eventuality arose in September<a name="FNanchor_86_86" id="FNanchor_86_86"></a><a href="#Footnote_86_86" class="fnanchor">[86]</a> when
+the Russians defeated the Austrians, occupied
+Lemberg, threatened Cracow, took up strong
+positions on the Carpathians, and bade fair
+to overrun Hungary. Fate, it seemed, had
+at last overtaken the Habsburg Monarchy,
+which, contrary to general expectation, had not
+succumbed to internal strife on the outbreak
+of the war. And it now lay with Roumania
+and her neighbours to play the part of Fate&#8217;s
+executors. As a matter of fact, Roumania
+suddenly found a sonorous voice in which
+to utter her grievances against the Teutons.
+Senators, deputies, ex-ministers executed a
+<i>chassez croisez</i> movement through France, Italy
+and Britain, delivering diatribes against Austria-Hungary,
+arousing sympathy for Roumania,
+<span class='pagenum'><a name="Page_177" id="Page_177">[177]</a></span>and proclaiming their country&#8217;s resolve to
+strike a blow for justice, liberty and civilization.
+The names of Senator Istrati, M. Diamandy,
+and Dr. Constantinescu were associated with
+feasts of patriotic sentiment and flow of soul.
+Military delegates in Paris made extensive
+purchases of various necessaries for the
+commissariat and sanitary departments of
+the War Ministry, and the date on which the
+gallant Roumanian nation would unsheathe
+its sword in the cause of humanity was unofficially
+announced.</p>
+
+<p>At that moment the country was governed,
+as it still is, by a Premier who might appropriately
+be termed its Dictator, so little influence
+on his policy and methods is wielded by his
+colleagues in the Cabinet. John Bratiano is
+the sole trustee of the nation at the most
+critical period of its history. The son of an
+eminent and deservedly respected statesman,
+this politician entered public life encircled by
+the halo of his father&#8217;s prestige. Gifted with
+considerable powers, he owes more to birth
+than to hard work and self-discipline. Entering
+early upon his valuable political heritage
+he found all paths smoothed, all doors open
+to him. The leadership of the most influential
+parliamentary party fell to him at an age
+when other politicians are painfully struggling
+with the preliminary difficulties in the way of
+success, and John Bratiano became the ruler
+of Roumania without an effort. Descended
+from an illustrious stock, he is penetrated
+with an overmastering sense of his own personal
+responsibility, from which the principal relief
+to be obtained lies in the indefinite prolongation
+of his liberty of choice. Finality in
+matters of momentous decision appears painful<span class='pagenum'><a name="Page_178" id="Page_178">[178]</a></span>
+to him, and the standard of success which
+would fairly be applied to the policy of the
+ordinary statesman seems too lax for the man
+whose shoulders are pressed down with the
+weight of the kingdom as it is and the kingdom
+yet to come. Hence his anxiety to drive a
+brilliant bargain with the Allies and to leave
+no hold for hostile criticism at home. Like
+most patriots placed in responsible positions,
+he is bent on furthering what he considers
+the interests of his country in his own way,
+and honestly convinced that the right way is
+his own, he has hitherto declined to share
+responsibility with the Opposition&mdash;which disapproves
+his Fabian policy&mdash;even though it
+numbers among its members a real statesman
+of the calibre and repute of Take Jonescu.</p>
+
+<p>At first M. Bratiano swam with the stream.
+He assured foreign diplomatists, eminent
+Italians and others, that Roumania had decided
+to throw in her lot with the Allies. And
+his declarations were re-echoed by his colleagues.
+These statements were duly transmitted to the
+various Cabinets interested, and the entry of
+Roumania into the struggle was reckoned with
+by all the Allied Powers. On the strength of
+these good intentions one of the Allies was
+asked to advance a certain sum of money for
+military preparations, and the request was
+complied with. Italy was approached and
+treated as a trusty confidant, and a tacit arrangement
+was come to with her by which
+each of the two Latin States was expected to
+communicate with the other as soon as it
+should decide to take the field. In fine, it was
+understood that Roumania would join in at
+the same time as Italy.</p>
+
+<p>Cognizant of those intentions and preparations<span class='pagenum'><a name="Page_179" id="Page_179">[179]</a></span>
+the Allies rejoiced exceedingly. The
+prospect that opened out before them appeared
+cheerful. Kitchener&#8217;s great army was to take
+the offensive in spring, Roumania&#8217;s co-operation
+was due some months or weeks previously,
+and the forcing of the Dardanelles might be
+counted upon as a corollary, to say nothing
+of the adherence of Greece and Bulgaria to
+the allied cause. But Germany and Austria
+lost nothing of their self-confidence. Clumsy
+though their professional diplomacy might
+be, their economico-diplomatic campaign had
+left little to be desired. Its fruits were ripe.
+They had firmly knitted the material interests
+of the little Latin State with their own, and
+could rely on the backing of nearly every
+supporter of Bratiano&#8217;s Cabinet in the country.
+But leaving nothing to chance, they now put
+forth the most ingenious, persistent and costly
+efforts to maintain the ground they had won.
+Influential newspapers were bought or subsidized,
+new ones were founded, public servants
+were corrupted, calumnies were launched
+against the Allies and their supporters, and a
+nucleus of military men ranged themselves
+among the opponents of intervention.</p>
+
+<p>M. Bratiano suddenly turned wary and
+circumspect. His talk was now of the necessity
+of time for preparations, of the divergence
+of views between his Cabinet and that of the
+Tsar, and of the inadequacy of the motives
+held out to his country for belligerency.
+Thereupon negotiations began between Russia
+and Roumania, which dragged on endlessly.
+What the Roumanian Premier said to the
+Russian Minister was practically this: &#8220;The
+choice between belligerency and neutrality
+must be determined by the balance of territorial<span class='pagenum'><a name="Page_180" id="Page_180">[180]</a></span>
+advantages offered by each. And the terms
+must be adequate and guaranteed.&#8221; The conditions
+which, according to him, answered to
+this description consisted of the cession of
+all Transylvania, part of the Banat of Temesvar,
+the Roumanian districts of Bukovina,
+and of the province of Crishana and Marmaros.</p>
+
+<p>About Transylvania there was no dissentient
+voice: it was admitted that it ought by right
+to form part of the Roumanian kingdom. The
+dispute between Bucharest and Petrograd
+hinged on a zone of the Banat and a strip of
+Bukovina. The Tsar&#8217;s Government admitted
+that Bukovina might be annexed by Roumania
+as far as the river Seret, but not farther
+north; whereas the Roumanian Premier insisted
+on obtaining the promise of a zone the
+northern boundary of which would be formed
+by the river Pruth, and would therefore include
+the important city of Czernowitz, which
+is the capital of the province. The divergence
+of opinion arising out of this demand for the
+district of Pancsova in the Banat of Temesvar
+raised a formidable obstacle to an understanding,
+for the claim runs counter to the principle
+of nationality somewhat pedantically laid down
+by the Allied Powers. Parenthetically, it is
+worth remembering that hard-and-fast principles
+which lead insensibly to dogmatism
+cannot be too sedulously avoided by a Government.
+Politics must assuredly have its ideals,
+but compromise is the method by which alone
+it can approach them. The Allies have already
+been constrained by tyrannous circumstance
+to entertain important exceptions to their
+principle of nationality which was invoked
+against Italy&#8217;s claim to Dalmatia, and in their
+own best interests they might have compromised<span class='pagenum'><a name="Page_181" id="Page_181">[181]</a></span>
+on the subject of Bulgaria&#8217;s claims
+to Macedonia, and of Roumania&#8217;s pretensions
+to annex certain of the disputed territories
+inhabited by Serbs and Ruthenians.</p>
+
+<p>In truth, Roumania&#8217;s attitude, of which at
+various times conflicting accounts have been
+given, appears to be what one might reasonably
+expect, considering the sympathies of the
+nation, the interests of the State, and the
+requirements of the conjuncture. Looking at
+it from the view-point of the outsider, it would
+perhaps have been to her interest to join the
+Allies when the Russians, driving the Magyars
+and the Austrians before them, could have
+played the part of right wing to her armies. It
+was generally believed later on that she would
+unsheathe the sword at the same time as Italy.
+Informal announcements to that effect are
+known to have been made to certain official
+representatives of that country. And her
+failure to stand by these spontaneous declarations
+was the cause of profound disappointment
+to the Entente and of a considerable
+loss of credit to herself. These facts and conclusions
+appeal with irresistible force to the
+uninitiated, and in especial to those among
+them who are citizens of the belligerent States.</p>
+
+<p>But there is another aspect of the matter
+which, whatever effect its disclosure may have
+on the general verdict, is at any rate well worth
+considering. According to this version, which
+is based on what actually passed between
+Bucharest and the capitals of the Entente
+Powers, the central idea of Roumania&#8217;s strivings
+was to achieve national unity together
+with defensible military frontiers as far as
+appeared feasible, and to obtain in advance
+implicit assurances that the Entente Powers,<span class='pagenum'><a name="Page_182" id="Page_182">[182]</a></span>
+if victorious, would allow her claims without
+demur or delay. The territories occupied by
+the Roumanians of Transylvania, the Bukovina,
+and the Banat were to be united under
+the sceptre of the King, including the strip
+which is contiguous to Belgrade. To this the
+Slavs demurred because Belgrade could then
+no longer remain the Serbian capital. But
+of these demands M. Bratiano would make
+no abatement, nor in the promise of the
+Entente to fulfil them would he admit of
+any ambiguity. Roumania&#8217;s experience in
+1877, under M. Bratiano&#8217;s father, when, after
+having helped Russia to defeat the Turks, she
+was deprived of Bessarabia and obliged to
+content herself with the Dobrudja, was the
+main motive for this striving after definite
+conditions, while her readiness to look upon
+that loss of Bessarabia as final moved her to
+demand every rood of Austro-Hungarian territory
+which was inhabited by her kinsmen or
+had belonged to them in bygone days. These
+motives were inconsistent with the mooting
+of the Bessarabian question, and the statement
+so often made in the Press that Roumania
+demanded, and still demands, that lost
+province from Russia are absolutely groundless.
+The subject was never once broached.</p>
+
+<p>It has been argued that although these
+claims to recompense may have been reasonable
+enough in themselves, to have made
+them conditions of Roumania&#8217;s participation
+in the war on the side of the Allies smacked
+more of the pettifogger than of the statesman.
+In a tremendous struggle like the present for
+lofty ideals this bargaining for territorial advantages
+showed, it was urged, the country
+and the Government in a sinister light. To<span class='pagenum'><a name="Page_183" id="Page_183">[183]</a></span>
+this criticism the friends of M. Bratiano reply
+that most of the belligerents set the example,
+with far less reason than Roumania could
+plead. Italy, for instance, had made her
+military co-operation conditional on the promise
+of a large part of Dalmatia, as well as
+the <i>terra irredenta</i>, and Russia insisted upon
+having her claim to Constantinople allowed.
+Why, it is asked, should Roumania be blamed
+for acting similarly and on more solid grounds?</p>
+
+<p>During the first phase of the conversations
+which were carried on between Roumania
+and the Entente there would appear to have
+been no serious hitch. They culminated in
+a loan of &pound;5,000,000 advanced in January
+1915. In the following month they ceased
+and were not resumed until April, when
+M. Bratiano was informed that it would
+facilitate matters if he would discuss terms
+with the Tsar&#8217;s Government. By means of
+an exchange of notes an arrangement had
+been come to by which Roumania was to have
+&#8220;the country inhabited by the Roumanians
+of Austria-Hungary&#8221; in return for her neutrality
+and on the express condition that she
+should occupy them <i>par les armes</i> before the
+close of the war. I announced this agreement
+in the summer of 1915 and, commenting on the
+controversy to which it gave rise, pointed out
+that it amounted only to a promise made by
+Russia and an option given to Roumania, which
+the latter state was at liberty to take up or
+forgo as it might think fit. It bound her to
+nothing. Consequently, to accuse her of having
+broken faith with Italy or the Entente is
+to betray a complete lack of acquaintance with
+the facts.</p>
+
+<p>It was only when Roumania&#8217;s military participation<span class='pagenum'><a name="Page_184" id="Page_184">[184]</a></span>
+was solicited that difficulties began
+to make themselves felt. And they proved
+insurmountable. So long as the Russian armies
+were victorious Roumania&#8217;s demands were
+rejected. When the Tsar&#8217;s troops, for lack of
+ammunition, were obliged to retreat, concessions
+were made very gradually, slight concessions
+at first, which became larger as the
+withdrawal proceeded, until finally&mdash;the Russian
+troops being driven out&mdash;everything was
+conceded, when it was too late. For with the
+departure of the Russian armies Roumania
+was so exposed to attack from various sides,
+and so isolated from her protectors, that her
+military experts deemed intervention to be
+dangerous for herself and useless to the Allies.</p>
+
+<p>In Italy, it has been said with truth, the
+conviction prevailed that Roumania would
+descend into the arena as soon as the Salandra
+Cabinet had declared war against Austria, and
+a good deal of disappointment was caused by
+M. Bratiano&#8217;s failure to come up to this expectation.
+But the expectation was gratuitous
+and the disappointment imaginary. In an
+article written at the time I pointed out that
+one of the mistakes made by the Entente
+Powers consisted in the circuitous and clumsy
+way in which they negotiated with Roumania.
+The spokesman and guardian of Italy during
+the decisive conversations with the Entente was
+the Foreign Minister, Baron Sonnino, the silent
+member of the Cabinet. Now, this turned out
+to be a very unfortunate kind of guardianship,
+which his ward subsequently repudiated with
+reason. For one effect of his taciturnity&mdash;the
+Roumanians ascribed it to his policy&mdash;was to
+keep Roumania in the dark about matters of
+vital moment to her of which she ought to have<span class='pagenum'><a name="Page_185" id="Page_185">[185]</a></span>
+had cognizance. Another was to treat with
+the Entente Governments as though Roumania
+had sold her will and private judgment to the
+Salandra Cabinet. This, however, is a curious
+story of war diplomacy which had best be left
+to the historian to recount. One day it will
+throw a new light upon matters of great
+interest which are misunderstood at present.
+Roumania&#8217;s co-operation then, as now, would
+have been of much greater help to the Allies
+than certain other results which were secured
+by sacrificing it. And sacrificed it was quite
+wantonly. We are wont to sneer at Germany&#8217;s
+diplomacy as ridiculously clumsy, and to
+plume ourselves on our own as tactful and
+dignified. Well, if one were charged with
+the defence of this thesis, the last source to
+which one would turn for evidence in support
+of it is our diplomatic negotiations with
+M. Bratiano&#8217;s Cabinet.</p>
+
+<p>In the light of this <i>expos&eacute;</i> the severe judgments
+that have been passed on the policy of
+the Roumanian Cabinet may have to be revised.</p>
+
+<p>The crux of the situation was the attitude
+of Bulgaria. Bulgaria, a petty country with a
+population inferior to that of London, impregnated
+with Teutonism and ruled by an Austro-Hungarian
+officer who loathes the Slavs, had
+throughout this sanguinary clash of peoples
+rendered invaluable services to the Teutons
+and indirectly inflicted incalculable losses on
+the civilized nations of the globe. This
+tremendous power for evil springs from her
+unique strategic position in Eastern Europe.
+At any moment during the conflict her active
+assistance would have won Constantinople and
+Turkey for the Allies, and if proffered during
+one of several particularly favourable conjunctures<span class='pagenum'><a name="Page_186" id="Page_186">[186]</a></span>
+might have speedily ended the war.
+But so tight was Germany&#8217;s grip on her that
+she not only withheld her own aid, but actually
+threatened to fall foul of any of the Balkan
+States that should tender theirs. It is, therefore,
+no exaggeration to affirm that the duration
+of this war and some of the most doleful events
+chronicled during the first year of its prosecution,
+are due to the insidious behaviour of
+Ferdinand of Coburg and his Bulgarian coadjutors.
+One may add that this behaviour
+constitutes a brilliant and lasting testimony
+to the foresight and resourcefulness of German
+diplomacy. It is one of the products of
+German organization as distinguished from
+French and British individualism.</p>
+
+<p>While Bulgaria was thus holding the menace
+of her army over Roumania&#8217;s head, and M.
+Bratiano stood irresolute between belligerency
+and neutrality, the German and Austrian
+armies were effectively co-operating with German
+and Austrian diplomatists. They compelled
+the Russians to withdraw from Eastern
+Prussia,<a name="FNanchor_87_87" id="FNanchor_87_87"></a><a href="#Footnote_87_87" class="fnanchor">[87]</a> and from a part of Galicia<a name="FNanchor_88_88" id="FNanchor_88_88"></a><a href="#Footnote_88_88" class="fnanchor">[88]</a>] later on
+from Lodz, from the Masurian Lakes and
+Bukovina.<a name="FNanchor_89_89" id="FNanchor_89_89"></a><a href="#Footnote_89_89" class="fnanchor">[89]</a> Gradually Roumania saw herself
+bereft of what would have been her right wing
+and cover, and her military men, the most
+influential of whom had been against intervention
+from the first, now declared the
+moment inauspicious on strategical grounds.
+Thereupon the oratorical representatives of
+the Roumanian people consoled themselves
+with the formula that Roumanian blood would
+be shed only for Roumanian interests, and that
+when a fresh turn of Fortune&#8217;s wheel should
+<span class='pagenum'><a name="Page_187" id="Page_187">[187]</a></span>bring the Russian troops back to Bukovina and
+Galicia, the gallant Roumanians would strike a
+blow for their country and civilization.</p>
+
+<p>It would be unfruitful to enter into a detailed
+examination of the efforts of the Allies to
+detach the neutrals, and in especial the Balkan
+States, from the Military Empires with which
+their interests had been elaborately bound
+up. But in passing, one may fairly question
+the wisdom of their general plan, which
+established facts&mdash;still fragmentary in character&mdash;enable
+us to reconstruct. The resuscitation
+of the Balkan League and the mobilization of
+its forces against Turkey was an enterprise
+from which the greatest statesmen of the
+nineteenth century, were they living, would
+have recoiled. For it presupposes an ascetic
+frame of mind among the little States, which
+in truth hate each other more intensely than
+they ever hated the Turks. The first condition
+of success, were success conceivable,
+would have been the abrogation of the Treaty
+of Bucharest and the redistribution of the
+territories, which its authors had divided with
+so little regard for abstract justice and the
+stability of peace. And to this procedure,
+which Bulgaria ostentatiously demanded, Serbia
+entered a firm demurrer in which she was joined
+by Greece. For Serbs and Bulgars have always
+been hypnotized by Macedonia. Their gaze
+is fixed on that land as by some magic fascination,
+which interest and reason are powerless
+to break. They think of the future development,
+nay of the very existence of their
+respective nations, as indissolubly intertwined
+with it. To lose Macedonia, therefore, is to
+forfeit the life-secret of nation. Hence Bulgaria
+obstinately refused to abate one jot of<span class='pagenum'><a name="Page_188" id="Page_188">[188]</a></span>
+her demands, while Serbia was firmly resolved
+to reject them. It mattered nothing that the
+fate of all Europe and of these two States was
+dependent on compromise. The little nations
+took no account of the interests at stake.
+Each, like Sir Boyle Roche, was ready to
+sacrifice the whole for a part, and felt proud
+of its wisdom and will-power.</p>
+
+<p>Under these circumstances the scheme of a
+resuscitated Balkan League should have been
+accounted a political chimera, whereas politics
+is the art of the possible. What might perhaps
+have been envisaged with utility was the
+selection of the less mischievous and more
+helpful of the unwelcome alternatives with
+which the allied diplomacy was confronted.
+If, for instance, it could have been conclusively
+shown that Bulgaria&#8217;s help was indispensable,
+adequate and purchasable, the plain course
+would have been to pay handsomely for that.
+However high the price, it would have been
+more than compensated by the positive and
+negative gains. If, on the other hand, Bulgaria
+were recalcitrant and inexorable, the
+Tsardom which protected her might to some
+good purpose have become equally so, and
+displayed firmness and severity. It has been
+said that Russia cannot find it in her heart
+either to coerce Serbia or to punish Bulgaria.
+If this be a correct presentation of her temper&mdash;and
+in the past it corresponded to the reality&mdash;then
+the Allies are up against an insurmountable
+obstacle which must be looked
+upon as one of the instruments of Fate.</p>
+
+<p>Our Press is never tired of repeating that the
+neutrals have a right to think only of their
+own interest and to frame their policy in
+strict accordance with that, whether it draws<span class='pagenum'><a name="Page_189" id="Page_189">[189]</a></span>
+them towards the Allies or the Teuton camp.
+To this principle exception may be taken. If
+it be true that the European community, its
+civilization and all that that connotes are in
+grave danger, then every member of that
+community is liable to be called on for help,
+and is bound to tender it. In such a crisis
+it is a case of every one being against us who
+is not actively with us. Otherwise the contention
+that this is no ordinary war but a
+criminal revolt against civilization, is a mere
+piece of claptrap and is properly treated as
+such by the neutrals. But there is another
+important side of the matter which has not
+yet been seriously considered. If the neutrals
+are warranted in ignoring the common
+interest and restricting themselves to the
+furtherance of their own, it is surely meet
+that the Allies, too, should enjoy the full
+benefits of this principle and frame their
+entire policy&mdash;economic, financial, political and
+military&mdash;with a view to promoting their common
+weal, and with no more tender regard
+for that of the non-belligerent States than is
+conducive to the success of their cause and
+in strict accordance with international law.
+The application of this doctrine would find its
+natural expression in the creation of an economic
+league of the Allied States with privileges
+restricted to its members. It may not be
+irrelevant to state that during one phase of
+the war combined action of the kind alluded
+to would have given the Allies the active help
+of one or two neutral countries. Nay, if the
+exportation of British coal alone had been
+restricted to the belligerents, the hesitation of
+those countries between neutrality and belligerency
+would have been overcome in a month.<span class='pagenum'><a name="Page_190" id="Page_190">[190]</a></span></p>
+
+<p>Italy and Bulgaria, being the two nations
+whose attitude would in the judgment of
+German statesmen have the furthest reaching
+consequences on the war, were also the object
+of their unwearied attentions. And every
+motive which could appeal to the interest or
+sway the sentiment of those peoples was set
+before them in the light most conducive to
+the aims of the tempter. Those painstaking
+efforts were duly rewarded. Bulgaria, before
+abandoning her neutrality, had contributed
+more effectively even than Turkey to retard
+the Allies&#8217; progress and to facilitate that of
+their adversaries.</p>
+
+<p>For Italy&#8217;s restiveness Germany was prepared,
+but it was reasonably hoped that with
+a mixture of firmness, forbearance and generosity
+that nation would be prevailed upon to
+maintain a neutrality which the various agents
+at work in the peninsula could render permanently
+benevolent. And from the fateful
+August 3, 1914, down to the following May,
+the course of events attested the accuracy of
+this forecast. At first all Italy was opposed
+to belligerency. Deliberate reason, irrational
+prejudice, religious sentiment, political calculation,
+economic interests and military considerations
+all tended to confirm the population
+in its resolve to keep out of the sanguinary
+struggle. The Vatican, its organs and agents,
+brought all their resources to bear upon devout
+Catholics, whose name is legion and whose
+immediate aim was the maintenance of peace
+with the Central empires. The commercial
+and industrial community was tied to Germany
+by threads as fine, numerous and binding as
+those that rendered Gulliver helpless in the
+hands of the Lilliputians. The common people,<span class='pagenum'><a name="Page_191" id="Page_191">[191]</a></span>
+heavily taxed and poorly paid, yearned for
+peace and an opportunity to better their
+material lot. The Parliament was at the beck
+and call of a dictator who was moved by party
+interests to co-operate with the Teutons, while
+the Senate, which favoured neutrality on independent
+grounds, had made it a rule to
+second every resolution of the Chamber. In a
+word, although Italy might wax querulous and
+importunate, her complaints and her demands
+would, it was assumed, play a part only in the
+scheme of diplomatic tactics, but would never
+harden into pretexts for war.</p>
+
+<p>For it was a matter of common knowledge
+that departure from the attitude of neutrality,
+whatever its ultimate effects&mdash;and these would
+certainly be fateful&mdash;must first lead to a long
+train of privations, hardships and economic
+shocks, which would subject the limited staying
+powers of the nation&mdash;accustomed to peace,
+and only now beginning to thrive&mdash;to a searching,
+painful and dangerous test. From a
+Government impressed by this perspective, and
+conscious of its responsibility, careful deliberation,
+rather than high-pitched views, were
+reasonably expected.</p>
+
+<p>And the attitude of the Cabinet since August
+1914 had been marked by the utmost caution
+and self-containment. Contemplated from a
+distance by certain of the Allies whose attention
+was absorbed by the political aspect of the
+matter, this method of cool calculation seemed
+to smack of hollow make-believe. Why, it was
+asked, should Italy hold back or weigh the
+certain losses against the probable gains, seeing
+that she would have as allies the two most
+puissant States of Europe, and the enormous
+advantage of sea power on her side?</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_85_85" id="Footnote_85_85"></a><a href="#FNanchor_85_85"><span class="label">[85]</span></a> October 10, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_86_86" id="Footnote_86_86"></a><a href="#FNanchor_86_86"><span class="label">[86]</span></a> September 8, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_87_87" id="Footnote_87_87"></a><a href="#FNanchor_87_87"><span class="label">[87]</span></a> October 13, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_88_88" id="Footnote_88_88"></a><a href="#FNanchor_88_88"><span class="label">[88]</span></a> December 6, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_89_89" id="Footnote_89_89"></a><a href="#FNanchor_89_89"><span class="label">[89]</span></a> February 15, 1915.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XV" id="CHAPTER_XV"></a>CHAPTER XV<span class='pagenum'><a name="Page_192" id="Page_192">[192]</a></span></h2>
+
+<h3>THE POSITION OF ITALY</h3>
+
+
+<p><span class="smcap">But</span> intervention in the war was not one of
+those ordinary enterprises on which Italy
+might reasonably embark, after having carefully
+counted up the cost in men and money
+and allowed a reasonable margin for unforeseen
+demands on both. In this venture the liabilities
+were unlimited, whereas the resources of
+the nation were bounded, the limits being much
+narrower than in the case of any other Great
+Power. And this was a truly hampering circumstance.
+Serious though it was, however,
+it would hardly avail to deter a nation from
+accepting the risks and offering up the sacrifices
+requisite, if the motive were at once
+adequate, peremptory and pressing.</p>
+
+<p>But Italy, unlike the Allies, had had no
+strong provocation to draw the sword. Grievances
+she undoubtedly possessed in plenty.
+She had been badly dealt with by her allies,
+but forbearance was her rule of living. For
+nearly a generation she had been a partner of
+the two militarist States, yet she shrank from
+severing her connection with them, even when
+they deliberately broke their part of the compact.
+This breach of covenant not only dispensed
+her from taking arms on their side,
+but would also, owing to the consequences it
+involved, have sufficed to warrant her adhesion
+to the Entente Powers. But for conclusive<span class='pagenum'><a name="Page_193" id="Page_193">[193]</a></span>
+reasons&mdash;lack of preparedness among
+others&mdash;she condoned all affronts and drew the
+line at neutrality.</p>
+
+<p>The country was absolutely unequipped for
+the contest. The Lybian campaign had disorganized
+Italy&#8217;s national defences and depleted
+her treasury. Arms, ammunition, uniforms,
+primary necessaries&mdash;in a word, the means of
+equipping an army&mdash;were lacking. The expenditure
+of &pound;80,000,000 sterling during the conflict
+with Turkey rendered the strictest economy
+imperative, and so intent was the Cabinet on
+observing it that the first candidate for the post
+of War Minister declined the honour, because
+of the disproportion between the sum offered
+to him for reorganization and the pressing needs
+of the national defences.</p>
+
+<p>The outbreak of the present conflict, therefore,
+took Italy unawares and found her in a
+condition of military unpreparedness which,
+if her participation in the war had been a
+necessity, might have had mischievous consequences
+for the nation. Availing herself of
+this condition of affairs and of the pacific temper
+of the Italian people, Germany reinforced
+those motives by the prospect of Corsica, Nice,
+Savoy, Tunis and Morocco in return for active
+co-operation. But the active co-operation of
+Italy with Austria and Germany was wholly
+excluded. The people would have vetoed it
+as suicidal. The utmost that could be attempted
+was the preservation of her neutrality,
+and that this object would be attained seemed
+a foregone conclusion.</p>
+
+<p>And it is fair to state that this belief was well
+grounded. When war was declared and Italy
+was summoned to march with her allies against
+France, Britain and Russia, she repudiated her<span class='pagenum'><a name="Page_194" id="Page_194">[194]</a></span>
+obligation on the ground that the clause in
+their treaty provided for common action in
+defence only, not for co-operation in a war of
+aggression, such as was then about to be
+waged. And that plea could not be rebutted.
