II.-MOVEMENTS TOWARDS PEACE The Allied Reply to the U.S. Note A Separate Belgian Note to the U.S. A Cerman Note to Neutrals The U.S. President's Speech to the Senate III. THE CREAT WAR LOAN Mr. Bonar Law's Warning The Prime Minister's Appeal The War Loan in Brief 10 14 14 15 17 .18 I. IN THE COURSE OF THE WAR. THE THIRTIETH MONTH. we Under ordinary circumstances should have occupied at least our ordinary amount of space in discussing in outline the war events of the last month-the thirtieth of the war. As it is, the sudden and dramatic crisis in the relations between Germany and the United States (see next Note) must for once reduce our survey to a mere catalogue. Germany's so-called movement for Peace has only served to exhibit to the world the justice of the Allied cause. Important conferences have taken, or are taking, place between the Allies, with Mr. Lloyd George and Lord Milner as our representatives at Rome, and Lord Milner as our representative at Petrograd. In Roumania the great adventure of the Central Powers has at length been brought to a definite check without the Roumanian Army having been put out of actionthanks largely to the gallant part played by our Russian Allies. Sir John Jellicoe in an impressive speech has warned us that the submarine peril was never greater (this before the latest German threat to sink at sight), but that it must and will be dealt with. The new Coalition Government has been settling down to its work with universal goodwill for its Ministers in all they may do in the effective prosecution of the war. GERMANY AND THE UNITED STATES. The United States has broken off diplomatic relations with Germany. Count Bernstorff has been handed his passports; the United States Ambassador in Berlin has asked for his. Whether this will mean war between the two countries is not known at the moment of writing, but Mr. Wilson's action is clearly an event of the profoundest and most far-reaching importance. We can this month only very briefly show how he came to take this action. (1) On January 31st the German Government (which had just announced its intention of sinking at sight within certain areas British hospital ships, on the wholly untrue plea that these ships did not observe the regulations of the Geneva Convention) presented to Mr. Gerard (the U.S. Ambassador at Berlin) a further Note (signed by Herr Zimmerman, the Foreign Secretary). After a reference to the Allied terms of peace and a denial of any intention of "annexing" Belgium, the Note went on to say: For two and a-half years England has misused her naval power in the wicked attempt to force Germany into submission by hunger. Brutally ignoring international law, the group of Powers, led by England, prevents not only the legitimate commerce of their opponents, but by ruthless pressure they force also neutral States to abandon commercial intercourse which is not agreeable to them, or to restrict their commerce according to arbitrary regulations. The American people know the efforts which were undertaken in order to induce England and her Allies to return to international law and to respect the law of the freedom of the seas. The English Government persists in the starvation war, which in truth does not hit the fighting forces of its opponent, but forces women, children, the sick, and the old to suffer for the Fatherland's sake grievous privations, which are endangering the people's strength. Thus the British lust of power coldbloodedly increases the sufferings of the world without regard to any law of humanity, without regard to the protests of severely prejudiced neutrals, and even without regard to the silent desire for peace among the peoples of her own allies. Every day by which the terrible struggle is prolonged brings new devastations, new distress, new death. Every day by which the war is shortened preserves on both sides the lives of thousands of brave fighters, and is a blessing to tortured mankind. The Imperial Government would not be able to answer before its own conscience, before the German people, and before history, if it left any means whatever untried to hasten the end of the war. With the President of the United States it had hoped to attain this aim by negotiations. After the attempt to reach an understanding was answered by the enemy with the announcement of intensified war, the Imperial Government, if it desires in the higher sense to serve humanity and not to do a wrong against its own countrymen, must continue the battle forced on it anew for existence with all is weapons. It must, therefore, abandon the limitations which it has hitherto imposed on itself in the employment of its fighting weapons at sea. Trusting that the American people and its Government will not close their eyes to the reasons for this resolution and its necessity, the Imperial Government hopes that the United States will appreciate the new state of affairs from the high standpoint of impartiality, and will also on their part help to prevent further misery and a sacrifice of human lives which might be avoided. While I venture, as regards details of the projected war measures, to refer to the attached Memorandum, I venture at the same time to express the expectation that the American Government will warn American ships against entering the barred zones (Sperrgebiete) described in the Annexe and its subjects against entrusting passengers or goods to vessels trading with harbours in the barred zones. The Annexe defines these barred zones as areas in effect completely encircling the British Isles, and blocking the sea approaches to France and Italy. Certain facilities (if they can be so called) are suggested for American passenger traffic to Falmouth, and Dutch passenger traffic between Flushing and Southwold. (2) On the same day (January 31st) the German Imperial Chancellor explained to the Main Committee of the Reichstag why Germany had decided on unrestricted U-boat warfare." It had always been a matter of expediency; now the time had come to adopt it since Germany has more submarines and the Allied countries less coal and corn. Hindenburg (who is now in command of the German Army and Navy) had agreed to a policy of unrestricted U-boat warfare. (3) The United States reply was (as already said) to break off diplomatic relations with Germany on February 3rd. The reasons for this action were given in a speech made on that day to a Joint Session of Congress. Mr. Wilson recalled how, in May, 1916, after the sinking of the Sussex, Germany had given the following pledge: "In accordance with the general principles of visit, search, and destruction of merchant vessels, recognised by international law, such vessels, both within and without the area declared to be a naval war zone, shall not be sunk without warning and without the