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At the beginning of the war, even the Socialist Party in the Reichstag voted the Government credits. The press and the people unanimously supported the Government because there was a very terrorising fear that Russia was about to invade Germany and that England and France were leagued together to crush the Fatherland. Until the question of the submarine warfare came up, the division of opinion which had already developed between the Army and Navy clique and the Foreign Office was not general among the people. Although the army had not taken Paris, a great part of Belgium and eight provinces of Northern France were occupied and the Russians had been driven from East Prussia. The German people believed they were successful. The army was satisfied with what it had done and had great plans for the future. Food and economic conditions had changed very little as compared to the changes which were to take place before 1917. Supplies were flowing into Germany from all neutral European countries. Even England and Russia were selling goods to Germany indirectly through neutral countries. Considerable English merchandise, as well as American products, came in by way of Holland because English business men were making money by the transaction and because the English Government had not yet discovered leaks in the blockade. Two-thirds of the butter supply in Berlin was coming from Russia. Denmark was sending copper. Norway was sending fish and valuable oils. Sweden was sending horses and cattle. Italy was sending fruit. Spanish sardines and olives were reaching German merchants. There was no reason to be dissatisfied with the way the war was going. And, besides, the German people hated their enemies so that the leaders could count upon continued support for almost an indefinite period. The cry of "Hun and Barbarian" was answered with the battle cry "Gott strafe England."

The latter part of April on my first trip to the front I dined at Great Headquarters (Grosse Haupt Quartier) in Charleville, France, with Major Nicolai, Chief of the Intelligence Department of the General Staff. The next day, in company with other correspondents, we were guests of General von Moehl and his staff at Peronne. From Peronne we went to the Somme front to St. Quentin, to Namur and Brussels. The soldiers were enthusiastic and happy. There was plenty of food and considerable optimism. But the confidence in victory was never so great as it was immediately after the sinking of the Lusitania. That marked the crisis in the future trend of the war.

Up to this time the people had heard very little about the fight between the Navy and the Foreign Office. But gradually rumours spread. While there was previously no outlet for public opinion, the Lusitania issue was debated more extensively and with more vigour than the White Books which were published to explain the causes of the war.

With the universal feeling of self confidence, it was but natural that the people should side with the Navy in demanding an unrestricted submarine warfare. When Admiral von Bachmann gave the order to First Naval Lieutenant Otto Steinbrink to sink the Lusitania, he knew the Navy was ready to defy the United States or any other country which might object. He knew, too, that von Tirpitz was very close to the Kaiser and could count upon the Kaiser's support in whatever he did. The Navy believed the torpedoing of the Lusitania would so frighten and terrorise the world that neutral shipping would become timid and enemy peoples would be impressed by Germany's might on the seas. Ambassador von Bernstorff had been ordered by the Foreign Office to put notices in the American papers warning Americans off these ships. The Chancellor and Secretary von Jagow knew there was no way to stop the Admiralty, and they wanted to avoid, if possible, the loss of American lives.

The storm of indignation which encircled the globe when reports were printed that over a thousand people lost their lives on the Lusitania, found a sympathetic echo in the Berlin Foreign Office. "Another navy blunder," the officials said--confidentially. Foreign Office officials tried to conceal their distress because the officials knew the only thing they could do now was to make preparation for an apology and try to excuse in the best possible way what the navy had done. On the 17th of May like a thunderbolt from a clear sky came President Wilson's first Lusitania note.

"Recalling the humane and enlightened attitude hitherto assumed by the Imperial German Government in matters of international life, particularly with regard to the freedom of the seas; having learned to recognise German views and German influence in the field of international obligations as always engaged upon the side of justice and humanity;" the note read, "and having understood the instructions of the Imperial German Government to its naval commanders to be upon the same plane of human action as those prescribed by the naval codes of other nations, the government of the United States is loath to believe--it cannot now bring itself to believe--that these acts so absolutely contrary to the rules and practices and spirit of modern warfare could have the countenance or sanction of that great government. … Manifestly submarines cannot be used against merchantmen as the last few weeks have shown without an inevitable violation of many sacred principles of justice and humanity. American citizens act within their indisputable rights in taking their ships and in travelling wherever their legitimate business calls them upon the high seas, and exercise those rights in what should be a well justified confidence that their lives will not be endangered by acts done in clear violation of universally acknowledged international obligations and certainly in the confidence that their own government will sustain them in the exercise of their rights."

