FROM SEPTEMBER 18 TO OCTOBER 18
THE TEUTONIC REPLIES TO THE POPE
The complete texts of the German and the Austrian replies to the Pope's peace proposal of August 1 were made public Sptember 21. Beyond a reference to the Reichstag Peace Resolution of July 19, the German note avoided any specific statement of German war aims, but gave support to the views of the Pope in favor of the general principles of "reciprocal limitation of armaments," "true freedm of the high seas," and "obligatory arbitration." The Austrian reply covered the same points in somewhat different language. The texts follow:
Austrian Reply.—Holy Father: With due veneration and deep emotion we take cognizance of the new representations which your Holiness, in fulfillment of the holy office intrusted to you by God, makes to us and the heads of the other belligerent states, with the noble intention of leading the heavily tried nations to a unity that will restore peace to them.
With a thankful heart we receive this fresh gift of fatherly care which you, Holy Father, always bestow on all peoples without distinction, and from the depth of our heart we greet the moving exhortation which your Holiness has addressed to the governments of the belligerent peoples.
During this cruel war we have always looked up to your Holiness as to the highest personage, who, in virtue of his mission, which reaches beyond earthly things, and, thanks to the high conception of his duties laid upon him, stands high above the belligerent peoples, and who, inaccessible to all influence, was able to find a way which may lead to the realization of our own desire for peace, lasting and honorable for all parties.
Since ascending the throne of our ancestors, and fully conscious of the responsibility which we bear before God and men for the fate of the Austro-Hungarian Monarchy, we have never lost sight of the high aim of restoring to our peoples, as speedily as possible, the blessings of peace. Soon after our accession to the throne it was vouchsafed to us, in common with our allies, to undertake a step which had been considered and prepared by our exalted predecessor, Francis Joseph, to pave the way for a lasting and honorable peace.
We gave expression to this desire in a speech from the throne delivered at the opening of the Austrian Reichstag, thereby showing that we are striving after a peace that shall free the future life of the nation from rancor and a thirst for revenge, and that shall secure them for generations to come from the employment of armed forces. Our joint government has in the meantime failed in repeated and emphatic declarations, which could be heard by all the world, to give expression to our own will and that of the Austro-Hungarian peoples to prepare an end to bloodshed by a peace such as your Holiness has in mind.
Happy in the thought that our desires from the first were directed toward the same object which your Holiness to-day characterizes as one we should strive for, we have taken into close consideration the concrete and practical suggestions of your Holiness and have come to the following conclusions:
With deep-rooted conviction we agree to the leading idea of your Holiness that the future arrangement of the world must be based on the elimination of armed forces and on the moral force of right and on the rule of international justice and legality.
We, too, are imbued with the hope that a strengthening of the sense of right would morally regenerate humanity. We support, therefore, your Holiness's view that the negotiations between the belligerents should and could lead to an understanding by which, with the creation of appropriate guarantees, armaments on land and sea and in the air might be reduced simultaneously, reciprocally and gradually to a fixed limit, and whereby the high seas, which rightly belong to all the nations of the earth, may be freed from domination of paramountcy, and be opened equally for the use of all.
Fully conscious of the importance of the promotion of peace on the method proposed by your Holiness, namely, to submit international disputes to compulsory arbitration, we are also prepared to enter into negotiations regarding this proposal.
If, as we most heartily desire, agreements should he arrived at between the belligerents which would realize this sublime idea and thereby give security to the Austro-Hungarian monarchy for its unhampered future development, it can then not be difficult to find a satisfactory solution of the other questions which still remain to be settled between the belligerents in a spirit of justice and of a reasonable consideration of the conditions for existence of both parties.
If the nations of the earth were to enter, with a desirable peace, into negotiations with one another in the sense of your Holiness's proposals, then peace could blossom forth from them. The nations could attain complete freedom of movement on the high seas, heavy material burdens could be taken from them, and new sources of prosperity opened to them.
Guided by a spirit of moderation and conciliation, we see in the proposals of your Holiness a suitable basis for initiating negotiations with a view to preparing a peace just to all and lasting, and we earnestly hope our present enemies may be animated by the same ideas. In this spirit we beg that the Almighty may bless the work of peace begun by your Holiness.
German Reply.—Herr Cardinal: Your eminence has been good enough, together with your letter of August 2, to transmit to the Kaiser and King, my most gracious master, the note of his Holiness the Pope, in which his Holiness, filled with grief at the devastations of the world war, makes an emphatic peace appeal to the heads of the belligerent peoples. The Kaiser-King has deigned to acquaint me with your Eminence's letter and to intrust the reply to me.
His Majesty has been following for a considerable time with high respect and sincere gratitude his Holiness's efforts, in a spirit of true impartiality, to alleviate as far as possible the sufferings of the war and to hasten the end of hostilities. The Kaiser sees in the latest step of his Holiness fresh proof of his noble and humane feelings, and cherishes a lively desire that, for the benefit of the entire world, the Papal appeal may meet with success.
