N\.7A 
 
M25 , 
 
 opv 1 _ THE ^— = 
 
 War Horror 
 
 ITS LESSON TO AMERICA 
 
 A Plain Statement of Facts 
 
 NOT A CONTROVERSY 
 
 By RICHARD M. M c C A N N 
 
 Published by 
 
 WATERWAYS & COMMERCE 
 150 Nassau Street New York City 
 
 TEN CENTS PER COPY 
 
 Second Edition, Revised 
 
Jforeworb 
 
 War Would End If Money Kings Willed It 
 
 Having called to her aid South African Negroes, 
 the brown men of India and the browner men of 
 Japan, England is now resorting to every device to 
 embroil the people of the United States in the 
 Money Clique's inhuman attempt to crush Ger- 
 many and maintain the money control of the world. 
 In line with this, a partner of the banking house of 
 J. Pierpont Morgan & Co. has declared that Amer- 
 ica must help the Allies, and that declaration has 
 been followed by a propaganda in the daily news- 
 papers, calculated to inflame the people to action 
 against their own best interests. Of this news- 
 paper propaganda George Bernard Shaw writes : 
 
 "The appalling danger of a daily deluge of cheap 
 newspapers written by n,ameless men and women 
 whose scandalously 1ca\"*. payment is a guarantee of 
 their ignorance and servility to the financial de- 
 partment, controlled by a money class, which has 
 large direct interests in war as a method of raising 
 the price of money, the only commodity the money 
 class has to sell. Plutocracy makes for war be- 
 cause it offers prizes to plutocrats." 
 
 This book is written to warn the people of the 
 United States that they have at all times been mis- 
 led and are today being misled by an international 
 group of money dealers, whose machinations have 
 
 
1^. 
 
 
 f 
 
 brought about this terrible war and whose greed 
 for gold is causing its continuance. 
 
 Elsewhere, will be found a summary of the sev- 
 eral money conspiracies against the people success- 
 fully carried out by the money clique since the 
 Civil War of 1862. People must bear in mind that 
 these international money dealers do not profit ex- 
 travagantly from commercial conditions in time of 
 peace. At such times, money is easy and does not 
 sell at a premium. In times of commercial dis- 
 turbance — particularly in war — money becomes 
 dear and usurious interest can be extracted from 
 every branch of industry. The longer the war con- 
 tinues, therefore, the more the international money 
 controllers gain. An intelligent, aggressive public 
 opinion is the only power that can thwart the de- 
 signs of these money dealers. 
 
 Can such a public opinion be aroused in the 
 United States? It is to present these matters for 
 the consideration of the public that this book is 
 written. If people reason correctly, they will act 
 right. 
 
 The crushing of Germany — if that were possible 
 — would only mean a war between England and 
 Russia and France. Remember that France hopes 
 to regain Alsace and Lorraine and Russia covets 
 Constantinople and Baltic Prussia to get control of 
 the sea. England could not consent to placing such 
 power in Russia's hands and neither could she prof- 
 it by the advancement of France. The triumph of 
 the Allies means the continuation of the world war. 
 The triumph of Germany means the speedy estab- 
 lishment of world peace. 
 
 Richard M. McCann. 
 
America and the War 
 
 Defeat of Germany Would 
 Hurt Democracy 
 
 By RICHARD M. McCANN 
 
 Editor ''Waterways and Commerce" 
 
 Life is complex ; no human formula applies to all 
 its phases. Evolution, the motive power of events, 
 evades formulation. 
 
 Says Aeschylus : "It is an old saw that great 
 prosperity does not die childless, but brings insati- 
 able woe on a race. Wealth is no protection to a 
 man when he has spurned the altar of right. A 
 wretched impulse drives him on, the irresistible, 
 far-scheming child of folly." 
 
 These thoughts of the valiant soldier and inspired 
 poet who died 450 B. C. seem particularly pertinent 
 to a consideration of the causes that have involved 
 the great nations of Europe in war. We citizens 
 of the United States who represent in the persons 
 of our electorate natives or children of natives of 
 each warring nation should make an impartial 
 study of the combatants. 
 
 Russia, France and England are so vast in 
 wealth and population that they appear to encom- 
 pass all there is of power on the Globe. 
 
Germany is not as large in area as the State of 
 Texas ! Texas has 265,780 square miles, Germany 
 208,830 square miles. But there the comparison 
 ends. 
 
 And this little section of the world has been so 
 intensely worked that it rivals Enorland in the for- 
 eign trade of the world. 
 
 More than 80 per cent, of the German railroads 
 are owned by the Imperial or State government. 
 There are more than 2,000 miles of electric rail- 
 roads, 6,000 miles of navigable rivers, 1,500 miles 
 of canalized rivers and 1,500 miles of canals. The 
 Kaiser Wilhelm or Kiel Canal, connects the North 
 Sea with the Baltic and is 61 miles long, with an 
 average depth to permit the passage of the largest 
 ship. Its cost, upward of $70,000,000, has been 
 more than repaid by the protection it has afforded 
 the German navy. 
 
 These waterways of Germany are equipped with 
 the most improved mechanical devices for handling- 
 cargoes from big or little ships and are a means 
 of revenue to the people. The waterways of the 
 United States cost the people $100,000,000 annually 
 in taxes and' are of negligible benefit to commerce, 
 while the waterways of England are useless. 
 
 The railways of Germany pay a profit of $5,000 
 a mile — what of the railways of the United States? 
 
 The expenses of the empire of Germany are paid 
 by the profits from the postal service, the tele- 
 graphs, telephones and state railroads. 
 
 WHAT REVENUE DOES THE UNITED 
 STATES RECEIVE FROM THESE 
 SOURCES? 
 
So much for the material side of Germany. Let 
 us glance at the mental or educational side. 
 
 School instruction is obligatory on the whole peo- 
 ple, and the government is liberal to extravagance 
 in the promotion of primary and secondary edu- 
 cation. There are 25 universities with 70,000 stu- 
 dents. The leading universities are in Berlin, 
 Munich, Bonn, Leipsic, Halle, Heidelberg and 
 Breslau. There are also technical and polytechnic 
 schools, the Naval Academy at Kiel, Military Acad- 
 emies at Munich and Berlin, besides 60 schools of 
 navigation, 15 special military schools and 10 cadet 
 institutions. 
 
 And all of this in a territory less in area than 
 the State of Texas. Think of it ! There is a rea- 
 son — and that reason is: 
 
 The revenues of the German Empire have been 
 honestly expended. 
 
 The government of Germany is that of a consti- 
 tutional monarchy, the present empire dating from 
 1871. The supreme direction in military and politi- 
 cal affairs is vested in the King of Prussia, who in 
 this capacity bears the title "German Emperor," 
 The Kaiser! 
 
 He represents the nation internationally, and can 
 declare war, if defensive, and make peace, as well 
 as enter into treaties with other nations, and appoint 
 and receive ambassadors. 
 
 Remember, the Kaiser cannot declare offensive 
 war. A war of offense can only he declared by the 
 legislative authority which is vested in the Bundes- 
 rath, representing the individual German states, and 
 appointed by the governments of each state for the 
 session, and the Reichstag, representing the nation 
 
at large, and elected by universal suffrage, - for a 
 term of five years. 
 
 Surely this should satisfy the most skeptical that 
 the German people realize that the present war is 
 a defense of their liberties, of their commerce, yea, 
 of their hearthstones. 
 
 Compare the orchard and farm lands of Germany 
 with those of England. 
 
 A large part of the surface of England consists 
 of wide valleys and plains. It is well supplied with 
 rivers. Most of them carry their waters to the 
 North Sea. If we consider the drainage as a 
 whole, four principal river basins may be distin- 
 guished, those of the Thames, Wash and Humber 
 belonging to the German ocean and the Severn be- 
 longing to the Atlantic. 
 
 Notwithstanding these advantages, England ])ro- 
 duces nothing of value to the nation in the form 
 of crops. Her waterways have been practically 
 abandoned and her national energies devoted to 
 foreign trade aggradizement rather than domestic 
 development. Notwithstanding Magna Charta, 
 Cromwell and Home Rule for Ireland, men of 
 wealth have always ruled England. The acquisi- 
 tion of money — financial success has been the goal 
 of the nation since the days of the Armada. The 
 comfort and prosperity of the people have never 
 been the concern of her legislators. 
 
 It is evident that a race entirely occupied in legis- 
 lation enacted to seize the property or possessions 
 of other people and profit by their production, 
 rather than devote their energies to home devel- 
 opment, has but a rudimentary humanity, a narrow 
 ethics, a narrow religion. 
 
During thfe recent discussion in the United States 
 Senate on the Rivers and Harbors Bill, the Hon. 
 F, M. Simmons, of North Carolina, said : 
 
 ''Germany, probably, of all countries of the 
 world has developed its water transportation 
 to the highest state of perfection. Her rivers 
 are not deep, but their channels are in good 
 condition. Her terminal facilities and physical 
 railroad connections at stopping points are of 
 the best. If you will go to that country and 
 visit the Rhine you will see that stream full of 
 barges, from ten to twelve hundred ton capac- 
 ity each, six, eight, and even more of them 
 linked together and drawn up and down the 
 river with one powerful tug, with perfect ar- 
 rangements for loading and unloading, and with 
 economic physical connection with the railroads 
 which receive their cargoes and distribute them 
 into the interior. 
 
 "Our failure to take thought of these things 
 and to provide for them accounts in part for 
 the backwardness of water transportation in 
 this country. 
 
 "What has Germany accomplished as a re- 
 sult of building her waterways and linking them 
 together, and thus securing the cheapest pos- 
 sible freight rates for her manufacturers? Ger- 
 many, starting from a position of inferiority, 
 with a comparatively small foreign trade in the 
 markets of the non-manufacturing countries, 
 largely pre-empted and monopolized by other 
 nations, has gone forward with such strides, 
 with such rapid, unparalleled strides, in the 
 struggle for trade that in less than 50 years she 
 
 8 
 
has become probably the most dangerous com- 
 petitor for world's trade among the industrial 
 nations of the world. She has successfully met 
 the competition of England, for years recog- 
 nized as the mistress of the sea and the mon- 
 arch of world commerce. She has successfully 
 met the competition of France, Belgium, and of 
 our own country. Against all opposition she 
 has acquired a foothold here and there and 
 everywhere and expanded and grown until she 
 has forced herself to the front ranks of the 
 great industrial nations who in modern times 
 have waged war in all the ports of the world 
 for industrial supremacy. 
 
 "For years when we were considering tariff 
 legislation the competition of England was con- 
 stantly dinged into our ears. We were told that 
 we could not compete in our own markets with 
 English products in the absence of high pro- 
 tective duties. England was the country held 
 up to us as the country of greatest efficiency in 
 production, the country where things could be 
 made cheaper than anywhere else, and the 
 country whose competition we had most to fear, 
 both at home and abroad. In recent years when 
 we have been making tariff bills we have heard 
 less of England and more of Germany. Ger- 
 many, we are now told, is the country of great- 
 est efficiency in production ; the country of 
 cheapest production ; the country whose compe- 
 tition is most to be feared both at home and 
 abroad. 
 
