HISTERY DEPART MENT |The War es eins THE Fixing the Blames v's oF HLINOIS 27 JAN1915 Money Ring Decrees War | $500,000 Bought Control of Nation Japan Arming School Girls fe etmany’ s Unequalled Record Nn Russian Autocracy and Its Blood Bath Lord Kitchener’s Soothing Syrup Operations of Foreign Exchange PUBLISHED BY ywWaterways and Commerce 17150 Nassau Street “i New York TEN CENTS THE COPY its in * har, a REMOTE STORAGE KAISER WILHELM Il a : 5 ) \ cin: THE i @ TH Wy OIU UNIVERSITY OF RUNOIS der 27 JAN1915 lis F 15be8 Foreword War Would End If Money Kings Willed It Having called to her aid South African Negroes, the brown men of India and the browner men of Japan, England is now resorting to every device to Bs, mbroil the people of the United States in the alsat3 ry. ‘oney Clique’ s inhuman attempt to crush Ger- many and maintain the money control of the world. In line with this, a partner of the banking house of J. Pierpont Morgan & Co. has declared that Amer- ica must help the Allies, and that declaration has been followed by a propaganda in the daily news- papers, calculated to inflame the people to action against their own best interests. Of this news- paper propaganda George Bernard Shaw writes: “The appalling danger of a daily deluge of cheap newspapers written by nameless men and women whose scandalously low payment is a guarantee of their ignorance and servility to the financial de- partment, controlled by a money class, which has large direct interests in war as a method of raising the price of money, the only commodity the money class has to sell. Plutocracy makes for war be- cause it offers prizes to plutocrats.” This book is written to warn the people of the United States that they have at all times been mis- led and are today being misled by an international group of money dealers whose machinations have brought about this terrible war and whose greed for gold is causing its continuance. Elsewhere, will be found a summary of the several money conspiracies against the people suc- cessfully carried out by the money clique since the Civil War of 1862. People must bear in mind that these international money dealers do not profit ex- travagantly from commercial conditions in time of peace. At such times, money is easy and does not sell at a premium. In times of commercial. dis- turbance—particularly in war—money becomes dear and usurious interest can be exacted from every branch of industry. The longer the war con- tinues, therefore, the more the international money controllers gain. An intelligent, aggressive public opinion is the only power that can thwart the de- signs of these money dealers. Can such a public opinion be aroused in the United States? . It is to present these matters for the consideration of the public that this book is written. If people reason correctly, they will act right. The crushing of Germany—if that were possible —would only mean a war between England and Russia and France. Remember that France hopes to regain Alsace and Lorraine and Russia covets Constantinople and Baltic Prussia to get control of the sea. England could not consent to placing such power in Russia’s hands and neither could she profit by the advancement of France. The triumph of the Allies means the continuation of the world war The triumph of Germany means the speedy estab: lishment of world peace. This is not a pro-German propaganda. It is an appeal to public reason and asks as did Thomas Jefferson a century ago: “Whether a government conducting itself in the true spirit of its constitution with zeal and purity, and doing no act which it would be unwilling the whole world should witness, can be written down by falsehood and defamation ?” Ricuarp M. McCann. America and the War Defeat of Germany Would - Hurt Democracy By RICHARD M. McCANN Editor “Waterways and Commerce” Life is complex ; no human formula applies to all its phases. Evolution, the motive power of events, evades formulation. Says Aeschylus: “It is an old saw that great prosperity does not die childless, but brings insati- able woe on a race. Wealth is no protection to a man when he has spurned the altar of right. A wretched impulse drives him on, the irresistible, far- scheming child of folly.” These thoughts of the valiant soldier and inspired poet who died 450 B. C. seem particularly pertinent to a consideration of the causes that have involved the great nations of Europe in war. We citizens of the United States who represent in the persons of our electorate natives or children of natives of each warring nation: should make an impartial study of the combatants. Russia, France and England are so vast in wealth and population that they appear to encom- pass all there is of power on the Globe. Germany is not as large in area as the State of 5 Texas! Texas has 265,780 square miles, Germany 208,830 square miles. But there the comparison ends. . And this little section of the world has been so intensely worked that it rivals England in the for- eign trade of the world. More than 80 per cent. of the German railroads are owned by the Imperial or State government. There are more than 2,000 miles of electric rail- roads, 6,000 miles of navigable rivers, 1,500 miles of canalized rivers and 1,500 miles of canals. The Kaiser Wilhelm or Kiel Canal, connects the North Sea with the Baltic and is 61 miles long, with an average depth to permit the passage of the largest ship. Its cost, upward of $70,000,000, has been more than repaid by the protection it has afforded the German navy. These waterways of Germany are equipped with the most improved mechanical devices for handling cargoes from big or little ships and are a means of revenue to the people. The waterways of the United States cost the people $100,000,000 annually in taxes and are of negligible benefit to commerce, while the waterways of England are useless. The railways of Germany pay a profit of $5,000 a mile—what of the railways of the United States? The expenses of the empire of Germany are paid by the profits from the postal service, the tele- graphs, telephones and state railroads. What revenue does the United States receive from these sources? So much for the material side of Germany. Let us glance at the mental or educational side. School instruction is obligatory on the whole peo- ple, and the government is liberal to extravagance in the promotion of primary and secondary edu- cation. There are 25 universities with 70,000 stu- dents. The leading universities are in Berlin, 6 Munich, Bonn, Leipsic, Halle, Heidelberg and Breslau. There are also technical and polytechnic schools, the Naval Academy at Kiel, Military Acad- emies at Munich and Berlin, besides 60 schools of navigation, 15 special military schools and 10 cadet institutions. And all of this in a territory less in area than the State of Texas. Think of it! There is a rea- son—and that reason is: The revenues of the German Empire have been honestly expended. The government of Germany is that of a consti- tutional monarchy, the present empire dating from 1871. The supreme direction in military and politi- cal affairs is vested in the King of Prussia, who in this capacity bears the title ““German Emperor,” The Kaiser! He represents the nation internationally, and can declare war, if defensive, and make peace, as well as enter into treaties with other nations, and appoint and receive ambassadors. Remember, the Kaiser cannot declare offens’7’ war. A war of offense can only be declared by the legislative authority which is vested in the Bundes- rath, representing the individual German states, and appointed by the governments of each state for the session, and the Reichstag, representing the nation at large, and elected by universal suffrage, for a term of five years. Surely this should satisfy the most skeptical that the German people realize that the present war is a defense of their liberties, of their commerce, yea, of their hearthstones. Compare the orchard and farm lands of Germany with those of England. A large part of the surface of England consists of wide valleys and plains. It is well supplied with rivers. Most of them carry their waters to the 7 North Sea. If we consider the drainage as a whole, four principal river basins may be distin- guished, those of the Thames, Wash and Humber belonging to the German ocean and the Severn be- longing to the Atlantic. Notwithstanding these advantages, England pro- duces nothing of value to the nation in the form of crops. Her waterways have been practically abandoned and her national energies devoted to foreign trade aggradizement rather than domestic development. Notwithstanding Magna Charta, Cromwell and Home Rule for Ireland, men of wealth have always ruled England. The acquisi- tion of money—financial success has been the goal of the nation since the days of the Armada. ‘The comfort and prosperity of the people have never been the concern of her legislators. It is evident that a race entirely occupied in legis- lation enacted to seize the property or possessions of other people and profit by their production, rather than devote their energies to home devel- opment, has but a rudimentary humanity, a narrow ethics, a narrow religion. During the recent discussion in the United States Senate on the Rivers and Harbors Bill, the Hon. F. M. Simmons, of North Carolina, said: “Germany, probably, of all countries of the world has developed its water transportation to the highest state of perfection. Her rivers are not deep, but their channels are in good condition. Her terminal facilities and physical railroad connections at stopping points are of the best. If you will go to that country and visit the Rhine you will see that stream full of barges, from ten to twelve hundred ton capac- ity each, six, eight, and even more of them linked together and drawn up and down the river with one powerful tug, with perfect ar- 8 rangements for loading and unloading, and with economic physical connection with the railroads which receive their cargoes and dis- tribute them into the interior. “Our failure to take thought of thesc things and to provide for them accounts in part for the backwardness of water transportation in this country. “What has Germany accomplished as a re- sult of building her waterways and linking them together, and thus securing the cheapest possible freight rates for her manufacturers? Germany, starting from a position of inferior- ity, with a comparatively small foreign trade in the markets of the non-manufacturing countries, largely pre-empted and monopolized by other nations, has gone forward with such strides, with such rapid, unparalleled strides, in the struggle for trade that in less than 50 years she has become probably the most dangerous competitor for world’s trade among the indus- trial nations of the world. She has successfully met the competition of England, for years rec- ognized as the mistress of the sea and the mon- arch of world commerce. She has successfully met the competition of France, Belgium, and of our own country. Against all opposition she has acquired a foothold here and there and everywhere and expanded and grown until she has forced herself to the front ranks of the great industrial nations who in modern times have waged war in all the ports of the world for industrial supremacy. “For years when we were considering tariff legislation the competition of England was constantly dinged into our ears. We were told that we could not compete in our own markets with English products in the absence of high 9 protective duties. England was the country held up to us as the country of greatest ef- ficiency in production, the country where things could be made cheaper than anywhere else, and the country whose competition we had most to fear, both at home and abroad. In re- cent years when we have been making tariff bills we have heard less of England and more of Germany. Germany, we are now told, is the country of greatest efficiency in production ; the country of cheapest production; the coun- try whose competition was most to be feared, both at home and abroad. “Why has Germany in these few years taken the place of England as the nation of cheaper production? I answer, Mr. President, because she has recognized, as the other nations have not, the importance of cheap transportation, the effect of cheap transportation upon the cost of production; recognized the frightful economic waste in using rail transportation where water transportation was equally as available in the assembling and distribution of heavy and bulky products of commerce, and by reducing the cost of transportation to a minimum has been enabled to produce and distribute her products at a lesser cost than her competitors, especially her European competitors. “Mr. President. the English are a very con- servative race of people. They are slow ¢- adopt innovations and to change their old meth- ods and ways of doing things, but the Enolich people could not shut their eves to the effect upon Great Britain’s trade of what was hap- pening in Germany.” Senator Simmons truly said Great Britain did not shut her eves to what was happening in Germany. Realizing that she could not compete with Germany 10 she determined to destroy Germany as she destroyed American shipping by sending forth the “Alabama” and “Shenandoah” on their voyages of destruction. England’s destruction of American over-sea com- merce was lucidly set forth in an article by the Hor E. Platt Stratton in “Waterways and Commerce” in February, 1911. Three years ago Mr. Stratton wrote: “This abuse and prostitution of American interests began about the years 1869 or 1870. when English capitalists were appealed to to assist with their foreign capital in floating some of the heavy bonded indebtedness on two of the trunk lines of our intercolonial and interstate railroads. The stipulation then entered into was that English steamships, owned by English com- panies, should be allowed to carry the over-sea freight of Northern trunk line railroads from the West in lieu or in consideration of the Eng- lish financial aid extended in refunding of bonded indebtedness, then running at 7 to 8 per cent. interest. This agreement was largely instrumental in the creation and establishment of the White Star Line of steamships across the North Atlantic, but tended to arouse con- siderable sentiment and interest looking to the revival of American commerce in the European trade which had been lost during the civil war by the incursions of the Alabama and Shenan- doah. The movement took shape in the forma- tion of the American Steamship Company of Philadelphia, which built four American steam- ships. This particular company received its chief patronage and trade from interests identi- fied with the leading interstate trunk lines of rail- road entering Philadelphia, the Pennsylvania Railroad, not then having control of a through line connection to tidewater at the port and 11 harbor of New York. The establishment and operation of this line of American steamships soon had the effect of convincing the capitalists connected with Pennsylvania’s trunk line system that more money and greater profits could be made by owning and operating foreign built steamships, manned and operated by foreign crews under a foreign flag. The American con- necting interstate commerce railroad system supplied the freight under pro-rating systems that could be manipulated to suit any change of conditions that might be considered desirable, always insuring a profit on either side of steam- ship or railroad company, as conditions re- quired. The culmination of this now well or- ganized and generally deplorable system was the organization, construction and subsequent development of the Red Star Line of steam- ships, organized and operated under the Belgian flag. The satisfactory financial results attained by this Antwerp line induced the same Ameri- can trunk line railroad system and its capital- ists to become large owners and later controllers of the Inman Line of English trans-Atlantic steamers, which, like the Antwerp line, also prospered under like influences, but in the trade to Liverpool. “This now well developed system of owning and operating foreign steamship lines by com- panies owned by American capitalists, or Am- erican holding companies, identified or in con- nection with American interstate commerce rail- roads, has reached a condition through pro- rating and traffic agreements which renders it practically and commercially impossible for any American interest to enter or. engage in the business with American-built, American owned or manned vessels. The Europeanizing of Am- 12 erican capital in such foreign companies and the prostituting of every American commercial interest are made operative by a system of in- triguing methods of gain that cannot be law- _ fully carried on under American laws. And to make these conditions the more aggravated our European rivals in trade obtain exorbitant pro- fits by these methods in combination with men of American birth and identified with the na- tion’s transportation system, who are constantly receiving large profits from the national Gov- ernment under its franchises. “This is forcibly illustrated in the case of the International Mercantile Marine Company, made up of the White Star Line, an English Company ; the Red Star Line of Belgian steam- ers; the Atlantic Transport Line of English boats; the Dominion Line, a company within the White Star Company, and the American Line, of four steamers, two of British and two of American build, but subsidized by the United States Government to the extent of about $600,- 000 annually, while