The effort of Pope Benedict is to pave the way to an understanding among all peoples, and might more surely reckon on a sympathetic reception and the whole-hearted support from his Majesty, seeing that the Kaiser since taking over the government has regarded it as his principal and most sacred task to preserve the blessings of peace for the German people and the world.
In his first speech from the throne at the opening of the German Reichstag on June 25, 1888, the Kaiser promised that his love of the German Army and his position toward it should never lead him into temptation to cut short the benefits of peace unless war were a necessity, forced upon us by an attack on the empire or its allies. The German Army should safeguard peace for us, and should peace, nevertheless, be broken, it would be in a position to win it with honor. The Kaiser has, by his acts, fulfilled the promise he then made in 26 years of happy rule, despite provocations and temptations.
In the crisis which led to the present world conflagration his Majesty's efforts were up to the last moment directed toward settling the conflict by peaceful means. After the war had broken out, against his wish and desire, the Kaiser, in conjunction with his high allies, was the first solemnly to declare his readiness to enter into peace negotiations. The German people support his Majesty in his keen desire for peace.
Germany sought within her national frontier the free development of her spiritual and material possessions, and outside the imperial territory unhindered competition with nations enjoying equal rights and equal esteem. The free play of forces in the world in peaceable wrestling with one another would lead to the highest perfecting of the noblest human possessions. A disastrous concatenation of events in the year 1914 absolutely broke off all hopeful course of development and transformed Europe into a bloody battle arena.
Appreciating the importance of his Holiness's declaration, the Imperial Government has not failed to submit the suggestion contained therein to earliest and scrupulous examination. Special measures, which the government has taken in closest contact with representatives of the German people, for discussing and answering the questions raised prove how earnestly it desires, in accordance with his Holiness's desires, and the peace resolution of the Reichstag on July 19, to find a practical basis for a just and lasting peace.
The Imperial Government greets with special sympathy the leading idea of the peace appeal wherein his Holiness clearly expresses the conviction that in the future the material power of arms must be superseded by the moral power of right. We are also convinced that the sick body of human society can only be healed by fortifying its moral strength of right. From this would follow, according to his Holiness's view, the simultaneous diminution of the armed forces of all states and the institution of obligatory arbitration for international disputes.
We share his Holiness's view that definite rules and a certain safeguard for a simultaneous and reciprocal limitation of armaments on land, on sea, and in the air, as well as for the true freedom of the community and high seas, are the things in treating which—the new Spirit that in the future should prevail in international relations—should find first hopeful expression. The task would then of itself arise to decide international differences of opinion, not by the use of armed forces, but by peaceful methods, especially by arbitration, whose high peace-producing effect we together with his Holiness fully recognize.
The Imperial Government will in this respect support every proposal compatible with the vital interest of the German Empire and people.
Germany, owing to her geographical situation and economic requirements, has to rely on peaceful intercourse with her neighbors and with distant countries. No people, therefore, has more reason than the German people to wish that instead of universal hatred and battle, a conciliatory fraternal spirit should prevail between nations.
If the nations are guided by this spirit it will be recognized to their advantage that the important thing is to lay more stress upon what unites them in their relations. They will also succeed in settling individual points of conflict which are still undecided, in such a way that conditions of existence will be created which will be satisfactory to every nation, and thereby a repetition of this great world catastrophe would appear impossible.
Only on this condition can a lasting peace be founded which would promote an intellectual rapprochement and a return to the economic prosperity of human society.
This serious and sincere conviction encourages our confidence that our enemies also may see a suitable basis in the ideas submitted by his Holiness for approaching nearer to the preparation of future peace under conditions corresponding to a spirit of reasonableness and to the situation in Europe.
EVIDENCE OF "NOTE VERBALE" WITH CONCRETE TERMS.—An accumulation of evidence indicates that Germany at one time intended to include in the note to the Pope specific offers for the evacuation of Belgium and eastern France; that these terms were communicated orally by Foreign Minister von Kühlmann to the Papal Nuncio in Munich, and that the latter, without the explicit official sanction of Germany, passed them on to the Pope. According to persistent rumors these terms were embodied in a postscript to the German note when it was transmitted by the Pope on October 2 to the Allies. A despatch from Rome to the Progresso Italo-American, October 3, purports to give the contents of the postscript:
Yesterday the Cardinal Secretary of State delivered to the British Minister accredited to the Vatican, Count de Salis, the replies of Germany and Austria to the peace note of the Pope that he might transmit them to the governments of the Entente. I have already telegraphed that the Teutonic replies were accompanied by a brief note from Cardinal Gasparri.
To-day I am in a position, having learned from a high personage in the Vatican, to communicate to you the contents of the note.
The document emanating from the Vatican announces that Germany is disposed to evacuate Belgium and northern France; offers the mediation of the Holy Father to secure the approaches to peace; espouses a project for the abolition of obligatory military service; proposes the commercial boycott against violators of the pacts of peace, said boycott to be proclaimed by an International Tribunal.
