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The late Lord Strathcona and Mount Eoyal 

Brig.-Gen. The Hon. James Mason 

Brig.-Gen. Sir Henry M. Pellatt, c.v.o., D.C.L., A.D.C. 

The late Senator George A. Cox 

Sir J. W. Flavelle, Bart., LL.D. 

Cawthra Mulock, Esq. 

A. E. Ames, Esq. 
Sir Edmund Boyd Osier, M.P. 

The late R. Wilson-Smith 

The Rt. Hon. Lord Shaughnessy, K.C.V.O. 

A. J. Russell Snow, Esq., K.C. 

The late D. R. Wilkie 
Lieut.-Colonel J. Cooper Mason, D.S.O. 

The late J. R. Bond 
J. Castell Hopkins, Esq., F.S.S., F.R.G.S, 


Appointed Prime Minister of Great Britain in 1916. 















Copyright, Canada, 1917, Printed by 














The Progress and Environment of the War in 1916 17 

Position of Germany and Its Allies; Economic Conditions and Peace 

Proposals 33 

German War Methods and Submarines; Belgium and the Little Nations 48 

The Great Powers of the Entente; Prance, Russia and Italy in 3916. . 59 

The Balkans and the 'War: A Balance of Teuton Success in 1916 75 

Portugal and Japan in the War: The Lesser Neutral Nations 81 

Chronology of the War in 1916 89 


Great Britain: War Policy and General Position in 1916 101 

The British Navy and Army in the War: Submarines and Aeroplanes. 122 

Ireland and the War,' The Rebellion in Dublin ]33 

Australia in the War; Mr. Hughes and Conscription 145 

New Zealand and Newfoundland in the War 160 

India and South Africa in the War during 1916 t 166 

The British Empire as a Unit in the War 176 

The Empire after the War: Economic Changes and Proposed Policies. 184 

British Empire War Notes 190 


The General Situation in 1916; Prosperity, Pacificism and Preparedness 193 

United States Leaders and the War: The Presidential Elections 205 

Controversies with Germany; President Wilson's Diplomacy 216 

German Organizations in the United States; Threats Against Canada. . 221 

U. S. Peace Proposals; Germany's Action and the Allies' Position.... 227 

Incidents of American Relations to the World-War 235 


The Duke of Connaught's Last Year: A New Governor-General Ap- 
pointed 238 

Sir Robert Borden: Speeches and War Policy of the Year 245 

Military Administration of Sir Sam Hughes: Speeches and Policy.. 254 

The" Shell Committee and Sir Sam Hughes; The Making of Munitions. . 269 

^Military Affairs: The Ross Rifle and Canadian Aviation Efforts 296 

-Military Affairs: Recruiting Conditions and Policy 302 

MilitaTyAffftirs-^^e^iaiiatiuu and ?6^scription Proposals 318 

The ^National Service Plan: Speeches of Sir Robert Borden 325 

^ The French-Canadian Ministers; Nationalism and Recruiting 333 

The Financial Administration of Sir Thomas White 354 

Government War Policy; Sir George E. Foster and other Ministers.. 366 




Two War-Time Problems: Prohibition and BHingualism at Ottawa.. 387 

Parliament and the War : Burning of the Parliament Buildings 399 

v The Liberals and the War: Sir Wilfrid Laurier's Policy 409~>*** 

Women and the War; I.O.D.E.; Woman's Suffrage 418 * 

--Canadian Labour and the War: Alien Problems in Canada 429-^-* -" 

"The Churches of Canada and the War in 1916 434 -. 

Canadian War Notes of 1916: 

Pensions, Plans and Changes 439 

The Canadian Patriotic Fund 440 

The Canadian Eed Cross Society . 441 

The St. John Ambulance Association 442 

The British Eed Cross and Canada % 443 

Belgian and Other Relief Funds 443 

Patriotic Support for Sailors 444 

Industrial Research in Canada , 444 

Pacificism in Canada 445 


On the Way to the Front in 1916; Canadians in Britain. , 447 

Troops in Action; the 3rd Battle of Ypres, St. Eloi and Courcelette. . 459 

Canadian War Incidents, Casualties and War Honours. , 468 


The Hearst Government in 1916; Departments and Public Policy 480 

Legislation and Liberal Policy; Bye-Elections of the Year 494 

The Hydro-Electric Problems of the Year 503 

The Prohibition Question and Legislation in Ontario 515 

v The Bi-lingual Issue; The Pope's Encyclical and Privy Council Judg- 
ment 524 

The Ontario Nickel Question in its Provincial and other Relations. . 532 

The Hearst Government and the War; Mr. Rowell's Patriotic Attitude. 540 

Ontario Incidents and Conditions in 1916 546 

The University of Toronto 548 

Other Ontario Universities in 1916 549 

Porcupine and Its Mines , 550 

> Cobalt Silver Production 551 

Ontario 's Total Mineral Product * , . . . 552 

Agriculture and the Farms of Ontario 552 

N - The United Farmers of Ontario , 553 

The Berlin-Kitchener Issue 554 


% ' The Government of Sir Lomer Gouin; Administration and Politics. . 556 

^ Quebec and the War: The Bi-lingual Question 564 -. 

The two Quebec Legislative Sessions of 1916 573 

The General Elections of 1916 in Quebec Province 580 ^ 

^ The City of Montreal : Its Conditions and Problems .'86 

Higher Education in Quebec 593 

Quebec Incidents of Importance in 1916 594 




Government Legislation and Politics in Nova Scotia 597 

Education in Nova Scotia; The Prohibition Issue 604 

Nova Scotian General Elections of 1916; Party Policies 610 ' 

Nova Scotian Progress: War Conditions and Popular Action 615 

The Clarke Government and Politics in New Brunswick 618 

New Brunswick Legislation in 1916 ; The Prohibition Question 629 

Finances of New Brunswick ; Education and War Action 634 

Prince Edward Island in 1916 640 

Important Incidents in the Maritime Provinces, 1916 641 


The Norris Government; Political and General Conditions 644 

The 1916 Legislation of the Manitoba Government. . , 656 

The Parliament Buildings and Other Investigations 663 

Bi-lingualism and Compulsory Education in Manitoba 671 

The Prohibition Act; Manitoba and the War 677 

Education in Manitoba 685 

Higher Education and the University of Manitoba 687 

Manitoba Incidents of Importance t588 


Last Days of the Scott Government ; Politics and Departments 689 

The Saskatchewan Legislature in 1916 ; Charges of Corruption 696 

The Royal Commissions of Inquiry 704 

Bi-lingual, Separate School, and other Educational Conditions 711 

The Temperance Question: Government and the War 716 

The New Martin Government: Grain Growers and Provincial Produc- 
tion '. 719 

Higher Education and the University of Saskatchewan 725 

Incidents of the Year in Saskatchewan 726 


The Sif ton Government ; Administration and Politics 728 

Alberta Legislature and Charges of Corruption; Prohibition and Woman 

Suffrage , 736 

Alberta and the War ; Resources and Progress 743 

Higher Education and the University of Alberta 748 

Alberta Incidents of Importance in 1916 750 


The Bowser Government; Bye-Elections and Administration 751 

British Columbia Legislature: Enactments, Charges and Investigations 765 

The British Columbia General Elections 775 ^ 

The Province and the War 782 

British Columbia Incidents of Importance f '".\ 784 

The British Columbia University: Higher Education 786 



The Canadian Pacific Railway in 1916 788 

The Grand Trunk and Grand Trunk Pacific 790 

The Canadian Northern Railway System 792 

Transportation Incidents of 1916 794 


Canadian Resources and Development 795 

General Incidents of the Year 797 

Financial and Industrial Incidents * . . 803 

Canadian Obituary, 1916 808 

Index of Names 907 

Index of Affairs 922 


Canadian Finance and the War; Bank of Montreal Annual Addresses 

and Reports 844 

War and Finance in Canada; Canadian Bank of Commerce Annual 

Addresses and Reports 855 

Canada and the West Indies in War-Time; Royal Bank of Canada 

Annual Addresses and Reports 865 

Financial Conditions in Canada; Merchants Bank of Canada Annual 

Reports and Addresses 878 

Sun Life Assurance Co of Canada ; Annual Report and Statement .... 885 



WM. A. READ & CO., New York -. 893 






ASSURANCE CO., Toronto 901 






A. E. AMES & CO., Municipal Debentures, Toronto 903 

HOTEL BELMONT, New York 896 








FETHERSTONAUGH & CO., Patent Solicitors, Toronto 897 

LEY, Winnipeg 897 

LENNIE, CLARK & HOOPER, Vancouver 897 



J. L. Englehart and Northern Ontario 814 

Colonel A. E. Gooderham and Canadian War- Work 828 

Thomas Findley and the Massey-Harris Interests 824 

Lieut-Col. Noel Marshall and the Canadian Red Cross 826 

Lieut.-Col. W. S. Dinnick and War Organizations 834 

Charles N. Candee and Canadian Rubber Interests 832 

John Gowans Kent and the Canadian National Exhibition 840 



THE RT. HON. DAVID LLOYD GEORGE, M.P. Appointed Prime Minister 

of Great Britain , Frontispiece 


Appointed Governor-General of Canada 16 

THE RT. HON. WM. MORRIS HUGHES, P.O., M.P. Prime Minister of 

Australia in 1916 144 

THE RT. HON. ANDREW FISHER, P.C. Appointed Australian High 

Commissioner in London, 1916. . . 144 

ROBERT YOUNG HEBDEN. Chief Agent, Bank of Montreal, New York. . 256 

EDWARD FIELD HEBDEN. Managing Director, Merchants Bank of 

Canada, Montreal 256 

DAVID MACLACHLAN FINNIE. Appointed in 1916, General Manager 

of the Bank of Ottawa, Ottawa 304 

MICHAEL JOHN HANEY. Appointed President of the Home Bank 

of Canada 304 

LADY DRUMMOND. Head of the Information Department, Canadian 

Red Cross Society, London 208 

MRS. P. D. CRERAR. A leader in the l.O.D.E. and in war-work, who 
donated her home "Dunedin" in Hamilton as a Hospital for 
Convalescent Soldiers 208 

tive leader in British Columbia, who opposed the Bowser Govern- 
ment 432 


of the Quebec Legislature, 1916 432 


Minister of Saskatchewan 720 

ster of British Columbia 768 

chewan public affairs and in Provincial Recruiting 696 

SEAGER WHEELER. Winner of many International Agricultural Prizes 

from his Farm at Rosthern, Sask 696 

THE HON. TOBIAS CRAWFORD NORRIS, M.L.A. Appointed Prime Minister 

of Manitoba 648 

COLONEL THOMAS CANTLEY. President, N.S. Coal & Steel Co., New 

Glasgow ; President, Canadian Manufacturers ' Association 536 

LIEUT.-COL. FREDERIC NICHOLLS. President, Canadian General Electric 

Co., Ltd.; Vice-President, Electrical Development Co. of Ontario.. 536 


M.V.O. Appointed in 1916 Commander of the Canadian Forces at 

the Front 584 

BROOK in 1916; Canadian Representative at the Front and Offi- 
cial Eye- Witness 584 






OAPT. WM. DUMBLETON HOLMES, D.S.O., M.C. Vancouver 48 

SERGT. LEO. CLARKE, v.c. Winnipeg 48 

LIEUT. A. H. BOSTOCK Vancouver 48 









CAPT. W. N. GRAHAM Brockville 352 

LIEUT. JOSEPH W. E. CLARK Toronto 352 

LIEUT. PERCY W. BEATTY, M.C. Toronto 352 











Chronicles of Canada: 

The Jesuit Missions Thomas G. Marquis Toronto: Glasgow-Brook. 

The Fighting Governor Prof. C. W. Colby Toronto: Glasgow-Brook. 

The Father of British Canada. Win. Wood Toronto: Glasgow-Brook. 

The "Patriots" of '37 Alfred D. De Celles Toronto: Glasgow-Brook. 

The Winning of Popular Gov- 
ernment Arch. MacMechan Toronto: Glasgow-Brook. 

The Fathers of Confederation. A. H. U. Colquhoun Toronto: Glasgow-Brook. 

The Day of Sir Wilfrid Lau- 

rier Oscar D. Skelton Toronto: Glasgow-Brook. 

The Acadian Exiles Arthur G. Doughty Toronto: Glasgow-Brook. 

The Cariboo Trail Agnes C. Laut Toronto: Glasgow-Brook. 

The Railway Builders Oscar D. Skelton Toronto: Glasgow-Brook. 

The Red Watch: With the 1st 

Canadian Division in Flanders. Col. J. A. Currie, M.P.. . .Toronto: McClelland. 

Report of the Work of the Pub- 
lic Archives A. G. Doughty, c.M.G. . . .Ottawa : King's Printer. 