 "Why has Germany in these fev/ years taken 
 the place of England as the nation of cheaper 
 
 9 
 
production? I answer, Mr. President, because 
 she has recognized, as the other nations have 
 not, the importance of cheap transportation, the 
 effect of cheap transportation upon the cost of 
 production ; recognized the frightful economic 
 waste in using rail transportation where water 
 transportation was equally as available in the 
 assembling and distribution of heavy and bulky 
 products of commerce, and by reducing the 
 cost of transportation to a minimum has been 
 enabled to produce and distribute her products 
 at a lesser cost than her competitors, especially 
 her European competitors. 
 
 "Mr. President, the English are a very con- 
 servative race of people. They are slow to 
 adopt innovations and to change their old meth- 
 ods and ways of doing things, but the English 
 people could not shut their eyes to the effect 
 upon Great Britain's trade of what was hap- 
 pening in Germany." 
 
 Senator Simmons truly said Great Britain did not 
 shut her eyes to what was happening in Germany. 
 Realizing that she could not compete with Germany 
 SHE DETERMINED TO DESTROY GER- 
 MANY AS SHE DESTROYED AMERICAN 
 SHIPPING BY SENDING FORTH THE 
 "ALABAMA" AND "SHENANDOAH" ON 
 THEIR VOYAGES OF DESTRUCTION. 
 
 THESE WAR CRUISERS SOUGHT OUT 
 PEACEFUL UNARMED SAILING SHIPS ON 
 THE OCEAN AND EVEN NEAR THE 
 SHORE, SHOT DOWN THE CREWS, LOOT- 
 ED THE CARGO OF GOLD OR PORTABLES 
 
 10 
 
OF VALUE AND THEN BURNED THE UN- 
 PROTECTED MERCHANTSHIP. 
 
 The United States has submitted to spoHation by 
 Great Britain because men of ''American birth and 
 identified with the nation's transportation system" 
 unlawfully combine with British capitalists to ex- 
 ploit the people. Great Britain has been unable to 
 make such a combination with men of German 
 birth identified with that nation's transportation 
 system and hence the war — just as England at- 
 tempted in 1812 to crush the United States is she 
 now attempting to crush Germany, but just as she 
 failed in 1812, so surely will she fail in 1914. 
 
 Unhappily the press of the United States is 
 dominated by English influence and the papers that 
 dealt fairly with Germany a few months ago now 
 reek with abuse of that great nation. This is the 
 more unaccountable because Great Britain has for 
 years systematically persisted in a publicity cam- 
 paign of everything American, particularly in South 
 America. 
 
 On January 7, 1913, testifying before the Com- 
 mittee on the Merchant Marine and Fisheries, of 
 the House of Representatives, Mr. Sidney Story, 
 of the Pan American Steamship Company, de- 
 clared : 
 
 **We find that our commercial rivals, the 
 English, are very aggressive in carrying on a 
 propaganda throughout the press. There is not 
 a day but what you take up the newspapers of 
 those countries and you will find a whole col- 
 umn devoted to Switzerland or Holland, or Bel- 
 gium, two columns to France, Italy, and Eng- 
 land, and to the United States possibly two or 
 
 11 
 
three small lines. Or if it is a paragraph or two 
 it refers to some objectionable item like divorce 
 cases in Nevada or lynchings — items of that 
 character. 
 
 "The cable service is in the hands of the 
 LLnglish, and the news service is in the hands 
 of the English, and all the news from North 
 America to South America is first censored in 
 England before it reaches South America, and 
 vice versa, the object being to keep the two 
 sections of the western hemisphere as much 
 apart as possible. We are pictured to the South 
 Americans as northern barbarians, to keep 
 away from us, and South Americans are pic- 
 tured hej^to us as a lot of revolutionists, so as 
 to keep our people from investing in that coun- 
 try." 
 England demands that the war go on because she 
 wants to saddle on France such a debt that will 
 prevent France from ever again being a lending 
 nation. England will take over the securities of 
 France at a discount of 40 per cent, and make that 
 nation for all time a borrowing nation. 
 
 England demands that the war go on hoping that 
 Russia will be able to crush Germany and remove 
 the only nation that prevents her from monopoliz- 
 ing the trade of the world. 
 
 France aiding and abetting England is commit- 
 ting national suicide. 
 
 The overthrow of Germany would mean the ruin 
 of the United States. 
 
 In September, 1913, Waterways and Commerce 
 called attention to the growth of Canada and its 
 menace to the national life of the United States, 
 
 12 
 
unless the United States be^an at once the building 
 of a merchant marine. Recently a merchant marine 
 measure was adopted by Cong^ress but that measure 
 7vas dictated by British Interests. 
 
 Surely the United States cannot hope for aid 
 from Great Britain in its competition with Canada! 
 
 As a nation the United States of late has been 
 servile to British interests. 
 
 It imposes a tax of $100,000,000 on the people 
 although there is a balance in the banks of $75,000,- 
 000 in favor of the g-overnment. 
 
 New York City is payin.s: the bankers $100,000,- 
 000 for obli.s:ations abroad that will not mature for 
 months. 
 
 The Banks of the United States show a deficit 
 of upward of $70,000,000, notwithstanding the fact 
 that they have the custody of $75,000,000 of gov- 
 ernment money — The People's Money. 
 
 The industries of the United States are prostrate. 
 Factories are either shut down entirely or working 
 on half time. Why? 
 
 Is it because the banks are interested — as lenders 
 —in English factories and do not desire to lose that 
 investment by reason of the American factories 
 taking away the trade of the foreign mills? 
 
 In 1907 American exports to Germany amounted 
 to $256,596,000; in 1912 they reached $306,959,000, 
 a gain of substantially $50,000,000. 
 
 Should the people of the United States permit 
 the few American capitalists who grow richer bv 
 reason of their nefarious partnership with English 
 finances, to alienate the friendship of a country as 
 great as Germany? Germany's only crime is that 
 under the benificent rule of the present Kaiser she 
 
 13 
 
has followed the principles laid down by the im- 
 mortal Washington and has declined to enter into 
 ''foreign entanglements." 
 
 The German Government under the Kaiser has 
 been most humane and considerate. Here is one 
 instance : 
 
 When the great tide of emigrants from Russia 
 began to pass through Germany to America, some 
 years ago, the German Government was compelled 
 to refuse ship passage to many emigres, who were 
 ill, deformed or otherwise undesirable. These un- 
 fortunates had made a long and expensive railway 
 journey and when rejected at the port as unde- 
 sirable they had to return by the same route. In 
 order to prevent this suffering the German govern- 
 ment designated a number of towns on the Russia^-* 
 frontier through which Russian emigrants were 
 permitted to pass. The German railway lines con- 
 structed and maintained buildings there for that 
 purpose, and appointed an agent at each place, and 
 these places were called control stations. These 
 control stations were established to inspect emi- 
 grants there instead of at the port of embarkation, 
 and thus save undesirable ones the tediousness and 
 expense of a long journey to the port and then back 
 to their homes. 
 
 England and Russia cared nothing for the suf- 
 ferings of the poor emigre. All they cared for was 
 the transportation money. But the great Kaiser has 
 a heart that beats responsive to that of the suffer- 
 ing Russian Jews and put his government to work 
 to ameliorate their condition. The establishment 
 of stations in Russia for the benefit of the sick and 
 needy was denounced by England and Russia and 
 
 14 
 
Belgium as an interference with another nation. 
 Truly it seems that abuse is the reward for the 
 lover of mankind from the Christ to the Kaiser. 
 
 "We look upon this world as one ^reat family," 
 said Daniel Webster, "born of the same flesh and 
 blood, and eventually to be governed by the same 
 laws ; and the sooner the nations of the earth can 
 feel and act upon this principle, the happier it will 
 be for them. What good would not the money now 
 do, which is annually wasted in the support of mil- 
 itary forces, employed for the savage purpose of 
 cutting each other's throats, could it be expended 
 in the support of schools, carrying out systems of 
 internal improvements, and promoting the cause of 
 science ! And what are high tarififs but fortifica- 
 tions and bands of custom-house officers but armies 
 created to plunder and make war between nation 
 and nation?" 
 
 "The fact that the controlling forces of society 
 are usually invisible does not subtract from their 
 economic basis. And as long as we can be kept in 
 ignorance of their nature, as long as the minds of 
 men can be directed to political and religious ques- 
 tions and away from the fundamental economic 
 fact, just so long will progress continue to be blind 
 and doubtful ; just so long will the human pilgrim- 
 age renew its circles of disappointment and dis- 
 aster. Until we understand and answer the ques- 
 tion of bread, until we deliberately equalise pro- 
 duction and distribution, until fraternity and free- 
 dom are changed from phrase to fact, the world 
 will continue to be a wilderness of wanton human 
 waste," writes George D. Herron. 
 
 The equalization of production and distribution 
 
 IS 
 
and the carrying out of a system of internal im- 
 provements, have been the accomplishment of the 
 Kaiser. Of all the rulers in history he alone has 
 made it his particular case to see that the money 
 derived by the o^overnment was devoted exclusively 
 to government use. Under his rule there has been 
 no ^raft in Germany. Even the banks have been 
 compelled to play fair with every form of industry, 
 and although Germany, not as lars:e an area as the 
 State of Texas, has maintained the g^reatest of 
 armies, an efficient navy and a wonderful merchant 
 marine, the people of Germany are the most pros- 
 perous on earth. 
 
 The government of Germany is in truth a g-ov- 
 ernment for the people. 
 
 The government of Eng^land is the bulwark be- 
 hind which hides the monev manipulators of the 
 world. Their thought is that money is all power- 
 ful. This thought was expressed by David Lloyd- 
 George, ChanceMor of the Exchecquer. replying on 
 Sept. 8 to a depiu.ation from municipalities wanting 
 aid. The Chancellor of the Exchecquer refused 
 the aid saying: 
 
 "We want every penny we can raise to help fight 
 the enemy. We must come out triumphant in this 
 struggle, and as finance is goin^ to pi" ) a very im- 
 portant part in it we must husband our resources. 
 We do not want a penny spent which is not abso- 
 lutely essential to relieve distress. In mv judgment 
 the last few hundred millions may win this war. 
 
 "The first hundred millions our enemy can stand 
 as well as we can, but the last they cannot, thank 
 God, and therefore T th'nk cash is going- to count 
 much more than we imag-ine." 
 
 16 
 
The materialistic Mr. George will probably learn 
 that a powerful personality gifted with spiritual 
 vision is more potent than money ! that the great 
 movements — the epoch making movements of man- 
 kind, are led by a man, not by money. Mahomet, 
 Alexander the Great, Julius Caesar, Charlemagne, 
 each fashioned the world, or a very large portion of 
 it, for long successive ages. One stands in awe of 
 the world-shaping influence which some single men 
 have exercised. It is a solemn, and it would be a 
 terrible thing to contemplate, if we did not believe 
 that a Mightier than man rules over all ; that those 
 mightiest, not less than the smallest, are m his 
 hands. Helpers or hinderers of his kingdom are 
 alike raised up by him to work out his plans, and to 
 bring about in the end by strange and diverse ways, 
 that kingdom which shall finally rule over all. 
 