The document, as you may observe, sets forth in substance the recent interview with the Papal Secretary of State.—N. Y. Times, 8/10.
SPECIFIC TERMS DENIED.—Berlin despatches of September 29 quoted passages from speeches of Chancellor Michaelis and Secretary von Kühlmann before the main committee of the Reichstag, in which they denied any advance renunciation of occupied territories. The Chancellor said: "It is difficult to understand how anyone acquainted with the international situation and international usages could believe that we would ever be in such a position as, through a one-sided public statement on important questions which are indissolubly bound up with the entire complex of questions which must be discussed at the peace negotiations, to bind ourselves to a solution to our own prejudice."
In discussing the German note, Secretary von Kühlmann emphasized the parliamentary cooperation in its preparation. Its fundamental aim he stated, was to "create an atmosphere in which alone would be possible a fertile exchange of thoughts upon concrete questions,'' and that "all attempts to drive a wedge between the German people and the German Government . . . . will be repulsed by the support given to this document."
COUNT CZERNIN THREATENS STIFFER TERMS.—Count Czernin, Austro-Hungarian Foreign Minister, in a speech reported October 3, threatened stiffer demands if the offers made were not accepted, and at the same time explained Austria's sudden shift to the policy of reduced armaments:
In conclusion, Count Czernin threatened that unless peace without annexations or indemnities were immediately accepted it would be necessary for Austria-Hungary to revise its program and seek compensation for further costs of the war.
Arguing that competition in armaments after the war would mean economic ruin for all states and declaring that Austria-Hungary had not been prepared for war and had only made up during the conflict for her former neglected military equipment, Count Czernin continued:
"This war taught us that we must reckon on a great increase in former armaments. With unrestricted armaments the nations would be compelled to increase everything tenfold and the military estimates of the great powers would amount to millions.
"That is impossible. It would mean complete ruin. To return to the armament status of 1914 would be a great reduction, but there would be no meaning in not going further and actually disarming. Hence complete disarmament is the only issue from the difficulty.—N. Y. Times, 3/10.
CARDINAL GASPARRI AGAINST CONSCRIPTION.—Commenting, September 22, on the German note, Cardinal Gasparri, the Papal Secretary of State, proposed the suppression of conscription as the easiest measure to secure peace.
"President Wilson's proposal to reduce armaments and impose international arbitration by force through a society of nations is a dream," said Cardinal Gasparri. "An international army to enforce the verdicts of the court of arbitration? In which country would it be located without being influenced by local politics and prejudices? The moon is the only place possible.
"All the other inconveniences and objections could be avoided by suppressing conscription, with the proviso that it could not be re-established without a law approved by the people, which in normal conditions would be improbable, indeed morally impossible.—N. Y. Times, 23/9.
ALSACE, NOT BELGIUM, PREVENTS PEACE.—Debate on peace terms was renewed at a plenary sitting of the Reichstag on October 9, in the course of which Secretary von Kühlmann declared Alsace-Lorraine the real stumbling block to peace.
"The great question prolonging the struggle," he said, "is not the future of Belgium, but that of Alsace-Lorraine. Great Britain, according to our information, has pledged herself to France that she will continue the fight for the conquest of Alsace-Lorraine both politically and with her armies so long as France desires to adhere to the program of regaining those provinces
"There is but one answer to the question, ‘Can Germany in any form make concessions with regard to Alsace-Lorraine?' That answer is no. So long as one German hand can hold a gun the integrity of the territory handed down to us as a glorious inheritance by our forefathers can never be the object of negotiations or concessions.
"When it seemed expedient to France to accept the formula ‘without annexations' the French resorted to the transparent trick of bashfully covering up with the word ‘disannexation' what is in reality a bare-faced and forceful conquest. The trick is really too clumsy to be worthy of repute. Now, except for France's demand for Alsace-Lorraine, there is absolutely no impediment to peace, no question which could not be solved by negotiations or a settlement in such a way as to render superfluous the further sacrifice of blood.
"Our enemies heretofore have been careful not to reveal their real war aims. What they have told the world is a maximum program, which can only be realized after the complete military defeat of the Central Powers.
"The German Government has never answered this program because we believe in dealing with real sober facts. To our opponents' assertions that they cannot obtain a clear conception of our intentions is our reply to the Pope, and the parliamentary discussions in connection with this. They leave no doubt in the minds of anyone who wishes to understand the essential principles of our peace program."—N. Y. Times, 11/11.
GREAT BRITAIN ON THE ALSACE ISSUE.—London, October 11.—Premier Lloyd George, addressing a delegation of insurance committees, on October 11, said he could not think of any statement more calculated to prolong the war than the assertion of the German Foreign Secretary, von Kühlmann, that Germany would never contemplate the making of concessions to France respecting Alsace-Lorraine.