+This preliminary dissonance to which the
+Central empires resigned themselves was followed
+by disputes which turned upon the interpretation
+of the compensation clause of the
+Treaty, upon Italy&#8217;s territorial demands and
+Austria&#8217;s demurrers. Thus from first to last
+the issues raised were of a diplomatic order,
+and if German statesmen had received carte
+blanche to settle them, it is not improbable
+that a compromise would have been effected
+which would have left the Italian Government
+no choice but to persevere in its neutrality.</p>
+
+<p>And German statesmen strove hard to wrest
+the matter from their ally and take it into
+their own hands, but were only partially successful.
+Both they and the Austrians selected
+their most supple and wily diplomatists to
+conduct the difficult negotiations. Prince
+B&uuml;low was appointed German Ambassador to
+King Victor&#8217;s Government, Baron Macchio
+supplanted Merey in Rome, but the most
+sensational change effected was the substitution
+of Baron Burian for Count Berchtold
+in the Austrian Ministry of Foreign Affairs.<a name="FNanchor_90_90" id="FNanchor_90_90"></a><a href="#Footnote_90_90" class="fnanchor">[90]</a>
+This latter event was construed by the European
+public as the foretoken of a new and
+far-resonant departure in Austria&#8217;s treatment
+of international relations. In reality it was
+hardly more than the withdrawal from public
+business of a tired statesman <i>malgr&eacute; lui</i> who
+had persistently sought to be relieved of his
+charge ever since his first appointment. Count
+<span class='pagenum'><a name="Page_195" id="Page_195">[195]</a></span>Berchtold&#8217;s name is inseparably associated with
+events of the first magnitude for his country
+and for Europe, but on the creation or moulding
+of which he had little appreciable part.
+It is hardly too much to say that if, during
+the period while he held office, the Ministry
+of Foreign Affairs had been without a head,
+the mechanism would have worked with no
+serious hitch, and with pretty much the same
+results which we now behold. For he was
+but the intermediary between the mechanism
+and the real minister, who invariably appeared
+as a <i>deus ex machina</i> in all the great
+crises of recent years, and who was none other
+than the Emperor Francis Joseph himself.</p>
+
+<p>Count Berchtold was a continuator. He
+endeavoured under adverse circumstances to
+carry out the feasible schemes of his predecessor,
+but the obstacles in his way proved
+insurmountable. He is a straightforward,
+truthful man, and in the best sense of the word
+a gentleman. The greatest achievement to
+which he can point during his tenure of power
+is the disruption of the Balkan League. Having
+had an opportunity of seeing the working of
+the scheme at close quarters, I may say that it
+was ingenious. Pacific by temperament and
+conviction, he co-operated successfully with
+the Emperor to ward off a European conflict
+more than once. But from the day when Count
+Tisza won over Franz Josef to the ideas of
+Kaiser Wilhelm, Count Berchtold&#8217;s occupation
+was gone.</p>
+
+<p>His successor, Baron Burian, entered upon
+his office with an established reputation and a
+political programme. But so immersed were
+the Allies in the absurd illusions which ascribed
+disorganization to Germany and discord to<span class='pagenum'><a name="Page_196" id="Page_196">[196]</a></span>
+the two imperial Governments, that Burian&#8217;s
+appointment was read by many as an omen
+that Austria-Hungary was already scheming
+for a separate peace. Events soon showed that
+the disorganization was not in Germany nor
+the discord on the side of the Central Empires.</p>
+
+<p>Meanwhile the Italian Minister of Foreign
+Affairs, Di San Giuliano, had succumbed to a
+painful illness, which, however, did not prevent
+him from writing and reading dispatches down
+to the very eve of his death.<a name="FNanchor_91_91" id="FNanchor_91_91"></a><a href="#Footnote_91_91" class="fnanchor">[91]</a> His successor
+was Sydney Sonnino, perhaps the most upright,
+rigid and taciturn man who has ever had
+to receive foreign diplomatists and discourse
+sweet nothings in their ears. Devoid of eloquence,
+of personal magnetism and of most of
+the arts deemed essential to the professional
+diplomatist, he is a man of culture, eminent
+talents, fervid zeal for the public welfare,
+steady moral courage, and rare personal integrity.
+Pitted against the supple and versatile
+B&uuml;low, his influence might be likened to
+that of the austere philosopher gazing at the
+incarnate Lamia.</p>
+
+<p>Between these two statesmen conversations
+began<a name="FNanchor_92_92" id="FNanchor_92_92"></a><a href="#Footnote_92_92" class="fnanchor">[92]</a> under favourable auspices. One of the
+conditions to which each of them subscribed
+was the maintenance of rigorous secrecy until
+the end of their labours. And it was observed
+religiously until Germany&#8217;s &#8220;necessity&#8221;
+seemed to call for the violation of the
+pledge, whereupon it was profitably violated.
+Baron Sonnino told the German plenipotentiary
+that &#8220;the majority of the population
+was in favour of perpetuating neutrality, and
+<span class='pagenum'><a name="Page_197" id="Page_197">[197]</a></span>gave its support to the Government for this
+purpose, provided always that by means of
+neutrality certain national aspirations could be
+realized.&#8221;<a name="FNanchor_93_93" id="FNanchor_93_93"></a><a href="#Footnote_93_93" class="fnanchor">[93]</a> B&uuml;low at once scored an important
+point by taking sides with Italy against Austria
+on the disputed question whether Clause VII
+of the Triple Alliance entitled the former
+country to demand compensation for the upsetting
+of the Balkan equilibrium caused by
+Austria&#8217;s war on Serbia. That view and its
+practical corollaries set the machinery going.
+The Austrian Government abandoned its <i>non
+possumus</i>, and discussed the nature and extent
+of the compensation alleged to be due. But
+it never traversed the distances between words
+and acts.</p>
+
+<p>One of the many wily devices by which the
+German Ambassador sought to inveigle the
+Consulta into forgoing its right to resort to
+war was employed within three weeks of the
+beginning of negotiations. B&uuml;low confidentially
+informed Sonnino that Germany was
+sending Count von Wedel to Vienna to persuade
+the Cabinet there to cede the Trentino
+to Italy, and asked him whether, if Austria
+acquiesced, it would not be possible to announce
+to the Chamber that the Italian Government
+had already in hand enough to warrant it in
+assuming that the main aspirations of the nation
+would be realized.<a name="FNanchor_94_94" id="FNanchor_94_94"></a><a href="#Footnote_94_94" class="fnanchor">[94]</a> &#8220;Absolutely impossible,&#8221;
+was Sonnino&#8217;s reply. But the Dictator Giolitti,
+whom Prince B&uuml;low took into partnership, was
+more confident and pliable. This parliamentary
+leader, whose will was law in his own country
+and whose life-work consisted in eliminating
+<span class='pagenum'><a name="Page_198" id="Page_198">[198]</a></span>ethical principles from politics, made known
+his belief&mdash;nay, his positive knowledge&mdash;that
+by diplomatic negotiations the nation could
+obtain concessions which would dispense it
+from embarking on the war. This pronouncement
+had a widespread effect on public opinion,
+confirming the prevalent belief that Austria
+would satisfy Italy&#8217;s claims.</p>
+
+<p>There was no means of verifying those
+announcements, for the Rome Government
+scrupulously observed its part of the compact,
+and allowed no news of the progress of the
+conversations to leak out. In fact, it went
+much farther and deprived the Italian people
+systematically of all information on the subject
+of the crisis. Consequently the poisoners of
+the wells of truth had a facile task.</p>
+
+<p>It was no secret, however, that the cession
+of the Trentino would not suffice to square
+accounts. Italy&#8217;s land and sea frontiers were
+strategically so exposed that it was sheer impossible
+to provide adequately for their defence.
+And this essential defect rendered the
+nation semi-dependent on its neighbour and
+adversary and powerless to pursue a policy of
+its own. For half a century this dangerous
+flaw in the national edifice and its pernicious
+effects on Italy&#8217;s international relations had
+been patiently borne with, but Baron Sonnino
+considered that the time for repairing it and
+strengthening the groundwork of peace had
+come. And as he had not the faintest doubt
+that technically as well as essentially he had
+right on his side, he pressed the matter vigorously.
+Austrian diplomacy, dense and dilatory
+as ever, argued, protested, temporized. In
+these tactics it was encouraged by the knowledge
+that Italy was unequipped for war, and<span class='pagenum'><a name="Page_199" id="Page_199">[199]</a></span>
+by the delusion that the remedial measures of
+reorganization then going forward were only
+make-believe. The Italian Government, on
+the other hand, convinced that nothing worth
+having could be secured by diplomacy until
+diplomacy was backed by force, was labouring
+might and main to raise the army and navy
+to a position as worthy as possible of a Great
+Power and commensurate with the momentous
+issues at stake.</p>
+
+<p>But the position of the Cabinet was seriously
+weakened by the domestic and insidious enemy.
+Giolitti&#8217;s pronouncement had provided the
+Austrians with a trump card. For if the
+Dictator accounted the proffered concession
+as a settlement in full, it was obvious that the
+Cabinet, which was composed of his own
+nominees whom he could remove at will, would
+not press successfully for more extensive compensation.
+Giolitti was the champion and
+spokesman of the nation, and his estimate of
+its aspirations alone carried weight. And now
+once more the Dictator, acting through his
+parliamentary lieutenants, organized another
+anti-governmental demonstration which humiliated
+the Cabinet and impaired its authority as
+a negotiator. Of this favourable diversion the
+Austrians availed themselves to the full. But
+gradually it dawned upon them that behind
+the Italian Foreign Minister a reorganized
+Italian army, well equipped and partially
+mobilized, was being arrayed for the eventuality
+of a failure of the negotiations. By way
+of recognizing this fact the Ballplatz increased
+its offer, but only very slightly, while it grew
+more and more lavish of arguments. But the
+&#8220;principal aspirations of the Italian people&#8221;
+had not yet been taken into serious consideration<span class='pagenum'><a name="Page_200" id="Page_200">[200]</a></span>
+by Baron Burian. Down to April 21
+this statesman had not braced himself up to
+offer anything more than the Trentino, which
+Prince B&uuml;low had virtually promised in
+January, and this despite the intimation given
+by the Italian Foreign Secretary, that after the
+long spell of word-weaving and hair-splitting
+he must insist on a serious and immediate
+effort being put forth to meet Italy&#8217;s demands.</p>
+
+<p>Thus during five months of tedious negotiations
+Austria had contrived to exchange views
+and notes with the Consulta without offering
+any more solid basis for an agreement than
+the cession of a part of the Trentino. It is
+fair to add that even this appeared a generous
+gift to Franz Josef&#8217;s ministers, who failed to
+see why the Habsburg Monarchy should offer
+any compensation to an ally from whom help,
+not claims, had been expected. To a possible
+abandonment of territory on the Isonzo or
+elsewhere the Vienna Cabinet made no allusion.
+On April 8 Sonnino presented counter
+proposals, which he unfolded in nine clauses.
+They comprehended the cession of the Trentino,
+including the frontiers established for
+the kingdom of Italy by the Treaty of Paris
+of 1810; a rectification of Italy&#8217;s eastern
+boundaries, taking in the cities of Gradisca and
+Gorizia; the transformation of Trieste and its
+territory into an autonomous State, internationally
+independent; the transfer to the
+kingdom of Italy of the Curzolari group of
+islands; all these territories to be delivered
+up on the ratification of the Treaty. Further,
+Italy&#8217;s full sovereignty over Valona was to
+be recognized by Austria, who should forswear
+all further designs on Albania and
+concede a full pardon to all persons of those<span class='pagenum'><a name="Page_201" id="Page_201">[201]</a></span>
+lands undergoing punishment for political or
+military offences. On her side Italy would
+consent to pay 200,000,000 francs as her share
+of the public debt and of other financial obligations
+of the provinces in question, to remain
+absolutely neutral during the present war, and
+to renounce all further claims to compensation
+arising out of Clause VII of the Treaty.<a name="FNanchor_95_95" id="FNanchor_95_95"></a><a href="#Footnote_95_95" class="fnanchor">[95]</a></p>
+
+<p>Those terms were rejected by the Austrian
+Foreign Minister on grounds which have no
+longer any practical interest. Noteworthy is
+his remark that even in peace time the immediate
+consignment of such territory as Austria
+might be willing to abandon would be impossible,
+and during the prosecution of a tremendous
+war it was inconceivable.<a name="FNanchor_96_96" id="FNanchor_96_96"></a><a href="#Footnote_96_96" class="fnanchor">[96]</a> From
+this position he had never once swerved during
+the five months&#8217; conversations, and he was
+backed by Germany, who on March 19 had
+offered to guarantee the fulfilment of the
+promise after the war. But a fortnight later
+he suddenly changed his ground without really
+yielding the point, by suggesting the creation of
+a mixed commission which should make recommendations
+about the ways and means of
+transferring the strips of territory in question.
+But as the labours of this commission were
+not to be restricted in time, and as the amount
+to be ceded fell far short of what was demanded,
+Baron Sonnino negatived the suggestion.</p>
+
+<p>Then and only then did the Italian Government
+withdraw their proposals, denounce the
+Triple Alliance, and proclaim Italy&#8217;s liberty of
+action.<a name="FNanchor_97_97" id="FNanchor_97_97"></a><a href="#Footnote_97_97" class="fnanchor">[97]</a></p>
+
+<p><span class='pagenum'><a name="Page_202" id="Page_202">[202]</a></span></p><p>Of this sensational turn of affairs the European
+public had no inkling. For the Italian Government
+was bound to reticence by its plighted
+word and the Germans and Austrians by their
+interest, which was to foster the belief that the
+conversations were proceeding successfully and
+that Austria&#8217;s proposals were welcomed by
+the Consulta. But Italy, thus absolved from
+the ties that had so long linked her with
+Germany and Austria, entered into a conditional
+compact with the Powers of the
+Entente. In Paris the secret quickly leaked
+out and was at once communicated to Berlin,
+whose organized espionage continued to
+flourish in the French capital. Thereupon
+Herr Jagow urged B&uuml;low to bestir himself
+without delay. But the Prince was hard set.
+On the Italian Cabinet he had lost his hold.
+It had already crossed the Rubicon and passed
+over to the Entente. True, the Cabinet was
+not Italy, was not even the Government of
+Italy. It was hardly more than a group of
+mere place-warmers for Giolitti and his partisans.
+At any moment it could be upset and
+the damage inflicted by Austria&#8217;s stupidity
+made good. And to effect this was the task to
+which the German Ambassador now addressed
+himself.</p>
+
+<p>He was admirably qualified to discharge it.
+All Italy, with the exception of a small band
+of nationalists and republicans, was his ally.
+The Pope was <i>ex officio</i> an apostle of peace. A
+large body of the clergy submissively followed
+the Pope. The Vatican and its hangers-on were
+sitting <i>en permanence</i> directing a movement
+which had for its object the prevention of war.
+The parliamentary majority was aggressively
+neutralist. The economic interests of the nation<span class='pagenum'><a name="Page_203" id="Page_203">[203]</a></span>
+were ranged on the same side. Almost the
+entire aristocracy was enlisted under the flag
+of the German Ambassador, at whose hospitable
+board the scions of the men whose names had
+been honourably associated with the Risorgimento
+met and deliberated. As yet, therefore,
+nothing was lost to the Central Empires;
+only a difficulty had been created which would
+serve as a welcome foil to impart sharper relief
+to Prince B&uuml;low&#8217;s certain victory. The
+man whose co-operation would win this victory
+was the Dictator Giolitti, and him the Ambassador
+summoned to Rome.</p>
+
+<p>Now Giolitti was acquainted with everything
+that had been done by the Cabinet,
+including his country&#8217;s covenant with the
+Allies, and he disapproved of it. He was
+also initiated by B&uuml;low into the scheme by
+which that covenant was to be set aside and
+Italy made to break her faith, and he signified
+his approbation of it. Nay, this patriot went
+further; he undertook to aid and abet B&uuml;low
+in his well-thought-out plot. It had been
+resolved by the German Ambassador, as soon
+as he learned that Italy had taken an irrevocable
+decision and denounced the Treaty of
+Alliance, that he would amend the proposals
+which he himself, in Austria&#8217;s name, had put
+forward as the utmost limit to which she was
+prepared to go; and he was anxious, before
+offering them officially, to ascertain whether
+Italy&#8217;s Dictator would accept them and guarantee
+their acceptance by his parliamentary
+majority.</p>
+
+<p>That was the object for which Giolliti&#8217;s
+presence was needed in Rome. The amended
+proposals were typewritten and distributed by
+Erzberger, the leader of the German Catholic<span class='pagenum'><a name="Page_204" id="Page_204">[204]</a></span>
+parliamentary party, who was an over-zealous
+agent of the Wilhelmstrasse and a <i>persona grata</i>
+at the Vatican. He, a German, had gone to
+Rome to bestir the neutralists and lead the
+movement against the Italian Government.
+His leaflets containing the belated concessions
+were given to Giolitti and his lieutenants. I
+received a copy myself, and sent it to the <i>Daily
+Telegraph</i>. The concessions were actually published
+in that journal and communicated to
+the British public before King Victor&#8217;s Government,
+to whom Prince B&uuml;low was accredited,
+had any cognizance of their existence. That
+this procedure involved a gross breach of the
+covenant between the Ambassador and Sonnino
+stipulating the maintenance of absolute
+secrecy was deemed an irrelevant consideration.</p>
+
+<p>Seldom in modern times have such underhand
+methods been resorted to by the Government
+of a Great Power. Neither would it be
+easy to find an example of a responsible statesman
+behaving as Giolitti behaved and working
+in collusion with the Government of a State
+which at the time was virtually his country&#8217;s
+enemy. This statesman, however, duly played
+the part assigned to him in this intrigue
+against his Government and country, and
+the success of his scheme would have left
+the Italian nation covered with infamy and
+bereft of friends. For if he had been able
+to conclude the compact with Austria as he
+had undertaken to do, his country would have
+been left to the mercy of his Austro-German
+masters, who despise Italy, and probably, if
+victorious, would have refused to redeem their
+promises, while the Entente States would have
+boycotted her as faithless and false-hearted.
+As a dilemma for Italy the position in which<span class='pagenum'><a name="Page_205" id="Page_205">[205]</a></span>
+she was placed must have delighted the wily
+B&uuml;low. How it can have satisfied an Italian
+statesman is a psychological riddle.</p>
+
+<p>Meanwhile the German Ambassador presented
+officially Austria&#8217;s final proposals, as
+though the conversations on this subject had
+not been broken off. Baron Sonnino refused
+to discuss them. But the Dictator intended
+that his word should be heard and his will
+should be done. To the King and the Premier,
+Giolitti announced that, despite all that had
+been accomplished by the Government, he still
+clung to the belief that Austria&#8217;s new concessions
+offered a basis for further negotiations,
+which, if cleverly conducted, would lead to
+the acquisition of some other strips of territory,
+and would certainly culminate in a satisfactory
+settlement.</p>
+
+<p>But, not satisfied with this confidential expression
+of opinion, Giolitti let it be known to
+the whole nation that he, the chief and spokesman
+of the parliamentary majority, was convinced
+of the feasibility of an accord with
+Austria on the basis of her last offer, which
+he deemed acceptable in principle; that he saw
+no motives for plunging Italy into a hideous
+war, which would involve the nation in disaster;
+and that he would adjust his acts to these
+convictions.</p>
+
+<p>This deliberate pronouncement, coming from
+the most prominent man in the country, had
+a powerful effect upon his followers and also
+upon the public at large. No nation desires
+war for war&#8217;s sake, and the interpretation put
+upon Giolitti&#8217;s words by the extreme neutralists
+and, in particular, by the insincere organs
+of the Vatican, was that he had seen enough
+to convince him that the Cabinet had decided<span class='pagenum'><a name="Page_206" id="Page_206">[206]</a></span>
+to wage war against Germany and Austria
+at all costs and irrespective of the nation&#8217;s
+interests. Giolitti&#8217;s parliamentary friends demonstratively
+called upon him at his private
+residence, leaving their cards, and announcing
+the conformity of their views to those of their
+leader; and as their number, which was carefully
+communicated to the Press, formed the
+majority of the Chamber, the Cabinet felt
+impelled to take the hint and act upon it.
+This was the only course open to it. For, as
+the ministers were obliged to meet Parliament
+on May 20&mdash;the day fixed for its reopening&mdash;they
+were sure to be out-voted on a division,
+whereupon a crisis, not merely ministerial but
+national and international, would be precipitated.
+The consequences of such a conflict
+might be disastrous. Rather than wait for
+this eventuality the Cabinet tendered its resignation.
+Thus B&uuml;low had seemingly triumphed.
+The Government was turned out by Giolitti,
+who had accepted in advance the Austro-German
+terms of a settlement, and Italy was
+seemingly won over to the Teutons.</p>
+
+<p>So far as one could judge, the fate of the
+nation was now decided. Its course was
+marked out for it, and was henceforward unalterable.
+For, so far as one could see, by no
+section of the constitutional machinery was
+the strategy of B&uuml;low and Giolitti to be
+thwarted. In a parliamentary land the legislatures
+are paramount, and here both Chamber
+and Senate were arrayed against the Cabinet
+for Giolitti and Germany.</p>
+
+<p>The ferment consequent upon this turn of
+affairs was tremendous. All Europe was astir
+with excitement. The Press of Berlin and
+Vienna was jubilant. Panegyrics of Giolitti<span class='pagenum'><a name="Page_207" id="Page_207">[207]</a></span>
+and of B&uuml;low filled the columns of their daily
+Press.</p>
+
+<p>But a <i>deus ex machina</i> suddenly descended
+upon the scene in the unwonted form of
+an indignant nation. The Italian people,
+which had at first been either indifferent or
+actively in favour of cultivating neighbourly
+relations with Germany, had of late been
+following the course of the struggle with the
+liveliest interest. Germany&#8217;s dealings with
+Belgium had impressed them deeply. Her
+methods of warfare had estranged their sympathies.
+Her doctrine of the supremacy of
+force and falsehood had given an adverse
+poise to their ideas and leanings. Deep
+into their hearts had sunk the tidings of
+the destruction of the <i>Lusitania</i>, awakening
+feelings of loathing and abomination for its
+authors, to which free expression was now
+being given everywhere. The spirit that actuated
+this revolting enormity was brand-marked
+as that of demoniacal fury loosed from moral
+control and from the ties that bind nations and
+individuals to all humanity.</p>
+
+<p>The effect upon public sentiment and opinion
+in Italy, where emotions are tensely strung,
+and sympathy with suffering is more flexible
+and diffusive than it is even among the other
+Latin races, was instantaneous. One statesman,
+who was a partisan of neutrality, remarked
+to me that German &#8220;Kultur,&#8221; as revealed
+during the present war, is dissociated from
+every sense of duty, obligation, chivalry,
+honour, and is become a potent poison which
+the remainder of humanity must endeavour
+by all efficacious methods to banish from the
+international system.</p>
+
+<p>&#8220;This,&#8221; he went on, &#8220;is no longer war; it<span class='pagenum'><a name="Page_208" id="Page_208">[208]</a></span>
+is organized slaughter, perpetrated by a race
+suffering from dog-madness. I tremble at
+the thought that our own civilized and
+chivalrous people may at any moment be
+confronted with this lava flood of savagery and
+destructiveness. Now, if ever, the opportune
+moment has come for all civilized nations to
+join in protest, stiffened with a unanimous
+threat, against the continuance of such crimes
+against the human race. Europe ought surely
+to have the line drawn at the poisoning of
+wells, the persecution of prisoners, and the
+massacre of women and children. If a proposal
+to this effect were made, I myself would
+second it with ardour.&#8221;<a name="FNanchor_98_98" id="FNanchor_98_98"></a><a href="#Footnote_98_98" class="fnanchor">[98]</a></p>
+
+<p>These pent-up feelings now found vent in a
+series of meetings and demonstrations against
+Germany as well as Austria and their Italian
+allies. Italy&#8217;s spiritual heritage from the old
+Romans asserted itself in impressive forms
+and unwonted ways, and the conscience of
+the nation loudly affirmed its claim to be the
+main directing force in a crisis where the
+honour and the future of the country were at
+stake. And within four days of this purgative
+process a marked change was noticeable.
+Giolitti&#8217;s partisans&mdash;hissed, jostled, mauled,
+frightened out of their lives&mdash;lay low. Many
+of them publicly recanted and proclaimed their
+conversion to intervention. The chief of the
+German Catholic party and friend of the
+Vatican, Erzberger, was driven from his hotel
+to the German Embassy as a foreign mischief-maker,
+contrabandist and spy. Some of
+the Press organs, subsidized or created by
+the Teutons, were obliged to disappear. The
+honest neutralist journals, yielding to the
+<span class='pagenum'><a name="Page_209" id="Page_209">[209]</a></span>nation, veered round to the fallen Cabinet.
+In a word, the political atmosphere, theretofore
+foul and mephitic, became suddenly charged
+with purer, healthier elements&mdash;B&uuml;low&#8217;s plot
+was thwarted and Giolitti&#8217;s r&ocirc;le played out.
+The Salandra-Sonnino Cabinet was borne back
+to office on the crest of this national wave,
+and Italy declared war against Austria. But
+only against Austria. For the Cabinet, restored
+to power, became a cautious steward,
+and took to imitating him of the Gospel who
+hid his talents instead of augmenting them.</p>
+
+<p>This restriction of military operations to the
+Habsburg Monarchy struck many observers as
+singular. In truth the motives that inspired
+the Government have never been authoritatively
+divulged. That every Italian Cabinet
+since Crispi&#8217;s days had made a marked distinction
+between Germany and Austria was notorious.
+That Di San Giuliano felt as strongly
+attracted towards Berlin as he was repelled by
+Vienna may be gathered from the official but
+still unpublished dispatches that exist on the
+subject. But that in a war not of two individual
+nations, but of groups of States, one&mdash;and
+only one&mdash;of these should be singled out
+as the object of aggression aroused something
+more than mere curiosity. And this feeling
+was intensified when it became known that
+on the eve of the diplomatic rupture B&uuml;low,
+ever on the alert for the interests of his country,
+had induced the Italian Government to conclude
+a convention with Germany for the protection
+of private property in case of active
+hostilities. For Germany possesses in Italy
+property valued at several milliards of francs,
+whereas Italy claims as her own almost nothing in
+the German empire. Who can read the riddle?<span class='pagenum'><a name="Page_210" id="Page_210">[210]</a></span></p>
+
+<p>The adhesion of Italy to the Allies may be
+noted as perhaps the most important political
+event of the year, while the circumstances in
+which it was decided on dispel all doubt that
+the Italian people were actuated by lofty
+motives and rose to the highest ideas involved
+in the European conflict, and that the Cabinet&#8217;s
+ideals were nowise identical with those of the
+nation. It is alleged by certain personal
+friends of Baron Sonnino, who had exceptionally
+good opportunities for knowing what took
+place&mdash;and I have grounds for acquiescing in
+their view&mdash;that this statesman was for declaring
+war against Germany as well as Austria,
+but that Professor Salandra negatived this
+logical and straightforward move.</p>
+
+<p>That the Salandra Cabinet damaged the
+cause of Italy by thus endeavouring to
+blow hot and cold, is a fact which its warmest
+supporters no longer call in question. They
+now merely plead for extenuating circumstances
+on the ground that the damage was
+done unwittingly. &#8220;It would be unjust,&#8221;
+the Nationalist Federzoni said in a speech
+delivered before the Chamber on March 16,<a name="FNanchor_99_99" id="FNanchor_99_99"></a><a href="#Footnote_99_99" class="fnanchor">[99]</a>
+&#8220;to accuse the Italian Government of disloyalty
+or insincerity, but none the less the
+treaty it concluded with Germany has proved
+superlatively baleful to the country.&#8221; Like
+the other allied peoples, the Italian nation
+has been served by a Cabinet which defeated
+many of the objects it was striving after.</p>
+
+<p>Studying Italian politics since the war broke
+out is like threading the Cretan Labyrinth in
+a dense fog. The fog, curiously enough, which
+now seldom lifts, would seem to form an integral
+part of the politics. For one of the
+<span class='pagenum'><a name="Page_211" id="Page_211">[211]</a></span>maxims of the present chief of the Consulta,
+Baron Sonnino, is that secrecy is the soul of
+efficacy. And as thoroughness marks his
+action whenever it is quite free, the mystery
+that enwraps the schemes and designs of King
+Victor&#8217;s Government is become impenetrable.
