The Audacious War

Copyright, 1914 and 1915, by the Boston News Bureau Company

Copyright, 1915, by Clarence W. Barron

All Rights Reserved

Published February 1915

THIRD IMPRESSION

IF!

Suppose 't were done!

The lanyard pulled on every shotted gun;

Into the wheeling death-clutch sent

Each millioned armament,

To grapple there

On land, on sea and under, and in air!

Suppose at last 't were come-

Now, while each bourse and shop and mill is dumb

And arsenals and dockyards hum,-

Now all complete, supreme,

That vast, Satanic dream!-

Each field were trampled, soaked,

Each stream dyed, choked,

Each leaguered city and blockaded port

Made famine's sport;

The empty wave

Made reeling dreadnought's grave;

Cathedral, castle, gallery, smoking fell

'Neath bomb and shell;

In deathlike trance

Lay industry, finance;

Two thousand years'

Bequest, achievement, saving, disappears

In blood and tears,

In widowed woe

That slum and palace equal know,

In civilization's suicide,-

What served thereby, what satisfied?

For justice, freedom, right, what wrought?

Naught!-

Save, after the great cataclysm, perhap

On the world's shaken map

New lines, more near or far,

Binding to king or czar

In festering hate

Some newly vassaled state;

And passion, lust and pride made satiate;

And just a trace

Of lingering smile on Satan's face!

-Boston News Bureau Poet.

This poem has been called the great poem of the war. It was written just preceding the war, and published August 1 by the "Boston News Bureau." Of it, and its author, Bartholomew P. Griffin, the following was written by Rev. Francis G. Peabody: "The English poets, Bridges, Kipling, Austin, and Noyes, have all tried to meet the need and all have lamentably failed. I am proud not only that an American, but that a Harvard man, should have risen to the occasion."

PREFACE

The Scotch have this proverb: "War brings poverty. Poverty brings peace. Peace brings prosperity. Prosperity brings pride. And pride brings war again." Shall the world settle down to the faith that there is no redemption from an everlasting round of pride, war, poverty, peace, prosperity, pride, and war again?

But it was not primarily to settle, or even study this problem that I crossed the ocean and the English Channel in winter. As a journalist publishing the Wall Street Journal, the Boston News Bureau, and the Philadelphia News Bureau, and directing news-gathering for the banking and financial communities, I deemed it my duty to ascertain at close hand the financial factors in this war, and the financial results therefrom.

I found myself on the other side, not only in the domain of the finance encircling this war, but unexpectedly in close touch with diplomatic and government circles. The whole of the war, its commercial causes, its financial and military forces, its tremendous human sacrifices, the conflicting principles of government, and the world-wide issues involved, all lay out in clear facts and figures after I had gathered by day and night from what appeared at first to be a tangled web.

I learned who made this war, and why at this time and for what purposes, present and prospective; and from facts that could not be set down categorically in papers of state. No papers, "white," "gray," or "yellow," could present a picture of the war in its inception and the reasons therefor.

There is no powerful organization over nations to keep the peace of Europe or of the world, as nations are in organization over states, and states over cities, to insure peace and justice, without strife or human sacrifice.

The immediate causes of this war, and I believe they have not before been presented on this side of the ocean, are connected with commercial treaties, protective tariffs, and financial progress.

It may be wondered that in our country, which is the home of the protective tariff system and boasts its great prosperity therefrom, there has been as yet no presentation of the business causes beneath this war. Our great journalists are trained to find interesting, picturesque, and saleable news features from big events. Details of war's atrocities and destructions are to most people of the greatest human interest, and rightly so. As a country we have no international policy, and European politics and policies have never interested us.

Germany is buttressed by tariffs and commercial treaties on every side. Years ago I was told in Europe that the commercial treaties wrested from France in 1871 were of more value to Germany than the billion dollars of indemnity she took as her price to quit Paris. But I did not realize until I was abroad this winter how European countries had warred by tariffs, and that Germany and Russia were preparing for a great clash at arms over the renewal of commercial and tariff treaties which expire within two years, and which had been forced by Germany upon Russia during the Japanese War.

German "Kultur" means German progress, commercially and financially. German progress is by tariffs and commercial treaties. Her armies, her arms, and her armaments, are to support this "Kultur" and this progress.

I believe I have told the story as it has never been told before. But the facts cannot be drawn forth and properly set in review without some presentation of the spirit of the peoples of the European nations.

If all the nations of Europe were of one language, the spirit, the soul of each in its distinctive characteristics might stand out even more prominently than to-day.