 To the student of the growth and development of 
 Germany, there comes with the force of conviction, 
 the thought that William II. of Germany has been 
 specially called, to revive in man a belief in God 
 and to trust in His power and mercy. Indeed God 
 always has been the uppermost thought in the mind 
 of the Kaiser. 
 
 From boyhood he cultivated the spiritual side of 
 his nature assiduously, so that in the 55 years of his 
 life he has always been conscious of the presence of 
 the ever living God. In truth it may be said of 
 him that he walks with God. To no other ruler 
 over men, has God been such an actual entity, a 
 loving and loved Father. 
 
 Born physically frail, by sheer exercise of will he 
 overcame bodily defects to such an extent that in 
 early manhood, despite a partial paralysis of his 
 
 17 
 
left side, he became recognized as an expert swords- 
 man, a skilful horseman and a strong pedestrian. 
 
 William II. of Germany has stamped the imprint 
 of his personality upon his people. He has intelli- 
 gence supported by a courageous will, he has the 
 gift of knowing what is to be feared and what not 
 and in acting accordingly. Like the Kaiser the- 
 German people have grown from a nation of little 
 promise to a people of supreme power. 
 
 Germany has given to the world two great object 
 lessons. 
 
 The first is the folly of a people neglecting to be 
 ready for war. For centuries Germany placed more 
 importance on culture than on cannon. Did it earn 
 the respect of England by that course? 
 
 An English writer treating of the German nation 
 in 1815, said : 
 
 ''•Their conduct during the great war had shown 
 so slender an aptitude for self defense that the idea 
 of their attempting conquest was too absurd to be 
 entertained. Nor had their patriotism been of that 
 excitable kind which disposes a nation to incur risk 
 for the sake of glory. They had allowed themselves 
 to be tossed from one ruler to another as the fancy 
 of their conqueror might decide ; they had submitted 
 to seeing a horde of foreign officials stifling their 
 trade in order to forw^ard their designs, and loading 
 them with taxes to keep up the machinery for their 
 oppression." 
 
 To stifle trade and extort taxes ever has been and 
 always will be the reason for war. The second 
 object lesson that Germany has given to the world 
 is that an honest administration of the afifairs of a 
 people will make them prosperous notwithstanding 
 
 18 
 
an extraordinary expenditure for National defense. 
 These lessons should be learned by the people of 
 the United States. They were taught by the found- 
 ers of the Republic, but they have been dropped 
 from the National curriculum for more than half 
 a century. Germany alone of all the nations has 
 strictly adhered to the policies of Washington, of 
 Jefiferson, of Jackson and of Lincoln. 
 
 Said the Hon. Jacob H. Galling^er, United States 
 Senator from New Hampshire, in an address before 
 the United States Senate: 
 
 'The one Old World nation which has made 
 prodigious strides in foreign commerce of re- 
 - cent years, our ever vig^ilant and most form- 
 idable competitors, is the Empire of Germany, 
 a thoroughly protectionist nation like our own. 
 Until a quarter of a century ago, German sea 
 power was absolutely insignificant. The Em- 
 pire had a small war navy and a small and not 
 very prosperous or efficient merchant fleet. 
 
 **Not until Germany began to own and build 
 her own ships to carry her own trade did she 
 beg^in to be considered as a serious factor in 
 the commerce of the world. Her wonderful 
 maritime expansion has made her mercantile 
 expansion possible. The clear vision of the 
 great Kaiser first recognized that his country 
 must have ships in order to have commerce, 
 and that to have ships meant increased pros- 
 perity not only for the seaport towns, but for 
 every manufacturing village or a,gricultural dis- 
 trict producing^ anything that could be seld 
 abroad. German merchant tonnage that under 
 a 'free-ship' policy without State aid, increased 
 
 19 
 
only from 1,098,000 in 1873 to 1,270,000 in 
 1881, has, with State aid, ^rown to 3,393,000 
 in 1904, and German commerce has expanded 
 in almost like proportions." 
 And in all this trade expansion never was an un- 
 fair act done by Germany to any other nation. On 
 the contrary Germany was chosen as the subject 
 for special approbation at the Lake Mohawk Peace 
 Conference a little more than a year ago. 
 
 ENGLAND WILL GAIN 
 
 AT AMERICA'S COST 
 
 A recent issue of Die Woche, a widely circulated 
 German periodical, contains an article on ''Eng- 
 land's purpose in the current war," by Dr. Alfred 
 Zimmermann, now Assistant German Secretary of 
 State, who has for many years been prominent in 
 the councils of the German Foreign Office. Dr. 
 Zimmermann traces the development of England's 
 anti-German foreign policy, of which he says King 
 Edward was the father, while Sir Edward Grey 
 and Winston Churchill have in recent years been its 
 chief exponents. "It is significant," he says, "that 
 when a liberal government came into power it took 
 over from the Tories the two men most prominently 
 identified with the anti-German propaganda. 
 
 "Whoever has followed the activities of these 
 two men," Dr. Zimmermann continues, "could not 
 remain in doubt about England's intention of using 
 the first favorable opportunity to smash German 
 
 20 
 
power. The most widely circulated English news- 
 paper, which has long enjoyed the close confidence 
 of the British administrative leaders, declared very 
 cold bloodediy, days before England entered the 
 war, that England would be compelled to enter the 
 war upon the side of Russia and France for th. 
 sake of preserving the 'balance of power.' 
 
 "But in this war England is not only concerned 
 about grabbing Germany's colonies, destroying 
 Germany's fleet, wiping out Germany's trade and 
 weakening Germany's economic life. She is en- 
 visaging other advantages, advantages with regard 
 to which she is maintaining a discreet silence. 
 
 "For although the Russo-Japanese war weakened 
 the Russian giant materially, and thereby assured 
 England a greater degree of security in her Asiatic 
 possessions, it can now count upon an even more 
 violent shaking for the colossus of the North. There 
 is little 'doubt about England's quiet satisfaction at 
 every Russian defeat. For every weakening of 
 Russia accrues to England's advantage in India and 
 for her political schemes in East Asia. 
 
 "United States Will Suffer Severely as Re- 
 sult OF War.'' 
 "The far-sighted English politician promises him- 
 self even greater advantages than the war offers 
 with respect to Russia from its effects upon British 
 relations with the United States. This latter coun- 
 try, directly and indirectly, is bound to suffer most 
 seriously as a result of this war. The United States 
 is the third commercial nation of the world. British 
 trade totals $7,000,000,000 annually. Germany's 
 totals $5,250,000,000, and that of the United States 
 
 21 
 
aiuuuntsto $4,250,000,000. Nearly half the foreign 
 trade of the United States is carried on with 
 Europe. Besides, England, Germany, France, Hol- 
 land and Belgium are America's best customers, and 
 furnishers, and they serve this function in even 
 larger measure than appears from the import and 
 export statistics. 
 
 *'A good part of the merchandise which England 
 imports from America is carried to the European 
 mainland. Similarly, England carries much Euro- 
 pean merchandise to the United States. Under these 
 circumstances it is readily apparent that the United 
 States is bound to suffer seriously not only for the 
 moment, but in the future as well, particularly if 
 England achieves its object of destroying the Ger- 
 man and French shipping trade with the United 
 States and other over-sea countries. According to 
 the most recent statistics, only 10 per cent, of all 
 the freight handled in American harbors was car- 
 ried in American bottoms. More than two-thirds 
 of all the shipping in American ports already carries 
 the British flag. Whereas, the total registered ton- 
 nage of the ships entering American ports is 24,- 
 500,000, the German share of this amounted to only 
 4,5000,000, the French and Dutch to only 1,000,000 
 tons each. 
 
 "If England's policy of securing a monopoly of 
 American shipping is successful, it means a serious 
 economic disadvantage, as well as a political danger 
 for the United States. The British would be the. 
 arbiters of over-sea rates, and would be in a posi- 
 tion to prescribe to the United States the conditions 
 under which it might do business with the outside 
 world. Already the cutting off of the United States 
 
 22 
 
from cable connection with Germany has worked a 
 serious disadvantage to the Americans. Competi- 
 tion has been ehminated, Great Britain's influence 
 upon the world has been enormously increased. 
 
 England Counts on Gaining Other Advantages 
 AT America's Expense. 
 
 ''England, moreover, is counting upon obtaining 
 other advantages at America's expense. For a long 
 time they have begrudged Uncle Sam an influence 
 in the Far East which they have found inconvenient, 
 No less irritating have they found the stand which 
 the United States has taken in matters affecting 
 Central and South America. England's indignation 
 at America's attitude in the Panama and Mexican 
 question is an open secret. The completion of the 
 Panama Canal will only mitigate against England's 
 position on these issues, as well as in the Far East. 
 Already diverse matters connected with the Panama 
 Canal have raised issues between British and Amer- 
 ican diplomacy. There was always the danger that 
 these differences might lead to more serious mis- 
 understandings. 
 
 "Therefore, England is altogether justified in as- 
 suming that in all these matters also a successful 
 issue of the war and the consequent readjustment 
 of the European situation in England's favor, will 
 leave her in a much better position to achieve her 
 ends. For then, with its chief European opponent 
 out of action, England can turn its full strength 
 against the United States without having to fear a 
 rear attack. 
 
 "The world was astonished ten years ago, when 
 England permitted France — a country with which it 
 
 23 
 
had warred for centuries, and against which it Iiad 
 struck -at every possible opportunity — to take over 
 Morocco and the key to Gibraltar. There was nu 
 less astonishment when Christian England, a coun- 
 try which has ever sounded the call to arms against 
 the unbeliever, entered into an alliance with heathen 
 Japan. The far-reaching plans which motivated 
 these steps have been understood by very few people 
 outside of England. German public opinion paid 
 scant attention to the warnings uttered against the 
 dangerous plans of Edward VIL Even now the 
 world's opinion as to British intentions is very much 
 divided. Yet no one who has carefully observed 
 British policy for the past three decades could doubi 
 that England is today far less concerned about the 
 weal or woe of France, Russia or Servia than about 
 her own future position as a world power. The 
 United States will play the most important role in 
 this connection. Consideration as to her prospec- 
 tive position with reference to the United States 
 may have had much to do with leading England 
 into her present attitude. Let us hope that Ameri- 
 cans will be more far-sighted than was the German 
 public, and that they will take measures to meet the 
 situation." 
 
 German Street Car Management. 
 
 Two Cents the Average Fare, Four Cents the 
 Maximum in Dresden. 
 
 Twenty-three of the largest German cities are 
 showing thrift in the management of their transit 
 lines by getting the most good out of their expendi- 
 
 24 
 
ture for the convenience, comfort and prosperity of 
 the public, both in the cities and suburbs. 
 
