A 532815 DUPL 1918-1919 WAR PAMPHLETS Pablished by Union League Club of Chicago i INMILE ARTES LIBRARY 1817 MENU VERITAS UNIVERSITY OF MICHIGAN EXPLURIBUS UNUM UME SCIENTIA OF THE TCEBOR SI-QUÆRIS-PENINSULAM-AMŒNAME CIRCUMSPIGE JUST GOA) 3) $19.95.3°/5 UDUDI BEQUEST OF IRVING KANE POND C.E. 1879, A.M. (HON.) 1911 1 • 2 P Pamphlets Written for War Committee- ¿ Union League Club Chicag •*• BY HAROLD G. MOULTON “Unusual Business Not Business as Usual" "Your Business and War Business" "The Duty of the Consumer in War Time" "Public Works or Public Charity?" BY CLARENCE L. SPEED "Why We Fight" "Our Peril on the Eastern Front" "Their Job and Ours” "Look Out for the German Peace Trap" "The World's Next Step-A League of Nations" BY RALPH B. DENNIS "Russia in Revolution" BY HERBERT F. PERKINS "The Manufacturer's Wage Problem" BY SAMUEL O. DUNN "The Present Railway Situation" RESOLUTIONS OF THE WAR COMMITTEE -UNION LEAGUE CLUB "The Austrian Peace Trap" "Our Peril in the East" REPORT OF WAR COMMITTEE-NOVEMBER 1918. Pamphlets Reprinted by War Committee- Union League Club BY OTTO KAHN "Prussianized Germany" BY CHARLES D. HAZEN "The Government of Germany" ܙ BY LEWIS B. NAMIER "The Czecho Slovaks" BY PRESIDEnt Wilson "The Bases of Durable Peace" "The Bases of Lasting Peace" JK Pond Bequest 18-40 SAMANTALA GEVOELE FAGTE MOT KROTTLANDIRAO LATIFULAMADA TALENTIMENT UNUSUAL BUSINESS NOT BUSINESS AS USUAL BY HAROLD G. MOULTON it's THE UNION LEAGUE CLUB OF CHICAGO 1918 After you have read this pamphlet, please pass it on in order that the mescage it carries may reach the largest number of persons BRAND VITARA CHARMELITE-10]||||||||||||||||||______________________________ Harold G. Moulton, who has a national reputation as an economist, is a mem- ber of the Department of Political Economy of the University of Chicago; Acting Editor of the Journal of Political Econ- omy; Secretary of the Western Economic Soci- ety; Author of Waterways versus Railways, Principles of Money and Banking, etc. Copies may be obtained of the War Committee of the Union League Club of Chicago at the following prices, delivery prepaid: Single copies One hundred copies One thousand copies 5 cents 2 cents each I cent each THE WAR AND INDUSTRIAL READJUSTMENTS How may American industries most effectively aid in the suc- cessful prosecution of the war? What readjustments, if any, must be made in the coming months to insure the production of the per- fectly stupendous quantities of supplies and materials that war imperatively demands? Can we secure these supplies by speeding up production in existing factories and workshops, or must we transform in considerable measure the character of our industries, eliminating the nonessential and thereby diverting productive energy more largely into war channels? In the present paper an attempt will be made to throw light upon these vital questions. First, we shall make a simple analysis of the industrial requirements of the war; secondly, a statement of the lessons that are to be learned from the experience of Europe during the past three years; thirdly, a brief statement of the lessons from our own experience to date; and finally we shall give an account of the plans for the future that are now being formulated at Washington. THE FUNDAMENTAL REQUIREMENTS OF THE SITUATION Someone has said-I think it was Napoleon-that three things are necessary to wage a war successfully: money, more money, and still more money. There is a great deal of truth in this statement in ordinary wars, but as applied to the United States in the present conflict it is entirely misleading. Money is of paramount impor- tance when a nation may buy its war supplies from abroad. Eng- land and France, for instance, before our entrance into the war, purchased with money vast quantities of war supplies from the United States. But it is impossible for us to use money, to any great extent, in buying goods from other nations, for the simple reason that the entire commercial world is now at war. With his money Uncle Sam can buy war supplies only from himself. There are of course a few exceptions to this, such as nitrates and rubber; but, substantially speaking, Uncle Sam must produce all the things 3 4 The War and Industrial Readjustments which he is to use in the war. We the people turn funds into the Treasury and then Mr. McAdoo buys from us the supplies needed. The amount that he can buy is determined, in practice, by the amount of war supplies we have produced. Similarly, when we extend credit to our allies we really say to them, We will furnish you with materials and supplies now and you may pay for them after the war is over. This point must be strongly emphasized; for many people fancy that furnishing credit to our allies means merely sending them money, or perhaps some sort of draft or credit instrument. In the last analysis it always means that we send them goods, which they are to pay for at some future time. To understand, then, the real problem with which we are con- fronted, we must think in terms of goods rather than in terms of money. Three things, in the main, are required of us, aside from soldiers: 1. Ships--as many as can be constructed. 2. Supplies and munitions-as many as can be furnished. 3. Food-as much as can be produced. While these are the specific things that are required, it is obvious that to produce these things in utterly unprecedented quantities will require the development first of many industries that are auxiliary to shipbuilding, war manufacture, and farming. The modern industrial world is extraordinarily complex, and every fundamental industry has a multitude of handmaidens. Now let us see precisely what this involves in the way of indus- trial mobilization. We have in the United States, let us say, 60,000,000 working people. Ordinarily these 60,000,000 workers produce (1) essentials, (2) nonessentials. In time of war many of these workers are drawn off from productive industry to war service, but enough others are pressed into the industrial ranks to take up much of the slack-possibly they fully replace the number who are called to the colors. Let us assume that we have 60,000,000 workers who must produce the indefinite quantities of ships, supplies, muni- tions, and food that are demanded. Now there are just two possible alternatives before us: First, these 60,000,000 workers must be speeded up to a point where they will be producing, not only the usual quantities of (1) essentials The War and Industrial Readjustments er and (2) nonessentials, but in addition the unlimited quantities of ships, supplies, munitions, and food that are required; or, secondly, we must produce (1) essentials; but then, instead of producing (2) nonessentials, transfer, so far as may be practicable, the fac- tory power and the labor power ordinarily devoted to producing luxuries to the production of the indispensable ships, munitions, and other war materials. When the war began it was generally assumed in the United States that the first of these alternatives would be adequate to meet the requirements of the situation. We assumed that the production of war supplies could be undertaken as an extra— that we could speed up our factories and our workers sufficiently to meet all war demands. We did not understand how utterly insatiable are the demands of modern warfare. The notion that war production can be carried as an extra is, however, no longer held in government circles. It is now conceded that we must resort to the second method. In order to understand clearly the reasons for this change we must consider the lessons that the United States has learned from Europe in this connection. WHAT GERMANY HAS DONE One of the best ways of ascertaining the problem that lies before us is to study the German method of industrial mobilization. We have all wondered many times how Germany has been able to finance the war, how she has been able for four years-though largely cut off from the outside world—to resist the economic pres- sure of the Allies and at the same time procure the necessary war supplies for campaign after campaign-yes, let it be faced squarely- for victory after victory against her united enemies. There is just one answer to this question. As soon as it became apparent that the war would be long-continued Germany set about the eliminating of all nonessential industries; factories which had been producing luxuries were converted into munitions or supplies plants, where possible; and where this was not possible they were closed down and the laborers transferred for war service in essential industries. Germany thus early got right down to brass tacks. Indeed, in some instances Germany did not even 6 The War and Industrial Readjustments wait to discover whether the drive on Paris would be successful. Secretary Baker tells us that he knows of one case where within twenty-four hours after the outbreak of the war one-half of the laborers in a large nonessential industry were placed in the army and the remainder transferred to war industries. A selective draft for industry appears to have been a part of Germany's war preparedness. Germany recognized, in other words, that for every soldier at the front there must be several (industrial) soldiers at the rear; and the principles of military organization were made to apply to every aspect of national life. A certain percentage of the national energy was put on the battle fronts; a certain percentage was devoted to the creation of submarines; a certain percentage to the manufacture of supplies and munitions; and a certain percentage to the production of foodstuffs. All useless effort, all waste motion, as far as possible, was thus eliminated-everything was arranged with an eye single to military victory. THE EXPERIENCE OF FRANCE It was quickly realized in France that "business as usual' would be nothing short of national suicide. Three-quarters of the male laboring population between the ages of eighteen and forty- five were called to arms literally overnight, with the result that French industry during those first awful weeks was largely para- lyzed. France was relying upon her accumulated stores of supplies, plus importations from England and America. But after the pres- sure on the west was somewhat relieved and after it became clear that a long struggle was inevitable, France recalled from the trenches skilled laborers and mechanics who could henceforth serve the nation more efficiently in the industrial army. But when these men were withdrawn from the front it goes without saying that they were not delegated to produce luxuries and non- essentials; they were set to upbuilding war industries to the end that the armies might be certain of obtaining a steady replenish- ment of the indispensable weapons and materials of warfare. There cannot be the slightest doubt that France would have been crushed during those endless months of waiting for England to > : : The War and Industrial Readjustments 7 -I get ready if she had not been making her national energy count effectively in the struggle in which she was engaged. It is necessary to state, however, that France has not gone as far as Germany in the elimination of nonessentials. It appears that some luxuries have continued to be manufactured and sold in France, at least until very recently. Need we add that every ounce of national power thus misdirected is an ounce of power lost in the struggle against Germany? THE LESSONS FROM ENGLAND England, across the channel, and hence free from invasion, long deluded herself with the notion that she could have business as usual and at the same time cope successfully with an enemy that was wonderfully efficient in its organization for war. But England eventually awoke-in about two years—to the real requirements of the grim business of war. I quote from Hon. R. H. Brand, vice- chairman of the British War Mission to the United States: "We discovered to our surprise at the beginning of the war, that war apparently meant prosperity and not poverty. Wages advanced and millions found that they had more money than they had ever had before. The result was that consumption actually tended to go up among the poorer classes, and labor and materials vitally required for war purposes were diverted to meeting these new demands. But we found that 'business as usual' is impossible. The ravenous demands of a modern war compel every nation at war to choose between peace and war; if they have elected for war, they must order their economic lives accordingly; they must turn their industry from a peace to a war basis, and they must see that every war demand has a prior claim to every peace demand." Now England's industrial energy is mainly devoted to the production of war supplies. Whole industries have been closed down and the laborers engaged therein have been transferred to war occu- pations.¹ ' Mr. Brand's address, from which the above was taken, was delivered Septem- ber 26, 1917, before the American Bankers' Association. Unfortunately the address was not published in full in the official Journal of the American Bankers' Association. The important parts were, in fact, omitted. The writer has a transcript of the stenographic report of the full address. 8 The War and Industrial Readjustments It was argued by many in England, as it is being argued by some in the United States, that to readjust industry in such fashion would be to decrease wages and profits and thereby render more difficult the task of paying taxes and subscribing to government loans. The fallacy of this notion was revealed by experience, however, for when labor was shifted to war industries and factories were rehabilitated for the manufacture of war supplies, it was found. that wages and profits were quite as large as before. And what is the vitally significant factor, it was found that these wages and profits were earned in producing things that could be used in the waging of the war. The war supplies obtained by this diversion of energy represented clear gain in fighting strength.' UNITED STATES WAR PRODUCTION INADEQUATE While this country has been learning these lessons from the nations that have been through the fire we have also been acquiring some experience of our own. It was the general notion at the be- ginning of the war that if the government were able to secure the necessary funds from the sale of bonds and the raising of taxes, the purchase of the necessary materials and supplies would follow as a mere matter of routine. The utter fallacy of this idea is revealed in the figures made public by the war department on January 31, 1918. Exclusive of loans to our allies, the government planned to spend during the fiscal year ending June 30, 1918, $12,316,000,000. In fact, the government has spent in the seven months from June 30, 1917, to January 31, 1918, only about $3,150,000,000. That is, in seven-twelfths of the year the government has been able to spend only three-twelfths of what it planned to spend. With coffers filled to overflowing the government could not buy the supplies needed, for the simple reason that not sufficient energy had been devoted to the production of war supplies. Money alone was thus seen to be impotent; and this experience has focused attention on the real requirements for waging war, namely, materials and supplies. ¹ To guard against misunderstanding here it should be stated that some luxuries are still manufactured in England; for England's reorganization is not 100 per cent efficient. Moreover, it must be observed that the manufacture of certain luxuries to be shipped abroad in exchange for necessities may within limits be wise. } ! · I • The War and Industrial Readjustments 9 These figures show more clearly than mere words could possibly do that the United States has thus far not accomplished anything like what it confidently expected to accomplish. They prove that we are falling far short of rendering our maximum aid. Moreover, it is concrete evidence such as this which has forced our government to conclude that we must resort to the second of the two alternatives stated above; that is, secure a thoroughgoing readjustment of industry. It is possible, of course, that we may continue with present methods and still blunder through to victory somehow. It may be that Germany is nearly done. But the evidence of the past year all points to an opposite conclusion. Not since the first year of the war has Germany gained such marked successes as during recent months. We may bolster up our courage by tales of "strategic retreats," of occasional recaptures of lost ground, and of the rumblings of internal discord in the Fatherland; but when are the allies to have something positive to offer in the way of gains of their own? We have been saying for over two years that Germany is "about through," and all the time the evidence shows that she is getting relatively stronger, at least so far as the European forces are concerned. Indeed, with the disintegration of Russia we are at the gravest period of the war since the Battle of the Marne. And really effective aid on our part cannot be given until the year 1919 at best. But even granted that victory is ultimately assured for the allies, it must never be forgotten that every month of prolongation of the war means billions of additional cost and the sacrifice of the lives of thousands of our finest sons. All will agree that consciously to leave any stone unturned to render our maximum service and to bring the war to the earliest possible successful termination is nothing short of criminal. The supreme requirement of the hour would seem to be industrial mobilization that will go to the very foundations of our national organization. WHAT OUR GOVERNMENT IS PLANNING The government of the United States is, as already indicated, now fully aware of the necessity of such an industrial mobilization IO The War and Industrial Readjustments as we have been discussing. It is important, therefore, that we all understand what developments are in store for us, to the end that we may co-operate in fullest measure with the government in its efforts. First, the government is urging us to save as never before; and to save with a view to the elimination of nonessential industries. The Liberty Loan Committee states: Luxuries and extravagance must go completely out of fashion-should, in fact, be considered little short of treachery. There is not enough capital, labor, transportation, or raw material to go around, if those industries which are not essential to the conduct of war are continued at their normal productiveness. Every unessential industry which continues in operation must be considered as bidding against the nation for its life's blood. Every unessential industry which burns coal deprives the essential industries by just so much of the supply available for their purposes. Every man who buys a new overcoat is bidding against Uncle Sam, who is buying overcoats for soldiers. And every dollar spent on a luxury is helping to support an unessential industry in the competitive consumption of essentials.¹ But the government is not to rely exclusively on voluntary saving as a means of bringing about industrial changes. It is also developing agencies of central control. In September a priority committee was established in Washington with power to decide what industries should be given prior claims in the matter of raw ma- terials. This committee has drawn up a classification, as follows: Class A comprises war work: that is to say, orders and work urgently necessary in carrying on the war, such as arms, ammuni- tion, ships, etc., and the materials required in the manufacture of same. Class B comprises orders and work which, while not primarily designed for the prosecution of the war, yet are of public interest and essential to the national welfare, or otherwise of exceptional importance. Class C comprises all orders and work not embraced in Class A or Class B. There are various subdivisions of these classes, indicated by a suffix number, thus: A1, A2, etc., B1, B2, etc. All orders and work in Class A shall take precedence over those in Class B, and those in Class B shall take precedence over those in Class C. ¹ See Economic World, January 12, 1918, p. 54. The War and Industrial Readjustments II When rigidly applied to such fundamental materials as iron, it will be readily seen that this priority system reaches into nearly every branch of industry, and that people who wish iron and steel for ordinary industrial requirements will be forced to wait-and wait indefinitely, since the demands of the war industries are certain to be simply insatiable. Very recent developments in connection with the problem of the nonessential industries may be indicated by quotations from a statement issued by the War Industries Board of the Council of National Defense late in February, 1918.¹ Shortages of many classes of raw materials and of labor in different lines are evident. Transportation, both water and rail, is obviously short and the need of industrial readjustment is apparent to make room for the war require- ments of our government and our Allies. In many cases, the facilities of less essential industries should be converted to essential production. Our industrial equipment is limited. We do not have materials, machinery, transportation, labor, or capital sufficient for fighting the great war and for normal business at the same time. The war must be prosecuted to the utmost . . . . and to that end business must, where necessary, be diverted from its established channels into new channels. • With reference to the coal situation, it is stated that- The demands for 1918 to carry out the program for the production of necessities for the war, in addition to the normal business, would greatly exceed any possible production and distribution of fuel, so there is but one remedy, i.e., to limit the production of non-war industries sufficiently to provide for: a) War needs-direct and indirect. b) Necessities for the public welfare and domestic consumption. In accomplishing the desired end, it should be our effort to divert the energies of non-war industries as far as possible to the production of the essentials for war, that each industrial center may use existing facilities, with its labor living at home, happy and contented. In the readjustment process it is inevitable that the normal business. of some industries must be interfered with in order that the production of war and public necessities be kept at the maximum. It may be that some plants because of lack of power, shortage of labor, raw materials, or transportation may have to suspend entirely. These sacrifices must be endured in the interest of our first object, which is to win the war. If we secure complete co-operation between Government and business, it is hoped that our industries may emerge 'This statement is issued by the Chamber of Commerce of the United States of America, as War Bulletin No. 34, entitled "Industry in War Times." 12 The War and Industrial Readjustments from the disturbed condition caused by the war, intact and strong for the economic problems which must face us. It would seem to be the immediate duty of the War Industries Board- 1. To list, by classes or otherwise, and to define those industries whose operation as a war measure are of exceptional importance, classifying them as far as practicable in the order of their relative urgency, measured by the extent of their contribution, directly or indirectly, toward winning the war. 2. To consider carefully and, after due notice and hearings, to determine what are the less important industries, measured by the extent of their contribu- tion, directly or indirectly, toward winning the war. 3. To promulgate such findings and to prepare, present, and, if practicable, enforce such definite and concrete plan or plans as will result in-- a) Stimulating the operation of industries of exceptional importance. b) Curtailing the operation of the less important industries or, in the alter- native, encouraging such industries so to change their operations as to produce war needs. c) Conserving the supply of essential raw materials as reserves to be drawn to meet the war requirements. The task of bringing about the necessary reorganization with the minimum of loss and suffering is so tremendous that the machinery for its accomplishment is as yet far from being per- fected. While the details cannot be given in this paper, it is generally known that the government is now developing the machinery for transferring laborers with a minimum of loss or suffering to the jobs in war industries for which they are adapted. Plans are also being matured which will provide for adequate housing facilities in the vicinity of war industries. Various financial policies are also being worked out which will insure that invest- ments shall be diverted from the nonessential industries, and that businesses which transfer to war work will be given adequate financial support and a guaranty of adequate profits. It should be added here that the rapidity with which this readjusting may be accomplished largely depends upon the devel- opments in shipping. The materials and supplies for war must pass through a narrow-necked bottle on the way to Europe, and the rate at which this neck expands will determine the rate at which we can effectively mobilize our resources for war purposes. Now, to increase our shipping capacity as rapidly as is required involves not only speeding up the work in existing yards, but also Windy The War and Industrial Readjustments 13 enlarging our shipbuilding facilities by diverting labor and capital from less essential work. It means that parts of ships must be manufactured by industrial plants wherever readjustment for such work is practicable. It means, further, that imports and exports of nonessentials must be curtailed in many instances to the end that tonnage may be released for war business. And the restric- tions of these imports and exports in turn necessitates readjust- ments in the domestic industries dependent upon such trade; the labor and capital employed in such industries must be diverted to the production of forms of war materials to which they may be adapted. In short, the problem before us is nothing less than the organizing of all the productive resources of the United States of America with a single end in view-that of building a bridge of ships across the Atlantic and sending across that bridge in mini- mum time a maximum of troops and supplies. The task we are undertaking is thus one gigantic business proposition, in compari- son with which the largest individual business ever known is utterly insignificant. To carry such a stupendous task to success- ful completion will require not only the best organizing ability the nation possesses, but infinite patience and willing self-sacrifice on the part of those whose ordinary occupations are inevitably to be disarranged. HOW BUSINESS CAN HELP It goes without saying that American business men are anxious to assist in every possible way in effecting these industrial readjust- ments with a minimum of loss. Patriotic impulse alone will lead every American business man to do his part. He merely needs to be shown how he can help most efficiently. But quite apart from patriotism or the possibility of a curtailment of raw materials or transportation facilities there is another reason which should lead business men to make readjustments wherever possible just as quickly as they can. It is inevitable that the nonessential industries will shortly have greatly reduced sales; indeed, in many cases there is already a serious falling off in sales. The reasons why this is inevitable may be briefly indicated. In the first place the perfect barrage fire of argument as to the necessity of saving that has been hurled at the American public in 14 The War and Industrial Readjustments recent months is bearing fruit. It is now regarded as unpatriotic not to save as never before in our history. In the second place it is impossible for the rank and file of the American people to buy Liberty Bonds and spend as usual. If they buy bonds it must be at the sacrifice of accustomed luxuries. Moreover, we are now looking forward to the payment of taxes, and we are making our preparations for this by economizing in our normal purchases. It must be borne in mind in this connection, also, that at a time when the future is so uncertain a great many people are saying, "I had better save all I can now, because there is no telling whether it will be possible for me to save anything in the next few years.' "" Finally, it must be noted that the rapid rise of prices in nearly every line is forcing rigid economy among the masses. Sta- tistics just published by the government show that retail prices of foodstuffs in the United States are now 57 per cent higher than they were in 1914, while general wholesale prices are 81 per cent higher. Students of the question are unanimous in the belief that prices will continue to rise here throughout the war, just as they have in the nations of Europe. It will therefore shortly be im- possible for the masses of our people to devote much of their earnings to the purchase of nonessentials. They will count them- selves fortunate if they are able to purchase enough of the neces- sities of life to sustain themselves in a state of normal efficiency. Already in many cases the pinch of war prices is beginning to mean real privation. In the light of the situation which we have been discussing it is obviously imperative that business be readjusted to a war basis wherever practicable and as soon as possible. The great problem is, How? There are two attitudes which business men may assume. One is that of "watchful waiting"; the other that of active and constructive effort directed toward conversion of their plants to war manufacture. The former leads to bankruptcy and to neglected opportunity for service to the government; the latter is the avenue to participation in profits and to effective assist- ance to the nation in its hour of need. A large number of con- cerns have already been forehanded enough to divert a portion . I 1 : ! . The War and Industrial Readjustments 15 of their plants to war work; and it is hoped that the facts about these may soon be made generally available. In the meanwhile it may prove suggestive to present here a very brief statement of some of the adjustments that have been made in England. Instead of gramophones, the gramophone company now makes fuses and delicate shell parts; instead of cloth for ordinary clothes, the woolen factory makes khaki; instead of motor cars, the motor-car maker makes shells; glaziers make cartridge clips; music-roll plants make gages; infant-food plants make plugs for shells; advertising agencies make shell adapters; watchmakers adjust fuses; baking- machinery plants make six-inch high-explosive shells; jewelry houses make periscopes; cream-separator factories make shell primers; and textile machinery firms make field kitchens. The outstanding need of the time is for the managers and staffs of technical experts in non-war industries everywhere to be studying the problem with the greatest care in order to discover in what ways their plants may be adapted to war production. They should, moreover, actively co-operate with the agencies in Washington which, under the appointment or approval of the government, are wrestling with the problem of industrial readjust- ments. On the manufacturing side there is the Bureau of Manu- facturing Resources of the Council of National Defense, which is giving its attention to the problem of plant conversion. On the commercial side there is the Commercial Economy Board of the Council of National Defense, which "has undertaken to co-operate with business men . . . . in eliminating needless uses of men, materials, equipment, and capital in all lines of commercial busi- ness." Business men who desire to place themselves in line with this movement may very properly enter into correspondence with these agencies. Such correspondence may well have the double result of proving helpful both to the business interests and to the governmental committees themselves. There is opportunity here for some really constructive co-operation. I think it is not putting it too strongly to say that the outcome of the greatest struggle in history for the rights of a common humanity very largely depends upon the rapidity and the effect- iveness with which American business rises to the task before it. Your business & war business A handbook on industrial adjustments By Harold G. Moulton The Union League Club of Chicago 1918 After you have read this pamphlet, please pass it on in order that the message it carries may reach the largest number of persons Harold G. Moulton, who has a national reputation as an economist, is a member of the Department of Political Economy of the University of Chicago; Acting Editor of the Journal of Political Econ- omy; Secretary of the Western Economic Society; Author of Industrial Conscrip- tion; Some Dangers of Price Control; Unusual Business, Not Business as Usual, etc. Following the publication of "Unusual Business, Not Business as Usual," Mr. Moulton spent some time in conference with officials in Washington compiling the information presented in this pamphlet. Copies may be obtained of the War Committee of The Union League Club of Chicago at the following prices, delivery prepaid: Single copies One hundred copies One thousand copies T 1 - 5 cents 2 cents each I cent each Foreword T HIS pamphlet is in the nature of a sequel to the one recently distributed by the Union League Club of Chicago, under the title "Unusual Business, Not Business As Usual." As a point of departure, it will prove serviceable to recall briefly the argument of the preceding paper. It was shown that: I The fundamental requirements for waging war are ships, supplies, munitions, and food, rather than money, and that there are only two alternatives before us in the procuring of these sinews of war: [a] Increase production sufficiently to provide for necessities and luxuries, plus the unlimited quantities of ships, supplies, munitions, and food that are required; [b] transfer, as far as practicable, factory power and labor power from the production of luxuries to the production of war materials. 2 Germany very early in the war adopted the second alternative and applied a selective draft to industry, thus quickly diverting her entire energy to the production of neces- sities and war supplies. It has been this that has made it possible for Germany to defy the world for four years. 3 France early recalled trained men from the trenches, -as soon as the military situation would permit and set them to work upbuilding war industries, allowing nonessen- tial enterprises to languish for the duration of the war. 4 England, after a year or so of hesitation, found that business as usual was impossible, and that if the nation were to continue the struggle it must ensure "that every war demand should have a prior claim to every peace demand." As a result, nearly the whole of British industry is now devoted to war production. 5 Production of war supplies in the United States during the first year of the war has been inadequate for the Govern- ment's requirements. With the Treasury filled to overflowing, it has been impossible to purchase the supplies needed because sufficient industrial energy had not been devoted to their production. 3 6 The United States Government has now recognized the need of thoroughgoing industrial readjustments and plans are being developed for the diversion of energy from the less essential lines to war industries. 7 American business men engaged in the less essential lines have a two-fold reason for shifting to war industry as soon as possible: [a] because it offers an opportunity to render patriotic service to the nation in its hour of need; and [b] because the curtailment of the demand for luxuries that is taking place, coupled with the application of priorities' rulings by the Government, will shortly mean heavy losses for many hitherto profitable concerns. * 8 Upon the effectiveness and the rapidity with which American business is readjusted to meet the task before it, very largely depends the outcome of the struggle in which we are engaged. The present pamphlet is designed to outline the more recent developments with reference to the Government's policy in the matter of priorities, and to show how manufacturers in the less essen- tial lines of industry may make the necessary con- version of their plants, in whole or in part, for war production. The paper should thus be at once a handbook of industrial information and a prac- tical guide to the securing of war business. *Copies of the original pamphlet, "Unusual Business, Not Business As Usual," may be obtained from the War Committee, Union League Club, Chicago, at the following prices, delivered prepaid: Single copies, five cents; 100 copies, two cents each; 1,000 copies, one cent each. 4 New plan of War Industries Board NTIL very recently it has been necessary for manu- Ufacturers who desired to secure war contracts to send representative to Washington to “drum up busi- ness. This representative has had to make the weary round of innumerable purchasing divisions of the Government, and it has required a man of dauntless courage to succeed in his enterprise. Under such circumstances it has obviously been impossible for the small manufacturer without connections to secure Government business. This has been unfortunate, not merely from the standpoint of the individual manufacturer, but also from the standpoint of the Government; for when the Government patronizes only the larger manufacturers, and those with established connections, it inevitably means a congestion of manufacturing enterprise with the attendant evils of inadequate housing and retarded production of war supplies. >> To remedy this situation, and to decentralize the produc- tion of war supplies throughout the United States, the Re- sources and Conversion Section of the War Industries Board, under the direction of Mr. Charles A. Otis, has worked out a plan whereby it is believed that the small manufacturer will be given an equal opportunity with the large one to obtain war business. The primary object is to assemble as quickly as possible detailed information concerning industries in all parts of the country. The official communication states that "to accomplish this in the most efficient way, it has been decided to divide the country into regions and organize them thoroughly under the leadership and with the cooperation of the local Chambers of Commerce and other business men's organizations. "It is desired to enlist the aid of all classes of industry, and to bring this about it is imperative that all the industries of a given region should be asked to participate whether they are now members of business organizations or not.' >> Before describing the plan of organization which is being developed by the War Industries Board for decentralizing the production of war supplies throughout the United States, it 5 will be well for us to consider certain recent developments in Washington. Recent industrial orders and restrictions have at last placed the Government's cards upon the table, so that the industries of the country may now know pretty definitely what is in store for them in the coming months. The priorities' classification HERE has been created in the War Industries Board in Washington a Priorities Board, consisting of the Chair- man of the War Industries Board, the Priorities Com- missioner, a member of the Railroad Administration, a mem- ber, of the United States Shipping Board and Emergency Fleet Corporation, a member of the War Trade Board, a member of the Food Administration, a member of the Fuel Adminis- tration, a representative of the War Department, and a mem- ber of the Allied Purchasing Commission. This Board has adopted for the purpose of guiding all Governmental agencies in the production, supply, and distribution of raw materials, finished products, electrical energy, fuel and transportation, the following general classification of industry for the purposes of priority treatment. Ships-Including destroyers and submarine chasers. Aircraft- Munitions, Military and Naval Supplies and Operations-Including building construction for Government needs and equipment for same. Fuel-For domestic consumption, and for manufacturing necessities. named herein. Food and Collateral Industries-(a) Foodstuffs for human consump- tion, and plants handling same. (b) Feeding stuffs for domestic fowls and animals, and plants handling same. (c) All tools, utensils, implements, machinery, and equipment required for production, harvesting and distribution, milling, preparing, canning and refining Foods and Feeds such as seeds of Foods and Feeds, Binder Twine, etc. (d) Products of collateral industries, such as Fertilizer, Fertilizer Ingredients, Insecticides and Fungicides, Containers for Foods and Feeds, collateral products. (e) Materials and equipment for preservation of Foods and Feeds, such as Ammonia and other refrigeration supplies including ice. 6 Clothing p For civilian population. Railroad-Or other necessary transportation equipment, including water transportation. Public Utilities-Serving war industries, Army, Navy and civilian population. Included with the foregoing list are all necessary raw materials, partially manufactured parts, and supplies for com- pletion of these products. This list of war industries is to be given as nearly as pos- sible 100 per cent of their requirements. This, the Board points out, "will in some cases practically exhaust and in other cases substantially reduce the available supply, resulting in an acute shortage of certain basic raw materials and products." The Board adds that industries should begin now to plan their activities for the remainder of the calendar year 1918, "when the basic materials entering into the manufacture of many products will be largely, if not entirely, absorbed in direct and indirect war work, and transportation both by rail and water will be acutely congested in several sections, result- ing in the curtailment of production and distribution of such basic materials. The War Industries Board earnestly urges each non-essential industry to look the situation squarely in the face now and plan accordingly, curtailing wherever neces- sary, operations not falling within the general classification of purposes demanding preference treatment." * The purport of this classification is unmistakable. It means that we are in for a period of very thoroughgoing indus- trial readjustments induced by the insatiable demand for war materials. The War Industries Board has acted very wisely in making the facts clear at this time. While it does not wish to alarm unnecessarily the industries of the country, it is felt that it is imperative, if the losses involved in such readjusting are to be kept down to a minimum, that business men know in advance what the future has in store, in order that careful planning and prompt action may forestall serious and lasting injury to non-war industries. *This information is taken from War Bulletin, No. 35, issued by the War Service Committee of the Chamber of Commerce of the United States, May 20, 1918. 7 Restriction of new building operations HE War Industries Board, with a view to promoting the successful prosecution of the war, states that T "all new undertakings not essential to and not contributing either directly or indirectly toward winning the war, which involve the utilization of labor, material and capital required in the pro- duction, supply or distribution of direct or indirect war needs, will be discouraged notwithstanding they may be of local importance and of a char- acter which should in normal times meet with every encouragement; and that in fairness to those interested therein notice is hereby given that this Board will withhold from such projects priority assistance, without which new construction of the character mentioned will frequently be found impracticable, and that this notice shall be given wide publicity, that all parties interested in such undertakings may be fully apprised of the diffi- culties and delays to which they will be subjected and embark upon them at their peril." This applies to industrial plants which cannot be utilized in the prosecution of the war and to the construction by states, counties, cities, and towns of public buildings and other im- provements which will not contribute towards winning the war. A convenient means of preventing new building operations that are not essential to the prosecution of the war is found in the exercise of priorities in the issue of securities. A Capital Issues Committee of the War Finance Corporation now passes upon applications with respect to proposed issues of bonds, notes, certificates of indebtedness, and other securities, state, county, municipal, or corporate. (Detailed instructions to applicants with respect to such issues may be found in the Federal Reserve Bulletin, March, 1918, pp. 168-171.) Fuel and transportation priorities. T HE coal supply, not only in the United States, but throughout the world, will not prove adequate during the coming year to meet the needs of both war industries and non-war industries. The Fuel Administration has there- fore arranged the following list of preferred industries:* Aircraft-Plants engaged exclusively in manufacturing aircraft or supplies and equipment therefor. Ammunition-Plants engaged in the manufacture of ammunition for the United States Government and the Allies. Army and Navy cantonments and camps. Arms (small)-Plants engaged in manufacturing small arms for the United States Government and the Allies. Chemicals-Plants engaged exclusively in manufacturing chemicals. Coke plants. Domestic consumers. Electrical equipment-Plants manufacturing same. Electrodes Plants producing electrodes. Explosives-Plants manufacturing explosives. Farm implements-Manufacturers exclusively of agricultural im- plements and farm-operating equipment. Feed-Plants producing feed. Ferro-alloys-Plants producing same. Fertilizers Manufacturers of fertilizers. Fire brick-Plants producing same exclusively. Food-Plants manufacturing, milling, preparing, refining, preserving and wholesaling food for human consumption. Food containers-Manufacturers of tin and glass containers and manufacturers exclusively of other food containers. Gas-Gas producing plants. Guns (large)-Plants manufacturing same. Hemp, jute, and cotton bags-Plants manufacturing exclusively hemp, jute, and cotton bags. Insecticides-Manufacturers exclusively of insecticides and fungi- cides. Iron and steel-Blast furnaces and foundries. Laundries. Machine tools-Plants manufacturing machine tools. Mines. Mines-Plants engaged exclusively in manufacturing mining tools and equipment. Newspapers and periodicals-Plants printing and publishing exclu- sively newspapers and periodicals. Oil-Refineries of both mineral and vegetable oils. * Trade Publication No. 1, April, 1918, U. S. Fuel Administration, Educational Division. 9 Oil production-Plants manufacturing exclusively oil well equipment. Public institutions and buildings. Public utilities. Railways. Railways-Plants manufacturing locomotives, freight cars and rails, and other plants engaged exclusively in manufacture of railway supplies. g Refrigeration — Refrigeration for food and exclusive ice-producing plants. Seeds-Producers or wholesalers of seeds (except flower seeds). Ships (bunker coal)—Not including pleasure craft. Ships-Plants engaged exclusively in building ships (not including pleasure craft), or in manufacturing exclusively supplies and equip- ment therefor. Soap-Manufacturers of soap. Steel Steel plants and rolling mills. Tanners-Tanning plants, save for patent leather. Tanning extracts-Plants manufacturing tanning extracts. Tin plate-Manufacturers of tin plate. Twine (binder) and rope-Plants producing exclusively binder twine and rope. Wire rope and rope wire-Manufacturers of same. Automobile plants are not in the list. It should be noted that all industries not included in the list above will have to wait for both fuel and transportation until the requirements of the above have been fully met. This may mean in many cases waiting indefinitely. At the same time the Fuel Administration has issued a fuel oil order with the explanation that "the shortage in the amount of fuel oil which can be delivered because of transportation conditions is such that it is clearly a wasteful and unreason- able practice to deliver such fuel oil for uses which are not intimately and directly connected with the prosecution of the war. The classes specified and the precedence in selling, if the 'pinch' comes in oil, is fixed as follows:"* Railroads, bunker fuel, and oil refineries using or making fuel oi. Export deliveries or shipments for the United States Army or Navy. Export shipments for the navies and other war purposes of the Allies. Hospitals where oil is now being used as fuel. Public utilities and domestic consumers now using fuel oil (includ- ing gas oil). * "Petroleum Age," April, 1918, p. 114. 10 Shipyards engaged in Government work. Navy Yards. Arsenals. Plants engaged in manufacture, production and storage of food products. Army and Navy cantonments where oil is now being used as fuel. Industrial consumers engaged in the manufacture of munitions and other articles under Government orders. All other classes. This applies to the entire region east of the Rocky Mountains. Restriction of imports Tsecure Τ HE greatest need of the time is for ships. In order to secure as large a volume of shipping as possible, it has been necessary for all the Allies to restrict imports of certain classes of commodities in order that the ships engaged in such trade may be used in the transportation of troops to France. The Shipping Board, in cooperation with the War Trade Board recently issued a statement listing the imports to be restricted. A corps of specialists has been giving this matter the closest attention for many weeks, and the restric- tions have been worked out so that the greatest saving of shipping space may be accomplished with the least injury to our commercial activities. Two lists of restrictions have been made the first under date of March 23, 1918, and the second under date of May 13, 1918. (These lists are given in full in the Appendix on pages 21, 22, 23.) Where these restrictions of imports apply to raw materials, manufacturers using such raw materials will find their produc- tion seriously curtailed. In other cases the restrictions affect only the dealers in the products imported. In general, of course, they mean a serious curtailment of consumption on the part of the American people. But when it is understood that these restrictions will release shipping sufficient to trans- port to France and keep continuously supplied with munitions, materials, and food from 175,000 to 200,000 soldiers, no patriotic American will deny the wisdom of the order. II Other contemplated restrictions S INCE the above orders, the Government has been work- ing out the details for other import restrictions. Chief among these is the importation of wool, which it is planned to reduce by more than one-third of the normal amount, with an entire elimination of the import of carpet wools. Rubber importations are to be reduced by about three-eighths. These orders will require a substantial retrench- ment on the part of the American people in the use of wool and rubber, and will necessitate many readjustments in manu- facturing lines. It is estimated that the wool order will release shipping sufficient to transport and keep supplied 20,000 American soldiers, and that the rubber order will release shipping sufficient to take care of 7,500 soldiers. Other restrictions which are contemplated for the near future apply to hides and skins (to release shipping for 40,000 soldiers); copper (to release shipping for about 7,000 soldiers); chromite (to release shipping for approximately 7,000 soldiers); and manganese (to release shipping for about 2,500 soldiers). New regional organization of industry ETURNING now to a consideration of the plan that has been worked out for bringing the manufacturing resources of the country into more effective coopera- tion with the Government, the country is to be divided into twenty industrial regions, as tentatively outlined on the attached map. The following plan for effecting the organiza- tion is suggested by the officials in charge: I Organize through Chambers of Commerce and other business associations Industrial Com- mittees with the principal industrial center as headquarters and such sub-divisions as are recom- mended by the business association of each district. 2 Develop such organization in various classes of industry as well as in area for greatest conven- ience, to get information of all classes of products in and between regions. Cate I 2 MAINE MASS *0# BUT; DEE POT to A. L. 19 PISANFRANCISCO CAL. SEATTLE WASH 20 OREG. NEV. IDAHO UTAH ARIZ. MONT WYO. COLO. N. MEX. Note: Change upper Peninsular of Michigan placed in St. Paul Region-all other regions same as indicated by headquarters cities bounded by heavy blue lines. I N. DAK. S. DAK. NEBR. KANS. 18 TEX. ( MINN. 16 14 OKLA. MADSAS CITY Q cirra ST DALLAS O PAUL IOWA MO. WIS. ARK ST. LOUIS 17 MEAWAYKEL CHICAGO 9 ILL. 15 MISS. MICH. IND. UCTION 13 TENN. EUPHINGMAM New regional organization of industry KY. ALA. 7 10 CLEVELANO OHIO ATLANTA O W VA GA. 12 6 ROCHESTER N. Y 5 PA. 4 FLA. S. C. PHILADELPHI 11 VA. N. C. BALTIMORE NE ar VT DEL REGIONAL 13 3 Having established such region and sub- region, through the cooperation of the best business men in each district, have a survey of the industries recorded in the hands of the Section in Washington of the War Industries Board for information to the various procurement sections. of the Government. 