Then we could see even more clearly the spirit of brotherhood and nationality that stands out resplendent as the soul of France. We should see the spirit of empire and of trade, interknit with administrative justice, as the soul of Great Britain. We should see Germany an uncouth giant in the center of Europe, viewing all about him with suspicion, and demanding to know why, as the youngest, sturdiest, best organized, and hardest working European nation, he is not entitled to overseas or world empire.

But few persons on this side have comprehended the relation of this great war to the greatest commercial prizes in the world; the shores of the Mediterranean, Asia Minor, with its Bagdad Railroad headed for the Persian Gulf, Mesopotamia with its great oil-fields, undeveloped and a source of power for the recreation of Palestine and all the lands between the Mediterranean, the Indian Ocean, and Asia.

The greatest study for Americans to-day is the spirit of nations as shown in this war, and great lessons for the United States may be found in the finance, business, patriotism, and justice that stand forth in the British Empire as never before. She is rolling up a tremendous war-power within her empire and throughout Europe, encircling the German war-power. But she is likewise looking to her own people and her own workers, filling her own factories and every laboring hand to the full that she may keep her business and profits at home, and with her business and profits and accumulated capital and income prosecute the greatest war of history.

She is not unmindful in any respect of what the war may send her way. In the breaking-away and the breaking-up of Turkey, she sees a clear field for Egypt, the realization of the dream of Cecil Rhodes of the development of the whole of Africa by a Cape to Cairo Railroad, and she sees her own empire and peoples belting the world in power, usefulness, and justice, and with a sweep and scope for enterprise and development beyond all the previous dreams of this generation.

The United States, with hundreds of millions of banking reserves released and giving base for a business expansion double any we have had before, seems suddenly paralyzed in its business activities and, comprehending only that the loaf of bread is a cent higher and a pound of cotton a few cents lower, it is wondering on which side of its bread the butter is to fall.

Meanwhile, it talks politics, asks if prosperity here is to come during or after the war; and having little comprehension of the meaning of the national throbs that on the other side of the globe are pulsating the world into a new era of light, liberty, and expansion by individual labor, it refuses to take up its daily home-task and go forward.

In the hope that these pages may be useful to my fellow countrymen in giving them the facts of this war, its commercial causes, its financial progress, its sacrifice in humanity,-sacrifice that could not be demanded but for a greater future,-these papers are taken, as completed in my financial publications in this month of February, and placed before the reading community in book form, as requested in hundreds of personal letters.

They were never conceived or written with any idea of their permanent preservation. They were prepared for the banking community, which demands news-facts and figures discriminatingly presented. The banker wants the truth; he will make his own argument and reach his own conclusions.

The reader will readily see that these chapters are day-to-day issues aiming to present that news from the standpoint of finance. But under all sound finance must be primarily the truth of humanity. They do not claim to be from beginning to end a harmonious book-presentation of the war, but it is believed that they contain the essential fundamental war-facts; and the aim was to present them in most condensed expression.

They cover the first six months of this most Audacious War. Whether it is to continue for another six months or another sixteen months is not so material as the character of the peace and what is to follow.

No greater problem can be placed before the world than that of how the peace of nations may be maintained. Having cleared my own mind upon this subject, I submit it in the final chapter, which naturally follows after that treating of the lessons for the United States from this war.

Only in an international organization, with power to make decrees of peace and enforce them, and with insurance of powers above those of all dissenters, can we find the peace of nations as we have found the peace of cities. This Audacious War has forced such an alliance as can yield this power. Its transfer to the support of an International tribunal can make and keep the peace of Europe and eventually of the world.

Then may the earth cease to be, in history, that steady round of

Prosperity, Pride, and War.

The Censorship-The Warship "Audacious"-Mine or Torpedo?-The Battle

Line-War by Gasolene Motors-The Boys from Canada-The Audacity of it.

The war of 1914 is not only the greatest war in history but the greatest in the political and economic sciences. Indeed, it is the greatest war of all the sciences, for it involves all the known sciences of earth, ocean, and the skies.

To get the military, the political, and especially the financial flavor of this war, to study its probable duration and its financial consequences, was the object of a trip to England and France from which the writer has recently returned.

One can hear "war news" from the time he leaves the American coast and begins to pick up the line of the British warships-England's far-flung battle line-until he returns to the dock, but thorough investigation would convince a trained news man that most of this war gossip is erroneous.