+One may form a faint notion of the stringency
+with which this un-Italian occultism is observed
+by the eminent Jewish statesman, from
+the circumstance that during the crisis that
+preceded the war, only one of his colleagues
+was kept informed of the progress of the conversations
+with Austria, and that was his
+own chief, Professor Salandra. As for the
+nation at large, it was so out of touch with
+the Government, and so led astray concerning
+the trend of events, that for months it confidently
+anticipated an accord with the Central
+Empires. Again, down to the day on which
+Baron Sonnino read out his last declaration in
+the Chamber (Dec. 1), officials of the Ministry
+had rigorous instructions not to give any one
+even a hint as to whether Italy would or
+would not sign the London Convention, renouncing
+the right to conclude a separate
+peace.</p>
+
+<p>For a long time previously Italy&#8217;s aloofness
+had preoccupied the Entente, and to the
+accord between the two there continued to
+be something lacking. The Italian Government,
+dissatisfied with the degree of help
+received from Great Britain, was not slow
+to indicate it in official conversations with
+our Ambassador. Happily, the silence of our
+Foreign Office and the secrecy of Baron
+Sonnino concealed the rifts of the lute until
+most of them were said to be repaired. In the
+meantime Italy persisted in concentrating on<span class='pagenum'><a name="Page_212" id="Page_212">[212]</a></span>
+the Isonzo and the Carso all her efforts to help
+the Allies against the Turks and the Bulgars.
+The expeditions to the Dardanelles, Salonika
+and Serbia evoked her moral sympathy, but
+could not secure her military co-operation.
+The generosity of the Entente, and of Britain
+in particular, towards Greece was an additional
+stumbling-block, and the offer of Cyprus to
+King Constantine an abomination in her eyes.</p>
+
+<p>That Italy&#8217;s impolitic aloofness could not
+last, without impairing the worth of her sacrifices,
+was obvious. And the extent to which
+co-operation could be stipulated and the compensations
+to which that would entitle her,
+formed the subjects of long and delicate conversations
+between the interested Governments.
+For, naturally enough, Baron Sonnino,
+whose domestic critics are many and ruthless,
+was desirous of getting all he could in the
+Eastern Mediterranean and Asia Minor, while
+measuring out with patriotic closeness the
+military and naval help to be given in return&mdash;Italy&#8217;s
+position, economic, financial and strategic,
+differing considerably from that of the
+other Great Powers. It was not until the
+end of November 1915 that these negotiations
+were worked out to an issue; and on the 30th
+King Victor&#8217;s Government signed the Convention
+of London, undertaking not to conclude
+a separate peace.</p>
+
+<p>The gist of this supplementary accord, in
+so far as it imposes fresh obligations upon
+Italy, was communicated to the Chamber by
+Baron Sonnino. It provided for the organization
+of relief for the Serbian troops in Albania,
+and for other auxiliary expeditions to places
+on the Adriatic coast. But it leaves intact
+the essential and standing limitations to Italy&#8217;s<span class='pagenum'><a name="Page_213" id="Page_213">[213]</a></span>
+military and naval co-operation which had to
+be reckoned with theretofore. And these may
+be summarized as follows: King Victor&#8217;s
+Government, while examining every proposal
+coming from the Allies on its political merits,
+must be guided by the military and naval
+experts of the nation whenever it is a question
+of despatching troops or warships to take
+part in a common enterprise. Italy&#8217;s first
+care is to hinder an invasion of her territory.
+The next object of her solicitude is to husband
+her naval and other resources and cultivate
+caution. Lastly, the extent of her contribution
+to an expedition must be adjusted to
+her resources, which are much more slender
+than those of any other Great Power, and
+are best known to her own rulers. And her
+financial means are to be reinforced by contributions
+from Great Britain.</p>
+
+<p>Those, in brief, are some of the lines on which
+the latest agreement has been concluded.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_90_90" id="Footnote_90_90"></a><a href="#FNanchor_90_90"><span class="label">[90]</span></a> January 15, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_91_91" id="Footnote_91_91"></a><a href="#FNanchor_91_91"><span class="label">[91]</span></a> Di San Giuliano died on October 18, 1914. He was
+working for a short time on the 17th.</p></div>
+
+<div class="footnote"><p><a name="Footnote_92_92" id="Footnote_92_92"></a><a href="#FNanchor_92_92"><span class="label">[92]</span></a> On December 20, 1914.</p></div>
+
+<div class="footnote"><p><a name="Footnote_93_93" id="Footnote_93_93"></a><a href="#FNanchor_93_93"><span class="label">[93]</span></a> Italian Green Book, Despatch N. 8.</p></div>
+
+<div class="footnote"><p><a name="Footnote_94_94" id="Footnote_94_94"></a><a href="#FNanchor_94_94"><span class="label">[94]</span></a> Italian Green Book, January 14, 1915, Despatch
+N. 11.</p></div>
+
+<div class="footnote"><p><a name="Footnote_95_95" id="Footnote_95_95"></a><a href="#FNanchor_95_95"><span class="label">[95]</span></a> Italian Green Book, Dispatch N. 64.</p></div>
+
+<div class="footnote"><p><a name="Footnote_96_96" id="Footnote_96_96"></a><a href="#FNanchor_96_96"><span class="label">[96]</span></a> Italian Green Book, Dispatch N. 71, April 16, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_97_97" id="Footnote_97_97"></a><a href="#FNanchor_97_97"><span class="label">[97]</span></a> May 3, 1915. Cf. Italian Green Book, Dispatch
+N. 76.</p></div>
+
+<div class="footnote"><p><a name="Footnote_98_98" id="Footnote_98_98"></a><a href="#FNanchor_98_98"><span class="label">[98]</span></a> Cf. <i>Daily Telegraph</i>, May 10, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_99_99" id="Footnote_99_99"></a><a href="#FNanchor_99_99"><span class="label">[99]</span></a> March 16, 1916.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XVI" id="CHAPTER_XVI"></a>CHAPTER XVI<span class='pagenum'><a name="Page_214" id="Page_214">[214]</a></span></h2>
+
+<h3>ROUMANIA AND GREECE</h3>
+
+
+<p><span class="smcap">That</span> Roumania would now take the field
+was a proposition which, after the many and
+emphatic assurances volunteered by her own
+official chiefs, was accepted almost universally.
+She had received considerable help from the
+Allies towards her military preparations. Her
+senators and deputies had fraternized with
+Italians and Frenchmen and her diplomatists
+had been in frequent and friendly communication
+with those of France, Britain and Russia.
+Even statesmen had allowed themselves to be
+persuaded by words and gestures which it
+now appears were meant only to be conditional
+assurances or social lubricants. The
+Serbian Premier, for instance, whose shrewdness
+is proverbial, exclaimed to an Italian
+journalist, in the second half of June: &#8220;Roumania
+cannot but follow the example set her
+by Italy. Indeed, you may telegraph to your
+journal that Roumania&#8217;s entry into the arena
+is a question of days and it may be only of
+hours. Of this many foretokens have come
+to our knowledge.&#8221;<a name="FNanchor_100_100" id="FNanchor_100_100"></a><a href="#Footnote_100_100" class="fnanchor">[100]</a> But the optimists who
+had drawn practical conclusions from Roumanian
+promises and friendships lost sight of
+the difference between their own mentality
+and that of the Balkan peoples. They also
+failed to make due allowance for the influence
+<span class='pagenum'><a name="Page_215" id="Page_215">[215]</a></span>of German interpenetration, the power of
+German gold, and the deterrent effect of German
+victories. And above all, they left out
+of consideration the really decisive question
+of military prospects as conditioned by strategical
+position and supplies of munitions.</p>
+
+<p>The party of intervention, however, was
+still active and full of ardour. Its chief, Take
+Jonescu, is not merely Roumania&#8217;s only statesman,
+but has established a claim to rank as
+one of the prominent public men of the present
+generation. Unluckily he has long been out
+of office, and his party is condemned to the
+Cassandra r&ocirc;le of uttering true prophecies
+which find no credence among those who wield
+the power of putting them to good account.
+M. Bratiano&#8217;s appropriate attitude may be
+described as statuesque. Occasionally his
+Press organs commented upon the manifestations
+of the interventionists in words barbed
+with bitter sarcasm and utilitarian maxims.
+&#8220;Roumania&#8217;s blood and money,&#8221; the <i>Independence
+Roumaine</i> explained, &#8220;must be spent
+only in the furtherance of Roumania&#8217;s interest.&#8221;
+Her cause must be dissociated from
+that of the belligerents. To this Take Jonescu
+replied<a name="FNanchor_101_101" id="FNanchor_101_101"></a><a href="#Footnote_101_101" class="fnanchor">[101]</a> that it is precisely for the good of
+Roumania that her interest should not be
+separated from that of the Entente Powers in
+the conflict. For on the issue of this conflict
+depends the state-system of Europe and also
+the future of Roumania. If the Germans are
+triumphant, he added, force and falsehood will
+triumph with them, the State will acquire
+omnipotence, the individual sink into serfdom.
+Neutrality during a war with such issues is,
+therefore, the height of political unwisdom.</p>
+<p><span class='pagenum'><a name="Page_216" id="Page_216">[216]</a></span></p>
+<p>Greece, after Venizelos&#8217;s retirement, returned
+to the narrow creed and foolish pranks of her
+unregenerate days, sinking deeper into anarchy.
+More than once in her history she had been
+saved from her enemies and once from her
+friends, but from her own self there is no
+saviour.</p>
+
+<p>As soon as the Kaiser&#8217;s paladin, King
+Constantine, had dismissed his pilot and taken
+supreme command of the Ship of State, the
+portals of the realm were thrown open to
+German machinations. The weaver in chief
+of these was Wilhelm&#8217;s confidential agent,
+Baron Schenk. According to his own published
+biography, this gentleman had in youth
+been the friend of the two sisters of Princess
+Battenberg, the Grand Duchess Serge and of
+the Russian Tsaritza. He had served in the
+German army, become the representative of
+the firm of Krupps, and been received at the
+German court. While Venizelos was in office,
+Baron Schenk flourished in the shade, but as
+soon as the Germanophile Gounaris took over
+the reins of power, the secret agent went boldly
+forward into the limelight and became the
+public chief of a party, received openly his
+helpmates and partisans, distributed r&ocirc;les and
+money and set frankly to work to &#8220;smash
+Venizelos.&#8221;</p>
+
+<p>King Constantine&#8217;s protracted and strange
+malady hindered the Queen, who is the
+Kaiser&#8217;s sister, from receiving visits. Even
+the wives of ministers were denied access to
+her Majesty. But the baron was an exception.
+He called on her almost every day.
+Cabinet Ministers consulted him. Journalists
+received directions, articles and bribes from
+him. And when the elections were coming<span class='pagenum'><a name="Page_217" id="Page_217">[217]</a></span>
+on every venal man of influence who could
+damage Venizelos or help his antagonists was
+bought with hard cash. In order to defeat
+some Venizelist candidates whose return would
+have been particularly distressing, the Baron
+is said to have spent six hundred thousand
+francs.<a name="FNanchor_102_102" id="FNanchor_102_102"></a><a href="#Footnote_102_102" class="fnanchor">[102]</a> And it is held that the results obtained
+by these means were well worth the
+money spent. For the parliamentary opposition
+was strong and aggressive, and some of
+its more active members had imbibed Hellenic
+patriotism from the German Schenk. They
+have since been toiling and moiling to disqualify
+Venizelos permanently from office on
+the ground that he is a republican, and that
+the destinies of monarchy would not be safe in
+his hands. By these means German organization,
+which finds work and room for kings and
+for poisoners, for theologians and assassins,
+has transformed Greece into a Prussian satrapy
+which avails itself of the freedom of the seas,
+established by the Allies, to carry on contraband
+to their detriment and give help and encouragement
+to Austrians, Bulgars and Turks. And
+the Turks were meanwhile extirpating the
+Greeks of the coast of Asia Minor.</p>
+
+<p>Bulgaria&#8217;s attitude underwent no momentous
+change during the interval that elapsed between
+the outbreak of the war and the close of the
+first year. Symptoms of a new orientation
+had, it is true, often been signalled and commented,
+but Ferdinand of Coburg and his
+lieutenants remained steadfastly faithful to the
+policy of quiescence which had conferred more
+substantial benefits on Germany and Austria
+than could have been bestowed by the active
+<span class='pagenum'><a name="Page_218" id="Page_218">[218]</a></span>co-operation of the whole Bulgarian army. This
+tremendous effect could never have been obtained
+if Bulgaria had entirely broken with
+the Powers of the Entente. It seemed as
+essential to its success that these should never
+wholly give up the hope of winning her over,
+as it was that her important movements should
+be conducive to the interests of their enemies.
+Hence every secret arrangement with Berlin
+and Vienna was emphatically denied, and every
+overt accord declared to be devoid of political
+significance.</p>
+
+<p>It was thus that Europe was directed to
+construe the negotiations between the Sofia
+Cabinet and the Austro-German financial syndicate
+respecting the payment of an instalment
+of the &pound;20,000,000 loan contracted shortly
+before the war. That Germany, whose financial
+ventures are invariably combined with
+political designs, would not part with her
+money to Bulgaria at a moment when gold is
+scarce, unless she were sure of an adequate
+political return, could not be gainsaid. And
+that the retention by Bulgaria of her freedom
+of action would be incompatible with the
+interests of Austria and Germany is also manifest.
+However this may be, the twenty millions
+sterling demanded by Sofia were accorded,
+and the legend was launched that the transaction
+was purely financial.</p>
+
+<p>Towards the end of July<a name="FNanchor_103_103" id="FNanchor_103_103"></a><a href="#Footnote_103_103" class="fnanchor">[103]</a> King Ferdinand&#8217;s
+ministers made another momentous move, the
+consequences of which cut deep into the political
+situation. A convention was signed in
+Stamboul between the Turkish and Bulgarian
+Governments by which the former ceded to
+Bulgaria the Turkish section of the Dedeagatch
+<span class='pagenum'><a name="Page_219" id="Page_219">[219]</a></span>railway&mdash;that is to say, the whole line that runs
+on Turkish territory, together with the stations
+of Dimotika, Kulela-Burgas, and Karagatch.
+The new boundary ran thenceforward parallel
+to the river Maritza, all the territory eastward
+of that becoming Bulgarian.</p>
+
+<p>And this concession, King Ferdinand&#8217;s
+ministers would have Europe believe, was
+devoid of political bearings. It was merely
+a case of something being given for nothing.
+And the Allies allowed themselves to be persuaded
+that this was the real significance of
+the deal. The German Press was more frank.
+It announced that the relations between Bulgaria
+and Turkey had entered upon a decisive
+phase and that all fear of Bulgaria&#8217;s taking
+part in the war on the side of the Allies had
+been definitely dispelled.</p>
+
+<p>The Bulgarian problem throughout all that
+wearisome crisis, which ended by Ferdinand
+throwing off the mask, was in reality simple,
+and the known or verifiable facts ought to have
+been sufficient to bring the judgment of the
+Entente statesmen to conclusions which would
+have enabled them to steer clear of the costly
+blunders that characterized their policy. The
+line of action followed from first to last by
+Ferdinand was supremely inelastic: only its
+manifestations, of which the object was to
+deceive, were varied and conflicting. It was
+bound up with Austria&#8217;s undertaking to restore
+Macedonia to Bulgaria and to maintain
+Ferdinand on the throne. This twofold
+promise was the bait by which the king was
+caught and kept in Austria&#8217;s toils, while the
+Bulgarian people was moved by patriotism
+to identify its cause with that of Ferdinand.
+And the arrangement was to my knowledge<span class='pagenum'><a name="Page_220" id="Page_220">[220]</a></span>
+completed before the opening of the European
+war. Evidence of its existence was forthcoming,
+but the statesmen of the Entente, who
+allowed preconceived notions to overrule the
+testimony of their senses, declined to accept
+it. Since then the Bulgarian Cabinet, in the
+person of the Premier, has publicly admitted
+the truth of my reiterated statement. In a
+public speech, delivered in March 1916, &#8220;M.
+Radoslavoff confessed that Bulgaria had entered
+the war by reason of certain obligations
+which she had assumed.&#8221;<a name="FNanchor_104_104" id="FNanchor_104_104"></a><a href="#Footnote_104_104" class="fnanchor">[104]</a></p>
+
+<p>But there was another safe test which the
+Entente Governments could have applied with
+profit to the situation. Interest was obviously
+the mainspring of the Bulgarian nation by
+whomsoever it might chance to be represented.
+It would be inconsistent with the
+conception of international politics to assume
+any other. Now that interest, it was obvious,
+could be so fully and rapidly furthered by the
+Central Empires, and in the judgment of the
+Bulgars with such finality and at the cost of
+so few sacrifices, that it was sheer impossible
+for the Entente Governments to attempt to
+compete with those. Bulgaria demanded immediate
+possession of Central Macedonia and
+the permanent weakening of the Serbian State.
+And this the Central Empires promised to
+effect within a few weeks from Bulgaria&#8217;s entry
+into the war. Moreover, while asking that
+she should take part in a struggle against that
+group of belligerents which she deemed by far
+the weaker, they undertook to give her the
+full support of the two greatest military
+Powers in the world.</p>
+<p><span class='pagenum'><a name="Page_221" id="Page_221">[221]</a></span></p>
+<p>Consider the difference between that arrangement
+and the attractions provided by the
+Entente. Russia, France and Britain could
+deal only in counters, not in hard cash like
+their adversaries. The utmost they were able
+to offer was an undertaking to use their good
+offices with Serbia and Greece to obtain the
+promise of a part of Bulgaria&#8217;s demands.
+And the fulfilment of this promise would of
+necessity be conditional on the victory of the
+Allies. As for the weakening of Serbia, it
+could not be entertained. On the contrary,
+that State, according to the Entente scheme,
+would be greatly enlarged, would, in fact,
+become by far the greatest of the Balkan
+nations. And for this shadowy lure, Bulgaria
+was expected to meet in deadly encounter the
+greatest military empires the world has ever
+seen, and to meet them without the help of
+any of the Great Powers of the Entente.</p>
+
+<p>One has but to compare these two alternatives
+in order to realize that, even if Ferdinand
+had entered into no binding compact with
+Austria and Germany, he would not hesitate
+a moment between them. Personally and
+politically he was held tight by the Teuton
+tentacles.</p>
+
+<p>The currency of the notion that with these
+competing offers before him, a crafty statesman
+like Ferdinand who felt over and above
+that Russia&#8217;s vengeance was hanging over his
+head, would take what he believed was the
+losing side, shows a degree of <i>na&iuml;vet&eacute;</i> which
+cannot be qualified without epithets which it
+had better be understood than expressed.</p>
+
+<p>Looking back upon the results of the first
+twenty months of the war and upon the
+more obvious causes to which they may<span class='pagenum'><a name="Page_222" id="Page_222">[222]</a></span>
+fairly be ascribed, one is struck less forcibly
+by the military and economic unpreparedness
+of the Allies for the inevitable conflict than
+by their inaccessibility to the ground ideas
+on which Germany set her hopes of success.
+The two groups of belligerents stood intellectually
+on different planes. The Teuton&#8217;s
+faith was implicit in the law of causality,
+in the necessity of contemplating the vast
+problem as a whole, of adjusting means
+to ends, of co-operation at home and co-ordination
+of means abroad. The methods
+of the Allies were drawn from a limited range
+of experience which was no longer applicable
+to the new conditions, and their hopes rested
+on a series of isolated exertions put forth temporarily
+under stress of exceptional pressure.</p>
+
+<p>They made noble sacrifices for the cause
+of liberty and justice. Pacific by temperament
+and conviction, they resignedly accepted
+military discipline as a temporary expedient,
+a purgatorial ordeal, and went about the
+while with a sense of displacement, the longing
+of exiles to get back. Spurred by stress of
+circumstance, they achieved more than foresight
+and insight had led them to design but
+far less than their optimism had encouraged
+them to anticipate. Step by step they were
+driven by hard reality to widen their angle of
+vision, to extend their schemes, and to concert
+certain measures in common. The meeting
+of the three Finance Ministers in Paris was
+followed by the Councils of the allied generals,
+by the combined expedition to the Dardanelles,
+and by the nationalization of the manufacture
+of munitions in each of the allied countries. And
+all these innovations were moves in the right
+direction. But they were made as temporary<span class='pagenum'><a name="Page_223" id="Page_223">[223]</a></span>
+expedients under pressure of outward events,
+and it is still to the future that one looks for
+tokens of statesmanlike intuition which from
+a comprehensive survey of the problem in its
+entirety will draw the materials wherewith to
+weave a coherent scheme of general action and
+permanent co-operation.</p>
+
+<p>Events travelled fast in the month of July
+1915, and their effect on the Allies was depressing.
+In Russia the Austro-Germans were advancing
+steadily against Riga and Warsaw,
+where a battle which experts accounted the
+most sanguinary and momentous in the war
+was approaching a decision. A fatal bar being
+placed by Russia&#8217;s reverses and other untoward
+occurrences to the realization of the hopes
+that had been raised by Kitchener&#8217;s army,
+the French, headed by M. Pichon and backed
+by the Russian Press, once more mooted the
+vexed question of Japanese intervention. In
+the Turkish dominions the Greeks were subjected
+to relentless persecution, especially on
+the coast of Asia Minor. The massacre of
+Armenians on an unprecedented scale was
+reported from Bitlis, Moosh, Diarbekir and
+Zeitun. In the first-named region 9,000
+bodies, mostly women and children, were, it is
+alleged, cast into the river Tigris.<a name="FNanchor_105_105" id="FNanchor_105_105"></a><a href="#Footnote_105_105" class="fnanchor">[105]</a> The Swedish
+Premier, by an enigmatic speech in which the
+doctrine of neutrality at all costs was ostentatiously
+repudiated, aroused suspicion of an intention
+on the part of his Government to join the
+Teutons in order to weaken the Slav neighbour,
+and to this apprehension colour was imparted
+by the tardy announcement that since the
+outbreak of the war Sweden had increased her
+army from 360,000 to 500,000 men. In the
+<span class='pagenum'><a name="Page_224" id="Page_224">[224]</a></span>United States mysterious &#8220;accidents&#8221; and
+mishaps occurred on board warships and in
+munitions and arms manufactories, and strikes
+were organized by Germans and Austrians on
+a scale which attracted the serious attention
+of the Washington Government.</p>
+
+<p>But the last month of that fateful year was
+further darkened by the most dangerous and
+ominous event recorded in the United Kingdom
+since the war began. Over 200,000 coal
+miners of South Wales deliberately, obstinately
+and criminally withheld their labour from
+their own nation, whose existence at that
+moment was dependent on its bestowal. The
+coal pits of South Wales remained idle for
+over a week. The miners crossed their arms
+and turned deaf ears to the voice of reason
+and interest calling on them not to sacrifice
+the lives of their kith and kin who were fighting
+for them. This act of black treason to the
+country had been foreseen and foretold months
+before, but out of consideration for the rights of
+individuals was allowed to take place. The
+Germans and Austrians were exultant, for
+another couple of weeks&#8217; strike would have given
+them the victory. Already the collapse of our
+defence was become a definite eventuality. The
+tact and statesmanship of Mr. Lloyd George
+exorcised the redoubtable spectre, but the spirit
+which that piece of treason revealed filled the
+most sanguine with dread and set those of little
+faith asking themselves whether this lamentable
+phenomenon was not one of certain ill-boding
+symptoms which seemed to reveal the smoothly
+moving current that bears doomed nations
+onward to their fate.</p>
+
+<p>Certainly nothing could put in a clearer
+light than that strike has done the peremptory<span class='pagenum'><a name="Page_225" id="Page_225">[225]</a></span>
+necessity of national discipline, at any rate
+in war-time. The State that is unable to
+command the service of all its citizens when
+beset by ruthless foreign enemies has lost its
+lease of life and its right to live. It must be
+recognized that patriotism is still an unknown
+sentiment among millions of those who are
+citizens of the United Kingdom and Ireland.
+Patriotism has never been systematically inculcated
+among us as in Germany, France and
+Russia. Parochial or at most party interests
+still mark the loftiest heights to which certain
+sections of the population can soar above the
+dead level of individual egotism. In Germany
+and Austria strikes during war are unthinkable.
+Every railway official, every tram-conductor,
+every artisan there is a soldier subject to
+military discipline and is expected to give
+the fullest measure of his productive powers
+to the nation. And it is fair to add that they
+all regard this duty as a signal honour and a
+source of pleasure. For to them patriotism
+is a religion and their country a divinity.</p>
+
+<p>The depth and fervour of this self-denying
+spirit among them as contrasted with the
+&#8220;healthy individual egotism&#8221; of the Allies
+constitutes one of the most disquieting phenomena
+of the struggle. Austria has been scoffed
+at for her abject submissiveness to Germany.
+But there is another way of looking at her
+attitude. She has courageously effaced her individuality
+more completely even than Turkey
+for the sake of the common cause. And
+she has lost nothing by the painful effort.
+Her various peoples who were expected to be
+tearing each other to pieces have given us a
+splendid example of discipline and self-abnegation.
+In the Skoda works at Pilsen, where<span class='pagenum'><a name="Page_226" id="Page_226">[226]</a></span>
+machine guns are made, fifteen thousand
+workmen are cheerfully toiling and moiling
+every day of the week, Sundays and holidays
+not excepted. Since the war began Germany
+has accomplished as great things at home as
+on foreign battlefields. She built and launched
+a Dreadnought of 25,600 tons, a line-of-battle
+ship of 26,200 tons. And while the latter
+vessel was on the stocks, the reports published
+in the British press of the splendid results
+obtained by the 15-inch guns of the <i>Queen
+Elizabeth</i> moved the German Admiralty to
+substitute these for the 12-inch guns already
+adopted. Two swift cruisers, 12 small submarines
+and 24 larger ones of 1200 tons displacement,
+with a speed of 16 knots under
+water, 20 on the surface and a radius of action
+of 3000 miles&mdash;were among the results of a
+single year&#8217;s activity.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_100_100" id="Footnote_100_100"></a><a href="#FNanchor_100_100"><span class="label">[100]</span></a> <i>Giornale d&#8217;Italia</i>, June 19, 1915. <i>Corriere della Sera</i>,
+June 20, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_101_101" id="Footnote_101_101"></a><a href="#FNanchor_101_101"><span class="label">[101]</span></a> <i>La Roumanie</i>, July 26, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_102_102" id="Footnote_102_102"></a><a href="#FNanchor_102_102"><span class="label">[102]</span></a> <i>Gazette de Lausanne</i>, July 6, 1915, and <i>Corriere della
+Sera</i>, July 8, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_103_103" id="Footnote_103_103"></a><a href="#FNanchor_103_103"><span class="label">[103]</span></a> July 22, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_104_104" id="Footnote_104_104"></a><a href="#FNanchor_104_104"><span class="label">[104]</span></a> Cf. <i>Daily Telegraph</i>, March 14, 1916, in telegram
+from Athens.</p></div>
+
+<div class="footnote"><p><a name="Footnote_105_105" id="Footnote_105_105"></a><a href="#FNanchor_105_105"><span class="label">[105]</span></a> <i>Novoye Vremya</i>, July 22, 1915.</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XVII" id="CHAPTER_XVII"></a>CHAPTER XVII<span class='pagenum'><a name="Page_227" id="Page_227">[227]</a></span></h2>
+
+<h3>GERMANY&#8217;S RESOURCEFULNESS</h3>
+
+
+<p><span class="smcap">And</span> our enemies&#8217; resourcefulness and power
+of adaptation is of a piece with their capacity
+for work. When war was declared and foreign
+trade arrested, numerous German factories
+underwent a quick transformation. Silk-works
+began to turn out bandages and lint;
+velvet works produced materials for tents;
+umbrella makers took to manufacturing rain-proof
+cloth; the output of sewing-machine
+factories was changed to shrapnel; piano
+manufacturers became makers of cartridges.