Papers and Records: Ontario 

Historical Society Toronto : The Society. 

Life and Letters of Sir Charles 

Tupper (2 vols.) Rev E. M. Saunders, D.D.. .Toronto: Cassell. 

Letters from My Home in India 

(Ed.> Grace McLeod Rogers. . . .Toronto: McClelland. 

Mounted Police Life in Canada. Capt. R. Burton Deane. . .Toronto: Cassell. 

Sons of Canada Augustus Bridle Toronto : Dent. 

Sir Charles Tupper ^. . Hon. J. W. Longley Toronto: Morang. 

Lord Selkirk's Work in Canada. Prof Chester Martin, B. A.. Toronto: Oxford Press. 

With a Field Ambulance at 

Ypres Prof Win. Boyd Toronto : Musson. 

Canada's Future: A Symposium 

by Prominent Canadians.... (Ed.) E. A. Victor Toronto: Macmillan. 

The Red Indians of the Plains. . Rev. J. Hines Toronto: McClelland. 

Canada and the War: The Pro- 
mise of the West J. H. Menzies Toronto: Copp, Clark. 

Studies in Tudor History W. P. M. Kennedy, M.A.* .Toronto: Copp, Clark. 

The Legal Profession in Upper 

Canada Hon. W. R. Riddell Toronto: Law Society. 

Life of Sir Phillip Sidney Prof. Malcolm Wallace. . . .Toronto: Dent. 

Principles and Methods of Muni- 
cipal .Administration Prof. W. B. Munro Toronto: Macmillan. 

La Langue Francaise au Canada. Louvigny de Montigny. . . .Ottawa: Privately Printed. 

Why France Lost Canada W. Frank Hatheway Toronto: Wm. Briggs. 

The Rise of Ecclesiastical Con- 
trol in Quebec W. A. Riddell, Ph.D New York : Columbia Univer- 

Tableaux Synoptiques de 1'His- sity. 

toire du Canada (Ed.) Father Le Jeune. . .Ottawa: Privately Printed. 

Trois LSgendes Franciscaines de 

1'Au, 1629 Rev. Father Hugolin Montreal: Librairie Notre 

La Colonization du Canada sons Dame. 

la domination francaise Abbe Ivanhoe Caron Quebec : Privately Printed. 

A Daughter of France Arthur G. Doughty Edinburgh : Ballantyne Press. 

Le Noblesse de France et cu Ca- 
nada Abbe A. Couillard-Despres. Montreal: Le Pays Lauren- 


Armorial du Canada Francais. . E. Z. Massicotte Montreal: Beauchemin. 

Annual Report, Historical Land- 
marks Association Ottawa: Privately Printed. 

The Canadian Annual Review of 

Public Affairs J. Castell Hopkins Toronto: Annual Review 

Chapters in the History of Hali- Co. 

fax, N. S A. W. H. Eaton A mericana. 

A History of the County of 

Pictou, N. S Rev. George Patterson, D.D.Pictou: The Advocate. 

Ontario Historical Society: Pa- 
pers and Records Vol. XIV Toronto: The Society. 

Kent Historical Society Papers and Addresses. .. .Chatham : The Society. 

*NOTE. Lack of space at the end of the volume pressure of all-important War 
facts and record prevented the Author this year from reviewing some of the Canadian 

books sent to him. He hopes to make a special Section in the next volume for 1916 
as well as 1917 books. 




Lennox and Addington Histori- 
cal Society 

London and Middlesex Histori- 
cal Society 

Niagara Historical Society .... 

^Thunder Bay Historical Society. 

Waterloo Historical Society 

Vie de Mgr. Langevin 

David Thompson's Narrative... 
Les Franciscaines du Canada de 

1S90 a 1915 

L'Eglise du Canada Apres le 


The Catholic Church in Waterloo 


The Trail of Love 

Papers and Records Napanee : 

Transactions London : 

Reminiscences of Early 

6th Annual Report 

Annual Report 
R. P. A. G. Morice 

(Ed.) J. B. Tyrrell 

William : 
. Kitchener : 
.St. Boni- 

Rev. Fr. Hugolin 


1'Abbe" Auguste Gosselin. 
Theobald Soetz. . 


W. D. Flatt Toronto : 

The Society. 
The Society. 
The Society. 

The Society. 
The Society. 

Privately Printed. 
Champlain Society 

Privately Printed. 

Catholic Register. 
Wm. Briggs. 


The White Comrade 

The Witch of Edor 

April Airs 

The Book of Sorrow: Au Anthol- 

Poems of the Great War 

Songs of the Sons of Isai 

The Land of Manitou 

The Lamp of Poor Souls and 
Other Poems 

Contingent Ditties and Other 
Soldier Songs 

My Soldier Boy and Other Poems 

Lover Lyrics and Others 

Maple Leaf Men 

Poems, Lyrics and Sonnets. . . . 

Canadian Poets: Chosen and 
Edited by 

Rhymes of a Red Cross Man . . . 

In the Battle Silences 

The Watchman and Other Poems 
Lundy's Lane and Other Poems. 
Songs of Gladness and Growth. 
Adventures of Prince Melonseed 

Songs of Ukraina 

Where Duty Leads 

In the Day of Battle 

Katharine Hale (Mrs. J. 

W. Garvin) Toronto: 

Robt. Norwood Toronto : 

Bliss Carman Toronto: 

Dr. Andrew MacPhail ... .Toronto: 

(Ed.) J. W. Cunliffe Toronto: 

Helen Hughes Hielscher. .Boston: 
W. D. Lighthall, K.C Montreal: 

Marjorie L. C. Pickthall .. Toronto : 

Sergt. Frank S. Brown. . .Toronto: 

Mrs. J. A. Morison Toronto: 

A. R. Munday Toronto.: 

Rose E. Sharland Toronto: 

Ethelwyn Wetherald Toronto : 

J. W. Garvin, B.A Toronto i 

Robt. W. Service Toronto: 

Frederick George Scott, 

C.M.G., D.D Toronto: 

L. M. Montgomery. ..... .Toronto: 

Duncan Campbell Scott ... Toronto : 

James L. Hughes Toronto: 

M. Ella Chaffey Toronto: 

Florence R. Livesay Toronto: 

Major H. B. MacConnell. .Toronto: 
Carrie E. Holman Toronto: 


Oxford Press. 
Privately Printed. 

8. B. Gundy. 

Copp, Clark. 
Wm. Briggs. 

Wm. Briggs. 

Wm. Briggs. 
Wm. Briggs. 

Wm. Briggs. 
Wm. Briggs. 


The World for Sale Sir Gilbert Parker, Bart., 

Kinsmen. A Story of the Ottawa 


Tales of the Labrador 

The Secret Trails 

The Homesteaders 

Rod of the Lone Patrol 

Further Foolishness 

The Magpie's Nest 

The Shadow Riders 

The Klondike Clan 

Drawn Shutters 

Billy Topsail, M.D 

The Beloved Traitor 

Hearts and Faces 

Behind the Bolted Door 

The Fur-Bringers 

The Money Master 

La Terre 

The Door of Dread 

The World, the Church and the 


The Beechwoods 

Maple Leaves in Flanders' Fields 

. Toronto : 

Percival J. Cooney 

Wilfrid T. Grenfell 

C. G. D. Roberts 

Robert J. C. Stead 

H. A. Cody 

Stephen Le acock 

Isabel Paterson 

Isabel Paterson ........ 

S. Hall Young 

Beatrice Redpath ...... 

Norman Duncan 

Frank L. Packard 

John Murray Gibbon. . . . 

A. E. McFarlane 

Hulbert Footner 

Sir Gilbert Parker 

Ernest Choquette, M.L.C.. 
Arthur J. Stringer 

. Toronto : 
. Toronto : 
. . Toronto : 
. . Toronto : 
. . Toronto : 
. .Toronto: 
. .Toronto: 
. . Toronto : 
, .Toronto: 
. . Toronto : 
, .Toronto: 
. Toronto : 
. Toronto : 
. Toronto : 
. Toronto : 
. Toronto : 
. Montreal : 

Rev. J. A. Morison Toronto: 

Duncan Armbrest Toronto: 

Herbert Rae Toronto : 

S. B. Gundy. 

S. B. Gundy. 
Wm. Briggs. 
S. B. Gundy. 
S. B. Gundy. 
S. B. Gundy. 
S. B. Gundy. 
S. B. Gundy. 
Thos. Allen. 
S. B. Gundy. 
Copp, Clark. 
G. J. McLeod. 

Copp, Clark. 
Wm. Briggs. 
Wm. Briggs. 




In the Ypres Salient ......... 

The German Peace Offer ...... 

Canada's Champion Regimental 

Band .................... 

.Review of Work of the Commis- 

sion of Conservation ........ 

Pourquoi Nos Parlons Francais. 
Defence and Foreign Affairs. ... 

How We Pay Each Other ..... 

Jean Baptiste to His Anglo-Cana- 

dian Brother 

The Farmer and the Interests. . 
No Trading with Germany ..... 
Canada and the British West 

Indies ................... 

Indian Practice of Medicine in 

Champlain's Time .......... 

La Confederation ............ 

Ou Allons-nous ? Le National- 

isme Canadien ............. 

Newfoundland and its Relation 

to Canada ................ 

Voyage Aux lies-Madeleine .... 

Le Saint Jean Baptiste ....... 

De Quebec a Perce: Sur les pas 

des Recollets .............. 

Similia Similiabis ............ 

Our Volunteer Army . ........ 

The Ape Man ............... 

Russian Trade : A Report ..... 

The Militia of the Eastern Dis- 

trict ..................... 

The Contest for the Command of 
Lake Ontario, 1912-13 ...... 

La Famille de Chauvigny de la 
Chevrotiere ....... . ....... 

The 1st Law Reporter in Upper 
Canada .................. 

Pierre Gualthier, Sieur de la 
Verendrye ................ 

The Economic Effect of War. . . 
An Historical War-Crop ..... '. 

Le Desaven ................. 

Cinquante-six Ans de Vie Litter 

aire (M. Benj. Suite) ....... 

The Co-operative Store in Cana- 

da ...................... 

The Country Elevator in the Ca- 

nadian West .............. 

Dollard au Long-Sault ........ 

Iroquois Foods and Food Pre- 

paration ............... . . 

Education in the Province of 

Quebec ........ . ......... 

Ontario Grammar Schools ..... 

Beckles Willson ......... London: 

George T. Denison ....... Toronto: 

J. D. Logan, M.A., Ph.D. . .Halifax: 

Sir Clifford Sifton ....... Montreal: 

A. H. de Tremaudan ..... Winnipeg: 

Z. A. Lash, K.c .......... Toronto: 

S. G. Wood ............ Toronto: 

Toronto : 
"Clarence Ager" ......... Toronto: 

Prof. H. T. F. Duckworth . Toronto : 

Watson Griffin .......... Ottawa : 

Very Rev. Dr. W. R. 

Harris .............. Toronto: 

Hon. Charles Langelier . . . Quebec : 

"Un Patriote" .......... Montreal: 

H. J. Goodyear .......... Toronto : 

Hon. Paschal Poirier. . . .Montreal: 

Benj. Suite ............. Ottawa: 

Rev. Dr. Hugolin ........ Montreal : 

Ulric Barthe ........... 

La Presse .............. Montreal : 

Very Rev. Dr. W. R. 

Harris .............. Toronto : 

C. F. Just ............. Ottawa : 

Brig.-Gm E. A. Crujik- 

shank ............... Toronto : 

-Brig.-Gen. E. A. Cruik- 

Ottawa : 
P. G. Roy ............. L6vis: 

Hon. W. R. Riddell ..... Toronto: 

Hon. L. A. Prud'homme. .St. Boni- 

Adam Shortt ........... Ottawa: 

C. C. James ............ Ottawa: 

Hon. Phillippe Landry . . .Quebec : 

G. Malchelosse .......... Montreal: 

H. Mitchell ............ Kingston: 

W. C. Clark ..... ....... Kingston : 

Benj. Suite ............ Quebec: 

F. W. Waugh .......... Ottawa : 

Mgr. O. E. Mathieu ...... Prince 

Prof. W. E. Macpherson .. Kingston : 


Transactions of the Canadian 

Mining Institute (Ed.) H. Mortimer-Lamb. .Montreal: 

"Waterworks and Sewerage Sys- 
tem Leo G. Denis, B.SC. . . . ._. .Ottawa : 

Proceedings: Commission on Con- 
servation Montreal : 

Conservation of Fish, Birds and 

Game (Ed.) James White, F.R.G. S.Toronto : 

Water Powers of the West -[ j^^'ChaTlies ' .' .' .' .' .' .' .' .' } Toronto : 

The Greater Tragedy Benjamin Abthorp Gould . . Toronto : 

In Pastures Green Peter McArthur Toronto : 

Hamlet, an Ideal Prince and 

Other Essays Prof. A. W. Crawford. . . .Toronto; 

The Grand Adventure and Other 

Sermons Rev. Robert Law, D.D Toronto: 

Privately Printed. 