 In BerHn the street car service is excellent. There 
 are more seats than passengers at almost any hour 
 of the day. Not more than seven persons are ever 
 permitted to stand. In that city, where the elevated 
 line is under private management, the service has 
 been brought up to a high standard and compares 
 well with the surface lines run by the municipality. 
 In the German capital the right of way of the ele- 
 vated roads has been planted with grass and flowers, 
 and fitted with benches and other conveniences. 
 All through the crowded city the elevated roads 
 make lines of green which are free for the use of 
 the public. The stations are inclosed from the 
 weather and are beautiful in design. The elevated 
 is called the "umbrella of BerHn" because it affords 
 shelter from rain and sun. Both surface and ele- 
 vated lines are so constructed that there is a mini- 
 mum of noise. The average fare is 23^ cents. 
 
 Dresden is typical of the number of devices for 
 convenience of passengers. A stranger can easily 
 use the street railways without knowing the Ger- 
 man language or the street arrangement. Each of 
 the eighteen lines is designated by a number which 
 has a conspicuous place on the front of the car. 
 The cars with the even-numbered routes are painted 
 red and the odd-numbered route cars are painted 
 yellow. The cars make their stops in the middle of 
 blocks, so that they do not interfere with traffic at 
 street corners. Inside the car on one side is a map 
 showing the route of the car lines, together with 
 their numbers, and on the other side of the car is 
 a map showing the various zones into which the city 
 
 25 
 
is divided. The cars are supplied with clocks which 
 are advertisements of their makers. Two cents is 
 the average fare for a sino^le ride and 4 cents is the 
 maximum fare. 
 
 Through wise, thrifty expenditures these German 
 cities have eliminated the strai)-hanging which is 
 prevalent in the large American cities. The public 
 travel in comfort at about half the price Americans 
 usually pay. They have placed the transportation 
 of the public on the same basis as their health, 
 police and fire protection. Their employes are paid 
 better wages than in the past. 
 
 These cities are building for ])ermanence, and in- 
 dustry is encouraged by their cheap fares. It is 
 demonstrated tliat with these low rates and generous 
 transfers the congested conditions, high rents and 
 unsanitary, poor housing in the overcrowded cities 
 is already in some degree diminished. Suburbs are 
 developed by cheap commutation, and the working 
 classes are allured to the surrounding country and 
 its valuable land for gardens. — Idaho Statesman. 
 
 British Proposals Forced Invasion of 
 
 Belgium, Says Diplomat 
 
 German Charge d'Affaires, Tlaniel von Haim- 
 hausen, maintains that the reports from London 
 seek to give the erroneous impression that Germany 
 precipitated the war wholly because German troops 
 had advanced into Belgium, whereas, he declares, 
 the British Foreign Oflfice had previously laid down 
 terms to Germany which would have had the effect 
 
 26 
 
of restraining the German navy from operating 
 against Russia in the Bahic — the most natural 
 waterway leading to the Russian i)Ossessions — or 
 from operating against France along the north 
 coast of that country, which was the most natural 
 and proximate point for the German naval forces 
 to operate. 
 
 Thus, before the Belgian issue arose, England, 
 Mr. von Haimhausen contends, had sought to com- 
 pel Germany to hold its navy inactive at the very 
 points where it could be most effective ; to reduce 
 it to a state of comparative inaction in upholding 
 such position as the German nation might determine 
 upon. 
 
 With Malice Toward None 
 
 War is hostility between sovereign nations, that, 
 having no superior power to which to appeal for 
 the settlement of their disputes, have recourse to 
 force and arms. War is either offensive or de- 
 fensive. The power that strikes the hrst blow, 
 however, is not always the original author of the 
 hostile measures, since the seeming assailant is 
 often forced into his position by the violation of his 
 rights or the menacing posture of the other parties. 
 In the main, the judgments of mankind have pro- 
 nounced in favor of a defensive war. 
 
 Germany today is conducting a defensive war. 
 A dispassionate review of the record will disclose 
 the fact that England demanded of Germany, as 
 the price of non-interference, that Germany render 
 herself helpless should the quarreling European 
 powers invade her territory in waging battle. This 
 
 27 
 
Germany declined to do and as a consequence is 
 the object of abuse by an English nispired Ameri- 
 can Press. 
 
 The right thinking patriotic American prays for 
 German success because Germany stands for Jus- 
 tice, and Justice should prevail though the Heavens 
 fall. 
 
 When the historian of tomorrow pens the nar- 
 rative of the war of today, his verdict will be that 
 it was caused by the most sordid of motives — 
 Money, Gain, Greed. 
 
 Not the faintest tinge of patriotism will be found 
 in England's action. 
 
 I-'.ngland, that egged on Russia and France to 
 send the flower of their youth to death while she 
 sent brown Hindus and South African blacks as 
 substitutes for Britons 1 
 
 When Napoleon Bonaparte was sent to St. 
 Helena one hundred years ago, the money monopo- 
 lists took up their headquarters in London. There 
 they laid, their plans for world control. Europe 
 was at their mercy and the only obstacle to their 
 success was the United States, which at that time 
 had a Merchant Marine and the prospect of an in- 
 dependent Financial System. They induced the 
 Congress of the United States to enact legislation 
 that took exchange from the United States and 
 made it necessary for our merchants to trade with 
 foreign nations via London and to destroy the 
 American Merchant Marine. 
 
 Noble Americans who planned this year to cele- 
 brate in London One Hundred Years of Peace at 
 such a price! 
 
 The hundred years of peace was a peace only 
 
 28 
 
between the money monopolists of England and 
 the United States. Wars were everywhere over 
 the ^lobe and their termination meant only a few 
 more millionaires in London and New York. For 
 seventy odd years the money monopolists were so 
 successful that they felt their rei^n of loot and 
 slaughter would never end. They laughed aloud 
 when Lincoln proclaimed that a slavery worse than 
 black slavery was menacing mankind — Money 
 Slavery, Lincoln called it — but the people did not 
 understand. 
 
 Do they understand it now, when hundreds of 
 thousands of strong men in our great cities have 
 been for years without employment? 
 
 They do not understand. If they understood a 
 war against Germany would be impossible. 
 
 The money slave masters of which Lincoln 
 warned are in control and are lashing mankind into 
 degradation and death. But there has come for 
 our liberation another Lincoln and he is WilHam 
 II. of Germany — 
 
 The Kaiser! 
 
 Russian Autocracy and Its Bloodbath 
 
 Thomas C. Hall, D.D. 
 Blinded by fear of German invasion and jealous 
 of the growing sea power on the North, England 
 has herself lost sight of the real issue of the war, 
 and a docile American public has out-Englanded 
 England. The existence of a Russian autocrary 
 was at stake, and Europe has been plunged into war 
 
 29 
 
to save that wretched autocracy. Were by any 
 chance the AlHes to win, England would within a 
 short time have conscription and be seeking^ an alH- 
 ance with Germany on ahiiost any terms to save her 
 Eastern interests from Russia. For this autocracy 
 is a plundering Asiatic anachronism in Europe. It 
 can only live on war and conquest. 
 
 Russia is peaceful. The Russian peasant has no 
 interest in war. They fight well, like all peasants, 
 when once at work. But as a simple matter of fact 
 many of the Russian prisoners in Gottingen thought 
 they had been fighting against Fraud ! 
 ^ It will be the greatest blessing to all Europe and 
 especially England should Russia be soundly beaten 
 and the Baltic Provinces, the Polish Provinces, Bes- 
 sarabia and the Caucausus fall away, and a free 
 Russia enter at last upon the industrial and agrarian 
 reforms that can alone save her. 
 
 Nothing would be more desperately evil for the 
 Balkan States than the Hegemony of Russia. It 
 would mean a militarism with a vengeance. It 
 would sound the doom of all religious freedom and 
 social aspiration. It would force the mystic super- 
 stitions, the autocracy knows so well to prostitute to 
 political purpose upon all the Balkan races. Tolstoy 
 said the autocracy had itself ceased to believe in 
 these mystic superstitions, but simply forced them 
 on the people for its own purpose. Whether this be 
 so or not these superstitions are a principal tool, and 
 religious intolerance in Russia makes even Turkish 
 fanaticism a haven of refuge. Even Panslavism is 
 only a cloak for the ambitions of the autocracy, and 
 sad would be the day for Europe and Asia were this 
 
 30 
 
war to give this corrupt and degenerate political 
 power a new lease of life. 
 
 Even Russia's gold and Russia's industrial 
 plants will be safer in the hands of a defeated but 
 reconstructed Russia than in the keeping of a tri- 
 umphant court with a victorious army absolutely at 
 its disposal. 
 
 Germany's Unequalled Record 
 
 By Richard M. McCann 
 Editor "Waterivays and Commerce" 
 
 "An eternal union for the protection of the realm 
 and the care and welfare of the German people." 
 
 These are the words of the Constitution of the 
 German Empire defining its character and since the 
 adoption of that Constitution, April 16, 1871, the 
 rulers of Germany have sedulously and honestly 
 endeavored to make the people virtuous, forehanded 
 and prosperous. 
 
 The founders of the United States formulated 
 under the Constitution a scheme of government 
 which if adhered to would have made the States 
 of North America the most prosperous and power- 
 ful nation that ever inhabited the Earth. For over 
 forty years under that Constitution, the United 
 States flourished as did no other nation in the his- 
 tory of mankind ; but the failure on the part of the 
 rulers to obey the Constitution has made the United 
 States today a dependent nation. The rulers of 
 Germany, on the contrary, have scrupulously 
 obeyed their Constitution, and as a result the pros- 
 
 31 
 
perity of Germany has been unequalled in the an- 
 nals of nations. 
 
 "The care and welfare of the German people" is 
 one of the objects of the Empire's Constitution. 
 Although embracing only one-fifteenth of the area 
 of Europe, Germany in 1912 produced one-seventh 
 of its wheat, one-fifth of its oats, one-seventh of 
 its barley, one-fourth of its rye and one-third of its 
 })otatoes. If the farmers of the United States had 
 as much wheat per acre, as did the German farm- 
 ers, the wheat crop of the United States would 
 have been two and one-half billion bushels instead 
 of three-quarters of a billion bushels. More than 
 fifty per cent, of the farm area of the United States 
 is unimproved while only nine per cent, of the 
 available area in Germany is unused. 
 
 In the past twenty-five years the foreign trade 
 of Germany increased three hundred per cent., 
 while that of Great Britain increased one hundred 
 per cent. On January 1, 1913, there were 4,850 
 ships of 3.143,000 tons cargo capacity flying^ the 
 German flag and employing 78.000 sailors. Allow- 
 ing 10 cents a net ton for the operation of a ship, 
 Germany's merchant marine approximated an ex- 
 penditure of more than a third of a million dollars 
 a day — and the expenditure inured to the benefit 
 of the world, the United States included. 
 
 The German railroads have been laid out with a 
 view to their use by the army. To illustrate : A 
 small town in England, France, Russia or the 
 United States, has a small railway station with a 
 single side track. The same sized town in Germany 
 has a big station with a score of sidings and facili- 
 ties for entraining or detraining an army corps. 
 
 32 
 
Every railway station has been planned to handle 
 soldiers and munitions of war. 
 
 In 1887, the Kaiser in a speech declared, "Nep- 
 tune with the Trident is the symbol for us now that 
 we have new tasks to fulfill since the Empire has 
 been welded together. Everywhere there are Ger- 
 man citizens to protect, everywhere German honor 
 to maintain ; that Trident must be in our fist." 
 