This war is so vast and wide, from causes so powerful and deep, and will be so far-reaching in its effects that no ill-considered or partial statements concerning it should be made by any responsible writer.

The difficulty of obtaining the exact facts by any ordinary methods is very great. There is a strict supervision of all news, and to insure that by news sources no "aid or comfort" is given to the enemy, a vast amount of pertinent, legitimate, and harmless news and data is necessarily suppressed. The censors are military men and not news men, and act from the standpoint that a million facts had better be suppressed than that a single report should be helpful to the enemy. Only in Russia are reports of news men from the firing line allowed.

One hears abroad continually of the battle of the Marne, of the battle of the Aisne, of the contest at Ypres, and the fight on the Yser, but no outside man has yet been permitted to describe any of these in detail, or to give the strategy, beginning, end, or boundaries of them, or even the distinct casualties therefrom. Indeed, it is doubtful if the official histories, when they are written, can do this, for these are the emphasized portions of one great and continuous battle that went on for more than one hundred days.

To illustrate the strength of the hand on the English war news, it may be noted that there is no mention permitted in the English press of such a ship as the "Audacious." Yet American papers with photographs of the "Audacious" as she sinks in the ocean are sold in London and on the Continent. Outside of London not ten per cent of the people know anything concerning this boat or her finish.

This word "finish" would be disputed in any newspaper or well-informed financial office in London where it is daily declared that although the "Audacious" met with an accident, her guns have been raised and will go aboard another ship of the same size, purchased, or just being finished, and named the "Audacious." Indeed, I was informed on "good authority" that the "Audacious" was afloat, had been towed into Birkenhead and that the repairs to her bottom were nearly finished. You can hear similar stories wherever the "accident" is discussed. I have heard it so many times that I ought to believe it. Yet if one hundred people separately and individually make assurances concerning something of which they have no personal knowledge, it does not go down with a true news man. I was able to run across a man who saw the affair of the "Audacious." He laughed at the stories of shallow water and raised guns. His position was such, both then and thereafter, that I was sure that he knew and told me the truth.

Later I learned that the "Audacious" was too far off the Irish coast to permit of talk of shallow water, and that neither guns nor 30,000-ton warships are raised from fifty-fathom depths.

Yet I am willing to narrate what has not been permitted publication in England, and I think not elsewhere: that the mines about Lough Swilly, along the Scotch and Irish coasts, and in the Irish Sea, were laid with the assistance of English fishing-boats flying the English flag. These boats had been captured by the Germans and impressed into this work.

There are also stories of Irish boats and Norwegian trawlers in this work, but I secured no confirmation of such reports.

It is still unsettled in British Admiralty circles as to whether the "Audacious" came in contact with a mine or torpedo from a German submarine. Two of her crew report that they saw the wake of a torpedo. Reports that the periscope of a submarine showed above the water I have reason to reject.

English reports were suppressed-the admiralty claimed this right, since there was no loss of life-in the belief that if the ship was torpedoed by a submarine, the Germans would give out the first report, and thereby be of assistance in determining the cause. But to-day the Germans have their doubt as to where the "Audacious" is, and as to whether or not she was ever really sunk.

Expert opinion is divided in authoritative circles in England as to the cause of the disaster; but more than 400 mines have been swept up along the Irish and Scotch coasts by the English mine sweepers.

While upon this subject, I ought to narrate that the study of this topic has convinced me that the Germans have a long task if they hope within a reasonable number of months to reduce by submarine torpedo practice the efficiency of the English navy to a basis that will warrant German warships coming forth to battle.

Every battleship is protected by four destroyers. Submarines, when detected, are the most easily destroyed craft. They have no protection against even a well-directed rifle bullet. Their whole protection is that of invisibility. Their plan of operation is to reach a position during the night, whence in the early morning they can single out an unprotected warship or cruiser not in motion, and launch against her side a well-directed torpedo, before being discovered.

The place for England's battleships is where they are: in the harbors with their protecting nets down until they are called for in battle. In motion or action, submarines have little show against them.

The Japanese at Port Arthur found that protecting nets picked up many torpedoes and submarines. Since that time, torpedoes have been made with cutting heads to pierce steel nets encircling the warships, but their effectiveness has not so far been practically demonstrated.

It is Kitchener's idea to keep the enemy guessing. Therefore he was rather pleased than otherwise when the story of Russians coming through England from Archangel was told all over the world. The War Office winked at the story and certainly had no objection to the Germans getting a good dose of it. I think that story might have been helpful at the time when the Allies were at their weakest, but they do not now need Russians, or stories of Russians, from Archangel.