Privately Printed. 

Federated Press. 
Privately Printed. 

Telegraph Co. 
Monetary Times. 

King's Printer. 

Privately Printed. 
Privately Printed. 

La Presse. S 

University Press. 
Privately Printed. 
Royal Society. 

La Presse. 

Privately Printed. 

Military Institute. 

Royal Society. 
Privately Printed. 
Privately Printed. 

Societe" Historique. 
Rv.yal Society. 
Royal Society. 

Privately Printed. 
Queen's Quarterly. 

Queen's Quarterly. 
Societe de Geo- 

Geological Survey. 

Privately Printed. 
Queen's Univer- 

The Society. 
Mortimer Co. 
Federated Press. 

Wm. Briggs. 


Copp, Clark. 



Platform Sketches ........... Jessie Alexander ........ Toronto: McClelland. 

Rambles of a Canadian Natural- 

ist ...................... S. T. Wood ............. Toronto : Dent. 

The Wandering Dog ...... .... Marshall Saunders ...... Toronto: Copp, Clark. 

Patriotic Plays for Children. . . . Edith Le Lean .......... Toronto: Wm. Briggs. 

The Woman Bless Her ...... Marjory MacMurchy ..... Toronto: S. B. Gundy. 

A Sunny Subaltern: Billy's 

Letters from Flanders ............................ Toronto : McClelland. 

The Guide: A Military Manual. {Stf-ColTw!' n^nf'*'.}'* * - C PP- Clark. 
God's Covenant Man: British 

Israel .................... Prof. E. Odium, M.A ...... Toronto: Wm. Briggs. 

Wild Animal Ways .......... Ernest Thompson-Seton. . .Toronto: Wm. Briggs. 

Essays on Catholic Life" ....... Thos. O'Hagan, M.A., Ph.D., 

Litt.D ................ Baltimore: John Murphy. 

Proceedings of Canadian Club. . Toronto ............... Toronto: Warwick-Rutter. 

Talks on Talking ............ Grenville Kleiser ........ Toronto: McClelland. 

The Call of the West: Letters 

from British Columbia ..... C. F. J. Galloway ....... Toronto: ,S. B. Gundy. 

Canada Chaps ............... J. G. Sime ............. Toronto: S. B. Gundy. 

Canadian Club Addresses ..... Montreal ............. '. .Montreal: Privately Printed. 

Canadian Club Addresses ..... Ottawa ............. . . .Montreal: Privately Printed. 

In the Wake of the War Canoe. Ven. W. H. Collison ---- London: Seeley. 


The Can,*., Municipa, Becc r d.{ <fj } 

Almanach des Trois-Rivie*res. . . (Ed.) J. A. Charbonneau . Trqis 

V ^ 

W. S. Wallace . . . / 
The Canadian Almanac ....... (Ed.) Arnold W. Thomas. Tor onto: 

Heaton's Annual ........... (Ed.) Ernest Heaton. . . .Toronto: 

The Canada Year Book . ...... (Ed.) E. H. Godfrey. . . .Ottawa: 

Statistical Year-Book of Quebec (Ed.) G. E. Marquis ..... Quebec: 

The Canadian Annual Review of 

Public Affairs .......... ... J. Castell Hopkins 

Keview o, Historical PbHc..<^> ; rong_. 


F. E. Fitch, Inc. 
Monetary Times. 

Privately Printed. 
Annual Review 

Glasgow- Brook 

Copp, Clark. 
Heaton's Agency. 
King's Printer. 
King's Printer. 

Appointed Governor-General of Canada in 1916. 



At the close of this year the World-war had 
The Progress changed in its form and, perhaps, in its objects. Dur- 
menf of the"" * n ^e nrst ^ ear G ermanv had unquestionably hoped 
war in 1916 to get through France, dominate the English Channel 
and cripple England by means of her great guns and 
submarines, while compelling a Russian peace from the walls of 
Warsaw and Riga. During the second period, and into the third 
year of war, the Teutonic ambitions appeared to centre upon the 
establishment of a great Central European empire, with the Bal- 
kans and Asia Minor as the pivot upon which would turn the 
ultimate naval control of the Mediterranean and a firm grip upon 
the Orient. If its war resources achieved this it would be the end 
of the War ; Great Britain and Maritime supremacy would be dealt 
with later. 

Whatever that war-power really was, whatever were the physi- 
cal needs and supplies of the people of Germany and Austria and 
their allied States, there w r as no doubt that at the close of 1916 
the Teutonic armies still were active, initiative, aggressive; that 
their efforts were varied and far-flung and still potent at any given 
point of the vast war-line ; that, whether in defence or offence, their 
action was directed with unity of command and policy, deliberation 
of thought followed by rapidity of stroke. Belgium and Northern 
France, Russian Poland and Courland, were held in an iron grip 
and bled white as to their resources in food and industry and 
labour; a large part of Roumania and a small part of Greece had 
been added to the Serbian territory which served the purposes of 
German conquest, while the Danube had been opened and added 
to the already free railway route from Berlin to Constantinople; 
through the Germanized efforts of King Constantine and his wife 
a sister of the German Emperor the Allied armies at Salonika 
had been held up and the efforts of Allied diplomacy in Greece 
practically paralyzed. 

In the pivotal aggressive action of the year, however, the Ger- 
mans had failed. Their tremendous offensive against Verdun, with 
nearly a million men employed in the attack, with vast accumula- 
tions of munitions, and of great guns such as those which had 
2 [17] 


smashed the Belgian forts to powder, was resisted with almost 
superhuman courage and devotion by the French troops, every inch 
of ground was fought for and a maximum of loss inflicted on the 
Germans. Slowly driven back by overwhelming force the French 
retired but never ceased fighting and never lost confidence. Then 
came the Somme offensive by both French and British, with relief to 
the hard-pressed Verdun defenders, and the year ended with most 
of the territory in that region regained by the French and a feeling 
of assurance that the Allies held the upper hand along the whole 
of the Western front. 

While the Allied offensive on the Somme had over-run much 
territory, gained 85,000 German prisoners, and captured what 
really were great fortresses, it had failed to break the last German 
lines and been finally checked with its grasp almost closing upon 
Peronne. These tremendous battles involving, in the case of Ver- 
dun, at least 1,500,000 men directly and indirectly, and even more 
in the case of the Somme, were accompanied by every conceivable 
element of force. Aeroplanes provided bombs from the skies and 
ever-seeing eyes for the armies; great cannon (said to number 2,000 
in the German attack upon Verdun) belched forth day and night 
until opposing sectors of earth were turned into huge ash-heaps; 
deadly gasses and shooting flames came through varied forms of 
mechanical ingenuity mainly German in origin and played havoc 
at times with opposing forces; underground tunnels brought tre- 
mendous explosions into defence positions, while bombs of every 
description fell in the trenches and bayonet met bayonet in hand 
to hand fights above and below the earth, aided by bomb throwers 
and every kind of screaming, deadly missile; into the Somme 
struggle came the huge new British "tanks," or machine monsters, 
which went over trenches and buildings and blasted excavations 
and great ruins as if they were little garden fences in regions of 

The situation upon this front at the close of the year was a 
dominating one for the Franco-British Allies. Within certain 
limits of trench warfare they could attack successfully whenever 
they pleased; their guns and munitions were at least equal, and 
often superior, to those of the Germans ; the fighting spirit of the 
men was better than that of the enemy and their numbers were 
greater. On the other hand they still were unable to break through 
the iron ring which held the richest industrial section of France, 
and most of Belgium, within its circle. Elsewhere, upon the East- 
ern front, the Austrians had met great defeats in Volhynia and 
Galicia, which only failed to be crushing because of a German 
strengthening of their lines. General Brusiloff, in this great June 
offensive, had succeeded in crumpling up an Austrian army of 
750,000 men, in recovering much territory, over-running most of 
Galicia and occupying Bukowina, capturing hundreds of thousands 
of prisoners. He was, finally, however, held up at Lemberg and 
checked at Kovel and other points. 

Upon the Italian front an important Austrian offensive drove 
a wedge into Italian territory but was, eventually, checked, driven 


back and the Italians captured the long-sought-for Gorizia. In 
the Balkans much of Roumania went to the Teuton allies but the 
British, French and Italians made some headway from Salonika, 
and the gallant Serbs captured Monastir an important strategic 
point. In Asia Armenia was over-run by the Russians, and Persia 
more or less occupied by their armies, but they were held up by 
the Turks from getting much beyond Erzeroum and Trebizond; 
the British held Egypt securely and though they lost a small army 
at Kut-el-Amara, on the Tigris, they had their expedition again 
underway by December; while upon the historic borders of Pales- 
tine British forces were trying to obtain an entrance in this new 
crusade of liberty-loving nations against iron-clad aggression. 

Upon the sea the Battle of Jutland was a great British victory, 
spoiled in its effect upon the world by British neglect to furnish 
adequate information to the public and the German readiness, no 
doubt pre-arranged, to flood the world with a distorted view of the 
conflict. The advance British squadron under Sir David Beatty 
engaged, held and practically defeated the strength of the German 
battle-fleet ; the arrival of the main British fleet caused the hurried 
retirement of the German ships to shelter behind the guns of Heli- 
goland and their submarine-guarded, triple-mined coast protec- 
tion. There they remained up to the close of the year. In another 
direction Great Britain was not so successful. Her ships still swept 
the surface of the seas, her men and munitions, supplies and trans- 
ports, still passed in steady succession and absolute security across 
the channel to France guarded, it was believed, by a double line 
of great steel netting and many destroyers; but her vast naval 
resources could not cope entirely with the Submarine menace. In 
the Mediterranean, in Greek waters, on the United States coast, 
in waters nearer home, steamers were sunk, much property 
destroyed, valuable supplies lost and, in the case of the eastern seas, 
some lives and a few transports containing Italian ami British 
troops were destroyed, though in most cases the men were saved. 
This menace to commerce and shipping was probably the most in- 
jurious single factor in the War at the close of the year, so far as 
Britain was concerned. This was the general situation in the 
World-war during 1916. Eliminating such mysteries as those of 
Salonika and Greece and the exact internal conditions of Germany 
and Austria, certain details may be given here in tabulated form to 
show more clearly than any military map could do the general 
situation of the opposing nations* : 


1. Germany held all its main lines of War intact "luring 1916, added to 
its enforced acquisition of territory, repulsed minor Allied offensives in many 
parts of the great battle-front, held up or finally checked all the more con- 
siderable efforts of its enemies. 

2. Its armies for striking purposes, whether at Verdun or Lemberg. 
Riga or Roumania, remained available and its superb transportation arrange- 
ments still proved effective. 

*NOTE. See for 1915 a similar statement in The Canadian Annual Review for that 
year Page 25. 


3. Despite all the efforts of Russia and of the Allies at Salonika the 
Teutonic group of nations held their grip firmly upon the Railway running 
from Berlin to Belgrade, Sofia and Stamboul, and their control over the Oriental 
extension to Bagdad, while actually completing certain Asia Minor construc- 
tion with a view to after-the-War operations. To this hold upon the back- 
bone line of Central Empire ambition was added the opening of the Danube 
and the operation of lesser lines from Hungary, which were freed by the 
campaign in Roumania. 

4. As a result of the Roumanian operations some wheat and badly-needed 
supplies and a certain quantity of the product of the great oil wells were 
obtained though minimized in the first case by removal under direction of 
the retreating troops, and in the case of the oil-wells, by scientifically arranged 

5. Coupled with the paralysing attitude of Constantino of Greece the 
strength of the Teutonic combination was enough to hold at Salonika, without 
serious action during the entire year, a variously numbered but costly Expedi- 
tionary force of Allied troops. 

6. German control diplomatic, civil, military, economic was obviously 
strengthened during 1916 over Austria and Turkey and the ideal of a great 
Central Empire extending from Berlin to Bagdad was advanced on the 
military maps and in certain international respects. 

7. Germanic pressure upon Belgium, Poland, Courland, Serbia, and 
finally Roumania, added to the area of its supplies, its industrial resources, 
its men and women, while in two or three of these regions enforced labour 
liberated its own men for military purposes. 

8. The German policy of rapid war movement, threatened hostilities, 
arbitrary action, internal racial influence, or submarine activity, undoubtedly 
and in one aspect or the other, made neutral nations inclined to go a long way 
in helping Germany to evade the operation of the British blockade. 

9. German control and policy at Constantinople and in Asia Minor stif- 
fened the Turkish power, strengthened that nation as a war-factor, provided 
some at least of much-needed resources for the Teutonic powers and checked 
the one-time dangerous Russian campaign in the Caucasus and on the high- 
road to Bagdad. 