4 Each region may have in Washington a representative who through the Resources and Conversion Section of the War Industries Board may keep in direct contact with his region and be available to the governmental procurement divisions or the War Industries Board for prompt action in giving data from his region. The detailed form of organization suggested for each region (subject, of course, to modifications as desired to meet the needs of any region) is known as the Cleveland Plan, which has been for some time in operation. Under this plan each region is divided into eight sub-regions, an important industrial city in each sub-region being designated as a center. Each sub-region has a local War Industries Commission which coordinates all industry within its territory. Within each sub-region manufacturing is divided into the following classes: castings; forgings and stampings; machinery and machine products; rubber products; clay products; chemicals, oils, and paints; textiles and clothing; wood and leather; engineering; automotive. Other classifications may of course be added for important lines of industry. The administrative organization is as follows: In each sub-region each line of industry is placed in charge of a chair- man to be chosen by the industry. The chairmen of the various industries together constitute an executive committee for the sub-region, which is the governing body within the sub-region. The governing body of the region as a whole is an executive committee composed of the chairmen of the executive com- mittees of the eight sub-regions. Coming back to the sub-region, the chairman of each indus- try makes his own sub-classifications. For instance, under 14 castings we may have aluminum and brass castings, gray iron castings, malleable castings, and steel castings. A sub- chairman is placed in charge of each sub-classification. If the sub-classification is a large one, each sub-chairman may have a committee large enough to enable him to report promptly and in detail the capacity available in all plants in his sub- classification. With this organization in working order, detailed informa- tion of the capacity of the plants in each industry to produce materials will be made available to the chairman of the industry, and by him be communicated to the executive committee of the region. This regional committee in turn will make this information available to the Resources and Conversion Sec- tion of the War Industries Board in Washington, and through this section to the various Supply and Purchasing officers of the Government. Similarly, when Government requirements are made known to the Resources and Conversion Section of the War Industries Board, telegraphic communication from this section to the chairman of each region will promptly set the machinery in motion to secure the production of the neces- sary supplies in minimum time and with maximum efficiency. There will no longer be any necessity for individual manufac- turers to go to Washington to secure war contracts. The distribution of the production of munitions and supplies within each region will be accomplished through the repre- sentatives whom the industries themselves have chosen. Questions answered UMEROUS questions of detail may be raised here in connection with points which are perhaps not made entirely clear by the above exposition of the plan: N I Is the Government to dictate the precise form of organiza- tion within each region? The answer is that the Resources and Conversion Section of the War Industries Board has merely submitted a plan which has been tested by experience. The organization within each region is to be developed by the business men of the region along the lines which will make it most serviceable to 15 + the industries of such region. It is expected, however, that each region will model its organization rather closely after the Cleveland Plan. 2 On what basis were the regional boundaries determined, and can they be changed if locally desired? The regional boundaries practically coincide with those previously made by the Ordnance Department. It seemed wise to develop the present plan along lines already laid down by this important division of the Government. The bound- aries may be changed, however, if it be locally desired. 3 Will this organization supplant the existing organization for the procurement of Ordnance supplies? No, it will not interfere with the present Ordnance organ- ization; but the two organizations will cooperate in every way. 4 What is the relation of this organization to the National Chamber of Commerce and to the National War Service Com- mittees of the various industries of the country? It has the sanction of the National Chamber of Commerce, which body, working through local Chambers of Commerce, is developing the regional organization. It is designed to supplement the work of The National War Service Committees. 5 In case numerous regions in the United States can produce supplies required, on what basis is the award of the contract to be made? This is to be made on the basis of efficiency in meeting the Government's requirements and with a view to apportioning the industrial production of the country so that the least amount of congestion will occur. 6 Who is to decide what sub-region in any given region shall secure war work? This will be done by the Executive Committee of the region, which, it may be recalled, represents the Executive. Committees of the sub-regions. The work will be distributed with a view to efficient and prompt production, and a mini- mizing of congestion in manufacturing. 16 7 On whose recommendation and on what basis is the award to be made to a particular plant? The award will be made on the recommendation of the chairman of the particular industry in question, and with the same ends in view as in the above cases. It should be emphasized, however, that this recommendation has no bind- ing force. It is merely advisory. 8 Will Government contracts be actually awarded by this organization? No, this organization merely collects the information as to plant capacity, etc., and makes it available to the various Government procurement officials. These officials, as hereto- fore, will let the contracts. 9 May a given contract be divided among several plants? Yes, there will doubtless be many cases where a contract is distributed; in fact, it is often found that several plants working together can fill an order where no single one alone can do so. General advantages of the plan I' T will be seen at a glance that this method of enlisting the productive capacity of the nation in the service of the Government is much superior to the haphazard method that has characterized past months: I It eliminates "pull" and established connections as a factor in the awarding of contracts. 2 It eliminates the necessity of expensive and time- consuming trips to Washington in the endeavor to secure war business. 3 It saves the time of the Government procurement officials, hitherto largely wasted in conferences with individual business men. 17 4 It provides for the scientific apportionment of the work to be done to the localities and plants best adapted to the doing of the work. 5 It enables individual laborers to remain in their own communities and in their own homes, and does much to minimize the difficulties of the housing situation. 6 It permits our existing industrial equipment to be turned directly to war uses, thus saving the necessity of new con- struction with needless using up of raw materials, labor power, and transport facilities. 7 It serves to disrupt as little as possible our industrial fabric and thus to make less difficult the task of reconstruction after the war. How to make connections with this organization T HE process by which any manufacturer, however small and in whatever line, may ally himself with this organi- zation, and thus place himself in a position to secure Government work is very simple. It is merely necessary for him to communicate with the man who has been chosen to perfect the organization in his district. The men chosen, with their respective districts, are as follows: CHAMBER OF COMMERCE, Bridgeport, Conn... MERCHANTS' ASSOCIATION OF NEW YORK. CHAMBER OF COMMERCE, Philadelphia, Pa………. CHAMBER OF COMMERCE, Pittsburgh, Pa.. CHAMBER OF COMMERCE, Rochester, N. Y... CHAMBER OF COMMERCE, Cleveland, Ohio. BOARD OF Commerce, Detroit, Mich. ASSOCIATION OF COMMERCE, Chicago, Ill.... CHAMBER OF COMMERCE, Cincinnati, Ohio.. .. 9 GEORGE E. CRAWFORD, President WILLIAM F. MORGAN, President ERNEST T. TRIGG, President GEORGE S. OLIVER, President GRANGER A. HOLLISTER, President MYRON T. HERRICK, President ALLEN A. TEMPLETON, President LUCIUS TETER, President .A. CLIFFORD SHINKLE, President 1 18 MERCHANTS AND MFRS. ASSN., Baltimore, Md... CHAMBER OF COMMERCE, Atlanta, Ga... CHAMBER OF COMMERCE, Birmingham, Ala.. CHAMBER OF Commerce, Kansas City, Mo. CHAMBER OF COMMERCE, St. Louis, Mo.... MILWAUKEE COUNTY COUNCIL of DEFENCE. CHAMBER OF COMMERCE, Dallas, Texas... CHAMBER OF COMMERCE, San Francisco, Cal.. CHAMBER OF COMMERCE, Seattle, Wash. CHAMBER OF COMMERCE, Boston, Mass. WAR INDUSTRIES BOARD, 1405 Pioneer Bldg., St. Paul, Minn. D. R. COTTON, Chairman • WILLIAM H. MATHAI, President W. H. WHITE, JR., President M. W. BUSH, President FRANK D. CRABBS, President JACKSON JOHNSON, President AUGUST H. VOGEL • LOUIS LIPSITZ, President FREDERICK J. KOSTER, President A. J. RHODES, President HENRY I. HARRIMAN, President As soon as the organization is perfected, the routine work will be carried on, in many cases at least, by other men, but inquiries addressed to the foregoing will be turned over to the men in active charge of the administration of the system. Individual business men should also ally themselves with the local organization of their respective industries. The future of American business D EVELOPMENTS have come with astonishing rapidity in recent months. We appear to have completed the first stage of the war,-that of working out plans and developing an army and an industrial organization, and we are now entering in earnest into the grim business of war. One million men, two million men, five million men, and more, are to be sent abroad as rapidly as possible. If they are to be supplied with the indispensable materials for effective fighting, the productive power of this nation must be utilized in the most efficient manner possible. To check the tremen- dous onslaughts of the enemy and to drive him back out of France, out of Belgium, beyond the Rhine, and actually to 1 19 overwhelm him on the fields of battle to the end that Germany's power in the east as well as in the west may be broken, will require the expenditure of all the energy that indomitable America possesses. It is undoubtedly a task requiring several years to accomplish; but it is a task supreme- ly worthy of all that it will cost in blood and treasure. The organization for decentralizing war manufacture and enlisting the service of the small as well as the large manu- facturer in all parts of the country, as outlined above, will do much to minimize the losses which must be sustained by private industry during the continuance of the war. It cannot, however, eliminate all losses and keep all industry prosperous. When a nation is at war there are certain lines of industry engaged in the production of consumptive necessities and war supplies, which prosper as a result of the war. There are other lines, such as those producing basic raw materials and even those producing finished products, where there is a shortage of equipment for manufacturing purposes, as in precision work, power equipment, turbines, boilers, etc., which will also find themselves unusually prosperous because of the incessant demands for their products. There is a third class of estab- lishments which throughout the war will devote a part of their capacity to the manufacture of goods for individual con- sumption and the remainder to production of war supplies for the Government. But unfortunately there are other lines, particularly those not included in the priorities' classifications. mentioned above, which because of the enforcement of prior- ities' orders as to fuel and transport, and because of the falling off in the demand for their products will find themselves with a declining business and yet without adaptability for the production of war supplies. This has been the experience in Germany, in France, and in England, and it is certain to be the experience in the United States. All that remains for those engaged in non-essential indus- tries, where such industries cannot be turned to Government work, is to seek individual employment elsewhere. It is the hope of the War Industries Board that these cases may be reduced in this country to the minimum, but it is vain to hope that they can be entirely avoided. We may close with a repetition of the sound advice of the War Industries Board, which urges each "nonessential industry to look this situation. squarely in the face now and plan accordingly. >> * *War Bulletin, No. 35, Chamber of Commerce, U. S. A., May 20, 1918. 1 Sta 20 Appendix Restricted Imports-List I March 23, 1918 T HIS list is subject to the following exceptions: (1) when coming by rail from Mexico or Canada, when the goods in question originated in those countries, or in other countries from which such goods are being licensed for import; (2) when coming as a return cargo from European points and then only (a) when coming from a convenient port or (b) when loaded without delay. Agricultural Implements Animals, live except for breeding purposes Art works Asbestos Beads and ornaments Blacking, and all preparations for cleaning and polishing shoes Manufactures of bone and horn All breadstuffs except wheat and wheat flour, including imports from Europe Broom corn Candlepitch, palm, and other vegetable stearin Cars, carriages, and other vehicles All acids Muriate of ammonia All coal tar distillates except synthetic indigo Fusel oil or amylic alcohol Citrate of lime All salts of soda except nitrate of soda and cyanide of soda Sumac, ground or unground Chicory root, raw or roasted Clocks and watches and parts thereof Cocoa and chocolate prepared or manufac- tured Manufactures of cotton Cryolite, except not to exceed 2,000 long tons for the year 1918 Dials Dice, draughts, chess men, billiard balls, poker chips Eggs of poultry Electric lamps Explosives, except fulminates and gun powder Feathers, natural and artificial Manure salts Manufactures of vegetable fibres and textile grasses, except jute Fish hooks, rods and reels, artificial bait Fluorspar All fruits except pineapples and bananas All nuts except cocoanuts and products thereof Gelatine, and manufactures thereof, includ- ing all from Europe Gold and silver manufactures, including jewelry Sulphur oil or olive foots Grease Hay Honey Hops Infusorial and diatomaceous earth and Tripoli Mantles for gas burners Matches, friction and lucifer Fresh Meats Meerschaum, crude or manufactured Musical instruments and parts thereof Nickel Oil cake Oilcloth and linoleum for floors All expressed vegetable oils from Europe only Lemon oil Non-mineral paints and varnishes Pencils and pencil leads Penholders and pens 21 Perfumery, cosmetics and toilet preparations Phonographs, gramaphones, graphophones, and parts thereof Photographic goods Pipes and smokers' articles Plants, trees, shrubs and vines Plates, electrotype, stereotype and litho- graphic; engraved Plumbago or graphite (until July 1, 1918; thereafter not exceeding 5,000 long tons for remainder of 1918) Pyrites (except not exceeding 125,000 long tons to October 1, 1918) Rennets Artificial silk and manufactures thereof Soap Malt liquors, including all from Europe Wines Other beverages, including all from Europe Candy and confectionery, including all from Europe Tar and pitch of wood Toys Restricted Imports-List II May 13, 1918 Umbrellas, parasols, sunshades, and sticks for Beans, and lentils, from Europe only Dried peas from Europe only IME, Talc, and Soapstone (except from Canada). Shellfish-does not include crab meat from Japan (except from Canada and Newfoundland). Aloxite and boro-carbone Borax Cement for Building Purposes Chloride of Lime Cyanide of Soda Dairy Products Ferromanganese and Spiegeleisen All vegetables, except beans and lentils, and peas, either in their natural state or pre- pared or preserved, including all from Europe Vinegar Whalebone, unmanufactured Manufactures of wool Manufactures of hair of camel, goat and alpaca Zinc Molybdenum (except from Canada and Mexico). Tobacco Leaf (except from Cuba and the West Indies). Fish, fresh, cured or preserved (except from Canada, Mexico, New- foundland and Scandinavia). Lead Magnesite Meat Products and Preserved Meats Paraffin Pumice Starch Stone and manufactures thereof Animal Oils (except from European countries). Quebracho Wood (only for shipments coming on vessels unfit for essential imports). Except overland or by lake from Canada or overland from Mexico. 22 Argole or wine lees Bones, Hoofs and Horns, unmanufactured Baskets of wood, bamboo, straw or composi- tions of wood Cork unmanufactured, and manufactures thereof Edible substances, not specifically provided for in the tariff schedules Eggs, dried, frozen, prepared or preserved, and yolks of eggs Fans Fuller's Earth Furniture Furs and manufactures thereof (does not in- clude fur hats, fur not on the skin prepared for hatters' use, nor raw seal skins from Uruguay) Glass and Glassware (does not include lenses, opera and field glasses, optical instruments, spectacles, eye-glasses, goggles, surveying instruments, telescopes, microscopes and plates or discs for use in the manufacture of optical goods) Glue and Glue Size Glue Stock and Raw Hide Cuttings Hair, human, and manufactures thereof Horsehair, artificial, and manufactures thereof Indigo, synthetic Ivory, animal, and manufactures thereof Licorice Root Moss and Sea Weed Paper and manufactures thereof (does not in- clude books and other printed matter) Paper Stock, crude (does not include wood. pulp) Straw and Grass (unmanufactured and manu- factures thereof) Tea Waste, siftings or sweepings Vanilla Beans Except overland or by lake from Canada, overland from Mexico, or as a return cargo from European countries, and then only when shipped from a convenient port and without delay. 23 Co The Duty of the Consumer in War Time By Harold G. Moulton The Union League Club of Chicago 1918 After you have read this pamphlet, please pass it on in order that the message it carries may reach the largest number of persons Harold G. Moulton, who has a national reputation as an economist, is a member of the Department of Political Economy of the University of Chicago; Acting Editor of the Journal of Political Econ- omy; Secretary of the Western Economic Society; Author of Industrial Conscrip- tion; Some Dangers of Price Control; Unusual Business, Not Business as Usual; Your Business and War Business, etc.. With J. M. Clark and W. H. Hamilton, he is joint Editor of a forthcoming volume of readings on The Economics of War and Reconstruction, to be published by the University of Chicago Press. Copies may be obtained of the War Committee of The Union League Club of Chicago at the following prices, delivery prepaid: Single copies One hundred copies One thousand copies · 5 cents 2 cents each - 1 cent each The duty of the consumer in war time WHAT is the duty of the consumer in war time? Shall he practice the most rigid economy or shall he save only in the use of a few necessities such as wheat and sugar, where there is a conspicuous shortage? Can the war be prosecuted best by a retrenchment of unessential consumption or must we have a large production and sale of luxuries as a means of providing the funds with which to finance the war? The consumer has been subjected to much conflicting advice on this subject. At the outbreak of the war it was promptly urged by the President that everybody should economize as much as possible. But following a slight shock to industry, the argument was developed that we must have business as usual. Most of the newspapers of the country have repeatedly urged the necessity of maintaining business much as usual, many pamphlets have been widely distributed by manufacturers, which urge that the continuation of all lines of business is imperative if we are to finance the war successfully, and advertisements of luxuries are skillfully written with the idea of showing that it is one's patriotic duty to buy such commodities. As the months have gone by, however, government agencies have increasingly insisted that rigid economizing is indispensable if we are to win the war, and that the purchase of nonessential commodities is therefore little short of treachery. Amidst all this conflicting opinion and advice the consumer has found much difficulty in knowing precisely where lies the path of patriotism. It is the purpose of this paper to present in untechnical language: (1) the economic reasons why rigid retrenchment of con- sumption is considered necessary, and (2) the ways in which we can most effectively aid the government in the great problem with which it is confronted. Arguments for business as usual THE HE argument for continuing the production and sale of luxuries assumes several forms. The first may be called the money argument. "To prosecute the war successfully our industries must be kept busy, and they must make money. The only way in which industries at large can do this is for as many of them as possible to do business with others than the Government. And this volume of non-war business must be big enough and with profits great enough to meet all industrial expenses and, in addition, to supply funds for Government war needs. Hence, unless our non-war business can be made to pay for the war the war will eat us down to poverty. Therefore, the need of non-war business is imperative beyond any question. Unless industries make money they cannot produce money for Gov- ernment use. They cannot pay taxes. They cannot buy bonds. Trying to confine the industries of the United States to war industries exclusively is an effort to send the American dollar through a narrowing spiral that eventually comes to a dead stop." ""* * Charles W. Mears, the Winton Co., Cleveland, Ohio, in the New York Sun, May 12, 1918. A second form of the contention for business as usual may be called the unemployment argument. It is urged that a curtailment of luxuries. will throw many laborers out of employment, forcing them to become public charges or subject to the beneficent assistance of our charitable organizations—thus increasing social discontent and seriously impair- ing the national morale. A third form of the argument is that a curtailment of luxuries might cause a financial panic. The contention here is that the modern industrial system is extremely delicate and complex and that in conse- quence any serious curtailment of the production and sale of luxuries. might precipitate a financial panic that would not only destroy non- essential lines of production but would paralyze all industry and hence make the successful prosecution of the war impossible. We may briefly consider each of these arguments. The money argument HERE are two fallacies inherent in the money argument. The first is the assumption that war industries do not produce as great monetary profits as non-war industries; and the second is the assump- tion that what the government needs is funds (money and credit). Now with reference to the first fallacy, if it be granted that the man power and the factory power of the United States can ultimately be diverted from luxuries to war industry, we shall not find then that we have a "narrowing spiral that eventually comes to a dead stop." Monetary wages are as high in war industries as in non-war industries; and monetary profits are just as great in war industries as in non-war industries. It is only during the period of transferring labor and capital from non-war to war industry that we find any lessening of wages and profits. This has been the practical experience of every nation at war. The more important fallacy in the above argument, however, lies in the assumption that the fundamental need of the government is for money. If dollars and checks could be used in shooting at the Huns, then it would make no difference whether the "money and credit" in- struments required were earned in war industries or non-war industries. But since the actual fighting requires not money, but munitions, mate- rials, supplies, and food, it makes all the difference in the world whether money and profits are earned in the creation of the things with which we fight or the things that cannot be used for war purposes. When wages and profits are earned in the production of war supplies we have the wages and profits as before, but in addition we have things which can be used in waging the war. This problem of the relation of money to the waging of war need not be left, however, merely in the form of a theoretical statement. It has been amply established during the course of the war that the pro- duction of an abundance of war supplies is the prime necessity and that this can be accomplished only by a diversion of energy from the production of luxuries to the production of war supplies. For instance, our government found during the fiscal year ending June 30, 1918, that it was able to spend only about one-half the funds which it had contemplated spending, for the simple reason that the supplies which it wished to purchase had not been produced. That our maximum efficiency for war can be obtained only by a thoroughgoing diversion of energy from non-war to war lines is now recognized by all of the governmental agencies concerned with the problem, and extensive plans are now under way designed to secure the necessary conversion to war industry. This has been the experience, moreover, of all the warring nations of Europe.* * See Unusual Business, Not Business as Usual, for a fuller discussion of this subject. Copies may be secured from The Union League Club of Chicago. The unemployment argument THE HE argument that a curtailment of the consumption of luxuries would cause the closing down of factories and result in serious unemployment may now be considered. There can be little question that a very rapid curtailment of nonessential consumption twelve months ago would have thrown many laborers out of work for a con- siderable period of time. War industry had not then developed to a point where it could at once utilize all the laborers who are normally engaged in the production of nonessentials. But the situation now is totally different. The increasing drain on our man power to meet the Army and Navy requirements, coupled with the enormous production. of war supplies, has caused an actual scarcity of laborers in this country. In many lines it has become extremely difficult to secure the necessary labor, and there will be an ever increasing shortage of labor as the war continues. When months ago it was argued that a producer of luxuries was competing with the government for labor power needed for the produc tion of war supplies, it sounded to many people like idle theory. It seemed too indirect a competition to have any reality. But a few weeks ago it became almost impossible to hold laborers for a certain impor- tant war work because manufacturers of musical instruments were luring these men away with the offer of very high wages. This was a case where the competition was directly traceable. Most convincing testimony of the serious shortage of labor for war industries that now exists is furnished in a statement issued by the Committee on Public Information, June 27, 1918. The statement is as follows: "War industries of the United States are at this moment short between 300,000 and 400,000 common laborers and the lack of workers in the coal industry is imperilling all other war production. "The solution lies in the recruiting of workers from non- essential industries as quickly as possible." "" It has often been urged that there are many workers engaged in the production of nonessentials who are not adapted for the production of war supplies or necessities, and who would, therefore, be seriously affected if nonessential industries should be too rigidly curtailed. It must be answered that when social and military requirements demand a given course of action, it is impossible to let the consequences to scattered individuals be the decisive factor in the situation. We cannot let sympathy for the few who may be seriously inconvenienced as a result of the war stand in the way of diverting the energy of the rest of society to the fields in which it is imperatively needed. To take such a stand might mean failure to become effectively mobilized in time to win the war. The boys who have crossed the water are offering life itself, where necessary; many are daily making the supreme sacrifice, cheerfully and without reservation. The losses which those who are thrown out of their customary employment by a curtailment of nonessential production may have to sustain are inconsequential at the worst when compared with those of our soldiers in the field. It should be emphasized in this connection, moreover, that there is essential work of one sort or another for every person and that the curtailment of nonessential industries means shifting of employment- not unemployment. On this question of sacrifice I quote from a statement of David Lloyd George: "We cannot have absolute equality of sacrifice in a war. That is impossible. But we can have equal readiness to sacri- fice from all. There are hundreds of thousands who have given up comfortable homes and exchanged them for a daily communion with death. Multitudes have given up those whom they loved best. Let the nation as a whole place its comforts, its luxuries, its indulgences, its elegances, on a national altar, consecrated by such sacrifices as these men have made." The panic argument T HE argument that a curtailment of luxuries might cause a finan- cial panic was often heard in the early days of the war. It was believed that reduction of consumption would cause many businesses to close their doors, make it impossible for them to pay their loans to the banks, and hence involve the banks in difficulties which would precipitate a widespread financial and business disaster. Now what- ever merit there may have been in this argument early in the war- and the argument possessed little merit even then-it has no founda- tion at the present time. We have been repeatedly assured by the members of the Federal Reserve Board that the Federal Reserve system is able to avert any general panic and to tide American business over any breaks that might be caused by readjustments incident to the war. This does not, of course, mean that there may not be some individual business failures; it merely means that there will be no general busi- ness paralysis. Moreover, the experience of all the European nations, none of which has had a general business panic, affords conclusive evidence that the panic argument is a fiction. Curtailment of luxuries in order to increase the supply of necessities T HUS far we have been discussing the need of curtailing luxuries in order that additional war supplies may be produced. It remains to consider the relation of a curtailment of luxuries to an in- creased production of necessities. We have all been urged to economize with certain forms of food in order that more may be left for shipment to our Allies. The food problem, however, goes much deeper than con- serving the use of an existing stock of foodstuffs. The real food prob- lem is how to secure a continuous supply of food large enough to meet the requirements of this nation and our Allies. This is more a question of production than of consumption-that is to say, conserva- tion in consumption is less important than large production. Why is it that the food supply of the allied nations is short? It is mainly because of the diversion of man-power from agricultural to war pursuits. To overcome this shortage in agricultural production additional labor must be found for agriculture, and this labor can come only through a release of those engaged in less essential lines of production. In other words, it is imperative that less essential lines of production be eliminated not only in order that the munitions and materials necessary for fighting may be abundant, but in order that the armies of the allied nations may be adequately fed and in order that the civilian population may have sufficient food to sustain itself in a state of physical efficiency for the work that must be done behind the lines. This, of course, applies not only to the production of food; it applies equally to the other fundamental necessities of life. As an ever increasing percentage of our man power is drawn over- seas, the problem of producing adequate amounts of essentials becomes increasingly difficult. There is no possible escape from a substantial shortage of the necessities of life other than through a diversion of productive energy from the nonessential to the essential industries. It is not usually understood that the chief cause of the enormously high prices of the necessities of life at the present time is their rela- tive scarcity. The supply of necessities in this country has not mate- rially increased but the demand for them, owing to the requirements of our Allies, has enormously increased. We can prevent a still further soaring of prices only by increased production of necessities-increased production to be accomplished, let it be repeated-through a diversion of productive power from the nonessential lines. The wealthy have often been urged since the war started to spend lavishly on luxuries and to economize on necessities in order that the necessities may remain for consumption by the poor. This is sheer shortsightedness; for the energy devoted to the production of luxuries. for consumption by the wealthy would, if diverted to the production of essentials, give us a supply of the necessities of life large enough to permit everyone to have sufficient for physical efficiency. On the other hand, the result of a policy of spending lavishly on luxuries is an inadequate production of necessities and hence prices so high as to cause real privation and lessened industrial efficiency among the masses. Even the blind can see that those engaged in producing luxuries cannot at the same time be engaged in producing necessities. The importance of maintaining an adequate production of the neces- sities of life and of preventing an enormous rise of prices cannot be too strongly emphasized. In a war of attrition such as this, physical deterioration of the masses of society in consequence of inadequate nourishment results in a serious decline in national morale; and this is a decisive factor in the final outcome of the struggle. Food and other physical necessities will win the war. We must therefore not only conserve food and other necessities, but, more important, we must insure ample production of them through a lessening of the production of nonessentials. It is difficult for us, far distant from the scene of conflict and still young in the war, to realize the grim need of more food and other basic necessities. According to the most reliable computations nearly 40 per cent of the agricultural area of France has been lost to cultiva tion since the war began and the fertility of the most important crop producing area has declined from 20 to 25 per cent. This means that unless we increase our exports of food a large part of the population of France will shortly be close to actual starvation.* If the allied nations are to have the physical stamina with which to emerge victori- ous from this world conflict, the United States of America must, through a diversion of productive energy, supply the basic necessities for existence and for efficiency. • See article by Walton H. Hamilton on the Requisites of a National Food Policy, in the Journal of Political Economy, June, 1918. What are nonessentials? E have been speaking of the diversion of energy from nonessen- tial industries to those that are necessary for the prosecution of the war. But what are these nonessential industries of which we speak? Is it possible to distinguish between essential and nonessential commodities? Because it is difficult to draw a clean line of demarcation between absolute essentials and dispensable commodities, many people are inclined to say that nothing is nonessential. Perhaps the difficulty may be avoided by the use of the terms more essential and less essential rather than essential and nonessential. The best definition that I have heard of nonessential consumption is "all consumption not required for maintaining physical efficiency." Every one knows as a matter of fact that his ancestors did not enjoy the amount of conveniences and luxuries to which this generation has fallen heir. Nearly every one knows from his own experience that he has not during his own lifetime always possessed the same high standard of living which he now enjoys. Every one knows, moreover, that he can substantially retrench in the matter of personal consumption without lessening his efficiency one iota. The question which every individual must put to himself is not, Can I afford to purchase this com- modity? but, Can the nation afford to have me purchase it? Have I the right through purchasing nonessentials to compete with the govern- ment for the limited supply of social energy which we call Labor and Capital? The question always to be asked before purchasing is "Can I possibly do without it?" Each person must face the issue squarely that whenever he purchases commodities which he can do without, he is working at direct cross purposes with the government, which is trying to secure labor and capital for war industry, and that he is thereby aiding and abetting the enemy. Although the government has not stated explicitly what industries are nonessential, we have not been left entirely without guidance in the matter. In the distribution of raw materials, fuel, and transporta- tion facilities, it has been necessary to draw up lists of industries which are to have priority treatment. In other words, while the governmental agencies have not defined what are nonessentials, they have nevertheless specifically named essential industries. These* in the order of their priority are as follows: Ships Including destroyers and submarine chasers. Aircraft. WEARING APPAREL Munitions, military and naval supplies and operations- Building construction for government needs. Equip- ment for same. Fuel-Domestic consumption. Manufacturing necessi- ties named herein. A more detailed list of industries that are to be granted priority treatment in the matter of fuel and transport facilities will be found in the Appendix. Moreover, the forthcoming tax bill will contain a long list of commodities regarded as luxuries and hence subject to heavy taxation. Food and collateral industries. Clothing-For civilian population. Railroad-Or other necessary transportation equip ment, including water transportation. Public utilities-Serving war industries, Army, Navy, and civilian population. It may perhaps be of service to individuals seeking light in the matter of economizing if a concrete list of commodities be presented as a basis for discussion. I do not set myself up as an arbiter in the matter of essentials versus nonessentials, but I think all of us will be aided in making our individual sacrifices if we talk about specific cases rather than pass the matter by with vague generalities. As a basis for consideration of this subject I have therefore selected from the United States Census on Manufactures the following commodities. which are not included among the lists of essential industries men- tioned on the preceding page. Let me add that this list is by no means all inclusive. It has been selected somewhat at random. It is believed, however, to be representative of a large number of commodi- ties which many people might regard as "less essential.” MISCEL- LANEOUS EDIBLES HOUSE FURNISHINGS Plumes; artificial flowers; passementerie; lace; furs; canes; jewelry; cosmetics; perfumes; curling irons; fans; powder puffs; fancy bags; fancy boots and shoes; opera glasses; silk hosiery and underwear; sporting outfits. { Liquors; tobacco; confectionery; chewing gum; pat- ent medicines; pastries. Art goods; pictures; mirrors; billiard tables; china decorating; glassware; carpets and rugs; ornamental clocks and watches; fancy work materials; furniture. Pleasure cars; pleasure motorcycles and bicycles; toys; fancy stationery; photographic supplies; society badges; emblems and regalia; musical instruments; poker chips and playing cards. War Bulletin, No. 35, Chamber of Commerce of the United States, May 20, 1918. I fancy that in connection with particular commodities in this list there would be a wide diversity of opinion as to whether they are necessities or not. I suppose the truth is that certain of these com- modities are necessities for some people and others of them necessities for other people. But certainly all of them are not necessities for everybody. It is not expected, however, that there should be universal agreement; and it is because of this fact that the government has hesitated to make out a definite list of nonessentials. In the nature of the case, it seems better to leave the decision to individual con- siderations. It will perhaps be of service, however, to show concretely in one or two instances what the continued consumption of these commodities means in terms of war work. The elimination of the manufacture of confectionery, not including ice cream, would release 53,000 per- sons for war work, and release fuel for war purposes of the following amounts: 81,000 tons of anthracite coal; 217,000 tons of bituminous coal; 14,000 tons of coke; 23,000 barrels of oil and gasoline; and 689 million cubic feet of gas. One often hears the statement, however, that we need confectionery in order to furnish the necessary sweets. The answer to this is that we can take the sweets straight in the form of sugar without a diminution in food value. It may prove of interest in this connection to note that it was discovered in France that 3,000 laborers were engaged in the making of loaf sugar. This was promptly stopped and the 3,000 laborers engaged therein were put to producing war supplies. Since 1906 the acreage devoted to tobacco in the United States has increased 77 per cent; in 1916, the land so devoted and therefore with drawn from food production was 1,412,000 acres. Tobacco land, moreover, requires the best of soils. There are 179,000 wage earners engaged in the manufacture of tobacco in this country. Smokers are, moreover, now supporting lavish advertisements of at least 12 different brands of cigars, cigarettes, and tobacco. A reduction in the number of brands would not only save advertising space, but it would greatly reduce the amount of tobacco which is held in stocks for sale, and thus effect enormous savings both in materials and in productive power. It may be argued by some on reading the above list that many of these things are necessary for aesthetic and recreational purposes,- that if we are compelled to forego them people will become discour aged and rapidly grow weary of the war. With reference to the recreational argument, it must be borne in mind that the suggestion to curtail purchases of these commodities does not involve a destruction of existing supplies. It merely means that additional plumes, opera glasses, furs, art goods, pictures, billiard tables, household furnish- ings, pleasure cars, musical instruments, etc., should not be produced. • ¡ No one can seriously contend that the American people cannot get along a few years with the existing supply, or very nearly the existing supply, of such commodities. And if any one contends that powder puffs, fancy sporting outfits, oriental rugs, and decorated china are necessary to national morale, he merely ignores the past history of the human race. We must not forget that this war is not a silk stocking and kid glove affair. We must not forget that our enemies are fore- going the consumption of these unimportant commodities and are diverting every ounce of their energy to the winning of the war. In this connection one often hears the statement that we may be forced before the war is over to forego most of the luxuries and con- veniences of life, but that, thank God, we have not yet reached that point. But we cannot afford to wait for the pressure of the enemy to force us to rigid economy; such a policy would mean that during the interval we would be fighting with one hand tied behind our backs, we would be going backward in the struggle rather than for- ward. This is not an untrue description of the experience of our Allies to date. Too often since 1914 the Allies have played a waiting game with the notion that time is on their side; while the enemy meanwhile has seized time by the forelock and made it serve his purposes. Granting that with America in the fight, victory will ulti- mately be achieved, a waiting policy will nevertheless seriously prolong the war and exact an enormous toll in human lives. Shall we allow ourselves gradually to be impoverished through a policy of "living for the day, with hopes for the morrow," or shall we now voluntarily economize to the end that we may produce the enormous quantities of materials and supplies required for a speedy victory? Curtailment of consumption in line with government restrictions I any one has any lingering doubts that a reduction of consumption in the less essential lines is required by or in accord with national policy, he need merely reflect that such curtailment of consumption fits in with a curtailment of production which is to be effected by the government through the enforcement of priority orders. Within the next year, because of an inadequate supply of raw materials, fuel, transport facilities, and man power, the government will be forced to curtail production in the less essential lines.* We can be of great aid to the administration in enforcing these regulations by curtailing now the consumption of such commodities. F * For a detailed description of these regulations see, Your Business and War Business. Copies may be obtained from the Union League Club of Chicago. Attention should also be called to significant restrictions of imports that have recently been made by the War Trade and Shipping Boards. The imports of something like 200 commodities have been seriously curtailed in order to release shipping for use in trans-Atlantic transport. These restrictions will require a substantial reduction of consumption. on the part of the American people in the commodities affected, but when it is understood that they will release sufficient ships to transport to France and keep continuously supplied with munitions, materials, and food from 175,000 to 200,000 soldiers, there will be few who will not cheerfully accept the sacrifice in consumption that is entailed. The forthcoming federal tax law will impose unprecedentedly high rates on retail sales of a wide variety of luxuries. As soon as the law becomes operative one will hear the argument on every hand that it is a duty to buy these luxuries and thus furnish the government with the necessary revenue. Now the truth is that the purpose of this taxation of luxuries is not to procure revenue, but to deter people from pur- chasing such commodities, thus hastening the diversion of productive energy to war industries. A word about hoarding THE HE consumer is often tempted when a shortage in food supplies or other necessities appears imminent to protect his own interests by purchasing in advance an adequate supply for all emergencies. Even where a serious shortage is not threatened he is often impelled to hoard commodities for future use because of the advice of dealers who urge the public to buy now because later prices will be even higher. This policy of hoarding, which has been all too common since the war began, often results in overstimulating the production of both necessities and luxuries at a time when the War Industries Board tells us that they should not be stimulated, owing to a shortage of labor power. Moreover, so long as we rely upon voluntary rather than coercive methods, a person who hoards in the face of a general scarcity is engaged in a kind of “slacking," unwilling though it may be. He is putting personal comfort above the general welfare of the nation's needs. Hoarding often means that those members of the community who play the game squarely and buy only in such quantities as are necessary from week to week find that when the pinch comes they must actually do without, whereas if nobody had hoarded everyone might continu- ously have had at least a minimum of such commodities for consump- tive purposes. Among the well-to-do classes the very high prices that result from hoarding of scarce commodities is not so serious, but among those whose incomes barely suffice at best to maintain themselves in a state of physical well-being, it often means serious privation and lessened industrial efficiency. If we are to escape during the course of the war a seriously unbalanced social situation and consequent social disorders, it is indispensable that we play the game with a full recog- nition that national requirements are of first importance. Individual good must everywhere be subordinated to the general good. We must follow explicitly the government's requests with reference to the con- servation of the basic essentials of life. Responsibility of the civilian I' T has been the policy of our government to coerce the American people as little as possible-to rely upon voluntary action by the public for the co-operation necessary to the effective prosecution of the war. The government looks to us, therefore, voluntarily to aid its program of industrial readjustment by doing our part as consumers,— by refusing to buy the things with which we can dispense and by devoting the money thus saved to the payment of taxes and to the purchase of Liberty Bonds and War Savings Stamps. This voluntary co-operation will be successful only if every person realizes that however small his individual sacrifice may appear it is nevertheless imperatively required. One of the greatest dangers is the prevalent assumption that a small saving is too insignificant to be of consequence. One often hears the statement, How will a sacifice on my part of 15 cents a day increase the number of ships and war supplies required by the government? There is an old jingle begin- " which ning, "Little drops of water, Little grains of sand should be recalled in this connection. A saving of unnecessary con- sumption amounting to 15 cents a day by one hundred million Amer- icans would mean a saving of $5,475,000,000 a year. A saving of 15 cents a day per family would mean roughly one billion dollars a year. The Thrift and War Savings Stamps give us the facilities for trans- ferring these little savings to the government without inconvenience or trouble. One should always remember, moreover, that all these reductions in consumption, and the consequent investment in War Savings Stamps, mean that labor and capital are automatically released from the production of unnecessary commodities and made available for the creation of a like amount of indispensable war supplies. • We have reached a stage now in the prosecution of the war in which the fundamental requirements of the situation are perfectly clear. With more than a million men already in France and with shipping facilities increasing with great rapidity, the prime necessity of the time is an enormous increase in the production of war supplies and materials. To check the military power of the enemy, and to drive him back out of France, out of Belgium, beyond the Rhine, and actually to overwhelm him on the fields of battle, will require all the power that America, with its geographic handicaps, can amass. It is easy to underestimate the difficulties in the task before us; it is the popular thing to decry the military strength of the Germans and to assume that they are "about through." It is the fashion to say that even if Paris and the Channel ports were taken the war would not be ended. I grant this. But may it not be equally true that with the enemy driven out of France and with Berlin in the hands of the Allies the war would not be ended? There is as yet no evidence that Ger- many will not defend her gains in the East to the last ounce of her strength. But in any event the road to Berlin is beset with well-nigh insuper- able obstacles. We cannot afford to forget that it is one thing to check an offensive of the enemy and that it is another thing, under the conditions of modern warfare, to carry through an offensive that will completely break the military power of the opposition. One thing the war has absolutely demonstrated, that if the human losses are to be kept at a minimum, the attacking party must have over- whelming superiority in explosives, big guns, and materials and sup- plies of every description. The question which every civilian must therefore ask himself is, Shall I do what little I can through personal sacrifice to lessen the human toll that is to be exacted as the price of victory? We must not forget that it is only because the Germans have cen- tered all their energy on the production of necessities and war supplies that they have been able to accumulate the stupendous quantities of materials and supplies necessary to the waging of offensive after offensive on their far-flung battle lines. We must not forget that it is this that made it possible for General Ludendorff to state in March, 1918, that the Germans were quantitatively superior to the Allies in every form of war material—a statement which has not been officially denied and which subsequent events have not disproved. We must not forget that in this death grapple, victory will lie with those who are strong in the effective weapons of warfare and strong in the material necessities of life. Any admission that the United States of America is not willing to make the sacrifice of accustomed luxuries would be an admission that we are not willing to pay the price for making the world a decent place for ourselves and our children to live in. It would be an admission, moreover, that we do not desire victory as ardently as does the enemy. APPENDIX List of preferred industries* Aircraft-Plants engaged exclusively in manufacturing aircraft or supplies and equipment therefor. Ammunition-Plants engaged in the manufacture of ammunition for the United States Government and the Allies. Army and Navy-Cantonments and camps. Arms (small)-Plants engaged in manufacturing small arms for the United States Government and the Allies. Chemicals-Plants engaged exclusively in manufacturing chemicals. Coke Plants. Domestic consumers. Electrical equipment-Plants manufacturing same. Electrodes Plants producing electrodes. Explosives-Plants manufacturing explosives. Farm implements-Manufacturers exclusively of agricultural implements and farm operating equipment. Feed-Plants producing feed. Ferro-alloys Plants producing. Fertilizers Manufacturers of fertilizers. Fire brick-Plants producing exclusively. Food-Plants manufacturing, milling, preparing, refining, preserving, and whole- saling food for human consumption. Gas-Gas producing plants. Food containers-Manufacturers of tin and glass containers and manufacturers exclusively of other food containers. Guns (large)-Plants manufacturing same. Hemp, jute, and cotton bags-Plants manufacturing exclusively hemp, jute, and cotton bags. Insecticides Manufacturers exclusively of insecticides and fungicides. Iron and steel-Blast furnaces and foundries. Laundries. Machine tools-Plants manufacturing machine tools. Mines. Mines Plants engaged exclusively in manufacturing tools and equipment. Newspapers and periodicals-Plants printing and publishing exclusively newspa- pers and periodicals. Oil-Refineries of both mineral and vegetable oils. Oil production-Plants manufacturing exclusively oil well equipment. Public institutions and buildings. Public utilities. Railways. Railways-Plants manufacturing locomotives, freight cars and rails, and other plants engaged exclusively in manufacture of railway supplies. Refrigeration Refrigeration for food and exclusive ice-producing plants. Seeds-Producers or wholesalers of seeds (except flower seeds). Ships (bunker coal)-Not excluding pleasure craft. Ships Plants engaged exclusively in building ships (not including pleasure craft) or in manufacturing exclusively supplies and equipment therefor. Soap-Manufacturers of soap. Steel-Steel plants and rolling mills. Tanners-Tanning plants, save for patent leather. Tanning extracts-Plants manufacturing tanning extracts. Tin plate-Manufacturers of tin plate. Twine (binder) and rope-Plants producing exclusively binder twine and rope. Wire rope and rope wire-Manufacturers of same. Automobile plants are not included in the list. Trade Publication No. 1, April, 1918, U. S. Fuel Administration, Educa- tional Division. T HERE is sound reason for believing that we shall be confronted with a grave unemployment problem during the next few months and until war workers and returning soldiers can be reabsorbed into normal industry. The resump- tion of usual industry will be slow in many important branches. Only prompt action by government and municipal agencies through the inauguration of public works on a large scale can avail in meeting the impending critical situation, the consequent acute suffering and the unrest that will follow in the wake of wide-spread idleness. Interrupted work should be resumed at once; deferred work should be begun; new work contemplated for a later date should be promptly planned and be taken up now. The community should not postpone public work while awaiting lower costs. The cost of human discontent and re- sentment will overbalance a small percentage on monetary cost. We urge you to read this pamphlet carefully, to pass it on to others in your community who may be in a position to act on its suggestions, and at once to do what you can to start the wheels of public work. WAR COMMITTEE, Union League Club of Chicago. me JJ Public Works Public Charity? Or How to meet the labor crisis arising from the demobilization of troops and war workers By Harold G. Moulton THE UNION LEAGUE CLUB OF CHICAGO 1919 Harold G. Moulton, who has a na- tional reputation as an economist, is the author of a notable series of pam- phlets dealing with the business situa- tion in war time. These were published and given wide distribution by the Union League Club of Chicago and proved helpful in the speedy adjust- ment of business to war conditions. Mr. Moulton is a member of the De- partment of Political Economy of the University of Chicago; Acting Editor of the Journal of Political Economy; Secretary of the Western Economic Society; Author of Industrial Con- scription; Some Dangers of Price Con- trol; Unusual Business, Not Business as Usual; Your Business and War Business, the Duty of the Consumer in War Time, etc. Copies may be obtained of the War Committee of The Union League Club of Chicago at the following prices, delivery prepaid: 5 cents 2 cents each 1 cent each Single copies One hundred copies One thousand copies 2 Public Works Public Charity? How to meet the labor crisis arising from the demobilization of troops and war workers Or T HE sudden termination of the war has brought this country to a sharp realization that our man power and our industrial power must now be demobilized from the destructive work of war and remobilized for the constructive work of peace. Millions of soldiers must be returned from the armies to private employment; millions of war workers must be mustered out of the industrial armies and be reabsorbed into the industries of peace. War con- tracts amounting to many billions of dollars annually must shortly be replaced by peace contracts for more than a like amount.