 And in 1903, in a speech at Bremen he said : 
 'T want to do everything possible to let bayonets 
 and cannon rest; but at the same time to keep our 
 bayonets sharp and our cannon ready, so that envy 
 and grief shall not disturb us in tending our gar- 
 dens or building pur beautiful houses." 
 
 That speech was extored from the Kaiser be- 
 cause of the criticisms launched by England at Ger- 
 many on account of the Naval bill passed by the 
 Reichstag in 1900 calling for a fleet of such strength 
 that "a war with the mightiest naval power would 
 involve risks threatening the supremacy of that 
 power." 
 
 Nothing has been left undone to make the Ger- 
 man navy powerful and destructive, especially iti 
 defense. The Zeppelins have been designed for co- 
 operation with their dreadnoughts, being heavily 
 armed with heavy calibre, rapid fire guns, above and 
 below the gas bags, mounted so that they can cover 
 every possible means of approach, fore, aft, broad- 
 side. The cruising radius of the Zeppelins is 2,400 
 miles and their operating height 12,000 feet, an al- 
 titude beyond the range of any surface guns. 
 
 The care and welfare of the people of Germany 
 has been as faithfully looked after by the Rulers as 
 have the more eye-attracting afifairs of state, and 
 
 33 
 
this care and welfare work extends to the most 
 lowly : For instance : 
 
 When a domestic servant reaches the age of sev- 
 enty she is retired with a pension for life earned by 
 the insurance she has paid each week in the past. 
 Less than two per cent, of the wage earners of 
 Germany are out of employment. In England and 
 in the United States the unemployed exceed ten 
 per cent. In other words, out of every one hun- 
 dred men in the United States or England more 
 than ten are defective — defective mentally or physi- 
 cally, or both. In Germany, only two per cent, are 
 defective, because the record of unemployed is 
 really a record of defectives. It follows therefore 
 that the system of education and rearing of men 
 and women in Germany is the better system because 
 its results are better. 
 
 Germany has a system of compulsory savings 
 banks. An unmarried man must deposit ten per 
 cent, of his wages until the deposits aggregate $500. 
 Then the deposits may cease, but the $500 thus 
 saved can only be used for the purpose of buying 
 a home or furnishing one. The married man must 
 deposit five per cent, of his wages until he has set 
 aside $500 which can only be used for the purpose 
 of furnishing a home or buying one. Because of 
 this beneficent law a young man cannot spend all 
 his earnings in the saloon or the billiard parlor nor 
 can the young married man neglect his wife and 
 home. Then again, as six per cent, interest is paid 
 on these deposits the value of money is taught in 
 an impressive manner and individual as well as 
 family happiness is secure. 
 
 How this works out for the benefit of the nation 
 
 34 
 
is shown by a comparison of the savings bank ac- 
 counts in Germany and in Great Britain. 
 
 Saving^s Banks Savings Banks 
 
 Deposits in Deposits in 
 
 Germany Great Britain 
 
 1880 $653,450,000 $388,605,420 
 
 1890 1,284,325,000 556,426,795 
 
 1900 2,209,645,000 935,027,800 
 
 1911 4,500,000,000 1,109,514,200 
 
 The foregoing table shows that from 1880 to 
 1911 the German people have placed $3,800,000,000 
 and the British people have placed only $6,950,000 
 into the savings banks, while between 1900 and 1911 
 the German people have placed $2,295,000,000 and 
 the British people only $9,500,000 into the savings 
 banks. During these eleven years the German sav- 
 ings banks deposits have grown more than eleven 
 times as quickly as the British savings banks de- 
 posits. It is worth noting that more than $3,500,- 
 000,000 of the German savings banks deposits con- 
 sist of small sums which have been put into these 
 banks by people belonging to the working class. 
 
 The foregoing should suffice to show that Ger- 
 many's abounding prosperity is largely due to hu- 
 mane conditions which the far-sightedness of the 
 Kaiser have created. Through the short-sighted- 
 ness of English administrations these conditions 
 have not obtained in the British Isles. 
 
 The one particular battle which the Kaiser has 
 personally waged has been to keep the people from 
 forgetting Spartan simplicity while growing in 
 wealth. The officers in certain regiments of the 
 
 35 
 
army some years ago attempted to outdo each other 
 in offering the Kaiser entertainment on the occasion 
 of his visits. When the Kaiser learned this he is- 
 sued an order saying that an elaborate menu would 
 be offensive to him and that he desired only the 
 plainest fare. 
 
 The discipline of self-denial is practiced in Ger- 
 many. When Von Bulow in the Reichstag asked 
 all Germany to retrench, the Kaiser set the ex- 
 ample by ctitting off $5,000,000 a year from the ad- 
 ditional funds voted to maintain the fifty-four pal- 
 aces throughout the Empire. These palaces are 
 maintained so that all Germans will realize that 
 each locality is the special care of the Emperor and 
 that no one is favored above another. 
 
 The history of the twenty-six states which con- 
 stitute the present German Empire is a record of 
 wars against Russia, France and Poland. The 
 Thirty Years' War in the first half of the 17th cen- 
 tury reduced the population of Germany from 20,- 
 000,000 to 6,000,000, but it gave Europe religious 
 freedom. 
 
 • During the 18th century, Austria attempted to 
 stop the growth of Germany and her free institu- 
 tion but the military genius of Frederick the Great 
 made Prussia foremost among European powers. 
 These wars (the Austro Succession, 1741-48, and 
 the Seven Years' War. 1756-1763) cost the lives 
 of 1,000.000 men. In Prussia alone, 14,500 houses 
 were burned. 
 
 Under the treaty of Vienna, the German states 
 were reconstructed into a confederation of which 
 Austria received the Presidency. Then Prussia 
 proposed a plan of unification of the German states 
 
 36 
 
with herself as the center of the union. There- 
 upon the Seven Weeks' War broke out. Bismarck 
 formed an alHance with Italy under which Russia 
 undertook not to make peace until Austria had sur- 
 rendered Venice to Italy. A series of Prussian vic- 
 tories ending with Sadowa resulted in the Peace of 
 Prague. 
 
 And Italy has her Venice today. 
 
 Remember this, ye Italians! 
 
 Shortly thereafter there was a vacancy in the 
 Spanish throne, which was offered to Leopold of 
 Hohenzollern. He refused it, but France, desiring 
 to clip the wings of the Prussian Eagle, demanded 
 that Germany give a pledge that no German prince 
 should ever aspire to the Spanish throne. Germany 
 declined to make such a promise and the Franco- 
 Prussian War followed. 
 
 Like France, England today, aiming to cripple 
 Germany, demanded that Germany promise not to 
 operate its naval fleet in the Baltic against Russia 
 or against France along the North Coast of that 
 country. The war of the Allies is now on and 
 judging by the past the future will certainly show: 
 
 ''Deutschland — Deutschland Uber Alles." 
 
 State Owned Business 
 
 The Government ownership of public utilities in 
 Germany has reached remarkable proportions. 
 This ownership is not only exercised by the Im- 
 perial Government, but by the State Governments 
 and by the municipalities. In 1911 the Imperial 
 Government and the Governments of the German 
 
 37 
 
States took protits from the various businesses con- 
 ducted by them of $282,749,224. listimatin^ the 
 capital vaUie at a 4 per cent, ratio, the vakie of the 
 productive State-owned {properties is $7,068,729,- 
 000. And the Governments continue to follow a 
 policy of fresh acquisitions, says Mr. Roberts in his 
 book, "Monarchical Socialism." 
 
 It is declared that in the year under discussion — 
 1911 — about one-quarter of all the expenses of the 
 State and Imperial Governments for the army, the 
 navy, and for all other purposes were paid out of 
 the net profits on Government business. No to- 
 bacco, spirit or match monopolies are among the 
 undertakings. Besides the productive ownerships of 
 the Empire and of the individual States, the cities, 
 on their own account, have gone deeply into owner- 
 ship of street railways, gas, electricity, water works, 
 slaughter houses, market halls, cold storage, canals 
 and v/harves. Mr. Roberts calls attention to the 
 fact that the republics among the States of the Em- 
 pire are far more backward in communal ownershij) 
 than the monarchies. 
 
 Of Government-owned properties, the farms are 
 worth $198,000,000; the forests, $730,000,000; 
 mines, $129,000,000; railways, $4,757,000,000; tele- 
 graphs, telephones, express and mails, $695,000,000, 
 and other works, $435,000,000. Upon no depart- 
 ment do any of the State Governments lose much 
 except upon steamers. 
 
 Much of the trend of public ownership in Ger- 
 many may be traced to Bismarck, who declared that 
 it was the duty of the State to undertake public 
 works that men who desire might work. In 1884 
 he laid down the doctrine that if a man comes be- 
 
 38 
 
fore his fellow citizens and says, "I am healthy, I 
 desire to work, but can find no work," he is en- 
 titled to add, "Give me work," and the State is 
 baund to ^ive him work. There is no hostility to 
 trusts, and it has been authoritatively stated that 
 "economic Germany is under the absolute rule of 
 half a hundred men." 
 
 Operations of Foreign Exchange 
 
 The most commonly used bills of Exchange are 
 issued in the currency of England, France and 
 Germany; that is, in pounds sterling, francs and 
 reichsmarks. Quotations, which look complicated 
 and unintelligible, are nothing of the sort. The 
 quotation of pounds sterling, for example, is, say, 
 4.90. All that means is that one English pound is 
 worth $4.90 in American money. Francs are 
 quoted in French money. When the quotation 
 reads 5.15, the explanation is that $1 United States 
 money will buy 5 15-100 francs, or 5 francs 15 
 centimes. A quotation for reichmarks of 95 indi- 
 cates that 95 cents will purchase 4 reichsmarks. A 
 movement in pounds sterling from 4.90 to 4.95, or 
 a movement in reichsmarks from 95 to 96, is ob- 
 viously an upward movement, but when francs go 
 from 5.15 to 5.18 the market is going down, because 
 your dollar will buy more French money, which is 
 becoming cheaper. 
 
 The price of foreign exchange is what regulates 
 gold movements. Because London is the financial 
 capital of the world, the trend of the rate for 
 pounds sterling is what American bankers watch. 
 