The story must also go by the board that a submarine north of Ireland meant either a new type of boat that could go so far from Germany, or an unknown base nearer Scotland.

Submarines as now built could go from Germany around the British Isles and then across the Atlantic-in fair weather.

The eastern boundary of France divides itself into four very nearly equal sections. Italy and Switzerland are the lower quarters of this boundary line; and of the upper quarters Belgium is the larger and Germany the smaller. The southern half of the German quarter boundary is a mountain range and on the open sections stand the great fortifications of France and Germany, regarded by both countries as practically impregnable. The defence of France on the Belgian frontier was the treaty which guaranteed the neutrality of the smaller country.

When Germany's conquering hosts came through Belgium, the war soon became a battle of human beings rather than of fortifications. Neither the French nor the Germans had learned from practical experience the modern art of fighting human legions in ground trenches, but both sides quickly betook themselves to this rabbit method of warfare.

To-day from Switzerland to the North Sea is a double wall of 4,000,000 men, all fighting, not only for their own existence but for the existence of their nationality-their national ideals. They are protected by aeroplanes, flying above, that keep watch of any large movements.

They are backed by 4,000,000 men in reserve and training who keep the trenches filled with fighting men, as 10,000 to 20,000 daily retire to mother earth, to the hospitals, or to the camps of the imprisoned. On the North Sea and the English Channel they are supported by fleets of battleships, cruisers, submarines, and torpedo boat destroyers that occasionally "scrap" with each other, the German boats now and then attacking the English coast and harbors and the English boats now and then assisting to mow down the German troops when they approach too near the coast. But the great dread and key to this naval warfare is the modern submarine.

Submarines, aeroplanes, and motor busses are three elements of warfare never before put to the test; and the greatest of these thus far is the gasolene motor-car. By this alone Germany may be defeated. France and England are rich in gasolene motor power, and supplies from America are open to them. A year ago there were less than 90,000 motor-cars in Germany, and Prince Henry started to encourage motoring to remedy this, but the Germans are slow to respond in sport. Indeed they know little of sport as the English understand it, of sportsman ethics or the sense of fair play in either sport or war. They do not comprehend the English applause for the captain of the "Emden" and stand aghast at the idea that he would be received as a hero in England. When a daring aeroplane flier in the performance of his duty has met with mishap and, landed on German soil, he is not welcomed as a hero. He is struck and kicked.

The German is not to be blamed. It is the way he has been educated to "assert himself," as the Germans phrase it. Indeed, when the captain of the "Emden" was taken prisoner and was congratulated by the Australian commander for his gallant defense, he was so taken aback that he had to walk away and think it over. He returned to thank his adversary for his complimentary remarks. With true German scientific instinct he had to find his defeat in a physical cause, remarking, "It was fortunate for you that your first shot took away my speaking tubes."

The English are sports in war,-too sporty in fact. General Joffre warned General French over and over again, "Your officers are too audacious; you will soon have none to command," and his words proved true. The English officers felt that the rules of the game called upon them to lead their men. They became targets for the guns of the foe, until one of the present embarrassments in England is the unprecedented loss of officers.

This has now been changed and Kitchener insists that both officers and men shall regard themselves as property of the Empire, that the exposure of a single life to unnecessary hazard is a breach of discipline. For this reason Victoria Crosses are not numerous, less than two dozen having been conferred thus far; and it has been quietly announced that no Victoria Crosses will be conferred for single acts of bravery or where only one life is involved. It must be team work and results affecting many.

For this reason also it has been decreed that the 33,000 Canadians in training at Salisbury Plain shall not be put in the front until they have learned discipline in place of the American initiative.

These Canadian boys receive their home pay of four shillings, or $1 per day, while the English Tommy gets one quarter of this amount. The Canadians are fine fellows, feeling their independence and anxious to be on the firing line, but the War Office recognizes that soldierly independence cannot be allowed in this war. It is not improbable that the Canadian troops will eventually be dispersed that their strong individual initiative may be thoroughly harnessed under the organization before they are trusted in the trenches. They are not to be permitted to go there to be shot at, but to use their splendid physiques, fighting abilities, and patriotism-more British than the English themselves-in strict organization.

This is not to be an audacious war on the part of the Allies. It is first a defensive war in which the Germans are the heaviest losers. On the part of the Germans it is an audacious war and its very audacity has astounded the whole world. But Germany never meant to war against the world collectively. That was the accident of her bad diplomacy.