10. Through the mixing of German troops and military skill in the 
Austrian operations and the unity of action which gradually developed 
between the two Powers, Austria finally came under the control of the Ger- 
man General Staff and its troubles in the Carpathians, in Galicia and Transyl- 
vania, though not in Bukowina, were largely countered and the Russian drive 

11. The Roumanian campaign added at least 20,000 square miles in 
Wallachia and Dobrudja, by the end of the year, to the 11,000 square miles 
in Belgium, 8,000 in France, 50,000 in Russia, 40,000 in Serbia and Montene- 
gro, which had been conquered and held by Germany; it also gave Germany 
access to rich resources of coal, salt and petroleum and a soil of great agricul- 
tural fertility. 

12. The appointment of Marshal Von Hindenburg as head of the Teu- 
tonic forces in the War was a triumph for German solidarity and undoubtedly 
a factor in stiffening German operations, activities and powers of resistance. 

13. The Turks had proved at Gallipoli to be as good fighters as they 
ever had been; during 1916 their troops went to the assistance of Austria and 
withstood all attacks upon the Asiatic part of the Bagdad Railway; they came 
back in Persia and won territory between Hamadan and Sultanabad from 
the successful Russian offensive. 

14. German submarines did not drive British or Allied commerce and 
transports from the seas but they did destroy many ships, harass varied 
important interests, complicate British relations with the United States and 
other neutrals, raise the price of food in Britain and hamper British trade 
and transport to an unpleasant though not, as yet, dangerous degree. 

15. At the close of the year a new Submarine fleet of greater, larger, 
more effective vessels had been built and was partially in operation, while the 
voyage of the Deutschland, as an under-sea commerce ship, and its return with 
a cargo of nickel and other necessities, were considered a triumph. 


16. The operations of the Moeii'e, as a rover and raider of old-time type, 
smd its successful arrival back at a German port, was an important point, as 
was the work in the South Atlantic of an unknown raider in December of 
this year. The meeting of the British and German fleets at Jutland was 
regarded in Germany as a great victory, and so described; nothing at this 
time could alter the popular opinion. 

Germany claimed, at the close of the year, that she not only 
was still able to take the offensive, as was shown in Roumania and 
feared by Holland, Switzerland and Denmark but that she had 
stopped all the great Allied drives of the period. It was claimed 
that the Somme offensive had cost the British and French armies 
the loss of over 500,000 men and completely failed to break the 
German defence; that the Russian offensive had been stopped in 
its tracks with over 1,500,000 casualties and the exhaustion of 
Russia's munition supplies; that the Italian offensive aimed at 
Trieste had been checked; that the Turks had driven the much- 
vaunted Russian offensive in Persia, which was to relieve the 
British in Mesopotamia and seize Constantinople in short order, 
back over 200 miles, in full retreat; that the allied offensive in 
Macedonia was a dismal failure. 

The economic situation, the conditions of food supply, the effect 
of the British blockade during 1916, were quite different from the 
military aspect but, of course, intimate parts of the whole. The 
net position at the end of the year, so far as Germany was con- 
cerned, showed an ever-increasing issue of paper money, a plentiful 
reserve of gold, officially stated to be in the Banks, but none 
amongst the people, a taking-up of Government loans with large 
proportions in preceding bonds at special rates, an ever-increasing 
difficulty in getting food amongst the masses and an ever-growing 
increase in regulations of a more limited supply, a steadily greater 
pressure upon industries and war stocks by the influence of the 
ever-tightening blockade. If the rapid conquest of a portion of 
Roumania were to be gauged by the importance which the Allied 
press and public attached to the coming of that country into the 
conflict, then the German success was both brilliant and effective. 
The fact, however, was that neither event proved a conclusive fac- 
tor in the War, though each had an important place, apart from 
local conditions, in affecting public world-opinion and especially 
that of the United States. 


1. The first and greatest gain was through the successful defence of 
Verdun by the French and the nfTJre limited success of the Somme offensive, 
proving that Allied men and munitions and guns on the Western front were 
equal, and at times superior, to those of the enemy; that the offensive power 
was no longer in his hands and had passed, though in a restricted degree as 
yet, to the Allies. 

2. Heavy fighting at Verdun and the Somme, in Galicia and Hungary, 
Transylvania and Roumania, caused immense casualties on both sides and 
ran the total from August, 1914, to the end of 1916 up to an estimated 
35,000,000, of which 6,000,000 were allotted to the Teuton Allies. This 
tremendous drain upon a population one-fifth that of the Allies was necessarily 
favourable to the latter. 

3. Similarly, in the matter of finance, that portion of the $100,000,000 
a day, which the War was costing Germany and Austria at the close of 1916, 


was making infinitely greater' inroads upon their national wealth of $105,- 
000,000,000 than it was upon Britain, France and Bussian with a total wealth 
of $265,000,000,000 and revenues of 7,500 millions to the Teuton total of 1,000 

4. Innumerable evidences in neutral statement and practical detail 
showed much stress and strain upon the whole fabric of Teutonic power at 
the close of 1916; as to the degree of privation in supplies or food it was 
only possible to speculate but of the fact there was no reasonable doubt. 
Here the tremendous pressure of the British Navy made good and struck with 
steady and ever-increasing force. 

5. Invisible Naval pressure was added to by the visible driving back 
of the German fleet to its lair at the Battle of Jutland and its continued con- 
finement to Canal duties, while losses were replaced and the British Naval 
strength increased by at least one-fourth. 

6. Great Britain found, during 1916, a way to meet the Zeppelin raid 
menace, as she had the submarine danger, so far as the English Channel was 
concerned; a means for the protection of battleships in action from sub- 
marines was discovered and the invention of the Tank was one of the sensa- 
tions of the Somme. 

7. In the air the early German preponderance was gradually overcome 
and during 1916, and especially at the Battle of the Somme, British and 
French supremacy in aeroplane use and power was distinctly asserted. 

8. If, in the world-wide War, territory was measured in miles and not 
in strategic, national, or historic values the Allies, by the close of the year, 
had a great superiority in gains about 800,000 square miles to the Teutons' 
125,000. Practically all the German Colonial Empire had passed into British 
hands, with a potential wealth which, under proper development, was very 

9. On the Western front there had been an addition of 1,000,000 men to 
the British strength and a taking-over of the line up to the Somme and, 
later on, to a distance beyond that. Besides a certain confident belief in the 
superiority of Allied artillery and air service on this Western front there was, 
at the close of the year, an assurance of superior morale in the troops and of 
capacity to capture and hold desired positions, while the staff of both French 
and British Armies had acquired an experience and skill which, in the latter 
case, had been sometimes lacking. 

10. In the Asiatic campaigns of the year the Eussian advance, though 
checked in its great objective of the Bagdad Railway and Bagdad itself, was 
successful in preventing trouble from a partially-Germanized Persia, which 
was within striking distance of India; in holding in operation a considerable 
Turkish army which might have been a menace elsewhere ; in getting into 
touch with the Black Sea and the Eussian fleet at Trebiiond and in saving 
some, at least, of the Armenian remnant by its advance to Erzeroum. 

11. The Battle of the Somme relieved the pressure upon Verdun, pre- 
vented the current transfer of German troops to other points at that period 
though it did not prevent the offensive against Eoumania gave the British 
38,000 prisoners and the French 34,500, tested and proved the spirit of the new 
British Armies, captured underground fortresses stronger than any known to 
history, and seemed to show that the supposedly impregnable German trench 
system could some day be smashed. 

12. As in 1914 and 1915, so in 1916, the British Allies, whatever their 
losses in territory and, at times, in prestige, never lost an army and armies 
were still the final test of a military triumph. On the other hand the numbers 
of prisoners taken on either side might have constituted several large armies 
had they been captured together or in considerable segments. 

13. Upon Sea Great Britain held supreme sway, touched only on 
the fringe by the under-sea menace of the submarine. Its power in blockad- 
ing German supplies and in squeezing German resources was only limited by a 
British desire to treat neutral countries well and even generously a position 
which, however wise or politically necessary, undoubtedly weakened the pres- 


sure. As to the great Naval battle of the year Mr. Balfour, when First Lord 
of the Admiralty, said with accuracy: "Before Jutland, as after it, the 
German fleet was imprisoned. The battle was an attempt to break the bars 
and burst the confining gates. It failed, and with its failure the High Sea 
fleet sank again into impotence. ' ' 

14. While, approximately, 1,800 merchant ships of over 3,000,000 tonnage 
were sunk during the War up to Nov. 1, 1916 75 per cent. Allies, 18% 
neutrals and 1% Teutonic yet they were but a small proportion of the whole. 
British tonnage alone was over 13,000,000 in 1914 and so far as the ships of 
the Allies were not requisitioned for war transport, etc., they still, at the 
close of 1916, traversed the seas for commercial purposes. The bulk of the 
German shipping lay interned in neutral ports or hermetically sealed in German 
coast waters. 

15. If the Eoumanian campaign spelled local disaster to the Allies it 
averted, on the other hand, a probable organized thrust of the Teutons 
against Eussia which might have regained much ground and prestige lost in 
the Eussian attack upon Volhynia, Galicia and Bukowina. 

16. The holding of Salonika was, during 1916, a moot point of public 
and secret international discussion. Yet there was no doubt as to the strategic 
naval and land value of this famous sea-port with its command of the Eastern 
Mediterranean, its value as a naval base, its strategic outlook upon the Levant, 
the Suez Canal, Greece and Serbia. Without it the Balkans would have been 
all German ; with it in Allied control there were many chances of Balkan 
redemption and liberty. 

17. Italy, during the year, carried out a counter-offensive against the 
great Austrian advance to within sight of Veneto and won back most of her 
territory; directed a successful offensive against Gorizia and drove along the 
lower Corso to within a short distance of Trieste. Large Austrian armies 
were kept busy here and the Eussian operations thereby greatly aided. At 
one time the Eussian offensive relieved pressure upon the Italians. 

18. At the close of the year Eussian successes in Armenia, Galicia, 
Volhynia and Bukowina largely exceeded in territorial and general importance 
the German seizures in Eoumauia, while the capture of Monastir, a sort of 
key to Macedonia, gave General Sarrail control of direct lines of communica- 
tion between the Italian, French, Serbian and British sections of his army. 

19. With Britain's command of the seas safe passage was ensured to an 
ever-increasing stream of United States munitions and war supplies; while 
the German mark, at the close of 1916, was at a discount of more than 25 per 
cent., Britain and her Allies were able to borrow in the United States with still 
unimpaired credit sums totalling a billion dollars. 

The full effect of these intense struggles and vast campaigns as, 
indeed, the whole sweep of the World-war, turned upon how far 
they had by the end of 1916 weakened the vital forces of the con- 
tending Powers, in resources, in men, and in money. No one cam- 
paign or battle, no single year of conflict, had as yet affected the 
general issue beyond its influence upon the forces back of the con- 
flict. What was this situation at the close of 1916? As to basic 
war resources territory and its potential development, man power 
and its possible utilization, wealth and its available application 
the fundamental supremacy still lay with the British Allies and 
was being everywhere put into operation, though at times in a 
halting manner and at other times under conditions affected by 
Teutonic cleverness in the manipulation of neutrals, in local 
destruction of Allied plants, and in underground handling of 
Allied plans. The latter point was illustrated in the occasional 
paralysis of Russian policy, the plots in Mexico, the United States 
and India, or the defeat of Conscription in Australia. 


With more than one-half of the world in area, population and 
wealth at war the British Allies possessed* 29,000,000 square 
miles of area, 860,000,000 of population and $272,000,000,000 of 
wealth; the Teutonic Allies 2,960,000 square miles of area, 164,- 
000,000 of population and $108,000,000,000 of wealth. Of course, 
this was on paper and subject to many deductions. The huge areas 
or populations of British India, Africa, Australia and Canada 
were in the W r ar and doing much to aid Britain, but their share 
was nothing to the position of the actual European combatants 
and their resources and areas were only tentatively applied to the 
conflict though, of course, they formed reserves, vast reservoirs, of 
men and energy which had to be indirectly considered in the final 
solution. So in lesser degree the German, French, Italian, Bel- 
gian and Portuguese Colonies should be excluded from full values 
in the above figures. It may be added here that in all statistics and 
estimates of conditions in the World-war during these years inevit- 
able and sometimes large inaccuracies, natural but mistaken opin- 
ions and theories, facts impossible to correctly ascertain, must be 
allowed for. 

Even on the surface Sir George Paish, with a certain range of 
statistics, could create in British breasts a glow of satisfaction, an 
outburst of optimism; F. W. Hirst, with different figures, could 
evolve the profoundest feelings of pessimism. National exhaustion 
is a relative term and Germany could stand a great deal of limita- 
tion in food supplies during the winter of 1916-17 as she did in 
1915-16 so long as her soldiers were well fed and they were estab- 
lished on foreign soil, in fertile countries, with much mobility of 
action, and with various available products to aid the depleted 
home resources. A fundamental influence on the War in this 
connection was the shortage in crop production during 1916 the 
total for the world's 18 chief countries being 2,500,000,000 bushels, 
or a reduction of 25 per cent. 