 39 
 
The British pound, when it is full weight, has a 
 gold value in American money of $4,86^. That is 
 called the parity of exchange. American merchants 
 who buy goods abroad as a general rule make their 
 payments through London and in English money. 
 They buy pounds for this purpose. When they can 
 buy pounds at the parity of exchange, or up to I3/2 
 cents to 2 cents higher, they do so. But when the 
 price of pounds goes above that limit, it is cheaper 
 to take American gold and send that over. Here is 
 why that is done : 
 
 As stated, an English pound of full weight is 
 worth at a United States mint, $4.86^. Naturally, 
 a merchant cannot afford to pay much above this 
 price for his pounds. If the price is too high he 
 can buy gold in this country and send that. But 
 if he does the operation will cost him something. 
 There is insurance to be paid and there is the loss 
 of the use of the money for the interval in which 
 it is being transported across the Atlantic. Also, 
 there is the loss in the weight, which means the 
 value, of the gold by abrasion. Gold is soft and 
 the action of the waves, causing the gold to jounce 
 around, rubs off part of it. AH this counts and 
 experts have estimated that these necessary charges 
 amount to about one and one-half cents to the 
 pound when the shipment is in gold bars, and to 
 something more than two cents a pound when gold 
 coin is used. The reason for the difference between 
 bars and coin is that gold bars usually are worth 
 between $300 and $450 each, while gold coin is 
 generally sent in denominations of $10 and $20. A 
 bar has six surfaces exposed to abrasion, while a 
 coin has only two and the edges, but in a shipment 
 
 40 
 
of $1,000,000 in bars averaging $400 each, there 
 would be only 2,500 bars, wiSi 15,000 surfaces, 
 while $1,000,000 in $20 gold pieces would contain 
 50,000 coins and 100,000 surfaces, not including the 
 edges. So the coin loses more than the bars and 
 the cost of shipping is higher. 
 
 With these transportation expenses to be reck- 
 oned with, the price of steding exchange must go 
 one and one-half to two cents above the parity of 
 exchange before gold is sent out of the country. 
 In other words, it must be in the neighborhood of 
 4.88 to 4.88>^. That is what is called the nominal 
 export point of exchange. When the rate goes 
 down to 4.84 3<2 bankers say that the nominal im- 
 port price has been reached and gold imports may 
 be expected, because the rule works as well one 
 way as the other. What causes the rate to advance 
 is that there are more American debts to be settled 
 abroad than there are European debts to be settled 
 with us. When the situation is reversed, and Eu- 
 rope owes us more than we owe her, then the rate 
 goes down, and if it goes down enough Europe 
 has to send us gold. But Europe has several ad- 
 vantages which we do not possess. There are semi- 
 governmental banks which, while they cannot oper- 
 ate against great international movements, can 
 when the proposition is fairly close, swing the bal- 
 ance in favor of their own countries. Also, several 
 countries impose export taxes on gold, which prac- 
 tically makes it impossible to get the metal away 
 from them when they want to hold it. The United 
 States, under the Constitution, cannot impose any 
 export tax. 
 
 In the financial district— Wall Street— as it is 
 
 41 
 
generally referred to, the foreign exchange brokers 
 have their own particular section. They congregate 
 around the corner of Wall and William streets, 
 where, in obedience to the laws of affinity, all the 
 banks and the brokers who deal in this form of 
 financial paper send their representatives. Just as 
 little is known about the workings of the Foreign 
 Exchange market by the average person, so is the 
 amount of general information regarding the physi- 
 cal manifestations of the market limited. The 
 Stock Exchange and the Broad Street curb, and of 
 late the New Street curb, are widely known, but 
 the foreign exchange market down in William 
 street is so quiet, outwardly, that few are ever at- 
 tracted by it, even though they pass the little group 
 of brokers every day. 
 
 These men deal in millions of dollars worth of 
 international credit every day when business is 
 brisk. The unit of trade is 10,000 pounds, of $50,- 
 000, but bills for ten times this size are not un- 
 common. 
 
 British pounds sterling, worth $4.86^ in gold 
 each, sold during August at as much as $7, and 
 francs, which are worth in gold 19 3-10 cents each, 
 sold at three for a dollar, or the equivalent of 33 1-3 
 cents each. 
 
 Sir George Paish, who for years has been edi- 
 tor of the London Statist, and is now the official 
 adviser to the Chancellor of the Exchequer, has fig- 
 ured prominently in the news concerning the recent 
 troubles in the foreign exchange market. Sir 
 George is now in this country as a representative of 
 the British Government and London bankers gen- 
 erally, and it is believed that the results of his con- 
 
 42 
 
fereiices with the nienihcrs of the Federal Reserve 
 Board, collectively, and with the Secretary of the 
 Treasury, as well as with many prominent New 
 York bankers, will do much to clear up a situation 
 that has been unparalleled in financial history. 
 
 The European war has ])laced England perilously 
 near bankruptcy, but its representative, Sir George 
 Paish, has been sufficiently adroit to make the 
 American people pay a premium for London ex- 
 change, instead of getting it at a discount, and 
 more than that he has been able to make a trade for 
 cotton at 5 cents a pound, while Germany is will- 
 ing to pay 18 cents a pound. In effecting the com- 
 promise between this country and London, which is 
 the financial capital of Europe, the newly formed 
 Federal Reserve Board has had an important part. 
 Its future activities will be much concerned with 
 this problem of foreign exchange. The people 
 should demand that the United States at least adopt 
 the semi -governmental banking system of Europe, 
 if it does not, as it should, take over the banking 
 monopoly of this country. With the banking 
 monopoly in the governments of the world there 
 would be no more wars. 
 
 Germany Has Food Aplenty for War 
 
 Confidential Councilor Ruebner, founder of what 
 is known as the physiology of nutrition and a Ger- 
 man economist of wide reputation, publishes in the 
 current issue of the Medicinische Wochenschrift, a 
 survey of food conditions in Germany. The writer 
 deals with the claim of the foreign hostile press that 
 
 43 
 
Germany, due to its partial isolation in the present 
 war, would in very little time be without sufficient 
 food. Among the items which he speaks of is milk. 
 Germany has at present, claims Councilor Rueb- 
 ner, about 11,000,000 milch cows, producing about 
 1,150 cubic centimeters of milk per capita each day, 
 while the average consumption per person is only 
 341 cubic centimeters in Germany, in addition to 
 18 grams of cheese and 7.8 grams of butter. 
 
 "It is plain," says the writer, "that we have a 
 superfluity in this class of food. In case the con- 
 sumption of butter is reduced 1 gram per person the 
 saving would amount to about 25,000 tons of butter 
 per day, equal to about 750,000 tons of milk. In 
 view of the fact that each milch cow produces an- 
 nually about 2,500 liters of milk, or about 23^2 tons, 
 about 300,000 animals could be killed for food pur- 
 poses without interfering seriously with the milk 
 supply of Germany." 
 
 After asserting that the Germans are the biggest 
 meat eaters in Europe, Dr. Ruebner gives the fol- 
 lowing table of meat consumption per capita for 
 Europe : 
 
 Kilograms. 
 
 Germany 52.3 
 
 England 47.6 
 
 France 33.6 
 
 Holland and Belgium 33.6 
 
 Austria-Hungary 29.0 
 
 Russia 21.8 
 
 Italy 10.4 
 
 German's demand, the writer asserts, is covered 
 fully for the period of the war, and, while forage 
 
 44 
 
is none too plentiful ordinarily, he believes that 
 there will be no difficulty feeding the stock, espe- 
 cially if a late winter makes it possible to pasture 
 the animals longer than is usually the case. 
 
 A long detailed inspection of Germany's grain 
 supply brings Dr. Reubner to the conclusion that in 
 this respect also Germany is far better off than has 
 been hoped by her enemies. There is enough wheat 
 and rye to meet Germany's demand during the war, 
 and instead of present conditions indicating, as has 
 been claimed, a shortage, there is every reason to 
 believe that the supply on hand is great enough to 
 leave a surplus. 
 
 Fixing the Blame for War 
 
 Are not live million lives enough! After si3;te;en 
 weeks of war in Europe, statisticians estimate that 
 the losses of the combined armies engaged in this 
 strife amount to five million human lives 1 
 
 As many homes, which, formerly were the habi- 
 tats of happy families have been destroyed by fire, 
 shot and shell in the cities and villages of the Con- 
 tinent of Europe. 
 
 But still the carnage goes on. Is there no way 
 1)y which a stop can be put to this slaughter of the 
 best and bravest of human kind? 
 
 When a river overleaps its banks causing injury 
 to the adjoining country by inundation, the first act 
 is to ascertain the source of the flood and apply 
 correction there. If the general public can defi- 
 nitely decide upon the aggressor in the present de- 
 plorable conflict, a public opinion may be formed 
 
 45 
 
that bein^ directed at the offender should cause a 
 halt to his malevolence. 
 
 No American student of the g^reat conflict now 
 raging in Europe has a better right to speak with 
 authority than Professor William M. Sloane, of 
 Columbia University, for his researches into his- 
 tory have been among the foremost made by any 
 American and his written ' and spoken utterances 
 upon racial tendencies and social significances rank 
 among the profoundest of the time. 
 
 Says Prof. Sloane : 
 
 "There was printed recently what the British call 
 their 'White Paper/ as well as the German 'White 
 Paper.' The editors of our most important jour- 
 nals announced that they had read and studied 
 those papers with care and that on the face of those 
 papers, beyond any peradventure, Germany was the 
 aggressor. German militarism had flaunted itself 
 as an insult in the face of Europe. Germany had 
 violated neutrality. Germany had committed al- 
 most every sin known to international law and 
 therefore the whole German procedure was to be 
 reprobated. 
 
 ** Within a very short time a Labor member of 
 Parliament, J. Ramsey Macdonald, rises in his 
 place, able and fearless, and, on the basis of the 
 'White Paper,' as published and put in the hands 
 of the British public, attacks Sir Edward Grey for 
 having so committed Great Britain in advance to 
 both Russia and France that, in spite of the rep- 
 resentations of the German Ambassador, he dared 
 not discuss the question of neutrality. This mem- 
 ber of Parliament manifestly belongs to the pow- 
 erful anti-war party of Great Britain, a party two 
 
 46 
 
 I 
 
of whose members, John Burns and Lord Morley, 
 resig^ned from the Cabinet rather than condone in- 
 iquity, a party which before the outbreak of the 
 war made itself heard and felt and protested against 
 the participation of Great Britain, desiring localiza- 
 tion of the struggle. 
 
 *'Mr. Macdonald says that in his opinion this 
 talk about the violation of Belgian neutrality, from 
 the point of view of British statesmen, is absurd, 
 because as long ago as 1870 the plans for the use 
 of Belgium, both by France and by Germany — in 
 other words, the violation of its neutrality — were in 
 the British War Office, and that Mr. Gladstone rose 
 in his place and said he was not one of those whose 
 opinion was that a formal guarantee should stand 
 so far in thwarting the natural course of events as 
 to commit Great Britain to war ; and that has been 
 the announced and avowed policy of Great Britain 
 all the way down since 1870, and that therefore talk 
 about the violation of Belgium neutrality is a mere 
 pretext. 
 
 "That is another instance of this secret agree- 
 ment that goes on, which so commits a man like 
 Sir Edward Grey that in the pinch, when the Ger- 
 man Ambassador substantially proposed to yield 
 everything to him and asked him for his proposi- 
 tion, he cannot make any. 
 
 "These facts are in the 'White Paper.' As far 
 as I know, no editor in the United States who 
 claims to have studied thoroughly that 'White 
 Paper' has ever brought this out, and they had not 
 been published in that paper at the time when Sir 
 Edward Grey and Mr. Asquith made their respec- 
 
 47 
 
tive speeches and committed the British nation to 
 the war. 
 
 ** Italy has joined what Italy considered a de- 
 fensive alliance, but not an offensive alliance, and 
 chose to regard the outbreak of this war as an 
 offensive movement on the part of Germany, and 
 for that reason has refused to participate in the 
 stru^^le. 
 