¹ The situation with which we are confronted is without a parallel in our industrial experience. To present the problem in definite terms, it may be stated that one, or all, of the following results are not im- possible during the next two or three years: (1) There may be a substantial reduction in the total output of industry-at a time when there is a greater need than ever before for increased pro- duction; (2) There may be a serious reduction in the rate of wages before there is a corresponding fall in the cost of living; (3) There may be a large volume of unem- ployment, serious privation for millions of people, and an unparalleled burden placed upon our char- itable institutions; ¹I say "more than a like amount" because the total production of this country must in the coming year be larger than it was in 1918, if, in addition to our present working forces, some 3,000,000 men now in the armies are to be given employment. 3 (4) There may be an outbreak of industrial warfare such as this country has not known in decades; (5) There may be a rapid increase of revolu- tionary doctrine-subversive of the principles of American life. It is not the purpose of this paper to attempt to prove that the foregoing possibilities are certain to prove actu- alities. It is enough that the widespread assumption that the conclusion of peace would immediately usher in a period of unprecedented world prosperity has already been proved quite unwarranted; and that leading students of the problems of demobilization and reconstruction both in Europe and America, have reached the conclusion that the period of readjustment following the war is fraught with the gravest dangers. The purpose here is merely to plead that we should face the situation with open eyes, and formulate constructive policies with which to meet a possible crisis. It is only common sense in these days to urge that society should insure itself, wherever possible, against the uncertainties of the future. THE SUPPLY OF LABOR. The broad outlines of the problem of demobilization are graphically indicated on the chart on pages 10-11. A brief explanation of the chart will serve to indicate the part that public works should play in stabilizing the conditions of employment during the period of transition. The increased supply of men in the labor market will come mainly from three reservoirs, as shown on the right hand side of the chart. The large reservoir nearest the middle represents the men and women who will be discharged from munitions factories-perhaps three or four millions in number. These are already flowing into the labor market; and with the rapid cancellation of war contracts and the termination of government work, we may expect this reservoir to be prac- tically emptied before the end of the winter. The second reservoir on the right hand side of the chart represents the men under arms in the United States-about 1,600,000 at the time of the signing of the armistice. These men, as every- body knows, are already being mustered out, and within three months the camps will be practically empty. The reservoir at the extreme right of the chart repre- sents the men abroad-roughly, 2,000,000 at the time of the signing of the armistice. The rate at which these men can be released from the army depends upon military expedi- ency—upon the amount of police work required of American troops in Europe. After being released from military service, the rate at which they can be returned to the United States depends upon available shipping facilities. At the upper right hand corner of the chart is a statement of the con- tingencies upon which the rate of return depends. (The statements underscored by straight lines indicate that policies must be formulated, and those underscored by broken lines indicate that it is a question of factual ascertainment.) No- body knows at the present time how rapidly they can be returned. The best present guess would seem to be that the rate will not exceed 150,000 a month. The flow from these three large reservoirs, plus im- migration (shown near the middle of the chart), and new laborers coming of working age in 1919, will give us the total flow into the labor market during the next year. It is important to note that there is pressure to make the flow from the large reservoirs very rapid. There are, however, some deductions to be made in order to find the net increase in the labor supply, as follows: (1) emigration, principally to Mexico and Europe; (2) with- drawal of men of independent means from industry; (3) withdrawal of women to domestic life; (4) retirement of working population in consequence of age and death. These deductions will, however, not substantially lessen the total supply. During the next twelve months it is probable that five or six millions of workers will seek employment in this country. 3 - THE DEMAND FOR LABOR. Turning now to the left hand side of the chart we find a series of reservoirs into which the returning soldiers and laborers must flow in the process of reabsorption into peace time industry. The first reservoir at the right is called "essential industry." By this is meant industry which was essential before the war and during the war, and which will be essential after the war-such as agriculture, manufactur- ing, and trading in the basic necessities of life. The shaded 5 area of this reservoir indicates the present labor supply; and the unshaded area, therefore, indicates the possibility of absorbing additional laborers. The next reservoir (read- ing toward the left) is that of "curtailed industry." This means industry where full production was not permitted during the war because of a shortage of labor, raw materials, etc. The unshaded area, again, indicates roughly the amount of expansion and employment that may occur there. The next reservoir is "suspended industry," which means in- dustry that was closed down entirely during the war, leaving only an office force. About 700,000 men were released for war service during the war from these two reservoirs-cur- tailed industry and suspended industry. If they return to normal, 700,000 men can, therefore, be employed. The next reservoir indicates industry which was con- verted during the war from peace production to war pro- duction and which may now be reconverted to peace pur- poses. The next one is industry which was built up during the war, and which may now be converted to peace pro- duction. These two reservoirs were at the end of the war full of workers employed on government orders. Tempo- rarily, many of them will be thrown out of work with the stoppage of war orders; but as soon as these plants are reconverted to peace production, these laborers can be re- employed. Hence, these reservoirs do not permit any ex- pansion; on the contrary, many men may be thrown out of employment for a period of uncertain duration." The last reservoir on the left of the chart is that of new industry to be developed after the war. The lower left hand corner indicates land settlement--a plan for which is now being worked out by the United States Department of In- terior. THE RATE OF REABSORPTION OF WAR WORKERS INTO INDUSTRY. It is one thing to draw these reservoirs and indicate that returning war laborers will eventually find employment therein. It is another thing to show that the jobs in these reservoirs will open as rapidly as the men flow from the reservoirs on the opposite side of the chart. In the upper 2In some cases the process of conversion is relatively simple. In others it is almost equivalent to building new factories. 6 left hand corner of the chart are indicated the contingencies upon which the rate of absorption will, in fact, depend. The main factors in the situation-not to go into a full dis- cussion of the details-may be briefly indicated. Starting at the top to read, we find that the rate of opening of em- ployment depends upon the utilization of the productive equipment of the country. But the full utilization of this productive capacity depends upon numerous contingencies: (1) upon the effective demand for the products turned out by these factories; (2) upon the supply of raw materials at satisfactory prices; (3) upon the availability of credits at reasonable rates. It must be borne in mind that business men are engaged in production for a profit; that is, they are producing and manufacturing goods at a certain cost and selling these goods at a price enough above that cost to give them a reasonable return for their enterprise. If the costs are very high and the demand for their products small, they sustain losses rather than make gains. If industry is to go ahead, the business man must have assurance that there is at least a reasonable probability of profits. At the present time there is, however, much uncertainty as to the strength of the demand for many lines of peace-time production, and like uncertainty as to the costs of production. As a result business is nearly everywhere hesitant. Numerous sub-headings under demand are listed on the chart. They are designed to suggest the various factors which may have a bearing on the rate of industrial re- sumption. Without going into a discussion of these, it may be noted that the larger the number of factors that must work harmoniously together if a quick resumption of normal industrial life is to be achieved, the greater the possibility that something may go wrong. The modern highly special- ized and interdependent industrial mechanism is very deli- cately adjusted; even under the most favorable circumstances it works with a great deal of friction. With world industry, world shipping, world trade, and world politics disorganized, the possibilities of friction and maladjustment are increased many fold. BUFFER EMPLOYMENT ON PUBLIC WORKS. We may turn now to a consideration of the means of insurance against the dangers of the transition period sug- gested in the introduction to this paper. Substantial reduc- 7 tion in the volume of production, serious decline in wage rates, unemployment, public charity, and social disorder can be avoided only by providing a large demand for labor. And in case private industry cannot immediately absorb the entire flow into the labor market, pubilc employment should be provided as a buffer-to continue until such time as the entire labor supply can be employed in ordinary industry. Buffer employment may be provided by quasi-public enter- prise, by the Federal government, by state governments, and by municipalities-by each of them separately, or by all of them under a co-ordinated policy. QUASI-PUBLIC, FEDERAL, STATE AND CITY PROJECTS. The railroads appear at first blush to offer an excellent opportunity for a large employment of returning soldiers and war workers. There is no question of the need for thoroughgoing extension of existing railroad facilities; for the railway net, owing to a combination of causes, was seri- ously behind the industrial needs of the country even before the war. The industrial progress of the country in the coming years now waits upon railroad development. But unfortunately, there is no assurance whatever that this much needed development will take place during the transition period. There is apparently not a large amount of postponed maintenance to be made good. And extensions can properly be made only with the consent of the shareholders. In view of the present high costs of railroad construction and the political uncertainty with reference to the future ownership and control of the railway system, it is not at all improbable that railway development will be indefinitely postponed. Extensions and improvements of public utility corpora- tions are listed on the chart as possibilities. It is doubtful, however, if any development will take place here in the near future, owing to the present financial condition of the companies. The increased costs of operation during the war, which, speaking generally, could not be offset by correspond- ing increases in rates, has produced a situation such that the public utility corporations feel that they must wait until the cost of production is lower than at the present before mak- ing extensions. If we are to provide buffer employment for returning soldiers, therefore, it must be on distinctly gov- ernment projects. FEDERAL PROJECTS. Among the Federal projects, reclamation in its various forms is of first importance. It is easy to assume that great numbers of laborers can easily be employed in reclamation work; and large numbers could indeed be employed if enormous appropriation were made for the purpose. It is important to point out, however, that an appropriation of $500,000,000 for Federal reclamation work would give em- ployment at living wages to about 166,000 men for a year. (This figure is based on the cost records of the United States Reclamation Service.) It may be of interest to note that 10,000 men is the highest that has ever been employed in Federal reclamation projects in any one year. Now it is not inconceivable that an appropriation of $500,000,000 for reclamation projects might be made. It is utterly inconceiv- able, however, that the entire expenditure could be made intelligently in a single year. The reclamation of swamps and cut-over lands, for instance, requires the most careful engineering and agricultural surveys, if we are to make sure that the areas reclaimed will be those which yield the largest return for the smallest outlay. The same holds true for flood control, irrigation, what not. It would be nothing short of a national calamity if, in an excess of zeal, public employ- ment should degenerate into a "make-work" program re- gardless of the social value of the work performed. It would be particuarly unfortunate, for instance, if we should engage upon an extensive program of river and canal development without the most careful preliminary study of the relative advantages to be derived from an expenditure upon waterways. This is true, whether river and harbor and canal appropriations be made on the old "pork barrel" basis or in accordance with the most approved principles. When such a man as M. Colson, eminent French authority on transportation-Counsellor of State and Director of Roads and Bridges in France-has demonstrated that the canal systems of France and Germany annually result in a heavy economic loss to those countries, it is highly important that we make a thoroughgoing analysis of the entire transporta- -RATE OF OPENING OF EMPLOYMENT -UTILIZATION OF PRODUCTIVE CAPACITY OF COUNTRY -EFFECTIVE DEMAND FOR PRODUCT · ANTICIPATED DEMAND ↑↑ Lt ↑ NEW INDUSTRY AGRICULTURAL SETTLEMENT -PRIVATE, DEMAND Panticipated Trend of Demand Accumulated After The War Orders PUBLIC DEMAND MATERIALÍ FOR DOMESTIC PUBLIC WORMS MATERIALS FOR RECONSTRUCTION OF EUROPE · ANTICIPATED ACCELERATION BY CONCIOUS POLICY PLAN FOR PLANT CONVERSION GOVERNMENTAL UNDERWRITING OF RISKS DISTRIBUTION OF PUBLIC DEMANDS INCREASE OR DECREASE THROUGH POLICIES SERVING DOMESTIC EXTRANEOUS ENDS PRIORITIES TRADE CONTROL, TAXATION FOREIGN ►SHIPPING ·BAH MATERIALS CREDITS TARIFFS ·COLONIES ·RATE OF FLOW INTO➡ Domestic Price Changes Tendencies In Hager ^airit of Business Enterpris -INCREASE OR DECREASE THROUGH ACTION OF GENERAL THRO Course of international Valves ECONOMIC TENDENCIES RAW MATERIALS SUPPLY PRICES INDUSTRIES WAR INDUSTRY CONVERTED RECONVERT PEACE USE PLACE -RATE OF FLOW INTO• POSSIBLE EXPANSION pu Civilid POSSIBLE | EXPANSION 1 Watch employn SUSPENDED FAILED INDUSTRY INDUSTRY A RATE OF FLOW INTO-- RATE OR WITHDRAWAL OF CIVILIANU • SUPPLY RATE OF INTEREST AVAILABILITY OF CREDITS Her -RATE OF PLOW INTO POSSIBLE EXPANSION PROVISION OF WORK ESSENTIAL, INDUSTRY, · BY PRIVATE ENTERPRISE •Conversion of Munition fac Deferred Maintenance RATE OF FLOW INTO ORDINARY INDUSTRY BY THE PUBLIC ·THROUGH PEDERAL GOVERN SHIPPING NAVAL PROGRAM RAILROADS RECLAMATION ►HIGHWAYS LAND SETTLEMENTS •PUBLIC BUILDINGS • WATERWAYS THROUGH STATE GOVERIN HIGHWAYS RECLAMATION ·THROUGH CITY GOVERNYA STREETS UTILITIES -FINANCING OF WORK TAXATION -BY PUBLIC UTILITY CORPORAMİ LIGHT GAS WATER TRACTION SALE OP DONDS ►AVAILABILITY OF CREDITS ro BUFFER EMPLOYMENT -RATE OF TEMPORARY EMPLOYMENT RATE OF FLOW INTO INDUSTRY ·VOLUNTARY RETIREMENT IN ANTICIPA - TION OF DISCHARGH INDUSTRY DISCHARGE →Cancellation of Government Contracts THE PROBLF THE RATE OF DEMIZATION DR de edemaparka INCENTIVES TO IMMIGRATION Employment in us *Living & Hine Coachbor Hose LAbility to Finance ap EDMON CONTROL OF IMMIGRATION ►US Immigration Policy ➜Emigration Policies of Europeanhations →Transportationfacilities WHHAMILTON EIZING UTHE SOLUTION THIS PROBLEM DANDS TEE INCREASE OF WORKING POPULATION RATE OF IMMIGRATION RATE OF FLOW LABOR MARKET INTO 1 THE AVOIDANCE OF ALE VOLUME OF UNEMPLOYMENT 2 THE MAINTENANCE OF STANDARDS 3 THE AVOIDANCE OF SER FALLS IN RATES OF WAGES 4 THE MAINTENANCE OF PUCTION AT A HIGH LEVEL 5 THE REMOVAL OF THE SIBILITY OF A DEPRESSION END POLICYBE FORMULATED INVEST REQUIRED UNPREPACTORS WARLA ULICIES BOARD NOLD -AVAILABLE SHIPPING HG.MOULTON FACILITIES · AMERICAN VOLUME PRESENT VOLUME ➜ANTICIPIITED BUILDING DECISION BASED UPON • Avading Coil of Heeping Men Avoiding Glitt of Labor Market -GAINS THROUGH REORGANIZATION •Discontinuance of Convoys Discontinuance of Circuitous Routing Conversion of Cargo ships into Transeerts Separation in direction of Movement 9 Jupplies and Hen · ALLOCATION BETWEEN TRANSPORT TRADE 1 WORKERS IN · INCONVERTABLE INDUSTRIES RATE OF DISCHARGE RATE OF MILITARY DISCHARGE -ALLIED ^** NEUTRAL AGREEMENTS INVOLVING "ALLOCATION BETWEEN ►TRANSPORT OF COLONIALS TRANSPORT OF AMERICANS TRADE MEN ÜNDER ARME IN THE UNITED STATEN RATE OF RELBASE RATE OF TRANSPORT EDUCATION BUFFER EMPLOYMENT | ↑↑ MEN UNDER ARMS ABROARD ·RATE OF RELEASE RATE RECONSTRUCTION OF BUROPE ·GERMAN *** AUSTRIAN ►PART OF INDEMNITY ♦COMELICATION. AQRCEMENT USE OF NEN FOR POLICE DUTY INTERNATIONAL UNDERSTANDING WITH DELGIUM, FRANCE, RUSSIA. · CONDITIONED BY Industrial Needs of These Countries Attitude of Laborers of These Countries Availability of American Materials Availability of American Credits 10 11 + tion problem before we proceed to make enormous ex- penditures on waterway development. STATE PROJECTS. In the various states of the union there are many public works which have been postponed because of the shortage of material during the war. These should now be com- pleted at once. The public highways of this country are recognized to be at once a disgrace to American enterprise and economically wasteful to the extent of millions of dollars annually. The case is perfectly clear, therefore, that the states should, wherever possible, put through extensive road building programs. Not only is the social value of such im- provements beyond question; but the amount of employment given to labor is larger in proportion to the total expenditure than in most other types of public works. In passing, it may be noted, however, that many states have reached the limit of their bond issuing capacity and that some are not permitted to borrow at all. This is a result of the experience through which we passed in the decade of the thirties. With high hopes of great financial returns, the young middle western and southern states of those days engaged extensively in the construction of public highways, railroads, and waterways. They built beyond the needs of the time, however, and the disastrous years following the panic of 1837 carried the sparsely settled commonwealths of that day into bankruptcy. The reaction proved so strong that the amendments of the state constitutions that resulted in the forties in many cases imposed limitations upon the borrowing powers of the state so serious that now, although the conditions which existed in earlier days have passed for- ever, many states are still debarred from engaging in public enterprises. True, the constitutions may be amended. But the time required for such drastic procedure is so great that it could often not be accomplished until years after the transitional crisis had come upon us. There is one state, at least, where it takes six years to amend the constitution. But whether or no such states can accomplish anything in the present crisis, it is high time that steps be taken to remove the financial restrictions which now prevent con- structive internal development. 12 CITY ENTERPRISES. The American cities perhaps afford the best opportunity for extensive construction projects during the coming months -though as in the case of the states there are frequently serious financial limitations. Many building projects were postponed during the war in consequence of the shortage of labor and building materials, and many of the cities now have funds in hand and are prepared to begin at once the delayed construction operations. Data before me from thirteen typical middle western cities show expenditures of $27,000,000 which will be made in the near future. It is estimated that 48 per cent of this will go for labor. It has been reliably estimated that the total of public money annu- ally spent in the United States on permanent improvements is about $600,000,000-about two-thirds of which is spent by the governments of cities. During the years 1917-18 about $300,000,000 of such work was postponed mainly in the states and cities. If in the year 1919 we should spend this $300,000,000, plus the $600,000,000 normally devoted to new construction, and add to that another $300,000,000 as an in- surance for the emergency, we woud be able to employ on public works (Federal, state, and municipal) during the year 1919 about 400,000 men. INDIRECT RESULTS. The carrying through at this time of a program of public works would result not merely in giving direct employment to 400,000 workmen; it would do much to start the hesitant wheels of industry everywhere. At the present moment the demands for the production of basic raw materials is at a low ebb owing to the sudden cessation of enormous war orders and the uncertainty as to the immediate future of private industry. Let the national government, the state governments, and the municipalities engage in a compre- hensive building program and the materials required will immediately create a strong demand for the production of iron and steel, and metals generally, of coal, lumber, cement, etc. The wages paid to the employes engaged in public works would at the same time place in their hands pur- chasing power with which they would go into the markets and demand the commodities which enter into ordinary con- sumption. Similarily, the wages paid to those engaged in 13 the production of the raw materials required for the build- ing operations would serve to create an additional demand for consumptive goods. The increase in demand thus be- comes rapidly cumulative, and the foundations are laid for a period of great activity in all lines of industry. This is not mere theory. It accords with the facts of every period of business expansion. The main steps in a period of recovery from business depression have been definitely established. They are as follows: (1) The initial impetus to business recovery is usually some fortuitous event such as bumper agricultural crops, which makes the farming in- dustry prosperous, or a heavy demand for iron and steel occasioned by war. (2) The increased demand for commodities that ensues results in running existing business establishments at full capacity. This meanwhile gives steady employment to labor-employment for, say, 300 rather than 200 days in the year. This is equivalent to a 50 per cent increase in annual wages, without any change in wage rates. (3) The increased industrial activity which results from the increased consumptive demand arising in consequence of increased annual wages causes a still further stimulation of industry. It results specifically in a great extension of plant capacity, and an era of great activity in the build- ing trades ensues. - (4) These new building operations in turn call forth heavy demands for additional raw ma- terials, factories, machines, etc.; and this in turn creates an additional demand for labor at good wages, and we reach a period of intense industrial prosperity. The history of business prosperity thus reveals the close relationship between expanding consumption and expanding business. And it shows with remarkable clearness the interdependency of industry and consumptive demand in the complicated economic system of the modern world. 14 With equal clarity the history of every business de- pression shows the close relationship of consumptive de- mand and business prosperity. When a halt has come, for reasons which we need not here discuss, laborers in certain important industries are discharged. Demand for the ma- terials used in additional construction ceases. The decline in the indirect demand for labor through the cessation of new building operations plus the decline in consumptive demand occasioned by unemployment result very quickly in the discharge of still other laborers who had been engaged in producing goods to meet the demands which have now been curtailed. This discharge of other laborers in turn still further reduces the consumptive demand and this in its turn has its cumulative effect in throwing still other laborers out of employment and more effectually stalling the entire industrial mechanism." CONCLUSION. In view of the established facts of our industrial ex- perience and in view of the grave possibility of depression during the transitional era-indeed, I think one may say in view of the facts of the immediate situation-with industry everywhere hesitant, and unemployment already rapidly increasing, is it not perfectly plain that a comprehensive program of public works should be instituted just as soon as possible? If this nation is not willing to heed the simple. lessons of experience, and if we are not disposed to seize at once the opportunity to insure ourselves against the dangers of the transition periods by establishing a perfectly feasible program of buffer employment on public works, we deserve to reap the whirlwind that will lie before us. In view of the present social temper of the world we cannot afford to sit with folded hands and await the return of the troops with nothing but fine resolutions and good wishes to extend them. If, in our easy-going optimistic American way, we neglect to provide for those who have so unreservedly offered them- selves in the nation's service the opportunity upon their return to earn the means of a self-reliant existence, we will -- ³For a remarkable analysis of the ebb and flow of business activity and the interacting causes at work the reader is referred to Wesley C. Mitchell's volume on "Business Cycles." Note also the appendix for a constructive suggestion which should prove of permanent value in helping to lessen the fluctuations of trade and industry. 15 Lov have sown the seeds of a social revolution in this country that will rock our democratic institutions to their founda- tions. We know as a matter of course that we cannot permit either our returning soldiers or war workers to starve; we know that the least we can do, if jobs are not available for all, is to open our charitable purses and extend them such indirect alms as we may. We have the choice, therefore, of two methods of meeting the situation: (1) by providing employment on public works of enduring value (2) by supporting by public charity an army of unemployed in non-productive idleness. The former is the way that will make for satisfied, self-reliant American citizenship; the latter is but a palliative—it prevents starvation, but it does not avoid ingratitude and bitterness of spirit, nor make for orderly social and economic life. The former is the so- cially efficient way, the way that conserves human re- sources and increases the productive capacity of the nation; the latter is the socially wasteful and inefficient way- that makes for the degradation of the individual and the de- pletion of national productive power. The latter is the way of the old era of ill-adjusted and unregulated industrial life; the former is the way of a new era of economic and social efficiency. Which way shall we make the American way? 16 SUGGESTED GOVERNMENTAL POLICY-EMERGENCY PUBLIC WORKS COMMISSION. The argument above has been concerned with the specific emergency arising in connection with the period of readjustment that must follow the war. It has a wider bearing, however, in its applicability to the periods of busi- ness depression that recur with more or less regularity every eight or ten years. It is possible greatly to reduce the amount of unemployment at such times by making extraor- dinary outlays on public enterprises. Slack times in private industry should be made flush times in public enterprise. This would tend not only to minimize the volume of un- employment and distress; it would serve as well to shorten the duration of the depression itself. All that is necessary to make such a dovetailing of public and private enterprise practicable is to establish state and municipal funds for Emergency Public Works. The principle involved in an Emergency Fund is very simple. Instead of spending each year the entire amount of revenue available a percentage should be set aside in a fund, to be used only during the next period of depres- sion. If, for instance, 10 per cent of the annual appropria- tion for public works, should be set aside each year for ten years, it would be possible to double the outlay on public works in a year of depression. An Emergency Public Works Commission might be required as a custodian for the fund. Such a commission could be, ex-officio, made of the regular state or municipal officials-with perhaps an Execu- tive Secretary to look after details and make investigations and prepare plans designed to insure that the extraordinary expenditure shall be made only for projects that are eco- nomically advantageous. One state-Pennsylvania-already has such a fund and commission. Several other states are likely to make similar provision in the near future. G Detailed information about the Pennsylvania Public Works Commission may be procured by writing to Otto T. Mallery, Secretary. He can be addressed, Department of Labor, 1607 H. Street, Washington, D. C. 17 Below is an outline of the purpose and possible pro- visions of an emergency public works law. PURPOSE OF AN EMERGENCY PUBLIC WORKS ACT. 1. To provide for the development of public works by the state during periods of unusual unemployment. 2. To persuade the municipalities and counties to adopt a similar policy, and to co-ordinate all public works within the state. 3. To provide a fund for state use to be known as the Emergency Public Works Fund. 4. To create an Emergency Public Works Commission as trustee of the fund. 5. To enable the state, through the Emergency Public Works Commission, to co-operate with the federal govern- ment in doing joint federal-state public works during periods of unemployment. POSSIBLE PROVISIONS OF AN EMERGENCY PUBLIC WORKS ACT. (These will, of course, vary greatly in different states.) The Emergency Public Works Commission should con- sist of three important state officials, such as the governor, the commissioner of labor and industry, and the highway commissioner. It should be its duty to secure from the various depart- ments of the state tentative plans for extensions of necessary public works during periods of unemployment. These plans should be complete enough so that work can be begun on such projects on the shortest notice. It should indicate to the state departments the advantage of saving up portions of their usual public works to be done during periods of unemployment. It should recommend to the legislature methods by which certain appropriations for public works will become available only during a period of unemployment. It should recommend methods by which the bond issues for necessary public works, previously authorized for use during periods of unemployment, may become promptly available at such times. 18 It should be its duty, when a period of unusual unem- ployment is held to exist, to distribute the Emergency Public Works Fund among the several departments of the state for definite public works as approved by the commission. It should submit to the federal government general in- formation concerning such public works as it may plan and· also at the time that such works are ordered to be executed announce the fact and scope of them to the federal depart- ment of labor. The purpose of this latter provision is that the United States Employment Service may be informed of the demand for labor so created and that this information may be related to demobilization and the movements of war workers. It should be the means of co-operating with the federal government where joint federal-state undertakings are con- cerned and act for the state in urging, approving, or rejecting them. In short, an Emergency Public Works Commission should be the stabilizer of public work. By all means in its power it should endeavor to expand necessary public works during periods of unemployment and to contract them during ordinary years of good business. In good times it should prepare for bad times and at the first indication of bad times it should throw its influence into the scale to restore the demand for labor and material. N. B. For a typical act creating an Emergency Public Works Commis- sion, see 1917 Laws of Pennsylvania, Page 1193, Act 411. TRADKEOVER COUNCIL 20 14 19 """imp'' WAR TIME BUSINESS PAMPHLETS By Harold G. Moulton UNUSUAL BUSINESS NOT BUSINESS AS USUAL A pamphlet dealing with the necessity of putting war work ahead of private work. 15 pages. YOUR BUSINESS AND WAR BUSINESS A pamphlet telling manufacturers how they may adjust their business to the needs of the nation at war. 23 pages. THE DUTY OF THE CON- SUMER IN WAR TIME - In which the duty of everyone to economize and forego luxuries in order that the Government may not lack for labor and supplies, is forcefully pointed out. 16 pages. These business pamphlets may be had singly or in quantities at the following prices: Single copy, 5c; 100 copies, $2.00; 1000 copies, $10.00. Printed by WAR COMMITTEE THE UNION LEAGUE CLUB OF CHICAGO ☎||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| ||||||||||| ||}////////////}}}}}}}}}}}}//………………………………………|||||||||||||||||||||||||||||||||||||||||||||||||||||||||| O ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Ľ Why We Fight || | || / // | / / / / / / / / / | | | | | BY {//////////////////////// CLARENCE L. SPEED Ꮮ THE UNION LEAGUE CLUB OF CHICAGO 1918 ||||||||||| After you have read this pamphlet please pass it on in order that the message it carries may reach the largest number of persons HI! [……………………………………………………………… ||||||||||||| In …………………………………………………………………………………………………………! //////////ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ||||||||||||||| |||||||||||||||||||||||||| Clarence L. Speed has for many years been engaged in newspaper work in Chicago. He long served as city editor of the Chicago Rec- ord-Herald, and as financial edi- tor, city editor and editorial writ- er of the Chicago Evening Post. The nature of his work made necessary on his part a careful study of the Great War from the day of its inception, and his con- clusions as to the basic causes which forced America into it, to- gether with the evidence from German sources on which they are based, are herein set forth. Copies may be obtained of the War Committee of the Union League Club of Chicago, at the following prices, delivery prepaid: Single copies.......... One hundred copies.... One thousand copies .5 cents each 2 cents each .1 cent each Why We Fight BY CLARENCE L. SPEED THE UNION LEAGUE CLUB OF CHICAGO 1918 I BECAUSE GERMANY, FOR YEARS, HAS BEEN MAKING TREACHEROUS WAR ON US One of the deep, underlying reasons-not just a diplomatic pretext -why we are at war with Germany is that for a generation Germany has been making war on us. Germany has made this war not openly, bravely or humanely, but secretly, treacherously and persistently. She has sought to create race discord, to corrupt and defile politicians and office-holders, and to create separate German communities within our borders. She has poisoned the minds of children in our schools in an endeavor to make Germans of them instead of have them grow up into loyal American citizens. She has invaded the sacredness of the pulpit itself in an endeavor to corrupt our people through the very leaders of morality to whom they are accustomed to look for guid- ance. These may be startling assertions, but they are all true, as you shall see from the documents of the Germans themselves. We all know that it was a German fleet which stripped for action when Dewey sailed into Manila bay. We all know it was the Germans who sought to bring about a European alliance against us when we were engaged in the war with Spain. Few of us realized, however, that all these years Germany has been busy within our own borders, through editors, teachers and preachers, seeking to break down our national unity, so that when the time came it would be easy to defeat the United States in open warfare, to set at naught our cherished Monroe Doctrine, and to seize, in the western hemisphere, anything that the land grabbing rulers of the German Empire might desire. CITIZENS OF DOUBLE ALLEGIANCE The climax of Germany's underhanded war on the United States came in 1913, more than a year before the outbreak of hostilities in Europe. This was the enactment of what is known as the Delbruck law, which provides that if an emigrant from Germany who is about to be naturalized makes application to a German consul, he may retain 6 Why We Fight his German citizenship even after he has become a citizen of his adopted country. In plain words, this law and the application of it mean just this: A German goes into court in this country and solemnly foreswears allegiance to the kaiser and pledges his word-the temptation was to say, "of honor"-that he will become a loyal citizen of the United States. Then he slips around to the German consul and says: "You know I didn't mean that, at all. Those Americans are easy marks, and they fell for that stuff right off. But you may put me down on your list as a good, loyal German, and if the time ever comes when I can prove it, you can count on me." So the German consul puts his name down in the little card index of which the Germans are so fond, and this man, this creature who swears allegiance to the country which gives him an opportunity to make a real living and to become somebody in this world, and at the same time swears secretly to be true to Germany-is turned loose to work his will, while Americans go carelessly about their business and refuse to see the danger in the arrangement. TRAITORS LEFT TO PLOT IN AMERICA Then along comes the world war. America's sympathy is at once given to little Belgium, to Serbia, to France and to England. It be- comes apparent, however, that there are many Germans in this country who are loyal to Germany rather than to the United States. Industrial plants are blown up, strikes are fomented, bridges are dynamited, and ships sunk in American harbors. Finally the United States is forced into the war. The German ambassador and the German consuls are allowed, because the United States even makes war like a gentleman, to pack up all their little card indexes and go home, taking with them the lists of hundreds- perhaps thousands of men who have sworn to become loyal citizens of the United States, and then have secretly promised to serve the kaiser. Can you imagine Germany allowing American consuls to take any such list of spies and traitors out of that country? Would any such "scrap of paper" as a diplomatic treaty have prevented their searching the documents of American consuls if the United States had any such Why We Fight 7 law, and there were millions of Americans going and coming at will in Germany after war was declared? Of course the Delbruck law applied to Germans who became nat- uralized citizens of Brazil or Argentina or any other country as well. The German lust for world conquest was no respecter of nations. In fact, it was aimed as much at certain South American nations as at the United States, and, had the world war been delayed a year or two. longer, would have so Germanized large sections of Brazil that a revolution in favor of Germany might have been easy of accomplish- ment. SOUGHT TO PREVENT AMERICANIZATION OF IMMIGRANTS Long before the passage of the Delbruck law, there was formed the Verein fur das Deutschtum im Ausland-the Union for Germanism in Foreign Lands. This organization, officially fostered in Germany, published a quarterly magazine, which, in its very first issue, outlined its aims as follows: "The purpose of this Union is the preservation and promotion of the Germanism of over 30,000,000 people of German blood dwelling outside the German Empire." All it aims to do, you see, is to keep Germans who come to this country from becoming Americans. Again, in another issue of the quarterly, Statsminister Hentig writes: "The organization of peoples within states and their political rela- tions to each other do not include all their phases of life. Deep beneath the soil on which can work political power and the laws of state lie the roots of national impulses and national sentiments.” Think of it! This from the same nation which has so ruthlessly persecuted the Poles and inhabitants of Alsace-Lorraine in an effort to make Germans out of them against their will! Away back in 1890 the Alldeutscher Verband, or the Pan-German League, was formed. It now consists of 268 chapters of which two now are or at least were immediately before the war-in the United States, one in New York and one in San Francisco. To quote from the Alldeutsche Blatter, its official publication, "the Pan-German League is founded for promoting German National interests both in Germany and in foreign lands." In the United States this organization worked actively to foster German national aims through the German language press. It encour- 8 ∞. Why We Fight aged the teaching of German national aims in the schools, in the churches, in the German social and athletic societies. All of this is told of with that characteristic German frankness in the official publica- tions of the organization, open for the whole world to read. AMERICA DISREGARDED GERMAN MENACE A few thinking Americans knew all the time what was coming- what must come. But America, as a whole, went along with that care- lessness and indifference with which it treats all things unpleasant, and allowed this German war on our most sacred institutions to continue unchecked. So Germany stands today, with one foot on prostrate Belgium and the other on the neck of poor, deluded Russia; with a bayonet planted in the heart of Serbia, and the point of its sword at the throat of Roumania, while it looks out over the vassal States of Bulgaria and Turkey to India and the Orient. And as it stands thus, it cries to its foes on the western front: "Kamerad! Why go on with all this killing? Let's have a peace by negotiation?" and, under its breath, adds, "I've got all I want for the present." Can we talk of any peace until such a Germany is absolutely de- feated? Shall we negotiate a peace and allow all these German preparations for world domination to go on until the time is ripe for Germany to complete its conquests? II BECAUSE GERMANY'S LAW IS THE LAW OF THE JUN- GLE AND HER DOCTRINE, "MIGHT IS RIGHT" We are at war with Germany because Prussia dominates Germany, and from the days of Frederick the Great, Prussia's law has been the law of the jungle, her doctrine "Might is Right" and her policy, in dealing with other nations, one of robbing the weak and terrorizing the strong. Germany has grabbed territory and exacted tribute from her neighbors, and finally, her greed becoming greater, has looked out over more distant lands, and has committed herself to a policy of world domination which menaces the continued free existence of every nation which will not submit to her will. Germany's policy is not an accidental one. It has been carried out with remarkable singleness of purpose, from generation to genera- tion of Hohenzollern rule, from the time of the Great Frederick until today. Germany's atrocities are not accidental. They are a deliberate, well thought out part of this Hohenzollern policy, which was to break down the resistance of her opponents, not only by fighting and defeat- ing their armies but by killing, torturing and terrorizing the civil populations. TEACH MORAL CODE OF THE TIGER The German rulers committed themselves to the doctrine of the survival of the fittest. Through generations of teaching they made the German people believe that they, and they alone, were the fit. They built up the world's greatest war machine, and so perverted German education that the people grew to believe that it was as right for this machine to crush out all opposition as the tiger in the jungle would think, could he think at all, that it was right for him to carry off and devour a baby from a neighboring village. We have the words of the German rulers and German warriors and German leaders of thought for all of this. More than that, we have the performance of German officers and German armies in conquered lands to prove it. 10 Why We Fight Let's start with Frederick the Great in presenting the evidence. This monarch, who earned his soubriquet through despoiling his neigh- bors, rather than through any real qualities of mind which he showed, said, in a letter to his minister, Radziwill: "If there is anything to be gained by it, we will be honest; if deception is necessary, let us be cheats. One takes what one can, and one is wrong only when obliged to give back. "" This philosophy, applied to present conditions, means that Germany was right when she took Belgium, and will be wrong only if she is not able to hold it. BISMARCK'S POLICY OF BLOOD AND IRON From Frederick the Great to Bismarck is a long jump in the matter of time; but we find the Prussian policy unchanged. Speaking before the military committee of the Prussian Chamber of Deputies in 1862 Bismarck said: "Not by speeches and resolutions of majorities are the great ques- tions of the time decided, but by iron and blood." Then, with blood and iron, Prussia went out and despoiled Den- mark of territory in 1864, beat and robbed Austria in 1866, and finally, in 1870, brought France to her knees and took her richest provinces. Creation of the German Empire after the Franco-Prussian war brought problems of development and consolidation at home which caused Germany to keep the peace for some time, but it also brought dreams of further extension of German power, not among the neigh- boring states of Europe, but over the lands of the earth and the waters of the sea. So Germany posed as a peaceful nation, while it made plans to conquer the world, and talked of its superior culture-kultur it is, over there while its rulers deliberately taught frightfulness to its military men, and its educators taught the people to believe that frightfulness was right. Here is what the present kaiser told his troops when, in 1900, they were about to depart for China to put down the boxer uprising: "Use your weapons in such a way that for a thousand years no Chinese shall dare to look upon a German askance. Be as terrible as Attilla's Huns." + Why We We Fight 11 That is why we call the German of this war the Hun. His own kaiser gave him the name. RIGHTS OF NEUTRALS DISREGARDED Coming on down to the present war we find neutral lands invaded, defenseless cities bombarded, women and children sent to death with- out warning through the torpedoing of ships, and even the lifeboats in which hapless survivors attempt to escape, shelled. Such is the German frightfulness of today. But even this is not enough. We find a German minister accredited to a neutral state far across the sea,-one which one would think should be free from the entanglements of world politics, writing home to his government, in a state paper, advising the sinking of two ships from this neutral nation, in such a manner that no trace be left. Dead men, he believed, tell no tales. It was Baron Luxburg, minister pleni-potentiary to Argentina, who wrote this amazing dispatch on May 19, 1917: "I beg that the small steamers Oran and Guazo which are nearing Bordeaux be spared, if possible, or else sunk with- out a trace being left." This telegram was intercepted in the United States and published. It sent a thrill of horror around the world. Chancellor von Bethmann-Hollweg is a true disciple of Frederick the Great, Bismarck and his royal master. In a public speech on Jan- uary 31, 1917, he said: "When the most ruthless methods are calculated to lead us to victory, swift victory, they must be employed.” So they were used, and are being used today. They include sinking of hundreds of neutral ships, the burning of cities, the deliberate devastating of the fair lands of France, the ravishing of women, the enslavement of workmen and the murder of little children. HOW GERMANY TREATS CONQUERED LANDS Horrors such as these are told in detail in "The Prussian System," by F. C. Walcott, who, for a long time, was engaged in behalf of America in trying to get food to the Poles whom the Germans were deliberately starving by the hundreds of thousands so that they might not cumber the land which the Germans intended to occupy. He pref- aces this pamphlet with the words, "This I have seen," and goes on to 12 Why We Fight quote from General von Kries, who was in command at Warsaw and who told him: "By starvation we can accomplish in two or three years in East Poland more than we have in West Poland, which is East Prussia, in the last hundred years. This country is meant for Germany. We propose to remove the able bodied working Poles from this country. It leaves it open for the inflow of German working people as fast as we can spare them." Commenting on this, Mr. Walcott says: "That is not all. Remov- ing the men that the land may be vacant for German occupation, Ger- many does more. Women left captive are enslaved. Germany makes all manner of lust its instrumentality. "Coolly, deliberately, officers of the German staff, permeated by this monstrous philosophy, discuss the denationalization of peoples, the destruction of nations, the undoing of other civilizations, for Ger- many's account." Knowing all this, can the American people talk of any peace by negotiation? Can they stop this war until this mad dog of nations is freed from the military rulers who teach frightfulness from the cradle, and will only seize a respite now to prepare themselves for further conquests? " III BECAUSE GERMANY, HAVING SPLIT THE WORLD IN HALF, IS NOW TRYING TO DEVOUR THE HALVES We are fighting Germany, for one thing, because Germany, having split the world in half, is now seeking to devour the halves separately. She has driven a wedge straight through the heart of Europe, and into Asia, and is seeking to extend it to the Persian gulf. This is no accidental happening, due to the downfall of Russia and the sudden shifting in the fortunes of war. Germany planned it all decades ago. She made no effort to keep the plans secret. She told us all about it. She had a reputation for making plans and sticking to them, from one generation to another; yet the world paid no attention. It seemed too preposterous even for Germany to attempt. As long ago as 1895 a pamphlet, "Pan-Germany and Central Europe About 1950," was published in Berlin and had wide circulation. It laid the whole Mitteleuropa plan bare as follows: "Poland and Little Russia (the kingdom to be established at Rus- sia's expense) will agree to have no armies of their own, and will receive in their fortresses German and Austrian garrisons. In Poland, as well as in little Russia, the postal and telegraph services as well as the railways will be in German hands." PLANNED LAND GRAB FOR TWENTY YEARS For twenty-three years, one sees, Germany had been planning this land grab. But the plan was modest then. Even the Germans did not dream that Russia would be such easy prey, and thought that they would have to fight for what they got from her. In 1911 Tannenberg's book, "Greater Germany," was published. This was only three years before the war, but it showed that the idea of a German Mitteleuropa had not been allowed to languish. It says: "The new kingdom of Poland is made up of the former Russian 14 Why We Fight portion, of the basin of the Vistula, and of Galicia, and forms a part of the new Austria." How the plan has grown since then! Russia's collapse dropped whole provinces into the lap of the kaiser, and now Germany plans its empire on a scale which would dwarf that of ancient Rome. It is to embrace original Central Europe, inhabited by some 73,000,000 Ger- mans