+Paper producers supplied the War Office with
+paper-made blankets. For copper, when the
+supply began to grow short, nickelled iron
+was quickly substituted. Sugar was employed
+to obtain the spirit which had to take
+the place of benzine. And the upshot of these
+transformations is that the orders received
+for military needs exceed those which would
+in normal conditions of exportation have been
+placed by foreign customers with German
+industry. The goods traffic on German railways,
+which had fallen to 41 per cent. during
+the first month of the war, has since gone up
+to 96 per cent. Those achievements are not
+merely noteworthy in themselves, they are
+ominously symptomatic.</p>
+
+<p>A German professor, writing to a friend imprisoned
+in France, commented in passing<span class='pagenum'><a name="Page_228" id="Page_228">[228]</a></span>
+upon these qualifications of his countrymen in
+a letter which M. Joseph Reinach soon afterwards
+gave to the public. One passage in that
+document is worth quoting. The professor
+holds that even if the worst comes to the worst,
+Germany can always conclude a &#8220;white
+peace&#8221; which will leave her the formidable
+glory of having held the whole world in check,
+will consolidate her prestige in Europe and
+enable her, twenty years hence, when she has
+made good her losses, to establish permanently
+her dominion. &#8220;My confidence is based on
+German patriotism, on German sense of discipline,
+on German genius for organization.
+But it is founded above all else on our enemies&#8217;
+incapacity for organization. Ah, if our adversaries
+could enhance the worth of their
+resources by acquiring our gifts of initiative
+and method, we should be lost! I am thrilled
+by the picture of what we could accomplish
+if we were in the places of the English and the
+French and by the thought of the danger that
+would confront us if they but knew how to
+utilize the force of their allies as we have
+availed ourselves of those of Austria and
+Turkey.&#8221;</p>
+
+<p>Those reflections find their fairest comment
+in the events of the twenty months that
+have passed since the opening of the campaign.</p>
+
+<p>Our enemies&#8217; reading of those events is
+instructive. The Austrian Press hails them
+as satisfactory. Even the Socialist organ<a name="FNanchor_106_106" id="FNanchor_106_106"></a><a href="#Footnote_106_106" class="fnanchor">[106]</a>
+declares that, in the qualities that go to the
+attainment of success, &#8220;Austria holds the first
+place.&#8221; The Austrian General Staff wrote eight
+months ago: &#8220;Our troops have now been
+fighting for a twelvemonth.... A whole world
+<span class='pagenum'><a name="Page_229" id="Page_229">[229]</a></span>of enemies rose up against the Central Empires,
+and more than once our army had to bear the
+brunt of their formidable onslaught. To-day,
+they hold but small tracts of territory in western
+Galicia and Alsatia, whereas Germany&#8217;s hand
+is closed in a tight grasp on Belgium and
+the richest provinces of France, and in the
+north-east the allied forces of Austria and
+Germany have penetrated well into Russian
+Poland. The cannons&#8217; muzzles are turned
+against the most powerful fortresses of the
+Tsar, and in the Dardanelles our third ally
+keeps watch and ward imperturbably.&#8221;</p>
+
+<p>The War Lord himself has recorded his
+estimate of the results of the first year&#8217;s
+campaign. &#8220;Germany,&#8221; he stated in a speech
+delivered at Lemberg, &#8220;is an impregnable
+fortress. In her forward march she is irresistible.
+She will prove to the world that she
+can overcome all her enemies and will dictate
+to them the peace terms that please herself.&#8221;
+And in a discourse pronounced at Beuthen
+he recorded his view of the Allies&#8217; outlook in
+these words: &#8220;Our enemies are floundering
+in confusion. Among themselves they are not
+united. They are disorganized by the struggle,
+disheartened by the knowledge that they are
+powerless to conquer Germany. German
+valour, German organization, German science
+have emerged with honour from this ordeal,
+the most terrible that a nation has ever undergone.
+Germany is greater and mightier than
+ever before.&#8221;</p>
+
+<p>It behoves us to learn from our enemies,
+and, abstraction made from the monstrosities
+which are indelibly associated with the German
+name, there is much which the Teutons can
+still teach us. That the secret of success lies<span class='pagenum'><a name="Page_230" id="Page_230">[230]</a></span>
+in a comprehensive system of organization is
+self-evident. But that organization must
+utilize all the resources of the Allies and include
+permanent arrangements, economic and other,
+for a future which shall not be a continuation
+of the past. Many of the advantages which
+the old ordering of things assured us are gone
+beyond recall. Conscription is become inevitable.
+Free trade is an institution of the
+past. The control of armies in the field by
+delegates of a democratic parliament such as
+is now demanded by the French Chamber is a
+dangerous craving for the fleshpots of Egypt.
+Whether Germany wins or loses, her rebellion
+against European civilization will effect substantial
+and durable changes in the methods
+of that civilization from which even the
+United States will not be exempted.</p>
+
+<p>Thus between the old order of things and
+the new yawns an abyss which has to be
+crossed before we can worst our enemies even
+in the military campaign which is but one
+phase of the world-struggle. Our resources
+for the purpose of bridging it are ample, but
+our first difficulty is the circumstance that we
+are chained to the old system and are still
+unwilling to burst the bonds that hold us.
+And until efficacious means of effecting this
+are adopted the end must remain unattainable.
+Victory will not descend on our camp like a
+manna from on high. The Allied Armies do
+not resemble the mulberry tree which, having
+long lagged behind its rivals, suddenly bursts
+into fruit as well as flower.</p>
+
+<p>During the past twenty months the Allies in
+general, and the British in particular, have
+achieved feats of which they have reason to
+be proud&mdash;feats which two years ago seemed<span class='pagenum'><a name="Page_231" id="Page_231">[231]</a></span>
+beyond the compass of human effort. But,
+much as we have done, we have not reached,
+nor indeed attempted to reach, the limits of
+our capacities, and the story of these memorable
+twenty months of struggle is dimmed by the
+shadow of the vaster exploits from which we
+have unaccountably shrunk.</p>
+
+<p>The old-world social conceptions still prevalent
+in Great Britain afford no standard by
+which to gauge the significance of the crisis
+through which Europe is passing, nor do they
+provide efficacious means of satisfying the
+pressing needs which it has created. Yet
+the nation&#8217;s guides perceive nothing to change
+in those conceptions; on the contrary, they
+uphold them zealously. No event has occurred
+in modern times of greater concern to Europe
+than the unleashing of disruptive forces which
+threaten when the war is over to break up the
+politico-social fabric. Now, the mere prospect
+of this tremendous upheaval and of its sequel
+is, one would fancy, calculated to arouse the
+spirited interest of all the nations affected.
+Yet in Great Britain, whose very existence it
+menaces, it was at first received with such
+unmeaning comments as &#8220;business as usual.&#8221;
+The alertness of the people&#8217;s sensations&mdash;always
+inconsiderable&mdash;for volcanic outbursts
+which have their centre abroad, has never
+been quite so blunted as to-day.</p>
+
+<p>Germany cultivates force not for its own
+sake but because it happens to suit her particular
+purpose. For this reason she preaches
+the doctrines that right and might are identical,
+that the end hallows the means, that military
+and political necessity overrule treaties and
+laws. For as violence and cunning may still
+gain triumphs, under the conditions that once<span class='pagenum'><a name="Page_232" id="Page_232">[232]</a></span>
+rendered them the only weapons of man,
+Germany&#8217;s first step is to bring about such
+conditions and to spread faith in the teachings
+of the new gospel. What the success of these
+efforts would involve is evident. All the
+ground slowly and painfully reclaimed from
+the primitive state of nature, transmuted into
+social order, and moralized by the altruistic
+accord of progressive humanity, would be
+submerged by the tidal wave of Teutonism.</p>
+
+<p>The first clash of the two forces which took
+place a generation ago was hardly noticed.
+Germany stretched out her feelers tenderly,
+and even when she was draining nation after
+nation of its life juices, she took care to lull
+the patient while sucking his blood. Accordingly
+her attack provoked no counter-attack,
+nay, there was no serious attempt at defence.
+Those who directed the forces of the civilized
+communities were unconscious of the counter-force
+that was steadily undermining these&mdash;so
+unconscious that in lieu of isolating and
+paralysing it, the tendency of their endeavours
+was to further and to strengthen it. For they
+hastily assumed that it, too, was a great moral
+force in an uncouth guise and should also be
+tended and cultivated. Their duty, had they
+hearkened to its promptings, would have been
+to employ towards the criminal plotters against
+Europe&#8217;s civilized communities coercion of the
+same drastic description that once enabled
+mankind to substitute for the barbarous usages
+of savage tribes the habits of social relationship
+and moral self-surrender to the weal of
+all. Among the mainstays of Germany&#8217;s type
+of society and the instruments by which it
+was built up are heavy artillery, mighty armies,
+the gallows, bribery and guile. With some of<span class='pagenum'><a name="Page_233" id="Page_233">[233]</a></span>
+those arms she had opened the campaign of
+conquest a quarter of a century ago, and of
+that campaign the present war, unexampled
+though it be, is but an acute and transient
+episode. This would appear to be the only
+true reading of contemporary events.</p>
+
+<p>Few careful students of European politics
+will now deny that the struggle between the
+forces for which Teutonism stands and those
+on which the social ordering of the rest of
+Europe is based was inaugurated long ago,
+that the ground was then cleared for the new
+politico-social structure, or that the dissolution
+of our &#8220;effete, drowsy States, saturated with
+wealth and honeycombed with hypocrisies,&#8221;
+was carefully planned and taken in hand with
+scientific precision. It is equally clear, to
+those who have eyes to see, that the present
+clash of nations, despite its appalling effects
+on civilization, is but an acuter phase of that
+campaign, a series of incidents in a mighty
+struggle which neither began in July 1914 nor
+will end with the close of hostilities, but will
+rage on for years to come in less sanguinary
+but more decisive forms. For the future peace&mdash;whatever
+its terms&mdash;which will silence the
+cannon&#8217;s boom, will but transfer the war
+theatre without ending the war. The methods
+will be changed from military to economic.
+But only the weapons will be different; the
+military discipline, the callous indifference to
+the dictates of human and divine law, the
+utter absence of scruple will continue to characterize
+the tactics of our enemy, who will
+then have a wider scope for his activities than
+the battlefield can offer. The German has no
+match among the allied nations in the regions
+of the new diplomacy, trade, industry, applied<span class='pagenum'><a name="Page_234" id="Page_234">[234]</a></span>
+science, insidious journalism and vast organization.
+He is incomparably better equipped
+than they, and owing to his amorality has
+none of those obstacles to contend with which
+so often confront them with scruples and check
+their advance.</p>
+
+<p>And during the progress of the present war
+the Teutons are making ready for that economico-political
+duel which will, they hope, give
+them the decisive superiority for which they
+had vainly hoped from the war. That hope, if
+their experience of the past thirty years be a
+fair indication, is by no means groundless.</p>
+
+<p>Not to realize these facts to-day is to play
+into the hands of our enemies, as we have been
+steadfastly doing during the past thirty years.
+The British and their allies are being overcome
+less by German skill and cleverness than
+by their own sluggishness, narrowness of outlook
+and love of ease. As the German professor,
+whose utterances I have already quoted,
+tersely put it: &#8220;My confidence is founded
+above all else on our enemies&#8217; incapacity for
+organization.&#8221; In truth, it is not inborn incapacity
+to which we owe our unquestioned
+inferiority, but to the atrophy of will-power
+which is one of the consequences of years of
+egotism, overweening confidence, self-indulgence
+and the loss of an inspiring social faith.</p>
+
+<p>Now, there is every reason to assume that
+these master facts are not yet recognized by
+our rulers, who seem perfectly contented that
+the nation should go on living as before from
+hand to mouth, with no far-reaching views for
+the future. This insular narrow-mindedness
+is natural. For the Ministers in power are
+the same who obstinately refused to credit the
+evidence of their senses, which went to prove<span class='pagenum'><a name="Page_235" id="Page_235">[235]</a></span>
+that Germany was bending all her energies
+to the successful prosecution of a formidable
+campaign against us and our presumptive
+allies for a whole generation. The frank recognition
+of this state of masked hostility would
+have imposed on the Government the correlate
+duty of taking up the challenge, readjusting
+our public life to the altered conditions,
+urging the nation to make heavy sacrifices and
+dissatisfying radical constituencies, whose one
+ideal is to devote themselves exclusively to
+parochial policy and domestic legislation. And
+the chiefs of the party in power lacked the
+mental and moral strength to throw off their
+deep-rooted apprehension of the consequences
+to party prospects, of increased taxation and
+other burdens of citizenship. They never
+grasped the situation as a whole, but restricted
+their survey to each fragmentary question as
+it was thrust into the foreground of actualities
+and eliminated every other.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_106_106" id="Footnote_106_106"></a><a href="#FNanchor_106_106"><span class="label">[106]</span></a> <i>Arbeiter Zeitung.</i></p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XVIII" id="CHAPTER_XVIII"></a>CHAPTER XVIII<span class='pagenum'><a name="Page_236" id="Page_236">[236]</a></span></h2>
+
+<h3>THE PERILS OF PARTY POLITICS</h3>
+
+
+<p><span class="smcap">No</span> bold, broad, stable policy, therefore, was
+ever conceived by those party politicians.
+The vast organization which was destined
+to destroy the old order of things in Europe,
+and whose manifestations were an open book
+to all observers who brought acuteness and
+patience to the study, was not merely ignored
+by them&mdash;its very existence was denied, and
+those who refused to join the ranks of the
+deniers were brand-marked as mischief-makers.
+The nation&#8217;s responsible trustees, by way of
+justifying this singular attitude, accepted implicitly
+our enemy&#8217;s account of his unfriendly
+acts and enterprises. Thus it was the chief
+of His Majesty&#8217;s Government who, from his
+place in the House of Commons, emphatically
+asserted that it behoved the British nation to
+welcome the Baghdad railway enterprise as
+a precious cultural undertaking devoid of
+political objects and, therefore, well worthy
+of our support. In vain the writer of these
+lines laid bare the real designs of the German
+Government, and adduced cogent proofs that
+the seemingly cultural scheme was but an
+integral part of a vast campaign, of which
+one object was the ousting of Britons from
+the Near and Middle East and the substitution
+of German overlordship there. They
+shut their eyes and stopped their ears, and<span class='pagenum'><a name="Page_237" id="Page_237">[237]</a></span>
+bade us rejoice that Britain is not as other
+countries and can afford to welcome and even
+further Germany&#8217;s &#8220;cultural&#8221; projects.</p>
+
+<p>It was our party politicians who, when the
+ground-swell of international anger and the
+premonitory rumble of volcanic forces became
+audible, diverted public attention from the
+symptoms and solemnly assured their countrymen
+that Germany had no intention of going
+to war. To the author of these pages, who
+was at the pains of unfolding in private his
+information and conclusions on this subject
+to one of those leaders, the answer given ran
+thus: &#8220;Your intentions are patriotic and
+your accuracy of observation is probably
+scientific. But your conclusions are wholly
+erroneous. You must admit that you are a
+pessimist. Nor can you deny that we members
+of the Cabinet dispose of fuller and more decisive
+data for a judgment than you, with all
+your opportunities, can muster. After all,
+we do know something of the temper of the
+German Government. And we have cogent
+grounds for holding that neither the Kaiser
+nor his Ministers want war. Bethmann Hollweg
+is the most pacific chancellor Germany has
+ever had. And the German people, bellicose
+though you think them, are to the full as
+peace-loving as our own. Their one desire
+is to be allowed to vie with us in commercial
+and industrial pursuits. So true is this, that
+if we suppose the improbable, that the Kaiser&#8217;s
+Government should feel disposed to bring about
+a European war, that design would be thwarted
+by the Reichstag backed by the bulk of the
+population.&#8221;</p>
+
+<p>Thus the men who presided over the destinies
+of the British Empire either had no eye for<span class='pagenum'><a name="Page_238" id="Page_238">[238]</a></span>
+the triumphant progress of the German campaign
+that had been going forward for years
+unchecked, or, if they discerned any of its
+episodes, saw them only through the softening
+and distorting medium of deceptive assurances
+and explanations emanating from Berlin. And
+on the strength of these illusive phrases they
+kept the country in a state of unpreparedness
+for the military form of the struggle for which
+our enemy was making ready, and if they had
+had their way our navy&mdash;which was our anchor
+of salvation&mdash;would also perhaps have been
+shorn of its strength.</p>
+
+<p>When at last the war broke out, it was our
+party politicians, the men to whom we still
+look up for light and guidance, who misinterpreted
+its nature and underestimated the
+urgent needs of the Empire. It was they
+who conceived the campaign as though it
+were one of our occasional colonial expeditions,
+and would fain base the strength of our land
+army abroad on the small number of troops
+which the Government had conditionally undertaken
+to provide. And throughout the first
+sixteen months of the war, it was they who
+went on doling out contingents with Troy
+weights and measures like Mrs. Partington
+beating back the tidal waves with a mop.
+It was they, too, who were at extraordinary
+pains and risked their prestige, to throw away
+the splendid privileged position which, at the
+outset of the struggle, we chanced to occupy in
+South-Eastern Europe. Every blunder into
+which petty municipal minds could fall when
+confronted with a wild revolutionary welter,
+marked the hesitant policy of the British
+Government. This aimless chaos of soul was
+the main cause of the woeful waste of our<span class='pagenum'><a name="Page_239" id="Page_239">[239]</a></span>
+political advantages and enormous resources
+in the accomplishment of secondary ends
+which generally led nowhere. It was thus
+that they forfeited the active support of
+Turkey, Bulgaria and Greece, foolishly stood
+by applauding every step those nations took
+towards the camp of our enemies, and then felt
+constrained to turn to their own people whom
+they had unwittingly misled and call upon it
+for the sacrifice of the flower of its manhood.</p>
+
+<p>It was they who sacrificed, through sheer administrative
+incapacity, the decided superiority
+over the Teutons which we enjoyed in the air
+at the outset of the war. It is now admitted
+that our mastery in that region was then complete.
+All that the country demanded of
+them was that they should hold it. But what
+with divided control, restricted views, and the
+policy of insufficient means&mdash;<i>petits paquets</i>&mdash;as
+the French term it, they allowed our enemies
+to outstrip us. And to-day in the air as on
+land it is the Germans who have the initiative
+and the Allies who are condemned to the
+defensive. Yet experts had pointed out over
+and over again what should be done and what
+avoided. Their advice was obviously sound
+and their criticism obviously irrefutable. But
+the men in power fumbled and floundered on
+until we had forfeited our mastery in the air
+to our enemies. And ever since then the nation
+has been paying the penalty. Yet it is to the
+men responsible for these costly blunders that
+the nation still looks for salvation!</p>
+
+<p>It was the same men who conceived or
+sanctioned the plan of an expedition to Mesopotamia.
+Whether this was a wise or a foolish
+project, when once decided upon it should
+have been carried out with might and main.<span class='pagenum'><a name="Page_240" id="Page_240">[240]</a></span>
+All the means requisite to success should have
+been taken; all the resources possessed by the
+Empire should have been drawn upon and
+nothing needlessly left to chance. Above all
+things else, the views of the man charged with
+the execution of the plan should have been
+elicited and carefully weighed. As a matter
+of fact, General Townshend&#8217;s judgment was
+decidedly adverse to the expedition under the
+conditions in which it was planned. For the
+forces assigned to him, amounting to far less
+than a division, were absurdly inadequate, and
+their inadequacy was easily demonstrable. He
+ought to have had at least two divisions more.
+But once again the game of divided control
+and diluted responsibility was played, with consequences
+which would in any other country
+suffice to wreck the Government chargeable
+with the blunder.</p>
+
+<p>Yet it is to the men who committed that
+and all the other blunders that the nation still
+looks confidently for salvation!</p>
+
+<p>If the British people finally obtain it under
+those leaders they may fairly claim to have
+abrogated the law of cause and effect.</p>
+
+<p>These same men are still the mentors and
+the spokesmen of a free nation which can
+choose its leaders. It is they to whom the
+people has entrusted the conduct of the most
+critical phase of the whole campaign in which
+the recurrence of similar errors may foredoom
+the Empire to disruption. And it is, humanly
+speaking, inconceivable that miscalculations
+of that kind should be eliminated, in view of
+the crucial fact that the Ministers at present
+in power, if we may judge by their utterances
+and their acts, entertain a fundamentally false
+conception of the relations between the Teutons<span class='pagenum'><a name="Page_241" id="Page_241">[241]</a></span>
+and the allied nations. Among the elements
+of that conception there would seem to be no
+room for the historic past. The present stands
+by itself with a history that goes no further
+back than the month of July 1914, and will
+convulsively come to an end with the truce
+that ushers in the future treaty of peace. For
+that diplomatic instrument will put an end
+to the struggle and inaugurate an era of international
+tranquillity. Such is the theory on
+which their entire policy is based.</p>
+
+<p>We must fight on now to a <i>finish</i>, but the
+upshot is sure to be a finish. Their anticipations
+of an unclouded dawn, when the present
+night has worn itself into the streaky greyness
+of morning, are certain to come to pass. The
+ordeal which we are undergoing is tremendous,
+but at any rate the nation and its allies will
+emerge from it rejuvenated under the spell of
+the present magicians, as the old ram emerged
+lamb-like and frisky from Medea&#8217;s cauldron.
+That, in brief, would seem to be the picture in
+the mind&#8217;s eye of the British Government, and
+to that conception all their plans are being
+accommodated.</p>
+
+<p>As a matter of ascertainable fact, neither we
+nor our Allies have anything of the kind to
+hope for. In the near future the present
+campaign will have come to a close, but not
+the struggle between ourselves and our Teuton
+aggressors. For this war, far from ending the
+tragic duel between the two types of community
+life in Europe, is but one of its transient
+episodes. The trial of strength began many
+years ago and will not be decided for many
+years to come, how satisfactory so ever the
+terms of the future peace may be to ourselves
+and our Allies. This is a fundamental truth<span class='pagenum'><a name="Page_242" id="Page_242">[242]</a></span>
+which has not yet penetrated the consciousness
+of either rulers or people. And for that
+reason the problem awaiting them is mis-stated,
+belittled. According to the received
+version it is to beat back German aggression
+and render it impossible in the future. Now,
+however successfully the first part of the task
+may be discharged&mdash;and it is still very uphill
+work&mdash;the second is a sheer impossibility, and to
+lay our plans as though it were feasible and
+soon to be realized, is to embark on the body
+of a sleeping whale in the belief that it is an
+island in the sea. And to negotiate peace
+abroad and give an impulse to politics at
+home, with that comforting prospect in mind,
+is to lead the nation into a Serbonian bog
+whence no escape is possible. The leaders of
+Great Britain are so permeated with the
+duties, the rights, the hopes and the strivings
+of parliamentary parties, that they involuntarily
+think in terms of home politics and have
+no chord in their being responsive to the
+emotions that sway the German soul and nerve
+the German arm.</p>
+
+<p>To the average mind it is clear that the
+terms on which peace might be negotiated,
+if the end of the war were also to be the end
+of the struggle, might differ considerably from
+those on which a statesman would properly
+insist, were he convinced that the sheathing
+of the sword marked but the opening of a new
+phase of the duel. And it is this alternative
+which it behoves us to lay at the foundation
+of our peace treaty, if it should rest with the
+Allies to impose their terms. The problem,
+therefore, which a Government that governs
+has to tackle, is twofold: the conclusion of
+such a peace as will confer on the Entente<span class='pagenum'><a name="Page_243" id="Page_243">[243]</a></span>
+States, individually and collectively, all possible
+advantages, not for contemplating such a
+tranquil state of things as the ministerial conception
+postulates, but for the prosecution of
+the struggle with the greatest chances of
+success, and for the reconstruction of the
+social fabric at home with a view to harmonizing
+it with the new requirements, and, in
+particular, with the needs created by the
+constant state of economic, financial, diplomatic
+and journalistic warfare in which we
+shall be engaged. The social ordering of
+Great Britain must be not merely modified
+but remodelled and rebuilt from the groundwork
+to the coping-stone. One of the first
+needs of the nation is the education, physical
+and spiritual, of the new generation. Patriotic
+sentiment must be engrafted on the receptive
+soul of the child, and its range of sympathy
+widened and deepened. The duty of self-abnegation
+for the welfare of the community must
+be inculcated, together with new conceptions
+of personal dignity and worth. To the domestic
+sentiment in those cramped and distorted forms
+in which it still survives in Britain, where we
+cling tenaciously to so many institutions devoid
+of life and utility, a less commanding
+part must be assigned in the future than
+heretofore. Above all, it behoves us to encourage
+the scientific spirit with its correlates,
+patient thought and study, as opposed to the
+arrogant amateurism which, without rudimentary
+qualifications, claims to have a voice
+in the solution of every problem under the
+sun. It is largely to this dilettante temperament
+of the nation and its rulers that we owe
+the disasters we have sustained and the dangers
+with which we are threatened.<span class='pagenum'><a name="Page_244" id="Page_244">[244]</a></span></p>
+
+<p>Looking back, then, dispassionately upon the
+movement, deliberately organized over thirty
+years ago by the restless German mind and
+pushed steadily forward ever since over diplomatic
+barriers, financial hindrances, economic
+obstacles and international laws, one is struck
+less by the unparalleled magnitude of the
+enterprise than by the blindness and sluggishness
+of its destined victims. And it is largely
+in these and kindred negative qualities that
+we have to seek for the clue to the astonishing
+sequence of successes scored by our
+enemies in their military and naval, as well
+as their politico-economic, campaigns. Moreover,
+these same defects, deep-rooted and
+widespread among the allied peoples, constitute
+their main source of weakness during the
+economic and decisive tug-of-war which will
+be ushered in by the treaty of peace. For the
+temperament, traditions and strivings of each
+of these nations are so many obstacles to the
+gathering of their scattered moral energies
+and wasted spiritual forces in one fertilizing
+stream. They are bent on joining incompatible
+elements in a political synthesis. In
+the name of national independence and by
+way of a telling protest against the vassalage
+which binds Austria to Germany, the Entente
+nations spurn the notion of any common
+accord which requires the practice of self-surrender
+as a base, and are resolved under the
+strain of circumstance to present such a loosely-joined
+front to the enemy as will not involve
+their foregoing one iota of their freedom or one
+tittle of their national claims. How, in these
+conditions, they expect ever to rise to that
+height of moral fervour without which the
+quasi-ascetic effort demanded of them is<span class='pagenum'><a name="Page_245" id="Page_245">[245]</a></span>
+inconceivable, has not yet been explained.
+As usual, they count upon effects without
+causes, upon an ingathering of the harvest
+with no preceding seedtime. Now, interdependence
+and compromise are the indispensable
+conditions of that cohesion which
+alone can engender the force required. A
+condition approaching organic coherency must
+be attained before a smooth working system
+can be created among the Allies. But as each
+of them is still rooted to the past, permeated
+by its own interests and aspirations, and jealous
+not only of the substance of its liberty but
+also of the shadow, the distance yet to be
+traversed before the goal can be reached is
+enormous, and the road rugged and beset with
+pitfalls.</p>
+
+<p>A glance at the past and present may
+enable us to gauge aright the nature of some
+of the difficulties that have to be surmounted
+in the future.</p>
+
+
+
+<h2><a name="CHAPTER_XIX" id="CHAPTER_XIX"></a>CHAPTER XIX<span class='pagenum'><a name="Page_246" id="Page_246">[246]</a></span></h2>
+
+<h3>PAST AND PRESENT</h3>
+
+
+<p><span class="smcap">Let</span> us begin with the present, in view of the
+circumstance that the war has brought the
+allied peoples into a much nearer approach
+to union and has more fully systematized their
+efforts than can ever be the case in peace time.
+We find, then, two groups of belligerents pitted
+against each other, whose resources in men,
+money and economic supplies are strikingly
+unequal. The Teutons are by far the weaker
+side, and even in spite of their long preparations
+ought to have been thoroughly beaten
+long ago. So evident and encouraging was the
+comparison that the Entente nations themselves
+boldly grounded their calculations on it,
+and anticipated a brief spell of warfare and a
+decisive victory. And this forecast seemed
+reasonable enough when the material elements
+were weighed and contrasted. The Entente
+communities occupy 68,031,000 square kilometres
+of territory, which are inhabited by a
+population of 770,060,000, or say 46 per cent.
+of the entire land on the globe and 47 per cent.
+of the entire human race. The Central Empires,
+on the other hand, possess no more than
+5,921,000 square kilometres with 150,199,000
+inhabitants, which amounts to only 4 per
+cent. of dry land on the globe and 9.1 per
+cent. of mankind. Add to that the circumstance
+that in the air our superiority over our<span class='pagenum'><a name="Page_247" id="Page_247">[247]</a></span>
+enemies was undisputed, and that the odds in
+favour of our enlisting the active support of
+the Balkan States were overwhelming. The
+chances in favour of the Allies, therefore, were
+and are enormous. That being so, why, it
+may well be asked, has the course of the
+military, naval and air campaign so uniformly
+favoured the weaker side? It is no answer
+to point out that Germany and Austria had
+been organizing the war for over thirty years,
+or had contrived to mobilize all their resources
+when the first shot was fired. That
+explanation would account for their progress
+during the first few months, but not
+for the victories they scored down to the
+beginning of April 1916. It was loudly proclaimed
+by British journalists that the Berlin
+General Staff had based its plan on the assumption
+that the struggle would be decided in a
+few months and certainly by the end of 1914.