operated absolutely within the dominating influence of a combination which is essentially foreign in every respect, in order to evade the penalties incident to a viola- tion of the Interstate Commerce Law.” ~The United States has submitted to spoliation by Great Britain because as Mr. Stratton truly says because men of “American birth and identified with the nation’s transportation system” unlawfully com- bine with British capitalists to exploit the people. Great Britain has been unable to make such a com- bination with men of German birth identified with that nation’s transportation system and hence the war—just as England attempted in 1812 to crush the United States is she now attempting to crush 13 Germany, but just as she failed in 1812, so surely will she fail in 1914. Unhappily the press of the United States is dominated by English influence and the papers that dealt fairly with Germany two months ago now reek with abuse of that great nation. This is the more unaccountable because Great Britain has for years systematically persisted in a publicity cam- paign of everything American, particularly in South America. On January 7, 1913, testifying before the Com- mittee on the Merchant Marine and Fisheries, of the House of Representatives, Mr. Sidney Story, of the Pan American Steamship Company, de- clared: ; “We find that our commercial rivals, the Eng- lish, are very aggressive in carrying on a propa- ganda throughout the press. There is not a day but what you take up the newspapers of those countries and you will find a whole col- umn devoted to Switzerland or Holland, or Bel- gium, two columns to France, Italy, and Eng- land, and to the United States possibly two or three small lines. Or if it is a paragraph or two it refers to some objectionable items like divorce cases in Nevada or lynchings—items of that character. “The cable service is in the hands of the English, and the news service is in the hands of the English, and all the news from North America to South America is first censored in England before it reaches South America, and vice versa, the object being to keep the two sections of the western hemisphere as much apart as possible. We are pictured to the South Americans as northern barbarians, to keep them away from us, and South Americans are pictured here to us as a lot of revolution- 14 ists, so as to keep our people from investing in that country.” Testimony of Joseph J. Slechta, agent of the Brazilian $.S. Co. at New York. “My company is owned and operated entirely by the Federal Government of Brazil. “TI think it is a matter of record that Sir Phillips, who is the moving factor in the owner- ship of the Royal Mail—that he and his friends have bought over a large share of the stock at least in the Lamport & Holt and some of the large English companies. In fact, it is generally understood, at least, in shipping circles, that it is a movement leading to a very serious fight between German and British shipping in- - terests.” And the present war is the outcome of the ‘“‘seri- ous fight between German and British shipping in- terests” referred to by Mr. Slechta, the Brazilian agent. And what does Great Britain do to protect Brazil in this emergency? The Hon. Maddin Summers, United States Con- sul at Santos, Brazil, under date of August 14 last, writes to the Department of Commerce and Labor: “The situation in Santos, Brazil, is serious, al- though probably less so than in other parts of the country. The life of the State of Sao Paulo is the coffee crop, and any situation which prevents the exportation of this product completely paralyzes all business. “On August 3, in view of the complications among the European powers, the Federal Govern- ment issued a decree suspending all business until August 17. It was evident that the loan of 20,000,- 000 pounds sterling which was being negotiated in Europe could not be obtained, and the Government could, with difficulty, meet its obligations. This condition of affairs affected especially the State of 15 Sao Paulo, as the coffee crop has been harvested and the heavy shipping season just begun. “As a result of the above decree all the banks closed their doors, and business has practically been suspended. Shippers are not able to obtain money to buy the coffee for export. Many of them were caught with only a few milreis in their offices, scarcely sufficient for current expenses. “The coffee crop of the State is almost entirely shipped through Santos. All exportations are finan- ced through London, the banks here buying the bill of lading drafts in pounds sterling. This applies also to the enormous shipments to the United States. Thus the merchants, not being able to negotiate their drafts, must cease business. “The situation has been further demoralized by the oscillation of exchange. During July, before the Austro-Servian situation became critical, the milreis was quoted at 16 pence (32.44 cents). Exchange rapidly fell, and on August 3, when the banks were closed, the nominal value of the milreis was 12 pence (24.33 cents). Since then there have been no quotations. Pounds sterling (gold) have been sold anywhere from 20 to 25 milreis, and United States notes and gold from 4 to 5 milreis per dollar. “The situation has become still more critical in view of the issuance, or proposed issuance, by the Government of paper incontrovertible money. No one knows what the value of the paper milreis will be when the banks open. Many of the large con- cerns have heavy deposits in the different financial institutions, and have been forced to see their money depreciate in value without being able to remedy conditions. “Another of the immediate effects of the declara- tion of war in Europe was the stopping of all ship- ping, the vessels of the several belligerents being unable to clear on account of fear of capture at 16 sea, so that coffee shippers who had their product already bought and paid for could not dispose of their holdings. Several ships are lying in the ‘har- bor, loaded, but unable to leave. In the meantime the Brazilian Government has dispatched to Santos several of the steamers of the Lloyd Brazileiro Line to facilitate both freight and passenger traffic to the United States. The freight rates on coffee to American ports have advanced from 40 cents a sack as charged by the shipping combination and 30 cents a sack by chartered boats to $1. a sack.” England leaves Brazil in destitution because she permits no considerations for humanity to distract her from her intent to monopolize the trade of the world. England demands that the war go on because she wants to saddle on France such a debt that will prevent France from ever again being a lending nation. England will take over the securities of France at a discount of 40 per cent. and make that nation for all time a borrowing nation. England demands that the war go on hoping that Russia will be able to crush Germany and remove the only nation that prevents her from monopolizing the trade of the world. France aiding and abetting England is souulne national suicide. The overthrow of Germany would mean the ruin of the United States. In September, 1913, Waterways and Commerce called attention to the growth of Canada and its menace to the national life of the United States, unless the United States began at once the building of a merchant marine. Recently a merchant marine measure was adopted by Congress but that measure was dictated by British Interests. Surely the United States cannot. hope for aid from Great Britain in its competition with Canada! 17 / As a nation the United States of late has been servile to British interests. It imposes a tax of $100,000,000 on the people although there is a balance in the banks of $75,000,- 000 in favor of the government. New York City is paying the bankers $100,000,- 000 for obligations abroad that will not mature for months. The Banks of the United States show a deficit of upward of $70,000,000, notwithstanding the fact that they have the custody of $75,000,000 of gov- ernment money—The People’s Money. These sums total $345,000,000. Exactly the amount that England added to her war fund when she declared war against Germany. Can it be that the United States is furnishing England money to conduct this war? The industries of the United States are prostrate. Factories are either shut down entirely or working on half time. Why? Is it because the banks are interested—as lenders —in English factories and do not desire to lose that investment by reason of the American factories taking away the trade of the foreign mills? In 1907 American exports to Germany amounted to $256,596,000; in 1912 they reached $306,959,000, a gain of substantially $50,000,000. Should the people of the United States permit the few American capitalists who grow richer by reason of their nefarious partnership with English finances, to alienate the friendship of a country as great as Germany—Germany’s only crime is that under the benificent rule of the present Kaiser she has followed the principles laid down by the im- mortal Washington and has declined to enter into “foreign entanglements.” The German Government under the Kaiser has 18 been most humane and considerate. Here is one instance: When the great tide of emigrants from Russia began to pass through Germany to America, some years ago, the German Government was compelled to refuse ship passage to many emigres, who were ill, deformed or otherwise undesirable. These un- fortunates had made a long and expensive railway journey and when rejected at the port as unde- sirable they had to return by the same route. In order to prevent this suffering the German govern- ment designated a number of towns on the Russian frontier through which Russian emigrants were per- mitted to pass. The German railway lines con- structed and maintained buildings there for that purpose, and appointed an agent at each place, and these places were called control stations. These control stations were established to inspect emi- grants there instead of at the port of embarkation, and thus save undesirable ones the tediousness and expense of a long journey to the port and then back to their homes. England and Russia cared nothing for the suf- ferings of the poor emigre. All they cared for was the transportation money. But the great Kaiser has a heart that beats responsive to that of the poor suffering Russian Jew and put his government to work to ameliorate his condition. The establish- ment of stations in Russia for the benefit of the sick and needy was denounced by England and Russia and Belgium as an interference with another nation. Truly it seems that abuse is the reward for the lover of mankind from the Christ to the Kaiser. “We look upon this world as one great family— born of the same flesh and blood, and eventually to be governed by the same laws; and the sooner the nations of the earth can feel and act upon this prin- ciple, the happier it will be for them. What good 19 would not the money now do, which is annually wasted in the support of military forces, employed for the savage purpose of cutting each other’s throats, could it be expended in the support of schools, carrying out systems of internal improve- ments, and promoting the cause of science! And what are high tariffs but fortifications and bands of custom-house officers but armies created to plun- der and make war between nation and nation?” said Daniel Webster. “The fact that the controlling forces of society are usually invisible does not subtract from their economic basis. - And as long as we can be kept in ignorance of their nature, as long as the minds of men can be directed to political and religious ques- tions and away from the fundamental economic fact, just so long will progress continue to be blind and doubtful; just so long will the human pilgrim- age renew its circles of disappointment and dis- aster. Until we understand and answer the ques- tion of bread, until we deliberately equalize pro- duction and distribution, until fraternity and free- dom are changed from phrase to fact, the world will continue to be a wilderness of wanton human waste,” writes George D. Herron. The equalization of production and distribution and the carrying out of a system of internal im- provements, have been the accomplishment of the Kaiser. Of all the rulers in history he alone has made it his particular case to see that the money derived by the government was devoted exclusively to government use. Under his rule there has been no graft in Germany. Even the banks have been compelled to play fair with every form of industry, and although Germany, not as large an area as the State of Texas, has maintained the greatest of armies, an efficient navy and a wonderful merchant 20 marine, the people of Germany are the most pros- perous on earth. The government of Germany is in truth a gov- ernment for the people. The government of England is the bulwark be- hind which hides the money manipulators of the world. Their thought is that money is all power- ful. This thought was expressed by David Lloyd- George, Chancellor of the Exchequer, replying on Sept. 8 to a deputation from municipalities wanting aid. The Chancellor of the Exchequer refused the aid saying: “We want every penny we can raise to help fight the enemy. We must come out triumphant in this struggle, and as finance is going to play a very im- portant part. in it we must husband our resources. We do not want a penny spent which is not abso- lutely essential to relieve distress. In my judgment the last few hundred millions may win this war. “The first hundred millions our enemy can stand as well as we can, but the last they cannot, thank God, and therefore I think cash is going to count much more than we imagine.” The materialistic Mr. George will probably learn that a powerful personality gifted with spiritual vision is more potent than money; that the great movements—the epoch marking moments of man- kind, are led by a man, not by money. Mahomet, Alexander the Great, Julius Cesar, Charlemagne, each fashioned the world, or a very large portion of it, for long successive ages. One stands in awe of the world-shaping influence which some single men have exercised. It is a solemn, and it would be a terrible thing to contemplate, if we did not believe that a Mightier than man rules over all; that those mightiest, not less than the smallest, are in his hands. Helpers or hinderers of his kingdom are alike raised up by him to work out his plans, and to 21 bring about in the end by strange and diverse ways, that kingdom which shall finally rule over all. To the student of the growth and development of Germany, there comes with the force of conviction, the thought that William II. of Germany has been specially called, to revive in man a belief in God and a trust in His power and mercy. Indeed God always has been the uppermost thought in the mind of the Kaiser. From boyhood he cultivated the spiritual side of his nature assiduously, so that in the 55 years of his life he has always been conscious of the presence of the ever living God. In truth it may be said of him that he walks with God. To no other ruler over men, has God been such an actual entity, a loving and loved Father. Born physically frail, by sheer exercise of will he overcame bodily defects to such an extent that in early manhood, despite a partial paralysis of his left side, he became recognized as an expert swords- man, a skilful horseman and a strong pedestrian. William II. of Germany has stamped the imprint of his personality upon his people. He has intelli- gence supported by a courageous will, he has the gift of knowing what is to be feared and what not and in acting accordingly. Like the Kaiser the German people have grown from a nation of little promise to a people of supreme power. Germany has given to the world two great object lessons. The first is the folly of a people neglecting to be ready for war. For centuries Germany placed more importance on culture than on cannon. Did it earn the respect of England by that course? An English writer treating of the German nation in 1815, said: “Their conduct during the great war had shown so slender an aptitude for self defense that the idea 22 of their attempting conquest was too absurd to be entertained. Nor had their patriotism been of that excitable kind which disposes a nation to incur risk for the sake of glory. They had allowed themselves to be tossed from one ruler to another as the fancy of their conquerer might decide; they had submitted to seeing a horde of foreign officials stifling their trade in order to forward their designs, and loading them with taxes to keep up the machinery for their oppression.” To stifle trade and extort taxes ever has been and always will be the reason for war. The second object-lesson that Germany has given to the world is that an honest administration of the affairs of a people will make them prosperous notwithstanding an extraordinary expenditure for National defense. These lessons should be iearned by the people of the United States. They were taught by the found- ers of the Republic, but they have been dropped from the National curriculum for more than half a century. Germany alone of all the nations has strictly adhered to the policies of Washington, of Jefferson, of Jackson and of Lincoln. Said the Hon. Jacob H. Gallinger, United States Senator from New Hampshire, in an address before the United States Senate: “The one Old World nation which has made prodigious strides in foreign commerce of re- cent years, our ever vigilant and most form- idable competitors, is the Empire of Germany, a thoroughly