Of all the vital elements in this War, however, man-power was 
the most important. The battle-fronts in Europe had increased 
during 1916 by 400 miles which must be added to the 1,400 miles 
previously held; in Asia and Africa there were changing and 
shifting fronts of perhaps another 500 miles. Great masses of 
men were needed for this service and the total at the beginning of 
the year under consideration was probably about 15,000,000 
for both sides. Eliminating all the Colonies (excepting Canada, 
Australia and New Zealand) as being of a racial class not available 
in the W T ar to any extent, and Japan as not contributing men to 
the Alliance, the Entente group had 328,000,000 to draw upon and 
the Teutonic powers (after eliminating the Colonies) about 140,- 
000,000. Taking in each case 10 per cent, of the population as, 
technically considered, capable of being called upon for service, 
collating the other figures from the official tables of casualties 
issued by some of the countries, the studies of the French Relief 

*NOTE. An estimate by Theodore H. Price in the New York Outlook (Dec., 1916). 
See also The Canadian Annual Review for 1914 Page 20. 


Society, the statistics of the War Study Society of Copenhagen, 
etc., we get the following results at the close of 1916 : 


Population to be drawn from 

10% proportion available for military purposes 

Eesources Aug. 1st, 1914 

Add to Eesources: 1% of population growing up 

each year for 2 years of war, less 20% medically 

unfit . 







32,000,000 14,000,000 

5,248,000 2,240,000 

Less: 20% of average number medically unfit 

Less : Estimated total killed 

Less : Estimated total rendered unfit through wounds 
Less: Estimated Prisoners lost . 

6,400,000 2,800,000 

3,000,000 2,000,000 

2,500,000 1,600,000 

2,600,000 1,500,000 

Total Deduction 



Eesources December, 1916 

22,748,000 8,340,000 

Such statistics, of course, have all sorts of qualifications. The 
Entente Allies, for instance, while using on active service only a 
small proportion (not given above) of their dependent populations 
of other races, had more or less control over a vast amount of 
voluntary labour from that source, of voluntary gifts, of trade and 
financial support. The Teutonic alliance drew nothing in this 
connection from their lost Colonies but found a limited compensa- 
tion in the enforced labour and supplies of conquered territories. 
The number of reserves available on either side at the close of the 
year was a subject of continuous speculation. So far as the public 
was concerned it could not be more than that except, perhaps, in 
the case of Great Britain and Governments were not talking in a 
matter so vital to the issue. Germany and the Teuton Allies, 
Russia and France, in particular, were necessarily secretive upon 
this point and only estimates of varying value were available. 
Assuming the approximate correctness of the above figures and 
accepting the usual calculations as to men required for railway 
operation along such enormous army fronts, for special service and 
Home duties, it would seem that the Teuton Allies altogether had 
about 7,000,000 men, inclusive of all reserves, available to guard 
over 2,000 miles of a war-front which was ever shifting, yet with 
a tendency to increase in length. 

Back of the men was the question of money and the resources 
associated with it. In what is usually termed by the statistician, 
national wealth, the British Allies were infinitely ahead of their 
enemies; in the organization and application of that wealth there 
were factors and elements which greatly lessened the proportion. 
In the human material available and it forms an important and 
basic part of all national wealth there was no comparison but, 
on the other hand, German organization was so complete, so con- 
crete, so autocratic, as to make the Central Empire resources go 
much further than the diffused, scattered, unorganized mass of 
Allied wealth could possibly go in the first years of such a war. 
The enormous reserve riches of Russia and India might be speci- 


tied in this latter connection ; the loose voluntary system of British 
Dominions was another illustration. 

During 1916, however, Great Britain did much to meet the 
world-wide situation and its leaders had produced a financial result, 
a system of national credit and international exchange which were 
marvellous. If not so thorough as the German system its world 
freedom and flexible application to changing conditions made it, 
as time passed on, much more effective. There were many estimates 
of national wealth in this connection,' and they varied greatly in 
degrees of accuracy. Favourite United States statistics included 
Great Britain at the generally accepted figure of $35,000,000,000 
but forgot her external' Empire ; some made a rough calculation as 
to Canada, etc., but omitted India ; others gave the Indian Empire 
along lines which excluded the immense hidden wealth of that rich 
region the countless gems and silver and golden articles held by 
Princes and Oriental Chiefs and placed by competent Eastern 
authorities at a minimum total of $50,000,000,000. Including such 
estimates and all the Colonies of the Entente group it would be 
reasonable to place the wealth of the British Empire at 175 bil- 
lions and that of the other Allies at 300 billions, while the Teuton 
group would have a total of 125 billions. These figures included 
the ownership and value of public property and of property owned 
abroad. The tota.1 war cost at the close of 1916 was about $65,- 
000,000,000 and much of this was borrowed and expended in the 
countries concerned and not actually lost or destroyed. It was 
transferred to the makers of munitions, to the families of soldiers, 
to the countless war industries of the time, to the producers who 
got immense prices for their products. For the two years of war, 
ending Aug. 1st, 1916, John Barnes of the Wall Street Journal 
estimated the financial situation as follows : 

rv^nt * Pre-War Debt, Present Debt, Total Cost Daily Average 

Country 1914 1916 to Aug. 1st, 1916 Cost 

Great Britain $3,485,000,000 $15,106,000,000 $11,190,000,000 $25,000,000 

France 6,607.000,000 14,966,000,000 9,000,000,000 17,000,000 

Russia 4,537,000,000 10,363,000,000 8.770,000,000 18,000,000 

Italy 2,836,000,000 4,301,000,000 2,500,000,000 8,000,000 

Other Allies 1,580,000,000 4,000,000 

Total for Allies ... .$17,465,000,000 $44,736,000.000 $33,090,000,000 $72,000,000 
Germany (Empire and 

States) 5,198,000,000 14,291,000,000 11,500,000,000 22000,000 

Austria-Hungary 3,970,000,000 6,757,500,000 5,360,000,000 12,'000,000 

Turkey 640,000.000 854,000,000 800,000,000 1,500,000 

Central Powers ....$ 9,808,000,000 $21,902,500,000 $17,660,000,000 $ 35,500,000 
Grand Total 27,273,000,000 66,638,500,000 50,750,000,000 107,500,000 

The New York Tribune financial expert estimated that at the 
close of 1916 there were in the Banks of France, Russia, Britain, 
Italy, Japan, Australia and Canada a total of 4,000 millions in 
gold, and in those of Germany, Austria-Hungary and Turkey 
1,300 millions. This concrete element of wealth was being 
used over and over again in the Teutonic countries and paper 
money was being issued in enormous quantities to a total of 4,000 
millions, or more than double the British issue*, while the value 
of the mark abroad was depreciating 25 per cent. With Britain, 

*NOTE. Sir Edward Holden, Chairman London City & Midland Bank, Jan. 26, 1917. 


as the chief banker and financial power of the Entente Alliance, it 
was different and the above total of gold held by her and her Allies 
was above and beyond the 2,230 millions held by the United States 
and of which much had gone from these countries in payment for 
war supplies without any dangerous depletion of the treasuries at 

According to an able analytical pamphlet issued by the Mechan- 
ics and Metals National Bank of New York, and compiled by P. W. 
Gehle, it was estimated that three complete years of the War would 
cost the Entente Allies 48 billions, or an average of 70 millions a 
day and $150 per capita, while the cost to the Teutonic group 
would be 27% billions or 35 millions a day and $188 per capita. 
As usual, with United States statistics, the external Empires or 
Colonies were omitted from these calculations. A careful English 
estimate also excluding the Colonies from purview stated that 
the Allied nations were spending upon the War up to Mch. 31, 
1916, 8 per cent, of their national wealth and the Central Empires 
16 per cent. As to the 25 billions a year which the War was aver- 
aging in cost to the nations at the close of 1916 Sir George Paish 
estimated that only about 7^ billions was a complete loss because 
of conditions, pointed out above, under which the populations were 
maintained by the expenditure of this money for labour and pro- 
ducts differently directed and composed but still serving the same 
purpose. This estimate did not deal, of course, with the values of 
human life lost or with the total of potential savings which, instead 
of being put away, were expended upon war objects, or the value 
of property which might have been created by the man-power 
expended in destruction. According to The Statist of London the 
relative increase in the cost of the War as a whole, up to May 31, 
1916, was as follows: 

Total Per Day 

Aug. 2 to Sept. 30, 1914 71,684,000 $ 358,420,000 1,195,000 $ 5,975,000 

Oct. 1 to Dec. 31, 1914 186,098,000 930,490,000 2,023,000 10,115,000 

Jan. 1 to Mar. 31, 1'915 240,578,000 1,202,890,000 2,073,000 13,365,000 

April 1 to June 30, 1915 ... 258,473,000 1,292,365,000 2,840,000 14,200,000 

July 1 to Sept. 30, 1915 416,024,000 2,080,120,000 4,522,000 22,610,000 

Oct. 1 to Dec. 81, 1915 425,420,000 2,127,100,000 4,624,000 23,120,000 

Jan. 1 to Mar. 31. 1916 459,240,000 2,296,200,000 5,046,000 25,230,000 

April 1 to May 31, 1916 335,500,000 1,677,500,000 5,500,000 27,500,000 

During the year two distinct lines of development were notice- 
able amongst the battling nations. The Central Powers came 
closer together, with Germany as the dominating influence holding 
an ever-increasing control over its Austrian, Hungarian and Bal- 
kan Allies. Negotiations as to commercial and fiscal relations, 
arrangements as to German military supremacy on all fields and 
war lines through Von Hindenburg, plans for after-the-war unity, 
were known to be under-way and more or less effective. Details 
were secret but on the other hand the British Alliance made no 
attempt at concealment of many and vigorous efforts to come 
together in military strategy, naval action, diplomatic policy and 
economic plans. In December, 1915, an Allied Council of War 
had been initiated and held in Paris and it was repeated in London 
on Jan. 19 when M. Briand, Prime Minister of France, two Minis- 
terial colleagues, General Graziani, Chief of the General Staff, and 


Admiral de Jonquieres, Chief of the Naval Staff, with other French 
officials, were in attendance. Others present were the French, 
Russian, Italian and Belgian Ambassadors, Mr. Asquith, the British 
Premier, several members of his Cabinet, Admiral Sir Henry Jack- 
son, First Sea Lord, and General Sir William Robertson, Chief of 
the Imperial General Staff. 

A similar Council was held in Paris on Oct. 20, 1916, with Gen- 
eral Joffre and Messrs. Ribot, Lacaze, Roques and Thomas of the 
French Cabinet present, together with General Haig, General 
Robertson, Mr. Premier Asquith and Mr. Lloyd George, A. J. Bal- 
four and Viscount Grey from the British side of the Alliance. 
Other informal gatherings to discuss war strategy took place from 
time to time but the central event of the year in this general con- 
nection was the Economic Conference of the Allies held in Paris 
on June 14-17 for the discussion of war action and after-the-war 
policy. It was the outcome of a preliminary Conference held at 
Paris on Mch. 27-28 and attended, amongst others, by Mr. Runci- 
man, President of the British Board of Trade, and Mr. Bonar 
Law, when the following Resolutions were approved: 

1. The representatives of the Allied Governments affirm the entire com- 
munity of views and solidarity of the Allies. They confirm all the measures 
taken to realize unity of action and unity of front. By this they mean at 
once military unity of action as assured by the agreement concluded between 
the General Staffs; economic unity of action, the organization of which has 
been settled by the present Conference; and diplomatic unity of action, 
which is guaranteed by their unshakeable determination to pursue the struggle 
to the victory of their common cause. 

2. The Allied Governments decide to put into practice in the economic 
domain their solidarity of views and interests. They charge the Economic 
Conference, which will be shortly held in Paris, to propose to them measures 
adapted to realize this solidarity. 

3. With a view to strengthening, co-ordinating, and unifying the econ- 
omic action to be exercised in order to prevent supplies from reaching the 
enemy, the Conference decides to establish in Paris a permanent Committee 
upon which all the Allies will be represented. 