+And the inference was drawn that as this time-table
+was upset, Germany was so bewildered
+that she could hardly draw up another plan
+and adjust her forces to that. She had shot
+her bolt, we were assured, had missed the
+target, and it was beyond her power to put
+forth another effort. But events refuted these
+false prophets, without, however, greatly impairing
+their credit with the multitude. They
+still continue to describe Germany&#8217;s dire straits
+and foretell her speedy collapse. And they
+are listened to with eagerness and trust.</p>
+
+<p>In truth the root of the matter lies deeper.
+One of the most telling factors, in every armed
+conflict between peoples, consists of the sum
+total of imponderabilia which elude analysis.
+Intellectual and moral equipment, as I ventured
+to write when the war began, sometimes counts<span class='pagenum'><a name="Page_248" id="Page_248">[248]</a></span>
+for more than battalions. And I instanced the
+Russo-Japanese campaign as a case in point.
+One belligerent may regard the campaign as a
+temporary calamity to be endured until it
+can be conveniently got rid of, while another
+may gird his loins and go forth to battle exultant
+like the fanaticized warriors of Cromwell.
+The former will contemplate the struggle and
+regulate the conduct of it in the light of
+immediate expediency, while the latter will
+treat the war as a life-task and boldly throw
+the weight of everything he has, and is, and
+hopes for into the blows he deals his adversary.
+Now in this struggle the Teuton is the
+fanaticized warrior. He is fighting for an ideal,
+which, whether or no he understands it, he
+caresses and deems his very own. The hopes
+and dreams of the leaders of the nation have
+been communicated to the individual citizen,
+who, having lived for them, is ready to die
+for them. Our people, on the other hand,
+have never enjoyed that education in patriotism
+which is bestowed on every Teuton, and they
+are wanting in the strength of imagination,
+the spirit of cohesion and the energizing social
+faith which might have made up for the
+deficiency.</p>
+
+<p>Then, again, over against the Allies&#8217; inexhaustible
+resources we must put the marvellous
+capacity for organization which intensifies
+those of our enemy. The nearest known
+approach to it is found in the Japanese, who,
+there is little doubt, if pressed by circumstance,
+would match the Teuton in resourcefulness and
+even outdo him in the spirit of self-sacrifice.
+To this precious asset in Germany&#8217;s leaders
+corresponds a superlative degree of docility
+and self-surrender in her people which offer<span class='pagenum'><a name="Page_249" id="Page_249">[249]</a></span>
+a striking contrast to the strongly marked
+individualist tendencies of the British, French
+and Russian races. Nay, one may go farther
+and assert that the central streams of national
+life in each of these countries flows in channels
+of party politics, which no influential leader
+has ever attempted to deepen or widen. The
+German, on the contrary, as we saw, associates
+his every work and undertaking with ideas of
+almost cosmic breadth and is actuated by
+interests to which all the larger problems of
+humanity are akin. And he took timely possession
+of every lever that might contribute
+to the success of his revolt against Europeanism,
+when his far-reaching scheme was yet in
+the early phases of execution.</p>
+
+<p>Everything that human foresight could think
+of was carefully studied, everything that human
+ingenuity could provide for was thoroughly
+effected and systematized. Royal dynasties
+were founded abroad by German princes.
+German colonies settled in Russia, Poland,
+Palestine and Brazil. German schools were
+opened in Roumania, Spain, Asia Minor, the
+Ottoman Empire, the Tsardom. Foreign newspapers
+were bought or subsidized. Protestant
+sects with pro-German tendencies were encouraged.
+Banks were founded with Entente
+capital and employed to ruin the trade of
+the nations that subscribed it. Colonies of
+mechanics, clerks, middlemen were settled in
+every European country and colony and obtained
+control of the nation&#8217;s industries and
+trade. Special legislation was enacted in Berlin
+to enable the German to become a foreign
+subject in externals while bound by all the
+duties of a citizen of his own country.</p>
+
+<p>As the hour for the military and naval<span class='pagenum'><a name="Page_250" id="Page_250">[250]</a></span>
+struggle was drawing near intestine strife
+was industriously stirred up in all those
+countries whose rivalry the Germans had
+reason to apprehend. Emissaries were despatched
+to Egypt who made common cause
+with the disaffected and restless elements of
+the population, cultivated friendship with the
+Senussi and smuggled in arms to would-be
+African rebels. In India German &#8220;scientific
+explorers&#8221; hobnobbed with the natives, criticized
+the state of &#8220;serfage&#8221; to which British
+rule had reduced one of the most highly
+civilized races of mankind, and made overtures
+to the Afghans. To Abyssinia another &#8220;scientific
+expedition&#8221; was despatched, which consisted
+of a number of German officers and
+one explorer. After a circuitous and difficult
+journey it arrived at Massaua in March 1915,
+and requested the authorization of the Italian
+Governor of Erithea, the Marquess Salvago-Raggi,
+to push on to Adis Abeba, in order to
+re-establish communications between the German
+Legation there and the Berlin Foreign
+Office. The real object of the expedition, as
+the Italian Government well knew, was to
+incite the young Negus to attack the British
+in the Sudan and the French in Djibuti. But
+Italy, although still neutral, understood too
+well how difficult it would have been for her
+to limit Abyssinia&#8217;s warlike operations to the
+French and British possessions and ward them
+off from her own colonies. Baron Sonnino
+accordingly declined to accord the permission
+asked for, and consented only to allow a large
+consignment of &#8220;correspondence&#8221; to be sent
+on.<a name="FNanchor_107_107" id="FNanchor_107_107"></a><a href="#Footnote_107_107" class="fnanchor">[107]</a></p>
+<p><span class='pagenum'><a name="Page_251" id="Page_251">[251]</a></span></p>
+<p>Later on Turkish officers were sent to Libya
+to egg on the Arabs to harass the Italians
+there. The Kaiser himself despatched a letter
+in Arabic to the Senussi which was intercepted
+on a Greek sailing vessel near Tripoli.
+It is said to have been enclosed in an embossed
+casket, and was found on board together with
+&pound;4000 in gold and a number of oriental gifts.
+The letter, if genuine, is worth recording.
+Wilhelm II., the Supreme Head of the Protestant
+Church in Germany, gives himself therein,
+among other high sounding titles, those of
+Allah&#8217;s Envoy and Islam&#8217;s Protector, and
+states explicitly that it is his will that the
+Senussi&#8217;s doughty warriors should drive the
+&#8220;infidels&#8221; from the land which is the heritage
+of the true believers and their chief. This,
+from the &#8220;supreme Bishop&#8221; of one of the
+Christian Churches, is characteristic.</p>
+
+<p>In Asia Minor Germany&#8217;s machinations were
+carried on with a much greater measure of
+success. Her former opponents had withdrawn
+their opposition and undertaken to
+lend her positive assistance to attain ends
+which were directed against themselves. This
+chapter of Entente diplomacy is marked by
+broad streaks of farcical comedy calculated
+to bewilder the serious student. France was
+converted to political orthodoxy on the subject
+of the Baghdad Railway and its cultural
+significance. Some of her publicists frankly
+repented that she had so long looked upon it
+with disfavour, and threw the blame on Russia,
+for whose sake they had kept aloof. At
+Potsdam the Tsar&#8217;s Minister abandoned his
+objections to the Baghdad enterprise and
+undertook to build a railway line from Persia,
+which would allow another stretch of country<span class='pagenum'><a name="Page_252" id="Page_252">[252]</a></span>
+to be tapped by the German Railway Company.
+Great Britain, acknowledging the error of her
+ways, agreed that Koweit should not be the
+terminus and made valuable concessions to the
+Teuton, the realization of which was hindered
+by the outbreak of the war. Turkey, through
+Enver, who had imported from the Fatherland
+a band of military &#8220;instructors&#8221; under Liman
+von Sanders, became the <i>&acirc;me damn&eacute;e</i> of
+Germany. In Persia every warlike and predatory
+tribe was courted by the Teuton intruder,
+and the German mission at Teheran,
+as well as the Consulates in the chief towns
+of the Shahdom, became centres of agitation
+against Britain and Russia and branches of
+the German General Staff.</p>
+
+<p>In the Tsar&#8217;s dominions German agents
+organized a series of strikes in the various
+works belonging to their countrymen, paid
+the strikers and fostered a subversive political
+movement which bade fair to culminate in
+a real revolution. In Belgium the Flemings,
+who had for years been protesting against the
+refusal of their Government to give them a
+Flemish University in Ghent, were incited against
+the Walloons, whose dialect is of French origin
+and whose sympathizers were the entire French
+people. And one of the joint acts of the
+German administration in Brussels has been
+to appoint a commission to submit a scheme
+for the creation of a Flemish high school in
+Ghent and accentuate the differences between
+the two elements of the population.<a name="FNanchor_108_108" id="FNanchor_108_108"></a><a href="#Footnote_108_108" class="fnanchor">[108]</a></p>
+
+<p>Meanwhile, in Germany the work of organization
+<span class='pagenum'><a name="Page_253" id="Page_253">[253]</a></span>went steadily forward. While British
+Ministers were on the look-out for reasons or
+pretexts for diminishing expenditure on shipbuilding,
+Germany, under von Tirpitz, was
+stealing a march on us and increasing hers.
+And over and above this, she was arranging a
+surprise in the shape of submarines and aircraft
+which, had the war been deferred for
+another couple of years, might have not only
+removed the odds in our favour but given
+her a decided superiority over us. And, by
+way of intensifying the value of her fleet, she
+set to work to deepen the Kiel Canal and thus
+to confer a sort of ubiquity on her battleships,
+which can now concentrate in the North Sea
+or the Baltic without let or hindrance from
+the enemy. When the epoch of the Dreadnoughts
+was opened German armoured ships
+had a displacement of no more than 13,000
+tons. The larger type of battleship, which
+was afterwards constructed, could not pass
+through the Canal, which had to be deepened.
+The necessary work was so thoughtfully and
+opportunely taken in hand that it was terminated
+in July 1914, just when the harvest
+for that year was also ingathered. Asphyxiating
+gas had been manufactured in the year
+1911, as the Russians have discovered on
+certain of the machines. Thus when the fatal
+hour struck, everything was ready.</p>
+
+<p>In the financial sphere, too, we find the same
+comprehensive survey, the same eye for detail,
+the same forethought and combination. When
+hostilities broke out British banks held about
+&pound;1,100,000,000 of their depositors&#8217; money. A
+large percentage of this had been employed to
+discount foreign, and in especial German bills,
+so that the paper remained in Great Britain<span class='pagenum'><a name="Page_254" id="Page_254">[254]</a></span>
+and the gold was transferred to Germany,
+where it plays its part against us. But those
+marvellous efforts put forth with such effect
+by our enemies made no appeal to our rulers.
+Nowhere in the British Empire was there any
+man of mark thinking and acting for the
+community. The political pilots who had
+charge of the state-ship possessed neither chart
+nor compass nor rudder. Neither did they
+feel the need of these things. The Government
+disbelieved in war and was minded, if a
+struggle should be precipitated, to keep out
+of it. Nobody envisaged the needs and interests
+of the Empire as aspects of a single
+problem. Nobody had any clear-cut plan for
+the working out of the destinies of the British
+people. The interests of party, the expediency
+of local reforms, the squabbles between this
+faction and that, constituted the burning
+topics of the hour, and there were none other.
+And it was while we were thus wrangling with
+and threatening each other that the blast of
+the clarion ushered in the day of doom.</p>
+
+<p>The secrets of nature, revealed by science to
+a nation which acknowledges no restraints,
+then became weapons of wholesale destruction
+to be used to subjugate all civilization. Now,
+there are some reasons for assuming that
+civilization will escape the thraldom, but there
+are unhappily equally cogent grounds for
+apprehending that some of its most precious
+achievements will be irrecoverably lost and
+others greatly impaired. Had there been a
+master mind at the helm of the British state-ship
+before the war or at its opening, we might
+have been spared the necessity of signing one
+day a temporary peace amid the ruins of
+European culture.<span class='pagenum'><a name="Page_255" id="Page_255">[255]</a></span></p>
+
+<p>But no puissant genius in any of the allied
+countries towered above the dead level of mediocrity.
+Great Frenchmen, Britons and Russians
+were said to be available, but there was no
+great man in evidence. And this want proved
+disastrous. In Germany, on the other hand, it
+was hardly felt. For it was compensated by the
+existence of a vast human machine, adaptable
+to every change of circumstance, capable of
+assuming countless Protean forms simultaneously,
+ready with a solution for the most
+unexpected problems, provided with organs
+suited to the discharge of every conceivable
+function, all directed to the same end. It was
+the same organism that had worked with such
+brilliant success for over thirty years, growing
+and perfecting itself steadily until it became
+the concrete manifestation of a whole system
+of thought, sentiment and co-ordinated action.
+Germany had developed into a powerful national
+State in which the spirit of self-surrender for
+the good of the community animates all sections
+alike, all of which co-operate effectively,
+through the organizations which they spontaneously
+created, for the realization of their
+common objects. And therein lay her force.</p>
+
+<p>On the outbreak of war Germany was faced
+with a group of the most arduous and intricate
+problems any Government has ever yet had to
+tackle. For most of them she had had the
+time and the forethought to prepare. But
+others arose which had been neither provided
+for nor foreseen, in consequence of her mistaken
+assumption that Great Britain would
+hold aloof from the war. The total value of
+her exports and imports in the year 1913 was
+computed at 1,000,000,000 sterling, and an
+infinity of fine threads bound her industrial<span class='pagenum'><a name="Page_256" id="Page_256">[256]</a></span>
+activity with foreign countries. By Great
+Britain&#8217;s declaration of war, for which Germany
+was unprepared until the last days of July,
+nearly all these threads were snapped asunder,
+and the industrial and economic life of the
+Empire had to be swiftly readjusted to the
+new conditions. And here it was that the
+nation rose as one man to the unparalleled
+occasion, faced the tremendous ordeal, and,
+contrary to the expectations of its adversaries&mdash;ever
+prone to judge others by themselves&mdash;has
+continued not merely to exist, but
+to extend its conquests ever since.</p>
+
+<p>It was in the financial sphere that the first
+strain was felt. But perilous though it actually
+was, it would have been intolerable but
+for the precautionary measures adopted in
+July and the ingenious devices applied by the
+Reichsbank immediately after. The first step
+taken was to substitute short-terms credit for
+long. The gold in the Reichsbank increased
+steadily, and from 1,009,000,000 marks on
+July 7, 1913, it rose to 1,356,000,000 by
+July 7, 1914. The war treasure hoarded in
+the Julius-Tower was doubled, so as to enable
+the Imperial Bank to issue 720,000,000 marks
+on the strength of it, whereby its gold
+cover was augmented from 1,253,000,000 to
+1,447,000,000. A further considerable reserve
+of silver was laid by, which proved extremely
+useful later on. One result of this policy was
+that on the fatal 31st July, no less than
+4,500,000,000 marks in banknotes could be
+issued without exceeding the limits prescribed
+by the law.<a name="FNanchor_109_109" id="FNanchor_109_109"></a><a href="#Footnote_109_109" class="fnanchor">[109]</a> A network of Loan Banks was
+also created throughout the country in which
+<span class='pagenum'><a name="Page_257" id="Page_257">[257]</a></span>every one, possessed of property of any description,
+could obtain credit to any amount, provided
+the pledges warranted the advance.</p>
+
+<p>Nor were the large groups of business men
+neglected who had no pledges to offer yet sorely
+needed credit. For their behoof War Credit
+Banks were instituted, which transacted business
+on curious lines. A city or town subscribed
+a third or even more of the shares
+of the borrowing company, and the Imperial
+Bank conferred the right of rediscounting bills
+of exchange up to an amount equal to three
+times the value of the capital, and sometimes
+even more. Institutions were opened for advancing
+money on house property, and for
+assisting special branches of industry. The
+Hansa-Bund, for instance, founded a War
+Credit Bank for &#8220;the Middle Classes&#8221; which,
+with the authorization of the Reichsbank,
+rediscounts bills of exchange drawn by individuals
+for whom the Commune vouches.
+Associations were constituted in the country
+and in towns, and the nature of their work
+is evidenced by the 18,000 rural Savings and
+Credit Banks and 16,000 urban and trade
+associations.<a name="FNanchor_110_110" id="FNanchor_110_110"></a><a href="#Footnote_110_110" class="fnanchor">[110]</a> For farmers and struggling landowners,
+a Central Board, for the purchase of
+machines, was created, which also superintended
+the equitable distribution of orders among
+industrial firms.</p>
+
+<p>The suddenness of the declaration of war
+had for its effect, and perhaps also for one of
+its objects, the stemming of the flow of gold
+from the Reichsbank before it had exceeded
+the total of 100,000,000 marks and also
+the prevention of its disappearance from the
+<span class='pagenum'><a name="Page_258" id="Page_258">[258]</a></span>country. Soon afterwards gold was brought
+in astonishing quantities to the bank by all
+classes of citizens who had hoarded it jealously
+in peace-time, but now recognized the criminality
+of applying the principles of individual
+ownership to what of right belongs to the
+jeopardized community. For the nation realized
+the fact that the condition of public
+danger entitled the Government to wield an
+unlimited degree of power over the lives and
+property of the people for the welfare of the
+community.</p>
+
+<p>If we compare this intelligent appreciation
+of the position by rulers and ruled, and their
+readiness to accommodate their respective
+actions to it and play their parts as organs for
+the discharge of special functions, with the
+haziness of conception, the misinterpretation
+of events, and the utter lack of co-operation
+displayed by the corresponding sections of the
+allied communities, we shall grasp the secret
+of the superiority of the seemingly weaker
+group of belligerents and the paltry results
+hitherto achieved by the stronger.</p>
+
+<p>German industry, too, the source of the
+nation&#8217;s prosperity, was shaken to its foundations.
+It had worked largely for the foreign
+market. And all at once its exports were cut
+down by 60 per cent., because of the stoppage
+of the supplies of raw materials. Imports
+also fell by 75 per cent. One immediate
+consequence of this partial stagnation was
+the enormous increase of the army of the
+unemployed. Although 4,000,000 men were
+taken from the various industries and despatched
+against the Belgians, French and
+Russians, there were at the end of August
+no less than 3,400,000 men thrown out of<span class='pagenum'><a name="Page_259" id="Page_259">[259]</a></span>
+employment.<a name="FNanchor_111_111" id="FNanchor_111_111"></a><a href="#Footnote_111_111" class="fnanchor">[111]</a> Thus the total number of unemployed
+was 7,400,000, and as there were
+17,000,000 hands employed before the war,
+it may be inferred that German industry was
+reduced by 43&frac12; per cent. It was in these
+conditions that the Teuton capacity for organization
+was manifested.</p>
+
+<p>Two great industrial organizations flourished
+in Germany before the war,<a name="FNanchor_112_112" id="FNanchor_112_112"></a><a href="#Footnote_112_112" class="fnanchor">[112]</a> and although
+occasionally disagreeing on various points,
+sensibly furthered the interests of their countrymen
+at home and abroad. No sooner was war
+declared than they dropped their differences
+and constituted a War Committee for German
+Industry. Among the varied functions of this
+new body were the distribution of information
+respecting orders given by the State, new
+legislation, etc.; co-operation with firms for the
+fulfilment of contracts despite the outbreak of
+hostilities; the selection of operatives, clerks,
+etc., for firms needing these; the obtainment
+of places for the unemployed and the organization
+of the credit system.</p>
+
+<p>This Committee also applied for and received
+permission to have all those skilled artisans
+recalled from the front whose services were
+deemed indispensable for war industries. It
+likewise watched over the distribution of State
+orders, and saw that each of the various firms
+received its due share.</p>
+
+<p>The organization of German industry during
+the war was taken in hand by a group of
+experts and officials possessed of the insight,
+knowledge and power necessary for the discharge
+of the arduous task. Among the
+<span class='pagenum'><a name="Page_260" id="Page_260">[260]</a></span>members of the Board we find the names of
+representatives of finances, industries and the
+Government; the Minister of the Interior, all
+the members of the Federal Council, M.M.
+Gwinner, Bleichr&ouml;der, Siemens, etc. Special
+bureaux were opened for various kinds of
+supplies, a Central Office for the War Supply
+of Tobacco, another for that of chocolate, a
+third for leather, a fourth for linen, etc.<a name="FNanchor_113_113" id="FNanchor_113_113"></a><a href="#Footnote_113_113" class="fnanchor">[113]</a>
+Another group of organizations dealing with
+the acquisition and distribution of raw stuffs
+possessed in certain cases the right of expropriation,
+and is not allowed to make more
+than a certain limited profit on its transactions.
+Among them are an association for the supply
+of metals, another for chemicals, and a third
+for woollen stuffs.</p>
+
+<p>In consequence of the shortage of raw
+materials, economy and the employment of
+substitutes were everywhere resorted to spontaneously
+before the Government had time to
+intervene. From every household came old
+copper vessels, copper wire, worn-out clothing
+from which the manufacturers removed the wool,
+leather straps, shoes, bags, etc. From Belgium
+and France everything that could be utilized as
+raw material was hurriedly transferred to the
+Fatherland. At first the supply of aluminium
+for castings and Zeppelins was insufficient, but
+a composition of spelter and tin was invented,
+which answered the main purposes equally
+well. Nickel being also scarce, coins of 10
+pfennige were withdrawn from circulation and
+<span class='pagenum'><a name="Page_261" id="Page_261">[261]</a></span>utilized, while considerable quantities were
+imported from Scandinavian countries. The
+place of jute was taken by paper, and from
+paper under-garments were made. Roasted
+acorns, theretofore employed in lieu of coffee
+only by the poorer classes, thenceforward
+became the daily beverage of the middle classes
+as well. A substitute for olive oil was extracted
+from cherry stones, tainted meat was rendered
+harmless by chemical methods, nitrates were
+extracted from the air by a Norwegian process
+which the Germans had perfected and applied.</p>
+
+<p>Now, these achievements and the marvellous
+adaptability, energy and resourcefulness which
+they connote, are no mean elements in Germany&#8217;s
+equipment for the coming economic
+struggle. They proclaim that the mind of the
+Teuton man of business is too firmly riveted
+on the goal to be fascinated by any special
+route leading towards it, and that it is sufficiently
+free and disengaged to turn with eager
+interest to any problem, however novel, with
+which it may be suddenly confronted. Use
+and want are not its masters, sluggish contentment
+cannot numb its activity. The customers&#8217;
+requirements, nay, their whims and fancies,
+are ever sure to receive close attention and
+prompt satisfaction. The contrast between
+this unflagging alertness and the drowsy apathy
+of the British manufacturer and tradesman is
+an old story, which has evoked comments
+sharp enough, it would seem, to arouse the
+commercial community to a lively sense of
+its danger and duty. And yet there are, unhappily,
+cogent grounds for believing that the
+malady of listlessness is as malignant to-day
+as before the war.</p>
+
+<p>Now, these organizing and inventive talents<span class='pagenum'><a name="Page_262" id="Page_262">[262]</a></span>
+of the Teuton, as compared with the subordinate
+aims, fitful energies and honest but mischievous
+conservatism of our own leaders and
+people, bear witness to the same twofold
+talent of the German for looking far ahead
+and contriving expedients on the spur of the
+moment. Great Britain&#8217;s participation in the
+struggle cut off Germany from the sea and
+gave the two Central Empires the aspect of a
+beleaguered city. Hopes were entertained by
+the Allies that famine might reinforce the
+work of their armies and navies in compelling
+the enemy to sue for peace. About 9 per
+cent. of the corn used in Germany usually
+came from abroad, and now the interruption
+of the communications rendered this source of
+supply precarious. The soldiers, too, had to
+be fed on a scale of greater abundance than
+usual, and the prisoners of war, however poorly
+nourished, would consume a certain amount
+of corn. The first measure promulgated to
+meet the new conditions was a prohibition of
+exportation. Potato flour was employed in
+bread-baking. War bread was standardized
+for the whole Empire. The principal cities
+purchased vast quantities of cereals, and
+Prussia founded a War Corn Association for
+the acquisition of cereals to be stored until the
+ensuing spring. Expropriation was legalized.
+In these ways &pound;40,000,000 worth of cereals
+were got together for consumption. The War
+Corn Association operated with a capital of
+&pound;2,500,000, to which the States subscribed over
+one million, and the big cities one million,
+and the great industrial firms &pound;450,000.<a name="FNanchor_114_114" id="FNanchor_114_114"></a><a href="#Footnote_114_114" class="fnanchor">[114]</a> This
+corn was paid for at the highest market
+rates, the owners being compelled by law to
+<span class='pagenum'><a name="Page_263" id="Page_263">[263]</a></span>declare how much they possessed. With each
+of these proprietors&mdash;in the first phase with
+5,000,000 landowners&mdash;separate arrangements
+were concluded. The Association employed
+for the purpose nearly three thousand commissioners
+and five hundred other officials,
+and the Credit Banks made advances on the
+quantities sold.</p>
+
+<p>Simultaneously with this home organization
+the other multifarious tasks of devising new
+weapons for the war, improving the various
+types of aircraft, building larger submarines
+and guns of greater calibre went forward with
+unimpaired speed. Nothing was too vast or
+too complicated to be undertaken, no detail
+was too trivial to be studied. Politics,
+economics, military strategy and national
+psychology were all cunningly interwoven in the
+various schemes laid for the destruction of the
+Allies. Russia was inveigled into continuing
+her trade with Germany, which, as we saw, was
+during the first year a nowise negligible quantity.</p>
+
+<p>A piquant detail in this connection is worthy
+of mention.<a name="FNanchor_115_115" id="FNanchor_115_115"></a><a href="#Footnote_115_115" class="fnanchor">[115]</a> It is affirmed that the Customs
+House authorities on the Russo-Swedish
+frontiers discovered to their dismay that for
+well over a year Germany had been receiving
+from Russia a large proportion of the raw
+materials necessary for the fabrication of
+asphyxiating gas. It appears that Sweden,
+which in peace time was wont to import
+from the Tsardom a certain quantity of those
+products, trebled its demands during the first
+year of the war.</p>
+
+<p>Contingents of contrabandists were despatched
+to Greece, Spain, Morocco, Holland,
+<span class='pagenum'><a name="Page_264" id="Page_264">[264]</a></span>Italy, Switzerland and the United States.
+Secret stations were established for supplying
+submarines with the wherewithal to carry on
+their war against inoffensive passenger steamers.