 Secret Agreements the Rule. 
 
 "I say for that reason because, having been ac- 
 customed to reading, all my life, long diplomatic 
 documents, really having been trained, you might 
 say, almost in the school of Ranke, who was the 
 inaugurator of an entirely new school of historical 
 writing based on the criticism of historical papers, 
 r have come to realize that the dispatches of trained 
 diplomats are for the most part purely formal, and 
 that while these respective publications of Great 
 Britain and of Germany have a certain value, yet 
 nevertheless the most irhportant plans are laid in 
 the embrasures of windows, where important men 
 stand and talk so that no one can hear, or they are 
 arranged and often times amplified in private cor- 
 respondence which does not see the light until years 
 afterward, and that the most important historical 
 documents are found in the archives of families, 
 members of which have been the guiding spirits of 
 European policy and politics. 
 
 "So that what the secret diplomacy of the last 
 years may have been is as yet utterly unknown, and 
 certainly will not be known for the generation yet 
 to come and perhaps for several generations. The 
 student in almost any European capital is given 
 
 48 
 
 I 
 
complete access to everything on file in the archives, 
 including secret documents, only down to a certain 
 date. That date differs in various of these store- 
 houses, but I think in no case is it later than 1830. 
 
 '*If you ask why, there are the sensibilities of 
 families to be considered, there is the question of 
 hidden policies which they do not care to reveal, 
 and then there is the whole matter of who the 
 examining student it. For instance, certain very 
 important papers were absolutely denied to me, as 
 an American, in Great Britain — or at least excuses 
 were made if they were not absolutely denied — 
 which were opened to an Englishman who was 
 working upon the same subject at about the same 
 time. 
 
 "The reason for such observation at the pres- 
 ent hour is plain enough. Public opinion is formed 
 upon what the public is permitted to know and is 
 not formed upon the actual facts which the public 
 is not permitted to know. And for that reason 
 Americans, remote as we are from the sources of 
 information and especially remote from that most 
 delicate of all indications, the pulse of public opin- 
 ion in foreign countries, ought to be extremely slow 
 to commit themselves to anything." 
 
 From Bismarck's Autobiography, Vol. 2, page 
 237: "Lord Palmerston did indeed on April 4, 
 1836, say to the House of Commons, with an irony 
 probably not understood by the mass of the mem- 
 bers, that the selection of the papers regarding Kars 
 to be laid before the House, had demanded great 
 care and attention from persons occupying not a 
 subordinate but a high position in the Foreign Of- 
 fice. The Blue Book on Kars, the castrated dis- 
 
 49 
 
patches of Sir Alexander Burns from Afghanistan 
 and the communication of Ministers regarding the 
 origin of the note which the Vienna Conference of 
 1854 recommended to the Sultan for signature, in- 
 stead of that of Mentchikoff are proof of the ease 
 with which Parliament and the press of England 
 can be deceived." 
 
 Anglo-American Bankers Resort to 
 Boycott 
 
 By Richard M. McCann 
 
 The interests that have made and are maintaining 
 the war in Europe are the financiers of England and 
 of the United States. 
 
 These English and American financiers will not 
 consent to peace among the warring nations until 
 the value of German securities has been depreci- 
 ated almost to nothing, when these financiers will 
 take over the obligations at a mere pittance. Then 
 the terms of peace to which they will assent will 
 appear most magnanimous, perhaps without the 
 payment of any money indemnity, for the reason 
 that money indemnity would go to the treasury of 
 the nations and not to the bankers. But the finan- 
 ciers zvill insist that the obligations of Germany be 
 met dollar for dollar, giving the financiers $20 for 
 every dollar invested, while the nations will get 
 nothing in return for the vast war expenditures and 
 public losses. 
 
 We hear of depreciation of values in Wall 
 Street, of the operations of ''Bulls" and "Bears" 
 
 50 
 
wiping out the patrimony of widows and orphans. 
 Infamous as are these operations they cannot meas- 
 ure in infamy with this combination of the finan- 
 ciers of England and the United States to effect a 
 depreciation of securities and values throughout the 
 world, by the creation of widows and orphans 
 through the sacrifice of the lives of men. 
 
 Will the wage earners of England and America 
 continue to supinely wait until the money interests 
 have exhausted every resource in their attempt to 
 crush Germany to the dust, that they may fasten 
 upon the world a money slavery incomparably 
 worse than black slavery? Or is money a god and 
 the financiers its priests, who may not be questioned 
 even by those dying at their hands? 
 
 Our newspapers gloat over the orders from Eng- 
 land for millions of dollars' worth of destructive 
 weapons placed in this country through Charles 
 Schwab. The people of this country should demand 
 that Congress prohibit this traffic and that we be- 
 come neutral in practice as in precept. For a na- 
 tion, having no grievance against either belligerent, 
 to furnish both of them with weapons for mutual 
 destruction, is not justifiable under any circum- 
 stances ; but to furnish one side for a money con- 
 sideration, with such devices, when the other side 
 cannot be equally supplied, is absolutely criminal. 
 It is nothing short of aiding and abetting murder. 
 
 Congress has enacted laws punishing by impris- 
 onment conspiracies in restraint of trade. Here we 
 find conspiracies against the peace and happiness 
 of mankind, promoters of war and slayers of men. 
 How long will these go unwhipped of justice?^ 
 
 A few years ago people would laugh at the idea 
 
 51 
 
that a Rockefeller could be indicted for an offense 
 such as the New Haven conspiracy. A Rockefeller 
 is under indictment for that offense today. 
 
 The assertion that these financiers, conspirin^^ 
 to loot the governments of the world can be 
 brought to book may be scoffed at, but their turn 
 will come. If the laws of this country are not now 
 so framed as to give the requisite authority for the 
 indictment and punishment of these misery makers, 
 let legislation be enacted at the present session of 
 Congress, placing the banking business of the coun- 
 try in the government — the people and for the ben- 
 efit of the people. 
 
 The people of the United States cannot know that 
 me men in control of finance, transportation and 
 manufacturing in the United States are in league 
 with the men in control of finance, transportation 
 and manufacturing in England, for the purpose of 
 monopolizing all the profits of the war even at the 
 cost of millions of human lives on the battlefields 
 of Europe and millions of human lives through des- 
 titution in all other parts of the world. That such 
 a band of human despoilers exists is demonstrated 
 by the proposed boycott by the British Privy Coun- 
 cil. It is also demonstr^ed by the record of the 
 money manipulators in the past and by Anglo- 
 American financial arrangements today, which sur- 
 pass in plan and scope the money conspiracies 
 against the people successfully carried out for the 
 last thirty years. J 
 
 y^ American cotton is in demand in England as it 
 'never was before, but instead of purchasing Amer- 
 ican cotton at a fair price, England sent to this 
 country Sir George Paish, its foremost financier, to 
 
 52 
 
collect an alleged bill of $250,000,000 due as a bal- 
 ance of trade, when as a matter of fact the bal- 
 ance of trade was growing daily in favor of the 
 United States. In spite of this fact Sir George 
 Paish put through a deal by which England was to 
 get American cotton at the price American bankers 
 had loaned on it, or 5 cents a pound, though it cost 
 the planters 7 cents a pound to grow it. 
 
 The Daily Consular Report, published by the De- 
 partment of Commerce and Labor on November 7, 
 contained this item : 
 
 The Department of State is in receipt (November 
 3) of a cablegram from the American embassy at Ber- 
 hn statmg that the supply of cotton is about sold out 
 in Bremen, which is the principal cotton market of 
 Germany. At Hamburg spot cotton is quoted at 90 
 pfennigs (19.432 cents per pound) and 85 pfennigs 
 (18.352 cents per pound) offered for later delivery, 
 with a drop in price likely should new cotton arrive 
 in quantity. 
 
 In the interior of Germany— at Stuttgart and 
 Munich— the price is 1 mark per half kilo (21 5S>1 
 cents per pound) ; at Magdeburg, 72 pfennigs (15 546 
 cents per pound) ; at Coburg, 60 to 65 pfennigs (12.955 
 to 14.034 cents per pound) for cotton coming by way 
 VLo^?°^ ^^ Swedish ports; at Cologne, 78 pfennigs 
 (16.841 cents per pound) delivered at Cologne; at 
 Dresden, 7S pfennigs (16.193 cents per pound) this 
 being the quotation on October 17. In Leipzig prices 
 range from 66 to 107 pfennigs per half kilo (from 
 14.25 to 23.102 cents per pound), free Leipzig ac- 
 cording to quality. 
 
 Here we see Leipzig offering 23 cents a pound 
 for cotton, a price that would justify the risk of 
 sendmg several shiploads there, but if such an at- 
 tempt were successful the boycott against German 
 
 53 
 
exchange would prevent the shippers cashing their 
 drafts. 
 
 Do the people of the United States realize that 
 such an infamous transaction will not only ruin the 
 cotton growers of the South, but shut down the 
 mills of the North, just as soon as the looms in the 
 factories over the sea begin to hum? 
 
 Can such a transaction be sanctioned by the Gov- 
 ernment of the United States? The Government 
 that Jefferson characterized as "A wise and frugal 
 Government, which shall restrain men from injur- 
 ing one another, and shall not take from the mouth 
 of labor the bread it has earned?" 
 
 In 1873 the financiers of England paid $500,000 
 to reap a profit of $9,000,000 in United States 
 bonds. Of this transaction Senator Daniel of Vir- 
 ginia, in the Senate, May 22, 1890, said : 
 
 "In 1872, silver being demonetized in Germany, 
 England and Holland, a capital of il 00,000 ($500,- 
 000) was raised, and Ernest Seyd was sent to this 
 country with this fund as agent for foreign bondhold- 
 ers to effect the same object." 
 
 This testimony is corroborated by the Congres- 
 sional Globe of April 9, 1872, as follows : 
 
 "Ernest Seyd, of London, a distinguished writer 
 and bullionist, who is now here, has given great at- 
 tention to the subject of mint and coinage. After 
 having examined the first draft of this bill (for the 
 demonetization of silver), he made various sensible 
 suggestions, which the committee adopted and em- 
 bodied in the bill." 
 
 This conspiracy attracted some public attention 
 and called forth condemnation, by some of the 
 newspapers, long after the money clique had se- 
 
 54 
 
cured their gains. Among those who exposed the 
 conspiracy was Frederick A. Luckenbach, who ap- 
 peared before James A. Miller, the Clerk of the 
 Supreme Court, at Denver, Colo., on May 6, 1892, 
 and made affidavit that as an inventor and busi- 
 ness man, at Philadelphia and New York, he had 
 made several business visits to London. He be- 
 came well acquainted with Mr. Ernest Seyd in Lon- 
 don, meeting him first in 1865, and renewing his 
 acquaintance with him each year, and "upon each 
 occasion became his guest at one or more times, 
 joining his family at dinner or other meals." 
 