protectionist nation like our own. Until a quarter of a century ago, German sea power was absolutely insignificant. The Em- pire had a small war navy and a small and not very prosperous or efficient merchant fleet. “Not until Germany began to own and build her own ships to carry her own trade did she begin to be considered as a serious factor in as the commerce of the world. Her wonderful maritime expansion has made her mercantile expansion possible. The clear vision of the great Kaiser first recognized that his country must have ships in order to have commerce, and that to have ships meant increased pros- perity not only for the seaport towns, but for every manufacturing village or agricultural dis- trict producing anything that could be sold abroad. German merchant tonnage that under a ‘free-ship’ policy, without State aid, increased only from 1,098,000 in 1873 to 1,270,000 in 1881, has, with State aid, grown to 3,393,000 in 1904, and German commerce has expanded in almost like proportion.” And in all this trade expansion never was an un- fair act done by Germany to any other nation. On the contrary Germany was chosen as the subject for special approbation at the Lake Mohawk Peace Conference a little more than a year ago. 24 THE Crown PRINCE OF GERMANY Peace Conferees Extol Kaiser “Fruitful causes of war in the future are likely to be international distrusts, dislikes and apprehen- sions, nursed in ignorance and fed on rumors, sus- picions and conjectures, propagated by an un- scrupulous press,’ said Charles W. Eliot, President Emeritus of Harvard University, at the Lake Mo- oe Conference on International Arbitration, May 15,1913, At that same conference Mr. Ralph Lane, better known as “Norman Angell,” author of “The Great Illusion,” said: “Tf you ask an Englishman why he thinks it is necessary to maintain an army, he is inno- cent of doubt. He will tell you that he is threatened by Germany. And you cannot say that he is not. Not that Germany has neces- sarily any aggressive intentions as against Eng- land, but no one can tell whether Germany has or has not. The other day Lord Roberts made our flesh creep by telling us that in ten or fif- teen years Germany would invade England. He knew, of course. Now Lord Roberts is an Englishman, knowing the English people, be- ing personally acquainted with members of the government and opposition. And yet if you were to ask him what England intended to do six months hence at the next general election on some small matter like Home Rule or the suffrage question, he could not to save his life tell you. But though he cannot tell you what his own country will do six months hence, the intentions of a much more complex foreign country across the North Sea fifteen years hence are no secret to him at all.” What stronger proof could be desired to show that England was then fomenting hatred of Ger- 26 many, although her members of Parliament knew that Germany desired peace? In proof of this take the statement made at the same conference by Heinrich York Steiner, of Vienna. Said he: “Although Europe has just had a war, hide- ous in all its features, and in which the pas- sions of the people have been greatly excited, yet the advocates of peace are in the minority. And you will be astonished where the friends of peace are to be sought for, not among the common soldiers or common people who bear the brunt of the battle, but among the crowned heads of Europe, who are aware of the cost of war and its dangers even to the victor. Yester- day evening the honorable gentleman (J. Allen Baker, M. P.) who presided at the session told us that the Emperor of Germany was one of the great factors for peace. I am fortunately in the position to claim the same thing for His Majesty, the aged Emperor and King of Aus- tria and Hungary.” On the same occasion J. Allen Baker, of London, a member of the English Parliament, said: “Europe is an armed camp. Five million men are under arms and twenty-five million more ready in case of need—thirty million men, supported by the labor and industry of the peo- ple, ready to fly at each other’s throats in an attempt to settle questions which should only be settled by courts of justice or by arbitration on lines of truth and righteousness! I believe there is an uneasiness on the part of rulers and governments. “Mr. Ginn this morning referred in a very striking way to the duties of the church, and other organizations, to take up this work of in- ternational brotherhood and peace. I am glad to report that the work which has appealed to 27 me most strongly and to which I have felt called upon to give my best energies, has dur- ing the last year or so met with very good success. I refer to the work of the Associated Councils of the British and German Empires for fostering friendly relations between those two peoples. It was started in 1908 and has been growing steadily ever since. We have over ten thousand of the leading ministers and religious leaders, and a considerable number of laymen in hearty accord and supporting this cause.” Dr. Lyman Abbott, another speaker at the con- ference, said: “Combativeness and destructiveness are not vicious elements in human nature. They are not to be destroyed; they are to be guided by reason and directed to beneficent ends. There are times when war is necessary. The history of the world would be poorer than it is if there were no record of war on its pages; if there had been no heroes who dared to fight for jus- tice and liberty ; no William of Orange to array his country against the persecuting sword of the Duke of Alva; no Cromwell to stand for civil liberty in England; no Washington to lead the forces of America against foreign despot- ism. Christianity does not emasculate man. Christians have not stood and ought not to stand for peace at any price. They have rec- ognized, and they ought to recognize, that there are worse things than war, bad as war is. Con- stantine was led to adopt Christianity primarily because he found the primitive Christians in the fourth century better soldiers man for man than the pagan Romans. Never have their been braver or better soldiers than the Puritan Iron- 28 sides, whose heroism gave liberty to England and to America. “This truth the Bible abundantly recognizes. First pure, then peaceable, is its motto. In Paul’s description of the Kingdom of God, righteousness, peace and joy, righteousness precedes peace. There is no honorable peace which is not founded on righteousness. “Enduring peace is possible only when it is the fruit of justice. The blow of the fist, the gleam of the sword and the bark of the cannon will continue until some other power than that of the armed man is found to protect innocence from injustice. ‘War, says Charles Sumner, ‘is a public armed contest between nations under the sanction of international law, to establish justice between them.’ “There are two ways of promoting peace: one by making our Nation so weak that it can- not fight; the other by making it so strong that it need not fight. Weakness is a terrible pro- vocative of war. The War of 1812 would not have occurred if Great Britain had believed that we had a navy adequate to protect our citizens upon the sea.” There would be no war in 1914 if Great Britain had thought that Germany could command the bil- lions of dollars that her loyal people have poured into the national treasury since the beginning of hostilities. But there is a greater power than money behind Germany and the German soldier. That power is the implicit belief in the Kaiser and the justness of their cause.. The personality of the Kaiser will bear down the scale of justice against all the money that may be piled up on the other side. The Kaiser more than any other ruler of ancient or modern times has stood for justice, equal jus- 29 tice for rich and poor alike. Because of this Ger- many has prospered while Great Britain has de- clined. In 1882, Germany had 6,396,000 workers in mining and other industries; in 1907, 5,000,000 more (11,156,000)—1i. e., 200,000 more every year. In Austria-Hungary in 1890, 3,824,000, and ten years later 4,323,000—1i. e., 45,000 more every year. But the industrial development of Germany has other results apart from this. The surplus of workers in the great emigration countries—Russia, Austria, Hungary and Italy—generally go to Ger- many and work there during the season. But there are also fixed colonies of foreign workers, contain- ing some hundred thousands already established there. On the 12th of June, 1907, 799,863 foreign- ers were counted in Germany as employed in the industrial, commercial and communication concerns, as well as those in service. From Austria alone, 316,000 season workers go yearly to Germany as against only 120,000 to the United States of America. Human personality grows as men perceive that only in correlation with the welfare of others can they fulfill themselves. So with nations. The Egyptians and Babylonians fifteen centuries before Christ had established themselves in Northern Mesopotamia; with arms they conquered and with arms they held the empire of Western Asia and in their day were as powerful as was England a month ago. Although they professed a love for literature, art and religion, the spiritual element of personality was not developed and when their mil- itary might was broken they and their cities ceased. In the person of the Kaiser the German Army has the spiritual element of personality in an aston- ishing degree. By that they must conquer. Constantine had his sign in the heavens under 30. which his armies conquered; Mahomet had his as- surance of Paradise, Napoleon had his star of des- tiny in which his soldiers believed, but the Kaiser has a greater and truer talisman—he has his rev- erence for and his belief in God and every man, and boy, in his vast armies believes in and with him. And as Constantine and Mahomet and Cesar conquered so will the Kaiser triumph. 31 ‘ENGLAND WILL GAIN AT AMERICA’S COST A recent issue of Die Wiche, a widely circulated German periodical, contains an article on “Eng- land’s purpose in the current war,” by Dr. Alfred Zimmermann, now Assistant German Secretary of State, who has for many years been prominent in the councils of the German Foreign Office. Dr. Zimmermann traces the development of England’s anti-German foreign policy, of which he says King Edward was the father, while Sir Edward Grey and Winston Churchill have in recent years been its chief exponents. “It is significant,’ he says, “that when a liberal government came into power it took over from the Tories the two men most prominently identified with the anti-German propaganda. “Whoever has followed the activities of these two men,” Dr. Zimmermann continues, “could not remain in doubt about England’s intention of using the first favorable opportunity to smash German power. The most widely circulated English news- paper, which has long enjoyed the close confidence of the British administrative leaders, declared very cold bloodedly, days before England entered the war, that England would be compelled to enter the war upon the side of Russia and France for the sake of preserving the ‘balance of power.’ “But in this war England is not only concerned about grabbing Germany’s colonies, destroying Germany’s fleet, wiping out Germany’s trade and weakening Germany’s economic life. She is en- visaging other advantages, advantages with regard to which she is maintaining a discreet silence. “For although the Russo-Japanese war weakened 32 the Russian giant materially, and thereby assured England a greater degree of security in her Asiatic possessions, it can now count upon an even more violent shaking for the colossus of the North. There is little doubt about England’s quiet satisfaction at every Russian defeat. For every weakening of Russia accrues to England’s advantage in India and for her political schemes in East Asia. “UNITED STATES WILL SUFFER SEVERELY AS RE- SULT OF War.” “The far-sighted English politician promises him- self even greater advantages than the war offers with respect to Russia from its effects upon British relations with the United States. This latter coun- try, directly and indirectly, is bound to suffer most seriously as a result of this war. The United States is the third commercial nation of the world. British trade totals $7,000,000,000 annually. Germany’s totals $5,250,000,000, and that of the United States amounts to $4,250,000,000. Nearly half the foreign trade of the United States is carried on with Europe. Besides, England, Germany, France, Hol- land and Belgium are America’s best customers, and furnishers, and they serve this function in even larger measures than appears from the import and export statistics. “A good part of the merchandise which England imports from America is carried to the European mainland. Similarly, England carries much Euro- pean merchandise to the United States. Under these circumstances it is readily apparent that the United States is bound to suffer seriously not only for the moment, but in the future as well, particularly if England achieves its object of destroying the Ger- man and French shipping trade with the United States and other over-sea countries. According to the most recent statistics, only 10 per cent. of all 33 the freight handled in American harbors was car- ried in American bottoms. More than two-thirds of all the shipping in American ports already carries the British flag. Whereas, the total registered ton- nage of the ships entering American ports is 24,- 500,000, the German share of this amounted to only 4,500,000, the French and Dutch to only 1,000,000 tons each. “If England’s policy of securing a monopoly of American shipping is successful, it means a serious economic disadvantage, as well as a political danger for the United States. The British would be the arbiters of over-sea rates, and would be in a posi- tion to prescribe to the United States the conditions under which it might do business with the outside world. Already the cutting off of the United States from cable connection with Germany has worked a serious disadvantage to the Americans. Competi- tion has been eliminated, Great Britain’s influence upon the world has been enormously increased. ENGLAND CouNTS ON GAINING OTHER ADVANTAGES AT AMERICA’S EXPENSE. “England, moreover, is counting upon obtaining other advantages at America’s expense. For a long time they have begrudged Uncle Sam an influence in the Far East which they have found inconvenient. No less irritating have they found the stand which the United States has taken in matters affecting Central and South America. England’s indignation at America’s attitude in the Panama and Mexican question is an open secret. The completion of the Panama Canal will only mitigate against England’s position on these issues, as well as in the Far East. Already diverse matters connected with the Panama Canal have raised issues between British and Amer- ican diplomacy. There was always the danger that 34 these differences might lead to more serious mis- understandings. “Therefore, England is altogether justified in as- suming that in all these matters also a successful issue of the war and the consequent readjustment of the European situation in England’s favor, will ‘leave her in a much better position to achieve her ends. For then, with its chief European opponent out of action, England can turn its full strength against the United States without having to fear a rear attack. “The world was astonished ten years ago, when England permitted France—a country with which it had warred for centuries, and against which it had struck at every possible opportunity—to take over Morocco and the key to Gibraltar. There was no less astonishment when Christian England, a coun- try which has ever sounded the call to arms against the unbeliever, entered into an alliance with heathen Japan. The far-reaching plans which motivated these steps have been understood by very few people outside of England. German public opinion paid scant attention to the warnings uttered against the dangerous plans of Edward VII. Even now the world’s opinion as to British intentions is very much divided. Yet no one who has carefully observed British policy for the past three decades could doubt that England is today far less concerned about the weal or woe of France, Russia or Servia than about her own future position as a world power. The United States will play the most important role in this connection. Consideration as to her prospec- tive position with reference to the United States may have had much to do with leading England into her present attitude. Let us hope that Ameri- cans will be more far-sighted than was the German public, and that they will take measures to meet the situation.” 35 Commercial Relations of the United States The world’s leading importers are the United Kingdom, Germany and the United States, in the order named, France being fourth and the Nether- lands fifth. The United States and the United Kingdom are the world’s largest exporters, fol- lowed by Germany, France, and the Netherlands. The United States furnishes about 20 per cent. of the total imports into the United Kingdom, 15 per cent. of those into Germany, 10 per cent. into France, 14 per cent. into Italy, 65 per cent. into Canada, 53 per cent. into Cuba, 50 per cent. into Mexico, 15 per cent. into Argentina, and 15 per cent. into Brazil. German Street Car Management Two CENTS THE AVERAGE FARE, Four CENTS THE MAXIMUM IN DRESDEN. Twenty-three of the largest German cities are showing thrift in the management of their transit lines by getting the most good out of their expendi- ture for the convenience, comfort and prosperity of the public, both in the cities and suburbs. In Berlin the street car service is excellent. There are more seats than passengers at almost any hour of the day.. Not more than seven persons are ever permitted to stand. In that city, where the elevated line is under private management, the service has been brought up to a high standard and compares well with the surface lines run by the municipality. — In the German capital the right of way of the ele- vated roads has been planted with grass and flowers, and fitted with benches and other conveniences. 