However long the war lasted, said Mr. Lloyd George, England intended to stand by her gallant ally, France, until she redeemed her oppressed children from the degradation of a foreign yoke. This meant that the country must husband its resources, and, when demands were put forward for improvements here and there, his answer was: "Concentrate upon victory."
Addressing a war aims meeting at Liverpool to-night, H. H. Aisquith, former Premier, referred to recent declarations by German statesmen and writers. He said that his previously expressed skepticism regarding the Reichstag's peace resolution was justified by events, for the German parties had been squabbling ever since with infinite acrimony concerning its orthodox interpretation, and confusion had become worse than confounded with the publication of the Chancellor's reply to the Papal note.
"Depend upon it, the world will never find the way to peace through a morass of equivocations and ambiguities. Plain questions and concrete cases are studiously avoided. We are left in the dimness of a rhetorical twilight and we are asked to lay down our arms without other safeguard than that we shall be offering a unique exhibition of the three virtues, faith, hope, and charity."
Admitting that nobody pretends that it would be right for either side to formulate an ultimatum, detailed and exhaustive, which must be accepted chapter and verse as an indispensable condition of peace, and that many things must be left for accommodation and adjustment by negotiation, Mr. Aisquith said that at the same time the Allies must be resolute and definite in their assertion of the means by which peace must be attained.
He referred to the speech of von Kühlmann respecting Alsace-Lorraine and said :
"German diplomacy is not celebrated for deftness, but even in its annals it will be difficult to find a more clumsy or more transparent maneuver than this maladroit attempt to sow discord between ourselves and our French ally. Von Kühlmann relegates the Belgian question to a secondary position.
"I have formerly asked whether Germany was ready to restore Belgium in the only real sense acceptable to the Allies, but I have received no answer, and von Kühlmann, who can be boisterously definite and precise concerning Alsace-Lorraine, preserves regarding Belgium an unbroken, but significant, silence."—N. Y. Times, 10/12.
ALLIES TIGHTEN BLOCKADE
GREAT BRITAIN DECLARES ABSOLUTE EMBARGO.—London, October 2.—The Gazette prints a proclamation prohibiting the exportation to Sweden, Norway, Denmark, and the Netherlands of all articles, except printed matter of all descriptions and personal effects accompanied by their owners.
Washington, October 2.—Concerted action on the part of the allied countries to isolate Germany from the rest of the world and end all possibility of the neutral nations of Europe supplying her with foods and ammunition, no matter what the consequence may be, is seen here in the proclamation published in London placing an absolute embargo on the exportation of commodities to Sweden, Norway, Denmark, and the Netherlands, known as the northern neutral group.
The United States took the lead in this movement on July 15, when, by Presidential proclamation, it declared an absolute embargo on the exportation of all products to these countries. Since that time not so much as an ounce of food or fodder, or the smallest quantity of any wartime material, has gone to the northern neutrals of Europe.
So far as the United States was concerned the British blockade was unnecessary, and the embargo also was a much more effective weapon.
It is considered likely here that France, Italy and the other countries aligned against Germany in the war will follow the lead taken by America and Great Britain.—N. Y. Times, 3/10.
COMMERCIAL CABLES TO HOLLAND SHUT OFF.—Amsterdam, October 11.—Great Britain has stopped all commercial cable communication with Holland until such time as the Netherlands Government places an absolute restriction on the transit of sand, gravel, and scrap metal through Holland from Germany to Belgium.
UNITED STATES WITHOLDS BUNKER COAL.—To shut off trade between the American continent and Germany by way of "border neutrals," the United States Exports Administrative Council on October 4 announced its decision to refuse coal to neutral vessels, "unless the governments involved agree to terms which the United States sets down." According to the statement published October 5:
"The oilfields of Mexico and the wheat crops of South American countries are by this order cut off absolutely from Germany and the European neutrals unless the shippers who would aid them can obtain coal necessary for the operation of merchant vessels from some source other than the United States. The action will serve to tie up in American and other ports practically all of the neutral shipping unless the governments involved agree to terms which the United States sets down, which will provide either for carrying only cargoes of which the Administrative Board approves or putting their vessels into trade channels which do not reach neutral Europe.
"By taking this attitude the United States does not declare illegal the trade between Mexico, South American countries, and the European neutrals, but simply refuses to be a party thereto by supplying coal to the vessels engaged in it, a right which this government as a belligerent re serves where it appears that the enemy is benefiting."
HOLLAND'S EXPORTS TO GERMANY.—Washington, September 29.—An authentic translation of the negotiations which were made the basis of the German-Dutch agreement of December 1, 1916, and which has come into the hands of government officials, is presented here for the first time.
The United States, it is understood, has taken the position that Holland cannot expect it to aid in feeding the Dutch cattle to produce fats for Germany. While Holland clings to such an agreement, in order to obtain coal and other commodities from Germany, she must depend upon her own resources to keep up her end of the bargain.