 In February, 1874, while at dinner at Mr. Seyd's 
 house, the conversation turned on rumored corrup- 
 tion of the British Parliament, and Mr. Seyd told 
 him that *'he (Seyd) could relate facts about the 
 corruption of the American Congress that would 
 place it far ahead of the English Parliament in that 
 line." Mr. Lauterbach swore that after dinner Mr. 
 Seyd took him apart and made this statement: 
 
 "I went to America in the winter of 1872-'3, au- 
 thorized to secure, if I could, a bill demonetizing sil- 
 ver. It was to the interest of those I represented — ■ 
 the governors of the Bank of England — to have it 
 done. I took with me ilOO.OOO sterling ($500,000), 
 with instructions that if it was not sufficient to ac- 
 complish the object, to draw another £100,000, ox as 
 much as was necessary. / saw the committee of the 
 House and Senate, and paid the monev and stayed in 
 America until I kriezv the measure was safe." 
 
 The letter of Ernest Seyd to Mr. Hooper is pub- 
 Ushed in the records of Congress (Senate Mis. Doc, 
 No. 29, Fifty-third Congress, first session). It is 
 dated ''La Princess Street Bank, London, Feb. 17, 
 
 55 
 
1872," and among other things of a technical char- 
 acter recommends the coining of a silver dollar of 
 400 grains legal tender to any amount not exceed- 
 ing $100. The panic of 1873 was the direct result 
 of this demonetization. 
 
 $500,000 Bought Control of This Nation's 
 Finances. 
 
 Under date of October 9, 1877, the following cir- 
 cular was sent to all bankers of the country: 
 
 "Dear Sir: It is advisable to do all in your power 
 to sustain such prominent daily and weekly news- 
 papers, especially the agricultural and religious press, 
 as will oppose the issuing of greenback paper money, 
 and that you also withhold patronage or favors from 
 all applicants who are not willing to oppose the Gov- 
 ernment issue of money. Let the Government issue 
 the coin, and the banks issue the paper money of the 
 country, for then we can better protect each other. 
 
 "To repeal the law creating national bank notes, or 
 to restore to circulation the Government issue of 
 money, will be to provide the people with money, and 
 will, therefore, seriously affect your individual profit 
 as bankers and lenders. See your Congressman at 
 once, and engage him to support our interests, that 
 we may control legislation. 
 
 "James Buell, Secretary, 
 "247 Broadway, N. Y." 
 
 During the war of the Rebellion the financiers of 
 that date, as those of this day, were in league with 
 Lombard street, and succeeded in sending gold to a 
 premium reaching 185 per cent, in 1864. Charles 
 Hazzard, an agent of London capitalists, in 1862, 
 issued a circular to New York capitalists, which 
 was discovered by Isaac Sharp, in 1873, on file in 
 
 56 
 
the First National Bank of. Council Grove, Kans. 
 This circular is as follows: 
 
 "Slavery is likely to be abolished by the war power, 
 and chattel slavery destroyed. This, I and my Euro- 
 pean friends are in favor of, for slavery is but the 
 owning of labor, and carries with it the care of the 
 laborer, while the European plan, led on by England, 
 , is capital control of labor by controlling wages. This 
 can be done by controlling the money. The great 
 debt, that capitalists will see to it is made out of the 
 war, must be used as a measure to control the volume 
 of money. To accomplish this, the bonds must be 
 used as a banking basis. We are now waiting to get 
 the Secretary of the Treasury to make this recommen- 
 dation to Congress. It will not do to allow the green- 
 back, as it is controlled, to circulate as money any 
 length of time, as we cannot control them. But we 
 can control the bonds, and through them the bank 
 issues." 
 
 Elsewhere under the title ''Fixing the Blame" 
 will be found the authoritative statement that agree- 
 ments between nations are actually arranged in 
 secret by prominent individuals. In the light of 
 these proven money conspiracies is it not fair to 
 assume that this terrible war in Europe has its 
 source in the machinations of money manipulators? 
 
 Remember that the cotton planters of the South 
 are practically destitute, although Germany would 
 if permitted enrich them by paying more than 20 
 cents a pound for cotton. The cotton mills of 
 America are not working to capacity and England 
 will not permit wool from abroad to be sent to this 
 country, thereby keeping our woolen mills idle and 
 our men and women out of employment. 
 
 Remember that it is only by "hard times" and 
 wars that the financiers make colossal fortunes. 
 
 57 
 
Why will not the people banish ''hard times" and 
 put an end to war for all time by demanding that 
 the government become the banker? 
 
 Germany has set the example of a nation pros- 
 pering by having the government participate in the 
 banks' profits and this is the reason English and 
 American financiers will sacrifice the flower of the 
 world's manhood to destroy Germany. Let the 
 United States improve on Germany's precedent and 
 become the nation's banker. Let us have no more 
 money conspiracies with their attendant evils. Let 
 us have no foreign entanglements. 
 
 Let Us Have World Peace. 
 
 58 
 
TO PEACE LOVING AMERICANS 
 
 You doubtless realize that a continuance of this 
 terrible War in Europe spells international disaster 
 of a character that never before affected the indus- 
 trial world. 
 
 The study of German achievements will convince 
 the most partisan that nothiujE^ is to be gained for 
 commerce, art or literature in this war against 
 Germany. 
 
 This book is an appeal to reason and wholly in 
 the interest of peace. 
 
 The cable, the telegraph, fast ships and faster 
 railroad trains link the nations so closely that the 
 public opinion of one nation influences another more 
 potently today than at any time in the past. 
 
 America should demand World Peace in no un- 
 certain tone. Willyou not help to give expression 
 to that demand ? 
 
 See that everyone you know has a copy of this 
 book. 
 
 The price is 10 cents the copy. 
 Liberal Discount to Dealers. 
 
 Address : 
 
 WATERWAYS AND COMMERCE. 
 
 150 Nassau Street. 
 New York City. 
 
 59 
 
Great Race Work Halted 
 
 The crime of the ages is in perpetration to-day 
 in Europe and a so-called twentieth century civil- 
 ization does not seem to appreciate the enormity of 
 the sacrilege. 
 
 Having given to Music a Wagner, to Literature 
 a Goethe and a Hauptmann, to Statesmanship a 
 Bismarck, to Sovereignty a Wilhelm II (incon- 
 testably the most honest and unselfish man who 
 ever ruled a Kingdom), Germany was endeavoring 
 to give to the world a nation of scientifically 
 trained individuals, when without provocation or 
 justification, Russia and France invaded her front- 
 ier. 
 
 The world knows that for thirty years Germany 
 has been training boys and girls in the various 
 walks of life for which nature seemed to have best 
 fitted them. The ultimate results of this training 
 could not be demonstrated with accuracy before the 
 second or third generations. One generation alone 
 has been trained and the results has been a nation 
 of only two per cent, defectives, whereas, the world 
 average of defectives is thirty per cent. What 
 the next generation would have brought forth in 
 Germany can never be known because this culture- 
 killing war has called to arms and to death the 
 flower of German manhood. The most important 
 experiment ever attempted in stirpiculture is halted 
 if not forever destroyed. All acts of vandalism in 
 past centuries pale into insignificance before this 
 record of race retardation. 
 
 60 
 
The United States can, if its people and its Con- 
 gress so will, call a halt to this disaster. Thou- 
 sands of Americans are demanding that Congress 
 act and at once. Already a handful of enlightened 
 patriots m the halls of Congress are making that de- 
 mand. They will have to be aided by the voices of 
 millions before their cry reaches the ears and their 
 words penetrate the understanding of the money- 
 mad men who are encouraging the war for their 
 personal gain. 
 
 In order that Americans may be aroused to a 
 realization of present conditions, this book on the 
 war has been published. It is an appeal to the rea- 
 son of Americans for fair play to Germany and to 
 the world. It is in no sense a partisan or racial 
 appeal. The price of the book is ten cents a copy. 
 Its distribution should be as wide-spread as the 
 Nation. Orders supplied by 
 
 WATERWAYS & COMMERCE. 
 
 t\ 
 
ALL SHOULD AID FOR WORLD 
 PROGRESS 
 
 To-day, the trade of the United States exceeds 
 that of any other nation. 
 
 Why? 
 
 The answer is to be found in the pages of 
 "Waterways & Commerce," a magazine that sets 
 forth tersely and accurately the work accomplished 
 for the benefit of humanity in the various lines of 
 trade. 
 
 Its purpose is to teach man to recognize his true 
 friends, his true interests and the real value of the 
 commercial processes that are working for civiliza- 
 tion and human advancement. 
 
 The printed word makes the most acceptable ap- 
 peal to the human mind, and for that reason an 
 educational publication such as ''Waterways & 
 Commerce'" performs a distinct service to human- 
 
 The mission of this magazine is to enlighten peo- 
 ple on questions of finance and trade that are rarely 
 if ever, discussed in the daily newspapers. 
 
 Your co-operation in this work is requested. 
 Will you not sign and mail the following? — 
 
 1915. 
 
 Publisher, Waterways & Commerce : 
 
 Enclosed find $1.00 for which send me "Water- 
 ways & Commerce" for one year. 
 
 Name . . . 
 
 Address.'-. . 
 
 62 
 
Half a Ym of War 
 
 Calculations Showing that Eight and One-Half 
 Billions Will Have Been Spent by the End of 
 January. 
 
 British Exchequer returns report that the aver- 
 age per diem cost of war to England was $4,050.- 
 000 in August, $3,250,000 in September $5 350 000 
 in October. $7,200,000 in November and $9,'85o'oOO 
 in December, and cites the Chancellor of the Ex- 
 chequer as predicting that the first full year of war 
 will cost England $2,250,000,000. 
 
 The French cost is thus figured up from the 
 monthly reports of the Journal Officiel: 
 
 Monthly. Rate per 6 mo. 
 
 ^"f '\ $537,500,000 $3,150,000,000 
 
 ^'f 7'^^'" 165,500,000 1,000,000,000 
 
 ^"'^'^"^ 175,000,000 1,050,000,000 
 
 Russia's Minister of Finance has estimated a war 
 expenditure of $892,500,000 up to October 13 
 
 $1 7^000 nnii' '''^' ""! expenditure is estimated at 
 $175,000,000 a month, exactly the same expenditure 
 ast^ ranee. Ihis is an average of less than $6,000,- 
 000 a day or one-third less than the expenditure of 
 threat Britain alone. That the zvar is bringing Eng- 
 land rapidly to a state of financial exhaustion is 
 demonstrated by the fact that English securities 
 have depreciated $400,000,000 in January 
 
LIBRARY OF CONGRESS 
 
 015 845 506 7 ^ 
 
 Waterways a-** Commerce 
 
 An American Magazine established 
 to bring about freedom to the seas 
 
 THE TERRIBLE WORLD WAR ARISES 
 FROM THE DETERMINATION OF ONE 
 NATION TO DOMINATE THE OCEANS 
 
 Such a determination is neither right nor just. 
 
 Germany fights for the freedom of the seas. Her tri- 
 umph will benefit all mankind. 
 
 Germany stands for right and justice. For that reason 
 WATERWAYS AND COMMERCE upholds 
 Germany. 
 
 Subscription Price One Dollar a Year 
 
 ADDRESS 
 
 Waterways and Commerce, 150 Nassau St., New York 
 
LIBRARY OF CONGRESS 
 
 015 845 506 7