36 All through the crowded city the elevated roads make lines of green which are free for the use of the public. The stations are inclosed from the weather and are beautiful in design. The elevated is called the “umbrella of Berlin” because it affords shelter from rain and sun. Both surface and ele- vated lines are so constructed that there is a mini- mum of noise. The average fare is 2% cents. Dresden is typical of the number of devices for convenience of passengers. A stranger can easily use the street railways without knowing the Ger- man language or the street arrangement. Each of the eighteen lines is designated by a number which has a conspicuous place on the front of the car. The cars with the even-numbered routes are painted red and the odd-numbered route cars are painted yellow. The cars make their stops in the middle of blocks, so that they do not interfere with traffic at street corners. Inside the car on one side is a map showing the route of the car lines, together with their numbers, and on the other side of the car is a map showing the various zones into which the city is divided. The cars are supplied with clocks which are advertisements of their makers. Two cents is the average fare for a single ride and 4 cents is the maximum faré. Through wise, thrifty expenditures these German cities have eliminated the strap-hanging which is prevalent in the large American cities. The public travel in comfort at about half the price Americans usually pay. They have placed the transportation of the public on the same basis as their health, police and fire protection. Their employes are paid better wages than. in the past. These cities are building for permanence, and in- dustry is encouraged by their cheap fares. It is demonstrated that with these low rates and generous transfers the congested conditions, high rents and 37 unsanitary, poor housing in the overcrowded cities is already in some degree diminished. Suburbs are developed by cheap commutation, and the working classes are allured to the surrounding country and its valuable land for gardens.—Idaho Statesman. 38 Heinrich Heine on the Money Monopolists I confess that I am not impartial when I speak of English people and it is possible that my un- favorable opinion, my aversion is deeply rooted in my anxieties as to our own property or on the happy and peaceful prosperity of the German Fatherland. For since I have learned what vile egotism prevails in their politics, these English in- spire me with unlimited and terrible fear. I have the best respect for their material supre- macy—they have a great deal of that brutal energy wherewith the Romans conquered the world, but they unite with the wolfish rapacity of Rome—the serpents’ craft and cunning of Carthage. We have good and well tested arms for the first, but against the murderous, merciless treachery of these Phceni- cians of the North Sea we are without defense. And England is now more dangerous than ever since its mercantile interests are succumbing. There is not in all creation such a hard hearted creature as a shopkeeper whose trade is diminishing, whose customers are falling away and whose stocks find no demand. How will England save herself from such a business crisis? I do not know how the question of the factory workmen can be solved, but I do know that the policy of the modern Car- thage is not at all difficult as to choice of means. To this selfishness a European war may as a last resort seem to be the best means of sending the malady from within outwards. The English Oligarchy will speculate firstly on the purse of the middle class, whose wealth is in- deed colossal and which may be sufficiently dis- tributed to pay and pacify the lower classes. How- ever great may have been the expense for Indian and Chinese expeditions, however great financial 39 distress, the English Government will at once raise the money if it aids their plans. The greater the home deficit will be, the more profusely will British Gold be spent abroad; for England is like a mer- chant who finds himself becoming bankrupt, and out of despair turns prodigal, or who rather shuns no expenditure to keep up a momentary credit. And we can do a great deal in this world with wealth, especially since everyone seeks his happi- ness here below. No one has any idea as to what enormous sums England annually expends to subsidize its foreign agents, whose instructions are all based on the pos- sibility of a European war, or how these English agents employ the most heterogenous talents, virtues and vices in foreign countries to achieve their aims. Paris, Sept. 17, 1842. British Proposals Forced Invasion of Belgium, Says Diplomat German Charge d’Affaires, Haniel von Haim- hausen, maintains that the reports from London seek to give the erroneous impression that Germany precipitated the war wholly because German troops had advanced into Belgium, whereas, he declares, the British Foreign Office had previously laid down terms to Germany which would have had the effect of restraining the German navy from operating against Russia in the Baltic—the most natural waterway leading to the Russian possessions—or from operating against France along the north coast of that country, which was the most natural and proximate point for the German naval forces to operate. 40 Thus, before the Belgian issue arose, England, Mr. von Haimhausen contends, had sought to com- pel Germany to hold its navy inactive at the very points where it could be most effective; to reduce it to a state of comparative inaction in upholding such position as the German nation might determine upon. Admission by Prof. Charles W. Eliot Says Prof. Eliot: “There are many important matters concerning which American sympathy is strongly with Ger- many: (1) The unification of Germany, which Bismarck and his co-workers accomplished, natur- ally commended itself to Americans, whose own country is a-firm federation of many more or less different States, containing more or less different peoples. While most Americans did not approve Bismarck’s methods and means, they cordially ap- proved his accomplishment of German unification. (2) Americans have felt unqualified admiration for the commercial and financial growth of Ger- many during the past forty years, believing it to be primarily the fruit of well-directed industry and enterprise (3) All educated Americans feel strong gratitude to the German Nation for its extra- ordinary achievements in letters, science and educa- tion within the last hundred vears. Jealousy of Germany in these matters is absolutely foreign to American thoucht, and that any external power or influence should undertake to restrict or impair German progress in these respects would seem to all Americans intolerable. and. indeed, incredible. (4) All Americans who have had any experience in governmental or educational administration rec- ognize the fact that German administration—both 41 in peace and in war—is the most efficient in the world; and for that efficiency they feel nothing but respect and admiration, unless the efficiency requires an inexpedient suppression or restriction of indi- vidual liberty. (5) Americans sympathize with a unanimous popular sentiment in favor of a war which the people believe to be essential to the great- ness, and even the safety, of their country—a senti- ment which prompts to family and property sacri- fices very distressing at the moment, and irremedi- able in the future; and they believe that the Ger- man people today are inspired by just such an over- whelming sentiment. German Scientists Exchange Signals Under Ocean in Important Experiments The first of a series of observation by German scientists to determine whether or not the earth is shrinking was begun at Far Rockaway, L. IL, July 21, when Professor Albrecht von Flatow sent a signal by cable from Far Rockaway to Professor Max Schnauder in Barkum, which is near Potsdam, Germany. The immediate result of the observa- tions will be to determine the exact difference in time between Washington, D. C., and Potsdam, Germany. The difference in time determined by observations which will be made ten, twenty-five, fifty or more years from now will be compared with the results of the present observations. If the figures vary, it will indicate that the distance be- tween the Old World and the New has changed and that the size of the earth has changed. Professor von Flatow said that the theory which the observa- 42 GERHART HAUPTMANN The German Poet, Winner of the Nobel Prize for Literature—About $39,000 tions are aimed to test, is that the earth is con- tracting. The observation are being made by the German Geodetic Survey. Far Rockaway was selected as the American station because the Commercial Cable Company’s station and the terminals of the German cables are here. Professor von Flatow’s signal went to Horsa, in the Azores, where it was noted by Professor Theodore Albrecht, another German Geodetic Survey scientist, and thence to Barkum, where Professor Schnauder answered by another signal. All three scientists are equipped with chro- nometers, the error of which have been very min- utely calculated. The time lost in sending the signal from Far Rockaway to Barkum, due to induction and other causes, has been calculated. The scientists can therefore determine the difference in time be- tween the two places to the smallest part of the second. With Malice Toward None War is hostility between sovereign nations, that, having no superior power to which to appeal for the settlement of their disputes, have recourse to force and arms. War is either offensive or de- fensive. The power that strikes the first blow, however, is not always the original author of the hostile measures, since the seeming assailant is often forced into his position by the violation of his rights or the menacing posture of the other parties. In the main, the judgments of mankind have pro- nounced in favor of a defensive war. Germany today is conducting a defensive war. A dispassionate review of the record will disclose the fact that England demanded of Germany, as the price for non-interference, that Germany render 44 herself helpless should the quarreling European powers invade her territory in waging battle. ‘This Germany declined to do and as a consequence is the object of abuse by an English inspired Ameri- can Press. The right thinking patriotic American prays for German success because Germany stands for Jus- tice, and Justice should prevail though the Heavens fall. When the historian of tomorrow. pens the nar- rative of the war of today, his verdict will be that it was caused by the most sordid of motives— Money, Gain, Greed. Not the faintest tinge of patriotism will be found in England’s action. England, that egged on Russia and France to send the flower of their youth to death while ‘she sent brown Hindus and South African blacks as substitutes for Britons! But let us not blame England. Englishmen are not on the firing line because this is not an Eng- lishman’s quarrel. It is the fatuous attempt of the money monopolists to control the governments of England and Russia and France—and aye—of the United States, who are quartered in England and who object to any nation giving to the people a portion of the money of the world which they covet. So let us acquit Englishmen of this terrible crime of war and praise them for playing golf and tennis and billiards as they are doing, while the black and brown mercenaries are attempting the murder of innocent but valiant and unconquerable Germans at the behest of the Money Monopolists. When Napoleon’ Bonaparte was sent to St. Helena one hundred years ago, the money monopo- lists took up their headquarters in London. There they laid their plans for world control. Europe 45 was at their mercy and the only obstacle to their success was the United States, which at that time had a Merchant Marine and the prospect of an in- dependent Financial System. They induced the Congress of the United States to trade with foreign nations via London and to destroy the American Merchant Marine. Noble Americans, who planned this year to cele- brate in London One Hundred Years of Peace at such a price! The hundred years of peace was a peace only between the money monopolists of England and the United States. Wars were everywhere over the globe and their termination meant only a few more millionaires in London and New York. For seventy odd years the money monopolists were so successful that they felt their reign of loot and slaughter would never end. ‘They laughed aloud when Lincoln proclaimed that a slavery worse than black slavery was menacing mankind—Money Slavery, Lincoln called it—but the people did not understand. Do they understand it now, when hundreds of thousands of strong men in our great cities have been for years without employment? They do not understand. If they understood a war against Germany would be impossible. The money slave masters of which Lincoln warned are in control and are lashing mankind into degradation and death. But there has come for our liberation another Lincoln and he is William II. of Germany— The Kaiser! A French Scholar’s Opinion of Germany (From Taine’s History of English Literature.) “It is from Germany that Carlyle has drawn his greatest ideas. He studied there, he knows per- fectly its literature and language, he sets this litera- ture in the highest rank, he translated Wilhelm Meister, he wrote upon the German writers a long series of critical articles, he has just written a life of Frederick the Great. He is the best accredited and most original of the interpreters who have in- troduced the German mind into England. This is no small thing to do, for it is in such a work that every thinking person is now laboring. “From 1780 to 1830, Germany has produced all the ideas of our historic age; and for half a century still, perhaps for a whole century, our great work will be to think them out again. The thoughts which have been born and have blossomed in a country, never fail to propagate themselves in neighboring countries, and to be engrafted there for a season. That which is happening to us has happened twenty times already in the world; the growth of the mind has always been the same, and we may, with some assurance, foresee for the future what we observe in the past. At certain times appears an original form of mind, which produces a philosophy, a literature, an art, a science, and which, having renewed the form of man’s thought, slowly and infallibly renews all his thoughts. All the minds which seek and find are in the current; they only advance through it; if they oppose it, they are checked; if they devi- ate, they are slackened; if they assist it, they are carried beyond the rest. “Thus at the end-of the last century arose the philosophic German genius, which, having engen- dered a new metaphysics, theology, poetry, l'tera- ture, linguistic science, an exegesis, erudition, de- 47 scends now into the sciences, and continues its evo- lution. No more original spirit, more universal, more fertile in consequences of every scope and species, more capable of transforming and reform- ing every thing, has appeared for three hundred years. It is of the same order as that of the Renais- sance and of the classical Age. It, like them, con- nects itself with the great works of contemporary intelligence, appears in all civilized lands, is pro- pagated with the same inward qualities, but under different forms. It, like them, connects itself with the great works of contemporary intelligence, ap- pears in all civilized lands, is propagated with the same inward qualities, but under different forms. It, like them, is one of the epochs of the world’s his- tory. It is encountered in the same civilization and in the same races. We may then conjecture, with- out too much rashness, that it will have a like dura- tion and destiny.” An English Scholar’s Opinion of Germany (Thomas Carlyle in the London Times, November 18, 1870.) “The Question for Germans, in this crisis, is not one of magnanimity, of heroic pity and forgiveness to a fallen foe, but of solid prudence and practical consideration what the fallen foe will, in all likeli- hood do when once on his feet again. Written on the memory in a distinctly instructive manner, Ger- many has an experience of four hundred years on this point; of which on the English memory, if it ever was recorded there, there is now little or no trace visible. No nation ever had so bad a neighbor as Germany has had in France for the last four hun- dred years; bad in all manner of ways; insolent, 48 rapacious, insatiable, unappeacable, continually ag- gressive. Germany, I do clearly believe, would be a foolish nation not to think of raising up some secure boundary fence between herself and such a neighbor, now that she has the chance. There is no law of nature that I know of, no Heaven’s act of Parliament whereby France, alone of terrestial beings, should not restore any portion of her plundered goods when the owners they were wrenched from have an opportunity upon them. The French complain dreadfully of threatened loss of honour; and lamentable bystanders plead earnestly ‘Don’t dishonour France, leave poor France’s honour bright.’ But will it save the Honour of France to refuse paying for the Glass she has voluntarily broken in her neighbor’s win- dows? ‘The attack upon the windows was her dis- honor. Signally disgraceful was her assault on Germany ; equally signal has been the ignomy of its execution on the part of France. The honor of France can be saved only by the deep repentance of France and by the serious determination never to do so again. For the present, I must say, France looks more and more delirious, miserable, blamable, piti- able and even contemptible. She refuses to see the facts, that are lying palpably before her face and the penalties she has brought upon herself. A France scattered into anarchic ruin, without recognisable head, or chief, indistinguishable from feet or rabble. Ministers flying in balloons ballasted with nothing but outrageous public lies; proclama- tions of victories that were creatures of the fancy; a Government subsisting altogether on mendacity, willing that bloodshed should continue and increase rather than that they, beautiful Republican Crea- tures should cease to have the guidance of it. I know not when and where there was ever such a nation so covering itself with dishonour. The quan- 49 tity of conscious mendacity that France, official or other, has perpetrated latterly, especially since July last, is something wonderful and fearful. And, Alas! perhaps even that is small compared to the self-delusion and unconscious mendacity long pre- valent among the French. “To me, at times the mournfullest symptom in France is the figure its ‘men of genius,’ its highest literary speakers, who should be prophets and seers to it make at present and indeed, for generations have been making. It is evidently their belief that new Celestial wisdom is radiating out of France upon all the other evershadowed nations, that France is the Mount Zion of the Universe, and that all this sad, sordid and semi-delirious, and in a good part infernal stuff which French literature has been preaching to us for the last fifty years is a veritable new Gospel out of Heaven, pregnant with the bless- edness for all the sons of men. “Bismarck, in fact seems to me striving with strong faculty, by patient, grand and successful steps towards an object beneficial to Germans and to all other men. That noble patient deep and solid Germany should be at length welded into a nation and become Queen of the Continent instead of vain- glorious quarrelsome and oversensitive France, seems to me the hopefulest public fact that has oc- curred in any time.” Russian Autocracy and Its Bloodbath Tuomas C. Hatt, D.D. Blinded by fear of German invasion and jealous of the growing sea power on the North, England has herself lost sight of the real issue of the war, and a docile American public has out-Englanded England. The existence of a Russian autocracy 50 was at stake, and Europe has been plunged into war to save that wretched autocracy. Were by any chance the Allies to win, England would within a short time have conscription and be seeking an alli- ance with Germany on almost any terms to save her Eastern interests from Russia. For this autocracy is a plundering Asiatic anachronism in Europe. It can only live on war and conquest. Russia is peaceful. The Russian peasant has no interest in war. They fight well, like all peasants, when once at work. But as a simple matter of fact many of the Russian prisoners in Gottingen thought they had been fighting against FrAuD! It will be the greatest blessing to all Europe and especially England should Russia be soundly beaten and the Baltic Provinces, the Polish Provinces, Bes- sarabia and the Caucausus fall away, and a free Russia enter at last upon the industrial and agrarian reforms that can alone save her. Nothing would be more desperately evil for the Balkan States than the Hegemony of Russia. It would mean a militarism with a vengeance. It would sound the doom of all religious freedom and social aspiration. It would force the mystic super- stitions, the autocracy knows so well to prostitute to political purpose upon all the Balkan races. Tolstoy said the autocracy had itself ceased to believe in these mystic superstitions, but simply forced them on the people for its own purpose. Whether this be so or not these superstitions are a principal tool, and religious intolerance in Russia makes even Turkish fanaticism a haven of refuge. Even Panslavism is only a cloak for the ambitions of the autocracy, and sad would be the day for Europe and Asia were this war to give this corrupt and degenerate political power a new lease of life. Even France’s gold and American industrial plants will be safer in the hands of a defeated but 51 reconstructed Russia than in the keeping of a tri- umphant court with a victorious army absolutely at its disposal. ' — Lord Kitchener’s Soothing Syrup By G. A. HoER te. Lord Kitchener’s opinion, that Germany would get weaker, the Allies stronger, the more the war would be prolonged, is altogether a soothing-syrup for home-consumption or an illusion. I have been in South Africa during the last six months of the Boer War, and have closely observed the conditions of the different bodies of troops there in service. The most efficient of them were the “District Mounted Troops” of the Cape Colony, be- cause they were all far above average intelligence, perfectly self-reliant, used to handling arms and ex- cellent riders. Last, but not least, they knew their respective districts and had the good will of the negroes, who thoroughly hated the Boers. But these excellent troops, especially efficient for home-service, the English Commander soon sent to the Orange Free State, to new surroundings, en- tirely inimical, and where other colonials, or old English regulars would have answered as well. They were replaced in their home districts, first, by Australians, and later on by green English troops, the latter all good men, courageous to a fault, but many of them unable either to handle a gun or straddle a horse. Many of the officers were as green as their greenest men. I remember one big fat Englishman, a “Commandant” of a District, who a year or two before, had been clerking for Sir Thomas Lipton. He made a laughing stock of him-, self, by issuing an order to house owners to prevent their cocks from crowing, as this might give the eo Boers a signal, and to exercise the already over- driven oxen every day, so as to keep them in good working order. It was easy to detect all the “newly arrived” fora great many months, by their awkward ways, and I never saw any effort made to drill them in their camps, before they were sent to the front, where they made good target practice for the opposing Boers, when looking about surprised trying to find out where the whizzing bullets came from. They never reached the efficiency of the other Colonials nor of the older soldiers. All in all the different Colonials did most of the fighting during the entire war. Sir Redvers Buller, who so skillfully met the first brunt of the fight near Ladysmith, with fifteen thou- sand Cape troops and twenty-eight thousand other Colonials and old English soldiers, kept in check over eighty thousand Boers, by moving all the green troops back at night in closed cars, and sending them the following day to the front again, with all the military show possible. The Boers, thinking ‘that Buller had over a hundred thousand men, and that his troops were all hiding to wait their attack, did not dare to come out of their defensive position (which had always the advantage of the inner line during the entire war) until the positive orders ar- rived from London for Buller to attack Ladysmith. Of course the repulse was only child’s play. After the second futile attack, he resigned in disgust, much regretted by the English pioneers there. The Boers were always better informed than the English for the following reasons: There were hardly any Boers really loyal to the English in the entire Cape Colony-and these were fully two-thirds of the population. Of those, who pretended to be loyal, many were engaged by the British as spies, but they gave only the sham news to their employ-* 53 ers, the valuable information being sent to their own people, who knew how to make good use of it. This condition prevailed until the last battle was fought by Lord Kitchener. It is therefore no wonder that nearly a quarter of a million men were required to subdue eighty thousand Boers. Lord Kitchener will learn during the next six months that battles will be won in this war not by superior numbers, but by superior drill. This he could have learned, had he studied carefully (whilst he was lying idle in Pretoria for nearly a year, until a new Chief of Staff, General Olyphant, roused him out of his sleep), the history of Charles XII., who when a mere boy of eighteen beat to a rout at Narva with only eight thousand well drilled Swedes, over sixty thousand Russians under Peter the Great. It took nine years before the Russians could conquer Charles at all, while Peter required over fifty thou- sand men to defeat sixteen thousand Swedes at Pultawa. Russia is about in the same position today, as she was at Pultawa. It will take three of her soldiers to beat one German. Russia had been in a plight after her war with Japan. There could hardly have been any good drill-masters in Russia, even before that war, or she would not have been compelled to enroll so many green men in both her army and navy, as all foreign war correspondents had re- ported. To educate a common Russian soldier to be a good drill-sergeant requires on an average, three or four years; and even then, owing to lack of fit teachers, they are not equal to those of France or Austria. But no European country has ever ap- proached the efficient system of Germany, a system which has permeated not only her army, but also her whole nation; and is really the cause of her ever growing industrial supremacy. In one word it is 54 the Kaiser’s “Mailed Fist” which has made his peo- ple wealthy. But like her most dangerous rival, Japan, she is wise enough to hide her real strength. All we can do is to approximate from her past mode of drilling. The population of Germany is sixty- five millions, of which one out of five are males over twenty and under fifty years. She could easily mobilize for field-service nearly every man under fifty, besides half of those between fifty and sixty. All of her older men could be sent, if necessary, for service to her fortresses, where they could drill all the younger men down to the age of seventeen, as well as a great many supernumeries still fit for ser- vice, but hitherto not recruited, up to the age of fifty. In this way Germany can finally command an army of nearly fifteen millions of fighting men, enough to exhaust even populous Russia. It is evi- dent, therefore, that whatever battles the latter will win, will be at the beginning, not at the end of this war. The Russian wheatfields will be the prize of the victors. Owing to her less fortunate financial conditions, Austria is not so well prepared, but still her own second and third calls will be strong enough to de- fend her Italian and Servian borders. Nor will Austria or Germany have to starve as many think, for even the latter is self-supporting, though Austria may have to help her ally with field workers. Nor must we expect a long drawn out war, as Lord Kitchener seems to think. His own country will need peace long before any of the Con- tinental Powers. A revolution in India is certain to break out before long, well stirred up by her friend and ally, Japan. Then she will repent her deaf ears to the Kaiser’s warnings and entreaties in 1900 and 1908 ; but then it will be to late. Finally, when Sweden sees that Russia is far oh from having an easy promenade to Berlin, she and Finland may want to take a hand in this game; for Finland and the entire Baltic Provinces, even the very soil upon which stands St. Petersburg, was taken from her in a more brutal way, than any pro- vince from any country in Europe; just because she was a weak nation and could not help herself. Fin- land was invaded in the middle of peace and: with- out even a declaration of war by Alexander L, though the King of Sweden was his brother-in-law. If Sweden is wise, she will want to belong to the German Confederation after peace has been con- cluded or Russia will swallow her. Still this present war, being really only caused by Pan-Slavism, which for the last two hundred years has tenfolded its dominion, should have been con- ducted only defensively along the French-German border, and the invasion of Russia carried on with the utmost vigor and speed. There is not a single Russian fortress between Warsaw, Moscow and St. Petersburg, which could not have been compelled to surrender long before the Russian armies could have given any succor; and almost without any loss to the German armies, as most of them were prac- tically defenseless. That would have practically decided the war, for the German artillery seems to be irresistible. Once defended by such guns, handled by well drilled men, that part of Russia would have been lost to the Czar forever. Less than a million men could have held it against all Russia, and France and England would not have dared to carry on the war alone. 56 Japan Arming School Girls Mikado’s Empire Aims to Control China and India to Gain World Supremacy By G. A. HoERLE In 1883, I made the acquaintance of one of the first lot of teachers, who were sent from Berlin to Japan, at the request of the Mikado, a Dr. Schmidt, whom I found by far the cleverest observer and judge of future events, I have ever met. He stayed over ten years in Japan, and then made a contract with the Chinese Ambassador to teach in Pekin, where he remained another seven years, and then tried to lecture on this subject in Germany, England and in this country before empty houses. Dr. Schmidt classed the Chinaman, mentally and morally, ahead of any of the Asiatic or European races, because, for over four thousand years they had at different periods attained the highest state of civilization ever reached by any people; and he de- clares the desire for civilization to be so innate to them, that even three hundred years of slavery under a tyrannical, warlike dynasty could not eradi- cate it. He predicted their sudden awakening at the first opportunity given them. The correctness of this assertion has been verified by the recent occurrences in China, which will have a great effect all over the Far-Eastern nations. Dr. Schmidt told me that after he had become well acquainted with the best educated and brightest Japanese, they had never made a secret of their ultimate intention of conquering China; and he ad- ded, “And they will do it if either the Mikado, Okuma or Ito remain alive, for these are the chief brains of Japan.” I visited Dr. Schmidt quite often and he kept me posted about what was happening in the Far East, 57 that had escaped the notice of our dailies and peri- odicals. The most important item being, that Japan had introduced military drill for both sexes, in her public schools, both to reduce her army bills and keep her military strength secret. After the Chino-Japanese War, he said: “This means a war with Russia, in less than ten years. Japan will win just as surely as she has in the last war. After that, poor China will be at her mercy, unless the European Sea Powers wake up; which is not at all probable. Every one of these are so perfectly self-centered and con- ceited, that they will treat this matter with con- tempt until it is too late!” That the German Emperor took heed of the meaning of these words he showed when he made his so often ridiculed “Yellow Peril’ speech in 1900, and referred to this state of affairs in his much talked of interview with the prominent Englishman, reported by the London Telegraph in 1908, which has been re-published quite recently and after which his own Reichstag muzzled him. From it I quote: “Germany looks ahead. Her horizons stretch far away. She must be prepared for any eventu- ality in the Far East. Who can foresee what may take place in the Pacific in the days to come, days not so distant as some believe, but days at any rate for which all European powers with Far Eastern interests ought to steadily prepare? Look at the accomplished rise of Japan. Think of a possible national awakening in China and then judge of the vast problems of the Pacific. Only those powers which have great navies will be listened to with respect, when the future of the Pacific comes to be solved, and if for that reason only Germany must have a powerful fleet. It may even be that England herself will be glad 58 that Germany has a fleet, when they speak to- gether in the great debates of the future.” These words eight years after the “Yellow Peril” speech and ten years after Okuma had given the first warning, should be convincing proof that at least the Emperor himself wanted peace almost on any terms, for he knew where Japan would stand in this war. That after he was fully assured war was unavoidable he acted with the utmost speed was only his bounden duty toward his people. Had it not been for the treachery of the French Premier, Viviani, the French Legislature would never have voted for the three years’ army service, demanded from her by the Czar, thus compelling Russia to keep the peace. Nor would the English Parliament