The audaciousness of Prussian war conceptions began in the latter part of the last century. They did not grow out of the war with the French in 1870, for Bismarck's legacy to the German nation was a warning against any war with Russia. The German scheme was concocted by the successor of Bismarck himself, none other than Kaiser William II. He planned a steady growth of German power that would first vanquish the Slav of southeastern Europe and give Germany control through Constantinople and Asia Minor to the Persian gulf; then, as opportunity arose, a crushing of France and repression of Russia; and the overthrow of the British empire; and then the end of the Monroe Doctrine, to be followed by American tariffs dictated from Germany.

This seems so audacious a program as to be almost beyond comprehension in America. Yet it will be made clear in the next chapter.

War with Russia was Inevitable-Finance and Tariffs made Germany great-Commercial War-How Germany loses in the United States-The Tariff Danger.

For the causes of this most audacious war of 1914 one must study, not only Germany and her imperial policy, but most particularly her relations with Russia. These relations are very little understood in America, but they become vital to us when open to public view.

Disregarding all the counsels of Bismarck and the previous reigning Hohenzollerns, the present Kaiser has steadily offended Russia. War with her within two years was inevitable, irrespective of any causes in relation to Servia. Russia knew this and was diligently preparing for it. Germany-the war party of Germany-knew it and with supreme audacity determined through Austria first to smash Servia and put the Balkan States and Turkey in alignment with herself for this coming war with Russia.

Sergius Witte is one of the great statesmen of Russia. He formulated the programme for the Siberian railroad and Russian Asiatic development. The party of nobles opposed to him arranged that he should receive the humiliation of an ignoble peace with Japan, under which it was expected that Russia would have to pay a huge indemnity.

But when Witte arrived at the naval station at Portsmouth, New Hampshire, to make the famous treaty with Japan, his first declaration was, "Not one kopeck for indemnity." He won out and returned in triumph to Russia.

But during the progress of the Japanese war Germany thrust her commercial treaties upon St. Petersburg. Goods from Russia into Germany were taxed while German goods went under favorable terms into Russia, with the result that Russia has had a struggle now for ten years to keep her gold basis and her financial exchanges.

It was Witte who was sent to Berlin to protest against these proposed treaties and secure more favorable terms. Witte made his protest and refused to accept the German demands. Then suddenly he received peremptory orders from the Czar to grant all the demands of Germany. The Czar declared Russia was in no condition to have trouble with Germany. These commercial treaties expire within two years. Russia many months back proposed the discussion of new terms. Germany responded that the present treaties were satisfactory to her and he should call for their renewal.

This meant either further humiliation to Russia or war. Russia had already suffered the affront of being forced by Germany at the point of the bayonet to assent to the taking by Austria of Bosnia and Herzegovina in violation of the Treaty of Berlin. The Czar realized many months ago that Russia must now fight for her commercial life. She would not, however, be ready for the war until 1916.

Let Americans consider what this means-a German war over commercial tariffs-and see what, if successful in Europe, it would lead to.

The German nation is a fighting unit under the dominion of Prussia, the greatest war state, not only of the empire, but of the world. Having welded Germany by the Franco-Prussian war into a nation with unified tariffs, transportation, currency, and monetary systems, Prussia has been able to point to the war as the cause of the phenomenal prosperity of Germany.

It is a popular fallacy in Germany that militarism makes the greatness of a nation. Germany's prosperity did not begin with the war of 1870. This was only the beginning of German unity which made possible unified transportation and later unified finances and tariffs. Several years after the war, France, which had paid an indemnity to Germany of a thousand million dollars, or five billion francs, was found, to the astonishment of Bismarck, more prosperous than Germany which had thus received the expenses of her military campaign and a dot of Spandau Tower war-reserve moneys.

In 1875 came the great Reichsbank Act, which consolidated all the banking power of the empire. Then came her scientific tariffs which put up the bars here, and let them down there, according as Germany needed export or import trade in any quarter of the earth. The German people, on a soil poorer than that of France, worked hard and long hours for small wages. But they worked scientifically and under the most intelligent protective tariff the world has ever seen. In a generation they built up a foreign trade surpassing that of the United States and reaching $4,500,000,000 per annum. By her rate of progress she was on the way to distance England, whose ports and business were open to her merchants without even the full English income tax. She built the biggest passenger steamers ever conceived of and reached for the freight carrying trade of the world. She mined in coal and iron and built solidly of brick and stone. She put the world under tribute to her cheap and scientific chemistry. She dug from great depths the only potash mines in the world and from half this potash she fertilized her soil until it laughed with abundant harvests.