And then the note which Mr. Gerard handed von Jagow concluded with these words:

"It (The United States) confidently expects therefore that the Imperial German Government will disavow the acts of which the United States complains, that they will make reparation as far as reparation is possible for injuries which are without measure, and that they will take immediate steps to prevent the recurrence of anything so obviously subversive of the principles of warfare, for which the Imperial German Government in the past so wisely and so firmly contended. The Government and people of the United States look to the Imperial German Government for just, prompt and enlightened action in this vital matter. … Expressions of regret and offers of reparation in the case of neutral ships sunk by mistake, while they may satisfy international obligations if no loss of life results, cannot justify or excuse a practice, the natural necessary effect of which is to subject neutral nations or neutral persons to new and immeasurable risks. The Imperial German Government will not expect the Government of the United States to omit any word, or any act, necessary to the performance of its sacred duty of maintaining the rights of the United States and its citizens, and of safeguarding their free exercise and enjoyment."

Never in history had a neutral nation indicted another as the United States did Germany in its first Lusitania note without immediately going to war. Because the Foreign Office feared the reaction it might have upon the people, the newspapers were not permitted to publish the text until the press bureaus of the Navy and the Foreign Office had mobilised the editorial writers and planned a publicity campaign to follow the note's publication. But the Navy and Foreign Office could not agree on what should be done. The Navy wanted to ignore Wilson. Naval officers laughed at President Wilson's impertinence and, when the Foreign Office sent to the Admiralty for all data in possession of the Navy Department regarding the sinking of the Lusitania the Navy refused to acknowledge the request.

During this time I was in constant touch with the Foreign Office and the American Embassy. Frequently I went to the Navy Department but was always told they had nothing to say. When it appeared, however, that there might he a break in diplomatic relations over the Lusitania the Kaiser called the Chancellor to Great Headquarters for a conference. Meanwhile Germany delayed her reply to the American note because the Navy and Foreign Office were still at loggerheads. On the 31st of May von Jagow permitted me to quote him in an interview saying:

"America can hardly expect us to give up any means at our disposal to fight our enemy. It is a principle with us to defend ourselves in every possible way. I am sure that Americans will be reasonable enough to believe that our two countries cannot discuss the Lusitania matter until both have the same basis of facts."

The American people were demanding an answer from Germany and because the two branches of the Government could not agree on what should be said von Jagow had to do something to gain time. Germany, therefore, submitted in her reply of the 28th of May certain facts about the Lusitania for the consideration of the American Government saying that Germany reserved final statements of its position with regard "to the demands made in connection with the sinking of the Lusitania until a reply was received from the American Government." After the note was despatched the chasm between the Navy and Foreign Office was wider than ever. Ambassador Gerard, who went to the Foreign Office daily, to try to convince the officials that they were antagonising the whole world by their attitude on the Lusitania question, returned to the Embassy one day after a conference with Zimmermann and began to prepare a scrap book of cartoons and clippings from American newspapers. Two secretaries were put to work pasting the comments, interviews, editorials and cartoons reflecting American opinion in the scrap book. Although the German Foreign Office had a big press department its efforts were devoted more to furnishing the outside world with German views than with collecting outside opinions for the information of the German Government. Believing that this information would be of immeasurable benefit to the German diplomats in sounding the depths of public sentiment in America, Gerard delivered the book to von Jagow personally.

In the meantime numerous conferences were held at Great Headquarters. Financiers, business men and diplomats who wanted to keep peace with America sided with the Foreign Office. Every anti-American influence in the Central Powers joined forces with the Navy. The Lusitania note was printed and the public discussion which resulted was greater than that which followed the first declarations of war in August, 1914. The people, who before had accepted everything their Government said, began to think for themselves. One heard almost as much criticism as praise of the Lusitania incident. For the first time the quarrel, which had been nourished between the Foreign Office and the Admiralty, became nation-wide and forces throughout Germany lined up with one side or the other. But the Navy Department was the cleverer of the two. The press bureau sent out inspired stories that the submarines were causing England a loss of a million dollars a week. They said that every week the Admiralty was launching two U-boats. It was stated that reliable reports to Admiral von Tirpitz proved the high toll taken by the submarines in two weeks had struck terror to the hearts of English ship-owners. The newspapers printed under great headlines: "Toll of Our Tireless U-Boats," the names and tonnage of ships lost. The press bureau pointed to the rise in food prices in Great Britain and France. The public was made to feel a personal pride in submarine exploits. And at the same time the Navy editorial writers brought up the old issue of American arms and ammunition to further embitter the people.