have sanctioned Grey’s act, had they known the full truth. There are always some docu- ments which never reach public eyes, unless by accident in later years, and it is very difficult to decide, when the crucial point arrives, which of the contending parties is nearest to the truth. A similar action of the English Government nearly brought Frederick the Great to grief, when during the Seven Years War, after Prussian vic- tories had secured Hanover for the English Royal house and enabled the English troops to conquer the French East Indian Colonies, England concluded peace and left Frederick to shift for himself. To show further that Bismarck also had similar experiences with English Governments, I quote from “Conversations with Prince Bismarck,” page 225: “The individual Briton is decent, respectable and reliable. The reproach of lying is to him the most serious of all reproaches . . . English policy is the contrary of all that; its dominant characteristics is hypocrisy and it employs the 59 very methods which the individual Briton de- spises.” Shortly after the above-mentioned speech, Okuma resigned and became founder, main agitator, and for many years President of the Pan-Asiatic So- ciety, which has supporters and agitators all over China, India and all the Malayan Islands. This league is no doubt responsible for the Anti- European agitators all over the Far East. Today Okuma again controls the destinies of Japan, more than ever, and is the sole Executor of Mutsuhito’s Last Will and Testament. For the near future, we Americans need not fear for our Pacific Coast, nor even for our Philippine Islands. Japan will not fool away time or strength in trifles, before she has conquerec and fully di- gested both China and India; after that, her simple wish will be her command; she will not need even to strike a blow. Their long history tells us that the peaceful Chinese, when forced to it, are as warlike as the Japanese, and owing to the contemptous treatment all white nations have given them, for over three centuries, none of the Eastern nations love us; and just for revenge sake, Okuma could even persuade the peaceful Chinese to banish us willingly from their seas, let alone the three hundred million Hindus, who need no urging and are always ready to strike a blow against their oppressors. What would be the fate of the White race, Teu- ton or Latin, Slavic, Semite or Arabic, were Japan to conquer China right now, during this very war which is devastating Europe? How many mines could she lay near the conquered harbors, before we would ever know that war existed there? And her mines and submarines would be of the most deadly type. If Japan has found ways and means to hide her 60 military armaments by the school-drilling of her children, when she was doing it right before the eyes of European visitors, fighting mixed-sex bat- tles, to my knowledge, as early as 1907, without dis- turbing our equanimity she has been certainly able to hide her naval preparations, and will do so in the future. But the blame is ours! Did not England and the United States help Japan to get possession of the very key to China, by giving her Corea? Did not Japan settle there the best and greatest number of her troops she was then withdrawing from Man- churia without.even our protest? Has she not been increasing their numbers annually, by well-drilled men and women, these last ten years, by the hun- dred thousands each year, setting them well equipped near the Chinese borders? The only nations who might have prevented this conquest are in a suicidal death-struggle, and I am not guessing wrong when I say, regardless of what Okuma will pretend to do, he knows that this is the opportunity for which he has been preparing and patiently waiting ever since the Boxer Rebellion. He will not let this chance slip! Germany may, or may not, acquire her Russian wheat-fields; France may, or may not, recover her lost provinces; neither Russia nor Australia may gain the lead in Pan-Slavism; but as sure as the Holy Writ, all the White Races, unless they make at once peace at sea and join their navies in the Far-East, will have to wish for the days gone by, forever. If President Wilson would urge this on the Euro- pean nations and direct the attention of Congress towards sending our navy to the East, he would do a greater service to humanity than by supplying the warring nations with food. 61 Germany’s Unequalled Record By RicHarp M. McCann Editor “Waterways and Commerce” “An eternal union for the protection of the realm and the care and welfare of the German people.” These are the words of the Constitution of the German Empire defining its character and since the adoption of that Constitution, April 16, 1871, the rulers of Germany have sedulously and honestly endeavored to make the people virtuous, forehanded and prosperous. The founders of the United States formulated under the Constitution a scheme of government which if adhered to would have made the States of North America the most prosperous and power- ful nation that ever inhabited the Earth. For over forty years under that Constitution, the United States flourished as did no other nation in the his- tory of mankind; but the failure on the part of the rulers to obey the Constitution has made the United States today a dependent nation. The rulers of Germany, on the contrary, have scrupulously obeyed their Constitution, and as a result the pros- perity of Germany has been unequalled in the an- nals of nations. “The care and welfare of the German people” is one of the objects of the Empire’s Constitution. Although embracing only one-fifteenth of the area of Europe, Germany in 1912 produced one-seventh of its wheat, one-fifth of its oats, one-seventh of its barley, one-fourth of its rye and one-third of its potatoes. If the farmers of the United States had as mtch wheat per acre as did the German farmers, the wheat crop of the United States would have been two and one-half billion bushels instead 62 of three-quarters of a billion bushels. More than fifty per cent. of the farm area of the United States is unimproved while only nine per cent. of the available area in Germany is unused. In the past twenty-five years the foreign trade of Germany increased three hundred per cent., while that of Great Britain increased one hundred per cent. On January 1, 1913, there were 4,850 ships of 3,143,000 tons cargo capacity flying the German flag and employing 78,000 sailors. Allow- ing 10 cents a net ton for the operation of a ship, German’s merchant marine approximated an ex- penditure of more than a third of a million dollars a day—and that expenditure inured to the benefit of the world, the United States included. The German railroads have been laid out with a view to their use by the army. To illustrate: A small town in England, France, Russia or the United States, has a small railway station with a single side track. The same sized town in Germany has a big station with a score of sidings and facili- ties for entraining or detraining an army corps. Every railway station has been planned to handle soldiers and munitions of war. In 1887, the Kaiser in a speech declared, “Nep- tune with the Trident is the symbol for us now that we have new tasks to fulfill since the Empire has been welded together. Everywhere there are Ger- man citizens to protect, everywhere German honor to maintain; that Trident must be in our fist.” And in 1903, in a speech at Bremen he said: “T want to do everything possible to let bayonets and cannon rest; but at the same time to keep our bayonets sharp and our cannon ready, so that envy and grief shall not disturb us in tending our gar- dens or building our beautiful houses.” That speech was extored from the Kaiser be- 63 cause of the criticisms launched by England at Ger- many on account of the Naval bill passed by the Reichstag in 1900 calling for a fleet of such strength that “a war with the mightiest naval power would involve risks threatening the supremacy of that power.” Nothing has been left undone to make the Ger- man navy powerful and destructive, especially in defense. The Zeppelins have been designed for co- operation with their dreadnoughts, being heavily armed with heavy calibre, rapid fire guns, above and below the gas bags, mounted so that they can cover every possible means of approach, fore, aft, broad- side. The cruising radius of the Zeppelins is 2,400 miles and their operating height 12,000 feet, an al- titude beyond the range of any surface guns. The care and welfare of the people of Germany has been as faithfully looked after by the Rulers as have the more eye-attracting affairs of state, and this care and welfare work extends to the most lowly: For instance: When a domestic servant reaches the age of sev- enty she is retired-with a pension for life earned by the insurance she has paid each week in the past. Less than two per cent. of the wage earners of Germany are out of employment. In England and in the United States the unemployed exceed ten per cent. In other words, out of every one hun- dred men in the United States or England more than ten are defective—defective mentally or phys- ically, or both. In Germany, only two per cent. are defective, because the record of unemployed is really a record of defectives. It follows therefore that the system of education and rearing of men and women in Germany is the better system be- cause its results are better. Germany has a -system of compulsory savings 64 banks. An unmarried man must deposit ten per cent. of his wages until the deposits aggregate $500. Then the deposits may cease, but the $500 thus saved can only be used for the purpose of buying a home or furnishing one. The married man must deposit five per cent. of his wages until he has set aside $500 which can only be used for the purpose of furnishing a home or buying one. Because of this benificent law a young man cannot spend all his earnings in the saloon or the billiard parlor nor can the young married man neglect his wife and home. Then again, as six per cent. interest is paid on these deposits the value of money is taught in an impressive manner and individual as well as family happiness is secure. How this works out for the benefit of the nation is shown by a comparison of the savings bank ac- counts in Germany and in Great Britain. Savings Banks Savings Banks Deposits in Deposits in Germany Great Britain Sb) i $653,450,000 $388,605 ,420 i). . 1,284,325,000 556,426,795 JE 2,209,645,000 935,027,800 (0 EE yh i aren 4.500,000,000 1,109,514,200 The foregoing table shows that from 1880 to 1911 the German people have placed $3,800,000,000 and the British people have placed only $6,950,000 into the savings banks, while between 1900 and 1911 the German people have placed $2,295,000,000 and the British people only $9,500,000 into the savings banks. During these eleven years the German sav- ings banks deposits have grown more than eleven times as quickly as the British savings banks de- posits. It is worth noting that more than $3,500,- 000,000 of the German savings banks deposits con- 65 sist of small sums which have been put into these banks by people belonging to the working class. The foregoing should suffice to show that Ger- many’s abounding prosperity is largely due to hu- mane conditions which the far-sightedness of the Kaiser have created. Through the short-sighted- ness of English administrations these conditions have not obtained in the British Isles. . The one particular battle which the Kaiser has personally waged has been to keep the people from forgetting Spartan simplicity while growing in wealth. The officers in certain regiments of the army some years ago attempted to outdo each other in offering the Kaiser entertainment on the occasion of his visits. When the Kaiser learned this he is- sued an order saying that an elaborate menu would be offensive to him and that he desired only the plainest fare. The discipline of self-denial is practiced in Ger- many. When Von Bulow in the Reichstag asked all Germany to retrench, the Kaiser set the ex- ample by cutting off $5,000,000 a year from the ad- ditional funds voted to maintain the fifty-four pal- aces throughout the Empire. These palaces are maintained so that all Germans will realize that each locality is the special care of the Emperor and that no one is favored above another. The history of the twenty-six states which con- stitute the present German Empire is a record of wars against Russia, France and Poland. The Thirty Years’ War in the first half of the 17th cen- tury reduced the population of Germany from 20,- 000,000 to 6,000,000, but it gave Europe religious freedom. During the 18th century, Austria attempted to stop the growth of Germany and her free institu- tion but the military genius of Frederick the Great made Prussia foremost among European powers. 66 These wars (the Austro Succession, 1741-48, and the Seven Years’ War, 1756-1763) cost the lives of 1,000,000 men. In Prussia alone, 14,500 houses were burned. Under the treaty of Vienna, the German states were reconstructed into a confederation of which Austria received the Presidency. Then Prussia proposed a plan of unification of the German states with herself as the center of the union. There- upon the Seven Weeks’ War broke out. Bismarck formed an alliance with Italy under which Russia undertook not to make peace until Austria had sur- rendered Venice to Italy. A series of Prussian vic- tories ending with Sadowa resulted in the Peace of Prague. And Italy has her Venice today. Remember this, ye Italians! Shortly thereafter there was a vacancy in the Spanish throne, which was offered to Leopold of Hohenzollern. He refused it, but France, desiring to clip the wings of the Prussian Eagle, demanded that Germany give a pledge that no German prince should ever aspire to the Spanish throne. Germany declined to make such a promise and the Franco- Prussian War followed. Like France, England today, aiming to cripple Germany, demanded that Germany promise not to operate its naval fleet in the Baltic against Russia or against France along the North Coast of that country. The war of the Allies is now on and judging by the past the future will certainly show: “Deutschland—Deutschland Uber Allies.” 67 State Owned Business The Government ownership of public utilities in ° Germany has reached remarkable proportions. This ownership is not only exercised by the Im- perial Government, but by the State Governments and by the municipalities. In 1911 the Imperial Government and the Governments of the German States took profits from the various businesses con- ducted by them of $282,749,224. Estimating the capital value at a 4 per cent. ratio, the value of the productive State-owned properties is $7,068,729,- OOO. And the Governments continue to follow a policy of fresh acquisitions, says Mr. Roberts in his book, “Monarchical Socialism.” It is declared that in the year under discussion— 1911—about one-quarter of all the expenses of the State and Imperial Governments for the army, the navy, and for all other purposes were paid out of the net profits on Government business. No to- bacco, spirit or match monopolies are among the undertakings. Besides the productive ownships of the Empire and of the individual States, the cities, on their own account, have gone deeply into owner- ship of street railways, gas, electricity, water works, slaughter houses, market halls, cold storage, canals and wharves. Mr. Roberts calls attention to the fact that the republics among the States of the Em- pire are far more backward in communal ownership than the monarchies. Of Government-owned properties, the farms are worth $198,000,000; the forests, $730,000,000 ; mines, $129,000,000; railways, $4,757,000,000 ; tele- graphs, telephones, express and mails, $695,000,000, and other works, $435,000,000. Upon no depart- ment do any of the State Governments lose much except upon steamers. Much of the trend of public ownership in Ger- 68 many may be traced to Bismarck, who declared that it was the duty of the State to undertake public works that men who desire might work. In 1884 he laid down the doctrine that if a man comes be- fore his fellow citizens and says, “I am healthy, I desire to work, but can find no work,” he is en- titled to add, “Give me work,” and the State is bound to give him work. There is no hostility to trusts, and it has been authoritatively stated that “economic Germany | is under the absolute rule of half a hundred men.’ Washington on War Said Washington in his fifth annual address to the Senate and House of Representatives, January 8, 1790: “A free people ought not only to be armed, but disciplined, to which end a uniform and well di- gested plan is requisite; and to which end their safety and interest require that they should pro- mote such manufactures as tend to render them in- dependent of others for essential, particularly mil- itary supplies.” The Senate, January 11, 1790, replying to Wash- ington, said: “We are persuaded that one of the most effectual means of preserving peace is to be prepared for war, and our attention shall be directed to the ob- jects of common defense and the adoption of such plans as shall appear the most likely to prevent our dependence on other countries for essential sup- plies.” In his fifth annual address, December 3, 1793, Washington said: “The United States ought not to indulge a per- 69 suasion that, contrary to the order of human events, they will forever keep at a distance those painful appeals to arms which the history of every other nation abounds. There is a rank due to the United States among nations which will be withheld if not absolutely lost by the reputation of weakness. If we desire to avoid insult, we must be able to repell it; if we desire to secure peace, one of the most powerful instruments of our rising prosperity, it must be known THAT WE ARE AT ALL TIMES READY FOR WAR.” Sacrificing American Commerce “It has become sufficiently certain that the com- merce of the United States is to be sacrificed—as interfering with the monopoly Great Britain covets for her own commerce and navigation. She car- ries on a war against the lawful commerce of a friend that she may the better carry on a commerce with an enemy—a commerce polluted by the forger- ies and perjuries which are for the most part the only passports by which it can succeed.’’