+Agents were kept in the neutral countries to
+corrupt the local press and poison the wells
+of information in order to allure the neutrals
+into belligerency. A highly organized news-distributing
+bureau was equipped in Berlin
+with all the requisites for falsifying facts
+and distorting military tidings. Its branches
+are spread over the globe. Passports were
+forged at first and later on genuine ones
+abstracted from the Berlin Foreign Office and
+handed over to spies. Strikes and outrages
+were engineered in the United States, Italy,
+and Russia. The Putiloff works, which before
+the war were nearly falling into German hands
+and have since been supplying munitions for
+the Tsar&#8217;s army, were stricken with creeping
+paralysis, against which exhortations and
+threats were vain, and finally they had to be
+sequestrated by the State. Millions of dollars
+were expended in the United States in efforts
+to prevent the manufacture or the transport
+of munitions to the Allies. In Greece vast
+sums were cheerfully disbursed by Baron
+Schenk to work the elections and defeat
+Venizelos. Roumania was overrun by bands
+of Germans whose functions were to calumniate,
+vilify, corrupt and threaten. Spain has
+been wrought upon in like manner by a small
+army of Teutons abundantly supplied with the
+same weapons. Persia was scoured by German
+agitators who deployed all their talents and
+acquirements, their knowledge of the language
+and acquaintance with the native religion, to
+rouse the natives against Russia and Great<span class='pagenum'><a name="Page_265" id="Page_265">[265]</a></span>
+Britain. Abyssinia, although deprived by
+Italy of the presence of the German &#8220;scientific
+expedition,&#8221; was induced by the German
+Minister at Adis Abeba to behave in such a
+way that in the month of March 1916 King
+Victor&#8217;s Government found it advisable to
+issue a decree ordering <i>urgent</i> fortifications
+to be constructed in Erythea.<a name="FNanchor_116_116" id="FNanchor_116_116"></a><a href="#Footnote_116_116" class="fnanchor">[116]</a> Sweden has
+been provided with war news and political
+information free of charge by the generous
+Press Bureau of Berlin. In Belgium persevering
+exertions have been put forth to sow discord
+between Flemings and Walloons. In China,
+where a British adviser is employed by the
+Chief of the State, Yuan Shih Kai has turned
+a willing ear to the mentors from the Fatherland,
+with results which bear the hall-mark of
+Germany. In Mexico Villa&#8217;s murderous raids
+on American territory, instigated, it is asserted,
+by German emissaries, compelled United States
+troops to pursue him over the frontiers, and
+raised an issue which may be decided only by
+a regular campaign. Thus Teuton diplomacy,
+at whose failures we are so prone to rail, contrived
+on the one hand to pass off the assassinations
+of Americans on board the <i>Lusitania</i> as
+a justifiable act, and on the other to present
+the New Mexico murder, which was the work
+of a mere savage, as such an outrage on the
+law of nations as warrants the employment of
+military force.<a name="FNanchor_117_117" id="FNanchor_117_117"></a><a href="#Footnote_117_117" class="fnanchor">[117]</a></p>
+
+<p><span class='pagenum'><a name="Page_266" id="Page_266">[266]</a></span></p><p>That same diplomacy, seconded by the
+press organization which invented facts and
+moulded opinion, scored successes in Bulgaria,
+Greece, Roumania, Switzerland, and contrived
+not only to keep Italy from declaring war
+against Germany, but to negotiate a treaty
+for the protection of German property there.
+Despite its clumsiness and arrogance and
+brutality, German diplomacy is unmatched as
+an agency for rousing popular forces in civilized
+and uncivilized countries into subversive excitement.
+It surrounded the Pope of Rome with
+philo-German dignitaries, gave him an Austrian
+as adviser, and permeated the Vatican with
+an atmosphere of Kultur which even pious
+Catholics of non-Teuton countries avoid as
+mephitic. It caught the Sultan and his Young
+Turks, Anglophile and Francophile, in its toils,
+and gave its warm approbation to the massacre
+of the Armenians. It won over the young
+Shah of Persia, who, with great difficulty and
+only after strenuous exertions, was kept from
+going over bodily to the Turkish camp. It
+bought the services of the Senussi. It is
+making headway with the Negus of Abyssinia.
+<span class='pagenum'><a name="Page_267" id="Page_267">[267]</a></span>It offered a bribe to Italian socialists and found
+work for Italian anarchists, whose representatives
+were received in the palace of the Kaiser&#8217;s
+Ambassador in Rome. And&mdash;most difficult
+task of all&mdash;it reconciled, at least for a time,
+the interests of Bulgaria with those of Greece
+and Roumania.</p>
+
+<p>German diplomacy has often misread foreign
+political situations, mistaken the trend of
+national opinion and sentiment and failed to
+achieve ends which might by dint of mere
+patience and quiescence have been readily
+accomplished. For it has no psychological
+standard by which to measure the nobler
+qualities of a foreign people, however closely
+it may have studied their politics, their history
+and their vices. Its tests are for the lower
+grades of human character, and with these it
+has indeed achieved extraordinary things.</p>
+
+<p>Thus, with infinite labour the Teuton mind
+has grappled with the chaotic welter produced
+by the European war. But, besides the skilful
+handling of great financial and kindred problems,
+its assiduity in watching for and readiness to
+seize opportunities for dealing with the issues
+of lesser moment is worth noting, were it only
+for its value as a stimulus. One instance
+occurred in the very first sitting of the Reichstag
+after hostilities had begun. The legislature
+agreed to introduce a slight reform of
+the law, dealing with the rights of children born
+out of wedlock, of whom there are in Germany
+185,000 a year. The Government assented
+to the change, which was embodied in a bill
+affirming the right of the illegitimate children
+of soldiers fallen in battle to the same pension
+as if their parents had been legally married.
+And the Reichstag passed the bill unanimously.<span class='pagenum'><a name="Page_268" id="Page_268">[268]</a></span></p>
+
+<p>This solicitude about little things is most
+saliently in evidence in the military domain.
+Here nothing is neglected that can contribute
+to the fighting value of the units. Hence the
+care shown for the nourishment and comfort
+of the soldiers. Ruthlessly though they are
+sacrificed in battle, they are well looked after
+in the trenches, and their career is followed
+with interest and recorded with accuracy by
+their superiors. I was struck with the completeness
+of the information which the German
+War Office possesses and can produce at a
+moment&#8217;s notice about any individual soldier.
+It was brought home to me in this way. The
+Chief of the Berlin police had a grandson in
+the war who had been missed for several weeks.
+Desirous of obtaining particulars about his
+capture or death, he asked a neutral friend to
+obtain information from the Russians. And
+by way of furnishing a description he sent a
+printed card, which I read. It contained the
+name and age of the soldier, the regiment to
+which he belonged, the hamlet in which he was
+last seen, the distances that separated that
+hamlet from the next town and the next large
+city, the day, the hour and <i>the minute</i> when the
+man together with his comrades were attacked,
+and the number of Russians who attacked
+them. And all these printed particulars refer
+to a private soldier! Is there anything comparable
+to this to be found in any of the allied
+countries?</p>
+
+<p>The scene of another characteristic fact that
+struck me was Brussels. Princess L. requested
+permission from the German authorities to
+repair to France to visit her mother, who, she
+explained, was ill. At the Kommandantur her
+request was met with the cutting remark that<span class='pagenum'><a name="Page_269" id="Page_269">[269]</a></span>
+many persons had been applying for permits
+to visit their mothers, sisters and other relations
+abroad, who all appeared to be victims
+of some mysterious epidemic. Still, the official
+added, he would not definitively refuse the
+request, but would accord it as soon as he had
+proof that the lady&#8217;s mother was really ill.
+&#8220;We shall have inquiries made.&#8221; &#8220;But you
+cannot have inquiries made in France during
+the war,&#8221; she objected. &#8220;Just as quickly as
+in peace time,&#8221; he retorted. Sceptical and sad
+the petitioner returned home. But in a day
+or two she was summoned to the Kommandantur
+and informed that her statement had
+been verified, her mother lay ill&mdash;the malady
+was mentioned&mdash;and she was permitted to go.
+The Germans have eyes and ears in all the
+countries of their adversaries.</p>
+
+<p>One can readily imagine the painful kind of
+questions that will arise in the mind of an
+intelligent ally who realizes for the first time
+how great are the inventive and organizing
+talents of the Teuton, how unswerving his
+resolve, how tenacious he is of purpose, and how
+unconscious most of us still are of the need of
+bestirring ourselves to compete with him on
+terms of equality. The German&#8217;s striving is
+one, but all-embracing. His means are countless,
+for they are restricted by no limitations.
+In his search for tools and agents he enters into
+human nature, but not in its entire compass;
+only into the baser parts, so that his estimate
+is often erroneous and his expectations are
+unfulfilled. But even when ample deduction
+has been made for these failures, the odds
+remaining in his favour are formidable, and will
+continue undiminished unless and until we
+realize our plight, shuffle off the cramping coils<span class='pagenum'><a name="Page_270" id="Page_270">[270]</a></span>
+of conservatism, insularity and self-complacency
+and brace ourselves to the most strenuous,
+the most painful effort we have ever yet put
+forth. On our capacity to effect this inward
+change, rather than upon any diplomatic
+arrangements, depends the issue of the struggle
+which will begin when military and naval
+hostilities have come to an end.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_107_107" id="Footnote_107_107"></a><a href="#FNanchor_107_107"><span class="label">[107]</span></a> Cf. <i>L&#8217;Idea Nazionale</i>, March 7, 1915; <i>Tribuna</i>, April 1,
+1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_108_108" id="Footnote_108_108"></a><a href="#FNanchor_108_108"><span class="label">[108]</span></a> A spirited protest against this poisonous endeavour
+was published by a number of Belgians, including Camille
+Huysmans, who refused to accept any favours from the
+Germans.</p></div>
+
+<div class="footnote"><p><a name="Footnote_109_109" id="Footnote_109_109"></a><a href="#FNanchor_109_109"><span class="label">[109]</span></a> One-third gold cover is the amount fixed. Cf.
+Professor J. Plenge, <i>Der Krieg und die Volkswirtschaft</i>.</p></div>
+
+<div class="footnote"><p><a name="Footnote_110_110" id="Footnote_110_110"></a><a href="#FNanchor_110_110"><span class="label">[110]</span></a> These figures are drawn from statistics published in
+July 1914. Cf. Dr. Karl Hildebrand, <i>Ein starkes Volk</i>.</p></div>
+
+<div class="footnote"><p><a name="Footnote_111_111" id="Footnote_111_111"></a><a href="#FNanchor_111_111"><span class="label">[111]</span></a> Cf. <i>Messenger of Europe</i>, April 1915, M. Luri&eacute;.</p></div>
+
+<div class="footnote"><p><a name="Footnote_112_112" id="Footnote_112_112"></a><a href="#FNanchor_112_112"><span class="label">[112]</span></a> <i>Der Zentral-Verband Deutscher Industrieller</i> and <i>Der
+Bund der Industriellen</i>.</p></div>
+
+<div class="footnote"><p><a name="Footnote_113_113" id="Footnote_113_113"></a><a href="#FNanchor_113_113"><span class="label">[113]</span></a> It is affirmed by contrabandists in Scandinavia who
+are acting on Germany&#8217;s behalf, that many of the commissions
+for the acquisition of raw stuffs for Germany are
+composed almost exclusively of non-Russian subjects of
+the Tsar.</p></div>
+
+<div class="footnote"><p><a name="Footnote_114_114" id="Footnote_114_114"></a><a href="#FNanchor_114_114"><span class="label">[114]</span></a> Cf. Karl Hildebrand, <i>Ein starkes Volk</i>, p. 122.</p></div>
+
+<div class="footnote"><p><a name="Footnote_115_115" id="Footnote_115_115"></a><a href="#FNanchor_115_115"><span class="label">[115]</span></a> It is noticed by the Italian and French press; cf., for
+instance, <i>Roma</i>, October 31, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_116_116" id="Footnote_116_116"></a><a href="#FNanchor_116_116"><span class="label">[116]</span></a> On March 16, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_117_117" id="Footnote_117_117"></a><a href="#FNanchor_117_117"><span class="label">[117]</span></a> The <i>New York World</i>, in a leading article published
+March 18, writes: &#8220;No pacifist proclaims the doctrine
+that, although Americans had a legal right to live near
+the border, they should have taken themselves out of the
+danger zone in the interest of peace. No German-American
+Alliance holds meetings to proclaim the dead
+at Columbus as &#8216;Guardian angels.&#8217; No German language
+newspaper has spoken of the New Mexico massacre as
+undertaken in a holy cause, or referred to the President
+as incapable of understanding either German militarism
+or German Kultur. Yet the Americans who were assassinated
+on the <i>Lusitania</i> and the <i>Arabic</i> had as much
+right to be where they were as the Americans who were
+dragged from their beds at Columbus and slaughtered.
+The <i>Lusitania</i> murder was deliberately planned and
+ordered by the Government in Berlin, which has assumed
+full responsibility therefore, and presented but one excuse,
+that its victims were unexpectedly numerous. The New
+Mexico murder was planned and executed by a savage,
+with no pretence that there is a Government behind him,
+the guilt of the outlaw of the border being not one whit
+less than that of the outlaw of the sea.&#8221;</p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XX" id="CHAPTER_XX"></a>CHAPTER XX<span class='pagenum'><a name="Page_271" id="Page_271">[271]</a></span></h2>
+
+<h3>PROBLEMS OF THE FUTURE</h3>
+
+
+<p><span class="smcap">Plain</span> though these facts are, the Entente
+nations, and in particular the British people,
+either ignore them wholly or misinterpret their
+purport. Hence we continue absorbed in the
+pursuit of interests, parochial and parliamentary,
+which though quite human, are
+utterly off the line of racial and imperial
+progress. We obstinately shut our eyes to the
+magnitude of the Sphinx question that confronts
+us, and we address ourselves to one&mdash;and
+that the least important&mdash;of its many
+facets, and content ourselves with tackling
+that. We descant upon the turpitude of the
+Teuton who from the regions of idealism in
+which Goethe, Herder and their contemporaries
+dwelt has sunk into shift, treason and
+murder, and we proclaim our faith in the
+ultimate triumph of right, justice and of the
+democracy in which alone they flourish. But
+this frame of mind, which moves us to identify
+ourselves with all that is best in humanity, if
+cultivated will prove fatal. It accustoms us
+to dangerous hallucinations. We assume that
+we are the chosen people, and we neglect the
+virtues which alone would justify our election.
+For generations we have been reaping and
+wasting, instead of ploughing and sowing.
+We have been living on our capital, nay, on
+our credit, and have long since overdrawn our<span class='pagenum'><a name="Page_272" id="Page_272">[272]</a></span>
+account. Our successes in the past, sometimes
+the result of fortuitous circumstances, more
+often of the blunders of our rivals, inspire a
+presumptuous confidence in successes for the
+future and a conviction that come what may
+we are destined to muddle through. A special
+providence is watching over us&mdash;a cousin
+German to the Kaiser&#8217;s &#8220;good old God.&#8221; In
+truth we are tempting Fate, postulating an
+exception to the law of cause and effect, and
+looking for Hebrew miracles in the twentieth
+century after Christ.</p>
+
+<p>Were it otherwise, the nation would not have
+continued to entrust its destinies to the men
+who misguided it consistently and perseveringly
+for so many years, to the watchmen who saw
+nothing of the rocks and sandbanks ahead
+which it was their function to discern and their
+duty to avoid, and who are now unwittingly
+but effectually deluding the people into believing
+that the present campaign, which is but
+a single episode in a long-spun-out contest, is
+an independent event which began in August
+1914 and may end this year or the next.
+These same leaders are busily inculcating the
+delusive notion that the diplomatic instrument
+which will one day close hostilities will be a
+treaty of peace. And they are seemingly prepared
+to negotiate its terms on that assumption.</p>
+
+<p>In truth, we are engaged in a duel which
+began thirty years ago, gave the Germans such
+booty as Heligoland, their world-trade, their
+wealth, their formidable navy, their Baghdad
+Railway, their various overseas colonies, their
+European Allies, and the enormous resources
+with which when this acute phase of the contest
+is over they will re-transfer the venue to
+the economic and political domains and carry<span class='pagenum'><a name="Page_273" id="Page_273">[273]</a></span>
+on the struggle with greater vigour than before.
+And peace terms concluded on any other
+supposition cannot be conducive to the national
+welfare. We are locked in a deadly embrace
+with a compact people of 120,000,000, of indomitable
+spirit, boundless resources, unquenchable
+faith and a single aim. Yet we
+are already looking forward to the time in the
+near future when our intercourse, however
+circumscribed, with this nation will be essentially
+pacific, and when we can revert to our
+cherished narrow interests and our easy-going
+dilettantism. We feed upon the hope that in
+a few brief years the British nation will have
+got safely back to its old beaten grooves, and
+not only business and sport but everything
+else will go on as usual. Yet all the salient
+facts which force themselves on our attention
+to-day, all the decisive events of the past thirty
+years are cogent proofs of the unbroken sequence
+of a trial of strength which the future
+historian and the present statesman, if there
+be one, must characterize as a life-and-death
+struggle between the champions of the new
+Teuton politico-social ordering and the partisans
+of the old. But after the lapse of a generation
+and with the record of all our losses before
+us, we have not yet formed a right conception
+of the situation, and its issues, or of the historic
+forces at work. In these circumstances, no
+degree of sagacity can help us to devise the
+only policy in which salvation resides. The
+prevailing mistaken conception must be rectified
+before any headway can be made against
+the currents that are fast bearing us down.
+And the time at our disposal is brief.</p>
+
+<p>It needs few words to characterize the
+effects which the dreamy optimism of the<span class='pagenum'><a name="Page_274" id="Page_274">[274]</a></span>
+Entente nations had on their method of
+mobilizing their resources to carry on the war.
+Taken unawares they had nothing ready.
+Misapprehending the nature of the issues and
+the redoubtable character of the contest, they
+pursued subordinate aims with insufficient
+means. The most daring strategical moves of
+the enemy, in war as in diplomacy, they
+ridiculed as either bluff or madness. The
+journalistic campaign in neutral countries they
+scoffed at as vain, and put their faith in the
+final triumph of truth. Their financial measures,
+oscillating from one extreme to another,
+denoted the absence of any settled plan, of any
+clear-cut picture of the needs of the moment.
+The odds in their favour, which circumstance
+had given and circumstance might take away
+again, they looked upon as inalienable, until
+they ended by forfeiting them all. Viewing
+the campaign as a transient event, the British
+Government prosecuted it by means of make-shifts,
+instead of radical measures. Obligatory
+service was scouted at as un-English. Discriminating
+customs tariffs were condemned as
+heretical. It was not until the enemy had
+occupied Poland, overrun Serbia, driven the
+Allied troops from the Dardanelles, bent
+Montenegro to the yoke, threatened Egypt,
+Riga and Petrograd, that some rays of light
+penetrated the atmosphere of ignorance and
+prejudice through which the Allies surveyed the
+European welter. They had begun by counting
+upon the breaking up of the Habsburg
+Monarchy. They felt sure that the Tsar&#8217;s
+armies would capture Budapest and advance
+on Berlin. They planned the defeat of Germany
+by famine. They built another fabric
+of hopes on &#8220;Kitchener&#8217;s Great Army&#8221; in<span class='pagenum'><a name="Page_275" id="Page_275">[275]</a></span>
+the spring of 1915. But one after another
+these anticipations were belied by events.
+And now the nation blithely accepts the
+further forecasts of the men who are chargeable
+with this long sequence of avoidable errors.</p>
+
+<p>Respect for individual liberty was carried
+to such a point in Great Britain that organizations
+against recruiting were tolerated in
+England and Ireland, and strikes, which not
+only inflicted heavy pecuniary losses on the
+nation but actually stopped its supplies of
+munitions and brought it within sight of discomfiture,
+were treated with soft words and
+immediate concessions. One cannot read even
+Mr. Lloyd George&#8217;s summary narrative of the
+preposterous doings of British slackers without
+wondering whether salvation is still possible.
+These men not only refused to work their best
+for the community, but forbade their comrades
+to work well. At Enfield, we are told, a man
+was obliged by trade union regulations so to
+regulate his work that he did not earn more
+than 1<i>s.</i> an hour, though he could easily
+have earned 2<i>s.</i> 6<i>d.</i><a name="FNanchor_118_118" id="FNanchor_118_118"></a><a href="#Footnote_118_118" class="fnanchor">[118]</a> Another man was doing
+two and a half days&#8217; work in two days, and
+when he refused to carry out the behest of the
+Ironfounders&#8217; Board to waste the other half
+day he was fined &pound;1.<a name="FNanchor_119_119" id="FNanchor_119_119"></a><a href="#Footnote_119_119" class="fnanchor">[119]</a> A consequence of this
+anti-national attitude was that &#8220;we had to
+wait for weeks in Birmingham with machinery
+lying idle, with our men without rifles, with
+our men with a most inadequate supply of
+machine guns to attack the enemy and defend
+themselves.&#8221;<a name="FNanchor_120_120" id="FNanchor_120_120"></a><a href="#Footnote_120_120" class="fnanchor">[120]</a> Every one will re-echo the
+Minister&#8217;s comment on the outlook, if this
+<span class='pagenum'><a name="Page_276" id="Page_276">[276]</a></span>attitude is persisted in&mdash;&#8220;we are making
+straight for disaster.&#8221;</p>
+
+<p>Compare this state of things with that
+which rules in Germany. It is a British
+Minister who describes it: &#8220;If you want to
+realize what organized labour in this war
+means, read the story of the last twelve months.
+By the end of September the German armies
+were checked. They sustained an overwhelming
+defeat in France, Russia was advancing
+against them towards the Carpathians,
+and I believe in East Prussia. That is not
+the case to-day. Why? The German workmen
+came in; organized labour in Germany
+prepared to take the field. They worked and
+worked quietly, persistently, continuously, without
+stint or strife, without restriction for months
+and months, through the autumn, through the
+winter, through the spring. Then came that
+avalanche of shot and shell which broke the
+great Russian armies and drove them back.
+That was the victory of the German workmen.&#8221;<a name="FNanchor_121_121" id="FNanchor_121_121"></a><a href="#Footnote_121_121" class="fnanchor">[121]</a></p>
+
+<p>Great Britain is the classic land of strikes.
+Strikers are sacred among us. Industrial compulsion
+is rank heresy.</p>
+
+<p>That is one of our difficulties, and by no
+means the least formidable. The nation, despite
+the superb example of patriotic heroism
+given by all classes, parties, provinces and
+colonies of the Empire, is still deficient in
+cohesiveness. No fire of enthusiasm has yet
+burned fiercely enough among all sections of
+the Empire and all members of the race to
+fuse them in such a compact unified organism
+as we behold in the Teuton&#8217;s Fatherland.
+Read the characteristic given of us by the
+<span class='pagenum'><a name="Page_277" id="Page_277">[277]</a></span>ex-German Minister Dernburg, and say whether
+it is over-coloured. Discoursing on the difficulties
+which Britain has to cope with in
+carrying on the war, he says: &#8220;They are
+intensified ... by the narrow-minded customs
+of the English trade unions, which contrast
+with the patriotic behaviour of the
+German associations of the like nature as night
+contrasts with day.&#8221;<a name="FNanchor_122_122" id="FNanchor_122_122"></a><a href="#Footnote_122_122" class="fnanchor">[122]</a> This is melancholy
+reading for those whose hopes are fervent for a
+bright future of the British race, and it prepares
+them to listen in anxious silence to the general
+conclusion at which the Prussian ex-Minister
+arrives: &#8220;It is in the highest degree improbable,&#8221;
+he says, &#8220;that after the winding up
+of this contest England will be able to keep
+or wield any form of economic superiority
+whatever over Germany.&#8221;</p>
+
+<p>In our Allies we find a strong touch of
+resemblance to ourselves. Their state of unpreparedness
+is amazing, if less desperate than
+ours. Russia, it is true, did much better at
+the outset than friend or foe anticipated, and
+she might have done quite well if only she had
+been supplied with munitions. But she had
+not nearly enough, and her armies were
+slaughtered like sheep in consequence. Then
+there were no boots for the soldiers, who were
+forced to wear thin canvas leggings with
+leather soles. And scores of waggon-loads of
+incapacitated men were taken to Petrograd
+and other cities whose feet had been frozen
+for lack of shoe-leather. One of the urgent
+wants of the Tsardom are railways, which the
+late Count Witte was so eager to construct.
+When hostilities opened, the insufficiency of
+communications became one of the decisive
+<span class='pagenum'><a name="Page_278" id="Page_278">[278]</a></span>factors in Russia&#8217;s disasters. And it was
+heightened by the conduct of, shall we say,
+the prussianized officials,<a name="FNanchor_123_123" id="FNanchor_123_123"></a><a href="#Footnote_123_123" class="fnanchor">[123]</a> who are reported to
+have disposed of waggons for large sums to
+greedy merchants, who used to raise the prices
+of the merchandise and batten on the misery
+of their fellows.</p>
+
+<p>Trains, needed to supply the fighting men
+at the front with food and the wounded at the
+rear with medicaments, were kept back to
+suit the schemes of these greedy cormorants.
+Gratuities, it is openly affirmed, had to be paid
+by Red Cross and other officers to those subordinate
+railway servants who had it in their
+power to send on a train or shunt it off for
+days on a side-track. Bribery is working
+havoc in the Tsardom. In January 1916 the
+Moscow municipality discussed the advisability
+of voting a certain sum of money and
+putting it at the disposal of the chief officer
+of the city, to be discreetly employed in transactions
+with complacent railway officials, in
+order to further the work of reducing prices
+on necessaries of life. The motive adduced
+for this hom&#339;opathic way of treating a social
+distemper were the conditions of life in Russia
+and the necessity of complying with them.
+But as the Statute Book does not recognize
+these conditions and condemns bribery absolutely,
+a vote on the subject was not taken.<a name="FNanchor_124_124" id="FNanchor_124_124"></a><a href="#Footnote_124_124" class="fnanchor">[124]</a></p>
+
+<p>Acting on instructions issued by the Finance
+Minister, a Member of the Council of the
+Finance Ministry, D.&nbsp;I. Zassiadko, visited the
+<span class='pagenum'><a name="Page_279" id="Page_279">[279]</a></span>Kharkoff circuit for the purpose of studying
+the bribery problem on the spot. M. Zassiadko
+acquired the conviction &#8220;on the spot&#8221;
+that the railway officials do really take bribes,
+&#8220;and even of considerable amounts.&#8221; But,
+that ascertained, the representative of the
+Ministry decided to delve deeper to the root
+of the matter. And he reached the conclusion
+that railway servants belong to the class of
+the tempted. The evil, he reported, resides
+not in the circumstance that they take bribes,
+but that bribes are offered whereby these weak
+little souls are seduced. The representative of
+the Ministry discovered an entire category of
+bribes which do not bear the signs of extortion,
+but only of &#8220;gratitude.&#8221; To us this conclusion
+sounds somewhat na&iuml;ve. The most
+widely circulated journal of Petrograd prefaces
+an article on the subject as follows.<a name="FNanchor_125_125" id="FNanchor_125_125"></a><a href="#Footnote_125_125" class="fnanchor">[125]</a></p>
+
+<p>&#8220;The misdeeds of the officials and bribery
+on the railway system cry out to heaven,&#8221;
+writes the organ of the Constitutional Democrats.
+&#8220;Compared with the reverses on the
+Carpathians and in Poland, the defeats we are
+sustaining in our own house and behind the
+enemy&#8217;s back are much greater....&#8221; On the
+important line Petrograd-Moscow-Perm scandalous
+cases of corruption took place in which,
+according to Russian journals, officials of a
+class who might reasonably be regarded as
+unbribable were implicated. They are alleged
+to have let out to firms of speculators for large
+sums of money, goods waggons which were
+already destined to carry consignments to the
+front.<a name="FNanchor_126_126" id="FNanchor_126_126"></a><a href="#Footnote_126_126" class="fnanchor">[126]</a> Russia&#8217;s purchases abroad have made
+a profound impression on the peoples in whose
+<span class='pagenum'><a name="Page_280" id="Page_280">[280]</a></span>midst they were effected. The principles on
+which these transactions were carried on provoked
+lively comments. It is not that they
+revealed a superlative degree of disorganization.
+That touch would have merely marked
+the kinship of the men concerned with their
+allies. By the discovery that the Russian
+Government&#8217;s purchasing Commissioners, the
+representatives of one of its embassies, the
+agents of the British Government and the
+equally zealous agents of the French Government
+were all secretly bidding against each
+other for the same rifles to be delivered to the
+Tsar&#8217;s Ministers, only a smile of recognition was
+elicited. It may have seemed at once amusing
+and consolatory to find that all were tarred
+with the same brush. But when it was discovered
+that the offer of certain army necessaries
+was put off for weeks and weeks, although
+they were to be had under cost price, and was
+then accepted at a much higher price, profound
+sympathy was felt for the Tsar&#8217;s armies.</p>
+
+<p>Chaos, waste and a variety of abuses that
+pressed heavily on the poorer classes marked
+the efforts made by the Russian Government
+to cope with the scarcity of fuel, corn and other
+necessaries which began to be felt soon after
+the war. The rolling stock, it was complained,
+was utterly insufficient, yet it was found
+possible to transport 1,000,000 poods<a name="FNanchor_127_127" id="FNanchor_127_127"></a><a href="#Footnote_127_127" class="fnanchor">[127]</a> weight
+of mineral water of doubtful quality. When
+trains arrived bringing supplies to the suffering
+population, it turned out that there were
+no hands to unload the waggons. And when
+labour was requisitioned, vehicles were not
+to be had. In October 1915 on the rails of
+Moscow station five thousand waggons, laden
+<span class='pagenum'><a name="Page_281" id="Page_281">[281]</a></span>with life&#8217;s necessaries, stood waiting and waiting
+in vain for the unskilled labour which
+ought to have been abundant, considering the
+number of the population and of the refugees.