4. The Conference decides: (a) To continue the organization begun in 
London of a Central Bureau of Freights; (b) To take common action with 
the shortest possible delay with a view to discovering the practical methods 
to be employed for equitably distributing between the Allied nations the bur- 
dens resulting from maritime transport and for putting a stop to the rise in 

At the succeeding and more conclusive gathering of June M. 
elemental, French Minister of Commerce, presided and Aristide 
Briand, the Premier of France, in his opening address on the 14th, 
pointed out the pathway of future policy as follows: "To conquer 
is not enough. In addition to a military union which will assure 
our military success, and to a diplomatic union which will be formed 
for future reciprocal penetration and pooling of common interests, 
we have an economic union, which will guarantee, through fruit- 
ful harmony, the intensive development of our material resources, 
the exchange of allied products, and their distribution through- 
out the world's markets." The Resolutions made public at the 
close of the Conference were prefaced by the declaration that the 
Central Powers, after imposing the War upon the world, were now 


preparing a struggle for supremacy in the economic domain and 
that it had become the imperative duty of the Allied Powers to 
secure for themselves and the markets of neutral countries "full 
economic independence and respect for sound commercial prac- 
tice" and to facilitate organization of an economic alliance on a 
permanent basis. The Resolutions were divided into three sec- 
tions and were as follows: 

(a) Measures for War Period. 

I. Laws and regulations prohibiting trading with the enemy shall be 
brought into accord for this purpose: 

A. The Allies will prohibit their own subjects and citizens and all per- 
sons residing in their territories from carrying on any fciade with the in- 
habitants of enemy countries of whatever nationality, or with enemy subjects, 
wherever resident, persons, firms and companies whose business is controlled 
wholly or partially by enemy subjects or subject to enemy influence, whose 
names will be included in a special list. 

B. The Allies will also prohibit importation into their territories of all 
goods originating or coming from enemy countries. 

C. The Allies will further devise means of establishing a system of 
enabling contracts entered into with enemy subjects and injurious to national 
interests to be cancelled unconditionally. 

II. Business undertakings, owned or operated by enemy subjects in the 
territories of the Allies, are all to be sequestrated or placed under control. 
Measures will be taken for the purpose of winding up some of these under- 
takings and realizing the assets, the proceeds of such realizations remaining 
sequestrated or under control. In addition, by export prohibitions, which are 
necessitated by the internal situation of each of the Allied countries, the 
Allies will complete the measures already taken for the restriction of enemy 
supplies both in the Mother Countries and the Dominions, Colonies and Pro- 
tectorates : 

1. By unifying lists of contraband and export prohibition, particularly 
by prohibiting the export of all commodities declared absolute or conditional 

2. By making the grant of licenses to export to neutral countries, from 
which export to the enemy territories might take place, conditional upon the 
existence in such countries of control organizations approved by the Allies, or 
in the absence of such organizations, upon special guarantees, such as the 
limitation of the quantities to be exported, and supervision by Allied consular 
officers, etc. 

(fc) Transitory Measures for the Period of the Commercial, Industrial, Agri- 
cultural and Maritime Eeconstruction of the Allied Coantries. 

I. The Allies declare their common determination to insure the re- 
establishment of the countries suffering from acts of destruction, spoliation 
and unjust requisition and they decide to join in devising means to secure the 
restoration to those countries, as a prior claim, of their raw materials 
industrials, agricultural plant and stock and mercantile fleet, or to assist 
them to re-equip themselves in these respects. 

II. Whereas the War has put an end to all treaties of commerce between 
the Allies and enemy Powers, and it is of essential importance that during 
the period of economic reconstruction the liberty of none of the Allies should 
be hampered by any claim put forward by enemy powers to most-favoured- 
nation treatment, the Allies agree that the benefit of this treatment will not be 
granted to those Powers during a number of years to be fixed by mutual 
agreement among themselves. During this number of years the Allies under- 
take to assure each other, so far as possible, compensatory outlets for trade 
in case consequences detrimental to their commerce should result from the 
application of the undertaking referred to in the preceding clause. 

III. The Allies declare themselves agreed to conserve for the Allied 
countries, before all others, their natural resources during the whole period of 


commercial, industrial, agricultural and maritime reconstruction, and for this 
purpose they undertake to establish special arrangements to facilitate the 
interchange of these resources. 

IV. In order to defend their commerce and industry and their agricul- 
ture and navigation against economic aggression resulting from dumping or 
any other mode of unfair competition the Allies decide to fix by agreement a 
period of time during which commerce with the enemy Powers will be sub- 
mitted to special treatment, and goods originating from their countries will 
be subjected either to prohibitions or to a special regime of an effective char- 
acter. The Allies will determine by agreement, through diplomatic channels, 
the special conditions to be imposed during the above-mentioned period on 
the ships of enemy Powers. 

V. The Allies will devise measures, to be taken jointly or severally, for 
preventing enemy subjects from exercising in their territories certain indus- 
tries or professions which concern national defence or economic independence. 

(c) Permanent Measures of Mutual Assistance and Collaboration among the 


I. The Allies decide to take the necessary steps without delay to render 
themselves independent of enemy countries in so far as regards raw materials 
and manufactured articles essential to the normal development of their econ- 
omic activities. These measures will be directed to assuring the independence 
of the Allies, not only so far as concerns sources of supply, but also as regards 
their financial, commercial and maritime organization. The Allies will adopt 
such measures as seem to them most suitable for the carrying out of this 
resolution according to the nature of the commodities and having regard to 
the principles which govern their economic policy. They may, for example, 
have recourse to either enterprises, subsidized and directed or conntrolled by 
the Governments themselves, or to the grant of financial assistance for the 
encouragement of scientific and technical research and the development of 
national industries and resources, or to customs duties or prohibitions of a 
temporary or permanent character, or to a combination of these different 

Whatever may be the methods adopted, the object aimed at by the Allies 
is to increase the production within their territories, as a whole, to a sufficient 
extent to enable them to maintain and develop their economic position and 
independence in relation to enemy countries. 

II. In order to permit the interchange of their products the Allies under- 
take to adopt measures facilitating mutual trade relations, both by the estab- 
lishment of direct and rapid land and sea transport services at low rates and 
by the extension and improvement of postal, telegraphic and other com- 

III. The Allies undertake to convene a meeting of technical delegates 
to draw up measures for the assimilation, so far as may be possible, of their 
laws governing patents, indications of origin, and trademarks. In regard to 
patents, trademarks, literary and artistic copyright which come into existence 
during the War in enemy countries, the Allies will adopt, so far as possible, 
an identical procedure to be applied as soon as hostilities cease. This procedure 
will be elaborated by the technical delegates of the Allies. 

D. Whereas, for the purpose of their common defence against the enemy, 
the Allied Powers have agreed to adopt a common economic policy on the 
lines laid down in the Eesolutions which have been passed; and whereas, it is 
recognized that the effectiveness of this policy depends absolutely upon these 
Eesolutions being put into operation forthwith, the representatives of the 
Allied Governments undertake to recommend that their respective Govern- 
ments shall take, without delay, all the measures, whether temporary or 
permanent, requisite to giving full and complete effect to this policy forth- 
with and to communicate to each other the decisions arrived at to attain the 

This important document was signed by M. elemental, French 
Minister of Commerce, and the Ministers of Public Works, Colonies 
and Labour, with two Under -Secretaries ; by Comte de Brocqueville, 


Belgian Premier, and the Ministers of Finance, State and Foreign 
Affairs ; by the Marquess of Crewe, Lord President of the Council 
(Britain), A. Bonar Law, Colonial Secretary, W. M. Hughes, 
Prime Minister of Australia, and Sir G. E. Foster, Canadian Min- 
ister of Commerce; by Signor Tittoni, Italian Ambassador to 
France; and Signor Daneo, Finance Minister of Italy; by Baron 
Sakatani for Japan, Senhors Costa, Finance Minister, and Scares, 
Foreign Minister, for Portugal ; by M. Pokrowsky and M. Prilegaieff 
for Russia, and M. Marinkovitch for Serbia. The Australian Prime 
Minister (Mr. Hughes) reviewed the Conference Resolutions on 
June 21 as follows: "Their adoption by the Allied Powers will 
effect little short of an economic revolution. I believe that through 
them we can strike a blow right at the heart of Germany. I believe 
that, rightly used, they are a great charter guaranteeing us and the 
Allied nations, and, indeed, the civilized world, economic inde- 
pendence. It would be intolerable if, after we had sacrificed mil- 
lions of lives and thousands of millions of treasure in order to pre- 
vent Germany imposing her political will upon us, we should slip 
back into her economic maw. . . . We have seen what the 
control of dyes, tungsten, spelter, and other metals by Germany 
means to this nation. It is profoundly true that if one great Power 
controlled practically all the supplies of such things as copper, 
lead, zinc, tungsten, petrol, rubber and cotton, all the world would 
be suppliant at its feet. 

A permanent Committee to carry out the objects of the Con- 
ference was appointed composed of M. Peltzer, representing Bel- 
gium, M. Denys Cochin, Minister of State, and two others, repre- 
senting France, Prince Ruspoli and two others for Italy, M. Tatsuke 
of the Japanese Embassy in Paris, Earl Granville for Great Britain, 
M. de Vilhena for Portugal, M. Sevastopoulo and M. Batcheff, 
representing Russia, and two representatives of Serbia. Out of 
the cauldron of war there had thus evolved a strong effort at unity 
of thought and purpose amongst the representatives of over 800 
million people holding half the area of the world under control. 
It may be added here that according to an estimate issued by the 
National Foreign Trade Council of the United States the loss of 
public and private property in Europe, up to the close of 1916, was 
$5,985,000,000, or $3,735,000,000 on the Western front and $2,- 
250,000,000 on the Eastern. It was calculated that certain immedi- 
ate needs of France and Belgium in the first year after the War 
would be as follows : 

Product France Belgium 

Agricultural Buildings $50,000,000 $50,000,000 

Agricultural Machinery 50,000,000 50,000,000 

Industrial Buildings 50,000,000 65,000,000 

Mining Machinery 40,000,000 60,000,000 

Iron Industry Machinery 50,000,000 70,000,000 

Food-making Machines 10,000,000 3,000,000 

Chemicals Machinery 6,000,000 6,000,000 

Textile Machinery 50,000,000 65,000,000 

Electrical Machinery and Equipment 50,000,000 130,000,000 

Wood-working Machinery 18,000,000 20,000,000 

Paper-making Machinery 3,000,000 5,000,000 


Another important matter of joint international action was the 
declaration on Feb. 14 to the Belgian Minister of Foreign Affairs 
at Havre, France, of the French, British and Russian Ministers at 
the Belgian Court presented by Prince Kudacheff, the Russian 
Minister that the Allied Powers signatory to the Treaties guar- 
anteeing the independence and neutrality of Belgium, desired to 
renew their pledges in the following terms : ' ' The Allied and Guar- 
anteeing Powers declare that when the moment comes, the Belgian 
Government will be called upon to take part in the peace negotia- 
tions, and that they will not end hostilities until Belgium has been 
restored to her political and economic independence and liberally 
indemnified for the damage she has suffered. They will lend their 
aid to Belgium to ensure her commercial financial recovery." The 
Italian and Japanese Ministers intimated their support of this 
declaration, though their countries were not participants in the 
original pledges. On July 3rd a Treaty of importance was signed 
between Russia and Japan in the following terms* : * ' Article 
I. Japan will not be a party to any political arrangement or com- 
bination contracted against Russia. Russia will not be a party to 
any political arrangement or combination directed against Japan. 
Article II. In the event of the territorial rights or special interests 
in the Far East of one of the contracting parties recognized by the 
other contracting party being threatened, Japan and Russia will 
consult with each other on the measures to be taken with a view 
to support and co-operation being given to one another for the 
safeguarding and defence of those rights and interests." After 
a Paris Conference on Nov. 17 M. Briand, Premier of France, and 
Mr. Asquith, Premier of Britain, sent a joint telegram about 
Poland to Boris V. Stuermer, Russian Prime Minister, as follows: 

We have learned with the liveliest satisfaction of the declaration pub- 
lished, Nov. 14, in the Russian press by which the Imperial Government, taking 
note of the fresh violation of the law of nations and of international conven- 
tions committed by Germany and Austria-Hungary, protests against their 
pretension of creating a new State out of territory momentarily occupied by 
them, and of raising an army among the population of those regions. We 
rejoice to see that foiling the machinations of our enemies and throwing clear 
light on the illusory character of their promises, Russia, having since the 
beginning of the War given the peoples inhabiting all Polish lands assurances 
conformable to their secular hopes, now solemnly renews the unchangeable 
decision announced more than two years ago in the name of His Majesty the 
Emperor to realize their autonomy. We are deeply gratified by the generous 
initiative taken by the Government of His Majesty, the Emperor of Russia, 
in favour of a people to whom we are bound by ancient sympathies, and who, 
re-uniting, will constitute a primordial element in the future stability of 
Europe. We are happy to associate ourselves with the views which the Im- 
perial Government intends to realize for the benefit of the noble Polish people. 