—James Madison to Congress, June, 1812. Operations of Foreign Exchange The most commonly used bills of exchange are issued in the currency of England, France and Germany; that is, in pounds sterling, francs and reichsmarks. Quotations, which look complicated and unintelligible, are nothing of the sort. The quotation of pounds sterling, for example, is, say, 4.90. All that means is that one English pound is worth $4.90 in American money. Francs are quoted in French money. When the quotation 70 reads 5.15, the explanation is that $1 United States money will buy 515-100 francs, or 5 francs 15 centimes. A quotation for reichmarks of 95 indi- cates that 95 cents will purchase 4 reichsmarks. A movement in pounds sterling from 4.90 to 4.95, or a movement in reichsmarks from 95 to 96, is ob- viously an upward movement, but when francs go from 5.15 to 5.18 the market is going down, because your dollar will buy more French money, which is becoming cheaper. The price of foreign exchange is what regulates gold movements. Because London is the financial capital of the world, the trend of the rate for pounds sterling is what American bankers watch. The British pound, when it is full weight, has a gold value in American money of $4.865%. That is called the parity of exchange. American merchants who buy goods abroad as a general rule make their payments through London and in English money. They buy pounds for this purpose. When they can buy pounds at the parity of exchange, or up to 1% cents to 2 cents higher, they do so. But when the price of pounds goes above that limit, it is cheaper to take American gold and send that over. Here is why that is done: As stated, an English pound of full weight is worth at a United States mint, $4.8654. Naturally, a merchant cannot afford to pay much above this price for his pounds. If the price is too high he can buy gold in this country and send that. But if he does the operation will cost him something. There is insurance to be paid and there is the loss of the use of the money for the interval in which it is being transported across the Atlantic. Also, there is the loss in the weight, which means the value, of the gold by abrasion. Gold is soft and the action of the waves, causing the gold to jounce arounds, rubs off part of it. All this counts and 71 experts have estimated that these necessary charges amount to about one and one-half cents to the pound when the shipment is in gold bars, and to something more than two cents a pound when gold coin is used. The reason for the difference between bars and coin is that gold bars usually are worth between $300 and $450 each, while gold coin is generally sent in denominations of $10 and $20. A bar has six surfaces exposed to abrasion, while a coin has only two and the edges, but in a shipment of $1,000,000 in bars averaging $400 each, there would be only 2,500 bars, with 15,000 surfaces, while $1,000,000 in $20 gold pieces would contain 50,000 coins and 100,000 surfaces, not including the edges. So the coin loses more than the bars and the cost of shipping is higher. With these transportation expenses to be reck- oned with, the price of sterling exchange must go one and one-half to two cents above the parity of exchange before gold is sent out of the country. In other words, it must be in the neighborhood of 4.88 to 4.8814. That is what is called the nominal export point of exchange. _When the rate goes down to 4.84% bankers say that the nominal im- port price has been reached and gold imports may be expected, because the rules works as well one way as the other. What causes the rate to advance is that there are more American debts to be settled abroad than there are European debts to be settled with us. When the situation is reversed, and Eu- rope owes us more than we owe her, then the rate goes down, and if it goes down enough Europe has to send us gold. But Europe has several ad- vantages which we do not possess. There are semi- governmental banks which, while they cannot oper- ate against great international movements, can, when the proposition is fairly close, swing the bal- ance in favor of their own countries. Also, several 72 countries impose export taxes on gold, which prac- tically makes it impossible to get the metal away from them when they want to hold it. The United States, under the Constitution, cannot impose any export tax. In the financial district—Wall Street—as it is generally referred to, the foreign exchange brokers have their own particular section. They congregate around the corner of Wall and William streets, where, in obedience to the laws of affinity, all the banks and the brokers who deal in this form of financial paper send their representatives. Just as little is known about the workings of the Foreign Exchange market by the average person, so is the amount of general information regarding the physi- cal manifestations of the market limited. The Stock Exchange and the Broad Street curb, and of late the New Street curb, are widely known, but the foreign exchange market down in William street is so quiet, outwardly, that few are ever at- tracted by it, even though they pass the little group of brokers every day. These men deal in millions of dollars worth of international credit every day when business is brisk. The unit of trade is 10,000 pounds, of $50,- 000, but bills for ten times this size are not un- common. ; British pounds sterling, worth $4.865¢ in gold each, sold during August at as much as $7, and francs, which are worth in gold 19 3-10 cents each, sold at three for a dollar, or the equivalent of 33 1-3 cents each. Sir George Paish, who for years has been edi- tor of the London Statist, and is now the official adviser to the Chancellor of the Exchequer, has fig- ured prominently in the news concerning the recent troubles in the foreign exchange market. Sir George is now in this country as a representative of 73 the British Government and London bankers gen- erally, and it is believed that the results of his con- ferences with the members of the Federal Reserve Board, collectively, and with the Secretary of the Treasury, as well as with many prominent New York bankers, will do much to clear up a situation that has been unparalleled in financial history. The European war has placed England perilously near bankruptcy, but its representative, Sir George Paish, has been sufficiently adroit to make the American people pay a premium for London ex-. change, instead of getting it at a discount, and more than that he has been able to make a trade for cotton at 5 cents a pound, while Germany is will- ing to pay 18 cents a pound. In effecting the com- promise between this country and London, which is the financial capital of Europe, the newly formed Federal Reserve Board has had an important part. Its future activities will be much concerned with this problem of foreign exchange. The people should demand that the United States at least adopt the semi-governmental banking system of Europe, if it does not, as it should, take over the banking monopoly of this country. With the banking monopoly in the governments of the world there would be no more wars. Germany Has Food Aplenty for War Confidential Councilor Ruebner, founder of what is known as the physiology of nutrition and a Ger- man economist of wide reputation, publishes in the current issue of the Medicinische Wochenschrift, a survey of food conditions in Germany. The writer deals with the claim of the foreign hostile press that Germany, due to its partial isolation in the present 74 war, would in very little time be without sufficient food. Among the items which he speaks of is milk. Germany has at present, claims Councilor Rueb- ner, about 11,000,000 milch cows, producing about 1,150 cubic centimeters of milk per capita each day, while the average consumption per person is only 341 cubic centimeters in Germany, in addition to 18 grams of cheese and 7.8 grams of butter. “It is plain,’ says the writer, “that we have a superfluity in this class of food. In case the con- sumption of butter is reduced 1 gram per person the saving would amount to about 25,000 tons of butter per day, equal to about 750,000 tons of milk. In view of the fact that each milch cow pruduces an- nually about 2,500 liters of milk, or about 2% tons, about 300,000 animals could be killed for food pur- poses without interfering seriously with the milk supply of Germany.” After asserting that the Germans are the biggest meat eaters in Europe, Dr. Ruebner gives the fol- lowing table of meat consumption per capita for Europe: Kilograms. A a Pee eats COU) Cia COM ghia a ae ele ena 47.6 (apn Rc 5 ae pee ee a ae 33.6 Poland aid Belgium v........... 33.6 J obiset Qe ila: 5 aa ae 29.0 OU CTR pet a a 21.8 eR ee et oe as 10.4 German’s demand, the writer asserts, is covered fully for the period of the war, and, while forage is none too plentiful ordinarily, he believes that there will be no difficulty feeding the stock, espe- cially if a late winter makes it possible to pasture the animals longer than is usually the case. A long detailed inspection of Germany’s grain 75 supply brings Dr. Reubner to the conclusion that in this respect also Germany is far better off than has been hoped by her enemies. There is enough wheat and rye to meet Germany’s demand during the war, and instead of present conditions indicating, as has been claimed, a shortage, there is every reason to believe that the supply on hand is great enough to leave a surplus. — Fixing the Blame for War Are not five million lives enough! After sixteen weeks of war in Europe, statisticians estimate that the losses of the combined armies engaged in this strife amount to five million human lives! As many homes, which formerly were the habi- tats of happy families have been destroyed by fire, shot and shell in the cities and villages of the Con- tinent of Europe. But still the carnage goes on. Is there no way by which a stop can be put to this slaughter of the best and bravest of human. kind? When a river overleaps its banks causing injury to the adjoining country by inundation, the first act is to ascertain the source of the flood and apply correction there. If the general public can defi- nitely decide upon the aggressor in the present de- plorable conflict a public opinion may be formed that being directed at the offender should cause a halt to his malevolence. No American student of the great conflict now raging in Europe has a better right to speak with authority than Professor William M. Sloane, of Columbia University, for his researches into his- tory have been among the foremost made by any American and his written and spoken utterances 76 upon racial tendencies and social significances rank among the profoundest of the time. Says Prof. Sloane: “There was printed recently what the British call their ‘White Paper,’ as well as the German ‘White Paper.’ The editors of our most important jour- nals announced that they had read and _ studied those papers with care and that on the face of those papers, beyond any peradventure, Germany was the aggressor. German militarism had flaunted itself as an insult in the face of Europe. Germany had violated neutrality. Germany had committed al- most ever sin known to international law and there- fore the whole German procedure was to be repro- bated. “Within a very short time a Labor member of Parliament, J. Ramsey Macdonald, rises in his place, able and fearless, and, on the basis of the ‘White Paper,’ as published and put in the hands of the British public, attacks Sir Edward Grey for having so committed Great Britain in advance to both Russian and France that, in spite of the rep- resentations of the German Ambassador, he dared not discuss the question of neutrality. This mem- ber of Parliament manifestly belongs to the pow- erful anti-war party of Great Britain, a party two of whose members, John Burns and Lord Morley, resigned from the Cabinet rather than condone in- iquity, a party which before the outbreak of the _ war made itself heard and felt and protested against the participation of Great Britain, desiring localiza- tion of the struggle. “Mr. Macdonald says that in his opinion this talk about the violation of Belgian neutrality, from the point of view of British statesmen, is absurd, because as long ago as 1870 the plans for the use of Belgium, both by France and by Germany—in other words, the violation of its neutrality—were in 77 the British War Office, and that Mr. Gladstone rose in his place and said he was not one of those whose — opinion was that a formal guarantee should stand so far in thwarting the natural course of events as to commit Great Britain to war; and that has been » the announced and avowed policy of Great Brit- tain all the way down since 1870, and that there- fore talk about the violation of Belgian neutrality is a mere pretext. “That is another instance of this secret agree- ment that goes on, which so commits a man like Sir Edward Grey that in the pinch, when the Ger- man Ambassador substantially proposed to yield everything to him and asked him for his proposi- tion, he cannot make any. “These facts are in the ‘White Paper.’ As far as I know, no editor in the United States who claims to have studied thoroughly that ‘White Paper’ has ever brought this out, and they had not been published in that paper at the time when Sir Edward Grey and Mr. Asquith made their respec- tive speeches and committed the British nation to the war. “Italy has joined what Italy considered a de- fensive alliance, but not an offensive alliance, and chose to regard the outbreak of this war as an offensive movement on the part of Germany, and for that reason has refused to participate in the struggle. SECRET AGREEMENTS THE RULE “T say for that reason because, having been ac- customed to reading, all my life, long diplomatic documents, really having been trained, you might say, almost in the school of Ranke, who was the inaugurator of an entirely new school of historical writing based on the criticism of ‘historical papers, I have come to realize that the dispatches of trained 78 diplomats are for the most part purely formal, and that while these respective publications of Great Britain and of Germany have a certain value, yet nevertheless the most important plans are laid in the embrasures of windows, where important men stand and talk so that no one can hear, or they are arranged and often times amplified in private cor- respondence which does not see the light until years afterward, and that the most important historical documents are found in the archives of families, members Of which have been the guiding spirits of European policy and politics. “So that what the secret diplomacy of the last years may have been is as yet utterly unknown, and certainly will not be known for the generation yet to come and perhaps for several generations. The student in almost any European capital is given complete access to everything on file in the archives, including secret documents, only down to a certain date. That date differs in various of these store- houses, but I think in no case is it later than 1830. “If you ask why, there are the sensibilities of families to be considered, there is the question of hidden policies which they do not care to reveal, and then there is the whole matter of who the examining student is. For instance, certain very important papers were absolutely denied to me, as an American, in Great Britain—or at least excuses were made if they were not absolutely denied— which were opened to an Englishman who was working upon the same subject at about the same time. “The reason for such observations at the pres- ent hour is plain enough. Public opinion is formed upon what the public is permitted to know and 1s not formed upon the actual facts which the public is not permitted to know. And for that reason Americans, remote as we are for the sources of 79 information and especially remote from that most delicate of all indications, the pulse of public opin- ion in foreign countries, ought to be extremely slow to commit themselves to anything.” From Bismarck’s Autobiography, Vol. 2, page 237: “Lord Palmerston did indeed on April 4, 1856, say to the House of Commons, with an irony probably not understood by the mass of the mem- bers, that the selection of the papers regarding Kars to be laid before the House, had demanded great care and attention from persons occupying not a subordinate but a high position in the Foreign Of- . fice. The Blue Book on Kars, the castrated dis- patches of Sir Alexander Burns from Afghanistan and the communications of Ministers regarding the origin of the note which the Vienna Conference of 1854 recommended to the Sultan for signature, in- stead of that of Mentchikoff are proof of the ease with which Parliament and the press of England can be deceived.” 