The negotiations show that Germany, in the direst need for fats to feed her armies, demanded that Holland give her by far the greater proportion of certain essential exports. Here are a few of the demands:
At least 75 per cent of the total exports of butter.
At least 66-2/3 per cent of the total exports of export cheese.
At least as much pig meat and sausage as was exported to other countries, including exports for the relief of sufferers in Belgium.
At least the same amount of live cattle or meats as was exported to other countries.
At least 75 per cent of the total exports of vegetables.
At least 75 per cent of the total exports of fruit and marmalade.
At least 75 per cent of the total exports of fresh and preserved chickens' and ducks' eggs.
At least half the total exports of flax. .
This compact has been generally accepted as an illuminating example of the situation which existed while Germany, practically cut off from the world except for the aid that the European neutrals might give, was negotiating not only with Holland, but with the other neutrals for the kinds of foods—principally fats—which were as vital to the maintenance of her armies as guns, ammunition and high explosives.—N. Y. Times, 30/9.
AMERICAN WAR MEASURES
GOVERNMENT TAKES OVER SHIFFING.—Washington, October 12.—As a war emergency measure the United States Shipping Board will requisition all American ocean cargo and passenger-carrying vessels of over 2500 tons on October 15. This action is taken as a means of effectively controlling and regulating ocean freight rates and to enable the government to obtain prompt command of the sea tonnage it needs for war uses. The limit probably will be lowered soon to include vessels of more than 1500 tons.—N. Y. Times, 13/10.
GOVERNMENT CONTROL OF FOOD STUFFS.—Washington, October 10.—President Wilson issued a proclamation to-night setting forth the terms under which the Food Administration, after November 1, would control the manufacture, storage, importation, and distribution of practically all of the essential foodstuffs. In it he gave warning that any person, firm, corporation, or association violating the regulations laid down would be subjected to the penalties provided for in the Food Control Bill.
All of the great packing and wholesale concerns which have been accused of controlling the market in the food staples are included in the licensing system created by the proclamation. The President has power to extend the regulations.—N. Y. Times, 11/11.
ORDER TO ENFORCE TRADING WITH ENEMY ACT.—On October 6, President Wilson signed the Trading With the Enemy Act, and on October 14 issued an order creating executive machinery for carrying into effect the drastic powers granted by this act and by the Espionage Act of June 15, 1917.
Powers Conferred by the Act.—According to a statement accompanying the order of October 14, the Trading With the Enemy Act contains the following provisions:
1. It has added to the power to embargo all exports conferred upon the President by the Espionage Act, the power to prohibit all imports into the United States except under licenses.
2. It has conferred the power to prohibit or regulate all transfers of credits, money, currency, bullion, and securities between the United States and all foreign countries.
3. It imposes severe criminal penalties on all persons who trade or communicate directly or indirectly with an "enemy" or "ally of an enemy," or with any person acting on their behalf.
4: It provides for the use in the United States of enemy-held patents which may be of assistance to us in carrying on the war.
5. It provides for taking over and administering the property in the United States of "enemies” and "allies of enemies.”
6. It confers upon the President complete power to censor all communications of every sort passing between this country and any foreign country.
7. It provides certain regulations with regard to the foreign-language press in the United States.
MACHINERY CREATED BY ORDER OF OCTOBER 14.—The following extracts from the statement issued in the Executive Order of October 14 explain its contents and purpose:
Certain of the powers conferred by the Trading With the Enemy Act the President has directed to be exercised through the State Department, the Treasury Department, the Attorney General, the Post Office Department, the Commerce Department, and the Federal Trade Commission. As to many of the powers conferred upon the President by Congress in this act, no single existing department is interested, and the President has provided for their joint administration by a War Trade Board composed of representatives of the departments which are most vitally concerned.
Exports.—The War Trade Board succeeds to all the functions which have been exercised by the Exports Administrative Board. The proclamations of the President forbidding the export of various articles without a license are continued in full force and effect, but licenses will hereafter be granted by the War Trade Board, instead of by the Exports Administrative Board.
Imports.—The Trading .With the Enemy Act confers upon the President the power to prohibit the importation of any article or to impose the terms and conditions upon what may be imported. No proclamation has yet been issued by the President imposing any such prohibition or restriction, but upon the issuance of such proclamation the licensing of such importations will be done by the War Trade Board.
Trading With the Enemy.—The Trading With the Enemy Act makes it unlawful under severe penalties, to trade without a license with any person who, there is probable cause to believe, is an enemy or ally of enemy. The act gives an extremely broad definition of what constitutes trade. It provides that "trade" shall be deemed to mean:
(a) To pay, satisfy, compromise, or give security for the payment or satisfaction of any debt or obligation.
(b) To draw, accept, pay, present for acceptance or payment, or indorse any negotiable instrument or chose in action.
(c) To enter into, carry on, complete, or perform any contract, agreement, or obligation.