+At the same time 2000 waggons were on the
+rails of the Petrograd station, their contents
+lying unutilized.<a name="FNanchor_128_128" id="FNanchor_128_128"></a><a href="#Footnote_128_128" class="fnanchor">[128]</a> It is only by the lack of
+order and organization that one can explain
+the facts that in Petrograd the inhabitants have
+no butter, while in the places where butter is
+made it is being sold cheaper than before, at
+12 in lieu of 16 to 18 roubles a pood. In the
+province of Ekaterinograd, mines which own
+800,000 poods of coal cannot get more than a
+few waggon loads of it every month.</p>
+
+<p>Russia has incomparably more than enough
+fuel, without importing any, to satisfy all the
+needs of her 180,000,000 inhabitants. But
+owing to the insufficiency of communications,
+and still more to the lack of forethought and
+enterprise, the population of many cities and
+towns underwent serious hardships in consequence
+of the impossibility of acquiring coal or
+wood. In September 1915 the Petrograd region
+could obtain no more than 65 per cent. of the
+necessary quantity, and a month later only 49
+per cent. In Moscow the plight of the inhabitants
+was worse. In September they could get
+but 26 per cent. of their needs and in October 40
+per cent. According to the Minister of Commerce,
+who volunteered these data, the condition
+of the towns of Rostoff, Novotcherkassk,
+Nakhitchevan, Taganrog, Ekaterinodar and
+others was not a whit better. The city of
+Vyatka was, according to the <i>Novoye Vremya</i>,<a name="FNanchor_129_129" id="FNanchor_129_129"></a><a href="#Footnote_129_129" class="fnanchor">[129]</a>
+<span class='pagenum'><a name="Page_282" id="Page_282">[282]</a></span>in January 1916 without fuel, while the mercury
+registered 30 degrees Reaumur below
+freezing-point. The unfortunate citizens
+heated their homes with fragments of hoardings,
+tables, desks and stools. And yet there
+is abundant fuel in the superb forests with
+which Vyatka is surrounded, and, what is
+more to the point, the city authorities had
+received during the preceding spring 60,000
+roubles for the purpose of purchasing a supply
+of wood for the winter. But they did nothing,
+organization not being one of their strong
+points.</p>
+
+<p>Live stock in Russia has diminished during
+the war to a much larger extent than was
+anticipated. The peasantry, owing to the
+prohibition of alcohol, now consume from 150
+to 200 per cent. more meat than before, and
+what with the refugees from Poland, the
+prisoners of war and the increased needs of
+the army, no less than 20 per cent. of the
+cattle of the entire Empire was used during
+the first eighteen months<a name="FNanchor_130_130" id="FNanchor_130_130"></a><a href="#Footnote_130_130" class="fnanchor">[130]</a> and 30 per cent. of
+the stock of all European Russia. In consequence
+of the shortage and of the irregularity
+of the transport, three days of abstinence
+from meat were ordained. Yet in January
+1916 a discovery was casually made in the
+Kieff forests between Byelitch and Pushtsha
+Voditzka, which caused considerable lifting
+of the eyebrows. About 8000 head of cattle
+and several thousand sheep were found with
+no cowherds, shepherds or owners, wandering
+about from place to place. Scores of them
+were succumbing to hunger and cold every day.
+The paths in the woods were covered with
+the dead bodies of kine, calves and sheep. The
+<span class='pagenum'><a name="Page_283" id="Page_283">[283]</a></span>journal which records this fact affirms that
+these herds belong to the Union of Zemstvos,
+which had purchased them from the peasants
+who had to flee from the occupied provinces.
+The President of the Union of Zemstvos is
+said to have confirmed this odd story with the
+qualification that the forlorn horned cattle and
+sheep are the property not of the Union of
+Zemstvos, but of the Ministry of Agriculture,
+which is alone answerable.<a name="FNanchor_131_131" id="FNanchor_131_131"></a><a href="#Footnote_131_131" class="fnanchor">[131]</a></p>
+
+<p>The card system of distributing provisions
+that are scarce found its way first into Germany
+and then into Austria and Russia. But
+in the last-named empire it was much less
+successful than in the two first mentioned.
+According to the Petrograd journals in Pskoff,
+where it was tried, many individuals got no
+cards, and therefore no provisions. Many who
+possessed the cards found nothing to buy.
+And some of those who obtained the articles
+they wanted paid dearer for them than if they
+had bought them without cards. And as with
+cards one has to lay in a stock to last a
+fortnight, the poorer families were unable to
+utilize them.<a name="FNanchor_132_132" id="FNanchor_132_132"></a><a href="#Footnote_132_132" class="fnanchor">[132]</a></p>
+
+<p>In France, as well as in Russia, the professional
+organizers, especially the civilians, were
+very much adrift. In the army all the sterling
+qualities of the French nation at its best, and
+many that were deemed extinct, but are now
+seen to have been only dormant, shone forth
+resplendent. Valour, fortitude, staying power,
+self-abnegation for the common good, became
+household virtues. Friends and foes were
+<span class='pagenum'><a name="Page_284" id="Page_284">[284]</a></span>equally surprised. But the civil administration
+remained well-meaning, patriotic and
+unregenerate to the last. The old Adam lived
+and acted up to his reputation.</p>
+
+<p>Before the war the French railway administration
+had been criticized severely. It is not
+for a foreigner to express an opinion on the
+internal ordering of a country not his own,
+but unbiassed French experts found that the
+strictures were called for and the verdict, in
+which the public acquiesced, was well grounded.
+Subsequently, when the struggle began and the
+railway system was tested, people had reason
+to remember the previous complaints, for they
+saw how little had been done in the meanwhile
+to remove the causes of dissatisfaction.
+The first drawback was the want of rolling
+stock. &#8220;Give us waggons and we will execute
+all orders and supply the War Ministry,&#8221; cried
+the munitions firms. &#8220;There are no waggons
+in the ports, and we cannot get the coal
+delivered,&#8221; exclaimed the importers. &#8220;The
+country is threatened with general paralysis,&#8221;
+wrote the <i>Journal</i>;<a name="FNanchor_133_133" id="FNanchor_133_133"></a><a href="#Footnote_133_133" class="fnanchor">[133]</a> &#8220;we can neither forward
+nor sell anything.&#8221; The railway administration
+asked for a fortnight&#8217;s notice, then for
+three weeks and finally an indefinite period,
+before it could provide a single truck. &#8220;I
+have fertilizing stuff to forward before the
+season is past,&#8221; pleads the representative of
+one firm. &#8220;We have no waggons,&#8221; is the
+reply. &#8220;I must have my produce delivered
+at once to the Government,&#8221; argues another,
+&#8220;for it is wanted for the fabrication of
+powder.&#8221; But the answer came promptly:
+&#8220;There are no waggons.&#8221; &#8220;But you have
+waggons. I see them over there&#8221; (the station
+<span class='pagenum'><a name="Page_285" id="Page_285">[285]</a></span>was Cognac). &#8220;Yes, but we may not touch
+them. They belong to the military engineering
+department.&#8221; &#8220;Well, but what are they
+doing there?&#8221; &#8220;Ah, that is none of our
+business.&#8221;<a name="FNanchor_134_134" id="FNanchor_134_134"></a><a href="#Footnote_134_134" class="fnanchor">[134]</a></p>
+
+<p>And in the ports, at the termini, at intermediate
+stations, the merchandise lay heaped
+up, immobilized, while the merchants, the
+middlemen, the manufacturers, the Government,
+the army were waiting, time was lapsing,
+and the fate of the Republic and the nation
+hanging in the balance. At Havre great
+machines, destined for a Paris firm which was
+to have delivered them to factories making
+shells, lay untouched for two months. The
+number of shells lost in this way has never
+been calculated. Yet it was well known that
+during all that time there were numbers of
+waggons available. What had become of them?
+The answer was: They are to be found everywhere,
+immobilized. It is a case of general
+immobilization of the rolling stock. People
+slept in them, turned them into cottages, used
+them as warehouses, each individual reasoning
+that one waggon more or less would not
+be missed. And as this argument was used
+by large numbers of easy-going, well-meaning
+people the result was appalling.</p>
+
+<p>The most terrific war known to history was
+raging in three Continents, and one group of
+belligerents, unaware or heedless of the magnitude
+of the issues, kept wasting its enormous
+resources and throwing away its advantages.
+At the little station of Cognac waggons laden
+with all kinds of war materials, barbed wire,
+galvanized wire, etc., were detained from
+September 1914 until November 1915, 400
+<span class='pagenum'><a name="Page_286" id="Page_286">[286]</a></span>days in all, doing nothing. Forty-two waggons
+ready to move were found on two grass-covered
+rails. Fourteen waggons were there
+since September 1914. Eight since December
+of the same year, twenty since June. Altogether
+at the modest little station of Cognac
+the total recorded by Senator Humbert&#8217;s
+<i>Journal</i> was 228,500 tons-days. &#8220;All this
+during the most tremendous war the world has
+ever witnessed, in which hundreds of thousands
+of men have been slain, where we have
+continually been short of war material, while
+industry and commerce are agonizing for lack
+of means of transport. It may well seem a
+dream.&#8221;<a name="FNanchor_135_135" id="FNanchor_135_135"></a><a href="#Footnote_135_135" class="fnanchor">[135]</a></p>
+
+<p>Seven hundred French railway stations were
+devoid of rolling stock. On the other hand,
+from the beginning of the war down to November
+1915, 729 waggons were lying immobilized
+at the station of Blanc-Mesnil. Seven hundred
+and twenty-nine!<a name="FNanchor_136_136" id="FNanchor_136_136"></a><a href="#Footnote_136_136" class="fnanchor">[136]</a> Merchants, manufacturers,
+importers, all were being literally
+beggared for lack of transports while hundreds
+of waggons lay rotting at obscure little
+stations for over a year. &#8220;The whole region
+of the West is encumbered,&#8221; we read, &#8220;with
+30,000,000 hectolitres of apples, valued at
+300,000,000 francs, which cannot be conveyed
+anywhither, and which people are beginning to
+bury in the earth as manure. Sugar is scarce
+and is rising in price, whereas ever since last
+August<a name="FNanchor_137_137" id="FNanchor_137_137"></a><a href="#Footnote_137_137" class="fnanchor">[137]</a> a single firm has unloaded 10,000
+tons of sugar at Havre which it cannot have
+transported to Paris. Innumerable army purveyors
+<span class='pagenum'><a name="Page_287" id="Page_287">[287]</a></span>are unable to send the machines for the
+shells....&#8221; An official order to the army prescribed
+a substitute for barbed wire, which
+was not to be had at any price, yet at a single
+station at least 135 tons of barbed wire were
+lying for a twelvemonth unused, untouched.<a name="FNanchor_138_138" id="FNanchor_138_138"></a><a href="#Footnote_138_138" class="fnanchor">[138]</a>
+On November 27, 1915, the military hospital
+N16 at Poitiers needed coal. A request was
+made by telephone. The reply received was:
+&#8220;We have coal at La Rochelle, but there
+are no waggons to carry it.&#8221; Yet there were
+forty-two waggons immobilized at Cognac, 729
+at Blanc-Mesnil and 121 standing laden with
+barbed wire and other materials for over a
+year!</p>
+
+<p>Organization and intelligence!</p>
+
+<p>With engines the experience was the same.
+The French Government, anxious to make up
+for the deficiency, purchased 140 engines of
+British make to be delivered some time in
+1916. Yet at that time there were at the
+station of Mezidon (Calvados) over 500 engines
+immobilized, nobody knew why or by whom.
+This cemetery of locomotives was photographed
+by the <i>Journal</i>. Such was the harvest reaped
+by the enterprising Senator Humbert&#8217;s commission
+at that one station. There were
+others. At Marles six Belgian engines, at
+Serquigny twenty, etc.</p>
+
+<p>The attention of the French authorities
+having been called to this unqualifiable neglect,
+a senatorial railway commission was
+appointed to inquire into the matter, and it
+reported that: &#8220;The engines in question,
+numbering about 2000, of which 1000 on the
+State railway system are now going to be
+repaired.&#8221; &#8220;There are therefore 2000 engines
+<span class='pagenum'><a name="Page_288" id="Page_288">[288]</a></span>scandalously abandoned,&#8221; comments the <i>Journal</i>,
+... &#8220;forgotten during sixteen months,
+and having passed from the state of being
+inutilized to that of being inutilizable. For
+if these machines, which were in service before
+the war and came from Belgium, are to-day,
+like the waggons of Blanc-Mesnil, incapable
+of being utilized in their present state, as the
+official note puts it, the reason is that they
+were left to decay in the rain and the wind
+without cover or case for five hundred days.&#8221;<a name="FNanchor_139_139" id="FNanchor_139_139"></a><a href="#Footnote_139_139" class="fnanchor">[139]</a></p>
+
+<p>Interesting in a smaller way is the reply
+given by the French War Minister to a question
+by a deputy, the Marquis de Ludre, who
+asked for information about a consignment
+of knives which had been provided for the
+army, but were found to be quite useless.
+The Minister explained that the Generalissimus
+having requested the immediate dispatch
+of 165,000 knives, the department
+charged with the execution of the order had
+no time to examine the goods, and the circumstance
+was overlooked that all kinds of
+knives were supplied, without any reference
+to the purpose for which they were destined.<a name="FNanchor_140_140" id="FNanchor_140_140"></a><a href="#Footnote_140_140" class="fnanchor">[140]</a>
+The Minister added that no one should be
+blamed for this, inasmuch as it was &#8220;the
+result of exaggerated but praiseworthy zeal.&#8221;
+This construction is charitable and may be
+true in fact. But the soldiers who, in lieu
+of a serviceable blade, found themselves in
+possession of a dessert knife may have taken
+a different view of the transaction.</p>
+
+<p>This is hardly what is understood by
+organization.</p>
+
+<p>Beside those scenes from chaos set this
+<span class='pagenum'><a name="Page_289" id="Page_289">[289]</a></span>picture of order: &#8220;In a small French town
+in which the supreme <i>etape commando</i> of
+Kluck&#8217;s army was situated, we inspected a
+field postal station. On the ground floor the
+letters were being received and delivered.
+The stream of soldiers was endless. They
+were sending field postcards, which are forwarded
+gratuitously. The difficult work of
+sorting the correspondence was being transacted
+on the first storey. Every day from
+1800 to 2000 post sacks arrive, mostly with
+small packets and postcards, and day after
+day the same difficult problem presents itself&mdash;how
+to find the addressee. Many regiments,
+it is true, have permanent quarters, but there
+are mobile columns as well. Quick transfers
+are possible, and individuals may be shifted
+to another place or incorporated in a different
+regiment. The arranging of the correspondence
+went forward in a spacious room; the
+letters which it was difficult to deliver were
+handed over to a number of specialists, who sat
+in an adjoining apartment and studied all the
+changes caused by the transfer of troops.
+They found help in an address-book containing
+a list of all the field formations. About
+once every four days, or even oftener, a new
+edition of this work was issued. By the middle
+of December 1914 the eighty-fourth edition
+was in print.&#8221;<a name="FNanchor_141_141" id="FNanchor_141_141"></a><a href="#Footnote_141_141" class="fnanchor">[141]</a></p>
+
+<p>This talent for organization, this capacity
+of thought concentration in circumstances
+which tend to strengthen emotion at the cost
+of reason, have been constantly displayed by
+our enemies throughout the entire struggle
+of the past thirty years, and never more conspicuously
+than during the present war. Every
+<span class='pagenum'><a name="Page_290" id="Page_290">[290]</a></span>emergency found them ready. The most unlikely
+eventualities had been foreseen and
+provided for. Private initiative, which
+&#8220;grandmotherly legislation&#8221; was supposed
+to have killed, was more alert and resourceful
+than among any of the Entente nations.
+Every German is in some respects an agent
+of his Government. Each one thinks he
+foresees some eventuality with the genesis of
+which he is especially conversant, and he
+forthwith communicates his forecast and at
+the same time his plan for coping with the
+danger to some official. And all suggestions
+are thankfully received and dealt with on
+their intrinsic merits. For such matters the
+rulers of the Empire, however engrossed by
+urgent problems, have always time and money.</p>
+
+<p>It is instructive and may possibly be helpful
+to compare this spirit of detachment from
+the personal and party elements of the situation,
+this accessibility to every call of patriotic
+duty, this self-possession under conditions
+calculated to hinder calm deliberation, with
+the hesitations, the bewilderment, the conflicting
+decisions of the Entente leaders and
+their impatience of unauthorized initiative
+and offers of private assistance. Outsiders
+are not wanted. Their money is not rejected,
+but nothing else that they tender is readily
+received.</p>
+
+<p>In other more momentous matters the
+Allies also lagged behind their adversaries.
+Despite their vast resources and the generous
+offers of private help, the care taken of the
+wounded left a good deal to be desired. The
+articles on this subject which were published
+in the London Press provided ample food for
+bitter reflection. In France, at the beginning<span class='pagenum'><a name="Page_291" id="Page_291">[291]</a></span>
+of the war, wounded soldiers, after receiving
+first aid, were conveyed for days in carts over
+uneven roads to the hospitals in which they
+were to be treated. An American gentleman,
+witnessing the sufferings of these victims of
+circumstance, collected a number of motors
+in which to have them transported rapidly
+and with relative comfort. But his offer of
+these conveyances was rejected by all the
+departments to which he applied. And it
+was only after he had spent weeks in visiting
+influential friends in London that he finally
+obtained an introduction to the Secretary for
+War, who, overriding the decisions of his
+subordinates, closed with the proposal and
+sent the benefactor with his motors to the
+front.</p>
+
+<p>It has been affirmed by unbiassed neutral
+witnesses who evinced special interest in the
+subject that tens of thousands of the allied
+wounded who died of their injuries might
+have been saved had they had proper care.
+But defective organization and other avoidable
+causes deprived them of efficient medical
+help.</p>
+
+<p>By Great Britain more comprehensive measures
+were fitfully taken, of which our wounded
+have reaped the benefit. A French journal<a name="FNanchor_142_142" id="FNanchor_142_142"></a><a href="#Footnote_142_142" class="fnanchor">[142]</a>
+enumerated, with a high tribute of praise, the
+results of the observations made by a commission
+of British physicians in the Grand
+Palais Hospital in Paris: &#8220;More than half,
+to be exact 54 per cent., of the wounded
+entrusted to the care of the doctors of the
+Grand Palais since last May have been sent
+back to the front, completely cured. What
+an achievement!&#8221; Undoubtedly it is a feat
+<span class='pagenum'><a name="Page_292" id="Page_292">[292]</a></span>to be proud of, if we compare it with the
+percentage of cured in certain other countries
+and in the Dardanelles. But if we set it side
+by side with what is claimed for and by the
+Germans, it may appear less remarkable. It
+cannot be gainsaid that the British authorities
+have spared neither money nor pains to alleviate
+the sufferings and heal the injuries of the
+wounded. And if the measure of their success
+is still capable of being extended, the reason
+certainly does not lie in any lack of good will.</p>
+
+<p>On the incapacitated German soldier every
+possible care is bestowed. His every need is
+foreseen and when possible provided for with
+an eye to thoroughness and economy. Waste
+and niggardliness are sedulously eschewed.
+Every man is provided with a square of canvas
+with eyelets, which serves as a carpet on which
+he lies at night, as a stretcher on which,
+when wounded, he is carried to the place
+where he can have his injuries attended to,
+and which, when he is killed, is used as a
+winding-sheet. The medical organization of
+the army is as thorough as the military. And
+the results attained justify the solicitude displayed.
+From month to month the percentage
+of wounded who are able to return to the front
+has been augmenting steadily, and the death-rate
+has decreased correspondingly. During
+the first month of the war, out of every hundred
+wounded there were 84&middot;8 capable of further
+service, 3&middot;0 dead, and 12&middot;2 incapacitated or
+sent home. In September of the same year
+the number of those able to return to the front
+rose to 88&middot;1, or about 4 per cent. more. And
+at the same time the death-rate sank from
+3 to 2&middot;7 per cent. In the third month the
+proportion of soldiers able to resume their<span class='pagenum'><a name="Page_293" id="Page_293">[293]</a></span>
+places in the ranks of fighters was 88&middot;9, while
+the deaths had been reduced to 2&middot;4. During
+the period beginning with November and
+ending in March the number of the wounded
+who went back to the front oscillated between
+87&middot;3 and 88&middot;9. In November the percentage
+of deaths was only 2&middot;1 per cent., and in
+December only 1&middot;7 per cent. January 1916
+showed a further improvement, the death-rate
+having fallen to 1&middot;4 and in February 1&middot;3
+per cent. During the two following months
+the percentage rose again to 1&middot;4, but declined
+slowly until in June and July it had descended
+to 1&middot;2 per cent. The number of wounded men
+who were sent back to their places at the
+front had meanwhile increased by April to
+91&middot;2, and by June 1915 to 91&middot;7, and in May and
+July to 91&middot;8. Seven per cent. were wholly
+incapacitated or dismissed to their homes.
+Among the latter a considerable percentage
+returned subsequently to the ranks. Altogether,
+then, about 91&middot;8 per cent. of the
+wounded German soldiers who fall in battle
+are so well taken care of that they are able to
+fight again, and no more than 1&middot;2 per cent. of
+the total number succumb to their wounds.<a name="FNanchor_143_143" id="FNanchor_143_143"></a><a href="#Footnote_143_143" class="fnanchor">[143]</a></p>
+
+<p>This strict conformity to the material and
+psychological conditions of success marks the
+method by which the Germans proceed to
+realize a grandiose plan which is understood
+and furthered by one and all. Their talent
+for organization, their insight, their inventiveness,
+and their highly developed social sense
+are all pressed into the service of this patriotic
+cause. And it is to these permanent qualities,
+more even than to their thirty years&#8217; military
+and economic preparation, that they owe
+<span class='pagenum'><a name="Page_294" id="Page_294">[294]</a></span>their many successes. The cynicism and
+ruthlessness of our arch-enemy should not be
+allowed to blind us to his enterprise, his
+stoicism, his meticulous applications of the
+law of cause and effect. These are among
+his most valuable assets, and unless we have
+solid advantages of our own to set against
+and outweigh them, our appeals to the justice
+of our cause and our denunciations of his
+wicked designs will avail us nothing. It is
+to our interest to seek out and note whatever
+strength is inherent in himself or his methods
+and to appropriate that. The struggle will
+ultimately be decided by the superiority of
+equipment, material and moral, which one
+side possesses over the other. As for the
+conceptions of public law and international
+right which the antagonists severally stand
+for, they must be gauged by quite other
+standards than heavy guns and asphyxiating
+gases. It is not impossible that in the course
+of time, and by dint of reciprocal action and
+reaction, the German views may be sufficiently
+modified and moralized to render possible the
+usual process of assimilation with which the
+history of speculative ideas and social movements
+has rendered us familiar. Meanwhile,
+truth compels us to admit that part at least
+of the western system is being overtaken by
+decay, and stands in need of speedy and
+thorough renovation.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_118_118" id="Footnote_118_118"></a><a href="#FNanchor_118_118"><span class="label">[118]</span></a> Mr. Lloyd George&#8217;s speech at Bristol. Cf. <i>Daily
+Telegraph</i>, September 10, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_119_119" id="Footnote_119_119"></a><a href="#FNanchor_119_119"><span class="label">[119]</span></a> <i>Ibid.</i></p></div>
+
+<div class="footnote"><p><a name="Footnote_120_120" id="Footnote_120_120"></a><a href="#FNanchor_120_120"><span class="label">[120]</span></a> <i>Ibid.</i></p></div>
+
+<div class="footnote"><p><a name="Footnote_121_121" id="Footnote_121_121"></a><a href="#FNanchor_121_121"><span class="label">[121]</span></a> Mr. Lloyd George&#8217;s speech at Bristol. Cf. <i>Daily
+Telegraph</i>, September 10, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_122_122" id="Footnote_122_122"></a><a href="#FNanchor_122_122"><span class="label">[122]</span></a> <i>Berliner Tageblatt</i>, March 9, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_123_123" id="Footnote_123_123"></a><a href="#FNanchor_123_123"><span class="label">[123]</span></a> It is but fair to say that venality is not one of the
+characteristics of the German bureaucracy. Their sense
+of duty towards the State is the nearest approach to
+morality of which they now seem capable.</p></div>
+
+<div class="footnote"><p><a name="Footnote_124_124" id="Footnote_124_124"></a><a href="#FNanchor_124_124"><span class="label">[124]</span></a> The German press gave great prominence to this
+item of news. Cf. <i>Frankfurter Zeitung</i>, January 8, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_125_125" id="Footnote_125_125"></a><a href="#FNanchor_125_125"><span class="label">[125]</span></a> <i>The Bourse Gazette</i>, February 21.</p></div>
+
+<div class="footnote"><p><a name="Footnote_126_126" id="Footnote_126_126"></a><a href="#FNanchor_126_126"><span class="label">[126]</span></a> Cf. <i>Reitch</i> (about February 17, 1916), March 5, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_127_127" id="Footnote_127_127"></a><a href="#FNanchor_127_127"><span class="label">[127]</span></a> A pood is equal to 36.11 lbs.</p></div>
+
+<div class="footnote"><p><a name="Footnote_128_128" id="Footnote_128_128"></a><a href="#FNanchor_128_128"><span class="label">[128]</span></a> Cf. <i>Novoye Vremya</i>, October 9, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_129_129" id="Footnote_129_129"></a><a href="#FNanchor_129_129"><span class="label">[129]</span></a> The German press welcomes items of information
+like this. Cf. <i>Frankfurter Zeitung</i>, January 13, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_130_130" id="Footnote_130_130"></a><a href="#FNanchor_130_130"><span class="label">[130]</span></a> Over a hundred million head.</p></div>
+
+<div class="footnote"><p><a name="Footnote_131_131" id="Footnote_131_131"></a><a href="#FNanchor_131_131"><span class="label">[131]</span></a> Cf. the Russian journal, <i>Kieff</i>, also the <i>Frankfurter
+Zeitung</i>, January 29, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_132_132" id="Footnote_132_132"></a><a href="#FNanchor_132_132"><span class="label">[132]</span></a> <i>Novoye Vremya</i>, January 1916. <i>Frankfurter Zeitung</i>,
+January 21, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_133_133" id="Footnote_133_133"></a><a href="#FNanchor_133_133"><span class="label">[133]</span></a> <i>Le Journal</i>, November 26, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_134_134" id="Footnote_134_134"></a><a href="#FNanchor_134_134"><span class="label">[134]</span></a> <i>Le Journal</i>, November 26, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_135_135" id="Footnote_135_135"></a><a href="#FNanchor_135_135"><span class="label">[135]</span></a> <i>Le Journal</i>, November 26, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_136_136" id="Footnote_136_136"></a><a href="#FNanchor_136_136"><span class="label">[136]</span></a> <i>Le Journal</i>, December 2, 1915. They were photographed
+and the photograph reproduced in that paper.</p></div>
+
+<div class="footnote"><p><a name="Footnote_137_137" id="Footnote_137_137"></a><a href="#FNanchor_137_137"><span class="label">[137]</span></a> That was published in December 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_138_138" id="Footnote_138_138"></a><a href="#FNanchor_138_138"><span class="label">[138]</span></a> <i>Le Journal</i>, December 2, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_139_139" id="Footnote_139_139"></a><a href="#FNanchor_139_139"><span class="label">[139]</span></a> <i>Le Journal</i>, December 4, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_140_140" id="Footnote_140_140"></a><a href="#FNanchor_140_140"><span class="label">[140]</span></a> Journal Official, answer to question No. 5730.</p></div>
+
+<div class="footnote"><p><a name="Footnote_141_141" id="Footnote_141_141"></a><a href="#FNanchor_141_141"><span class="label">[141]</span></a> Karl Hildebrand, <i>Ein starkes Volk</i>, p. 108.</p></div>
+
+<div class="footnote"><p><a name="Footnote_142_142" id="Footnote_142_142"></a><a href="#FNanchor_142_142"><span class="label">[142]</span></a> <i>The Figaro</i>, February 22, 1916.</p></div>
+
+<div class="footnote"><p><a name="Footnote_143_143" id="Footnote_143_143"></a><a href="#FNanchor_143_143"><span class="label">[143]</span></a> <i>Deutsche Medizinische Wochenschrift.</i></p></div>
+</div>
+
+
+<h2><a name="CHAPTER_XXI" id="CHAPTER_XXI"></a>CHAPTER XXI<span class='pagenum'><a name="Page_295" id="Page_295">[295]</a></span></h2>
+
+<h3>THE FINAL ISSUE</h3>
+
+
+<p><span class="smcap">To</span> come victorious out of the present ordeal&mdash;if,
+indeed, that be possible with the leaders,
+principles, methods and strivings that still
+characterize us&mdash;will not suffice to effect the
+triumph of our cause. The present, momentous
+though it be, cannot with safety be separated in
+thought or action from the future. The struggle
+will go on relentlessly after this campaign until
+one side has worsted the other definitively.