and 100,000,000 vassals, make the Black Sea a German lake, and extend clear to the Persian gulf, through the states of Bulgaria and Turkey. Nor is this all. Already German dispatches are talking of the way being opened to India and the Orient. The German government started to put its scheme for a Mittel- europa into effect years ago when it began the construction of the Berlin-to-Bagdad railway. Little Serbia stood in the way, so Serbia was attacked and the world was plunged into war. In the opposite corner of Europe Belgium was invaded and crushed. The world then thought that this was only because Belgium offered the easiest route to France; but study of the Mitteleuropa plan of years ago shows that Belgium was included in the scheme of conquest. So it was taken. The German plan, well advertised long before the war, also includes Holland. Holland has not yet been taken, but it stands trembling in awe of German might; and it takes no prophet to show that Holland will be seized, with its rich colonies, should Germany be finally vic- torious in this war. MITTELEUROPA NOW WITHIN GERMAN GRASP Mitteleuropa, with Germany in a position to say who shall and who shall not pass from Western Europe to the Orient, through her control of land routes and of submarine bases which would make the sea impassable, today is an accomplished fact in the German mind. Only a crushing victory for the Allies on the western front can wrest it from her. "How does all this affect America?" one may ask. Germany was a late comer in the family of great nations. Most of the uncivilized world had been preempted by other nations before she arrived. Ger- many wanted colonies. To get them she would have to take them away from someone else. Africa and South America offered the best fields for German colonization. England possessed the best part of Africa-the parts Why We Fight 15 in which the white man might hope to settle and thrive. England had a mighty fleet, and a disposition to hold what she had, even though she did not show a disposition to fight for more. There remained South America. It was divided among weak na- tions. It was protected only by the Monroe Doctrine. This Monroe Doctrine was a sacred thing to Americans, but, not being backed up by mighty armies and fleets, was not even a "scrap of paper" to the Germans. Can anyone doubt, should Germany succeed in welding into a mighty empire the 73,000,000 Germans and the 100,000,000 inhabi- tants of the vassal and conquered states of her Mitteleuropa, that her next step would be toward the west. The very fact that she had this empire would presuppose the defeat of England, so that no British fleet would stand between us and Germany when the time came for the kaiser to send his legions across the Atlantic. On land Germany would be able to put into the field an army of 30,000,000, not the mere ten or twelve million as now, and no European state would dare to move to thwart her. MONROE DOCTRINE SCORNED BY GERMANS This plan has been just as well advertised as her others. Ger- many makes no attempt to conceal her scorn of the Monroe Doctrine. Influential Germans have told us in writings and speeches how they would treat it. They practically set the date. How much more definite the German plans for world conquest have become is shown by her action in Russia. A year ago Germany was anxious to make a separate peace, "without annexations and in- demnities." Then Russia collapsed and made peace, but Germany went right on making conquests. Germany encouraged Ukrainia to form itself into a separate state, and then made an ally of it. German troops marched with the Ukrainians to Odessa, on the pretext of aiding them to expel the Bolsheviki from Ukrainian territory, but when Odessa fell, what did the German wireless message that came across the sea say? That Odessa had been restored to the Ukrainians? Not at all. It said: "Odessa today fell into the hands of the Germans. This opens a way for German armies to Persia, India and the Orient." The fact that Persia is supposedly neutral does not bother the Germans at all. 16 Why We Fight "STRONG PEACE" NOW THE GERMAN AIM 46 As in the East, so in the West," is a motto which, of recent weeks, has been much heard in Germany. At a conference of the National Liberal party, held in March of this year, the following amazingly frank declaration was made: "Our policy has been directed to making the government and ma- jority turn away from the Reichstag resolutions of July 19. (Peace without annexations and indemnities.) In that we have succeeded. Peace has just been made in the East under conditions in flat contra- diction to the policy of July 19, and has received the support and assent of all the bourgeois parties." In other words, all Germany is now planning both annexations and indemnities, such as will leave her without a formidable opponent in the world. The Berlin Lokal Anzeiger, only recently, openly advocated the annexation of the Belgian coast and the French districts of Longwy and Brie. Can we make peace now and leave Germany, flushed with victory, in possession of all she has gained and lusting for further conquest? If we did, would not the whole world live in perpetual terror of Ger- man aggression, each country awaiting its turn to be gobbled up? Can any red-blooded American talk about peace without victory— victory so decisive that Germany will be forced to disgorge all it has seized, and the German menace be removed from the world forever? IV BECAUSE GERMANY, FOR YEARS, SOUGHT TO UNDER- MINE OUR GOVERNMENT AND OUR IDEALS We are fighting Germany for the right to live our own lives as we see fit. We are fighting for our laws, our ideals, our homes, our institutions. "But how," one may ask, "were all these things threatened by Ger- many before the war started? It is easy to see how they may be threatened now, for if we are defeated we are lost, but before the war started did Germany menace those things we hold most sacred?” Let the Germans themselves answer. After you have read the evi- dence out of their own mouths, you may decide whether or not Ger- many planned to upset our institutions, our ideals, our very mode of life. We went into the war April 6, 1917. The evidence, given here from German sources, all dates back to before that time. In 1901 the National German-American Alliance was formed in the United States. In 1907 it was incorporated by act of Congress. In April, 1918, it gave up its charter to escape further congressional investigation. One of the objects of the Alliance, as officially an- nounced, was "to check nativistic encroachments." In other words, to keep the Germans from becoming Americans. Another object was "to awaken and strengthen the sense of unity among the people of German origin in America." SOUGHT TO INFLUENCE AMERICAN POLITICS Still another was "to combat Puritan influences, particularly in the form of restrictions upon the liquor traffic." "The Alliance," its preliminary statement of aims concludes, "is pledged to bring its entire organization to the support of any state federation which is engaged in the struggle for any of these objects." It was pledged, in other words, to have its members vote, not as 18 Why We Fight individuals but as German-controlled units, for or against anything of which they did not approve. The desire for resisting "nativistic encroachments" was particularly abhorrent to American ideals, because the effort in this country has always been to keep politics free from racial or religious influences. Yet here was a body, proclaiming itself German in origin and thought, seeking to perpetuate this German feeling in the midst of America. From its very start the Alliance sought to foment discord with England. It always spoke of the American press as "the Anglo-Amer- ican" press, and its carried out a long and well directed campaign for the introduction of the German language into the schools and its use in civil life. It did not want its members to become Americanized even sufficiently to speak to their brothers in the land of their adoption in the language of this country. "The National Alliance," according to an issue of its official Bulle- tin before this nation entered the war, "is waging war against Anglo- Saxonism, against the fanatical enemies of personal liberty and polit ical freedom, it is combating narrow-minded benighted know-nothing- ism, the influence of the British, and the enslaving Puritanism, which had its birth in England.” THREATENS THOSE WHO OPPOSE GERMANY Again, in another issue of the Bulletin, it says: "Our own prestige depends upon the prestige of the Fatherland, and for that reason we cannot allow any disparagement of Germany to go unpunished." "The race war which we will be compelled to go through with on American soil will be our world war," said the New York Staats Zei- tung in fighting a proposal to amend the New York constitution to make ability to speak and write the English language a requirement for suffrage. Ludwig Fulda wrote a book, “American Impressions." They were impressions of a German who had studied this nation with a view to seeing it ultimately Germanized. "Germanization is synonymous with causing to speak German," he said, “and speaking German means to remain German.” This may throw some light on the effort to perpetuate the sub- sidized German language press in this country. If immigrants from Why We Fight 19 Germany spoke and read English, they were likely to become Amer- icans. The National Alliance called upon all of its hundreds of local societies to work for the enactment of laws making the teaching of the German language in the public schools compulsory. At the same time it was helping to support and encourage hundreds of schools in this country in which the instruction was entirely in German. Had there been an effort made to make the teaching of the language of this nation. compulsory in those schools, you can imagine the outcry against "per- sonal liberty" that would have been raised. FOSTERED ALL DISCONTENTED ELEMENTS Wherever there were signs of discontent, of a movement which might tend to disrupt this country, or any other which Germany might find as a commercial rival, the German-American Alliance was sure to be on the job. It gave support to the Irish-American societies, because these societies, before the war, were working for the separation of Ire- land from England, a matter in which Germany, at that time, could have no legitimate interest. But Germany, even then, was preparing for war, and was doing every possible thing to weaken its coming enemies. A disorganized America, one filled with German reservists, would be in no position to side with her enemies, Germany figured. On this subject the much-quoted Bernhardi wrote: "Measures must be taken at least to the extent of providing that the German element is not split up in the world, but remains united in compact blocks, and thus forms, even in foreign countries, political centers of gravity in our favor. The isolated groups of Germans abroad greatly benefit our trade, since by preference they obtain goods from Germany; but they may also be useful to us politically, as we discover in America. The German-Americans have formed a political alliance with the Irish; and, thus united, constitute a power in the state with which the American government must reckon." Can there be anything more deliberate than this statement of Ger- many's aims to mould American political institutions in favor of the Fatherland? How far they had succeeded was shown by the actions of some members of our Congress and Senate just before and after war was declared. With the outbreak of the war in Europe the actions of the German- 20 Why We Fight American Alliance became bolder. The campaign for membership took on new vigor. An address was issued calling upon Americans of German origin to come to a consciousness of their duty, to hold fast to their language and to the customs and culture of their fathers. Efforts were made to scare the American public into believing that war with Japan was imminent, though Japan was engaged in fighting Ger- many. GERMAN PLOTS AGAINST THE UNITED STATES So serious were the plots to embroil us with England that arrests were made here of persons who actually planned a German-American invasion of Canada. Mexico was so stirred up by German intrigue that, when the war started, many persons actually believed our troops would see their first and perhaps hardest fighting on the Mexican bor der, and the first mobilization was toward that threatened line. An enormous negro uprising was actually planned, and emissaries were sent here to foment it by Germans who had made themselves believe that the Southern states, with their large negro population, could be made to rebel. The utter ridiculousness of the plan does not detract from the fact that Germany, by every means in its power, was trying to disorganize our government and overthrow our institutions. Can we talk of peace with a Germany that, even in times of peace, is trying to disorganize our country, foment strife, and destroy our unity, simply because a strong, united nation on the other side of the world is not German? Can we make peace with a country that fills our land with paid emissaries in an effort to make its language supplant our own? Can we talk of peace while a government that considers the world its prey dominates Germany? Or shall we fight until the world is delivered from this German menace, and our country is left to develop its own institutions, customs and ideals free from underhanded interference on the part of an autoc- racy across the sea? V BECAUSE GERMANY MENACES THE FREEDOM OF THE WORLD, AND RUSSIA CAN NO LONGER RESIST We are in this war with Germany because it is a war for freedom more truly than ever before was a war fought for the liberty of man. In times past, it is true, men have fought for freedom from oppressors. Sometimes they have won and sometimes they have lost. But always there has been a place in this big world where those who had lost in the struggle at home might go and find a country where they might enjoy the liberty they loved. Now all is different. If the forces which are fighting for freedom in this war are defeated, there will be no place in the whole world to which they may go to find a refuge from Prussian domination. Every land under the sun will be directly or indirectly under control of the victor; and if the victor is autocracy, freedom perishes. The land where freedom is most imminently menaced by the legions of Prussian autocracy, at this moment, is the land where unwonted freedom temporarily has run riot and has lost the power to fight for itself Russia. We are fighting for the freedom of Russia, and must continue to fight for it until Russia learns what freedom means, and iş again able to fight. If we do not fight, freedom will die in Russia; Prussian autocracy will rule and exploit the country for its own ben- efit; and the very forces which overthrew the Czar will be turned against the freedom not only of themselves, but of other lands. MIXED SENTIMENTS AS TO RUSSIA In years gone by, when the forces of revolution were showing themselves here and there in Russia, they had the sympathy of America in spite of the methods of terrorism of which we did not approve. When the Czar and the Kaiser, leaders of autocracy, were locked in a death grapple, Russia still had our sympathy because she was fighting on the side of those who were seeking to safeguard the world from Prussian militarism. When the Czar was deposed over night American feelings were 22 Why We Fight mixed. There was joy at the downfall of an old, and sometimes cruel autocracy, but there was fear that Russia would become too disorgan- ized to fight further, coupled with the thought that perhaps the revolu tion had come too soon to be effective. Then followed the brief regime of Kerensky, when it began to look as though freedom in Russia might be an organized freedom, prepared to fight for its rights, and all America hailed the Russian revolution as a blessing. It had become absolutely correct to say that the war was a war of democracy against autocracy. No pro-German could longer point to the Czar, whenever an argument arose. Finally came the Bolshevik revolution, in which Kerensky was over- thrown. Russian industry and Russian society were disorganized, and Russian armies ceased to fight. The Kaiser's armies pressed on unop- posed, took what they desired in spite of a signed peace, and Russia appeared to be about to pass completely under control of Germany. America stood aghast at the prank freedom had played, and American opinion turned largely against Russia, but thinking men refused to give up hope. Russia was and still is incapable of offering resistance, but Russia is not resigned to autocracy. It devolves upon others to fight for the freedom Russia must have. RUSSIAN COLLAPSE BOLSTERS UP GERMANY The Bolsheviki-literally, the masses-were, on many sides, accused of being in league with the Germans. Trotsky and Lenine were ru- mored to be accepting German pay. Betrayal of the revolution for gold was alleged. All sorts of statements were made and discussed. None of them has ever been proved. Russia had just collapsed; ignor- ant Russians refused to fight, and the thwarted lust for conquest was renewed in German hearts. The experience of other nations has been that men who loved freedom were willing to fight for it, and to die for it if necessary. The Russian attitude of non-resistance was something new in the world, and is hard to understand. The Bolsheviki represented the extreme idea of liberty. To them freedom meant not the right of the majority to choose their form of government, but the right of the individual to be free from all forms of governmental restraint. They would tear down the old order completely, at one stroke, and set up the millenium. Why We Fight 23 They would divide the land, the factories and the tools among the work- ers, and have no masters henceforth. All they need do, the leaders believed, was to tell the masses of the remainder of the world, what they were doing, and the world would follow. Why should they fight the German armies, when all that was necessary was to show the Germans themselves how easy it was to establish the millenium? DISORDER FOLLOWS BOLSHEVIK REVOLUTION Even in Russia, however, there were dissenters. Some took up arms; and the Bolsheviki, who fought the Germans not at all, fought their brothers most ferociously. The result was anarchy, lawlessness, massacres, the disorganization of the railways and the failure of the food supply. The millenium refused to come at the mere decree of the Bolsheviki. It was shown that there must be organization and govern- ment of some sort. But still the Bolsheviki clung to their vain hopes. They accepted an ignominious peace, which was no peace at all, from Germany, and sat supinely while German fetters were being forged for them. They have not yet awakened. The peasants who composed their armies are rushing home to be there when the land is distributed. They are get- ting as far from the battle line as possible, not realizing that the battle line is following them. They dream of existence in which one labors because he alone wills it, and without compulsion of any sort-they who have been driven by the knout-not realizing that an even more severe taskmaster, one who will be harsher because he is more efficient, is at their heels. The Russian peasant believes today that he has achieved real free- dom. It will take much bitter experience to teach him otherwise. While he is getting it, the United States and its allies must be his guardians. GERMAN PROPAGANDA POISONS PEASANT MINDS Russia will no longer fight side by side with her former allies. So insidious has been the German propaganda that, in many instances, Russian hatred of the allies seems to be deeper than hatred of Germany. Allowing Germany to lop off her richest provinces, containing even her capital, Russia turns a jealous eye toward Japan when the latter · 24 Why We Fight country professes to see a necessity for sending troops into Siberia to block the advance of Prussianism. * Therefore the United States cannot render direct aid to the strug- gling people of Russia. She cannot send them armies and supplies, for they have refused to do battle for themselves. To fight for Russia she must fight on the western front. She must do her share toward humbling the Kaiser, and forcing him to relinquish his grasp on the East. Russia must be freed from Prussian militarism. After that no one can say what is her destiny. She may break up into lesser states, or may be rejuvenated like the French were after their long period of disorganization which began in 1789. Any number of things may happen, but there is one thing that cannot be allowed to come to pass. That is the Kaiser must not be permitted to enthrall the people who have thrown off the yoke of the Czar, for if he does he will organize them into a yet greater military machine to use against the freedom of the world. That is why we cannot talk peace with Germany as long as the Kaiser has one single Russian province under his heel. VI BECAUSE GERMAN LUST OF CONQUEST MENACES, IN MANY WAYS, OUR VERY NATIONAL EXISTENCE Any one of the reasons why we are at war with Germany, men- tioned in previous articles of this series, would be sufficient justification for this nation taking up arms. Only extreme patience, coupled, often, with complete failure to recognize the seriousness of the German men- ace to America and the world, kept the United States out of the war for nearly three years before it finally decided to join in. In fact, justification for war with Germany existed years before the conflict in Europe was begun. It has been shown that Germany, for years, had been plotting within our borders, encouraging immigrants to become citizens and at the same time remain faithful to the kaiser. She filled our land with spies and agents of disorganization when, to all outward appearances, rela- tions between America and Germany were of the most friendly char- acter. From evidence supplied by the Germans themselves, it has been shown that Germany's doctrine that might alone is right would menace the very independence of the United States just as surely as it destroyed that of Serbia and Belgium, just as soon as Germany felt herself strong enough to make a formal attack. German lust of conquest knew no bounds. GERMAN PLANS FOR WORLD CONQUEST Events of the last year have proven that Germany, having split the world in half by her creation of Mitteleuropa, extending from the Baltic almost to the Persian gulf, was planning to devour the halves separately. The fact that our half of the world was being reserved for dessert was all the more reason why we should enter the war while a part, at least, of the other half was still making resistance. Germany's efforts to build up compact groups of Germanized resi- dents in the United States, and to dominate our politics from Berlin, extended back many years before the war. Their extent was never 26 Why We Fight 1 realized until we approached the time to enter the struggle, when the treacherous power of the Kaiser began to be felt even in the halls of our Congress. Finally, when the collapse of Russia revealed the fact that Germany was fighting, not a war of self preservation, but one of conquest pure and simple, and that the freedom of the entire world was menaced, any question of why we are fighting seemed superfluous. The military party in Germany started the war because it believed the time ripe for conquest. This fact alone is sufficient justification for any nation, standing for the ideals of democracy and freedom, to take up arms. When a government exists which will wantonly plunge a world into war just to extend its own borders and its own trade, it is time for other nations to fight. HELPLESS NATIONS THE FIRST ATTACKED Proof that ambition, and not consideration of its own safety, prompted German to begin the war is given by the fact that Serbia and Belgium, two helpless little nations, were the first attacked. Serbia blocked the way to the East and Belgium to the West. If Germany would attack and crush helpless little nations, with scant material re- sources, there was all the more reason to believe that she would attack one big and rich and helpless, when opportunity offered. In fact, there had been much talk in Germany long before we entered the struggle, of levying an indemnity on the United States to pay Germany's war costs. Germany had, under no compulsion, signed a solemn treaty to pro- tect the neutrality of Belgium. When she branded this treaty "a scrap of paper," she gave proof that all her treaties would be so considered when her interests demanded. In other words, Germany's invasion of Belgium meant the tearing up of every treaty which existed between Germany and other nations. It was ample justification for America going to war at that moment. This did not spur America at the time, but Germany's cruelties in Belgium, surpassing anything ever before known in modern history, gave further evidence that the world was not safe as long as such a government existed in it. If Spanish oppression in Cuba was sufficient justification for the war of 1898, how much more ground did America have for declaring war because of German barbarity in Belgium? Why We Fight 27 At the very outset of the struggle in Europe, Germany gave proof that no treaties or conventions would govern her acts. She bombarded undefended cities, enslaved conquered populations, engaged in pillage and terrorism of the most wanton kind. She disregarded all the stipu lations which had been made at The Hague convention, and flung inter- national law to the winds. What more justification could we have needed than all this cumulative proof that a buccaneer nation was abroad in the world, and that no one's rights were sacred? MURDER OF THE INNOCENTS AT SEA Then came Germany's conduct on the sea. With her battle fleet cravenly seeking shelter behind the defenses of the Kiel canal, Germany sent out her submarines and began a war on unarmed merchantmen. Women and children were her victims. American citizens by the score went down to death on the Lusitania. The United States made a pro- test, and Germany promised to mend her ways. This she did, for a time, until she could build a fleet of bigger and better submarines, and then her pirate sea warfare broke out with fresh vigor. Vessels of neutral nations were subjected to the same treatment as those of Ger- many's foes, and an insolent warning was sent to this country that the Stars and Stripes could float on the Atlantic ocean only by German permission, and under the most humiliating conditions. How could we keep out of war when Germany, after ruthlessly killing our citizens, deliberately closed the sea to us? German plotters and spies, under the direct leadership of the Ger- man ambassador to this country, worked almost openly, blowing up industrial plants, sinking ships in our harbors, and menacing railroads and canals. Germany, spurred by successes, openly began to announce plans for disciplining the United States. She scoffed at the Monroe Doctrine, and tried to create a German state in Brazil which, in time, would be strong enough to bring about a revolution and overthrow the demo- cratic government there. She tried to create disunity in the United States itself, and forced this country, at last, to take up arms to preserve its very national existence. MAKES THE WORLD AN UNSAFE HABITAT By her huge armaments, her disregard of treaties, and her evident 28 Why We Fight reliance on force alone, Germany was rapidly making the world an unsafe place in which to live, forcing all other nations to adopt the military system, or be at her mercy. The German military policy, alone, would have been sufficient justification for the remainder of the world to combine against her, even though she had not begun the war when she did. Nations have just as much right to peace and security, as do individuals who employ policemen to protect them from bandits and thieves. The German ambition to force German kultur on the remainder of the world was well exploited. Kultur, to the German mind, was not what culture is to us. It was the whole German system, of government, of commercialism and of life. There was no place for democracy in a world which bore the stamp of German kultur. If we valued our form of government, we had to go to war. Lastly, Germany stood in the way, an insurmountable obstacle, to any league of nations which might be formed to keep the peace of the world, and to prevent the strong from preying on the weak. The whole German doctrine has been that Germany should grow strong at the expense of her neighbors. Prussian policy for centuries has been to weaken other nations that Prussia might divide and conquer. There could be no hope of creating a league of nations pledged to support right and justice, so long as the Prussian military policy prevailed. The fight which England and France took up from the beginning, and in which Belgium and Serbia laid down their lives, was America's fight from the first, and America's fight long before it began, had America but realized. Now America does realize, and America cannot and will not make peace until the Prussian lust for conquest is curbed and the Prussian military power crushed for all time. Our Peril on the Eastern Front Allied Victory in the West Barren Unless Slav Peoples to the East are Freed From German Domination and Formed Into Strong Independent Barrier States BY SPEED CLARENCE you THE UNION LEAGUE CLUB OF CHICAGO 1918 After you have read this pamphlet, please pass it on in order that the message it carries may reach the largest number of persons mar TINILITIE ………………………………… ……………………………………………… FOREWORD A few months ago the cause of democracy was in dire and direct peril on the Western Front. German armies were driving victoriously forward. German troops were filled with enthusiasm and the will to win. There was imminent danger that the British and French armies would be separated and crushed in detail, and the Allied cause lost in military defeat before America could make her weight felt. Today this immediate peril has disappeared. German armies are in retreat. German soldiers are dispirited. American millions are pour- ing into France, full of fighting enthusiasm. British and French alike have been rejuvenated in spirit. Prospects now are bright for a decisive military victory for the Allied cause. Nevertheless there remains great danger that Germany will win this war. The Central Powers have gained hundreds of thousands of square miles of territory and power over millions of people by their victories. on the Eastern Front. Even before the war they had millions of Slavs under their control. All Russia, as matters now stand, lies open to Teutonic domination and exploitation unless the Allies give effective assistance. Our greatest peril now lies on the Eastern Front. After decisively defeating Germany in the West the Allies must dictate a peace which will force her to disgorge all she has gained in the East. They must go further and force Austria-Hungary to set free the Slav peoples-Czecho- Slovaks of Bohemia, Moravia and Slovakia; Jugo-Slavs comprising the Slovenes, Croatians, Dalmatians and Serbs; the Poles and Ruthenes of Galicia, and the Rumanians of Transylvania and part of Bukowina- and consent to their formation into independent barrier states which will forever bar Teutonic expansion to the Eastward. If the Allies do not do this, Germany will in time consolidate and organize these possessions, prepare to feed herself despite all blockades, form an army twice the size of the one she was able to put into the field in this war, and strike again when she is ready. America in times past has paid little attention to the situation in Eastern Europe. The time has come when every American should study this complicated question, realize its extreme importance in connection with the future safety of the world, and demand that no peace be made which will leave the Central Powers in a position to prepare for a future and mightier war for world conquest. Democracies can only fight for causes which are approved by the masses of their people. They cannot be driven into war at the behest of a ruler. Those who make peace for democracies must be guided by the wishes of their peoples. It is the duty of every individual American to know the facts and think clearly and to demand first a crushing military victory on the Western Front and then a peace which shall remove forever the German menace to world safety on the Eastern Front. [For map, and brief sketches of the nations held in bondage by the Central Powers, see Appendix.] I GERMANY BATTLES TO KEEP LOOT IN EAST Fifty-five million souls have been reduced to virtual slavery and 494,552 square miles of territory have been overrun by the Germans as a result of the war on the Eastern Front. From the Arctic Ocean to the Black Sea the heavy hand of German domination has been laid upon conquered peoples. A territory more than twice the size of the present German Empire has come under German rule, and the population of the German Empire itself is but a few millions greater than that of the lands which have fallen a prey to the Kaiser's armies or his intriguing diplomats. Germany can no longer hope for victory on the Western Front. The weight of America's millions at last is beginning to be felt, and the Kaiser's legions are moving backward. But Germany has not lost hope of keeping what she has gained on the Eastern Front. She believes that the attention of the Allies can be distracted by large concessions in the West, and that her diplomats will succeed where her armies have failed, so that she will be able to retain her conquests to the East, organize and develop them with German efficiency, and then, when the time is ripe, strike again with a force which will be irresistible. The lands which have come under absolute German dominion as a result of the war are: * Finland Esthonia Livonia Courland Kovno Area in Sq. Miles 144,253 7,718 18,160 10,535 15,687 Population 3,000,000 500,000 1,500,000 750,000 Serbia 1,750,000 Area in Sq. Miles Russian Poland 49,130 Ukrainia 163,249 50,720 Rumania Population 11,500,000 26,500,000 6,850,000 35,000 4,000,000 494,552 55,250,000 In addition the whole of Russia and Siberia will remain open to German exploitation unless the Allied and Czecho-Slovak armies are successful in expelling the troops of the Central Powers. The area of the German Empire itself before the war was but 208,- 780 square miles, and its population was about 68,000,000. Austria- Hungary, its ally and practical vassal, has an area of 238,977 square miles and a population of about 53,000,000. Germany inveigled poor deluded and disorganized Russia into a peace on the basis of no annexations and no indemnties, and then pro- ceeded to take what she wanted on one pretext or another in the guise of setting up separate states whose independence would be but a polit ical fiction. Finland she induced to revolt, and then sent German troops in to help Finland against the Russia with which she was at peace. The result is that Finland now is absolutely dominated by Germany; the Figures from 1910 Edition of Encyclopedia Brittanica, corrected and estimated to round numbers, taking into account natural increase in popu- lation and parts of provinces, where boundaries are indefinite. 4 Our Peril on the Eastern Front Kaiser's troops are in control, and plans are under way to make Finland an “independent" nation with a Hohenzollern prince on the throne. The Russian provinces of Esthonia, Livonia, Courland and Kovno, lying along the Baltic, Germany proceeded to grab outright, and now proposes to annex directly to the German Empire. This, with German domination of Finland, will make the Baltic practically a German lake. Poland is to be another "independent" state, if the German plans do not miscarry, with a German or Austrian prince as king. Ukrainia, with the exception of Poland, the richest part of Russia, is now nominally a republic, but German troops are in control and already there is talk of making it a kingdom ruled by a German prince. Rumania was forced to make a peace which gave Germany practical control, and since the treaty was signed Germany has been making new and harder conditions all the time and enforcing them at the point of the bayonet. Poor little Serbia, though its shattered armies are still valiantly fighting, is abso- lutely overrun by the enemy. No doubt the peace terms for it will be harshest of all, unless Germany is beaten on the Western Front. ན Pause and consider for a moment what these conquests mean if Ger- many is allowed to keep and consolidate them. From Finland and the Russian provinces along the Baltic Germany has gained vast wealth in timber and complete freedom from any rival trade. From Poland she has gained a well developed industrial and agricultural region, amply able to add greatly to her ability to make war in the future. From the Ukraine and Rumania, the grainary of Europe, she will have gained cereals which would make her independent of the outside world, and oils and minerals in such vast quantities that practically the whole con- tinental European supply would be in her grasp. From Serbia she has gained the open door to the Orient through her vassal states of Bulgaria and Turkey. From of all these states Germany will have gained an industrious and virile population which, if organized under the German plan, would furnish an addition of some 8,000,000 men to Germany's armies. The Central Powers, then, if allowed to keep these conquests, would be able, after a few years of rest and recuperation, to put an army of 30,000,000 men in the field, to feed and clothe them without calling upon the out- side world, and to so dominate the avenues of communication that the remainder of the world would be at their mercy when they chose to strike again. Laying aside all humanitarian reasons, that is why America and her allies cannot afford to make a peace until German militarism has been destroyed. Even if we could stand by and see fifty million people en- slaved in Eastern Europe, we cannot, nor can any other nation which hopes in future to live in peace and security, dare make a peace which will give an uncrushed Germany an opportunity to organize such a vast territory and population into a military machine beside which the pres ent German armies are dwarfed, and strike again for world conquest when the time is ripe. II STRANGLING OF RUSSIA SOUGHT BY GERMANY Russia, with its millions of square miles of undeveloped territory in Europe and Asia, and its remaining 130,000,000 inhabitants, will be cut off from the open sea and economically strangled by Germany if the Kaiser is allowed to keep the vast territories he has taken possession of by force of arms and intrigue on the Eastern Front. With Finland and the Baltic provinces in Germany's possession, Russia will be cut off from the Baltic except for the port of Petrograd, and there is no assurance that Germany, if allowed to do so by the Allies, will not find some excuse for taking possession of that city. Domination by Germany of the Ukraine and the territory seized by it with the aid of German and Austrian troops, will cut Russia off from the Black Sea, and communication with the outside world by water in that direction. Only the Pacific Ocean, separated from the main por- tion by thousands of miles of railroad, will remain as an export and import outlet free from German domination. Thus will the whole of Russia, the vastest field for industrial and commercial development left on the globe, be at the mercy of German exploitation. Russia will, to all intents and purposes, have ceased to be a European nation. It will have no communication with Western Europe except through German controlled lands. It will not be able to ship its grain Westward except by permission of Germany. Nor will it be able to import the vast amount of agricultural and industrial machin- ery it must have except from Germany or through Germany, except over the single-track 8,000-mile long Trans-Siberian Railroad to the Pacific Coast. Russian history, for ages, has been made by the efforts of this semi- Asiatic people, endeavoring to embrace European civilization, to expand their territories toward warm water. It has been counterbalanced by the German and Austrian "Drang nach Osten" or "pust toward the East," which expresses the imperialistic aims of the Teutonic countries. They have long recognized that their future lay toward the East, where the lands were peopled by a Slavic population and were ripe for exploita tion, commercially or through out and out conquest. With the collapse of Russia as a military power the great barrier to the "Drang nach Osten" is removed. Even in the days before the war, when the Czar and his Cossacks offered something like real opposition to German military encroachment, the German commercial interests had penetrated Russia to such an extent that a large section of the business of the Czar's empire was under German control. 6 Our Peril on the Eastern Front No less successful had been the German secret propaganda. Court circles, headed by the German-born Czarina, were notoriously pro-Ger- man. Official circles in the army were affected, and such was the German hold on business interests that the production of war supplies by Russia was, for a long time, almost impossible. If Germany, because of its proximity and because of its nationally supported spy and commercial systems, was able thus to dominate Russia before the war, think what it will be able to do now unless the Allied nations, by a smashing victory, force it to disgorge the spoils it has taken in the East. The great export ports of the Baltic, and the ports of the Black Sea will be in German hands if, by any chicanery, Germany can persuade the victorious Allies to allow her to keep possession of them. Constan- tinople will be ruled by Germany's vassal state, Turkey, unless the Allies force Turkey out of Europe. All Russian goods will thus either have to pass through Germany or land controlled by Germany or take the tremendously expensive Pacific route. The Kaiser's merchants will have first call on everything which Russia will have to sell, and the Kaiser's manufacturers will have everything their own way in supplying the things which Russia will need to buy. German capital will build Russian factories and railroads, develop Russian mines and forests, and furnish the machinery for Russian agri- culture. German merchants will become established all through Russia, and will buy their goods from Germany. German "kultur" will be imposed upon the Russian peasant, and Germany as a whole will grow rich through this monopoly of Russian trade and industry. It may go even further. Powerful Germany, no doubt, will find additional excuses for actually taking territory away from weak and disorganized Russia. Every time some exasperated Russian explodes a bomb under some German diplomat, the Kaiser will likely enough use it as a pretext for seizing another Russian province. The Czar's wall of Cossacks has been removed. Nothing will re- main, unless German militarism is crushed, to prevent the more or less gradual subjection of 180,000,000 people of non-Teutonic races, and their exploitation for the benefit of the German privileged class. Ger- many will see to it that there is no Eastern Front the next time she sets out to fight the nations of Western Europe for complete domination of the world. Russia is a long ways from the United States. Most of the people of America are disappointed with the way Russia collapsed and failed the Allies in the war. Our Peril on the Eastern Front 7 "What concern is it of ours what happens to Russia?" is the question one hears on many sides. The concern is just this: A Germany with predatory ideals allowed to despoil Russia will become so powerful that no nation or combination of nations can oppose it when next it is ready to strike. It will have ample funds for financing its next world war. It will have such enormous resources that no blockade can interfere with its supply of food and munitions. Such a Germany is a direct menace to the United States because it sees in this country its greatest rival in world trade; and Germany, gone mad, cannot conceive of commercial rivalry divorced from political and military rivalry. And so when Germany strikes again, it will strike the United States; and one nation or the other must perish. The United States, in common with its Allies, must see to it now that no peace is made with Germany which will leave it in a position ever to strike again as it did in August, 1914. Therefore there can be no peace until Germany has been forced to disgorge all it has gained on the Eastern Front, and more. III GERMANY STRIPS RUSSIA OF NECESSARY RESOURCES It is not just square miles of territory that Germany takes when she wins a war. Germany is very careful, when she takes territory, to take just that part which will most cripple her neighbors, and make them least able in future to resist her aggression in a commercial and military way. Thus in 1870, when Germany had France at her mercy, she took Alsace-Lorraine. These provinces contained what was then thought to be all the iron ore deposits in France. Since then other deposits have been discovered and developed in the Briey basin, and now Germany is seeking to take that region. Likewise all the coal and iron of Belgium and the coal of Northern France now are in German hands. So it is with Russia. German leaders realize that the whole of Russia cannot be taken over right now. Russia is too vast to be swallowed and digested all at once. So Germany plans to take now those portions of Russia which are richest in natural resources and industrial develop- ment. Thus the remainder of the vast country will be reduced to im- potence, and made dependent entirely upon Germany for the things which make for individual progress in modern times. In carrying out this policy the seizure of Poland and the Ukraine are Germany's trump cards right now. Poland, before it was devastated by the Germans, was the chief industrial region of Russia, and the Ukraine and portions of the Caucasus which the Germans are trying to control, contain the greatest part of Russia's developed natural wealth-coal, iron, copper and oils and in addition its chief agri- cultural resources, which four years of short rations have taught Ger- many to consider as important as coal and iron. The case of Poland is one which particularly merits the attention of the United States and the Allied nations. Poland was a great nation when the states now composing the German Empire were weak princi- palities with no sense of national unity. Despite more than a century of oppression the Poles still retain their language, their customs and their sense of national unity. They are capable of being converted into a strong and virile and independent nation, if Germany's strangle hold can be broken, and an independent Poland will do much to block a predatory Germany's military and commercial progress toward the East. Poland, it will be remembered, at the end of the Napoleonic wars, was partitioned among Prussia, Russia, and Austria. Russia oppressed the Poles, sometimes brutally, but made no effort to cause them to cease being Poles. Austria in the Polish province of Galicia, adopted a more Our Peril on the Eastern Front 9 liberal attitude, allowing the Polish language and customs to be used, and there was comparatively little friction. But Prussia set out upon a deliberate policy to cause the Polish language to be forgotten, to drive Poles from the higher offices and finally to oust them from ownership of land and to Germanize that part of Poland which fell to her share so completely that the very name of Poland would be forgotten. Prussia, despite a century of persecution, failed. But it learned a new lesson. It learned that a Pole ceased to be a Pole only when he was dead. Therefore when Germany overran Russian Poland, it saw to it that there were as many dead Poles as possible. Through starvation and through deliberate wholesale murder Ger- many set out to depopulate Poland, and lay all this region open to German immigration and colonization. We have ample testimony to the effect that hundreds of thousands of Poles met death by actual starv- ation. The factories in the industrial centers were closed, and Polish workmen were forced to go into Germany to work to keep from starv- ing. Germany would not even let Polish mills grind Polish grain, but forced the Poles to ship their grain to Germany to be milled, and then whatever flour Germany did not seize, was shipped back to the people. who grew the grain. It is plain that Germany, if allowed to keep possession of all Poland, plans so to destroy the nation that there will no longer be a compact Polish people with national aspirations able to oppose it. Poland is to be colonized from Germany and its industrial resources allowed to reopen only when they have been thoroughly Germanized. The United States, aside from the threat to its future safety if a predatory Germany is allowed to extend its empire, will see a great nation-one which has fought for freedom as valiantly as America itself did—practically wiped off the face of the earth unless the Kaiser's hold on Poland is broken. Ukrainia furnishes the greater part of the iron and coal for all European Russia. It furnishes most of Russia's vast wheat exports- more than enough to make Germany independent of the rest of the world. It furnishes the greater part of Russian sugar, of Russian oil and Russian copper. If Germany is allowed to take possession of all these, Russia would be placed in a position where she never again could assert her rights against Germany. The German Empire would be practically doubled in population, more than doubled in area, and would have a monopoly on the iron with which to make shells and on the oils so indispensable for modern war. Italy is without metals. France will be if Germany can keep only a little French territory and Belgium. Russia will be practically so, if Germany keeps what it has 10 Our Peril on the Eastern Front in its clutches right now. Nowhere in Continental Europe will there be a nation with fuel and iron to wage a war of self defense, and in times of peace they will all be at the commercial mercy of a soulless Ger- many. The result will be that only England and the United States will remain of the great nations with fuel and iron at their disposal. Ger- many will have 140,000,000 people to draw upon for soldiers instead of 70,000,000. Another hundred million will be available to Germany through Turkey and the enlarged Austria and Bulgaria, which are even now Germany's vassals. No nation will be in a position to resist the mighty forces that a predatory Germany would be able to throw into the field for the next war-perhaps twenty years hence. No other Continental nation would be able to furnish the raw material for its own guns and shells. Ger- many, if the Allies do not prevent it by force, would simply consolidate its present conquests, organize and train their manhood, and, when it is ready, set out to conquer all Europe and Asia, and perhaps even America. The United States cannot afford to let predatory and soulless Ger- many remain in this commanding position. Leaving aside all motives of humanity and regard for the rights of other peoples, it must, if it itself hopes to continue to exist as a free republic, continue this war un- til this German power for aggression is shattered completely for all time. IV MUST FREE OPPRESSED PEOPLES OF AUSTRIA Austria-Hungary must be dismembered before the United States and its Allies can make a lasting peace with Germany. This may seem a startling assertion, in view of the fact that this country did not declare war on Austria-Hungary until months after it was drawn into the conflict with Germany, and that now, as always, Germany is recognized as our chief enemy. One might ask, "Why not dismember Germany?", and many probably will so ask unless they stop to think what the objects of this war really are. In the first place this is a war of democracy against autocracy. The cardinal principle of democracy is that the people of any given nationality shall have the right to choose their own form of government. Austria-Hungary is not a nation in the true sense of the word. It is a conglomeration of peoples of several races and tongues ruled against their will by two dominant races the Germans and Magyars-under a historically corrupt and incompetent dynasty. These subject peoples, mostly Slavic in blood, constitute a clear majority of the population of Austria and almost half that of Hungary, yet they have no voice in choosing their form of government. If they dared raise their voices some would choose union with Italy, some with a greater Serbia or Poland, some union with Rumania and some abso- lute independence, according to their race and geographical location. The same cannot be said of Germany. Barring rather restricted areas peopled by unwilling subjects, such as the Poles to the East and the inhabitants of Alsace-Lorraine on the West, which must be lopped off when the peace treaty is written, the German Empire consists of a homogeneous people of the same race and national aspirations. While it may be necessary to assist in a change in the form of government which will enable this people to get rid of the Hohenzollern and the military aristocracy, any enforced division of the German Empire itself which would place portions of its inhabitants under foreign domination would be doing the very thing which the United States and her allies are fighting against-it would be denying a people the right to choose for themselves the state of which they shall form a part. many That is why we hear no agitation for the dismemberment of Ger- our arch enemy-while the conviction grows more and more that Austria-Hungary, that unfortunate monarchy, must be disrupted at the conference table at which the peace treaty is written, if it does not fall apart itself before that time. “How, then, is the dismemberment of Austria-Hungary necessarily 12 Our Peril on the Eastern Front # involved in any consideration of the ambitions of the predatory Ger- many that brought on this war?" one may inquire. It already has been shown how Germany must be forced to restore all that she has taken from Russia either to Russia or to allow the peoples of these territories to form their own independent govern- ments. It has been demonstrated that Poland, when erected into a free state, with no hint of domination, will be a powerful barrier to German military and political expansion to the Eastward. The setting free of the oppressed peoples of Austria-Hungary, and the giving to them permission to unite with nations already in existence with which they have national sympathies, or to form their own inde- pendent governments, as the case may be, will complete that barrier and forever bar Germany from forcible expansion to the Southeast. A free Bohemia will take its place beside a free Poland as a buffer between Germany and disorganized Russia. A restored and strength- ened Rumania, with the millions of Rumanians added to those now nominally independent, will extend the barrier to the Black Sea, pro- vided Ukrainia is fred from German domination. A Greater Serbia, with the millions of Jugo-Slavs in the southern parts of Austria and Hungary incorporated in it, will be an effectual block to Germany's military oneness with Bulgaria and Turkey. Thus, and only thus will the German dream of a Mittel-Europa extending from the Baltic to the Persian Gulf, and opening the way for further conquests in India and the Orient, to be followed by a world domination, be brought to an end. Only thus will the German people be shown that their rulers who have promised them the spoils of a conquered world, have misled them, and that their future lies not in military and political expansion but in thrift and industry and legiti- mate commerce which other nations of the world can respect. Austria-Hungary, as now constituted, and Bulgaria and Turkey have been reduced to a state of vassalage by Germany as completely as though they had been conquered by force of arms. Austria-Hungary could not make a separate peace if she wanted to as long as Germany remains unbeaten on the Western Front. If she could do so and pre- serve her rule over the peoples she now oppresses, she probably would be glad to do so. But the time for that has gone by. She would be overrun by Germany in a week if she tried it, and the Allied nations have already recognized the fact that any peace, to be lasting, must remove the causes of friction. The chief cause of friction in Southeast- ern Europe now is, and has been for centuries, the struggles of op- pressed peoples to escape from their oppressors. There must be no Our Peril on the Eastern Front 13 more oppressors, or, in time, the war will have to be fought all over again. President Wilson has declared unequivocally for the right of self- determination of peoples as one of the conditions of peace. The Allied Council of Versailles in June, 1918, pronounced in favor of giving the oppressed peoples of Slavic blood held in bondage by Austria their liberties. Both the President and the Allied diplomats at Versailles realized that this war, on which so much blood and treasure has been spent, when it is settled must be settled on the basis of right. They see, and every American should see, that, if it is not thus settled, the struggle will have to be faced once more, after Germany and her allies have had time to recuperate, and that when Germany, if allowed to keep its Eastern conquests and complete the organization of her vassal states, is ready to strike again she will strike in a way that the world cannot successfully resist. V MILLIONS IN AUSTRIA HELD IN BONDAGE Considerably more than half of all the people in Austria-Hungary are held in bondage-in practical servitude against their will-by the two dominant races, the Germans of Austria and the Magyars of Hun- gary. These bond-people of Austria-Hungary represent eleven national groups, and though they form a clear majority of the population, have so little voice in the affairs of the empire that they might as well be said to have none at all. All are clamoring for their freedom, and all would fight for it were they given a chance. But few remain at home now except the decrepit old men, the women and the children. Their able-bodied men are drafted into the army and forced to fight against their will. Thousands are deserting, but so complete is the discipline that the majority of them must remain, sandwiched in between Hungar- ians and Germans, until the ramshackle empire falls to pieces or is dismembered at the peace council table. In 1910, the time of taking the last census before the war, there were in Austria proper 9,950,266 Germans belonging to the dominant race of the Austrian half of the dual monarchy and 10,050,575 Magyars formed the dominant race in Hungary. They ruled over the following subject peoples:* * Czecho-Slovaks Poles Little Russians Slovenians Serbo-Croatians In Austria 6,435,983 4,967,984 3,518,854 1,252,940 In Hungary 1,967,970 472,587 2,939,638 Italians Rumanians 2,949,027 In Austria the German population, numbering only 35.58 per cent, has a clear majority in parliament, and treats the Slavs and Latins as inferior peoples. In Hungary the Magyar population outnumbers the Slavs only slightly, but gives them few political rights. It will be remembered that little over half a century ago the Mag- yars themselves were engaged in a terrific struggle for liberty, and were only subdued by Austria through the assistance of the then Czar of Russia. The dual monarchy was then formed, and the Magyars were placated by the granting to them rule over portions of the various Slav races. From a people battling for freedom they have since been trans- formed into a people who apparently enjoy the oppression of others as 783,344 768,422 275,115 *Statistics from the Statesman's Year Book, 1917, census of 1910. These are official statistics, which favor the ruling nations. For instance, nearly all the 1,300,000 Jews in Austria are classed as Germans, while in Hungary not only the Jews, numbering 960,000, but almost everyone else able to speak the Magyar language, are classed as Magyars. Our Peril on the Eastern Front 15 much as the Germans themselves. Most of the Slavs in the dual monarchy came under the Hapsburg rule originally, because of the invasion of Europe by the Turks. The Holy Roman Empire, of which Austria is the decrepit descendant, was the bulwark of Europe against Mohammedanism in those days. Bohemia, threatened with Mohammedan conquest, allowed herself to fall into the power of the Hapsburgs. Hungary was "rescued" from the Turk. As the years and centuries went on other territories were "freed," the last ones to be thus liberated being Bosnia and Herzegovina, which were only formally incorporated into the Austrian empire in 1909. The inhabitants of these two provinces are almost purely Serbian in blood and language, and the seizing of them by Austria would in all likeli hood have provoked a world war at that time had it not been for the fact that Russia, the protector of the little Slav nationalities, was so weakened by the Japanese war and torn by revolutionary movements that it dared not to take up arms. Bohemia, with the neighboring provinces of Moravia and Slovakia forming the most compact and numerous group of Slavs in the em- pire, familiarly known as Czecho-Slovaks, was, before the war, the best educated, the most prosperous and the most highly developed part of Austria-Hungary, in spite of the fact that the Bohemians were under the domination of the Germans of the empire. They clung tenaciously, however, to their desire for freedom, and when the war broke out Bo hemia was soon a seething mass of suppressed revolt. 