Thus the first note which President Wilson wrote in the Lusitania case not only brought the quarrel between the Navy and Foreign Office to a climax but it gave the German people the first opportunity they had had seriously to discuss questions of policy and right.

In the Rhine Valley, where the ammunition interests dominated every phase of life, the Navy found its staunchest supporters. In educational circles, in shipping centres, such as Hamburg and Bremen, in the financial districts of Frankfort and Berlin, the Foreign Office received its support. Press and Reichstag were divided. Supporting the Foreign Office were the Lokal Anzeiger, the Berliner Tageblatt, the Cologne Gazette, the Frankforter Zeitung, the Hamburger Fremdemblatt, and the Vorwärts.

The Navy had the support of Count Reventlow, Naval Critic of the Deutsche Tageszeitung, the Täglische Rundscha, the Vossische Zeitung, the Morgen Post, the B. Z. Am Mittag, the Münchener Neueste Nachrichten, the Rheinische Westfälische Zeitung, and the leading Catholic organ, the Koelnische Volks-Zeitung.

Government officials were also divided. Chancellor von Bethmann-Hollweg led the party which demanded an agreement with the United States. He was supported by von Jagow, Zimmermann, Dr. Karl Helfferich, Secretary of the Treasury; Dr. Solf, the Colonial Minister; Dr. Siegfried Heckscher, Vice Chairman of the Reichstag Committee on Foreign Relations; and Philip Scheidemann, leader of the majority of the Socialists in the Reichstag.

The opposition was led by Grand Admiral von Tirpitz. He was supported by General von Falkenhayn, Field Marshal von Mackensen and all army generals; Admirals von Pohl and von Bachmann; Major Bassermann, leader of the National Liberal Party in the Reichstag; Dr. Gustav Stressemann, member of the Reichstag and Director of the North German Lloyd Steamship Company; and von Heydebrand, the so-called "Uncrowned King of Prussia," because of his control of the Prussian Diet.

With these forces against each other the internal fight continued more bitter than ever. President Wilson kept insisting upon definite promises from Germany but the Admiralty still had the upper hand. There was nothing for the Foreign Office to do except to make the best possible excuses and depend upon Wilson's patience to give them time to get into the saddle. The Navy Department, however, was so confident that it had the Kaiser's support in everything it did, that one of the submarines was instructed to sink the Arabic.

President Wilson's note in the Arabic case again brought the submarine dispute within Germany to a head. Conferences were again held at Great Headquarters. The Chancellor, von Jagow, Helfferich, von Tirpitz and other leaders were summoned by the Kaiser. On the 28th of August I succeeded in sending by courier to The Hague the following despatch:

"With the support of the Kaiser, the German Chancellor, Dr. von Bethmann-Hollweg, is expected to win the fight he is now making for a modification of Germany's submarine warfare that will forever settle the difficulties with America over the sinking of the Lusitania and the Arabic. Both the Chancellor and von Jagow are most anxious to end at once and for all time the controversies with Washington desiring America's friendship." (Published in the Chicago Tribune, August 29th, 1915.)

"The Marine Department, headed by von Tirpitz, creator of the submarine policy, will oppose any disavowal of the action of German's submarines. But the Kaiser is expected to approve the steps the Chancellor and Foreign Secretary contemplate taking, swinging the balance in favour of von Bethmann-Hollweg's contention that ships in the future must be warned before they are torpedoed."

One day I went to the Foreign Office and told one of the officials I believed that if the American people knew what a difficult time the Foreign Office was having in trying to win out over the Admiralty that public opinion in the United States might be mobilised to help the Foreign Office against the Admiralty. I took with me a brief despatch which I asked him to pass. He censored it with the understanding that I would never disclose his name in case the despatch was read in Germany.

A few days later the Manchester, England, Guardian arrived containing my article, headed as follows:

HOLLWEG'S CHANGE OF TUNE

Respect for Scraps of Paper

LAW AT SEA

Insists on Warning by Submarines

TIRPITZ PARTY BEATEN

Kaiser Expected to Approve New Policy

"New York, Sunday.