The general situation at the close of 1916 apparently had cer- 
tain lessons open to all. The first was the vital value of a great 
Navy to any nation having large dominions abroad and a dominant 
trade. When that nation was first in these two respects the suprem- 
acy of its Fleet was all, and more, than Tennyson portrayed or the 
wisest of statesman could foresee. It had become ever clearer that 

*NOTK. Journal of American Asiatic Association, October, 1916. 


campaigns were like business and had to be mapped out beforehand, 
studied and handled by experts, and backed by every kind of 
preparation ; that the Pacifist antagonism to adequate prepara- 
tion, or to practical analysis of human motives and character, as 
shown in national aims and actions, was only paving the way for 
destruction of small peoples and the death of myriads in holding 
the gates until conditions of unpreparedness could be equalized 
with those of preparedness ; that skilled industry was a vital part of 
modern war from the making of battleships and artillery, munitions 
and motors, aeroplanes and submarines, to the construction of 
tanks, ambulances and ordinary railway cars ; that submarines and 
zeppelins in great naval battles such as Jutland had a place far 
inferior to what was expected ; that in aeroplane warfare the skill, 
dash and quickness of thought of the British or French aviator 
soon won superiority over the brave but more intellectually pon- 
derous German; that supremacy of the air will be as vital in the 
future as supremacy on sea or shore, and especially so to an oceanic 
Empire ; that education in the fearful necessity of war and the need 
for defence preparations, so long as ambitious military Powers 
exist, was to peaceful nations an essential part of training in 
patriotism or love of country. 

To financial and fiscal theorists generally this War, as it 
developed into a world straggle, with 14 nations involved and 
costs of $17,000,000,000 in the first year, $28,000,000,000 in the 
second, and an estimated $30,000,000,000 for the third year meant 
an absolute revolution in thought and in refutation of old theories. 
Tariffs for protection became of recognized value to very many 
of the most bigoted free-traders ; taxation and expenditures which 
were declared impossible even in imagination came to be borne with 
equanimity and confidence as to the future; last, of all, the view 
that a w r orld-war would destroy the world in an economic and 
industrial sense was entirely shattered. Individual discipline of 
mind and habit and expenditure, economy in living, avoidance of 
luxuries and restriction of liquor consumption, utilization of labour 
along lines of economic management and personal willingness to 
increase production, concentrated community exertion in the 
organized supply of war requirements, worked a marvellous change 
in Europe and one which went far in meeting the fundamental 
calls of war. 

position of ^ ^ e c ^ ose ^ this year the power of Germany, 

Germany and the will of the Kaiser, extended from the Baltic Sea 
its Allies; and the German Ocean across Europe and Asia Minor 

Economic Con- up to the Russian outposts in Persia. Austria, Hun- 
gary ' Bulgaria and Turkey were links in a chain of 
military pow r er, tactics, trade and administration 
which promised, and was intended, to create a basis for the estab- 
lishment of a great new Power fitted to hold Europe in the leading 
strings of a gigantic militarism, to checkmate Russia and restrict 
Russian development, to meet Britain and her Empire in the East 
upon a level of ever-menacing rivalry and strength. Whatever the 


result of the War as to Britain's sea-power or French territory or 
German Colonies, this, it was hoped, would be a permanent con- 
dition. If this hope were to be realized it would alter the map of 
the world in a sense wider and deeper than even the geographical 
facts of current conquest or territorial spheres of influence. 

Despite all conditions of food limitation, war supply restric- 
tions, trade destruction, financial difficulty, or war casualties, the 
average German apparently was not convinced at the close of 1916 
that his country could be beaten. Austria, he thought, did not 
count seriously, except when its Armies were stiffened by German 
troops, Turkey and Bulgaria were iiseful but dependent Allies, the 
Balkanzas, or Berlin to Constantinople Railway, was a visible proof 
of Central European power, the possession of Antwerp and control 
of the Turkish capital promised to create a revolution in sea power 
when the War was over. Meanwhile, he was told, German armies 
were almost continuously successful, the Verdun matter was a 
slow struggle with certain results and the Somme offensive a flash 
in the night, while the control of the Danube, which came at the 
close of the year, was anticipated months before by efforts to com- 
bine through a system of canals and expansion the Rhine, Danube 
and Elbe into one great waterway by which vessels of 1,000 tons 
could pass from Antwerp, Bremen or Hamburg to the Black Sea. 
The Allied armies at Salonika were the only surface obstacle to the 
achievement of these hopes. 

In shutting Germans off from the world by a censored Govern- 
ment-controlled press its leaders held the power of knowledge in 
their own hands and they had used that power up to the close of 
1916 in a most sweeping and ample form. Translations of articles 
in a great variety of German newspapers, upon many phases of 
the War, are before me as I write and they prove a cultivated pre- 
judice, an educated ignorance, a distortion of facts, which would 
be entertaining if the results were not so deplorable. The situa- 
tion in Ireland, for instance, was described (Frankfurter Zeitung) 
as the rising of "a small, brave people against the tyrant of the 
world" who met the trouble with "blood, iron and the rope;" 
the current story of the Battle of Jutland was indicated by the 
statement of the Hamburg FremdenMatt that the public interest 
in this greatest of the world's sea-battles would never be extin- 
guished because ' ' the day when Albion 's prestige was destroyed for 
ever will remain an historical date of first-rate importance for all 
nations for all time;" Prof. Lugo Brentano, once well known in 
England, stated in a lecture at Zurich in June that "just as Eng- 
land had been the instigator of the War, so she continued to be 
the soul of the protracted bloodshed;" current news as to British 
events was illustrated in such despatches as this in Fremdenblatt 
(June 30) : "Last week extensive demonstrations against the dis- 
patch of soldiers took place in London and other towns. On 
Thursday a man attempted to blow up Victoria Station. Espe- 
cially, women distinguished themselves by organizing great street 
processions; and the recruiting placards of the Navy and of 
Kitchener's Army were torn down from the walls." 


A curious illustration of history-twisting may be quoted from 
the Berlin Morgenpost as to Roger Casement: "He knew what 
English 'civilization' meant. He had learned to know its black 
traces not only from Ireland, he was an eye-witness of the butchery 
of thousands and tens of thousands of native Indians by the officials 
of English gun-trading companies in the virgin forests of Brazil." 
Zeppelin "news" was often of a character indicated in the state- 
ment of the Answdrtige Politik that the business life of London 
was at night transferred to the cellars and that on one occasion 
the King and Queen, on their way from St. Pancras to Bucking- 
ham Palace, found "it was impossible to drive through the streets 
in motor-cars owing to the numerous craters formed by the bombs 
and the King gave orders to proceed to the nearest cellar." 

An obvious branch of this subject was the continued campaign 
of hate against England. As the Hamburg Nachrichten put it 
"England is the driving force of the whole War. England more 
than anybody else is responsible for the blood shed in the present 
War." The Kolnische Zeitung followed this up by calling for "a 
hearty curse upon England for every child and every poor and 
sick person who suffers through the inhumanity of these hypocriti- 
cal shopkeepers, and an oath that nothing shall be forgotten or 
forgiven," while Count Zu Reventlow directed a constant stream 
of denunciation against that country in speech and articles. 
Arnold V. Senfft wrote in Der Tag that "any mercy in a struggle 
against such an enemy is a crime, and the complete destruction of 
the British sources of power must be our supreme law of self- 
preservation," while the hymns and prayers of the Lutheran pas- 
tors were, in a large number of cases, worthy of the hymns of hate 
sung in the schools. The utterance of Pastor Fritz Philippi from 
his Berlin pulpit, which echoed through the press of the world, 
may be quoted as an illustration of this feeling: "As the Almighty 
allowed His Son to be crucified, that the scheme of redemption 
might be accomplished, so Germany is destined to crucify human- 
ity, in order that its salvation may be secured. The human race 
can only be saved by blood, by fire, and sword." 4 

The internal condition of the country had much to do with 
these and other expressions of thought, and with the outbreaks of 
cruel policy in conquered countries. In any study of these condi- 
tions matters have to be borne in mind which are almost incom- 
prehensible to free peoples accustomed to popular government. 
Such a thing was the powerful influence of an organized press, 
directed from the Berlin Foreign Office, and controlling the opin- 
ions, thoughts, knowledge, or the reverse, of a population, which 
had proven docile in its acceptance of manipulated news ; another 
was the fact that wounded were concealed, so far as possible, from 
the people and totals of casualty lists, positive or comparative, not 
made public; still another was misrepresentation as to the facts 
of the War and as to conditions in countries such as England 
belted by submarines, starving slowly and surely, clouded by Zep- 

*NOTK. The Methodist Times, London, England, advises me that this translation was 
received from their correspondent in Rome and that they are confident of its accuracy. 


pelins and fearful of invasion ! The personal power of the Kaiser, 
the influence of his supreme, authoritative, positive personality 
and position, were still strong, and this tendency of the people to 
hero-worship was further shown in the deification of Von Hinden- 

At the end of 1916 there was no doubt that the ring of war, 
the sure, silent, increasing pressure of the British blockade, were 
telling upon German life and German sentiment. How far it 
was doing so could not be positively stated, though a number of 
details were clear. There was a food scarcity, there was great and 
growing discomfort amongst the masses, there was increasing 
difficulty in getting many supplies necessary for war, there was an 
ever-growing supply of substitutes. Similar conditions had been 
occasionally indicated in the winter of 1915 but the volume of 
proof in this second winter of war was overwhelming. Chemicals 
were used in the preparation of all kinds of food, bread and meat 
were issued in very limited quantities and were hard to get, as 
were sugar, milk, eggs and other essentials. Eutledge Rutherford, 
in the London News of Aug. 11, stated that "the German Govern- 
ment seems at its wits' end to provide enough for the people to 
eat. Purity scruples have been cast to the winds. Every kind of 
factory refuse, herb, root, and by-product that can be converted 
into human sustenance is doped with chemicals and put on the 
market." How his despatch got out of Berlin was a mystery 
the facts apparently were accurate. 

D. Thomas Curtin, an American correspondent of The Times, 
writing after he had left Germany, declared in October that "the 
whole of Germany and Austria-Hungary are in a condition that is 
not yet serious but is already extremely uncomfortable." Accord- 
ing to Arthur R. Marsh of The Economic World, New York, the 
decreased crops of 1916 had produced a more serious situation 
than this unless German science had worked a miracle: "A reduc- 
tion of one-third in the grain crops and of two-fifths in the potato 
crop, combined with a reduction of fully one-half in the production 
of milk, butter and meat by reason of lack of feeds and fodders 
for animals, can mean nothing else than that Germany's food sup- 
ply, restricted now almost exclusively to domestic production, is 
not 80 per cent, of the normal annual requirements of the popula- 
tion, but a bare 50 per cent., or even less." The absence of fats 
was, undoubtedly, having an effect upon the physique of the 
people ; the shortage of potatoes compelled limitation for food 
purposes and checked the supply required for pigs, while also 
affecting the manufacture of alcofrol and starch; the succeeding 
slaughter of the swine caused lower and then very high prices for 
pork and lard; the forbidding of cereals as food for live-stock 
made poultry-raising almost impossible ; fish were very difficult 
to get and 150 per cent, higher in price; margarine and butter 
were almost unobtainable, beef fat priceless and the import of 
palm oil had ceased. The unpalatable war bread was rendered 
worse by the absence of butter, goose fat, lard or grease of any 


Substitutes included artificial honey and wood-meal made of 
wood arid straw with a slight mixture of potatoes and rye ; Pohl & 
Co., of Berlin, advertised egg and sausage substitutes, honey pow- 
ders and artificial baking powders; wooden shoes abounded while 
imitation flannel, woollens, string, rope, canvas, etc., filled the 
stores and the paper advertisements. German inventiveness and 
resourcefulness, indeed, continued to be a feature of the War. 
To the substitutes mentioned of which some were far from satis- 
factory were added the more efficient use of various by-products 
of coal, the combination of sugar with coal-tar in the production 
of horse feed, alcohol and yeast, the utilization of offal in varied 
forms, the use of iron and steel in place of copper and bronze, the 
substitution of paper for rubber, the soaking of wood in certain 
chemicals to make it fireproof, the use of certain limes with tar- 
oil and other things to make gum, the use of wheat, rye and potato 
flour in some mixture to replace grease in textile industries, the 
new industrial uses for talcum. The food value of bones was 
alleged to be great and to yield 10 per cent, of fat under certain 
treatment, while the replacing of Chilian saltpetre by the extrac- 
tion of nitrogen from the air was claimed to be effective in making 

In Britain the effectiveness or otherwise of the Blockade was 
much discussed and it, undoubtedly, was affected by the desire 
to conciliate neutrals and was subject to many evasions. Yet the 
cutting-off from Germany of cattle-feeding stuffs affected the food 
supply, the stoppage of artificial fertilizers affected the crops, the 
restriction of oils and fats affected the vitality of the people. Herr 
Von Botocki, the Food Dictator, appointed in May, 1916, had most 
sweeping powers of expropriation, restriction, and rationing of 
the populace, and in the ensuing drought, blights and frost which 
damaged the crops, as seriously as the British Blockade had 
affected them, he had his hands full. As the year advanced a short- 
tage in potatoes said to be 30 million tons was succeeded by a 
growing shortage in cattle suitable for meat purposes, by an in- 
creasing and general vegetable diet ; while the press was filled with 
letters indicating strained food conditions, and similar letters were 
found by the British and French on captured soldiers. In the five 
months of January-May, 1916, the export of food products to 
nearby neutral countries Holland and Scandinavia had fallen 
oil by one-half or $100,000,000. 