'Five years ago it might have been possible to placate the Slav races of Austria-Hungary by giving them equal rights with their German and Magyar oppressors. Now it would be impossible. The avenue of expansion for Germany to the Southeast must be closed forever. The just national aspirations of oppressed peoples must be satisfied, or the Balkan problem will remain after this war just what it was before, a continual menace to the peace of the world. It was this Balkan unrest which brought about the Sarajevo murders and which gave the pretext for this war. All the Central Powers were looking for was a pretext. They will continue to look for pretexts in the future unless their military power is shattered completely and the idea that they can enforce their will on subject races is removed forever. Already the experience of the Central Powers in subjecting other nations, a bit at a time, has been such that they now think they can treat the whole world that way. For half a century they have been getting ready for this course of action. Now they have definitely em- barked on it. They have in their grasp conquered territory and subject populations of sufficient magnitude to assure them of practical success if they are allowed to keep what they have gained. They must give up all they have won and more or no spot on the earth will be safe from their aggression in the future. 2 VI AUSTRIAN SLAVS DIE BY THOUSANDS FOR ALLIES "If the Austrian Slavs want their freedom so badly, why don't they fight for it? Why should we be fighting for their freedom?" The answer to the first question is that the Austrian Slavs, thousands and tens of thousands of them, ARE fighting for their freedom, and fighting more heroically, if possible, than the people of any other nation. They are fighting with the French on the West Front, and with the Italians; they are fighting with the Serbs in the Balkans, and they are fighting alone, surrounded by hostile millions, in Russia. Wherever the Slav from Austria fights, he fights under conditions more appalling than those of any other soldier. Like other Allies, he takes the chance of death as he goes into battle, but he takes more. If his army is forced to retreat, the wounded Austrian Slav knows that death is his portion if he falls into the hands of the enemy. He will be executed as a traitor, because, originally he came from Austria. Other wounded may, or may not, be given medical attention and allowed to eke out a miserable existence in a prison camp, but the fate of the captured Austrian Slav, be he wounded or unwounded, is death. At the outbreak of the war, in 1914, it was plain that the Slavs in the Austrian armies would not willingly fight against the Entente Allies. The Germans knew it and the Magyars knew it. They controlled the government, and they at once took steps to see to it that the soldiers from Bohemia, Moravia, Croatia, Slavonia, and Bosnia, who numbered hundreds of thousands, were so intermixed with German and Magyar regiments that they always formed a helpless minority. All the disagreeable tasks-the dirty work-of the army were given to these Slav troops. They were constantly watched, and constantly abused. They were put into the firing line where artillery fire was hottest, and deliberately used as cannon fodder. When they went "over the top" in a charge they went in small bodies, sandwiched in between Germans and Magyars, instead of in whole divisions and army corps. But all of these precautions could not prevent the Slav soldiers from carrying out their purpose to desert to the Entente Allies wherever pos sible. Individuals, small groups, and even, on occasion, whole regi- ments passed over to the Serbs and the Russians, not to seek security in internment camps, but to turn and fight their Austrian oppressors. More than once Czech regiments revolted, and were shot down in cold blood by German and Magyar troops. Hundreds were mown down in pitched battles by machine gun fire, and others were executed by firing squads. Our Peril on the Eastern Front 17 Nevertheless, at the time Austria was making its first big invasion of Serbia, enough Slav soldiers deserted to contribute very greatly to the Austrian debacle and disastrous retreat. The same was true on the Russian front when the Russians were making their, great drives through Galicia. It was plain that the Austrian troops could not stand before the Russians because so many of the Austria-Hungarian soldiers were of Slav blood, and would not fight their friends. So numerous were these desertions to the Russians that it was esti- mated, at the time of the ignominious peace that Germany forced on Russia, that there were from 60,000 to 100,000 of them in the Russian army. The Bolshevist government first agreed to permit these forces, now generally spoken of as Czecho-Slovaks, to keep their arms, and to transport them to Vladivostock, on the Pacific Ocean, some 9,000 miles from the fighting front, that they might embark for a journey around the world to appear as foes of Germany on the Western Front. Great Britain made plans to furnish the ships. But Germany interfered. It caused the Bolshevist government to rescind this order of safe conduct, and to interpose armed resistance to the efforts of the Czecho-Slovaks to reach the Pacific. It went further and induced the Bolshevist government to arm German and Austrian prisoners in Siberia to assist the disorganized Russian forces which were unable to stay the eastward mach of the Czecho-Slovak armies. That is how the Czecho-Slovak forces which we hear so much of today came to be in Siberia. Nothing in all history approaches the heroism of these little bands. Surrounded by enemies in overwhelming numbers they continued to fight their way eastward. City after city in Siberia fell into their hands. They fought the Russians and they fought the German and Austrian veterans whom the Russians armed. They won battles against overwhelming forces, and they are still hold- ing out, though thousands of miles from home and ringed by enemies. Their sole desire was to get back to the battle front, even by a journey around the world, that they may fight with the Allies and help to liberate their helpless relatives at home. These are the heroes that the Italian, French and English govern- ments have recognized as the army of an independent and allied nation. and that the United States and Japan are now moving to aid in Siberia. We cannot permit the Russians to hand tens of thousands of them over to the Central Powers for certain execution, any more than we can per- mit the Central Powers permanently to control Russia and Siberia. Thousands of these Czecho-Slovaks have died fighting for the Allied Thousands of others have died the death of traitors because they would not fight the Allies. Thousands more, held down by the cause. 18 Our Peril on the Eastern Front severest terrorism the world has ever known, are only waiting for an opportunity to desert and join the Allied armies. They have proved, beyond all question, their willingness to fight for their own freedom at every opportunity. After such heroic proof would it not be the basest ingratitude for the Allied nations to make a peace which did not free from bondage the Bohemians, the Slovaks, the Croats, the Serbs, and all other groups which are held against their will in Austria-Hungary? Our President has said that we are fighting to make the world safe for Democracy. There can be no democracy in Southeastern Europe as long as millions of Slavs are held in bondage, and there can be no lasting peace until these loyal friends of the Allied cause are erected into strong independent nations and the German plan of expansion to the eastward is definitely blocked. APPENDIX The Slav Peoples, Who They Are, Where They Live, and Their Historic Claims to Independent Existence THE CZECHO-SLOVAKS The word, "Czecho-Slovak," is a comparatively new one, brought into general use since the Russian revolution. It has been called to the attention of a wondering world by that little band of fighters who, since the East Front crumbled away in the great Russian collapse, have been the principal barrier to German penetration of the vast interior of that once mighty empire. Czech and Slovak are different forms of the same ancient Slav word. The Czechs and the Slovaks are the same people in blood and in lan- guage, but have been struggling along for centuries under different op- pressors. The Czechs inhabiting Bohemia and Moravia have been under Austrian rule for some four hundred years, and those in Silesia have long been subject to Germany. The Slovaks, on the contrary, are the inhabitants of the province of Slovakia, which has been long under Magyar domination in Hungary, and of a portion of the province of Galicia, which is likewise inhabited by Poles and Ruthenes. The Czechs number some six and a half millions, and the Slovaks something like two and a half millions. They composed the Slav tribes which, centuries ago, penetrated furthest into middle Europe. It was they who most strenuously resisted pressure from the East when the Huns-those amateurs whom Attila led-invaded Europe, and from the West when the Germans, who in this Twentieth Century of Christianity have given a new meaning to the word "Hun," first began to exercise the "Drang nach Osten" which today has set the world aflame. The result is that they were cut off from their Slav brothers to the South by the German wedge and the Hungarian wedge which came together on the border between Austria and Hungary. The Czecho-Slovaks remain a Slavic wedge extending far into the heart of Teutonic Mittel-Europa. Their sons are fighting in the armies of all the Allied nations, while the Czecho-Slovak army in Russia and Siberia has conducted itself with so much bravery and diplomatic wis- dom as well that it has been recognized as a belligerent by Britain, France, Italy and finally by the United States. Away back in the middle of the Fourteenth century Prague, the capital of Bohemia, became the seat of one of the earliest of the great universities of Middle Europe. Bohemia was famous for the learning and prosperity of its people, students going there from all Europe to absorb the culture that had ebbed so low elsewhere because of the feudal wars and the instability of governments. A good illustration of the commanding position Bohemia had obtained in educational matters is the fact that in 1638 Johann Amos Comenius, noted Bohemian relig- ious leader and secular educator, was called by the government of Swe- den to set up a scheme for the management of the schools of that coun- try, and a few years later was invited to join a commission that the English parliament then intended to appoint to reform the system of education in England. For two centuries Bohemia maintained its lead in the intellectual awakening which was overspreading Europe. In 1526 the Czechs and the Austrians, both menaced by the Turks, entered into an alliance on terms of equality, with the Hapsburgs_as joint rulers; but almost immediately the Hapsburgs began to treat Bo- hemia as a subject province. In 1618 the Czechs rose in revolt and were crushed in a disastrous defeat in 1620. The Austrian Germans uprooted the Czech aristocracy and filled their places with foreign adventurers and the Czech nation, as a nation, practically ceased to exist. Little was heard of the Czech nation for more than two hundred years. Its very memory almost was lost. But, in the middle of the Nineteenth Century there was a renaissance of national feeling. In spite of all persecutions and repressive measures the sterling Czech character again asserted itself, and Bohemia, as of old, once more be- came a seat of learning. The percentage of illiteracy in Bohemia is lower than anywhere else in Austria-Hungary, and even lower than in Germany itself. Industrially Bohemia became the most developed and prosperous part of Austria-Hungary, and remained so until the out- break of the world war. In spite of many provocations Bohemia remained essentially loyal to the Hapsburgs during the latter half of the Nineteenth century. It began to clamor for its rights, but would have been satisfied with equal- ity within the Austro-Hungarian Empire. For twenty years or more, however, there has been a growing feel- ing among the Czechs and Slovaks that they could never hope for justice. from their German and Hungarian oppressors, who, with the greatest severity, tried to crush out all revival of national feeling. More and more they were convinced that only absolute independence would ever bring them the justice to which they were entitled. Thus it was that the opening of the world war found the Czecho- Slovaks ripe for revolt. They were, of course, drafted into the Austro- Hungarian armies, like all other peoples within the dual monarchy, but they would not willingly fight their Slav brothers in Russia and Serbia. They seized every opportunity to surrender, but not from cowardice, for they immediately enlisted in the armies of the foes of the Central Pow- ers. Even when Russia collapsed the Czecho-Slovaks continued to fight with great bravery—a bravery which has at last won them recognition from the Allied powers-a recognition which virtually amounts to a declaration that the terms of peace which the nations of the Entente Alliance will impose will insist on the creation of an independent Czecho-Slovakia. The United States was the last of the great powers among the Entente Allies to grant this recognition, having acted on September 3, 1918. Its recognition of the Czecho-Slovak State, however, went further than that of any of the other powers in that it recognized the Czecho-Slovak Na- tional Council as the de facto government of this new state, and ac- corded to Thomas G. Masaryk, president of this council, who is making his headquarters in Washington, the right to represent the Czecho-Slo- vaks in a diplomatic way with the American government. The moral qualities and political sagacity of the Bohemians are tes- tified to by the fact that in 1871 the Bohemian Diet, alone among the representative deliberative bodies of the world, had the wisdom and courage to protest against the seizure of Alsace-Lorraine by Prussia. THE JUGO-SLAVS "Jugo" is the Slav word for "South." The Jugo-Slavs are the Slavs who were cut off from their more northerly brothers by the Huns and the Germans. They, at one time, inhabited practically all the Balkans and that portion of Southern Hungary and Austria around the Adriatic Sea, extending clear to the Alps at what is now the Italian frontier. It was these Southern Slavs who felt the full force of the Turkish invasion of Europe. For centuries those who resided in Bulgaria and Serbia languished under Turkish rule. In the Fourteenth and Fifteenth centuries there were what almost amounted to national migra- tions into the lands of Austria and Hungary. The migrating Slavs were welcomed by the Hapsburgs, and were promised lands and an autono- mous government time and again. They were permitted to form the border guard against the Turks and to do most of the hard fighting, but they never reaped their reward. They were used, time and again by the Hapsburgs, as pawns in their various controversies with the Magyars, and time after time, after they had loyally helped to keep the Magyars in subjection, they were handed over to the latter for persecution in a settlement to appease Magyar anger. In the Nineteenth Century, after the Serbs in Serbia had obtained their freedom from Turkey, their blood brothers under the Austro-Hun- garian yoke began to look to them for the freedom which they had never been able to obtain from the Hapsburgs. This resulted in more and more persecution from the Magyars of Hungary and the Germans of Austria until, at the time of the outbreak of the war, the Jugo-Slavs, likewise, were ripe for revolt, and, like the Czecho-Slovaks farther north, refused, wherever possible, to fight in the Austrian armies. At present the Jugo-Slavs some 12,000,000 in number-inhabit the Austrian provinces of Goritzia, along the Italian border, the neighbor- ing provinces of Carniola and Istria and part of Styria; Croatia and Slavonia in Hungary, Dalmatia and Bosnia and Herzegovina, as well as Serbia proper and Montenegro. Along the Adriatic Sea there is a little fringe of Italian population, especially in Trieste and a few other cities, but the great mass of population is Slavic. All of this territory, united under one Slav government- a greater Serbian kingdom of republic, as the case may be would form a state of sufficient size and population to check effectually the German dream of a German Mittel-Europa extending to the Bosporus. Just how far the plans for uniting all the Jugo-Slavs under one government have gone among themselves is shown by the fact that on July 20, 1917, there was issued from the Island of Corfu, where the Serbian government had taken up its seat, what is known as "The Declaration of Corfu." This provided for an establishment of "The Kingdom of the Serbs, Croats and Slovenes" as a constitutional, democratic parliamentary monarchy with the Karageorgevitch dynasty at its head. It made defi- nite provision for equality of the different religions and of the flags and coats of arms of the Serbs, Croats and Slovenes, and provided that "the territory of the Serbs, Croats and Slovenes will comprise all the terri- tory where our nation lives in compact masses without discontinuity, and where it could not be mutilated without injuring the vital inter- ests of the community. "" This leaves room for compromise along the borders where the popu lations are intermixed with Italians or people of other nationalities. The declaration was signed by Nikola Pashitch, president of the council and minister of foreign affairs of the Kingdom of Serbia, and Dr. Anto Trumbic, president of the Jugo-Slav committee. Professor Hinko Hinkovic, former member of the Croatian parlia- ment, and delegate to the Hungarian parliament, now an exile from his native land, is in the United States representing the Jugo-Slavs of Aus- tria-Hungary. He is strongly in favor of a union of all the Jugo-Slavs under one government. THE RUMANIANS Rumania took its name, its language and its culture from Ancient Rome, and its people are partly Latin in blood. In ancient times their country formed the outpost of the Roman Empire toward the East. Ru- mania, like the other Balkan countries, was long under the domination of the Turk. It was liberated part at a time with the result that some 3,000,000 Rumanians who were delivered from the Moslems before the remainder of their brethren, found themselves subject to the domination of the Hapsburgs and residing in the province of Transylvania and part of Bukowina. It was to liberate these Rumanians from the Magyar yoke that Ru- mania entered the war. The fatal peace, which Rumania was forced to make, following the collapse of Russia, is well known. Nominally free, Rumania itself is now under Teutonic domination, and the hope of the Rumanians of Hungary of joining their brethren rests solely upon an Allied victory in the West which shall force Austria-Hungary to give up these provinces to a really independent Rumania which will then be large and strong enough to keep the Teutons away from the Black Sea and to bar for them the route to the Orient. THE CASE OF POLAND The wrongs of Poland are too well known to need extended treat- ment here. It will be remembered how Poland was dismembered, three times, by Prussia, Russia and Austria. In each case the dismember- ment was purely land grabbing. The Poles once formed one of the most powerful nations of Europe. They were invaded on three sides by strong neighbors, and their lands and their independence taken away without any excuse whatever. In territory the largest part fell to the share of Russia. Prussia, however, followed out its policy of taking the most valuable part for strategic reasons, and seized the Baltic coast line. To Austria went what is now the Polish part of Galicia. The Poles long dreamed of and occasionally fought for the recon- struction of their independent nation, but at last it began to seem that this could never be achieved, and the Austrian Poles, at least, had become almost reconciled to continued existence under a foreign yoke. The world war, however, threw the whole of Russian Poland under German domination. Austria, likewise, is completely dominated by Germany. The sufferings of Poland under the German invasion made the whole world stand aghast. It is now seen that the German policy is deliberately to depopulate Poland, so that it will not have the trouble trying to Germanize it that it did with the portions of Poland that orig- inally fell to Prussia's share. With all Poland in Germany's grasp, directly or indirectly, and Allied victory certain on the West Front, nothing short of the creation of a completely independent Poland, strong enough to form an effectual barrier against Germany's expansion toward the East, should satisfy the Allied nations. NATIONALITY MAP of the SLAV BORDER Showing POLES Swi CZECHO-SLOVAKS RUMANIANS JUGO - SLAVS Present Austro-Hungarian Boundary++++++ کمرا Other Present National Boundaries Proposed Approximate National Boundaries O BREMEN OFRANKFORT W O STUTTGART ALAND MUNICH O HAMBURG M ☺ STATUTE MILES OPARMA VENICE D FLORENCE DRESDEN O AUSTRIA мое E پھر کئے ان سے کیا ہے O LEIPZIG A OBERLIN GERMAN AUSTRIANS POLA LO S MARINO OROME TYRRHENIAN SEA D 100 त LERMO OTRIESTE ANCONA a OPRAGUE مجھے OFIUMEE B VIENNA O WD at Xe Розмаста A ONAPLES PAOLA BRUNN 7 ZARA3 Y 7 Ž } A BRESLAU ㄴ ​G L OPOSEN MORE! THORN * RAGUSA SARAJEVO BRINDISI CATTARO ES SEA © BUDAPEST HUNGARY MAGYARS GULF OF BOTHNIA AVLONA E R WANZIG "MEMEL BE S CETINJE CRACOW KONIGSBERG PRUSSIANS WARSAW ALBANIA IONIAN SEA R סח AEV F HELSINGFORS 52 TARNOW GULF OF FINLAND BELGRADE A PRISTINA USKUPO SALONIKI INLAND 37 3 E R ୨ S OREVAL N ORIGA R LEMBERG BORSA ATHENS レ ​ل کے O VILNA © SOPHIA BU:L تھی PINSK SSA E U. SAS BUKHARESTO ♡ 27 MAGYARS & GERMANS DARDANEL EGEAN DDO SEA 3 PHILIPPOPOLIS ♡ th JASSY допу O MINSK GARIA } PETROGRAD L ♡♡ BURGAS ហ " 1 له اكم CRETE LADOGA LAKE O KIEV TTLE INCLUDING RUTHENES & UKRAINIANS Ü O MOHILEV ری A N r 62 577 OADRIANOPLE TURKEY CONSTANTINOPLE 30 LITTLE RUSSIANS, & BULGARIANS TURKS VARNA 4 2 SEA OF MARMORA (8 © SMYRNA 1 SMOLENSK in CONSTANTSA ODESSA BRIANSK L Ak ト ​BOSPHORUS RUSSIAN S A SEVASTOPOL SCUTARI $ A ONIKOLAIEV IN C K O JAROSLAV MOSCOW SEA ~. WORONETZ VORON OKHARKOV OEKATERINOSLAV **** SEA OF AZOV SEA URKEY ASIA А CYPRUS Clarence L. Speed has for many years been engaged in newspaper work in Chicago. He long served as city editor of the Chicago Rec- ord-Herald, and as financial edi- tor, city editor and editorial writ- er of the Chicago Evening Post. The nature of his work made necessary on his part a careful study of the Great War from the day of its inception. Copies may be obtained of the War Committee of the Union League Club of Chicago, at the following prices, delivery pre- paid: Single copies $ .05 One hundred copies............. 2.00 One thousand copies 15.00 7 Their Job and Ours By CLARENCE L SPEED Published and Distributed by JAMES MULLENBACH ALLEN B. POND GRAHAM TAYLOR CHICAGO 1918 Work or fight! That is the order that has gone out to the men of draft age throughout the country. It is the order that every really loyal man in America must give himself. It is the order that even the women must heed if the United States is to hope to overmatch that merciless autocracy which, through its iron discipline, has mobilized every fighter, every worker, every machine and every ounce of material for the sole purpose of preying upon its neighbors and making the world march to the goose step. Their job is to fight-those boys of ours, brothers and sons, who have gone across the seas. Day and night they will stick to their job. Through snow and rain, heat and sun, they will fight. They know no eight-hour day. They have no Sundays and no holidays. Always on the job, they brave the rain of shells and the clouds of poison gas. They will oppose the German war machine with their unprotected bodies, if necessary, that the outposts of freedom may be defended and, it may be, in the end extended. The job of those of us who remain at home is to furnish those boys of ours-our sons and brothers-with the material wherewith to fight. If we slack up on our job, they pay in lifeblood. If we fail to supply in time the shells to break up the Hun waves as they sweep across no-man's land, flesh of our flesh and blood of our blood must be sacrificed to stem the advance of the enemy. If we fail to supply the ships, the cannon, the machine guns, the rifles, the food and the clothing, through lack of energy and persistence in our job, we are murdering-yes, murdering-our sons and brothers across the sea. Wars of today are won not by armies, but by nations. Machinery and supplies are as important as fighting men. The armies in the field form but the first line. Unless they are properly equipped, they are powerless. They can stand and die-American armies will do that if necessary but their sacrifice will be vain unless they can match, shell for shell, gun for gun, the power of the enemy. America is the richest nation in the world. But wealth and latent resources do not count unless and until they are turned into the machinery and equipment necessary for use in war. The iron ore must be taken from the ground and forged into guns and shells and ship plates before it counts. Our forests of spruce must be felled and planed and cured, and made to take the air before our aviators will be of value. The sheep must be sheared, the fields plowed and the harvests reaped before our soldiers can be fed and clothed. All of this means work-unremitting toil on the part of all who remain behind. * "It is not money but labor which will win the war," says Harry Gordon Selfridge, American merchant in London, who has seen industrial England revolutionized since the war began. He has seen the factories which once made luxuries for the world turned into munition plants. He has seen members of labor unions speeding to the limit in mines and factories, producing every possible pound of coal and ore, guns and shells. He has seen delicately reared women, whose hands had never known toil, take places on farms and in factories, that their husbands and brothers might go to face the foe in Flanders. He knows that all the wealth in the world will go for naught unless it is transmuted into work. We all abhor the slacker who will not fight, and we reverence the hero who risks his life on the battlefield. There are slackers as well as heroes at home. The man who deliberately slows up the driving of rivets in the hulls of ships which are to beat the pirate submarine, is just as much of a slacker as the man who dodges the draft. The man who, despite aching muscles, and blind with fatigue, staggers to his bed after breaking a world's record in driving those same rivets, is just as worthy of a medal as the soldier who saves the life of his comrade under fire. The difference between slow and fast work in shipyard and factory may easily mean life or death for the sons of the very workers employed there. Slowing up on the job at home may cost the lifeblood, not of some unknown soldier, but of your own son or brother abroad. America must have ordnance, munitions and ships in unheard of quantities or America cannot win the war. It is our job to see that these things are provided promptly, amply and continuously. We may not be directly concerned in the manufacture. of munitions or the building of ships, but we can help. Every bit of useful work we do will release the labor of someone else for the things the Government directly needs. Every household servant employed needlessly is robbing the nation of a worker. The woman of fashion may release her chauffeur for army or factory, and use the street car. She may make her own beds, care for her own rooms, do her own cooking, and feel assured she is working for her country. Or she may maintain, as in times of peace, an army of help to minister to her own comfort, and know that she is sacrificing the lives of American boys-perhaps her own-on the altar of luxury. Even the boys and girls may help. In Germany they have been herded into the munition factories. It is to be hoped that America will not have to come to that, but American boys and girls should be shown that whatever useful work they do releases the labor of someone else. A Mowing the lawn and trimming the shrubbery may seem a thankless task to the boy until it is explained to him that this very work may release the gardener to work on a farm and help furnish food for our armies and our allies. The girl who helps her mother in the home helps release a maid for work more directly connected with the winning of the war. War gardens tended by boys and girls not only make available that much more food, but they help relieve the strain on our railroads. John Mitchell, former president of the United Mine Workers, thus phrases the duty of those at home: Every member of the industrial army here at home- every wage earner-has before him a great opportunity and a great duty. These are the things he can do: Matth "Do his part in speeding up the production of all the material of war so urgently needed. "Help save materials in order that those who have gone 'over there' may not want for anything." Organized labor has staked its all on the winning of the war by America. Every individual remaining at home should be equally determined to do everything in his power to see that production keeps pace with the needs of the now enormous American army in France. Lloyd-George, premier of England, has described the war as a race between the kaiser and Wilson. The kaiser is desperately trying to win the war before Wilson can bring to bear the great American resources in men and materials. Which side are you on, the kaiser's or Wilson's? If you are slowing down, marking time, doing as little work as possible, hampering the creation of the American war machine in the slightest degree, you might as well be an ally of the kaiser. If you are doing your best, working and not just play- ing at work, releasing the labor of others through self- denial, and doing it all cheerfully, you are on Wilson's side. 20 Copies of this pamphlet may be obtained by addressing ALLEN B. POND, 64 E. Van Buren Street, Chicago, Ill. Look Out for the German Peace Trap! By CLARENCE L SPEED Published and Distributed by War Committee, Union League Club of Chicago CHICAGO 1918 Look out for the German peace trap! The world war, right now, is at its most critical stage- more critical, even, than it was back in those July days when only a handful of American marines blocked the road to Paris. We know today and the Kaiser knows that Germany cannot win on the field of battle. General Foch's strategy has mastered that of Hindenburg and Ludendorff. Ger- man armies are in retreat all along the line. But the German armies are making their retreat most successfully. Nowhere have the Allies been able to cut off and capture any large bodies of men. German military power is still unbroken; still capable of making a long and bloody defense. There is real peril to us in this situation. It lies not so much in a danger that the leaders of France, England, Italy and the United States are going to permit themselves to be tricked in the peace settlement which must come sooner or later. These countries have sacrificed and suffered too much, and the men who are guiding their des- tinies, no doubt, are fully aware of the German wiles and determined on the demands which shall be enforced. But to us who remain at home, far from the fighting line, there is danger that we may be caught; like poor, deluded Russia, in the German peace trap. We may be lured into a false belief that peace is immediately at hand and that there is no use doing anything more. We may slow up in our efforts in shipyard, shop and mine. We may interrupt or delay the steady, ever-growing flow of munitions to France. The German armies and the German people are still under the control of the Kaiser and the same old military machine that started the war, made of the neutrality of Belgium a "scrap of paper," bombarded defenseless cities from the air and sank neutral ships without warning. The German Kaiser has proven himself a true Hohen- zollern; an apt disciple of Frederick the Great. To him, as to Frederick, there is no right but might; no honor but self-interest. "If there is anything to be gained by it we will be honest," said Frederick the Great. "If deception is neces- sary, let us be cheats. One takes what one can, and one is wrong only when obliged to give back." That is the Hohenzollern code of morality we now have to deal with. The Kaiser is now ready to admit he probably was wrong about Belgium because he is having to give it back. He may even admit his grandfather was wrong about Alsace-Lorraine, because, very likely, he will have to give that back, too. But if deception is necessary we have, judging from his own acts in the past as well as 200 years of Hohen- zollern policy, every right to assume that the Kaiser and his advisers will be cheats. It is plain, in fact, that the cheating already is going on on a large scale. The Kaiser knows very well that in America there is considerable prejudice against autocrats. He has been told quite plainly by President Wilson-so plainly, in fact, that he has at last begun to believe it, that this country can make no peace with a German government which is not responsible directly to the people. Therefore his first job of cheating is mapped out for him. If he can make the people of America believe that the people of Germany have been given a voice in their government he thinks they will tire of the war. America, he knows, has no ruined cities like those of France and Belgium to serve as constant reminders of German ruthlessness; no shattered tenements and factories. as has England; no hundreds of thousands of women who have been forced to submit to the brutalities of the invader; no gold star in every home. True, America has the Lusitania to remember; and the Tuscania; but those tragedies did not reach into every household in the land. The Kaiser counts on the horror aroused by these outrages having worn away. He banks on the natural desire of every American father and mother to have their sons back home at the earliest possible mo- ment. The mothers in Britain and France, hundreds of thousands of them, know that their sons are sleeping for- ever beneath the poppies of Flanders and in the shell-torn fields of France. No peace can bring them home. But the Kaiser counts on the desire of the mothers in America to see their boys speedily to aid him to make vain the sacrifices of the mothers of Britain and France. So the Kaiser calls in his press agents and his news mongers. "Tell the world that the government of Germany is heing turned over to the people,” he says. And the word goes out. Did you ever notice how. ever since the war began, and in fact for years before, the news coming from Germany has always been just best suited the purpose of the German rulers at any particular time? Well, the news coming out of Germany now is all about how the Kaiser is agreeing to let the Reichstag-the German parliament-have the sole right to declare war in the future; how bills are being passed making the German ministry responsible to the representatives of the people instead of to the emperor; how this or that reform is being accomplished in record time. From the German-controlled rumor factories in Hol- land and Denmark and Switzerland come stories of riots in German cities; of mobs shouting "Down with the Kaiser!" and of all sorts of happenings indicating popular uprisings. Meanwhile the same old Hohenzollern sits on the same old throne under the same old constitution. What the Kaiser gives, the Kaiser can take away. Nothing has happened to indicate that all these reforms. got up for the benefit of the liberty-loving American people, will not become mere "scraps of paper" just as soon as peace has been declared. "If deception is necessary, let us be cheats!" The Kaiser will have to give us something more than fair words and promises to convince us that he is not cheating now. Some little guaranties, for instance, like the disbanding of his armies, the surrender of his cannon, rifles and ammunition; the turning over of his battle fleet and his submarines to the Allies. : Then, when big Allied garrisons have been placed in Metz, Strassburg, Cologne, Essen and a few other such places to assure us that the Kaiser is not up to any old Hohenzollern tricks, we may be inclined to believe that he is somewhat in earnest. But until then it seems safe to assume that his Imperia! Majesty, the All Highest, is still on the job, trying to save his army, to get a breathing spell to manufacture more cannon and machine guns, to keep control over the vast territories he now has in his power on the Eastern front and to create dissensions among the Entente Allies which will permit him to get away without losing his throne and having to pay for all the misery and damage he has caused. America has been fully awakened and the Kaiser begins to see his doom. But if he can lull America to sleep again while his own millions are straining every nerve in the great Krupp works and building lines of de- fense on their own frontiers; it is more than probable that Germany may reappear next spring with fresh supplies of guns and ammunition and renewed determination to fight the war out to the finish. If we slow down and Germany does not, it will mean that hundreds of thousands more of American lives must be sacrificed before the Kaiser can be crushed. 20 Copies of this pamphlet may be obtained by addressing ALLEN B. POND, 64 E. Van Buren Street, Chicago, Ill. After you have read this pamphlet, please pass it on in order that the message it carries may reach the largest number of persons. THE WORLD'S NEXT STEP- A LEAGUE OF NATIONS 1 By Clarence L. Speed THE UNION LEAGUE CLUB OF CHICAGO 1919 After you have read this pamphlet please pass it on in order that the message it carries may reach the largest number of persons. Clarence L. Speed, a newspaperman of long experience as writer and editor, during the war period, at the instance of the War Committee of the Union League Club of Chicago, prepared sev- eral pamphlets and much material for the press, tending to bring about solid- arity in support of the Government. Among his pamphlets which were given wide circulation by the War Committee were Why We Fight, and Our Peril on the Eastern Front, both of which were used as reading texts in the Chicago High Schools. Additional copies may be obtained of the War Committee of The Union League Club of Chicago at the following prices, delivery prepaid: Single copy One hundred copies One thousand copies. 5 cents $ 2.00 $15.00 · THE WORLD'S NEXT STEP- A LEAGUE OF NATIONS At the Parting of the Ways WO great forces are at work in the world as the peace conference which is to play such an important part in directing the future course of civilization, is about to T convene. One is an intense nationalism, a spirit which has been gaining ground for the last three or four decades, and which the stress of war fanned into a bright flame. The other is internationalism, a spirit of world brother- hood, which likewise long has been making progress and has gained great impetus through the sorrow and misery entailed by the life and death struggle of nations. Both of these forces, properly guided, contain within themselves powerful influences for good. Either, misused, may work infinite harm. Nationalism, at its best, is nothing more nor less than patriotism. We, in America, feel it when we thrill to the strains of the Star Spangled Banner; when tears, not of sor- row, but of pride, fill our eyes as we see a regiment of sol- diers marching away to war; when we salute the flag. We cannot but admire the nationalism by which the Poles, the Bohemians or the Southern Slavs kept alive their language and traditions despite centuries of oppression, and the French of Alsace-Lorraine clung to the ideals of the land of their nativity. C Nationalism, at its worst, was an arrogant Germany feeling that the Germans alone were God's chosen people and that the remainder of the world was made but to serve, starting out to enforce its will on mankind by the sword. Oppressed Become Oppressors. Between these two extremes we see many variations of nationalism. We see peoples, barely freed from oppression themselves, starting out to oppress others in order to restore ancient national greatness founded on conquest and despot- ism; we see nations which have fought steadfastly against 4 THE WORLD'S NEXT STEP aggression voicing their claims to rule over others who should rule themselves, seeking thereby to extend their power and influence or to increase their national wealth. Internationalism, at its best, means a world actuated solely by fairness and justice, imbued with a desire to live and let live, to profit not on the misfortunes of others, but with others as they progress. At its worst internationalism is seized upon as a medium of expression by the sentimental pacifist, the oft misguided socialist, the bolshevist and the anarchist, and, through them, gives opportunity for the volunteer agent or paid spy of an unscrupulous power to work against organized society on which the state is founded. Nationalism, at its worst, means war, and ever more war, as long as it is unrestrained. At its best it means order, prosperity, and a justifiable pride in national achievement. Internationalism, at its worst, invites disorder, and chaos-the destruction of much of the progress which man has made since he first learned to act in common with his fellows. At its best it means guaranteed peace, guaranteed prosperity, guaranteed opportunity to progress without fear of attack from the arrogant or warlike. Opposing Interests May Clash. These forces-nationalism and internationalism-will shape the outline of the peace conference. Whether or not they will clash depends largely on how the nationalism manifests itself-on how far down the scale from its best it makes itself felt. As for internationalism, it already has become apparent that it is to appear at its best. Short-sighted pacifism and anarchy will have no voice in the conference. The inter- nationalistic spirit will be typified by the presence in person of President Wilson, who as the spokesman for the United States, stands for an ordered peace, a lasting peace, a guar- anteed peace. And the only way to get such a peace, he has declared repeatedly, is to form a League of Nations-a league not to tear down, but to upbuild and strengthen the free nations of the earth, leaving free play to patriotism, to progress and to justifiable national pride; a league just to the weakest, but strong enough to curb the ambitions of the most powerful. A LEAGUE OF NATIONS 5 In April, 1918, England, France and Italy were fighting for their very lives, but fighting a divided fight, each nation acting practically as it pleased. The hot breath of destruc- tion fanned their very faces. They could feel the point of the conquerer's sword pressing ever nearer and nearer the heart. In the crisis they put aside their pride and their jeal- ousies. When life itself is at stake little else matters. Com- pelled by the power of the aggressor they pooled all their resources under a single command, much as a League of Nations might do. England gave up the control of its army; Italy resigned its troops to another; Belgium, Serbia, Greece, even the United States, whose peril was less immediate if not less certain, all handed over the supreme command of their armies, which, heretofore, in spite of many disasters, had been acting as individual units, picking their own time to attack and making their own plans for defense, to Marshal Foch, the French commander in chief. < Published By HODDER AND STOUGHTON LONDON REPRINTED BY War Committee, Union League Club of Chicago * لي THE CZECHO-SLOVAKS WHEN as a young man Disraeli first came forward in politics a proud and noble lord inquired, somewhat superciliously: "What is he?" In answer Disraeli wrote a pamphlet in which he sketched the scheme of his life. But then he was a young man. Many people now reading the name of "Czecho-Slovaks" in the. Allies' answer to President Wilson ask: "What are they?" They are an · old nation which has engraved its history deep in the annals of Europe, and when the question is asked about them, the vision of the future can be substantiated by the facts of the past. • The first question that people ask on seeing that hyphenated name of a nation is whether they are one people or two. By many the question is asked in the best faith; by others with malevolent intent. As a matter of fact, the difference between these two branches of one single nation is mainly a difference in the enemy from whom they have suffered oppression and persecution in the past and are still suffering at the present day. Both speak the same language. The differences between Czech and Slovak are smaller than those existing between the German language as spoken, even by the educated classes, in Vienna, Munich, and Dresden. Slovak is, in fact, merely a more archaic form of Czech. But whilst the Czechs of Bohemia, Morávia, and Silesia, numbering six and a half millions, at the present day, have fought for the last thousand years against German aggression and suffered from German tyranny, the two and a half million Slovaks who inhabit north-eastern Hungary have had their chief and bitterest enemies in the Magyars. Now when Germans and Magyars are united for life and death in this struggle for dominance over Central Europe, what a joy it must be to them to suggest divisions between their victims! No doubt it would be of advantage to them to weaken that small and isolated Slav nation, which on all its fronts fights against these two dominant races, by dividing it into two separate bodies. Yet at no time was this attempt really. likely to succeed. As stated above, the difference between the two branches of the nation is not racial and not evën linguistic; it is historic. But then it is an historic difference which points toward union, and after this war will bind the two branches together ever so much more closely. It does not mean any vital division, Historic differences matter where the different traditions imply a difference in the direction of the will, not where they are due to the violence of outside enemies. At all the greatest moments 4 THE CZECHO-SLOVAKS of Czecho-Slovak history the two branches of the nation were one, or at least tried to become one; it was only when crushed by their enemies that they became divided. Even united, they would hardly be a match for the Germans and Magyars, and they are fully con- scious of it. They know that liberty is not possible for them or cannot prove durable without the liberty of other sister nations and, foremost, of the Jugo-Slavs and Poles. But where they themselves hold the line they have decided to hold it strongly and with united forces. Everywhere in the world where the Czechs and Slovaks. have created their own organizations the two groups have during this war acted together-in the United States, in South America, in Great Britain, France, and Russia, everywhere where on foreign soil they can work freely for the foundation of their future State. And the eminent Czech statesman who now leads the Czecho- Slovak movement for independence, Professor Masaryk, is himself by birth a Slovak. S I In certain ways the Czech nation, as we may call them for short, is unique among the Slavs. It is the only Slav nation that has survived in the very heart of Central Europe, and this is the very reason why it has become the special mark of German hatred and why the Germans have singled it out for the most relentless and untiring attacks. In the early Middle Ages the whole of what we might call the European Middle East was inhabited by Slavs. Their settlements extended from the lower Elbe and the Baltic Sea to the Adriatic and the Egean. In the ninth century the Magyars, a Mongol tribe closely allied to the Huns and Avars, drove in a wedge between the northern and southern Slav settlements by conquering the wide plains on the middle Danube and the Theiss. Meantime from the west the Germans started to penetrate the Slav territories. (The co-operation of the Teuton Huns and the Magyar Huns is older than is usually thought.) They advanced along the Baltic coast and up the rivers, extending their settlements during the following centuries to the head waters of the Oder, and along the Danube to the very confines of the Hungarian plain. German settlers and Germanized Slavs in Silesia became in the Middle Ages a barrier between the main bodies of Poland and of Bohemia. Germans and Magyars on the Danube separated the Czecho-Slovaks from the Jugo-Slavs. But in its mountainous quadrilateral the Czech nation has stood out against the German flood, a Slav bastion in the West, taking part and even taking the lead in the intellectual movements of Europe. THE CZECHO-SLOVAKS 5 In, 1349 Prague became the seat of one of the earliest universities of Central Europe, and within less than fifty years the Czechs, centring round the University of Prague, came forward as fore- runners and champions of freedom of thought in Europe. Huss and the Hussite movements were the first great contribution of the Czecho-Slovaks to the world's history. The movement, like every- thing in the Middle Ages, was on its surface predominantly relig- ious, yet religion was deeply tinged by nationality. The growing consciousness of nationalism in religion was one of the mainsprings of the Reformation, the Reformation being among other things the protest of the European nationalities attaining full consciousness of their own individuality, against the inherited universality of Rome. It was therefore by no means an accident that the first protest of national individualism and the first cry for national freedom of action and individual freedom of thought had come from Bohemia. Threatened by the Germans, who had behind them the authority of the Holy Roman Empire of German nationality, the Czechs arose in a protest against universality, both in Church and State. It is a fact to which sufficient attention has seldom been paid, that among the different articles of accusation raised against John Huss at the Council of Constance was that Huss had instigated among the Czechs national hatred of the Germans. To this accusation Huss answered: "I have affirmed and yet affirm that Bohemians should by right have the chief place in the offices of the Kingdom of Bohemia, even as they that are French-born in the Kingdom of France and the Germans in their own countries. whereby the Bohemian might have the faculty to rule his people, and the Germans bear rule over the Germans." These words, spoken by the martyr on his trial, have remained the programme of the Czecho-Slovak nation. In their peculiar position they, an isolated Slav body in the midst of their bitter enemies, came to recognize earlier than any other European nation some of the deepest truths of liberty. “L'homme est un apprenti, la douleur est son maître, et nul ne se connaît tant qu'il n'a pas souffert," says Alfred de Musset. But then "who increaseth knowledge increaseth sorrow." The Czechs became the forerunners of Europe and suffered the usual fate of the forerunner. The man who walks through the streets of the city before sunrise is called a thief by the awakened sleepers, and the forerunner is called a heretic, and the heretic must be burned. The Czechs paid to the full the penalty of being forerunners, and, 6 THE CZECHO-SLOVAKS having for many years sustained an unequal struggle against ortho- dox Europe, they suffered their first terrible defeat. 