(d) To buy or sell, loan or extend credit, trade in, deal with, exchange, transmit, assign, or otherwise dispose of or receive any form of property.
(e) To have any form of business or commercial communication or intercourse with.
The definition of "an enemy" or "an ally of an enemy requires careful consideration. In the first place, any person, no matter of what nationality, who resides within the territory of the German Empire or the territory of any of its allies or that is occupied by its military forces is expressly made an enemy" or "ally of enemy" by the act. Even citizens of the United States who have elected to remain within such territory are "enemies" or " allies of the enemy" within the provisions of the act. Further, any person not residing in the United States, of whatever nationality and wherever he resides, who is doing business within such territory, is placed within the definition of "enemy" or "ally of enemy." So also is any corporation created by Germany or its allies. So also is any corporation created by any other nation than the United States and doing business within such territory. Further, for the purposes of this act, the government of any nation with which the United States is at war or the ally of such nation and every subdivision of such government and every officer, official agent, or agency of such government is an "enemy" or "ally of enemy," and the act makes no restriction as to where such officer, official, agent, or agency may be located.
It is important for the public to have clearly in mind that not only is it unlawful to trade with an "enemy" or "ally of enemy" without license, but it is equally unlawful to trade with any person, who, there is reasonable cause to believe, is acting for or on account of or for the benefit of an "enemy" or "ally of enemy," and it makes no difference what the nationality or what the residence of such person may be. On the other hand, in dealing with subjects of Germany who are resident in the United States, it is important to remember that, while other provisions of law make it possible to intern them, the mere fact of their nationality does not make them "enemies" within the meaning of this act, and so prevent persons in this country from having ordinary commercial relations with them.
The Trading With the Enemy Act, however, while imposing such stringent provisions, gives power to the President to grant licenses to trade with the enemy. The exercise of this power has been delegated by the President to the War Trade Board. Applications for license to trade with an "enemy" or "ally of enemy," or a person acting on behalf of or for the benefit of an "enemy" or "ally of enemy" should be sent to the War Trade Board.
Communicating With the Enemy.—The Trading With the Enemy Act prohibits and imposes severe penalties on taking or sending any communication in any form out of the United States intended for any enemy or ally of the enemy, and also makes it unlawful to bring in or take out of the United States any form of communication except by mail. Power is given by the act, however, to relieve from these prohibitions by license, and the Secretary of the Treasury is empowered by the President to receive applications for and grant such licenses.
War Trade Council.—In addition to the War Trade Board, the President has created a War Trade Council, composed of the Secretary of State, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Commerce, the Food Administrator, and the Chairman of the United States Shipping Board. This War Trade Council will take the place of the Exports Council and will act in an advisory capacity in such matters as may be referred to it by the President or the War Trade Board.
Patents.—The act contains various provisions as to the application for patents by citizens of the United States in enemy and ally of enemy countries during the war, and for the use in the United States by citizens of the United States of enemy-held patents during the war, and also for the suspension of information as to certain patent applications made in the United States, secrecy as to which is necessary for military reasons. The Federal Trade Commission is empowered by the President to deal with all these matters, receiving applications and granting licenses with regard to them.
Custody of Enemy Property.—Among the most important and far-reaching of the provisions of the Trading With the Enemy Act are those dealing with the taking over by this government of the custody and control of "enemy" property within the United States.
The Alien Property Custodian may, under the provisions of the executive order, require a transfer to himself of any property held for or on behalf of an “enemy" or "ally of enemy," or the payment of any money owed to an "enemy" or "ally of enemy” by a person in the United States. In addition, any person in the United States so holding any property or so owing any money may transfer such property or pay such money to the Alien Property Custodian with his consent.
Foreign Exchange.—The President by his executive order has committed to the Secretary of the Treasury the executive administration of the broad powers conferred by the act as to the prohibition and regulation of transfer between the United States and foreign countries of coin, currency, bullion, credits and securities. The Secretary of the Treasury will continue, with the assistance of the Federal Reserve Banks, to pass on applications for leave to export bullion, coin, and currency. No prohibitions or regulations have as yet been made as to the transfer of credits or securities between the United States and foreign countries.
Censorship Board.—The President has created a Censorship Board to administer such regulations as he may prescribe as to the censorship of cable, telegraph, and mail communications between the United States and foreign countries. This board is composed of representatives respectively of the Postmaster General, of the Secretary of War, of the Secretary of the Navy, of the War Trade Board, and of the Chairman of the Committee on Public Information.
Foreign Language Press.—The Trading With the Enemy Act provides that every paper printed in a foreign language shall furnish translations to the Postmaster General of the matter concerning the war printed by it, unless a permit to omit doing so is granted to it. The administration of this provision is committed to the Postmaster General, and applications for such permits should be made to him.