80 Anglo-American Bankers Resort to Boycott By RicHarp M. McCann The interests that have made and are maintaining the war in Europe are the financiers of England and of the United States. Not content with decreeing, in the first weeks of the war, that a German dol- lar would purchase but 50 cents in exchange, they have decided upon an absolute boycott against Ger- man Exchanges. On November 29, 1914, the news- papers printed the announcement that the “British Privy Council will lay down two rules, the first of which would apply to persons and companies that were actually German. It is ‘that all business, com- mercial and financial relations between English sub- jects, firms and corporations and German firms, subjects and corporations in foreign countries shall cease and determine.’ “It is the second rule that would chiefly affect international houses in New York and in the South- ern republics. It is ‘that no English subjects, firms or corporations shall contract or do any business with German firms or corporations, members of which are naturalized in neutral countries, when the said firms or corporations conduct business through agencies or corporations in Germany.’ “Tf this order is adopted,’ said one of those in touch with the movement under way in London, ‘it will open up possibilities of the greatest importance to native American bankers. ““English banking and investment interest have come to the conclusion that they might better in- vest their money in American securities without the intervention of German bankers. If the pro- posed order is issued, this would be done, as Eng- lish bankers would no longer buy from Germar 81 houses, and American corporations could float their securities in London only by having them issued by banking houses other than German.’ ” This boycott is not alone an attack on Germany but a blow aimed at industrial enterprise the world over, for the reason that Exchange is the life blood of industry. The product of the farm and the wage of the laborer can only be exchanged for the products of the toil of others, which come from every part of the globe. Each part of industrial society 1s dependent upon every other part. The wealth produced in one part must flow, without hindrance, into every other part in order to sustain the life of the whole. This boycott inaugurated by the English and American bankers will stagnate the trade of the world. If the life blood of any organ- ism stagnates sickness and death follow. Indus- trial health and freedom demand that bankers be shown of this power over exchange and that such a function be performed by the public itself and in the public interest. These English and American financiers will not consent to peace among the warring nations until the value of German securities has been depreci- ated almost to nothing, when these financiers will take over the obligations at a mere pittance. Then the terms of peace to which they will assent will appear most magnanimous, perhaps without the payment of any money indemnity, for the reason that money indemnity would go to the treasury of the nations and not to the bankers. But the finan- clers wil insist that the obligations of Germany be met dollar for dollar, giving the financiers $20 for every dollar invested, while the nations will get nothing in return for the vast war expenditures and public losses. We hear of depreciation of values in Wall Street, of the operations of “Bulls” and “Bears” 82 wiping out the patrimony of widows and orphans. Infamous as are these operations they cannot meas- ure in infamy with this combination of the finan- ciers of England and the United States to effect a depreciation of securities and values throughout the world, by the creation of widows and orphans through the sacrifice of the lives of men. Will the wage earners of England and America continue to supinely wait until the money interests have exhausted every resource in their attempt to crush Germany to the dust, that they may fasten upon the world a money slavery incomparably worse than black slavery? Or is money a god and the financiers its priests, who may not be questioned even by those dying at their hands? Our newspapers gloat over the orders from Eng- land for millions of dollars’ worth of destructive weapons placed in this country through Charles Schwab. The people of this country should demand that Congress prohibit this traffic and that we be- come neutral in practice as in precept. For a na- tion, having no grievance against either belligerent, to furnish both of them with weapons for mutual destruction, is not justifiable under any circum- stances; but to furnish one side for a money con- sideration, with such devices, when the other side cannot be equally supplied, is absolutely criminal. It is nothing short of aiding and abetting murder. Congress has enacted laws punishing by impris- onment conspiracies in restraint of trade. Here we find conspirators against the peace and happiness of mankind, promoters of war and slayers of men. How long will these go unwhipped of justice? A few years ago people would laugh at the idea that a Rockefeller could be indicted for an offense such as the New Haven conspiracy. A Rockefeller is under indictment for that offense today. The assertion that these financiers, conspiring 83 to loot the governments of the world can be brought to book may be scoffed at, but their turn will come. If the laws of this country are not now so framed as to give the requisite authority for the indictment and punishment of these misery makers, let legislation be enacted at the present session of Congress, placing the banking business of the coun- try in'the government—the people and for the ben- efit of the people. The people of the United States cannot know that the men in control of finance, transportation and manufacturing in the United States are in league with the men in control of finance, transportation and manufacturing in England, for the purpose of monopolizing all the profits of the war even at the cost of millions of human lives on the battlefields of Europe and millions of human lives through des- titution in all other parts of the world. That such a band of human despoilers exists is demonstrated by the proposed boycott by the British Privy Coun- cil. It is also demonstrated by the record of the money manipulators in the past and by Anglo- American financial arrangements today, which sur- pass in plan and scope the money conspiracies against the people successfully carried out for the last thirty years. American cotton is in demand in England as it never was before, but instead of purchasing Amer- ican cotton at a fair price, England sends to this country Sir George Paish, its foremost financier, to collect an alleged bill of $250,000,000 due as a bal- ance of trade, when as a matter of fact the bal- ance of trade is growing daily in favor of the United States. In spite of this fact Sir George Paish has put through a deal by which England gets American cotton at the price American bank- ers loaned on it, or 5 cents a pound, though it cost the planters 7 cents a pound to grow it. 84 The Daily Consular Report, published by the De- partment of Commerce and Labor on November 7, contained this item: The Department of State is in receipt (November 3) of a cablegram from the American embassy at Ber- lin stating that the supply of cotton is about sold out in Bremen, which is the principal cotton market of Germany. At Hamburg spot cotton is quoted at 90 pfennigs (19.432 cents per pound) and 85 pfennigs (18.352 cents per pound) offered for later delivery, with a drop in price likely should new cotton arrive in quantity. In the interior of Germany—at Stuttgart and Munich—the price is 1 mark per half kilo (21.591 cents per pound); at Magdeburg, 72 pfennigs (15.546 cents per pound) ; at Coburg, 60 to 65 pfennigs (12.955 to 14.034 cents per pound) for cotton coming by way of Genoa or Swedish ports; at Cologne, 78 pfennigs (16.841 cents per pound) delivered at Cologne; at Dresden, 75 pfennigs (16.193 cents per pound), this being the quotation on October 17. In Leipzig prices range from 66 to 107 pfennigs per half kilo (from 14.25 to 23.102 cents per pound), free Leipzig, ac- cording to quality. Here we see Leipzig offering 23 cents a pound for cotton, a price that would justify the risk of sending several shiploads there, but if such an at- tempt were successful the boycott against German exchange would prevent the shippers cashing their drafts. Do the people of the United States realize that such an infamous transaction will not only ruin the cotton growers of the South, but shut down the mills of the North, just as soon as the looms in the factories over the sea begin to hum? Can such a transaction be sanctioned by fe Gov- ernment of the United States? The Government that Jefferson characterized as “A wise and frugal Government, which shall restrain men from injur- ing one another, and shall not take from the mouth of labor the bread it has earned ?” 85 In 1873 the financiers of England paid $500,000 to reap a profit of $9,000,000 in United States © bonds. Of this transaction Senator Daniel of Vir- gina, in the Senate, May 22, 1890, said: “In 1872, silver being demonetized in Germany, Eng- land and Holland, a capital of £100,000 ($500,000) was raised, and Ernest Seyd was sent to this country with this fund as agent for foreign bondholders to effect the same object.” This testimony is corroborated by the Congres- sional Globe of April 9, 1872, as follows: “Ernest Seyd, of London, a distinguished writer and bullionist, who is now here, has given great at- tention to the subject of mint and coinage. After having examined the first draft of this bill (for the demonetization of silver), he made various sensible suggestions, which the committee adopted and em- bodied in the bill.” This conspiracy attracted some public attention and called forth condemnation, by some of the newspapers, long after the money clique had se- cured their gains. Among those who exposed the conspiracy was Frederick A. Luckenbach, who ap- peared before James A. Miller, the Clerk of the Supreme Court, at Denver, Colo., on May 6, 1892, and made affidavit that as an inventor and busi- ness man, at Philadelphia and New York, he had made several business visits to London. He be- came well acquainted with Mr. Ernest Seyd in Lon- don, meeting him first in 1865, and renewing his acquaintance with him each year, and “upon each occasion became his guest at one or more times, joining his family at dinner or other meals.” In February, 1874, while at dinner at Mr. Seyd’s house, the conversation turned on rumored corrup- tion of the British Parliament, and Mr. Seyd told him that “he (Seyd) could relate facts about the corruption of the American Congress that would place it far ahead of the English Parliament in that 86 line.” Mr. Luckenbach swore that after dinner Mr. Seyd took him apart and made this statement: “IT went to America in the winter of 1872-3, au- thorized to secure, if I could, a bill demonetizing sil- ver. It was to the interest of those I represented— the governors of the Bank of England—to have it ‘done. I took with me £100,000 sterling ($500,000), with instructions that if it was not sufficient to ac- complish the object, to draw another £100,000, or as much as was necessary. J saw the committee of the House and Senate, and paid the money and stayed in America until I knew the measure was safe.” The letter of Ernest Seyd to Mr. Hooper is pub- lished in the records of Congress (Senate Mis. Doc., No. 29, Fifty-third Congress, first session). It is dated “La Princess Street Bank, London, Feb. 17, 1872,” and among other things of a technical char- acter recommends the coining of a silver dollar of 400 grains legal tender to any amount not exceed- ing $100. The panic of 1873 was the direct result of this demonetization. $500,000 Boucut ContTrot oF Tuts NATION’sS FINANCES. Under date of October 9, 1877, the following cir- cular was sent to all bankers of the country: “Dear Sir: It is advisable to do all in your power to sustain such prominent daily and weekly news- papers, especially the agricultural and religious press, as will oppose the issuing of greenback paper money, and that you also withhold patronage or favors from all applicants who are not willing to oppose the Gov- ernment issue of money. Let the Government issue the coin, and the banks issue the paper money of the country, for then we can better protect each other. “To repeal the law creating national bank notes, or to restore to circulation the Government issue of money, will be to provide the people with money, and will, therefore, seriously affect your individual profit 87 as bankers and lenders. See your Congressman at once, and engage him to support our interests, that we may control legislation. “JAMES BuELL, Secretary, “247 Broadway, N. Y.” During the war of the Rebellion the financiers of that date, as those of this day, were in league with Lombard street, and succeeded in sending gold to a premium reaching 185 per cent. in 1864. Charles Hazzard, an agent of London capitalists, in 1862, issued a circular to New York capitalists, which was discovered by Isaac Sharp, in 1873, on file in the First National Bank of Council Grove, Kans. This circular is as follows: “Slavery is likely to be abolished by the war power, and chattel slavery destroyed. This, I and my Euro- pean friends are in favor of, for slavery is but the owning of labor, and carries with it the care of the laborer, while the European plan, led on by England, is capital control of labor by controlling wages. This can be done by controlling the money. The great debt, that capitalists will see to it is made out of the war, must be used as a measure to control the volume of money. To accomplish this, the bonds must be used as a banking basis. We are now waiting to get the Secretary of the Treasury to make this recommen- dation to Congress. It will not do to allow the green- back, as it is controlled, to circulate as money any length of time, as we cannot control them. But we can control the bonds, and through them the bank issues.” Elsewhere under the title “Fixing the Blame’ will be found the authoritative statement that agree- ments between nations are actually arranged in secret by prominent individuals. In the light of these proven money conspiracies is it not fair to assume that this terrible war in Europe has its source in the machinations of money manipulators? Remember that the cotton planters of the South are practically destitute, although Germany would if permitted enrich them by paying more than 20 88 cents a pound for cotton. The cotton mills of America are not working to capacity and-England will not permit wool from abroad to be sent to this country, thereby keeping our woolen mills idle and our men and women out of employment. Remember that it is only by “hard times” and wars that the financiers make colossal fortunes. Why will not the people banish “hard times” and put an end to war for all time by demanding that the government become the banker? Germany has set the example of a nation pros- pering by having the government participate in the banks’ profits and this is the reason English and American financiers will sacrifice the flower of the world’s manhood to destroy Germany. Let the United States improve on Germany’s precedent and become the nation’s banker. Let us have no more money conspiracies with their attendant evils. Let us have no foreign entanglements. Let Us Have World Peace. 89 << ~ SCanDavavia ¢ ” em & je co pj BN \ \ " rene ao al pes Uberna teow J baw cvs BvVLGaRia . eon ®eano® CHART SHOWING GERMANY’S WIRELESS SystEM So LoOcATED THAT IT Can INTERCEPT COMMUN- ICATIONS FROM ALL NATIONS AT WAR ~~ THE GERMAN CROWN PRINCESS Who, With Her Two Elder Sons, Bestowed Dec- orations on Deserving German Soldiers at the Army Headquarters in France THE KAISER’S ONLY DAUGHTER Princess Victoria Louise, Duchess of Brunswick, in the Uniform of the Death’s Head Hussars a for. yy a GERMANY AUSTRIA-HUNGARY PUBLISHED BY THE UNE ia reps srt aLy. INC.~NEW YORK “Lest We Forget” ERE is an American Weekly that gives facts and figures on vital subjects of interest to Germans and German-Americans in this country. 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Cable Address: JOSPIERO Telephone: RECTOR, 2839, 3312-13 American Goods Delivered to Foreign Mar- kets in the Quickest Time and Lowest Cost. One-third the profits from the sale of this book will be donated to the German Red Cross | Let not the authority of the writer be a stumbling block, whether he be of great or small learning ; but let the love of pure truth draw thee to read. En- quire not who spoke this or that, but mark what ts spoken.—Thomas A. Kempis. TO PEACE LOVING AMERICANS You doubtless realize that a continuance of this terrible War in Europe spells international disaster of a character that never before affected the indus- trial world. The study of German achievement will convince the most partisan that nothing is to be gained for commerce, art or literature in this war against Germany. This book is an appeal to reason and wholly in the interest of peace. The cable, the telegraph, fast ships and faster railroad trains link the nations so closely that the public opinion of one nation influences another most potently today than at any time in the past. America should demand World Peace in no un- certain tone. Will you not help to give expression to that demand? See that everyone you know has a copy of this book. The price is 10 cents the copy. Liberal Discount to Dealers. Address: WATERWAYS AND COMMERCE. 150 Nassau STREET, New York City.