1526 is the date of the next disaster of Bohemia, It was a disaster in disguise. For purposes of defense against the growing Turkish menace the Bohemians entered an alliance with Austria and Hungary, reserving, however, for themselves full national rights. In a short time they came to know that the remedy was worse than the disease. The Hapsburgs, as is their habit, soon broke their faith and tried to enforce centralization in the State and counter-reformation in religion. The Czechs rose up in revolt in 1618 and lit the fire of the Thirty Years' War. The war which ushered in modern Europe seemed to sound the death-knell of the Czech nation, which in 1620 suffered the disastrous defeat on the White Mountain, With the utmost savagery the Austrian-Germans under Hapsburg and Jesuit leadership uprooted the Czech aristoc- racy and landed gentry, and filled their places with foreign adven- turers, who ever since have insulted the country in which they live. by considering themselves its peers and owners. The Czech nation lost all its educated classes and practically ceased to exist. There remained nothing except the soil and the peasants, as indestructible as the soil and as passive. 1 In the eighteenth century almost the memory of the Czech nation had been lost. They were treated as a kind of moribund aborigines. But this was the darkest hour before the dawn. The nation was awakening. At first the rebirth of the Bohemian nation was limited to a narrow circle of philologists and writers. It was treated by the Germans and the Austrian Government with patronizing condescen- sion. But soon it began to expand, spreading further and further until millions of men reawakened to their Slav consciousness. A nation, which towards the end of the eighteenth century had been practically extinct, became a power by the middle of the nineteenth century. With the stubbornness of peasants and the zeal of pioneers the apostles of the Czech nationality worked for the uplifting of their people. The fruit of their labors was a renaissance almost without parallel in the history of the world. Beginning with the middle of the nineteenth century, they have held, as to wealth and education, the first place among the nationalities of Austria- Hungary. In 1848 the Czecho-Slovak nation spoke out for the first time since 1618 on matters of international politics. In that fateful year the majority of the Czecho-Slovaks proved by no means hostile THE CZECHO-SLOVAKS 7 to the Hapsburgs. As in every part of Europe, there was, of course, also in Bohemia a revolutionary party. But earlier than anyone else in Europe the Czechs and Jugo-Slavs recognized the double-faced character of German-Magyar "liberalisms"-of liberal- isms which claim rights for "master nations" (Herrenvölker) and forge chains for weaker nationalities. In opposition to the German and Magyar Imperialisms, the Czecho-Slovaks turned to the Haps- burgs, hoping that, as against the disruptive tendencies of the Pan- Germans and the Magyar separatists, the Hapsburgs would in their own interests rely on the support of the weaker Slav nations, which asked for nothing except justice and the possibility of a peaceful, un- hampered national development. The Czechs hoped that the Haps- burgs would make themselves leaders in a rejuvenated Austria. Some writers on international politics, who now advise the Czechs to seek their happiness in a free and just Hapsburg monarchy, are surely indulging in the pursuit of an ideal for which the lessons of history provide no support. Why, the idea of that happy new Austria had been for generations the dream of the Czech leaders. Palacky proclaimed it in 1848. Dr. Kramarzh, now a martyr for the Czech cause, was still upholding it half a century later. The Czech nation, which was every day gaining in strength and importance, did not aim at the breaking up of the Hapsburg Monarchy. If ever a nation has given a fair chance to a Government, the Czechs have given it to the Government of Vienna. But what were the results? The weaker branch of the Czecho-Slovak nation was in 1867 handed over to the mercies of the Magyars, however much the entire nation protested against it. In Austria itself the predominance of the Germans was established. The promise given by the Emperor Francis Joseph I. to the Czechs in 1870 that he would crown him- self King of Bohemia-as he was crowned King of Hungary in 1867 —and thereby recognize the historic rights of the Czech nation, was never fulfilled, and the modest rights conceded to the Czechs in a centralized Austria were never safe against new encroachments. It is a fact which no one acquainted with Austrian history would dare to deny, that the Germans in their narrow nationalist interest have wrecked constitutional life in Austria. They have deliberately crippled the Austrian Parliament, because in that Parliament they were in a minority. Without Parliament they can more con- veniently control the State through the German clique at the Viennese Court and the prevalently German bureaucracy. Beginning with 1897, the year when the Germans by their obstruction in 8 THE CZECHO-SLOVAKS Parliament overthrew a Cabinet which enjoyed the full confidence of a vast majority in the House, there was no real safety for the Czechs or Jugo-Slavs in Austria. With every year the chances of a revival of constitutional government were diminishing, and with the recrudescence of bureaucratic and military autocracy German ambitions and German encroachments were growing in strength and weight. Matters were still worse with regard to international politics. No one ever counted therein but the arisocratic German clique of Vienna and the Magyars. In 1866 Prussia appealed to the Czechs, promising them "independence," but the Czechs knew only too well the nature of Prussia and its Danaan gifts. They did not swallow the bait, and after the defeat of the Hapsburgs they once more. declared to the old dynasty that they were prepared to stand by them in the hour of need and fight under their lead against Prussia. With an incomparable blindness the Hapsburgs imagined that they could best strengthen the State for the new struggle by handing over the power in Austria to the Germans and in Hungary to the Magyars. Francis Joseph was soon to learn the consequences of his action. In 1870, when all the Austrian Slavs were eager to take the field on the side of France, the veto of the two dominant races -the Germans and Magyars-prevented intervention. Why should they fight their best friends, the Prussians, the supporters of government based on violence? In 1879 the Dual System of German-Magyar rule over all the other races of the Monarchy (except the Poles) found its final logical expression in an alliance between Austria-Hungary and the new German Empire. The seeds were sown of the present war. Again and again the Czechs, seeing the spectre of the approaching catastrophe, implored the Hapsburgs not to compromise the future of their monarchy by aggressive, adventurous plots. To create a counter-balance to Prussian ascendancy the Czechs worked for a rapprochement be- tween Austria on the one hand and Russia and France on the other; they were untiring in their endeavors to secure the peace of Europe. They knew what their position was bound to be as citizens of an Austria-Hungary, situated in the very heart of Central Europe, if a war broke out between their German enemies and their Slav and West European friends. It was a thing which no Czech. could face without a shudder. When the series of Austro-Magyar intrigues against Serbia had begun, the Czechs tried to save the honor of the Hapsburg Monarchy by revealing the infamy of THE CZECHO-SLOVAKS 9 some of its servants. It was Professor Masaryk, the man now in the forefront of the Czech movement for liberation, who in 1909 took the lead in exposing the notorious Friedjung forgeries—in case of war these forgeries were to have served as Austria's excuse for attacking Serbia. Professor Masaryk showed up and branded their main author, Count Forgach, as a common agent provocateur, and Count Forgach never dared to defend himself by bringing an action against his accuser. Yet the same Count Forgach soon afterwards became Under-Secretary of the Austrian Foreign Office, and was one of those mainly responsible for the drafting of the ultimatum to Serbia in July, 1914! No one responsible for the policy of the Central Powers in that crisis can plead ignorance as to the character and policy of that man. The Czechs had been prepared to work for a better Austria and to continue in it, even though promises given to them were regularly disregarded. Yet though wishing for the existence of Austria, if Austria was to be a real home for its nationalities, they were always equally determined to destroy it, should it choose to become a jail, with the Germans and Magyars for its jailers. Now Austria has become worse than a jail to the Czechs, worse even than a slave-driver. It has driven them not into slavery, but into fratricide. When Czech regiments were first marched against Russia and Serbia, all past bonds between Austria and the Czech nation were broken forever. There are words on which one does not go back, and there are facts which can never be undone. Not even centuries can erase the memories of the war into which the Czecho-Slovaks have been driven, contrary to their will, under the command of their bitterest enemies-the Germans and the Magyars. Never again in history are the Czechs to find themselves in the position of mute victims driven into a death dishonorable for men, into a death of slaves fighting for the maintenance of slavery. The Hapsburgs. have crossed the Rubicon on their way to Berlin; there can be no comity in the future between the Czechs and the Haps- burgs. The outbreak of the war placed the Czecho-Slovak nation in a tragic position. They were now to fight for a cause which they knew to be that of their enemies and oppressors, and against those who upheld the principle of nationality, of the rights of small nations, and of equality between nations, i. e., the only principles by which the Czech nation can attain the position due to it in the world. And in the case of this people, it is more than a vague 10 THE CZECHO-SLOVAKS generalization to say that the Czechs were conscious of this fact. We are speaking here of a nation which practically has no illiterates amongst its members, and in which the average level of education and well-being is higher than that of Germany, taken as a whole, and equal to those of Holland or the Scandinavian countries. Every Czech is conscious of the interests and ideals of his nationality. No. wonder, then, that from the day the war was declared the Czechs were put by the Austrian Government under "special observation" and watched and muzzled as no other nationality in Austria- Hungary has been. "Naturally so," someone might say in defense. of the Austrian authorities, "because the Czechs are known to be hostile to the Austrian State.". But, then, why do all the Austrian official and semi-official scribblers pour out the never-ending flow of cant about "the glorious unity and cohesion" of which the Haps- burg Monarchy has given proof in the war? How do they dare to maintain that the Czechs "do not want to be liberated"? The war is for the Hapsburg Monarchy not merely external, it is also a war on its submerged nationalities. The Czechs do not complain. War it is between them and the Germans and Magyars. But then the grip of the octopus should not be called an accolade of love. If attachment to Austria is the dominant feeling among the Czechs, why were not those whom the Czech nation had chosen for its spokesmen allowed to voice its feelings? Of all the belligerent countries Austria is the only one which has failed to convoke its Parliament, and it was repeatedly admitted that the reason why it was not possible to convoke Parliament was the fear lest the Czechs should speak out. Their true feelings were only too well known to the Austrian Government; one after another the Czech leaders were sent to prison or driven into exile. Dr. Kramarzh, the leader of the Young Czechs-the historic Czech party in the Austrian Parliament-was arrested on a charge of high treason in May, 1915, but the grounds for the accusation were withheld from the public. In June, 1916, Dr. Kramarzh was con- demned to death,* and still the Austrian authorities remained silent as to the nature of his guilt. No wonder; when at last, on January 4th, 1917, an explanation was attempted of the verdict, it was found to contain not a single fact, real or alleged, which any tribunal outside "Mittel-Europa" would have accepted as sufficient to condemn a man for high treason. He was condemned on general - J *The sentence of death was subsequently commuted to fifteen years' im- prisonment. THE CZECHO-SLOVAKS 11 grounds. The blow was struck at him because he is one of the most prominent leaders of the Czech nation. His case was to act as a deterrent for minor men. It was an act of conscious and calculated terrorism, not of justice. Where a man of the prominence of Dr. Kramarzh-there was a time when he was considered a likely candidate for the post of Austro-Hungarian Foreign Minister-where a man of such stand- ing is condemned to death without a single act of high-treason being proved against him, the fate which awaits or befalls other people can easily be imagined. There is not a single prominent Bohemian national leader left free to speak in Austria; they are all either in prison, like Dr. Kramarzh, or in exile, like Professor Masaryk, or have to wear the uniform of the Austrian army and remain under the iron military discipline which leaves no room for any expression of feeling or opinion. Is that because they love Austria too dearly? If Austria has stood so "magnificently" the test of the war, if all her nationalities really feel such love for their rulers, do not the rulers cherish every means by which these sentiments can receive expression, and shower favors and allow all freedom to the press? How, in particular, has the Czech press fared during the war? All its main organs have been suppressed, or muzzled to an extent which practically leaves them incapable of voicing in any way the true feeling of the Czech people. One need not go to Czech sources for accounts of these persecutions. It is enough to look through the files of the Viennese papers and see those short notices, each containing only a few lines, and announcing in dry terms that certain papers have ceased to appear or have been forbidden by the police. Here are a few samples :— Arbeiter-Zeitung, September 24th, 1915: "The political provin- cial papers, Straz Venkova, at Chlumin, near Prague, and the Ostravsky Dennik, in Mährisch-Ostrau, have been forbidden publi- cation." Zeit, September 28th, 1915: "Before the outbreak of the war sixteen Czech political newspapers used to appear in southern Bohemia. Of these up to now eight have voluntarily stopped pub- lication or have been ordered to do so. Of those suppressed by the authorities the Cesky Jih appeared at Tabor, Straz na Sumave at Strakonitz, and three at Budweiss: Nashe Slovo, the Social-Demo- cratic Jihocesky Delnik, and the National-Socialist Straz Lidu.” Or, again, we may look at the Arbeiter-Zeitung of November 26th, 1915, and find the following short and eloquent note, which 12 THE CZECHO-SLOVAKS shows with what edifying impartiality the Austrian police performs its work: "The organ of the Czech Jews, Rosvoj, at Prague, and the paper of the Roman Catholic women, Jitrenka, at Königgrätz, have been suppressed for the duration of the war." And no one should think that these few notices quoted above are specially picked or chosen. One can come across them any day in Austrian papers, and with them one usually finds notices of punishments imposed on editors and writers. And yet, in spite of all that oppression, the Czechs speak out again and again. In highly scientific papers, in between dry technical articles over which the censor must have fallen asleep or which he passed unread, thinking them too tedious to concern anybody, one can find occasionally a short line bearing the appearance of a learned reference or footnote, but saying: "Czechs, remember your fateful hour has come," or containing some similar warning. And one such cry, when it reaches the ears of those to whom it is addressed in the midst of that mournful and yet eloquent silence, which now reigns in Bohemia, says more than long and enthusiastic articles inspired by official hints and threats. Before the war the Czechs had a highly-developed system of national friendly societies, of clubs, literary circles, athletic associa- tions, etc. Again, what has Austria done with them in the view of that "magnificent zeal" which all her nationalities are alleged to dis- play in the cause of "Mittel-Europa"? Practically all the Czech associations have been suppressed. The first to go were, of course, the Sokols, an athletic organization with Pan-Slav tendencies. Then followed others, till finally not even the most modest professional associations were allowed to survive. Here is one of many examples. The Viennese Neue Freie Presse writes, under date of December 22nd, 1916: "As stated in the official paper, the Wiener Zeitung, the Minister of the Interior, on the basis of the Law of Associa- tions, has ordered the dissolution of the Union of Bohemian Rail- way Employees with its seat at Prague." Special attention, was, of course, paid by the Hapsburg Govern- ment and the almighty Austrian police to the Czech schools and school libraries. Did they not deserve some praise if they have really produced such enthusiastic "Austrian citizens" to whom na- tionality was a matter of indifference, and who merely pined to die for the cause of their enemies, the Germans? Amazing to state, no praise was given, and with a curious lack of consistency this time quite a different tale was told. It was stated that the Czech schools had not hitherto fulfilled their purpose in inculcating in THE CZECHO-SLOVAKS 13 Czech children the feeling of absolute loyalty and devotion to their German masters, and measures were therefore taken to remedy this evil. For some time the teaching in the Czech schools had to be done without text-books, because it was found that all the text-books published before the war in Bohemia, though this had been done. under the august auspices of the Austrian Ministry of Education, contained too much about the Czech nation, which to the mind of Austrian-German officials is a mere subdivision of the "Austrian" nationality. At last, in January, 1917, the Austrian authorities pro- duced their new concoction, this time through the intermediary of the Deutsche Schulbücherverlag in Vienna. It is interesting to read its description in Czech papers. Of course, not a word could be said of criticism, but its "special features" were emphasized with a clearness which left no room for doubt. The first pages of the book are devoted to the Austrian national hymn and are adorned with the picture of the Imperial Palace at Schönbrunn. Then fol- low the events of the war, displayed, of course, in a proper light—. Austria appears always enthusiastically united in feeling and invari- ably victorious in battle. The series culminates in an effusion on the duties of a Czech with regard to Austria, the Imperial House, and the other Austrian nationalities. Most interesting is the his- torical part. Nothing can be found in it about true Bohemian na- tional history. It is not John Huss, or the famous fighter Zižka, not George of Podiebrad, or any other Bohemian leader whose life. is told to the Czech children, but stories of Hapsburgs, who were not even rulers of Bohemia, and of Tyrolese fanatics who died faithful like dogs to the Hapsburgs, though betrayed and aban- doned by them; in short, the whole gallery of feeble-minded princes and half-witted peasants who compose Austria's special claim to glory appears in the text-book. Having analyzed this book, so full of delightful and instructive reading for children, the Czech papers call special attention to the fact that the name of its editor is with- held from the public. Never had that happened in the past in the case of school books. Is he some German who prefers not to appear in public as the teacher of Czech history, or some Czech renegade who has preserved sufficient shame not to wish to be known as author of that concoction? The school libraries were most carefully weeded out. The novels of Jirasek were removed, because there is too much in them about the Hussites. Similarly were removed the works of the greatest living Czech poet, Machar (who himself was imprisoned-on ac- 14 THE CZECHO-SLOVAKS count of a poem published ten years ago with the permission of the Austrian Censor, and now republished in the U. S. A. without the knowledge of the author). As the crowning manifestation of the Austrian official spirit the fact may be mentioned that in Sep- tember, 1916, the historic novels of the Polish writer, Sienkiewicz, and the famous novel, "Cuore," of the Italian writer, De Amicis, were removed from the Czech school libraries in Bohemia. Evi- dently even the stories of national struggles for liberty fought by other nations are considered dangerous. It is naturally dangerous to speak of past national struggles for liberty to people who are now engaged in such a struggle. Of course, the women, children, and old men in Bohemia who have now to suffer from police terrorism, which is as cruel as it is petty and inquisitorial-these cannot conduct the struggle. But on every front to which Czech soldiers are sent the Austrian generals fully understand what it means when a nation desires to break down the walls of its jail. From the very first day of the war it was clear that the Czech soldiers would not fight for the cause of the Germans and the Magyars against their friends the nations of the Entente. They were therefore put at once under careful "observation” at the front as well as behind the lines. The watch increased in severity with every month of the war. "This is not a war secret," said Prince Ludwig Windischgrätz in the Hungarian Parliament on August 28th, 1916, “and the whole world sees it, how the service battalions are composed—that in every Czech service battalion at least 40 per cent of Magyar and German troops are included." Yet all these measures could not prevent the Czech soldiers from carrying out their purpose. Though carefully watched by their German and Magyar hangmen they continued individually and in groups, and even in regiments, to pass over to the side, which, in the Austrian terminology, is that of the enemy, but to the Czechs is that of their liberators. In September, 1914, the 8th Regiment of the Czech Landwehr, when ordered to march to the Russian front, re- fused obedience, and attacked its German officers. Thereupon the 75th German Regiment was sent against it, and the Czechs had to pay the penalty of their revolt. The 36th Regiment, recruited from the district of Mlada Boleslav, also mutinied whilst still in Bo- hemia, and was decimated by the Germans and Magyars. More effective was, however, the action of the Czechs at the front. The fact that several Czech regiments crossed over to the Serbian side. contributed much to the ignominious Austrian defeat in Serbia in the THE CZECHO-SLOVAKS 15 closing months of 1914. Thus, e.g., the 102nd Regiment, recruited from Benešov, crossed over in a body to the Serbians and entered Nish with its band playing the Serbian national hymn. Similar incidents occurred also at the Russian front. Some regiments, as, for instance, the 88th, from Brno, were found out when attempting to surrender to their friends, and were massacred by the German and Magyar troops; others, however, like the 35th Regiment from the town of Pilsen and the 28th Regiment from Prague succeeded. in crossing over to the Russian side. Similarly, of the 11th Regi- ment, from Pisek, all but two companies joined the Russians. The Czechs who surrendered to the Serbs, Russians, or Italians were soon found fighting again-but this time on the side of their friends. The services fendered by them, especially to Serbia dur- ing the two Austrian invasions, and to Russia during the Galician campaign of 1914 and during the summer campaign of 1916, can hardly be exaggerated. With their thorough knowledge of the Austrian army, and in view of the very high level of their educa- tion, they form everywhere a most valuable element in the intelli- gence service. For obvious reasons the full story of their deeds cannot be told as yet, especially no cases of individual bravery or achievements can be mentioned. But the mere fact of men going through all the dangers of desertion at the front and then entering the ranks of the "enemy" army, with the knowledge that, if taken prisoners, they would be shot out of hand, is a sufficient test of the ardour with which the Czechs desire their liberation and fight for it. It is not the case of soi-disant aristocrats knocking about the capitals of Europe and America with big phrases on`their lips about the greatness of their nation and the claims which it has. on the world. Less has been heard about the Czechs during the war than their cause deserves. For big talking does not suit their nature. It was not by political intrigues or by boundless self-ad- vertising, but by war-work performed in every allied country in which they found themselves, and by true heroism shown on the front to which they were led, that the Czechs have been working for the future of their nation. J Of the Czechs who at the outbreak of the war found themselves on neutral ground or in the States of the Entente, or who were able to escape from Austria afterwards, almost every man of military age is doing his duty. There are Czechs fighting in the French army-they have specially distinguished themselves on the Somme in the Foreign Legion. There are Czechs serving in the British 16 THE CZECHO-SLOVAKS army-some of them have been put into the artillery, which in itself is the greatest sign of confidence that can be shown to men who nominally are "alien enemies." All over the world the Czechs have, by all means at their disposal, fought and counteracted the plots and rancours of their Magyar and German enemies. If at the end of this war the Czecho-Slovak nation attains its liberty and an open road to a new greatness and glory, no one will be able to say that this comes to them as a gift and that they had not done enough to deserve it. They are working and fighting in the best spirit of a modern democracy, without narrow calculation of sacri- fice and immediate reward. This must be said about the Czechs, that they take always and everywhere the widest views of the inter- ests of the Entente, and, living in the very center of "Mittel- Europa," in the very depths of the German-Magyar jail, they do not mind on which front they fight and in conjunction with which Power. They know that the battle-front is one and that victory and defeat will be common to all. Nor does any other nation bear a more signal testimony to the belief in the power and final victory of the Entente. Of all the nations to be liberated the Czechs are the most distant, the most deeply engulfed in "Mittel-Europa," and yet they do not doubt that for them also the hour of liberation will come in this war. They firmly believe, as the Austrian officials put it in their indictment of Dr. Kramarzh, that theirs will be a glorious lot when the nation "rises out of darkness and humiliation to new life," and that "after the catastrophe to which this war must lead, the Czech nation will be able to develop its strength, unity and or- ganization." us. N Į ↓ The Bases of Durable Peace As Voiced By President Wilson I. America's Purpose: International Justice and World Peace at New York, 27 September, 1918 II. Program for World Peace; the 14 Points of 8 Janu- ary, 1918 III. Reply to von Hertling and Czernin: the 4 Cardinal Principles of 11 February, 1918 IV. Force to the Utmost; Reply to the Prussian Chal- lenge-6 April, 1918 V. The 4 War Aims; at Mt. Vernon, 4 July, 1918 THE UNION LEAGUE CLUB OF CHICAGO $ 1918 Resolutions Anent President Wilson's New York Address of 27 September, 1918, Adopted by the War Committee of the Union League Club of Chicago, October 3, 1918. R EALIZING the scope and implications of President Wilson's statement of the war policies of the United States in his New York address of 27 September, 1918, and that no such sweeping and searching declaration of purpose in regard to the relations of nations to one another has ever before been made by the responsible head of a powerful nation in a time of world crisis and readjustment; Recalling that many of the wars that have devastated Europe in the past have had their roots in unjust conditions created or acquiesced in by treaties of peace that ignored the rights of peoples; Bearing in mind that this shocking war, that has finally involved the United States, has its causes in deep-seated injustice imbedded in existing European conditions and in the purpose of the Central Powers to perpetrate yet further injustice at the expense of neigh- toring nations assumed to be helpless; Seeing clearly that war can no longer be easily localized in a world of closely knit international relations and that, only through the establishment of substantial justice between the peoples of the world, can we in the United States hope, henceforth, to find peace for ourselves; And believing that the principles, so nobly conceived and so clearly set forth by the President, will, if put into effect by our Allies and ourselves, go far toward lifting from the world the nightmare of war and the social and economic burdens that it entails and will set free men's hands and minds and spirits for the nobler tasks of peace; ↓ We, the War Committee of the Union League Club of Chicago, hereby record our whole-hearted concurrence in the President's declaration of principles, and we pledge our best endeavors to the end that, so far as lies in the will and act of the United States, peace, when attained, shall not once more involve the bartering away of the rights of peoples in the interest of dynasties or of powerful states or groups of states, but shall square with the President's solemn declaration. America's Purpose The Establishment of Justice Between the Nations- New York Address of 27 September, 1918 M Y Fellow-Citizens: I am not here to promote the loan. That will be done-ably and enthusiastically done— by the hundreds of thousands of loyal and tireless men and women who have undertaken to present it to you and to our fellow-citizens throughout the country; and I have not the least doubt of their complete success; for I know their spirit and the spirit of the country. My confi- dence is confirmed, too, by the thoughtful and experienced co-operation of the bankers here and everywhere, who are lending their invaluable aid and guidance. I have come, rather, to seek an opportunity to present to you some thoughts which I trust will serve to give you, in perhaps fuller measure than before, a vivid sense of the great issues involved, in order that you may appreciate and accept with added enthusiasm the grave significance of the duty of supporting the government by your men and your means to the utmost point of sacrifice and self-denial. No man or woman who has really taken in what this war means can hesitate to give to the very limit of what they have; and it is my mission here tonight to try to make it clear once more what the war really means. You will need no other stimulation or reminder of your duty. At every turn of the war we gain a fresh consciousness of what we mean to accomplish by it. When our hope and expectation are most exicted we think more definitely than before of the issues that hang upon it and of the purposes. which must be realized by means of it. For it has positive and well-defined purposes which we did not determine and which we cannot alter. No statesman or assembly created them; no statesman or assembly can alter them. They have arisen out of the very nature and circumstances of the war. The most that statesmen or assemblies can do is to carry them out or be false to them. They were perhaps not clear at the outset; but they are clear now. The war has lasted. more than four years and the whole world has been drawn into it. Mankind's Common Will Rules. The common will of mankind has been substituted for the particular purpose of individual states. Individual statesmen may have started the conflict, but neither they nor their opponents can stop it as they please. It has become a peoples' war, and peoples of all sorts and races, of every degree of power and variety of fortune, are involved in its sweeping processes of change and settlement. We came into it when its character had become fully defined and it was plain that no nation could stand apart or be indifferent to its outcome. Its challenge drove to the heart of every- thing we cared for and lived for. The voice of the war had become clear and gripped our hearts. Our brothers from many lands, as well as our own murdered dead under the sea, were calling to us, and we responded, fiercely and of course. The air was clear about us. We saw things in their full, convincing proportions as they were; and we have seen them with steady eyes and unchanging comprehension ever since. We accepted the issues of the war as facts, not as any group of men either here or elsewhere had defined them, and we can accept no outcome which does not squarely meet and settle them. Five Issues of the War. Those issues are these: Shall the military power of any nation or group of nations be suffered to determine the fortunes of peoples over whom they have no right to rule ex- cept the right of force? Shall strong nations be free to wrong weak nations and make them subject to their purpose and interest? Shall peoples be ruled and dominated, even in their own internal affairs, by arbitrary and irre- sponsible foce or by their own will and choice? Shall there be a common standard of right and privilege for all peoples and nations or shall the strong do as they will and the weak suffer without redress? Shall the assertion of right be haphazard and by casual alliance or shall there be a common con- cert to oblige the observance of common rights? No man, no group of men, chose these to be the issues of the struggle. They are the issues of it; and they must be settled-by no arrangement or compromise or ad- justment of interests, but definitely and once for all and with a full and unequivocal acceptance of the principle that the interest of the weakest is as sacred as the interest of the strongest. What Permanent Peace Means. This is what we mean when we speak of a permanent peace, if we speak sincerely, intelligently, and with a real knowledge and comprehension of the matter we deal with. We are all agreed that there can be no peace obtained by any kind of bargain or compromise with the governments of the Central Empires, because we have dealt with them already and have seen them deal with other governments that were parties to this struggle, at Brest-Litovsk and Bucharest. They have convinced us that they are without honor and do not intend justice. They observe no cove- nants, accept no principle but force and their own interest. We cannot "come to terms" with them. They have made it impossible. The German people must by this time be fully aware that we cannot accept the word of those who forced this war upon us. We do not think the same thoughts or speak the same language of agreement. It is of capital importance that we should also be ex- plicitly agreed that no peace shall be obtained by any kind of compromise or abatement of the principles we have avowed as the principles for which we are fighting. There should exist no doubt about that. I am, therefore, going to take the liberty of speaking with the utmost frankness about the practical implications that are involved in it. If it be indeed and in truth the common object of the governments associated against Germany and of the nations whom they govern, as I believe it to be, to achieve by the coming settlements a secure and lasting peace, it will be necessary that all who sit down at the peace table shall come ready and willing to pay the price, the only price, that will 5 procure it; and ready and willing, also, to create in some virile fashion the only instrumentality by which it can be made certain that the agreements of the peace will be honored and fulfilled. Impartial Justice Must Be Done. That price is impartial justice in every item of the set- tlement, no matter whose interest is crossed; and not only impartial justice, but also the satisfaction of the several peoples whose fortunes are dealt with. That indispensable instrumentality is a League of Nations formed under cove- nants that will be efficacious. Without such an instru- mentality, by which the peace of the world can be guaran- teed, peace will rest in part upón the word of outlaws, and only upon that word. For Germany will have to redeem her character, not by what happens at the peace table, but by what follows. And, as I see it, the constitution of that League of Nations and the clear definition of its objects must be a part, is in a sense the most essential part, of the peace settlement itself. It cannot be formed now. If formed now, it would be merely a new alliance confined to the nations associated against a common enemy. It is not likely that it could be formed after the settlement. It is necessary to guarantee the peace; and the peace cannot be guaranteed as an after- thought. The reason, to speak in plain terms again, why it must be guaranteed is that there will be parties to the peace whose promises have proved untrustworthy, and means must be found in connection with the peace settlement itself to remove that source of insecurity. It would be folly to leave the guarantee to the subsequent voluntary action of the governments we have seen destroy Russia and deceive Rumania. - Five Particulars of Settlement. But these general terms do not disclose the whole mat- ter. Some details are needed to make them sound less like a thesis and more like a practical program. These, then, are some of the particulars, and I state them with the greater confidence because I can state them authoritatively as repre- senting this government's interpretation of its own duty with regard to peace: First, the impartial justice meted out must in- volve no discrimination between those to whom we wish to be just and those to whom we do not wish to be just. It must be a justice that plays no favorites and knows no standard but the equal rights of the several peoples concerned; Second, no special or separate interest of any single nation or any group of nations can be made the basis of any part of the settlement which is not consistent with the common interest of all; Third, there can be no leagues or alliances or special covenants and understandings within the general and common family of the League of Nations; Fourth, and more specifically, there can be no special, selfish economic combinations within the league and no employment of any form of economic boycott or exclusion except as the power of eco- nomic penalty by exclusion from the markets of the world may be vested in the League of Nations itself as a means of discipline and control; Fifth, all international agreements and treaties of every kind must be made known in their en- tirety to the rest of the world. Must Exclude Special Alliances. Special alliances and economic rivalries and hostilities have been the prolific source in the modern world of the plans and passions that produce war. It would be an in- sincere as well as an insecure peace that did not exclude them in definite and binding terms. The confidence with which I venture to speak for our people in these matters does not spring from our traditions merely and the well-known principles of international action which we have always professed and followed. In the same sentence in which I say that the United States will enter into no special arrangements or understandings with par- ticular nations, let me say also that the United States is pre- pared to assume its full share of responsibility for the main- tenance of the common covenants and understandings upon which peace must henceforth rest. We still read Washing- ton's immortal warning against "entangling alliances" with 7 ¿ full comprehension and an answering purpose. But only special and limited alliances entangle; and we recognize and accept the duty of a new day in which we are permitted to hope for a general alliance which will avoid entangle- ments and clear the air of the world for common under- standings and the maintenance of common rights. I have made this analysis of the international situation which the war has created, not, of course, because I doubted whether the leaders of the great nations and peoples with whom we are associated were of the same mind and enter- tained a like purpose, but because the air every now and again gets darkened by mists and groundless doubtings and mis- chievous perversions of counsel and it is necessary once and again to sweep all the irresponsible talk about peace in- trigues and weakening morale and doubtful purpose on the part of those in authority utterly, and if need be uncere- moniously, aside and say things in the plainest words that can be found, even when it is only to say over again what has been said before, quite as plainly if in less unvarnished terms. Responds to the Issues of War. As I have said, neither I nor any other man in govern- mental authority created or gave form to the issues of this war. I have simply responded to them with such vision as I could command. But I have responded gladly and with a resolution that has grown warmer and more confident as the issues have grown clearer and clearer. It is now plain that they are issues which no man can pervert unless it be willfully. I am bound to fight for them, and happy to fight for them as time and circumstance have revealed them to me as to all. the world. Our enthusiasm for them grows more and more irresistible as they stand out in more and more vivid and unmistakable outline. And the forces that fight for them draw into closer and closer array, organize their millions into more and more un- conquerable might, as they become more and more distinct to the thought and purpose of the peoples engaged. It is the peculiarity of this great war that while statesmen have seemed to cast about for definitions of their purpose and have sometimes seemed to shift their ground and their point of view, the thought of the mass of men, whom statesmen are supposed to instruct and lead, has grown more and more unclouded, more and more certain of what it is that they are fighting for. National purposes have fallen more and more into the background and the common purpose of en- lightened mankind has taken their place. The counsels of plain men have become on all hands more simple and straightforward and more unified than the counsels of sophisticated men of affairs, who still retain the impression that they are playing a game of power and playing for high stakes. That is why I have said that this is a peoples' war, not a statemen's. Statesmen must follow the clarified com- mon thought or be broken. Glad to State War Aims. I take that to be the significance of the fact that as- semblies and associations of many kinds made up of plain workaday people have demanded, almost every time they came together, and are still demanding, that the leaders of their governments declare to them plainly what it is, exactly what it is, that they are seeking in this war, and what they think the items of the final settlement should be. They are not yet satisfied with what they have been told. They still seem to fear that they are getting what they ask for only in statesmen's terms-only in the terms of territorial arrange- ments and divisions of power, and not in terms of broad- visioned justice and mercy and peace and the satisfaction of those deep-seated longings of oppressed and distracted men and women and enslaved peoples that seem to them the only things worth fighting a war for that engulfs the world. Perhaps statesmen have not always recognized this changed aspect of the whole world of policy and action. Perhaps they have not always spoken in direct reply to the questions asked. because they did not know how searching those questions were and what sort of answers they demanded. But I, for one, am glad to attempt the answer again and again, in the hope that I may make it clearer and clearer that my one thought is to satisfy those who struggle in the ranks and are, perhaps above all others, entitled to a reply whose meaning no one can have any excuse for misunder- standing, if he understands the language in which it is spoken or can get someone to translate it correctly into his own. And I believe that the leaders of the governments with which we are associated will speak, as they have occa- sion, as plainly as I have tried to speak. I hope that they 9 will feel free to say whether they think that I am in any degree mistaken in my interpretation of the issues involved or in my purpose with regard to the means by which a satis- factory settlement of those issues may be obtained. Unity of purpose and of counsel are as imperatively necessary in this war as was unity of command in the battlefield; and with perfect unity of purpose and counsel will come assur- ance of complete victory. It can be had in no other way. "Peace drives" can be effectively neutralized and silenced only by showing that every victory of the nations associated against Germany brings the nations nearer the sort of peace which will bring security and reassurance to all peoples and make the recurrence of another such struggle of pitiless force and bloodshed forever impossible, and that nothing else can. Germany is constantly intimating the "terms" she will accept; and always finds that the world does not want terms. It wishes the final triumph of justice and fair dealing. 10 The 14 Points A Program for World Peace-Message to Congress of 8 January, 1918 ENTLEMEN of the Congress: Once more, as repeatedly before, the spokesmen of the central empires have indicated their desire to discuss the objects of the war and the possible basis of a general peace. G Parleys have been in progress at Brest-Litovsk between Russian representatives and representatives of the central powers to which the attention of all the belligerents has been invited, for the purpose of ascertaining whether it may be possible to extend these parleys into a general conference with regard to terms of peace and settlement. The Russian representatives presented not only a per- fectly definite statement of the principles upon which they would be willing to conclude peace, but also an equally definite program of the concrete application of those prin- ciples. The representatives of the central powers, on their part, presented an outline of settlement which, if much less definite, seemed susceptible of liberal interpretation until their specific program of practical terms was added. Control of Rússia the German Plan. That program proposed no concessions at all, either to the sovereignty of Russia or to the preferences of the population with whose fortunes it dealt, but meant, in a word, that the Central Empires were to keep every foot of territory their armed forces had occupied-every province, every city, every point of vantage-as a permanent addition to their terri- tories and their power. It is a reasonable conjecture that the general principles of settlement which they at first sug- gested originated with the more liberal statesmen of Ger- many and Austria, the men who have begun to feel the force of their own peoples' thought and purpose, while the con- crete terms of actual settlement came from the military 11 leaders, who have no thought but to keep what they have got. The negotiations have been broken off. The Russian representatives were sincere and in earn- est. They cannot entertain such proposals of conquest and domination. The whole incident is full of significance. It is also full of perplexity. With whom are the Russian representatives dealing? For whom are the representatives of the central empires speaking? Are they speaking for the majorities of their respective parliaments or for the minority parties, that military and imperialistic minority, which has so far dom- inated their whole policy and controlled the affairs of Turkey and of the Balkan states which have felt obliged to become their associates in this war? ¿ Open Diplomacy Is Insisted Upon. The Russian representatives have insisted, very justly, very wisely, and in the true spirit of democracy, that the conferences they have been holding with the Teutonic and Turkish statesmen should be held within open, not closed, doors, and all the world has been audience as was desired. To whom have we been listening then? To those who speak the spirit and intention of the resolutions of the German reichstag on the 9th of July last, the spirit and intention of the liberal leaders and parties of Germany, or to those who resist and defy that spirit and intention and insist upon con- quest and subjugation? Or are we listening in fact to both unreconciled and in open and hopeless contradiction? These are very serious and pregnant questions. Upon the answer to them depends the peace of the world. But whatever the results of the parleys at Brest-Litovsk, whatever the confusions of counsel and of purpose in the utterances of the spokesmen of the central empires, they have again attempted to acquaint the world with their objects in the war and have again challenged their adversaries to say what their objects are and what sort of settlement they would deem just and satisfactory. There is no good reason why that challenge should not be responded to, and responded to with the utmost candor. We did not wait for it. Not once, but again and again we have laid our whole thought and purpose before the world, not in general terms only, but each time with sufficient + 12 definition to make it clear what sort of definitive terms of settlement must necessarily spring out of them. Allies United As to Policies. Within the last week Mr. Lloyd George has spoken with admirable candor and in admirable spirit for the people and government of Great Britain. There is no confusion of coun- sel among the adversaries of the central powers, no uncer- tainty of principle, no vagueness of detail. The only secrecy of counsel, the only lack of fearless frankness, the only failure to make definite statement of the objects of the war, lies with Germany and her allies. The issues of life and death hang upon these definitions. No statesman who has the least conception of his responsi- bility ought for a moment to permit himself to continue this tragical and appalling outpouring of blood and treasure un- less he is sure beyond a peradventure that the objects of the vital sacrifice are part and parcel of the very life of society and that the people for whom he speaks think them right and imperative as he does. There is, moreover, a voice calling for these definitions of principle and of purpose which is, it seems to me, more thrilling and more compelling than any of the many moving voices with which the troubled air of the world is filled. It is the voice of the Russian people. They are prostrate and all but helpless, it would seem, before the grim power of Germany, which has hitherto known no relenting and no pity. Assistance for Russia Is Needed. Their power apparently is shattered, and yet their soul is not subservient. They will not yield either in principle or in action. The conception of what is right, of what it is humane and honorable for them to accept, has been stated with a frankness, a largeness of view, a generosity of spirit and a universal human sympathy which must challenge the admiration of every friend of mankind; and they have re- fused to compound their ideals or desert others that they themselves may be safe. They call to us to say what it is that we desire, in what, if anything, our purpose and our spirit differ from theirs; and I believe that the people of the United States would wish me to respond with utter simplicity and frankness. 