The other half she sold outside so that her own potash stood her free and a profit besides. No nation ever recorded the progress that Germany made after the inauguration of her bank act and her scientific tariffs. The government permitted no waste of labor, no disorganization of industry. Capital and labor could each combine, but there must be no prolonged strikes, no waste, no loss; they must work harmoniously together and for the upbuilding of the empire.

Germany did not want war except as means to an end. She wanted the fruits of her industry. She wanted her people, her trade, and her commerce to expand over the surface of the earth, but to be still German and to bring home the fruit of German industry.

Germany has been at war-commercial war-with the whole world now for a generation, and in this warfare she has triumphed. Her enterprise, her industry, and her merchants have spread themselves over the surface of the earth to a degree little realized until her diplomacy again slipped and the present war followed-such a war as was planned for by nobody and not expected even by herself. She was giving long credits and dominating the trade of South America. She had given free trade England a fright by the stamp, "Made in Germany." She was pushing forward through Poland into Russia to the extent that her merchants dominated Warsaw and were spreading out even over the Siberian railroad. Her finance was intertwined with that of London and Paris.

In the United States she was the greatest loser. Here taxes were lowest and freedom greatest. German blood flowed in the veins of 20,000,000 Americans and not one fourth of them could she call her own. The biggest newspaper publisher in America, William Randolph Hearst, figured that New York was one of the big German cities of the world. He turned his giant presses to capture the German sentiment. He spent tens of thousands of dollars upon German cable news, devoting at times a whole page to cable presentations from Europe which he thought would interest Germans. But the investment proved fruitless; he found there was in America no German sentiment such as he had reckoned upon. He could not increase his circulation, for the German-Americans seemed little concerned as to what happened in Berlin or Bavaria.

Prussia learned what Hearst learned, that Germans were soon lost in the United States. She studied this exodus and the wage question and by various arts and organizations arrested the German emigration to America. She saw to it that employment at home was more stable. It was figured that if the German emigration could be centralized under the German eagle it would be to her advantage. The question was where to get land that could be made German. Europe has for some years expected a German dash in Patagonia, and the Europeans outside of Germany have taken very kindly of late years to the Monroe Doctrine. In Africa and the islands of the sea the German colonial policy has not been a success. Dr. Dernburg as colonial secretary has many a time stood up in the Reichstag and warned the Germans that the home military system and rules were not adaptable to colonization in foreign parts; that Germans must adapt themselves to foreign countries and not attempt at first to make their manners the standard in the colonies they undertook to dominate.

While German colonies have not yet passed beyond the experimental stage, German tariffs and German commerce have been great successes.

The population of Russia is 166,000,000 people. This is the latest figure I gathered from those intimate with the government at St. Petersburg. This is just 100,000,000 more than Germany. Germany thinks she must trade to her own advantage with the people now crowding her eastern border.

The example of America in putting up tariff bars against "Made in

Germany" has many advocates in England and in the rest of the world.

When France, only a few years ago, was angered that Italy should sign up in "triple alliance" with Austria and Germany, she did not dare to attack Italy with arms, but she did attack Italy by tariff measures, and for a time Italy and France fought-by tariffs.

What might be the position of Germany if the American protective tariff system were expanded over the earth? In the view of some people tariffs, taxation, and armaments go hand in hand. There is a town in Prussia that finished payment only twenty years ago on the indemnity Napoleon exacted from it.

Can a country afford to develop an industrial system dependent upon an outside world and then suddenly find the outside world closed by tariff barriers?

When an American ambassador protested against Bismarck's discriminatory treatment of American pork, the great chancellor asked, "What have you to talk with? You have no army or navy." "No," said the American ambassador, "but we have the ability to build them as big as anybody. Do you wish to tempt us?" "No," said the German chancellor, "and your goods shall not be discriminated against."

Dr. Dernburg has given the key to the German colonial military, tariff, and financial policy. German unity in tariffs and transportation has made German prosperity, and Dr. Dernburg, her former colonial secretary and now in New York, says the mouth of the Rhine and the channel ports must be free to Germany and that Belgium must come into tariff and transportation union with Germany. Belgium is being taxed, tariffed, pounded, and impounded into the German empire.

There is some difference in size between Belgium and Russia, but no difference in principle with respect to their German relations.

"World power or downfall," Bernhardi put it.