Transporting an Enemy.—The act provides that it shall be unlawful for any person without a license to transport or attempt to transport into or from the United States, or for any American vessel to transport in any part of the world any citizen of an enemy or allied enemy nation. The administration of this provision is vested in the State Department, and authority is given the Secretary of State to grant the necessary licenses for such transportation.
Clearance Provisions.—Collectors of Customs are given the right to refuse clearance vessels which are transporting cargo in violation of the provisions of the Trading With the Enemy Act. Power to review such refusal of clearance by the Collector is vested in the Secretary of Commerce by the executive order of the President.—N. Y. Times, 15/10.
GERMANY
CHANCELLOR USES MUTINY PLOT TO AVERT CRISIS.—In the closing sessions of the Reichstag, during the week which ended October 19, Chancellor Michaelis was forced to reveal the mutiny in the German Navy as a means of averting a threatened vote of censure from a coalition of Center, Progressive, and Socialist parties in the Reichstag. The opposition of this majority was centered chiefly upon Vice Chancellor Helffereich, as a minister held in power by Berlin banking interests. It supported also a resolution condemning the government's attitude toward the propaganda of the new Pan-German "Fatherland Party," wide-spread in the army and public press, which interfered with efforts for peace by negotiation and conciliation.
By connecting the mutiny with socialist influence in the navy, and by the charge that leaders of the mutiny had consulted and received the approval of radical socialist members of the Reichstag, the Chancellor drew off the Centrists and Progressives and left the Socialists in a minority. By this victory, however, he brought the moderate and radical wings of the Socialist party into unified opposition to the government. Attacks on the Michaelis Cabinet were made freely in the Socialist Convention at Würzburg, Bavaria, on October 14.
SOCIALIST DEPUTIES TO PE PROSECUTED.—Copenhagen, October 15.—The Hamburg Fremdenblatt says the German Government had decided to prosecute, if possible, Haase, Dittmann, and Vogtherr, the Socialist deputies whose names recently were linked with the mutiny in the German fleet. The government has submitted evidence against the three deputies to the Imperial Court at Leipsic and, therefore, has declined the suggestion that a Parliamentary committee of investigation be appointed.
RESIGNATION OF ADMIRAL VON CAPELLE.—News of the resignation of Vice Admiral von Capelle was published on October 12.
While the withdrawal of von Capelle was undoubtedly hastened by the tense political quarrel with the Socialists and others in the Reichstag on account of his official revelation of the German naval mutiny, it is not thought here that this was the underlying cause of his withdrawal, which is regarded as marking the failure of Germany's naval campaign last summer. Not only has the U-boat campaign reached a point where American war risk insurance could be reduced on account of the lesser number of sinkings, and where there is no chance for the starvation of England, but in other directions the German Navy has been without accomplishment during the summer.
The German high seas fleet, since the battle of Jutland, has failed to engage the British Navy in battle for supremacy of the seas. What is even more important to Germany, the U-boats, in addition to their failure to shut down supplies for England to the point where it would mean starvation, have also failed to interrupt the steady flow of convoyed American soldiers and munitions to France.
Not one American soldier has been lost in the great task of affording safe sea transportation to the expedition, and no convoyed American supply ship has yet been lost.—N. Y. Times, 13/10.
RUSSIA
NEW COALITION CABINET.—Petrograd, October 10.—The new Coalition Government has assumed control of Russia, replacing the Council of Five organized a month ago. Announcement is made that it intends to carry out an active foreign policy with "the purpose of making peace in agreement with our allies as soon as possible.”
Following is the official list of the Cabinet, which includes four members of the Constitutional Democrats and one Independent:
Premier, A. F. Kerensky.
Minister of Foreign Affairs, M. I. Terestchenko.
Minister of Interior, M. Nikitin.
Minister of Agriculture, M. Avskentieff.
Minister of Labor, M. Gvozdeff.
Minister of Supplies, M. Prokopovitch.
Minister of Finance, M. Bernatzky.
Minister of Religion, K. Kartasheff.
Minister of Public Welfare, M. Kishkin.
Minister of Trade and Industry, A. I. Konovaloff.
State Controller, M. Smyrnoff.
Minister of Justice, M. Malyantovitch.
Minister of Education, M. Salaskin.
President of the Eumenical Council, M. Tretyakoff.
Minister of War General Verkhovsky.
Minister of Marine, Admiral Verdervski.
Minister of Ways and Communications, M. Liverevsky.
A. I. Konovaloff, Minister of Trade and Industry, has been appointed Vice-President of the Council of Ministers.
The new government pledges that its business acts will be on the basis of agreements between representatives of the burgeoisie, the tax-paying elements and the revolutionary democracy. It points out that the success of such a program is possible only if the nation is united. The government's statement in conclusion says that it has three principal aims:
To raise the fighting power of the army and navy.
To bring order to the country by fighting anarchy.
To call the Constituent Assembly as soon as possible.—N. Y. Times, 11/10.