13 Whether their present leaders believe it or not, it is our heartfelt desire and hope that some way may be opened whereby we may be privileged to assist the people of Russia to attain their utmost hope of liberty and ordered peace. For No Secret Understandings. It will be our wish and purpose that the processes of peace, when they are begun, shall be absolutely open and that they shall involve and permit henceforth no secret understandings of any kind. The day of conquest and ag- grandizement is gone by; so is also the day of secret cove- nants entered into in the interest of particular governments and likely at some unlooked-for moment to upset the peace of the world. It is this happy fact, now clear to the view of every pub- lic man whose thoughts do not still linger in an age that is dead and gone, which makes it possible for every nation whose purposes are consistent with justice and the peace of the world to avow now or at any other time the objects it has in view. We entered this war because violations of right had occurred which touched us to the quick and made the life of our own people impossible unless they were corrected and the world secured once for all against their recurrence. What we demand in this war, therefore, is nothing peculiar to ourselves. It is that the world be made fit and safe to live in; and particularly that it be made safe for every peace-loving nation which, like our own, wishes to live its own life, de- termine its own institutions, be assured of justice and fair dealing by the other peoples of the world as against force. and selfish aggression. All the peoples of the world are in effect partners in this interest, and for our own part we see very clearly that unless justice be done to others it will not be done to us. The Fourteen Points of the Program. The program of the world's peace, therefore, is our program, and that program, the only possible program, as we see it, is this: I. Open covenants of peace, openly arrived at, after which there shall be no private international 14 understandings of any kind, but diplomacy shall proceed always frankly and in the public view. II. Absolute freedom of navigation upon the seas, outside territorial waters, alike in peace and in war, except as the seas may be closed in whole or in part by international action for the enforcement of international covenants. III. The removal, so far as possible, of all economic barriers and the establishment of an equality of trade conditions among all the nations consenting to the peace and associating themselves for its maintenance. IV. Adequate guaranties given and taken that national armaments will be reduced to the lowest point consistent with domestic safety. V. A free, open-minded and absolutely impar- tial adjustment of all colonial claims, based upon a strict observance of the principle that in determining all such questions of sovereignty the interests of the populations concerned must have equal weight with the equitable claims of the government whose title is to be determined. Evacuation of Russia Necessary. VI. The evacuation of all Russian territory and such a settlement of all questions affecting Russia as will secure the best and freest co-operation of the other nations of the world in obtaining for her an unhampered and unembarrassed opportunity for the independent determination of her own political development and national policy and assure her of a sincere welcome into the society of free nations un- der institutions of her own choosing; and, more than a welcome, assistance also of every kind that she may need and may herself desire. The treat- ment accorded Russia by her sister nations in the months to come will be the acid test of their good will, of their comprehension of her needs as dis- tinguished from their own interests, and of their intelligent and unselfish sympathy. VII. Belgium, the whole world will agree, must be evacuated and restored, without any attempt to limit the sovereignty which she enjoys in common 15 with all other free nations. No other single act will serve as this will serve to restore confidence among the nations in the laws which they have themselves set and determined for the government of their re- lations with one another. Without this healing act the whole structure and validity of international law is forever impaired. VIII. All French territory should be freed and the invaded portions restored and the wrong done to France by Prussia in 1871 in the matter of Alsace Lorraine, which has unsettled the peace of the world for nearly fifty years, should be righted in order that peace may once more be made secure in the interest of all. IX. A readjustment of the frontiers of Italy should be effected along clearly recognizable lines of nationality. Must Free Oppressed Nationalities. X. The peoples of Austria-Hungary, whose place among the nations we wish to see safeguarded and assured, should be accorded the freest oppor- tunity of autonomous development.* XI. Rumania, Serbia and Montenegro should be evacuated; occupied territories restored; Serbia accorded free and secure access to the sea; and the relations of the several Balkan states to one another determined by friendly counsel along historically established lines of allegiance and nationality; and international guaranties of the political and eco- nomic independence and territorial integrity of the several Balkan states should be entered into. XII. The Turkish portions of the present Otto- man Empire should be assured a secure sovereignty, but the other nationalities which are now under Turkish rule should be assured an undoubted secur- ity of life and an absolutely unmolested opportunity of autonomous development, and the Dardanelles should be permanently opened as a free passage to The tenth point was superseded by a demand for actual freedom and not mere autonomy for the oppressed nationalities of Austria in the Presi- dent's reply of 19 October, 1918, to the Austrian request for an armistice. This said: "The President is, therefore, no longer at liberty to accept mere autonomy for these peoples as a basis of peace. 9.9 16 the ships and commerce of all nations under inter- national guaranties. XIII. An independent Polish state should be erected which should include the territories inhab- ited by indisputably Polish populations, which should be assured a free and secure access to the sea and whose political and economic independence and territorial integrity should be guaranteed by inter- national covenant. XIV. A general association of nations must be formed under specific covenants for the purpose of affording mutual guaranties of political independ- ence and territorial integrity to great and small states alike. C Stand Together to the End. In regard to these essential rectifications of wrong and assertions of right we feel ourselves to be intimate partners of all the governments and peoples associated together against the imperialists. We cannot be separated in interest or divided in purpose. We stand together until the end. For such arrangements and covenants we are willing to fight and to continue to fight until they are achieved; but only because we wish the right to prevail and desire a just and stable peace, such as can be secured only by removing the chief provocations to war, which this program does remove. We have no jealousy of German greatness and there is nothing in this program that impairs it. We grudge her no achievement or distinction of learning or of pacific enter- prise such as have made her record very bright and very enviable. We do not wish to injure her or to block in any way her legitimate influence or power. We do not wish to fight her either with arms or with hostile arrangements of trade, if she is willing to associate herself with us and the other peace-loving nations of the world in covenants of jujsticė and law and fair dealing. We wish her only to accept a place of equality among the peoples of the world-the new world in which we now live-instead of a place of mastery. 17. No Trafficking With Militarism. Neither do we presume to suggest to her any alteration or modification of her institutions. But it is necessary, we must frankly say and necessary as a preliminary to any intelligent dealings with her on our part, that we should know whom her spokesmen speak for when they speak to us, whether for the Reichstag majority or for the military party, and the men whose creed is imperial domination. We have spoken now, surely, in terms too concrete to admit of any further doubt or question. An evident prin- ciple runs through the whole program I have outlined. It is the principle of justice to all peoples and nation- alities, and their right to live on equal terms of liberty and safety with one another, whether they be strong or weak. Unless this principle be made its foundation no part of the structure of international justice can stand. The people of the United States could act upon no other principle, and to the vindication of this principle they are ready to devote their lives, their honor and everything that they possess. The moral climax of this, the culminating and final war for human liberty has come, and they are ready to put their strength, their own highest purpose, their own integrity and devotion to the test. 18 The Four Cardinal Principles Reply to Chancellor von Hertling and Count Czernin -Address to Congress of 11 February, 1918 N the 8th of January, I had the honor of addressing you on the objects of the war as our people conceive them. The prime minister of Great Britain had spoken in similar terms on the 5th of January. O To these addresses, the German chancellor replied on the 24th, and Count Czernin for Austria on the same day. It is gratifying to have our desire so promptly realized that all exchanges of view on this great matter should be made in the hearing of all the world. Count Czernin's reply, which is directed chiefly to my own address, on the 8th of January, is uttered in a very friendly tone. He finds, in my statement, a sufficiently encouraging approach to the views of his own government to justify him in believing that it furnishes a basis for a more detailed discussion of purposes by the two governments. He is represented to have intimated that the views he was expressing had been communicated to me before hand and that I was aware of them at the time he was uttering them; but in this I am sure he was misunderstood. I had received no intimation of what he intended to say. There was, of course, no reason why he should communicate privately with me. I am quite content to be one of his public audience. Count von Hertling's reply is, I must say, very vague and very confusing. It is full of equivocal phrases and leads it is not clear where. But it is certainly in a very different tone from that of Count Czernin and apparently of an op- posite purpose. It confirms, I am sorry to say, rather than removes, the unfortunate impression made by what we had learned of the conferences at Brest-Litovsk. Jealous of International Action. His discussion and acceptance of our general principles lead him to no practical conclusions. He refuses to apply 19 them to the substantive items which must constitute the body of any final settlement. He is jealous of international action and of international counsel. He accepts, he says, the principle of public diplomacy, but he appears to insist that it be confined, at any rate in this case, to generalities and that the several particular ques- tions of territory and sovereignty, the several questions upon whose settlement must depend the acceptance of peace by the twenty-three states now engaged in the war, must be discussed and settled, not in general council, but severally by the nations most immediately concerned by interest or neighborhood. He agrees that the seas should be free, but looks askance at any limitation to that freedom by international action in the interest of the common order. He would, without re- serve, be glad to see economic barriers removed between nation and nation, for that could in no way impede the ambi- tions of the military party with whom he seems constrained to keep on terms. K Neither does he raise objection to a limitation of arma- ments. That matter will be settled of itself, he thinks, by the economic conditions which must follow the war. Hertling's Terms Then Harsh. But the German colonies, he demands, must be returned without debate. He will discuss with no one but the repre- sentatives of Russia what dispositions shall be made of the peoples and the lands of the Baltic provinces; with no one but the government of France the "conditions" under which. French territory shall be evacuated, and only with Austria what shall be done with Poland. In the determination of all questions affecting the Balkan states he defers, as I understand him, to Austria and Turkey; and with regard to the agreements to be entered into con- cerning the non-Turkish peoples of the present Ottoman empire to the Turkish authorities themselves. After a settlement all around, effected in this fashion, by individual barter and concession, he would have no ob- jection, if I correctly interpret his statement, to a league of nations which would undertake to hold the new balance of power steady against external disturbances. It must be evident to every one who understands what this war has wrought in the opinion and temper of the world 20 that no general peace, no peace worth the infinite sacrifices of these years of tragical suffering, can possibly be arrived at in any such fashion. Peace of the World Now at Stake. The method the German chancellor proposes is the method of the congress of Vienna. We cannot and will not return to that. What is at stake now is the peace of the world. What we are striving for is a new international order based upon broad and universal principles of right and justice-no mere peace of shreds and patches. Is it possible that Count von Hertling does not see that, does not grasp it, is, in fact, living in his thought in a world dead and gone? Has he utterly forgotten the reichstag reso- lutions of the 19th of July, or does he deliberately ignore. them? They spoke of the conditions of a general peace, not of national aggrandizement or of arrangements between state and state. The peace of the world depends upon the just settlement of each of the several problems to which I adverted in my recent address to the congress. I, of course, do not mean that the peace of the world depends upon the acceptance of any particular set of suggestions as to the way in which those problems are to be dealt with. I mean only that those problems each and all affect the whole world; that unless they are dealt with in a spirit of unselfish and unbiased justice, with a view to the wishes, the natural connections, the racial aspirations, the security and peace of mind of the peoples involved, no permanent peace will have been attained. Must Settle All Questions Right. They cannot be discussed separately or in corners. None of them constitutes a private or separate interest from which the opinion of the world may be shut out. Whatever affects the peace affects mankind, and nothing settled by military force, if settled wrong, is settled at all. It will presently have to be reopened. Is Count von Hertling not aware that he is speaking in the court of mankind; that all the awakened nations of the world now sit in judgment on what every public man, of whatever nation may say on the issues of a conflict which has spread to every region of the world? 21 The reichstag resolutions of July themselves, frankly accepted the decisions of that court. There shall be no an- nexations, no contributions, no punitive damages. Peoples are not to be handed about from one sovereignty to another by an international conference or an understanding between rivals and antagonists. National aspirations must be respected, peoples may now be dominated and governed only by their own consent. "Self-determination" is not a mere phrase. It is an impera- tive principle of action, which statesmen will henceforth ignore at their peril. We cannot have general peace for the asking, or by the mere arrangements of a peace conference. It cannot be pieced together out of individual understandings between powerful states. All the parties to this war must join in the settlement of every issue anywhere involved in it because what we are seeking is a peace that we can all unite to guar- antee and maintain and every item of it must be submitted to the common judgment whether it be right and fair, an act of justice, rather than a bargain between sovereigns. GA America Not Seeking to Interfere. The United States has no desire to interfere in European affairs or to act as arbiter in European territorial disputes. She would disdain to take advantage of any internal weak- ness or disorder to impose her own will upon another people. She is quite ready to be shown that the settlements she has suggested are not the best or the most enduring. They are only her own provisional sketch of principles, and of the way in which they should be applied. But she entered this war because she was made a part- ner, whether she would or not, in the sufferings and indig- nities inflicted by the military masters of Germany against the peace and security of mankind; and the conditions of peace will touch her as nearly as they will touch any other nation to which is intrusted a leading part in the mainte- nance of civilization. She cannot see her way to peace until the causes of this war are removed, its renewal rendered as nearly as may be impossible. This war had its roots in the disregard of the rights of small nations and of nationalities which lacked the union and the force to make good their claim to determine their 22 3 own allegiances and their own forms of political life. Cove- nants must now be entered into which will render such things impossible for the future; and those covenants must be backed by the united force of all the nations that love justice and are willing to maintain it at any cost. If territorial settlements and the political relations of great populations which have not the organized power to resist are to be determined by the contracts of the powerful governments, which consider themselves most directly af- fected, as Count von Hertling proposes, why may not eco- nomic questions also? da Justice the Concern of All. It has come about in the altered world in which we now find ourselves that justice and the rights of peoples affect the whole field of international dealing as much as access to raw materials and fair and equal conditions of trade. Count von Hertling wants the essential bases of com- mercial and industrial life to be safeguarded by common agreement and guarantee, but he cannot expect that to be conceded him if the other matters to be determined by the articles of peace are not handled in the same way as items in the final accounting. He cannot ask the benefit of com- mon agreement in the one field without according it in the other. I take it for granted that he sees that separate and sel- fish compacts with regard to trade and the essential ma- terials of manufacture would afford no foundation for peace. Neither, he may rest assured, will separate and selfish com- pacts with regard to provinces and peoples. Count Czernin seems to see the fundamental elements of peace with clear eyes and does not seek to obscure them. He sees that an independent Poland, made up of all the in- disputably Polish peoples who lie contiguous to one another, is a matter of European concern and must, of course, be con- ceded; that Belgium must be evacuated and restored, no mat- ter what sacrifices and concessions that may involve! and that national aspirations must be satisfied, even within his own empire, in the common interest of Europe and mankind. If he is silent about questions which touch the interest and purpose of his allies more nearly than they touch those of Austria only, it must, of course, be because he feels con- strained, I suppose, to defer to Germany and Turkey in the circumstances. 23 Seeing and conceding, as he does, the essential principles involved and the necessity of candidly applying them, he naturally feels that Austria can respond to the purpose of peace as expressed by the United States with less embarrass- ment than could Germany. He probably would have gone much further had it not been for the embarrassment of Austria's alliances and of her dependence upon Germany. The Four Cardinal Principles. After all, the test of whether it is possible for either government to go any further in this comparison of views is simple and obvious. The principles to be applied are these: I. That each part of the final settlement must be based upon the essential justice of that particu- lar cause and upon such adjustments as are most likely to bring a peace that will be permanent. II. That peoples and provinces are not to be bartered about from sovereignty to sovereignty as if they were mere chattels and pawns in a game, even the great game, now forever discredited, of the bal- ance of power; but that- III. Every territorial settlement involved in this war must be made in the interest and for the benefit of the populations concerned, and not as a part of any mere adjustment or compromise of claims among rival states; and- IV. That all well defined national aspirations shall be accorded the utmost satisfaction that can be accorded them without introducing new or perpetu- ating old elements of discord and antagonism that would be likely in time to break the peace of Europe and consequently of the world. A general peace erected on such foundations can be dis- cussed. Until such a peace can be secured we have no choice but to go on. So far as we can judge, these principles that we regard as fundamental are already everywhere accepted as imperative, except among the spokesmen of the military and annexationist party in Germany. If they have anywhere else been rejected the objectors have not been sufficiently numerous or influential to make their voices audible. The tragical circumstance is that this one party in Ger- many is apparently willing and able to send millions of 24 men to their death to prevent what all the world now sees to be just. I would not be a true spokesman of the people of the United States if I did not say once more that we entered this war upon no small occasion and that we never can turn back from a course chosen upon principle. k To Use America's Full Force. Our resources are in part mobilized now and we shall not pause until they are mobilized in their entirety. Our armies are rapidly going to the fighting front and will go more and more rapidly. Our whole strength will be put into this war of emancipation-emancipation from the threat and attempted mastery of selfish groups of autocratic rulers -whatever the difficulties and present partial delays. We are indomitable in our power of independent action and can in no circumstances consent to live in a world gov- erned by intrigue and force. We believe that our own desire for a new international order under which reason and justice and the common interests of mankind shall prevail is the desire of enlightened men everywhere. Without that new order the world will be without peace and human life will lack tolerable conditions of existence and development. Having set our hand to the task of achieving it we shall not turn back. I hope that it is not necessary for me to add that no word of what I have said is intended as a threat. That is not the temper of our people. I have spoken thus only that the whole world may know the true spirit of America-that men everywhere may know that our passion for justice and for self-government is no mere passion of words, but a passion which, once set in action, must be satisfied. The power of the United States is a menace to no nation or people. It will never be used in aggression or for the aggran- dizement of any selfish interest of our own. It springs out of freedom and is for the service of freedom. huge ! 25 Force to the Utmost The Acceptance of the Challenge of Prussianism in the Liberty Day Address at Baltimore, 6 April, 1918 ELLOW Citizens: This is the anniversary of our ac- ceptance of Germany's challenge to fight for our right to live and be free, and for the sacred rights of free men everywhere. F The nation is awake. There is no need to call to it. We know what the war must cost, our utmost sacrifice, the lives of our fittest men, and, if need be, all that we possess. The loan we are met to discuss is one of the least parts of what we are called upon to give and to do, though in itself im- perative. The people of the whole country are alive to the neces- sity of it and are ready to offer to the utmost, even where it involves a sharp skimping and daily sacrifice to lend out of meager earnings. They will look with reprobation and contempt upon those who can and will not, upon those who demand a higher rate of interest, upon those who think of it as a mere commercial transaction. I have not come, therefore, to urge the loan. I have come only to give you, if I can, a more vivid conception of what it is for. Issues of the War Now Clear. The reasons for this great war, the reason why it had to come, the need to fight it through, and the issues that hang upon its outcome are more clearly disclosed now than ever before. It is easy to see just what this particular loan means because the cause we are fighting for stands more sharply revealed than at any previous crisis of the mo- mentous struggle. The man who knows least can now see plainly how the cause of justice stands and what the imperishable thing is he is asked to invest in. Men in America may be more sure 26 than they ever were before that the cause is their own and that, if it should be lost, their own great nation's place and mission in the world would be lost with it. I call you to witness, my fellow countrymen, that at no stage of this terrible business have I judged the purposes of Germany intemperately. I should be ashamed in the presence of affairs so grave, so fraught with the destinies of mankind throughout all the world, to speak with truculence, to use the weak language of hatred or vindictive purpose. We must judge as we would be judged. I have sought to learn the objects Germany has in this war from the mouths of her own spokesmen, and to deal as frankly with them as I wished them to deal with me. I have laid bare our own ideals, our own purposes, without reserve or doubt- ful phrase, and have asked them to say as plainly what it is that they seek. Final Justice the Only Aim. We have ourselves proposed no injustice, no aggression. We are ready, whenever the final reckoning is made, to be just to the German people, deal fairly with the German power, as with all others. There can be no difference be- tween peoples in the final judgment if it is indeed to be a righteous judgment. To propose anything but justice, even-handed and dis- passionate justice, to Germany at any time, whatever the outcome of the war, would be to renounce and dishonor our own cause. For we ask nothing that we are not willing to accord. It has been with this thought that I have sought to learn from those who spoke for Germany whether it was justice. or dominion and the execution of their own will upon the other nations of the world that the German leaders were seeking. They have answered, answered in unmistakable terms. They have avowed that it was not justice, but dominion and the unhindered execution of their own will. The avowal has not come from Germany's statesmen. It has come from her military leaders, who are her real rulers. Her statesmen have said that they wished peace, and were ready to discuss its terms whenever their opponents were willing to sit down at the conference table with them. Her present chancellor has said-in indefinite and un- certain terms, indeed, and in phrases that often seem to 27 deny their own meaning, but with as much plainness as he thought prudent-that he believed that peace should be based upon the principles which we had declared would be our own in the final settlement. Recalls Brest-Litovsk Perfidy. At Brest-Litovsk her civilian delegates spoke in similar terms; professed their desire to conclude a fair peace and accord to the peoples with whose fortunes they were dealing the right to choose their own allegiances. But action accompanied and followed the profession. Their military masters, the men who act for Germany and exhibit her purpose in execution, proclaimed a very dif- ferent conclusion. Gra We cannot mistake what they have done-in Russia, in Finland, in the Ukraine, in Rumania. The real test of their justice and fair play has come. From this we may judge the rest. They are enjoying in Russia a cheap triumph in which no brave or gallant nation can long take pride. A great people, helpless by their own act, lies for the time at their mercy. Their fair professions are forgotten. They nowhere set up justice, but everywhere impose their power and exploit everything for their own use and aggran- dizement, and the peoples of conquered provinces are in- vited to be free under their dominion! Are we not justified in believing that they would do the same things at their western front if they were not there face to face with armies whom even their countless divisions cannot overcome? If when they have felt their check to be final they should propose favorable and equitable terms. with regard to Belgium and France and Italy could they blame us if we concluded that they do so only to assure themselves of a free hand in Russia and the east? Germans Planned World Empire. Their purpose is undoubtedly to make all the free and ambitious nations of the Baltic peninsula, all the lands that Turkey has dominated and misruled, subject to their will and ambition and build upon that dominion an empire of force upon which they fancy that they can then erect an empire of gain and commercial supremacy, an empire as 28 hostile to the Americas as to the Europe which it will over- awe, an empire which will ultimately master Persia, India, and the peoples of the far east. In such a program our ideals, the ideals of justice and humanity and liberty, the principle of the free self-deter- mination of nations upon which all the modern world in- sists, can play no part. They are rejected for the ideals of power, for the prin- ciple that the strong must rule the weak, that trade must follow the flag, whether those to whom it is taken welcome it or not, that the peoples of the world are to be made subject to the patronage and overlordship of those who have the power to enforce it. Peril to America in the Program. That program once carried out, America and all who care or dare to stand with her must arm and prepare them- selves to contest the mastery of the world, a mastery in which the rights of common men, the rights of women and of all who are weak, must for the time being be trodden under foot and disregarded, and the old, age-long struggle for freedom and right must begin again at its beginning. Everything that America has lived for, and loved, and grown great to vindicate and bring to a glorious realization will have fallen in utter ruin, and the gates of mercy will once more pitilessly shut upon mankind! The thing is preposterous and impossible, and yet is not that what the whole course and action of the German armies has meant wherever they have moved? I do not wish, even in this moment of utter disillusion- ment, to judge harshly or unrighteously. I judge only what the German arms have accomplished with unpitying thor- oughness throughout every fair region they have touched. What, then, are we to do? For myself, I am ready, ready still, ready even now, to discuss a fair and just and honest peace at any time that it is sincerely purposed-a peace in which the strong and the weak shall fare alike. But the answer, when I proposed such a peace, came from the German commanders in Russia, and I cannot mistake the meaning of the answer. Accepts the Challenge of Force. I accept the challenge. I know that you accept it. All the world shall know that you accept it. It shall appear in 29 the utter sacrifice and self-forgetfulness with which we shall give all that we love and all that we have to redeem the world and make it fit for free men like ourselves to live in. This now is the meaning of all that we do. Let every- thing that we say, my fellow countrymen, everything that we henceforth plan and accomplish, ring true to this re- sponse till the majesty and might of our concerted power shall fill the thought and utterly defeat the force of those who flout and misprize what we honor and hold dear. Germany has once more said that force, and force alone, shall decide whether justice and peace shall reign in the affairs of men; whether right, as America conceives it, or dominion, as she conceives it, shall determine the destinies of mankind. There is, therefore, but one response possible from us-force; force to the utmost, force without stint or limit, the righteous and triumphant force which shall make right the law of the world and cast every selfish dominion down in the dust. ! 30 No Half-Way Peace Four Ends for Which the World Is Fighting- Mt. Vernon Address of 4 July, 1918 G ENTLEMEN of the Diplomatic Corps and My Fellow Citizens: I am happy to draw apart with you to this quiet place of old counsel in order to speak a little of the meaning of this day of our nation's independence. The place seems very still and remote. It is as serene and untouched by the hurry of the world as it was in those great days long ago when Gen. Washington was here and held leisurely conference with the men who were to be asso- ciated with him in the creation of a nation. From these gentle slopes they looked out upon the world and saw it whole, saw it with the light of the future upon it, saw it with modern eyes that turned away from a past which men of liberated spirits could no longer endure. It is for that reason that we cannot feel, even here, in the immediate presence of this sacred tomb, that this is a place of death. It was a place of achievement. A great promise that was meant for all mankind was here given plan and reality. The associations by which we are here surrounded are the inspiring associations of that noble death which is only a glorious consummation. From this green hillside we also ought to be able to see with comprehending eyes the world that lies about us and should conceive anew the purposes that must set men free. Speaking for All Mankind. It is significant-significant of their own character and purpose and of the influences they were setting afoot-that Washington and his associates, like the barons at Runny- mede, spoke and acted not for a class, but for a people. It has been left for us to see to it that it shall be understood that they spoke and acted not for a single people only, but for all mankind. 31 They were thinking not of themselves and of the ma- terial interests which centered in the little groups of land- holders and merchants and men of affairs with whom they were accustomed to act, in Virginia and the colonies to the north and south of her, but of a people which wished to be done with classes and special interests and the authority of men whom they had not themselves chosen to rule over them. They entertained no private purpose, desired no peculiar privilege. They were consciously planning that men of every class should be free and America a place to which men out of every nation might resort who wished to share with them the rights and privileges of free men. And we take our cue from them-do we not? We in- tend what they intended. We here in America believe our participation in this present war to be only the fruitage of what they planted. 1 Liberty For the World Is Aim. Our case differs from theirs only in this, that it is our inestimable privilege to concert with men out of every nation what shall make not only the liberties of America secure, but the liberties of every other people as well. We are happy in the thought that we are permitted to do what they would have done had they been in our place. There must now be settled once for all what was settled for America in the great age upon whose inspiration we draw today. This is surely a fitting place from which calmly to look out upon our task, that we may fortify our spirits for its accomplishment. And this is the appropriate place from which to avow, alike to the friends who look on and to the friends with whom we have the happiness to be asso- ciated in action, the faith and purpose with which we act. Justice for Helpless Peoples. This, then, is our conception of the great struggle in which we are engaged. The plot is written plain upon every scene and every act of the supreme tragedy. On the one hand stand the peoples of the world-not only the peoples actually engaged, but many others also who suffer under mastery but cannot act; peoples of many races and in every part of the world-the people of stricken Russia still, among 32 the rest, though they are for the moment unorganized and helpless. Opposed to them, masters of many armies, stand an iso- lated, friendless group of governments who speak no com- mon purpose, but only selfish ambitions of their own by which none can profit but themselves, and whose peoples are fuel in their hands; governments which fear their people and yet are for the time their sovereign lords, making every choice for them and disposing of their lives and fortunes as they will, as well as of the lives and fortunes of every people who fall under their power-governments clothed with the strange trappings and the primitive authority of an age that is altogether alien and hostile to our own. The Past and the Present are in deadly grapple, and the peoples of the world are being done to death between them. What the People Fight For. There can be but one issue. The settlement must be final. There can be no compromise. No half-way decision would be tolerable. No half-way decision is conceivable. These are the ends for which the associated peoples of the world are fighting and which must be conceded them before there can be peace: I. The destruction of every arbitrary power anywhere that can separately, secretly, and of its single choice disturb the peace of the world; or, if it cannot be presently destroyed, at the least its re- duction to virtual impotence. II. The settlement of every question, whether of territory, of sovereignty, of economic arrange- ment, or of political relationship, upon the basis of the free acceptance of that settlement by the people immediately concerned, and not upon the basis of the material interest or advantage of any other na- tion or people which may desire a different settle- ment for the sake of its own exterior influence or mastery. III. The consent of all nations to be governed in their conduct towards each other by the same principles of honor and of respect for the common law of civilized society that govern the individual citizens of all modern states in their relations with one another; to the end that all promises and cove- 33 nants may be sacredly observed, no private plots or conspiracies hatched, no selfish injuries wrought with impunity, and a mutual trust established upon the handsome foundation of a mutual respect for right. IV. The establishment of an organization of peace which shall make it certain that the combined power of free nations will check every invasion of right and serve to make peace and justice the more secure by affording a definite tribunal of opinion to which all must submit and by which every interna- tional readjustment that cannot be amicably agreed upon by the peoples directly concerned shall be sanctioned. These great objects can be put into a single sentence. What we seek is the reign of law, based upon the consent of the governed and sustained by the organized opinion of mankind. Cannot Win by Debating. These great ends cannot be achieved by debating and seeking to reconcile and accommodate what statesmen may wish, with their projects for balances of power and of na- tional opportunity. They can be realized only by the deter- mination of what the thinking peoples of the world desire, with their longing hope for justice and for social freedom and opportunity. I can fancy that the air of this place carries the accents of such principles with a peculiar kindness. Here were started forces which the great nation against which they were primarily directed at first regarded as a revolt against its rightful authority, but which it has long since seen to have been a step in the liberation of its own people as well as of the people of the United States, and I stand here now to speak-speak proudly and with confident hope-of the spread of this revolt, this liberation, to the great stage of the world itself. The blinded rulers of Prussia have roused forces they knew little of-forces which, once roused, can never be crushed to earth again; for they have at their heart an in- spiration and a purpose which are deathless and of the very stuff of triumph! 34 Copies may be obtained of the War Committee of the Union League Club of Chicago, at the following prices, delivery prepaid: Single copies One hundred copies... One thousand copies.... מיו ! TRADEA WITH COUNCIL 20 ...5 cents $2.50 20.00 Pamphlets on Pressing War Issues Printed by The War Committee of the Union League Club of Chicago Three pamphlets dealing with the business situation in war time UNUSUAL BUSINESS NOT BUSINESS AS USUAL By Harold G. Moulton A pamphlet dealing with the necessity of putting war work ahead of private work. 15 pages. YOUR BUSINESS AND WAR BUSINESS By Harold G. Moulton A pamphle、 telling manufacturers how they may adjust their business to the needs of the nation at war. 23 pages. THE DUTY OF THE CONSUMER IN WAR TIME By Harold G. Moulton In which the duty of everyone to economize and forego luxuries in order that the Government may not lack for labor and supplies, is forcefully pointed out. 16 pages. These business pamphlets may be had singly or in quantities at the follow- ing prices: Single copy, 5c; 100 copies, $2.00; 1000 copies, $10.00. Two pamphlets dealing with vital war questions WHY WE FIGHT By Clarence L. Speed In which the reasons which forced America into the war are pointed out. 28 pages. Single copy, 5c; 100 copies, $2.00; 1000 copies, $10.00. OUR PERIL ON THE EASTERN FRONT By Clarence L. Speed - Showing the danger to America and the world which would result from a premature peace, leaving conquests in the East in German hands. 22 pages, with nationality map of Middle Europe. Single copy, 5c; 100 copies, $2.00; 1000 copies, $15.00. Leaflets for quantity distribu- tion in factories and elsewhere OUR PERIL ON THE EASTERN FRONT By Clarence L. Speed A study of the Eastern situation in shorter form. THEIR JOB AND OURS LUXURY OR VICTORY-WHICH? By Clarence L. Speed Showing the necessity of working at home like our soldiers in France fight. By Clarence L. Speed Showing the necessity of economizing in individual expenditures in order that the Government may not lack materials and labor for necessary war work. These leaflets may be had for $1.00 a hundred, or $4.00 a thousand. The Manufacturer's Wage Problem - By Herbert F. Perkins of the International Harvester Co. THE UNION LEAGUE CLUB OF CHICAGO. 1919 After you have read this pamphlet please pass it on in order that the message it carries may reach the largest number of persons. Mr. Herbert F. Perkins has been ac- 2 tively engaged in manufacturing ´´ in- dustries since his college days-first with the National Malleable Castings Co., and subsequently, since 1899, with the McCormick Co. and the Interna- tional Harvester Co., in which latter company he holds the position of Divi- sion Manager, in charge of manufac- turing. From the latter part of May to the end of December, 1918, Mr. Perkins was attached to the War Policies Board in Washington, D. C., under the De- partment of Labor, as Business Ad- viser to the Chairman, Mr. Frankfurter. In this position Mr. Perkins had ex- ceptional opportunity to see the whole situation in its true perspective. Copies may be obtained of the War Committee of the Union League Club of Chicago at the following prices, delivery prepaid: Single copies One hundred copies One thousand copies C G 1 1 $ 0.05 2.00 10.00 2 The Manufacturer's Wage Problem T HE manufacturer of the United States is emerging from a period of intensive effort, accompanied by a con- stantly increasing cost of production, due to mounting material prices and labor rates. Higher cost of production, translated into commodity prices, has immediately been re- flected in the living cost of the wage-earning classes. It is evident that, in proportion as living costs have ad- vanced without a corresponding advance in the standard of living, increased wages have been purely an increase in dollar wages, but not in actual prosperity. Owing to the tremendous demands for food abroad, that part of the working man's cost of living which is made up of his food supplies, has advanced perhaps more rapidly than other items which directly affect him. Investigation has shown that for the working man's family, food constitutes from forty to fifty per cent of the family budget and that for the lower paid workman, the proportion borne by food has been higher than for the highly paid. With the advancing cost of conducting business, the manufacturer has suffered an increasing strain upon his cap- ital resources and has been compelled to increase his selling price to protect his advancing capital requirements. The burden of government income tax and in less degree other taxes has developed through the exigency of war to undreamed of figures. In order to provide the annual cash outlay to meet these taxes and at the same time maintain normal net earnings, selling prices have had to be still further increased. G Employer and Employe Alike Loyal. During this period the patriotic enthusiasm of the citi- zenship of the country, both employer and employe, has run high. Resources of capital and labor have been freely placed at the command of the government to prosecute a successful 3 war and to maintain at the highest standard the world has known the conditions to be thrown around our armies in the field and in training in the cantonments at home. This is no time to dissect the various degrees of self- interest or national loyalty which have influenced either the employer or the employe. There has been profiteering in both classes to the everlasting disgrace of the individuals justly so charged, but it would be unjust to the spirit of the whole population that has been shown during the war to indulge in implications against either the employer or the employe. Period of Uncertainty Ahead. Today the manufacturer of the United States faces a serious and uncertain future. He knows that for a year and a half to come the price of wheat has been guaranteed at the highest war price. He understands that his country, owing to the demoralized condition in other great food producing nations, is expected to protect food shortage in Europe and he therefore has reason to expect that foodstuffs generally will be in unprecedented demand, so that although the food requirements of armies is materially greater than the food requirements of the same population when returned to civil life, the cost of food in the workman's budget will continue at a high level for an extended period. The still incomplete lists of our own losses in the war from death by battle and sickness and from crippling wounds evidence the dreadful disaster to the young manhood of our country that the fight for world-wide democracy has cost. Yet we know how small is our own disaster compared with the appalling loss to the fighting forces of our allies and of the enemy. The depletion of able-bodied men in those countries, the lower birth rate incident to the strain of the contest and the consequent decline in conditions of living are bound to be factors of great importance in limiting labor available for the period of reorganization in Continental Europe and in the colonies related to the European nations that have engaged in the four years' conflict. There is bound to be, from purely physical causes, a shortage of man power in these countries. On the other hand, we know that with the great burden of debt which the war has laid upon the contesting nations, ¦ 4 their only salvation lies through intense labor and increased production and a consequent struggle for the trade of the world. The unprecedented requirements of the allied nations have stimulated the spirit of invention, have broken down many of the impediments to production and stimulated the use of machinery and means of production along American methods, so that the manufacturing production per man in the allied countries, particularly England, has been heavily increased. It follows that the advantage which, through our manufacturing skill, we undoubtedly possessed in the period preceding the war, has been decreased. As an instance it has been reported that in the making of ammunition, the pro- duction per man in English arsenals, which before war was markedly less than in the American shops, had toward the end of the period of the war surpassed our own. Further, it would appear that, whatever problems the reconstruction period may bring, the relations between the wage-earners and management and the breadth of vision with which these groups have been approaching their mutual problems, have been vastly improved in England as compared with the pre- war period. Men Return as Contracts Cease. Now the war is over. Our men from the camps and our men from the ranks abroad are returning to the farms, the offices and the factories. Our great organizations built solely for the production of war requirements are emptying their thousands upon the labor market. Hundreds of establish- ments, large and small, that had increased or modified their facilities to meet the special requirements of warfare, not only for our own soldiery during the last year and a half, but also for the soldiery of the allies for the past four years, are, simultaneously with the return of these millions of men, having their contracts cancelled. The problem of industry is now to reorganize the imple- ments of manufacture to meet the demands of peace, to find work for the returning khaki-clad thousands, and, most fundamentally of all, to find the markets which shall take the product of these facilities and of these men, and in addi- 5 tion of those men and women, who, as soldiers of industry, have just as truly been prosecuting the war at home by the contribution of their united efforts in the production of munitions, clothing and food. He would indeed be more than a man who could measure the problem and fit its answer and the man would be fool-hardy who would attempt the functions of a prophet. The problem of immigration and of emigration will be a factor of no little importance in the final tale, but this is so insoluble a question at present that it can only be sug- gested, not answered. It would appear, however, as more than a mere probability that the period of inflation and apparent great prosperity which this country has been going through, must be succeeded by deflation and a time, perhaps measured by months rather than years, of pronounced de- cline in volume of business. After this period has passed we may hope that, partly in consequence of the great de- struction of material things which the war has entailed, there will follow a period of tremendous production of essentials and of great general prosperity for America. Immediate Decline in Wages Undesirable. Perhaps one of the most vital problems will turn upon the distribution which shall be given to the values that are to be created. Are they to be apportioned as heretofore or are they to be differently distributed? Too many employers, with their minds more on the experience of the past than the promise of the future, have been watching anxiously and often nervously the constant rise in money wages. The thought has been borne strongly in upon them that the his- torical and therefore the most natural and correct method of meeting the period of declining business and profits is through the prompt reduction of the wage rate attained through the stimulation of these past years of conflict. It does not seem possible, however, that such a thought can be the proper immediate reaction of peace to the spirit which impelled the United States to take up arms in the fight against the Central Powers. Surely none of us whose minds have accompanied our hearts in determining our relation to the great struggle can dismiss the conviction that the democracy for which we have battled is not democracy 6 of the ballot alone, but democracy in all fundamental rela- tions, including those that are industrial as well as those that are political. We have struggled for a democracy, not utopian or unguarded, but controlled by law and recognizing efforts and purposes, intelligence and capacity, a democracy using law to bring to the less gifted or less fortunate higher ambitions and growing efficiency. Nor is it unreasonable to believe that along this line may be found the most genuine and most broad prosperity of all groups. A study of the figures of the income of our nation for a long period preceding the war will reveal the fact that, in the years of relatively lowest domestic consumption, the ratio of our income from sales outside of our country to the income from business within our country was approximately as one to five, while in years of active home trade the ratio has been from one to ten, to one to seven. Home Markets Most Important. There are, in the United States, more than thirty million. people largely dependent upon fixed compensation; and of these the wage-earners in our factories, offices, mills and mines are the largest single group. It would follow that the prosperity of our home market and consequently the pros- perity of the manufacturers of America depends upon the buying capacity of the wage-earners of this country in a degree that we have not been wont to measure adequately. So it is hard to believe that in moments of sober reflec- tion the manufacturer of America will begrudge for the wage-earners of America the considerable gain that has ac- crued to at least a very large number of them and their families through their increased income above the actual advance in cost of living during the period of the war. Freak wages growing out of careless setting of high piece rates in cost-plus war work and other such absurdities or blunders, to apply no worse names, will, of course, not stand the light of common sense business and will have to go; and the men who have been the lucky recipients in the past, while quite humanly protesting, will accept the neces- sary situation much as a lucky business man would say 7 good bye to a passing shower of profit. Wage-earners are human and humanly sensible. May Hold Share of World Trade. It may be quite possible by ingenuity, invention and management, through the stimulation to individual produc- tion that naturally accompanies a period of depressed in- dustry, and, most important because as yet quite unmeas- ured, through a careful study of the possibilities of improved industrial relations between management and men, that we may hold our share of the world's trade. It is hard to de- termine what is any nation's just share. Perhaps it is all that it can fairly get, but we surely may assume that in the long run we cannot afford to struggle for trade at the expense of the physical and moral and social development of any group of our population. We know that as citizens of a nation we love and wish to make greater and more powerful in all good lines, industrial managers will unselfishly de- termine, and as shrewd business men in all honorable and far-seeing self-interest will unite, to promote the upgrading of those, who through lack of training, or opportunity, or native ability or because of