"Cables from Mr. Carl W. Ackerman, Berlin correspondent of the United Press published here, indicate that the real crisis following the Arabic is in Germany, not America. He writes:

"The Berlin Foreign Office is unalterably opposed to submarine activity, such as evidenced by the Arabic affair, and it was on the initiative of this Government department that immediate steps were taken with Mr. Gerard the American Ambassador. The nature of these negotiations is still unknown to the German public.

"It is stated on the highest authority that Herr von Jagow, Secretary of Foreign Affairs, and Chancellor von Bethmann-Hollweg are unanimous in their anxiety to settle American difficulties once and for all, retaining the friendship of the United States in any event.

"The Kaiser is expected to approve the course suggested by the Imperial Chancellor, despite open opposition to any disavowal of submarine activities which constantly emanates from the German Admiralty.

"The Chancellor is extremely desirous of placing Germany on record as an observer of international law as regards sea warfare, and in this case will win his demand that submarines in the future shall thoroughly warn enemy ships before firing their torpedoes or shells.

"There is considerable discussion in official circles as to whether the Chancellor's steps create a precedent, but it is agreed that it will probably close all complications with America, including the Lusitania case, which remained unsettled following President Wilson's last note to Germany.

"Thus if the United States approves the present attitude of the Chancellor this step will aid in clearing the entire situation and will materially strengthen the policy of von Bethmann-Hollweg and von Jagow, which is a deep desire for peace with America."

After this despatch was printed I was called to the home of Fran von Schroeder, the American-born wife of one of the Intelligence Office of the General Staff. Captain Vanselow, Chief of the Admiralty Intelligence Department, was there and had brought with him the Manchester Guardian. He asked me where I got the information and who had passed the despatch. He said the Navy was up in arms and had issued orders to the General Telegraph Office that, inasmuch as Germany was under martial law, no telegrams were to be passed containing the words submarines, navy, admiralty or marine or any officers of the Navy without having them referred to the Admiralty for a second censoring. This order practically nullified the censorship powers of the Foreign Office. I saw that the Navy Department was again in the saddle and that the efforts of the Chancellor to maintain peace might not be successful after all. But the conferences at Great Headquarters lasted longer than any one expected. The first news we received of what had taken place was that Secretary von Jagow had informed the Kaiser he would resign before he would do anything which might cause trouble with the United States.

Germany was split wide open by the submarine issue. For a while it looked as if the only possible adjustment would be either for von Tirpitz to go and his policies with him, or for von Jagow and the Chancellor to go with the corresponding danger of a rupture with America. But von Tirpitz would not resign. He left Great Headquarters for Berlin and intimated to his friends that he was going to run the Navy to suit himself. But the Chancellor who had the support of the big shipping interests and the financiers, saw a possible means of checkmating von Tirpitz by forcing Admiral von Pohl to resign as Chief of the Admiralty Staff. They finally persuaded the Kaiser to accept his resignation and appoint Admiral von Holtzendorff as his successor. Von Holtzendorff's brother was a director of the Hamburg-American Line and an intimate friend of A. Ballin, the General Director of the company. The Chancellor believed that by having a friend of his as Chief of the Admiralty Staff, no orders would be issued to submarine commanders contrary to the wishes of the Chancellor, because according to the rules of the German Navy Department the Chief of the Admiralty Staff must approve all naval plans and sign all orders to fleet commanders.

Throughout this time the one thing which frightened the Foreign Office was the fear that President Wilson might break off diplomatic relations before the Foreign Office had an opportunity to settle the differences with the United States. For this reason Ambassador Gerard was kept advised by Wilhelmstrasse of the internal developments in Germany and asked to report them fully but confidentially to Wilson. So, during this crisis when Americans were demanding a break with Germany because of Germany's continued defiance of President Wilson's notes, the American Government knew that if the Foreign Office was given more time it had a good chance of succeeding in cleaning house. A rupture at that time would have destroyed all the efforts of the Foreign Office to keep the German military machine within bounds. It would have over-thrown von Jagow and von Bethmann-Hollweg and put in von Tirpitz as Chancellor and von Heydebrand, the reactionary leader of the Prussian Diet, as Secretary of State. At that time, all the democratic forces of Germany were lined up with the Foreign Office. The people who blushed for Belgium, the financiers who were losing money, the shipping interests whose tonnage was locked in belligerent or neutral harbours, the Socialists and people who were anxious and praying for peace, were looking to the Foreign Office and to Washington to avoid a break.