PRELIMINARY PARLIAMENT.—In accordance with a resolution adopted by the Democratic Congress during its session at Petrograd, a Preliminary Parliament was organized pending the election of a Constituent Assembly. It was decided that the Parliament should consist of 231 members representing Constitutional Democrats as well as Socialist parties, and that it should be strictly subordinate to the Cabinet, exercising only consultative and advisory powers. The first meeting of the Parliament was set for October 20.
CONCESSIONS TO POLAND.—Petrograd, October 16.—M. Terestchenko, Minister of Foreign Affairs, at a meeting last night in observance of the one hundredth anniversary of the death of Kosciusko, the Polish patriot, announced that it was the conviction of the Entente Powers that "any peace should recognize the independence of an indivisible Poland."
This differs from the declaration issued by the Provisional Russian Government last March in which it urged that Poland should be given autonomy under nominal Russian guidance.
Amsterdam, October 16.—Emperor William has sent the following message to General von Beseler, the German Governor General of Poland:
“I have found it advisable, in agreement with my illustrious ally, the Emperor of Austria-Hungary, and in the spirit of Article I of the decree of September 12, 1917, to install as members of the Council of Regency of the Kingdom of Poland the Archbishop of Warsaw, Alexander von Laeksoki; the Mayor of Warsaw, Prince Lubomirsky, and the landed proprietor Joseph Honostrowski."
The decree of September 12 transferred the supreme authority in Poland to a Council of Regency of three members. The legislative power is to be exercised by the council, all of whose decrees must be countersigned by a responsible Premier.
One of the first tasks of the council will be the appointment of a Premier, which must be sanctioned by Germany and Austria-Hungary.
The decree called for the reorganization of the Polish State Council with increased authority.—N. Y. Times, 17/10.
SWEDEN
As a result of the September election in Sweden, the Brantung Socialists returned 86 members to Parliament; Extreme Socialists, 12; Liberals, 62; Conservatives, 58; Peasant Factions, 12. The Brantung pluralty is supposed to represent opposition to the government foreign policy.
On October 2 the Swarz Ministry, in which Admiral Lindeman was Foreign Minister, resigned. On October 12, King Gustave requested M. Widen, a moderate Liberal, to construct a ministry solely of Liberals. It is understood that Hjalmar Brantung, the powerful Socialist leader, preferred to remain independent of the government.
SOUTH AMERICA
ARGENTINA AVOIDS RUPTURE.—Following a vote of the Argentine Senate, 23 to 1, in favor of breaking off relations with Germany, the Chamber of Deputies, on September 25, took similar action by a vote of 53 to 18. The rupture was avoided, however, by the unwillingness of President Irogoyen, and by the receipt of a note from Germany expressing disapproval of the outgivings of her representative in Argentina.
PERU AND URUGUAY SEVER RELATIONS.—Peru broke off diplomatic relations with Germany on October 6. A note to the United States, received October 11, contained the following passage explaining the action and expressing Peru's desire for American continental solidarity:
"It was the Peruvian Government's wish that the policy of the whole continent be a concerted ratification of the attitude of the Washington Government, which took up the defense of neutral interests and insisted on the observance of international law. But the course of events did not result in joint action; each country shaped its course in defense of its own invaded rights as it was individually prompted in its adherence to the principles declared by the United States. Peru, for its part, while endeavoring to give prevalence to a uniform continental policy, maintained with the utmost firmness the integrity of its rights as a sovereign nation in the face of Germany's disregard of the principles of naval warfare.
"It was the defense of those rights which led it to sever its diplomatic relations with the Imperial Government as the result of an outrage for which it duly but vainly claimed appropriate reparation—the sinking of the Lorton by a German submarine on the coast of Spain while the ship was plying between neutral ports engaged in a lawful trade without infringing even the German rules respecting closed zone unknown to international law."
URUGUAY, on October 7, severed relations with Germany following a vote of the Chamber of Deputies in favor of such action, 74 to 23. President Viera, in his message to the Parliament, declared that Uruguay had not received any direct offense from Germany, but that it was necessary to espouse the cause of the defenders of justice, democracy, and small nationalities.
Uruguay, on May 1, sent a note to London and Paris, asking for information as to the sinking of the Gorizia, a Uruguayan ship, and later made a protest to Germany. In May it joined in the suggestion for concerted action by South American countries toward Germany. On September 14 the Uruguayan Government, in a note to Argentina, approved the action of the Buenos Aires Government in handing his passports to Count von Luxburg. At the same time, Uruguay seized the German ships in her harbors and interned the crews.
ECUADOR BARS GERMAN ENVOY.—On October 8 the Government of Ecuador announced that it would not receive Dr. Perl, the German Envoy, in case he should attempt to come to Quito from Peru. Dr. Perl was appointed minister to both Peru and Ecuador, but his credentials, sent by mail, had not been accepted by the Ecuador Government.
The action of Peru, Uruguay and Ecuador left Argentina and Chile in the south, and Venezuela and Columbia in the north, the only neutral South American states.