improper economic methods, have lived under inadequate standards. If need be the op- portunities of the future must now as always, with far-see- ing men, warrant temporary and immediate sacrifice. Food Must Decline Before Wages. When the prices of foodstuffs shall have fallen by the removal of artificial props and through the returned pro- ductivity of various lands at present either wasted by war or handicapped through shortage of laborers or through unwillingness to toil; when abnormal profits and wasteful methods incident to the period of the war have been elim- inated; and when, through a closer co-operation between management and wage-earners, the possibilities of increased production have been secured, the elements that go to make the wage-earner's budget will show an appreciable decrease. Then-and not until then-regulated by the maintenance of general and not class prosperity, should adjustments in 8 wage rates be attempted on the basis of the buying value of the dollar. If the worst comes and, through the pressure of com- petition from abroad, it becomes evident that with all other resources exhausted, general employment and consequently general prosperity can only be maintained by a decline in commodity wage, such further adjustment must necessarily follow. It is necessary to emphasize that until all other expedi- ents are exhausted, the policy of forcing a lower standard of living by reduction of the money wage, while living costs are still approximately at their peak, or at any time to reduce the commodity wage, particularly to do so by arbitrary dis- charge and rehiring or any of the other discredited methods which have at times been more or less common, would be the veriest exhibition of not only injustice, but of folly. It would surely be accompanied by hostility on the part of the great wage-earning community, as well as on the part of the clear-thinking men in the community at large; would be the surest way to increase the power of the demagogue, whether he be politician or unprincipled labor leader; would widen the unfortunate cleavage, which we should be mend- ing instead of spreading, between wage-earners and man- agement; and, at the present crisis when the influenza of Bolshevism is abroad in the world, it would undoubtedly rapidly spread this disease in our own country. It would, in short, be bad morals and bad business. More than once reference has been made above to the increase in production which it is believed would follow improved relations between labor, management and capital. This is a problem that burdens the minds of all sincere students of the ideals that have supported the world war. Many efforts to develop a new democracy of industry are being made in England and serious and promising ventures in this direction are being launched in the United States. The thread of gold that runs through the fabric of all these plans is the recognition of the inherent mutuality of interest of labor and management. These are indispensable one to the other and must come to represent not classes of men, but factors of success often combined in a single indi- vidual. Exploitation of the wage-earner on the one hand 9 or disintegration of management or capital on the other, can in the long run work to the good of none and are destructive of production of goods, which is the basis of our prosperity. Confidence in mutual justice and fair dealing between man and man is bound to open the fountains of effective energy in production as nothing else can do to the unfolding of the greatest material and social prosperity the world has known. Jan. 13, 1919. VIDON COUNCIL 20 TRADES SE, 10 PAMPHLETS Dealing With the Vital Issues of RECONSTRUCTION PUBLIC WORKS OR PUBLIC CHARITY? By Harold G. Moulton Setting forth the necessity of providing buffer employment dur- ing the time of demobilization of soldiers and war workers. RUSSIA IN REVOLUTION By Ralph B. Dennis Being a description of the causes and effects of the upheaval in Russia, and pointing a lesson to thinking people in America. THE WORLD'S NEXT STEP- A LEAGUE OF NATIONS By Clarence L. Speed A study of the natural evolution towards an international organ- ization to make secure the peace of the world. THE BASES OF DURABLE PEACE Five addresses of President Wilson in which the famous "Four- teen Points," and the other requirements for ending the war, accepted by the Germans when they signed the armistice, are included. These pamphlets may be had singly or in quantities at the following prices, delivery prepaid: Single copy, 5c; 100 copies, $2.00; 1,000 copies, $10.00. Printed by WAR COMMITTEE THE UNION LEAGUE CLUB OF CHICAGO И. US(19134921 (ulelor) Sec. , The Bases of Lasting Peace As Voiced By President Wilson S I. America's Purpose: International Justice and World Peace at New York, 27 September, 1918. II. The 14 Points of 8 January, 1918. III. The Four Cardinal Principles of 11 February, 1918. IV. Force to the Utmost-at Baltimore, 6 April, 1918. V. The Four War Aims-Mt. Vernon, 4 July, 1918. THE UNION LEAGUE CLUB OF CHICAGO 1918 Resolutions Anent President Wilson's New York Address of 27 September, 1918, Adopted by the War Committee of the Union League Club of Chicago, October 3, 1918. R EALIZING the scope and implications of President Wilson's statement of the war policies of the United States in his New York address of 27 September, 1918, and that no such sweeping and searching declaration of purpose in regard to the relations of nations to one another has ever before been made by the responsible head of a powerful nation in a time of world crisis and readjustment; Recalling that many of the wars that have devastated Europe in the past have had their roots in unjust conditions created or acquiesced in by treaties of peace that ignored the rights of peoples; Bearing in mind that this shocking war, that has finally involved the United States, has its causes in deep-seated injustice imbedded in existing European conditions and in the purpose of the Central Fowers to perpetrate yet further injustice at the expense of neigh- boring nations assumed to be helpless; Seeing clearly that war can no longer be easily localized in a world of closely knit international relations and that, only through the establishment of substantial justice between the peoples of the world, can we in the United States hope, henceforth, to find peace for ourselves; And believing that the principles, so nobly conceived and so clearly set forth by the President, will, if put into effect by our Allies and ourselves, go far toward lifting from the world the nightmare of war and the social and economic burdens that it entails and will set free men's hands and minds and spirits for the nobler tasks of peace; We, the War Committee of the Union League Club of Chicago, hereby record our whole-hearted concurrence in the President's declaration of principles, and we pledge our best endeavors to the end that, so far as lies in the will and act of the United States, peace, when attained, shall not once more involve the bartering away of the rights of peoples in the interest of dynasties or of powerful states or groups of states, but shall square with the President's solemn declaration. America's Purpose The Establishment of Justice Between the Nations- New York Address of 27 September, 1918. M Y Fellow-Citizens: I am not here to promote the loan. That will be done-ably and enthusiastically done- by the hundreds of thousands of loyal and tireless men and women who have undertaken to present it to you and to our fellow-citizens throughout the country; and I have not the least doubt of their complete success; for I know their spirit and the spirit of the country. My confi- dence is confirmed, too, by the thoughtful and experienced co-operation of the bankers here and everywhere, who are lending their invaluable aid and guidance. I have come, rather, to seek an opportunity to present to you some thoughts which I trust will serve to give you, in perhaps fuller measure than before, a vivid sense of the great issues involved, in order that you may appreciate and accept with added enthusiasm the grave significance of the duty of supporting the government by your men and your means to the utmost point of sacrifice and self-denial. No man or woman who has really taken in what this war means can hesitate to give to the very limit of what they have; and it is my mission here tonight to try to make it clear once more what the war really means. You will need no other stimulation or reminder of your duty. At every turn of the war we gain a fresh consciousness. of what we mean to accomplish by it. When our hope and expectation are most excited we think more definitely than before of the issues that hang upon it and of the purposes which must be realized by means of it. For it has positive and well-defined purposes which we did not determine and which we cannot alter. No statesman or assembly created them; no statesman or assembly can alter them. They have arisen out of the very nature and circumstances of the war. The most that statesmen or assemblies can do is to carry them out or be false to them. They were perhaps not clear at the outset; but they are clear now. The war has lasted more than four years and the whole world has been drawn into it. 3 Mankind's Common Will Rules. The common will of mankind has been substituted for the particular purpose of individual states. Individual statesmen may have started the conflict, but neither they nor their opponents can stop it as they please. It has become a peoples' war, and peoples of all sorts and races, of every degree of power and variety of fortune, are involved in its sweeping processes of change and settlement. We came into it when its character had become fully defined and it was plain that no nation could stand apart or be indifferent to its outcome. Its challenge drove to the heart of every- thing we cared for and lived for. The voice of the war had become clear and gripped our hearts. Our brothers from many lands, as well as our own murdered dead under the sea, were calling to us, and we responded, fiercely and of course. The air was clear about us. We saw things in their full, convincing proportions as they were; and we have seen them with steady eyes and unchanging comprehension ever since. We accepted the issues of the war as facts, not as any group of men either here or elsewhere had defined them, and we can accept no outcome which does not squarely meet and settle them. Five Issues of the War. Those issues are these: ܀ Shall the military power of any nation or group of nations be suffered to determine the fortunes of peoples over whom they have no right to rule ex- cept the right of force? Shall strong nations be free to wrong weak nations and make them subject to their purpose and interest? Shall peoples be ruled and dominated, even in their own internal affairs, by arbitrary and irre- sponsible force or by their own will and choice? Shall there be a common standard of right and privilege for all peoples and nations or shall the strong do as they will and the weak suffer without redress? Shall the assertion of right be haphazard and by casual alliance or shall there be a common con- cert to oblige the observance of common rights? 4 G No man, no group of men, chose these to be the issues of the struggle. They are the issues of it; and they must be settled-by no arrangement or compromise or ad- justment of interests, but definitely and once for all and with a full and unequivocal acceptance of the principle that the interest of the weakest is as sacred as the interest of the strongest. What Permanent Peace Means. This is what we mean when we speak of a permanent peace, if we speak sincerely, intelligently, and with a real knowledge and comprehension of the matter we deal with. We are all agreed that there can be no peace obtained by any kind of bargain or compromise with the governments of the Central Empires, because we have dealt with them already and have seen them deal with other governments that were parties to this struggle, at Brest-Litovsk and Bucharest. They have convinced us that they are without honor and do not intend justice. They observe no cove- nants, accept no principle but force and their own interest. We cannot "come to terms" with them. They have made. it impossible. The German people must by this time be fully aware that we cannot accept the word of those who forced this war upon us. We do not think the same thoughts or speak the same language of agreement. It is of capital importance that we should also be ex- plicitly agreed that no peace shall be obtained by any kind of compromise or abatement of the principles we have avowed as the principles for which we are fighting. There should exist no doubt about that. I am, therefore, going to take the liberty of speaking with the utmost frankness about the practical implications that are involved in it. If it be indeed and in truth the common object of the governments associated against Germany and of the nations whom they govern, as I believe it to be, to achieve by the coming settlements a secure and lasting peace, it will be necessary that all who sit down at the peace table shall come ready and willing to pay the price, the only price, that will procure it; and ready and willing, also, to create in some virile fashion the only instrumentality by which it can be made certain that the agreements of the peace will be honored and fulfilled. in 5 Impartial Justice Must Be Done. That price is impartial justice in every item of the set- tlement, no matter whose interest in crossed; and not only impartial justice, but also the satisfaction of the several peoples whose fortunes are dealt with. That indispensable instrumentality is a League of Nations formed under cove- nants that will be efficacious. Without such an instru- mentality, by which the peace of the world can be guaran- teed, peace will rest in part upon the word of outlaws, and only upon that word. For Germany will have to redeem her character, not by what happens at the peace table, but by what follows. And, as I see it, the constitution of that League of Nations and the clear definition of its objects must be a part, is in a sense the most essential part, of the peace settlement itself. It cannot be formed now. If formed now, it would be merely a new alliance confined to the nations associated against a common ency. is not likely that it could be formed after the selli ! s necessary to guarantee guaranteed as an after- the peace; and the pen thought. The reason. in terms again, why it must be guaranteed is the will be parties to the peace whose promises have proved untrustworthy, and means. must be found in connection with the peace settlement itself to remove that source of insecurity. It would be folly to leave the guarantee to the subsequent voluntary action of the governments we have seen destroy Russia and deceive Rumania. J ? C t Five Particulars of Settlement. But these general terms do not disclose the whole mat- ter. Some details are needed to make them sound less like a thesis and more like a practical program. These, then, are some of the particulars, and I state them with the greater confidence because I can state them authoritatively as repre- senting this government's interpretation of its own duty with regard to peace: First, the impartial justice meted out must in- volve no discrimination between those to whom we wish to be just and those to whom we do not wish to be just. It must be a justice that plays no favorites and knows no standard but the equal rights of the several peoples concerned; 6 Second, no special or separate interest of any single nation or any group of nations can be made the basis of any part of the settlement which is not consistent with the common interest of all; Third, there can be no leagues or alliances or special covenants and understandings within the general and common family of the League of Nations; Fourth, and more specifically, there can be no special, selfish economic combinations within the league and no employment of any form of economic boycott or exclusion except as the power of eco- nomic penalty by exclusion from the markets of the world may be vested in the League of Nations itself as a means of discipline and control; Fifth, all international agreements and treaties of every kind must be made known in their en- tirety to the rest of the world. - Must Exclude Special Alliances. Special alliances and economic rivalries and hostilities have been the prolific source in the modern world of the plans and passions that produce war. It would be an in- sincere as well as an insecure peace that did not exclude. them in definite and binding terms. The confidence with which I venture to speak for our people in these matters does not spring from our traditions merely and the well-known principles of international action which we have always professed and followed. In the same sentence in which I say that the United States will enter into no special arrangements or understandings with par- ticular nations, let me say also that the United States is pre- pared to assume its full share of responsibility for the main- tenance of the common covenants and understandings upon which peace must henceforth rest. We still read Washing- ton's immortal warning against "entangling alliances" with full comprehension and an answering purpose. But only special and limited alliances entangle; and we recognize and accept the duty of a new day in which we are permitted to hope for a general alliance which will avoid entangle- ments and clear the maintenance of common rights. I have made this analysis of the international situation which the war has created, not, of course, because I doubted 7 J whether the leaders of the great nations and peoples with whom we are associated were of the same mind and enter- tained a like purpose, but because the air every now and again gets darkened by mists and groundless doubtings and mis- chievous perversions of counsel and it is necessary once and again to sweep all the irresponsible talk about peace in- trigues and weakening morale and doubtful purpose on the part of those in authority utterly, and if need be uncere- moniously, aside and say things in the plainest words that can be found, even when it is only to say over again what has been said before, quite as plainly if in less unvarnished terms. Responds to the Issues of War. As I have said, neither I nor any other man in govern- mental authority created or gave form to the issues of this war. I have simply responded to them with such vision as I could command. But I have responded gladly and with a resolution that has grown warmer and more confident as the issues have grown clearer and clearer. It is now plain that they are issues which no man can pervert unless it be willfully. I am bound to fight for them, and happy to fight for them as time and circumstance have revealed them to me as to all the world. Our enthusiasm for them grows more and more irresistible as they stand out in more and more vivid and unmistakable outline. And the forces that fight for them draw into closer and closer array, organize their millions into more and more un- conquerable might, as they become more and more distinct to the thought and purpose of the peoples engaged. It is the peculiarity of this great war that while statesmen have seemed to cast about for definitions of their purpose and have sometimes seemed to shift their ground and their point of view, the thought of the mass of men, whom statesmen are supposed to instruct and lead, has grown more and more unclouded, more and more certain of what it is that they are fighting for. National purposes have fallen more and more into the background and the common purpose of en- lightened mankind has taken their place. The counsels of plain men have become on all hands more simple and straightforward and more unified than the counsels of sophisticated men of affairs, who still retain the impression. that they are playing a game of power and playing for high 8 stakes. That is why I have said that this is a peoples' war, not a statesmen's. Statesmen must follow the clarified com- mon thought or be broken. Glad to State War Aims. I take that to be the significance of the fact that as- semblies and associations of many kinds made up of plain workaday people have demanded, almost every time they came together, and are still demanding, that the leaders of their governments declare to them plainly what it is, exactly what it is, that they are seeking in this war, and what they think the items of the final settlement should be. They are not yet satisfied with what they have been told. They still seem to fear that they are getting what they ask for only in statesmen's terms-only in the terms of territorial arrange- ments and divisions of power, and not in terms of broad- visioned justice and mercy and peace and the satisfaction of those deep-seated longings of oppressed and distracted men and women and enslaved peoples that seem to them the only things worth fighting a war for that engulfs the world. Perhaps statesmen have not always recognized this changed aspect of the whole world of policy and action. Perhaps they have not always spoken in direct reply to the questions asked because they did not know how searching those questions were and what sort of answers they demanded. But I, for one, am glad to attempt the answer again and again, in the hope that I may make it clearer and clearer that my one thought is to satisfy those who struggle in the ranks and are, perhaps above all others, entitled to a reply whose meaning no one can have any excuse for misunder- standing, if he understands the language in which it is spoken or can get someone to translate it correctly into his own. And I believe that the leaders of the governments with which we are associated will speak, as they have occa- sion, as plainly as I have tried to speak. I hope that they will feel free to say whether they think that I am in any degree mistaken in my interpretation of the issues involved or in my purpose with regard to the means by which a satis- factory settlement of those issues may be obtained. Unity of purpose and of counsel are as imperatively necessary in this war as was unity of command in the battlefield; and with perfect unity of purpose and counsel will come assur- ance of complete victory. It can be had in no other way. 9 "Peace drives" can be effectively neutralized and silenced only by showing that every victory of the nations associated against Germany brings the nations nearer the sort of peace which will bring security and reassurance to all peoples and make the recurrence of another such struggle of pitiless force and bloodshed forever impossible, and that nothing else can. Germany is constantly intimating the "terms" she will accept; and always finds that the world does not want terms. It wishes the final triumph of justice and fair dealing. 10 The 14 Points (From the Message to Congress of 8 January, 1918.) I. Open covenants of peace, openly arrived at, after which there shall be no private international understandings of any kind, but diplomacy shall proceed always frankly and in the public view. II. Absolute freedom of navigation upon the seas, outside territorial waters, alike in peace and in war, except as the seas may be closed in whole or in part by international action for the enforcement of international covenants. III. The removal, so far as possible, of all economic barriers and the establishment of an equality of trade conditions among all the nations consenting to the peace and associating themselves for its maintenance. IV. Adequate guaranties given and taken that national armaments will be reduced to the lowest point consisting with domestic safety. V. A free, open-minded and absolutely impar- tial adjustment of all colonial claims, based upon a strict observance of the principle that in determining all such questions of sovereignty the interests of the populations concerned must have equal weight with the equitable claims of the government whose title is to be determined. Evacuation of Russia Necessary. VI. The evacuation of all Russian territory and such a settlement of all questions affecting Russia as will secure the best and freest co-operation of the other nations of the world in obtaining for her an unhampered and unembarrassed opportunity for the independent determination of her own political development and national policy and assure her of a sincere welcome into the society of free nations un- der institutions of her own choosing; and, more than a welcome, assistance also of every kind that she may need and may herself desire. The treat- ment accorded Russia by her sister nations in the - 11 months to come will be the acid test of their good will, of their comprehension of her needs as dis- tinguished from their own interests, and of their intelligent and unselfish sympathy. VII. Belgium, the whole world will agree, must be evacuated and restored, without any attempt to limit the sovereignty which she enjoys in common with all other free nations. No other single act will serve as this will serve to restore confidence among the nations in the laws which they have themselves set and determined for the government of their re- lations with one another. Without this healing act the whole structure and validity of international law is forever impaired. VIII. All French territory should be freed and the invaded portions restored and the wrong done to France by Prussia in 1871 in the matter of Alsace- Lorraine, which has unsettled the peace of the world for nearly fifty years, should be righted in order that peace may once more be made secure in the interest of all. IX. A readjustment of the fontiers of Italy should be effected along clearly recognizable lines of nationality. Must Free Oppressed Nationalities. X. The peoples of Austria-Hungary, whose place among the nations we wish to see safeguarded and assured, should be accorded the freest oppor- tunity of autonomous development.* XI. Rumania, Serbia and Montenegro should be evacuated; occupied territories restored; Serbia accorded free and secure access to the sea; and the relations of the several Balkan states to one another determined by friendly counsel along historically established lines of allegiance and nationality; and international guaranties of the political and eco- nomic independence and territorial integrity of the several Balkan states should be entered into. *The tenth point was superseded by a demand for actual freedom and not mere autonomy for the oppressed nationalities of Austria-Hungary in the President's reply of 19 October, 1918, to the Austrian request for an armistice. This said: "The President is, therefore, no longer at liberty to accept mere autonomy for these peoples as a basis of peace." "" 12 XII. The Turkish portions of the present Otto- man Empire should be assured a secure sovereignty, but the other nationalities which are now under Turkish rule should be assured an undoubted secur- ity of life and an absolutely unmolested opportunity of autonomous development, and the Dardanelles should be permanently opened as a free passage to the ships and commerce of all nations under inter- national guaranties. XIII. An independent Polish state should be erected which should include the territories inhab- ited by indisputably Polish populations, which should be assured a free and secure access to the sea and whose political and economic independence and territorial integrity should be guaranteed by inter- national covenant. XIV. A general association of nations must be formed under specific covenants for the purpose of affording mutual guaranties of political independ- ence and territorial integrity to great and small states alike. The Four Cardinal Principles (From the Message to Congress of 11 February, 1918.) That each part of the final settlement must be based upon the essential justice of that particu- lar cause and upon such adjustments as are most likely to bring a peace that will be permanent. I. II. That peoples and provinces are not to be bartered about from sovereignty to sovereignty as if they were mere chattels and pawns in a game, even the great game, now forever discredited, of the bal- ance of power; but that, III. Every territorial settlement involved in this war must be made in the interest and for the benefit of the populations concerned, and not as a part of any mere adjustment or compromise of claims among rival states; and, IV. That all well defined national aspirations shall be accorded the utmost satisfaction that can be 13 accorded them without introducing new or perpetu- ating old elements of discord and antagonism that would be likely in time to break the peace of Europe and consequently of the world. Force to the Utmost (From the reply to Von Hertling and Count Czernin at Baltimore, 6 April, 1918.) There is, therefore, but one response possible from us-force; force to the utmost, force without stint or limit, the righteous and triumphant force which shall make right the law of the world and cast every selfish dominion down in the dust. The Particulars of Justice (From the Mt. Vernon Speech of 4 July, 1918.) I. The destruction of every arbitrary power any- where that can separately, secretly, and of its single choice disturb the peace of the world; or, if it cannot be presently destroyed, at the least its re- duction to virtual impotence. II. The settlement of every question, whether of territory, of sovereignty, of economic arrange- ment, or of political relationship, upon the basis of the free acceptance of that settlement by the people immediately concerned, and not upon the basis of the material interest or advantage of any other na- tion or people which may desire a different settle- ment for the sake of its own exterior influence or mastery. III. The consent of all nations to be governed in their conduct towards each other by the same principles of honor and of respect for the common law of civilized society that govern the individual citizens of all modern states in their relations with one another; to the end that all promises and cove- nants may be sacredly observed, no private plots or 14 conspiracies hatched, no selfish injuries wrought with impunity, and a mutual trust established upon the handsome foundation of a mutual respect for right. IV. The establishment of an organization of peace which shall make it certain that the combined power of free nations will check every invasion of right and serve to make peace and justice the more secure by affording a definite tribunal of opinion to which all must submit and by which every interna- tional readjustment that cannot be amicably agreed upon by the peoples directly concerned shall be sanctioned. Copies may be obtained of the War Committee of the Union League Club of Chicago, at the following prices, delivery prepaid: Single copies One hundred copies.. One thousand copies... ZemlWalmoured 20 • 5 cents $2.00 10.00 15 Pamphlets on Pressing War Issues Printed by The War Committee of the Union League Club of Chicago Three pamphlets dealing with the business situation in war time UNUSUAL BUSINESS NOT BUSINESS AS USUAL By Harold G. Moulton A pamphlet dealing with the necessity of putting war work ahead of private work. 15 pages. YOUR BUSINESS AND WAR BUSINESS By Harold G. Moulton A pamphlet telling manufacturers how they may adjust their business to the needs of the nation at war. 23 pages. THE DUTY OF THE CONSUMER IN WAR TIME By Harold G. Moulton In which the duty of everyone to economize and forego luxuries in order that the Government may not lack for labor and supplies, is forcefully pointed out. 16 pages. These business pamphlets may be had singly or in quantities at the follow- ing prices: Single copy, 5c; 100 copies, $2.00; 1000 copies, $10.00. Two pamphlets dealing with vital war questions WHY WE FIGHT By Clarence L. Speed In which the reasons which forced America into the war are pointed out. 28 pages. Single copy, 5c; 100 copies, $2.00; 1000 copies, $10.00. OUR PERIL ON THE EASTERN FRONT By Clarence L. Speed Showing the danger to America and the world which would result from a premature peace, leaving conquests in the East in German hands. 22 pages, with nationality map of Middle Europe. Single copy, 5c; 100 copies, $2.00; 1000 copies, $15.00. Leaflets for quantity distribu- tion in factories and elsewhere OUR PERIL ON THE EASTERN FRONT By Clarence L. Speed A study of the Eastern situation in shorter form. THEIR JOB AND OURS By Clarence L. Speed Showing the necessity of working at home like our soldiers in France fight. Chicago THE, UNION LEAGUE CLUB: J ITS UNDERLYING PURPOSE To the members of the Union League Club: O NE of the proposed amendments to the by-laws, which will come before the Club for action at the annual meeting on March 25, will, if adopted, create a new standing committee to be known as the Public Affairs Committee. Inasmuch as the creation of this new Committee will auto- matically terminate the existence of the stand- ing Committee on Political Action and of the special War Committee, the undersigned, con- stituting the entire membership of the Political Action and War Committees, deem it fitting to submit to the Club members the following W statement: There would never have been a "Union League Club of Chicago" if the founders of the Club had merely sought to create an organization whose sole or chief function should be to minister to the creature comfort of its members. It goes without saying that, in organizing the Club, the founders intended to provide a place in which the members and their guests could find facilities for crea- ture comfort, and in which they could find companionship and freedom from the elbow- ing of restaurants and other gathering places. But that these facilities were only subsidiary to another and more commanding purpose is clearly written in the declarations of the ܕ "Articles of Association" which, ignoring all other objects, set forth the primary objects of the Club in terms of the obligations of citizenship. Clearly, in their thought, the Club, as a place for recreation, was only a body for the housing of an indwelling spirit-the spirit of devotion to and conscious effort for the pro- tection and upbuilding of that democratic social order to which our republic is dedicated. And so it came about that the founders established not a mere club with any handy sort of name drawn from literature or from local tradition and pride, but a Union League Club charged with a public trust and with a clear-cut obligation in regard thereto. And so also it came about that the found- ers of the Club instituted a Political Action Committee whose duty it should be to rec- ommend to the Club any subject of discus- sion or any political action which seemed to be advisable. And to emphasize the fact that this Political Action Committee had a defi- nite, continuing, vital function to perform in the life of the Club and that it was not to be regarded as merely a casual adjunct to the Board of Managers, the by-laws made the Political Action Committee an elective body with co-ordinate rank and self-directing power. And further to emphasize the impor- tance attached to the Political Action Com- mittee and to guarantee it an independent status, the by-laws made it obligatory on the Board of Managers to appropriate to the uses of the Committee three per cent of the amount of the annual dues. The Political Action Committee, over and above conducting exercises on the anniver- sary of Washington's birthday, has from time to time undertaken various specific activities. Such as for instance: Aiding in bringing about the detection and prosecution of fraudulent voting in the First ward. Conducting a speaking campaign to bring about the adoption by Chicago, on referen- dum, of the present merit civil service law. Urging upon the Board of Education that it adopt the procedure of appointing a Super- intendent of Schools only after obtaining the best possible expert advice. Creditable as these other activities of the Committee have been, there must have arisen in the minds of the founders a certain degree of disappointment at the comparative inertia of the Committee. Certain it is that such a sense of disappointment has been felt and voiced by many members during the past twenty years and by not a few who have themselves served on the Committee. Whatever may be the full explanation of the Committee's comparative ineffectiveness, the explanation may perhaps be found chiefly in two facts: First-the funds appropriated to Committee uses under the by-laws, and to which the Committee has by custom lim- ited itself, are insufficient even to permit the Committee to maintain a diligent, expert secretarial staff, and without such a staff busy men will not continuously devote the re- quired time to such Committee service. Nor, had the Committee seen fit to try to create such a staff, would it have had left any ade- quate sum for educational or other form of concrete activity. Second-whatever by de- rivation may be the full import of the words, "political" and "politics," usage has tended to limit the significance of the word "politi- cal," until the average man thinks of it as having to do only with the programs and activities of political parties as such. And the consequence has occasionally been that, when some matter of great and immediate public moment was suggested to the P. A. C. for discussion or action, the proposition was met by the paralyzing claim of "ultra vires" as not being a "political" question. The suggested change in name should obviate any possible misunderstanding of the scope of work of the Committee and open to it naturally the door to the activity that the founders beyond peradventure intended to open. The increase in the number of the Committee from nine to fifteen, bringing it back to the size at which it started when the Club was founded, makes possible a more representative cross-section of the Club and allows of creating working sub-committees that will not altogether overburden the mem- bers. Carrying over to the new P. A. C. the method of obtaining working funds by the voluntary contributions of Club members who are interested in the work in hand- which was inaugurated by the War Com- mittee and has latterly been followed by the Political Action and War Committees acting jointly—will enable the new Committee to C maintain a competent staff and do effective public work. As to the method of naming the person- nel of the Committee, the method which has been followed in the past did undeniably give character and status to the Committee. In practice, however, some objections have been raised to the working out of the method. It has been strongly urged that under the present procedure an elective committee ar- rives at decisions without concurrent action. by the Board of Managers, and that the Board and more particularly the officers of the Club are occasionally placed in the position of hav- ing to assist in carrying out programs in whose origins they have had little part and are some- times, it is claimed, held responsible in the public eye for decisions in which they do not fully sympathize. Pag pa >>>> assume. For, in all soberness, we must clearly realize that if Democracy is to justify itself in oper- ation, there must be continuous, wise, public- spirited leadership by those groups in each community whose broader education, variety and depth of experience in life and compar- ative leisure for reading, travel and thought fit them to help educate and guide their less fortunately situated fellows. What Democracy may mean without competent leadership, the pathetic situation in Russia and the floundering in Germany It is believed that whatever is sound in disclose only too well. Our immigration for the suggestion of the desirability of a greater several decades past (and we say this without degree of co-ordination between the Board any intention to disparage the racial stocks and the P. A. C. may be accomplished and their potentialities) has been from quar- through the change in the by-laws now pro- ters where education-whether by books or posed; while at the same time it is believed by political opportunity-has been regret- that the initiative and immediate responsi- ably scant. Under our system these peoples become part and parcel of our social, eco- nomic and political life. One will not be charged by any thoughtful observer of Amer- ican life with being an alarmist or a pessimist, bility of the Committee will not be lessened. On the other hand it is quite clear that neither the Board as a whole, nor any Com- mittee made up wholly of members of the Board, can perform the tasks that the Board and its Committees must perform and still have, in addition, sufficient time for the ini- tiative and the deliberations absolutely essen- tial to vigorous and wise P. A. C. action. The proposed method places the appoint- ment of the Committee in the hands of the Club President with the approval of the Board; but the selection is made from the whole body of the Club membership, irrespective of whether or not a person designated hap- pens to be or not to be a member of the Board of Managers. And while each incom- ing President, by virtue of the fact that he names a majority of the Committee, includ- ing therein its Chairman, has the power to direct in a general way the course of the Committee, seven of the fifteen hold over and make possible a continuity of purpose and program which is of the utmost impor- tance if the Committee is to meet success- fully its share of the community burden that this Club through its Committe should - - if he emphasizes the gravity of the issues by which we in America-we here in Chi- cago-are confronted at this time. The Union League Club, by virtue of the opportunities that have come to its member- ship, is one of those groups which owe to the community intelligent, high - minded leadership. The community which has given us our opportunities has a right to ex- pect from this Club a return in loyalty and devotion—not loyalty to some issue now no longer vital, not devotion to an idea now BRITTON I. BUDD ROBERT W. CHILDS MARK W. CRESAP O. C. DOERING SAMUEL O. DUNN BERNARD FLEXNER CHARLES W. FOLDS STEPHEN A. FOSTER JOHN F. GILCHRIST MARTIN M. GRIDLEY WALTER D. HERRICK accepted by all and become a memory, but loyalty and devotion to our country in the trying issues that now confront us. It is in the hope and expectation that the Union League Club will in its acts today be true to the tradition founded on its acts of yesterday, that we support the proposed amendment to the by-laws, believing that it will strengthen the hands of the Com- mittee which was designed to translate into terms of public leadership the ideals and purposes on which the Club was founded. Chicago, 15 March, 1919 H. H. HILTON MORTON D. HULL F. B. JOHNSTONE EDWIN S. MILLS CHARLES M. MODERWELL JOHN V. NORCROSS ALLEN B. POND A. D. SHERIDAN E. M. SKINNER GRAHAM TAYLOR CHAS. P.WHITNEY Constituting the entire membership of the Political Action Committee and the War Committee - ་ A PLEA FOR DEPORTATION OF ALIEN ENEMIES NOW INTERNED BY THE UNITED STATES WAR COMMITTEE THE UNION LEAGUE CLUB OF CHICAGO Rokfelghat SIGNÁLÓMONTSERRA COMPAN : KAREN PLEASE Explanation CTING upon instructions of the War Committee of the Union League Club, its secretary, Allen B. Pond, on December 4, 1918, wrote to Thomas Watt Gregory, Attorney General of the United States, asking how many persons had been interned as dangerous alien enemies, whether they were under the jurisdiction of the State Department or the Department of Justice, and what program, if any, the Government has as to the disposition of them on the conclusion of peace. Mr. Gregory, on December 7, replied that the interned alien enemies are under the jurisdiction of the Department of Justice in the sense that it has the right to order their arrest and internment, and may release an alien enemy on parole after he has been interned. He regretted that the question as to the number interned could not be disclosed at this time, and said that the question of the disposal of interned persons was under consideration, but that no decision had been reached. The War Committee, at its meeting of December 19, 1918, expressed its belief that persons interned as dangerous alien enemies should be deported at the close of the war as undesirables, and instructed its secretary to write to the Attorney General to this effect. The accompanying letter has, therefore, been forwarded to Attorney General Gregory, and also to the members of the Congressional Committee on Military Affairs, before whom, we are advised, legislation authorizing such deportation is now pending. The Military Affairs Committee is constituted as follows: House of Representatives S. HUBERT DENT, JR. WILLIAM J. FIELDS PERCY E. QUIN WILLIAM GORDON ASHTON C. SHALLENBERGER KAT CHAS. POPE CALDWELL JAMES W. WISE RICHARD OLNEY SAMUEL J. NICHOLLS THOMAS W. HARRISON DANIEL E. GARRETT GEORGE R. LUNN JULIUS KAHN DANIEL R. ANTHONY, JR. JOHN C. MCKENZIE FRANK L. GREENE JOHN M. MORIN JOHN Q. TILSON THOMAS S. Crago HARRY E. HULL J. KUHIO KALANIANAOLE DEČAKAN APPROAC Senate GEORGE E. CHAMBERLAIN GILBERT M. HITCHCOCK DUNCAN U. FLETCHER HENRY L. MYERS CHARLES S. THOMAS MORRIS SHEPPARD J. C. W. BECKHAM WILLIAM F. KIRBY JAMES A. REED KENNETH MCKELLAR HOKE SMITH FRANCIS E. WARREN JOHN W. WEEKS JAMES W. WADSWORTH, JR. HOWARD SUTHERLAND HARRY S. NEW JOSEPH S. FRELINGHUYSEN HIRAM W. JOHNSON PHILANDER C. KNOX TagN Santa Cata Thomas Watt Gregory, Esq. Attorney General of the United States Washington, D. C. Dear Sir: OUTINEREA AKAN TET TALUNIEGULACJenak Referring again to the question as to the disposition of interned alien enemies after the conclusion of peace (see my letter of 4 December and your reply J. M. M. 9-16-12-1454 of 7 December, 1918)—it is the judgment of the War Committee of the Union League Club of Chicago that these persons should be deported from the United States when released from internment and that they should not at a subsequent time be allowed to take up a residence or to sojourn or travel in the United States. Our reasons for this judgment are briefly these: First Persons of their sort, and presumptively in many instances these very persons, prior to our entry into the war and even prior to August, 1914, were engaged in the effort to estrange our people from the people of foreign countries-notably of England, Japan, Mexico and South American states. Unhappily such efforts met with a measure of success. Dagmar delicat Second Similarly there was an effort by persons attached to the interests of the Central Powers to break down in the United States that solidarity of sentiment, purpose and culture which is of fundamental importance in the successful conduct of a democratic state. There is no reasonable doubt that many of the interned aliens took part in this work of under- mining American solidarity. Third It is reasonable to believe that Germany and those peoples of the former Austro-Hungarian Empire that were in accord with her are not going to be made over mentally and spiritually for a generation or and it is reasonable to expect that their devotees in the United States will again take up their propaganda to alienate the United States from its former allies. more; BESOCERYMPERDIDO, Fourth The interned aliens are persons who were quite definitely proved to be dangerous to this country during the war and they will KJARNAN MANSON SANA PREDA 1, 2 MONROCE ATAONEKANANJA Camo S PRAGTEIKŠANAI. PATRIC * beyond doubt be ready aids in the propaganda that the Central Powers will surely seek to carry on again. Fifth The acts which led to the interning of these aliens are in themselves sufficient justification for their deportation. The knowledge that we have gained of the lengths to which the German propaganda has gone gives added ground for the exclusion of these people who have never seen fit to transfer their obligations to the United States and who betrayed our hospitality in our time of trial. If legislation is required in order that this group may be deported, it is our judgment that such legislation should be sought. The educational propaganda work of the War Committee of the Union League Club was, in the first instance and from time to time thereafter, directed to people of German ancestry; and this has served to direct our attention more particularly to the danger to the United States that lurks in the pro-German devotion of many in the alien group. Respectfully yours, WAR COMMITTEE BY ALLEN B. POND Secretary Chicago, December 20, 1918 E : To the Members of the Union League Club of Chicago The War Committee of the Union League Club, having scanned the field and weighed many possible opportunities for fruitful service, has been confirmed in its early impression that educational propaganda is still the most practicable field for the chief work of the Committec. It is indeed becoming increasingly evident that the successful and rapid prosecution of he war depends for us quite as much on the ready and intelligent co-operation of every section of a united and steadfast people as it does on the wisdom and administrative efficiency of our government at Washington. 1 This indispensable intelligent co-operation must be based on an informed public opinion. Such a pub- lic opinion must be founded on a deeper and clearer understanding of the underlying causes of the war, of the ambitions and plans of those groups in Germany that control German opinion and policy and that de- liberately brought on the war. Such a public opinion will stand out sharply against the background of a bitter comprehension of the way in which Imperial Germany has cast to the winds the whole fabric of international morality and the slowly built-up brotherliness of our boasted Christian Civilization. Such a public opinion will have its roots in a keen realization that peace for us hereafter is indissolubly linked up with the nature of the adjustments that are made after the war in what, at first, appeared to many of us to be purely local European matters-matters in which we had no immediate and vital concern. Such a public opinion, based on such knowledge as this, will set its face as a flint against specious pro- posals of peace and will not allow its own war-wcari- ness to lead it to seek or to acquiesce in a premature peace that will leave the Prussian oligarchs with en- larged political advantages that will, after a few decades make them stronger than before and will en- able them to carry out the threat, already being made by leaders of German thought, that the next time Imperial Germany takes the world by the throat she will have a strangle hold. Your Committee is carrying on its propaganda by the distribution of pamphlets, by furnishing ma- terial to newspapers and by securing an audience for speakers who have an important war message to de- liver. A considerable number of pamphlets-mono- graphs, reprinted addresses and the like-have been and are being prepared and issued by various organi- zations and individuals, including the Government Committee on Public Information. Many of these documents are suitable without change for the ob- jects your Committee has in view. In no case has the distributing machinery been equal to the need; and in many cases the supply of documents is limited by the inability of the original printers to meet the demand. This last is particularly true in the case of some of the most valuable publications of the gov- crnment committee above referred to. We are ad- vised that there is no possible danger of any serious duplication of distribution. ; The Committee will, if the requisite funds are forthcoming, cause documents to be prepared and printed to meet certain conditions not met by any available existing material. The Committee proposes to reach the following groups; chiefly in this immediate vicinity: a-The membership of the Union League Club- to the end that every member may become, as he should, a well-advised and intelligent leader of public opinion. b-People of German origin, both citizens and aliens. c-The laboring classes, who have or conceive that they have certain peculiar interests not neces- sarily identical with the interests of other groups in this community. d-Certain employed and middle class groups not so likely as some other groups to have ready access to the sort of documents and data that your Com- mittce regards as specially important. In pursuance of this policy the Committee has already caused the insertion of matter in the three largest German language newspapers during a series of months, being nearly 2½ million issues. It has printed and mailed some 95,000 copies of each of two documents to one of the groups above referred to, and it proposes to send other documents to the same group. It proposes to send some 200,000 copies of certain other documents to another of the groups. It proposes to distribute large numbers of yet other documents to still other groups. The distribution will be in part by mail, as in the case of the 95,000 copies above referred to,-in part by the use of public library and school facilities- each of these affording a way to reach the parents. through the children—and in part through the secre- taries of certain organized groups. In its work of distribution your Committee is co-operating with the Washington Committee and with the Committee of the State Council of Defense, and is securing the advice of the best posted leaders of some of the groups that it desires to reach. It is not emphasizing its own agency when it seems probable that some other visible agency will be more effective than its own. In planning its work-both as to groups to be reached and as to subject matter-your Committee has sought and is constantly availing itself of the best obtainable expert opinion. In addition to its educational work, the War Committee has agreed to co-operate with the Com- mercial Club and the Chicago Club in defraying for one year the operating expense of the Club for Sol- diers and Sailors that is soon to be opened at Nos. 205-07 West Washington Street. The purpose of this club is to provide, in a centrally located downtown place, a club which any and all soldiers and sailors, passing through or stationed near Chicago, may call their own and where, without payment of dues, they may enjoy in a wholesome environment the privi- leges that a men's club usually offers. We wan our enlisted men to conduct themselves in manl fashion and to avoid the evils that historically dog the footsteps of the soldier and that often carry in their train ills quite as serious as those that are in- curred on the field of battle. It is for us to give these young men the chance to escape the traps that a great city sets for the feet of young men oft duty and with no decent, lounging place. No wiser. no kinder thing can be done by us who once were young than to give our hearty support to this enter- prise. The scope of the needed work along the lines that the Committee has mapped out is practically limited only by the funds available. To carry out effectively the work which the Committee regards as of prime and immediate importance will require some $150,000 in the next six or eight months. Members of the Union League Club can in our opinion perform no service more worthy of the name and traditions of the Club or of more assured value to our country at this time than to provide the means for the Com- mittee to carry out its program. Respetfully submitted, The War Committee of the Union League Club of Chicago UNIVERSITY OF MICHIGAN 3 9015 00481 2353 th *