+And it is for that struggle that it behoves us to
+prepare while the war is still at its height.</p>
+
+<p>The Germans, true to their practice, have
+set us the example. Their curious combinations
+for dividing the Allies while negotiating
+their own schemes for reorganizing political
+Europe have been worked out in almost every
+detail. Their projects for creating a vast and
+powerful economic organization, to be known
+as Central Europe,<a name="FNanchor_144_144" id="FNanchor_144_144"></a><a href="#Footnote_144_144" class="fnanchor">[144]</a> with its first appendix in
+the Balkan Peninsula, have been carefully
+woven, and will be duly embellished when
+the hour for unfolding them has struck. In
+a word, when opportunity suddenly appears
+like the bridegroom of the Gospel, the German
+will be found waiting, with girded loins and
+trimmed lamp. He has distributed the parts
+of each nation in the international drama, and
+if the r&ocirc;les cannot be taken over to-morrow,
+he will wait until the day after.</p>
+
+<p>The world is henceforth no longer a field of
+labour for the individual. Co-operation is
+<span class='pagenum'><a name="Page_296" id="Page_296">[296]</a></span>the open sesame to the economic life of the
+future. And co-operation means organization.
+Organization, then, is the Alpha and Omega
+of the new era. That is the mysterious radium
+which has enabled a single race to assail and
+hold its own against a group of powers whose
+territory and population are many times
+greater than its own. That race has demonstrated
+the quasi-omnipotence of organized
+labour, and has thereby itself become almost
+omnipotent. On the success or failure of its
+adversaries to create a like force and rise to
+the same height depends the future of Europe
+and the British Empire. One of the first
+corollaries of the new principle is the enlargement
+of all great units, including political
+communities. Germany and Austria, therefore,
+are bound, if not precisely to coalesce in one
+whole, at least to co-operate and combine for
+their common ends against common competitors,
+and thus to form the nucleus of that federal state
+which is, our enemies hope, one day to be commensurate
+with the continent of Europe.</p>
+
+<p>At present, however satisfactory the military
+situation may be said to be, the general outlook
+is far from bright. Our aims are impoverished,
+our creative energies are clogged by prejudice,
+our political vision is narrowed by party goals,
+and the forces inherent in the nation which should
+be employed in readjusting its life to the new
+conditions are being frittered away in abortive
+efforts to neutralize dissolvent ideas that are sapping
+only those organs of our social and political
+system which are already vicious or decayed.
+The waste of the empire&#8217;s resources has no parallel
+in history. Supreme confusion marks our internal
+condition. Our leaders have done nothing to
+familiarize the nation with the dangers that<span class='pagenum'><a name="Page_297" id="Page_297">[297]</a></span>
+threaten it, the means by which they should be
+met, or with the social and political ideas which
+are destined to shape and sway the new order
+of things which is already close at hand.</p>
+
+<p>In the absence of constructive leaders it is
+for the nation itself to make due preparation
+for the momentous changes in the social and
+political system of Europe to which the
+present crisis is but the prelude.</p>
+
+<p>And although much has been spoken and
+written on the subject since the war began,
+little permanent work has as yet been done.
+And there are few signs of a radical change
+for the better. The confusion and incongruousness
+that mark the ideas of the reformers,
+and the hesitancy and conflicting interests of
+politicians make one dubious of the outcome of
+the present contest. Almost everything essential
+would appear to be still lacking to the
+Allies, and the nature of the coming &#8220;peace
+period&#8221; is not realized, because the war is
+looked upon as an isolated phenomenon which
+began in July 1914, and will end when hostilities
+have ceased. Another belief equally misleading
+and mischievous is that the Teuton
+race can be paralysed if not crushed, and that
+for fifty or sixty years to come no revival of
+its energies, no recrudescence of its morbid
+aggressiveness need be apprehended. If we
+continue to shape our conduct on that assumption
+we may find ourselves one day in a
+Serbonian bog from which there is no rescue.
+However stringent the conditions which the
+Allies may be able to impose on their enemies,
+there will still remain a keen, strenuous, irrepressible
+race of at least a hundred and twenty
+millions, endowed with rare capacities for
+organization, cohesion, self-sacrifice and perseverance,<span class='pagenum'><a name="Page_298" id="Page_298">[298]</a></span>
+whom no treaties can bind, no scruples
+can restrain, no dangers intimidate. At any
+moment a new invention, a favourable diplomatic
+combination, would suffice to move them
+to burst all bounds and resume the military,
+naval and aerial contest anew.</p>
+
+<p>Even now, while the war is still raging, they
+are busy with comprehensive plans for the
+economic struggle which will succeed it. Nor
+are they content to weave schemes. They
+have already begun to carry them out. To
+mention but a few of the less important
+enterprises, as symptoms of the German
+solicitude for detail, there was a numerous
+gathering of railway representatives, Austrian,
+Hungarian and German, in August 1915, to
+consider the means of readjusting the railway
+service to the conditions which the peace
+would usher in. Among the projects laid
+before the meeting and insisted on by various
+financial institutions was the reconstruction
+on a new basis of the Sleeping Car Company,
+from which Belgian capital is to be excluded.<a name="FNanchor_145_145" id="FNanchor_145_145"></a><a href="#Footnote_145_145" class="fnanchor">[145]</a></p>
+
+<p>In Italy many of the German commercial
+houses are, so to say, hibernating during the war.
+They merely altered their names and substituted
+well-paid, friendly Italians for Germans, and
+the feat was achieved. In this way the Kaiser&#8217;s
+mercury mines of Abbadia, San Salvatore and
+Corte Vecchia in Tuscany are being protected,
+and nobody in Italy is under any misapprehension
+as to what is going on there. They are
+nominally in the hands of Swiss.</p>
+
+<p>One of the most successful man&#339;uvres by
+which the Germans have already parried the
+strokes of their rivals in the economic struggle
+<span class='pagenum'><a name="Page_299" id="Page_299">[299]</a></span>is by crossing the frontiers and carrying on
+the contest in the enemy&#8217;s country. It was
+thus that, when Russia, by way of protecting
+her own nascent textile industries, levied
+heavy duties on imports from abroad, the
+Germans transported their plant and their
+workmen across the border, built extensive
+works in Lodz which gradually grew into a
+prosperous German city and rendered sterling
+services to the Teuton invader during the
+present war. They intend to have recourse
+to the same device as soon as hostilities have
+ceased. German trade papers announced this
+to their readers and urged them to communicate
+with the staff with a view to receiving
+information respecting ways and means.</p>
+
+<p>One Berlin trade journal&mdash;the most widely
+circulated in the German capital&mdash;had recently
+a great headline entitled: &#8220;How to keep up
+German Exportation after the War!&#8221; After
+a preamble enumerating the difficulties that
+would be thrown in the way of exporters by
+the Allies, the article went on thus: &#8220;For
+some years to come the means of extricating
+ourselves from this cruel predicament will
+consist in transporting the work of manufacturing
+or refining our merchandise to a
+neutral country. We are now in a position
+to offer information and advice on this head
+to those German manufacturers who are working
+for exportation, and we shall endeavour to
+extend our action in the future. We advise
+all those manufacturers who are desirous of
+developing their business in this way to enter
+into relations with us without delay.&#8221;<a name="FNanchor_146_146" id="FNanchor_146_146"></a><a href="#Footnote_146_146" class="fnanchor">[146]</a></p>
+<p><span class='pagenum'><a name="Page_300" id="Page_300">[300]</a></span></p>
+<p>The device is simple, and has hitherto been
+efficacious. In Switzerland the number of
+German firms is large and continues to augment.
+They are branches of German houses, and their
+aim is to further the interests of these. They
+mask their intentions by assuming Swiss names
+and also by obtaining for their employees
+naturalization papers in the little republic.
+How, it may be asked, do the Allies propose
+to thwart these man&#339;uvres? They probably
+have not given the matter a moment&#8217;s serious
+consideration. A Swiss journal of repute<a name="FNanchor_147_147" id="FNanchor_147_147"></a><a href="#Footnote_147_147" class="fnanchor">[147]</a>
+published some time ago a characteristic letter
+received by a Swiss business man from a
+German textile manufacturer. One passage
+is worth reproducing: &#8220;The actual situation
+renders it impossible for us to maintain relations
+with our former customers. Hence,
+it is of the utmost importance for us to be
+informed respecting the commercial and financial
+situation with a view to the resumption
+of our intercourse in a lucrative form after
+this long interruption. It is our intention,
+therefore, to have our products sold through
+a Swiss branch by Swiss agents.&#8221;<a name="FNanchor_148_148" id="FNanchor_148_148"></a><a href="#Footnote_148_148" class="fnanchor">[148]</a></p>
+
+<p>With their incorrigible disposition to judge
+others by themselves, the British people fancy
+that after the war a wave of liberalism will
+sweep over Germany, demolish the strongholds
+of militarism there, and reveal a pacific,
+level-headed nation with whom it may be
+possible to hold friendly intercourse. This,
+to my thinking, is also a delusion. Even if
+the Kaiser and his environment were dislodged
+from their places, Germany&#8217;s ideals, aims
+<span class='pagenum'><a name="Page_301" id="Page_301">[301]</a></span>and strivings would remain unchanged. But
+the Kaiser and his Government are minded
+to leave nothing to chance. They, too, have
+their plans, which are simple and comprehensive,
+and would appear to have escaped the
+notice of British optimists. And yet they
+are well worth consideration. The Germans
+themselves put the matter thus&mdash;</p>
+
+<p>The enormous expenditure necessitated by
+the war will call for special financial legislation
+of which the keynote will be found in monopolies.
+Now, the present German Finance
+Minister, who is a banker by training, intends
+that the monopolies to be created shall be
+effected, not by the unaided resources of the
+State, but by its co-operation with the interested
+business men and banks. On this basis
+he is working at monopolies of cigarettes, life
+insurance and electric power. This complex
+arrangement is facilitated by the machinery of
+the banks and their peculiar activity. And
+here we touch upon one of the main sources
+whence German organization after the war
+will draw its vitality. It is on the operations
+of these financial institutions that it behoves
+us to lay stress. They are so many magnetic
+centres which attract nearly all the free
+capital of the country and then employ it as
+they think fit. And one momentous consequence
+of this command of money is the
+possession of almost unrestricted power over
+industrial enterprises, present and future. For
+it depends on the banks to extend these and to
+restrict the output of those in consonance with
+the economic policy pursued by the State.</p>
+
+<p>Nor should it be forgotten that the power
+and influence of the banks is not limited by
+the amount of capital they actually possess.<span class='pagenum'><a name="Page_302" id="Page_302">[302]</a></span>
+Over and above this they wield all the financial
+force conferred by the vast amounts deposited
+with them by customers. This was evidenced
+in the case of the Banca Commerciale in Italy,
+which had a working capital of &pound;6,240,000 in
+the year 1914. Now, of that sum only 2&middot;5
+per cent. was owned by Germans, yet the
+bank itself and all the industries dependent
+on it were exploited by the German Board of
+Directors.<a name="FNanchor_149_149" id="FNanchor_149_149"></a><a href="#Footnote_149_149" class="fnanchor">[149]</a> In the Fatherland we observe
+the same phenomenon. All the German banks
+together, excepting the hypothecary institutions,
+owned &pound;195,000,000 sterling, about 44
+per cent. of which belonged to the eight principal
+banks of the empire.<a name="FNanchor_150_150" id="FNanchor_150_150"></a><a href="#Footnote_150_150" class="fnanchor">[150]</a> Possessing only
+&pound;86,050,000 of their own, they disposed of
+&pound;259,600,000 belonging to other people.</p>
+
+<p>One effect of the establishment of groups
+of monopolies will be to increase the number
+of persons dependent for their livelihood on
+the State. It is calculated that the total,
+including heads of families, will amount to
+tens of millions. The corn monopoly will bring
+in five million farmers, heads of families,
+who will have to look to the State for the
+amount of their yearly income. For it is
+evident that the Government will be &#8220;co-operating&#8221;
+not with the peasants, but with the
+great landed proprietors. Now, these are the
+men whose backing is indispensable, and has
+never been wanting, to the military and court
+<span class='pagenum'><a name="Page_303" id="Page_303">[303]</a></span>parties who are primarily responsible for the
+war. Once the wages of the workmen and the
+interest on capital become dependent on the
+State, the entire nation is but a vast machine
+worked by the men in power. To suppose
+that these will lend a willing ear to the demands
+for political liberty which are certain to be
+made after the conclusion of peace is to expect
+the impossible. What will probably happen
+is a keen struggle between the classes and the
+masses for the mastery, but until it is decided in
+favour of the latter, the Germany of the future
+will continue to be the Germany of to-day.</p>
+
+<p>In the meanwhile, the Teutons, despite
+their striking inferiority in numbers and
+resources, have kept the Great Powers of the
+world at bay, have defeated their armies, sunk
+their mercantile marine, occupied their territory,
+drained their wealth, paralysed their
+trade and deprived them of all the odds which
+they owed to circumstance. Organization has
+thus more than made up for the seemingly
+overpowering advantages possessed by the
+Allies at the outset. That it will suddenly
+lose its worth during the remainder of the
+campaign is hardly to be expected. The contingency
+which we may have to face, if we
+continue to move at our present pace, is
+manifest to the observant student of politics.</p>
+
+<p>By the average man and our &#8220;leaders of
+men&#8221; it is hardly even suspected. Our easy-going
+optimism is largely the result of temperament
+and partly, too, of presumptuous
+confidence born of past luck, and in especial
+of the relief we feel at our escape from most
+of the obvious dangers that menaced us at
+the outset of the war. There has been no
+trouble over Ireland, no rising in India, no<span class='pagenum'><a name="Page_304" id="Page_304">[304]</a></span>
+serious defection in South Africa, no invasion
+of Egypt. And we irrationally feel that these
+dark clouds, having drifted harmlessly past,
+the others will follow them. It was said of
+the Swiss in medi&aelig;val times, that they were
+kept together by the bewilderment of men and
+the providence of God, confusione hominum
+et providentia Dei. The same might be truly
+predicated of the British people of to-day.</p>
+
+<p>But there is no reason for assuming that
+they will be thus providentially cared for in
+the future. The Allies have not yet driven
+the Germans out of Belgium, France, Serbia,
+Montenegro, Poland or Kurland. Neither have
+they contrived to starve them into sueing for
+peace. They talk glibly of exhausting them
+as though their own resources were inexhaustible.
+They do well perhaps to make light
+of the Zeppelins, but they pay far too little
+attention to the submarines, and seem not to
+realize the magnitude of the losses which these
+weapons have inflicted on our merchant shipping,
+nor to have calculated how long it can hold
+out at the present rate of destruction. Freights
+have increased enormously, and they have not
+yet reached the highest point they are likely to
+attain. Imports have been restricted, prices
+have gone up and taxation has increased.
+Time may not be on the side of our enemies, but
+is it on ours? It is a fickle ally at best, and to
+rely on its support is to lean on a split reed.</p>
+
+<p>Optimism of the unreasoning kind prevalent
+in Great Britain is unwarranted, whether
+we confine our view to the actual campaign or
+extend it to the greater struggle of which that
+forms but an episode. Taking the former case
+first, one is struck with certain considerations
+which, without inspiring dismay, ought surely to<span class='pagenum'><a name="Page_305" id="Page_305">[305]</a></span>
+preserve us from that excessive self-confidence
+which is too often a hindrance to fruitful
+exertion. The financial burden and its relation
+to the limits of the allied nations&#8217; capacity to
+bear it is a fit subject for meditation when we
+feel uplifted in self-complacency. Doubtless it
+is encouraging to watch the symptoms of slow
+exhaustion displaying themselves in the central
+empires and to speculate on the consequences
+of the further fall of the German mark. But
+these consequences we are too apt to exaggerate.
+For we misjudge the character, the
+staying powers, the ideals, the psychology of
+the German people. We fancy that because
+they have been reduced from comfort to hardship
+therefore they are on the verge of collapse.
+We imagine that because their commercial
+and industrial classes are keen on making
+money and ardently desire peace, they are
+also ready to purchase it by acquiescing in
+conditions which would dispel their dreams of
+world power. We feel certain that if Prussia
+and all the German States received genuine
+parliamentary government, the costly ambitions
+of the military party would forthwith be
+dispelled for all time.</p>
+
+<p>It is by delusions such as these that the
+British people were hoodwinked in the past,
+and it is by the same vain imaginings that
+they may be victimized in the future. For
+they seem incapable of gauging the German
+psyche. The two races meet each other in
+masks. The apparent ingenuousness of the
+English-speaking Teuton is calculated to throw
+the most vigilant Anglo-Saxon intelligence off
+its guard. We have no psychological X-rays
+by which to pierce the peculiar racial vesture
+in which the German soul is shrouded, nor<span class='pagenum'><a name="Page_306" id="Page_306">[306]</a></span>
+are we endowed with the gift of patient observation
+which might enable us to extract
+those rays from facts. And so we stumble
+along, dealing with an imaginary people whom
+we ourselves have created after our own image
+and likeness, falling into fatal blunders and
+recommencing anew.</p>
+
+<p>It is true that the mark has fallen, and that
+the German financial fabric is in a parlous
+condition. But that fabric is kept from
+crumbling away by the war, just as the Egyptian
+papyrus is preserved so long as it does not
+come into contact with the air. Moreover,
+common prudence should impel us to find out
+at what a cost to ourselves we have reduced
+the value of the mark. If financial exhaustion
+be among the ways in which one group of
+belligerents may be made to succumb, it is
+wise to ask whether it is the States which have
+to pay gold for their huge requirements or
+those which can get almost everything they
+need for paper that are likely to succumb first.</p>
+
+<p>The question is relevant, yet, because it has
+not been moved into the foreground of discussion,
+there are few people who ponder on it.</p>
+
+<p>Personally, I am convinced that impecuniosity
+and loss of credit will never bring the
+Germans to their knees.</p>
+
+<p>Great Britain has achieved wonders in the
+financial sphere during this war, as the Allies
+and certain neutrals can testify. Our budgets
+are monuments of the nation&#8217;s spirit of self-sacrifice.
+But we have not come scathless
+out of the ordeal. And besides our inevitable
+losses we are suffering from criminal waste. No
+other country is so thriftless as ours. In this
+respect we are a byword among the peoples of
+the world. But we give no thought to the<span class='pagenum'><a name="Page_307" id="Page_307">[307]</a></span>
+consequences. Yet the yearly outlay on the
+one hand and the means of meeting it on the
+other hand are calculable, and it would be well
+if those who rely upon Germany&#8217;s financial
+prostration would carefully reckon up and
+compare the two, were it only for the sake of
+the sobering effect. On this aspect of the
+problem it is needless to dwell further. It will
+compel close and painful attention before the
+end of the campaign.</p>
+
+<p>Another point to which inadequate heed has
+been paid, is the lack of working men. This
+dearth of labour is not felt in Germany or
+Austria, because they have two million prisoners
+and two million Poles on whom they can draw
+not only for agricultural work but also for
+skilled labour. And the authorities of both
+those empires are employing their war prisoners
+very freely. Here, as everywhere else, the
+Teuton is enterprising. I have seen photographs
+of Russians in Germany harnessed and
+employed as beasts of burden. At any rate,
+it is no secret that from the latter half of the
+year 1915 Germany and Austria were far ahead
+of Great Britain, France, Russia, the United
+States and Japan <i>combined</i> in the amount of
+munitions they turned out every week. And
+they are still ahead of them to-day. This
+fact, which can be verified, has an ominous
+ring. What it connotes is that our enemies
+have no strikes, no conscientious objectors,
+no fiddling with obligatory service, industrial
+or military. Each man is at his country&#8217;s
+beck and call. Germany is free from strikers,
+slackers and such-like anti-social types.</p>
+
+<p>In Russia the want of working men is felt
+keenly. It is one of the main elements of the
+sharp rise of prices there. In France, too, the<span class='pagenum'><a name="Page_308" id="Page_308">[308]</a></span>
+number of hands needed is very great, and
+the loss inflicted by their withdrawal from the
+labour market is more sensible than the average
+reader has any notion of. And far from being
+filled, these gaps are becoming wider day by
+day. This shortage is a source of solicitude
+to the Government of the Republic.</p>
+
+<p>What it portends may readily be imagined.
+It certainly compels us to qualify the cheering
+assertion that time is on our side. What else
+it implies may be left to the imagination of
+the reader.</p>
+
+<p>More serious still than the financial burden,
+or the dearth of workmen, is the inadequacy of
+the mercantile marine to the needs of the Allies
+in general, and of Great Britain in especial.
+To this privation submarine warfare has contributed
+materially. And there is not the
+slenderest ground for hope that the Germans
+will desist from it during this campaign. On
+the contrary, they will intensify it. Of the
+neutrals, some are too weak and others too
+timid to enter an energetic protest against this
+violation of international law. The freight-carrying
+capacity of the transports still available
+is less than the British optimist realizes.
+How much less, it would be unfruitful to
+inquire. It is enough to know that in this
+matter, too, we had better seek a more helpful
+ally than time. Those who are most conversant
+with these elements of the problem are
+haunted by a restive consciousness of disappointment
+and apprehension.</p>
+
+<p>For the power, the independence, the destinies
+of the Empire are interwoven with our
+command of the sea. On our merchant tonnage
+depend our economic life, our army
+and navy, everything we have and are and<span class='pagenum'><a name="Page_309" id="Page_309">[309]</a></span>
+hope to be. That destroyed or paralysed,
+nothing remains but a memory. And the
+Germans are working hard and not unsuccessfully
+to cripple it. During the week ending
+April 13, 85,000 tons of British and neutral
+shipping were destroyed. Since the beginning
+of the submarine blockade over 3,000,000 tons
+have been sent to the bottom of the sea.
+On an average 50,000 tons a week are being
+torpedoed or mined, and our losses tend to
+augment rather than diminish. Nor is that
+all. Not only is our merchant tonnage being
+whittled down below the minimum needed for
+our strict requirements, but we are also being
+hindered from utilizing the transports available.
+And herein lies a danger the full significance
+of which has not yet received proper attention.
+Shortage of labour is pleaded as the reason why
+effective measures have not been adopted to fill
+the gaps made by the enemy submarines. And
+labour is inadequate because the Government
+eschewes industrial as well as military compulsion.
+It possesses the power, but shrinks from
+wielding it. To my thinking, this is one of the
+symptoms of that madness with which the gods
+strike a nation before destroying it.</p>
+
+<p>And the longer this process of&mdash;shall we call
+it mutual?&mdash;exhaustion goes on, the more important
+grow the neutral States and the
+louder sound their voices. They are like
+Jeshurun, who waxed fat and kicked. Without
+special aptitudes for arithmetic one may
+calculate, with a rough approach to accuracy,
+the time when the process of mutual exhaustion
+will enable the neutrals to exert an absurdly
+disproportionate and possibly dangerous influence
+over the belligerents. That is a calculation
+which those optimists would do well to<span class='pagenum'><a name="Page_310" id="Page_310">[310]</a></span>
+make who tell us that all is well because &#8220;time
+is on our side.&#8221;</p>
+
+<p>It is still open to us to utilize our superior
+resources, realize our latent strength, and ward
+off the dangers that beset us. But the first
+advance towards the goal must be to face the
+facts, behold things and persons as they are, and
+apply our new-found knowledge to the work of
+self-rescue. Our conception of the nature of
+the contest in which we are engaged must be recast.
+Our demands on our national leaders&mdash;not
+those now in power who only mislead&mdash;must
+be greatly enlarged. Truth, however
+bitter, must take the place of fancy. Ideas
+and institutions incongruous with the new
+social and political conditions must be displaced.
+The nation&#8217;s aims and policy should
+be stated boldly and clearly, and adequate
+machinery set up to achieve them. In a word,
+system will have to be substituted for confusion,
+method for haphazard. Destitute of
+a great or strong man, it behoves us to imitate
+our enemy and create a vast organization with
+branches all over the empire. But the influence
+of the government ever since the outbreak of
+the war has militated against all those reforms.</p>
+
+<p>If these changes had been effected at the
+outset the story of the present campaign would
+have been different from what it is. A group
+of belligerents representing only 5,921,000
+square kilometres of territory and 150,199,000
+inhabitants, or, say, 4 per cent. of dry land
+and 9&middot;1 per cent. of human beings, would not
+have held its own for twenty-one months
+against a group disposing of 68,031,000 square
+kilometres of territory and a population of
+770,060,000, or 46 per cent. of the land on the
+globe and 47 per cent. of the human race.<span class='pagenum'><a name="Page_311" id="Page_311">[311]</a></span>
+Providence has bestowed upon the Allies the
+wherewithal to attain their legitimate ends.
+The Allies&#8217; leaders are frittering them away.</p>
+
+<p>For the thirty years of preparation do not
+afford us an adequate explanation of the
+Teuton superiority. The clue is to be found in
+the psychological factor. Germany is wholly
+alive, physically, intellectually and psychically.
+And she lives in the present and future. We
+either drowse or vegetate in and for the past.
+She has the decisive advantage of possessing
+organization and organizers. Therein lies the
+secret of her sustained success. The Allies
+lack both, and are hardly conscious of the
+necessity of making good the deficiency.
+Therein lies their weakness. It has made
+itself felt throughout the campaign and will
+determine the upshot of the war. And in the
+politico-economic struggle that will follow the
+war, it is the same psychological factor which the
+Allies rate so low that will decide the final issue.</p>
+
+<p>Unless we wake up to the reality and readjust
+our ideas and methods to that&mdash;and of such
+awakening there is as yet no sure token&mdash;the
+outcome of the present war will be a draw, and
+the final upshot of the larger contest will be
+our utter defeat. No journalistic optimism, no
+ministerial magniloquence can alter that. These
+contingencies are already fullfronting us, as we
+shall soon learn to our cost, and the people who
+are veiling them from the public view, however
+praiseworthy their intentions may be, are leading
+the nation to ruin. And if we continue to uphold
+our present chiefs and methods national disaster
+is as inevitable as destiny. But it is well to
+remember that it is not Fate that is pursuing
+us; it is we who are overtaking Fate.</p>
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_144_144" id="Footnote_144_144"></a><a href="#FNanchor_144_144"><span class="label">[144]</span></a> Cf. Friedrich Naumann, <i>Mitteleuropa</i>.</p></div>
+
+<div class="footnote"><p><a name="Footnote_145_145" id="Footnote_145_145"></a><a href="#FNanchor_145_145"><span class="label">[145]</span></a> <i>Giornale del lavori pubblici.</i> Cf. also <i>Giornale d&#8217;Italia</i>,
+August 22, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_146_146" id="Footnote_146_146"></a><a href="#FNanchor_146_146"><span class="label">[146]</span></a> <i>Zeitschrift des Handelsvertragsvereins</i>, March 30, 1915.
+Cf. also <i>La Gazette de Lausanne</i> and <i>L&#8217;Idea Nazionale</i>,
+December 5, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_147_147" id="Footnote_147_147"></a><a href="#FNanchor_147_147"><span class="label">[147]</span></a> <i>Neue Zurcher Zeitung.</i></p></div>
+
+<div class="footnote"><p><a name="Footnote_148_148" id="Footnote_148_148"></a><a href="#FNanchor_148_148"><span class="label">[148]</span></a> <i>Neue Zurcher Zeitung</i>, also <i>L&#8217;Idea Nazionale</i>,
+December 5, 1915.</p></div>
+
+<div class="footnote"><p><a name="Footnote_149_149" id="Footnote_149_149"></a><a href="#FNanchor_149_149"><span class="label">[149]</span></a> Giovanni Preziosi, <i>La Germania alla Conquista d&#8217;Italia</i>,
+2d edizione, p. 150.</p></div>
+
+<div class="footnote"><p><a name="Footnote_150_150" id="Footnote_150_150"></a><a href="#FNanchor_150_150"><span class="label">[150]</span></a> Deutsche Bank, 248 million marks; Diskonto Gesellschaft,
+149 millions; Dresdner Bank, 261 millions;
+Darmst&auml;dter Bank, 192 millions; Berliner Handelsg.
+145 millions; Commerz- u. Diskonto Bank, 100 millions;
+Nationalbank, 98 millions; Mitteldeutsche Kreditbank,
+69 million marks.</p></div>
+
+</div>
+
+
+
+
+
+
+
+<pre>
+
+
+
+
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