saving of human lives unless these ships attempt to escape or offer resistance." how It is true that this was clogged with a condition, which was, ever, immediately rejected by the U.S. Government, Germany making no protest. After reading the salient passages from the Note of January 3rd, 1917, Mr. Wilson said: : "I think you will agree with me in view of this declaration, which suddenly and without prior intimation of any kind, deliberately withdraws the solemn assurance given in the Imperial Government's Note of May 4th, 1916, that this Government has no alternative, consistent with the dignity and honour of the United States, but to take the course which in its Note of April 8th, 1916, it announced it would take in the event that the German Government did not declare and effect the abandonment of the methods of submarine warfare which it was then employing, and to which it now purposes again to resort. "I therefore directed the Secretary of State to announce to his Excellency the German Ambassador that all diplomatic relations between the United States and the German Empire are severed, and that the American Ambassador in Berlin will immediately be withdrawn, and, in accordance with this decision, to hand to his Excellency his passports. "Notwithstanding this unexpected action of the German Government, this sudden and deeply deplorable renunciation of its assurance given to this Government at one of the moments of most critical tension in the relations of the two Governments, I refuse to believe that it is the intention of the German authorities to do in fact what they have warned us they will feel at liberty to do. I cannot bring myself to believe that they will indeed pay no regard to the ancient friendship between their people and our own, or to the solemn obligations which have been exchanged between them, and destroy American ships and take the lives of American citizens in wilful prosecution of the ruthless naval programme they have announced their intention to adopt. Only actual overt acts on their part can make me believe this even now. "If this inveterate confidence on my part in the sobriety and prudent foresight of their purpose should unhappily prove unfounded, if American ships and American lives should in fact be sacrificed by their naval commanders, in heedless contravention of the just and reasonable understandings of international law and the obvious dictates of humanity, I shall take the liberty of coming again before Congress to ask that authority be given to me to use any means that may be necessary for the protection of our seamen and our people in the prosecution of their peaceful, legitimate errands on the high seas. "I can do nothing less. I take it for granted that all neutral Governments will take the same course. We do not desire any hostile conflict with the Imperial German Government. We are sincere friends of the German people and earnestly desire to remain at peace with the Government which speaks for them. We shall not believe that they are hostile to us unless and until we are obliged to believe it, and we purpose nothing more than reasonable defence of the undoubted rights of our people. We wish to serve no selfish ends. We seek merely to stand true, alike in thought and action, to the immemorial principles of our people which I have sought to express in my Address to the Senate only two weeks ago. We seek merely to vindicate our right to liberty, justice, and unmolested life. "These are bases of peace, not of war. God grant that we may not be challenged to defend them by acts of wilful injustice on the part of the Government of Germany."-(Washington, February 3rd, 1917.) THE BATTLE OF Sir Douglas Haig's despatch on the Battle of the Somme, dated December 23rd, 1916, was published on December 30th. The despatch follows in much detail the military operations on the Western Front in the summer of last year, and it tells us very frankly (1) the object of "the Push" which began on July 1st, and the extent to which these objects were achieved. It is a very long despatch, and, following our practice, we omit the descriptions of the fighting, and must content ourselves with only a severe summary of the British Commander-in-Chief's explanatory notes and comments. The principle of an offensive campaign during the summer of 1916 was decided on by the Allies; Sir Douglas Haig and General Joffre agreed about the date, and they laid their plans for the offensive with a threefold vbject: (1) to relieve the pressure of the Germans against Verdun; (2) to assist the Allies in other theatres of war by stopping the transfer of German troops from the Western Front; (3) to wear down the strength of the German forces. OUR PREPARATIONS. Sir Douglas Haig tells us something of the immense preparations that had to be made for the Push: "Vast stocks of ammunition and stores of all kinds had to be accumulated beforehand within a convenient distance of our front. To deal with these many miles of new railways-both standard and narrow-gauge and trench tramways were laid. All available roads were improved, many others were made, and long causeways were built over marshy valleys. Many additional dugouts had to be provided as shelter for the troops, for use as dressing stations for the wounded, and as magazines for storing ammunition, food, water, and engineering material. Scores of miles of deep communication trenches had to be dug, as well as trenches for telephone wires, assembly and assault trenches, and numerous gun emplacements and observation posts. Important mining operations were undertaken, and charges were laid at various points beneath the enemy's lines. Except in the river valleys, the existing supplies of water were hopelessly insufficient to meet the requirements of the numbers of men and horses to be concentrated in this area as the preparations for our offensive proceeded. To meet this difficulty many wells and borings were sunk, and over 100 pumping plants were installed. More than 120 miles of water mains were laid, and everything was got ready to ensure an adequate water supply as our troops advanced. Much of this preparatory work had to be done under very trying conditions, and was liable to constant interruption from the enemy's fire. The weather, on the whole, was bad, and the local accommodation totally insufficient for housing the troops employed, who, consequently, had to content themselves with such rough shelter as could be provided in the circumstances. All this labour, too, had to be carried out in addition to fighting, and to the everyday work of maintaining existing defences. It threw a very heavy strain on the troops, which was borne by them with a cheerfulness beyond all praise." THE PREPARATIONS OF THE ENEMY. The enemy, too, was not idle. Sir Douglas Haig says: |