From neutral observers in Holland came many statements, 
toward the close of the year, as to hardships alleged to exist in 
Germany from lack of food. Tuberculosis was said to be increas- 
ing and the victims to be dying rapidly, women were weak from 
malnutrition, babies, the aged and the weak were suffering but 
officials and the army men were still fed fairly well. Much was 
hoped from the carefully prepared onslaught upon Roumania with 
its plentiful wheat and oil ; what was obtained the world-public did 
not know. It was notable at this time (December) that the censored 
press and public discussions of this problem became almost free 


aiid were telegraphed abroad for what reason did not appear 
unless the later Peace proposals were the cause. 

Marshal Von Hindenburg addressed an open letter to the Ger- 
man Chancellor, urging the better nutrition of workers: "It is 
clearly impossible that our workers can continue indefinitely to be 
efficient in their labour if we are not successful in distributing an 
adequate ration of fat, a ration founded upon common sense rules. ' ' 
He blamed those in control of distribution, and the farmers, for 
holding up prices. In the New York Tribune and Boston Trans- 
cript there appeared at the close of the year a series of articles from 
Madeleine Zabriskie Doty describing her experiences and con- 
clusions in Germany as a special correspondent. Her tone was sym- 
pathetic toward Germany but there were many details practically 
bearing out the opinions of Mr. Curtin, in the London Times, as to 
German privations. For the people and for peace she pleaded in 
words which might have been written by the German Chancellor 
himself (Tribune, Nov. 26) : "The people do not wish to be ugly. 
They do not believe in a Von Tirpitz submarine policy, but if 
England insists on smashing and crushing the German nation, 
where is their hope? "What is left but ugly retaliation? We are 
not yet angels. ' ' 

This view-point added force to her statement of Dec. 3rd that 
Germany "in years of preparation built up an army and laid in 
food and munitions for two years. But the two years is up and 
the nation begins to crack and crumble. . . Slowly the German 
people are disintegrating/' The situation, therefore, at the close 
of 1916 seemed to be that the people were suffering in body but not 
vanquishd in spirit; they still believed in victory and, despite 
occasional food riots, Socialist outbreaks and journalistic statements 
such as those of Harden, were willing to fight on. In this connec- 
tion there was a point overlooked by many commentators, though 
riot by Governments, that the German possession and operation of 
the Serbian copper mines and later on, in degrees not known, of 
the Eoumanian oil fields, together with the undeveloped resources 
of Asia Minor in cotton, rubber, iron-ore, etc., gave Germany con- 
trol over many supplies which only required time to exploit. Jt 
was asserted by some students of the situation that the French and 
Belgian coal fields and the iron mines of Longwy and Brieux had, 
by the close of the year, been worked close to exhaustion, and 
that Poland was being stripped of its forests to a point which 
involved changes in the climate. 

Casualties had been heavy but came home to the people in an 
individual rather than concrete form. Belgian, Polish and even 
French forced labour replaced that of rnen transferred to army 
or munitions; stories of Verdun, seeping through into the con- 
science of the masses, were met by tales of British defeat at the 
Somme, a great Allied drive checked and immense slaughter 
inflicted, or by pictures of the Russians driven back, or the Rouman- 
ians conquered, or Persia occupied, or Egypt about to be attacked, 
or the Battle of Jutland won and British naval supremacy 
destroyed. According to estimates of the Allied press the Austrian 


losses in BrusilofTs offensives totalled 700,000 and against the 
Italians 300,000, the German losses at Verdun were said to be 
600,000 and on the Somme 500,000, those in the Lutzk-Stokhod 
campaign were placed at 150,000 and in the Roumanian struggle 
75,000, with an ordinary general wastage of 350,000 a total for 
the year of 2,675,000. This would include killed, wounded and 
prisoners and the total was not unreasonable. Taking the casualty 
lists recorded in the German press, for that country alone, and 
not locally analyzed or totalled, the British military authorities 
estimated the numbers at 4,010,000 from the beginning of the War 
to the end of 1916. As the totals compiled from these sources by 
The Times up to the close of 1915 were 2,591,085 it would leave 
1,400,000 as the figures for 1916 exclusive of Austria and the 
other Allies. The following figures indicate the situation as to 
alleged prisoners from the official German standpoint: 
German Official Total of all Prisoners Prisoners held in Germany proper on 

Aug. 1st, 1916. 

French 354,678 

Eussians 1,211,891 

English 30,903 

Belgian 5,408 

Serbians 23,914 

held to Aug. 1st, 1916. 

In Germany 1,663,794 

In Austria-Hungary 942,489 

In Bulgaria 38,000 

In Turkey 14,000 



Total 1.626,794 

What the War finance of Germany was on paper all the world 
knew; what it really was during this year time only could tell. 
Friendly writers such as Prof. Moritz J. Bonn of the University of 
Wisconsin and late of Munich, claimed that (1) at least four-fifths 
of Germany's war Debt of $10,000,000,000 had been placed with 
permanent investors at home; (2) that the national wealth of Eng- 
land putting aside her Empire as usual in these calculations 
and Germany and their national incomes were about the same, 
while British war expenditures were greater; (3) that the British 
naval blockade had made the Central Powers economically self- 
supporting and able to organize business life so as to set free funds 
for war loans; (4) that the bank notes issued for circulation and 
to save the gold were covered by a gold reserve of one-third and 
that the fall of the mark in exchange was due to unfavourable 
trade balances; (5) that Germany's natural resources had not been 
destroyed and that foreign debts would not hamper her recupera- 
tion after the War as they would the Allies. 

Some of these conclusions were obviously weak to a degree, as 
with the idea that partial starvation of a people could be econ- 
omically good for them, or the loss of trade beneficial because funds 
used in it had become available for war purposes ! Sir Edward 
Holden, the British banker, stated categorically in connection with 
some of these claims that the Reichsbank (Government Bank) 
notes had been rendered inconvertible while the notes of other 
banks had no gold against them at all and that Germany's credit- 
balances abroad were all exhausted, its exports largely diminished, 
its foreign securities sold. As to the war loans no exact details 
outside of official statements were available. This view was given by 




Issued at 



Not before 1924 

Between 1918 and 1920 .... 

Not before 1924 

Between 1921 and 1922 

Not before 1924 

Not before 1924 

Not before 1924 . 




2 650,000,000 

Count Von Roedern, the Imperial Treasurer, in the Reichstag on 
Oct. 27: "You will remember that the first four loans were essen- 
tially of the same type, carrying five per cent, interest and having 
approximately the same price of issue. There having been raised 
in this fashion 36,000,000,000 marks in round figures, the question 
seemed justified as to whether the fifth loan could also be placed 
under the same conditions. ' ' The result was said to have been excel- 
lent with 10,000,000,000 marks taken by 4,000,000 subscribers. The 
British understanding of these Loans was that they were not meet- 
ing interest and did not provide a sinking fund, while the paper 
of one loan was largely pawned to purchase its successor. The 
total German loans issued to the close of 1916 were as follows*: 


Sept., 1914 . . . 
Sept., 1914 . . . 
March, 1915 . . 
March, 1915 
Sept., 1915 . . . 
March, 1916 
Sept., 1916 . . . 

Meantime German official policy and opinions had occasionally 
t>een stated. for the world's benefit. The Barolong case was one of 
the incidents which were created every now and then as a set-off 
to the world-wide allegations of German cruelty. It was charged 
that the officers of the British steamer Baralong had "murdered" 
a German submarine crew; the British Government denied the 
statements absolutely but offered to submit the matter, with three 
incidents, which it categorically presented, of German atrocities 
in naval warfare, to the investigation of a Court of United States 
Naval officers; the German Government refused to do so and 
threatened "to adopt measures of reprisal." An early incident of 
this year was the meeting of the Kaiser and the Czar of Bulgaria 
at Nish on Jan. 18. The latter, in a banquet speech, referred to 
the invincibility of the German army, to peace as "the holy fruit 
of our victories," to Wilhelm II as Emperor, Caesar and King, 
and the glorious leader whom the peoples of the East "salute as a 
redeemer bearing prosperity and salvation to the oppressed." The 
Kaiser delivered a characteristic speech, glorifying Bulgaria, de- 
nouncing the enemies ' * who envied Germany and Austria-Hungary 
their peaceful, flourishing and prosperous condition, and the devel- 
opment of kultur and order in all Europe," and declaring that 
they had wantonly struck at the roots of German strength. Bul- 
garia had joined the Teuton powers and secured glory and terri- 
tory; Turkey had come in and "secured her world-position. "f 

From time to time speeches delivered by the Kaiser were re- 
ported in the press with varying degrees of credibility ; one, made 
at a gathering of Army chaplains at headquarters and reported in 
the Vossische Zeitung by the Rev. Dr. Ott, bore the marks of accur- 
acy. "It is a time of sifting," said the Emperor. "The world is 
separating the chaff from the wheat. You, gentlemen, have the 
task of teaching the German nation to take things seriously and to 

*NOTK. Toronto Monet art/ limes statement, Jan. 5, 1917. 
fNoTE. London Daily Mail special report via Renter's Agency. 


accept the present as a time of trial. It is important to understand 
that life is a trial. We need practical Christianity to bring our 
lives into harmony with the personality of our Lord. . . . 
Everybody must admit that our nation is great, that it is, without 
complaints or hesitation, sacrificing for a great cause. This us an 
inspiration derived from God." On Aug. 1 the Kaiser issued a 
Proclamation to his forces on land and sea. It was a paean of 
victory and of gratitude to his people, concluding as follows : ' ' Whe- 
ther the enemy wages war with the force of arms or with cold, cal- 
culating malice, we shall continue as before in the third year 
of the War. The spirit of duty to the Fatherland and an unbend- 
ing will to victory pervade our homes and fighting forces to-day 
as at the beginning of the War." At the same time he issued an 
appeal to the people for further and greater efforts to meet "the 
iron h,ail of the English, Russian and African hordes": 

The iron hurricane rages against our brave German men at the Somme. 
Negroes and white men come upon us in wave after wave, in ever fresh storms, 
wild and sullen. Everything is at stake. The ice-cold haberdashers on the 
Thames yearn for our holiest things. The health and life of our women and 
our children are menaced. ' Even neutrals must bear hunger. Only the depths 
of the ocean now are open to us. Should we be victorious there is threatening 
a ' war after the war ' when the best energies and power of the nation, now 
expressed -by its joy in arms, will be taxed to the utmost to meet raw force, 
hatred and calumny. . 

According to the Berlin Tageblatt (Oct. 25) His Majesty 
addressed the Somme troops, urging a firm stand against "French 
insolence and English stubbornness" and declaring that "on all 
sides the German people stand in a tenacious struggle against half 
the world and against the manifold superiority of numbers. Even 
though it continues hard and endures long, yet the Lord of Hosts 
is with you." The Cologne Gazette (Dec. 13) quoted the Kaiser 
as addressing his troops in Alsace with the following explanation 
of his Peace proposals: "Confident that we are completely the 
victors, I yesterday made a proposal to the enemy to discuss the 
question of further war or peace." On Dec. 31 the Kaiser issued 
an Order to his Army and Navy, describing them as ' ' victorious in 
all theatres of war on land and sea," and with this specific refer- 
ence: "The greatest naval battle this year was our victory in the 
Skaggerak (Jutland), and the gallant deeds of our submarines 
have secured for my Navy glory and admiration forever." 

Meantime, the Chancellor, Herr Von Bethmann-Hollweg, had 
been carrying on and explaining from time to time German policy 
and practices; incidentally he was, at the close of 1916, the only 
remaining leader of a great nation who had held the chief office 
when War began. In the Reichstag on Apr. 5 he delivered a 
truculent speech (Times translation), declaring that if Mr. Asquith 
continued to desire the destruction of Prussian military power the 
only answer was that given by the sword. ''After such shocks 
history does not recognize the status quo ante. Poland after the 
War will be a new Poland. . . . Mr. Asquith speaks of the 
principle of nationalities. If he can put himself in the place of his 
unconquered and invincible enemy can he really suppose that 
Germany would ever again of her free will surrender to the rule 


of reactionary Russia the peoples that have been liberated by Ger- 
many and her allies between the Baltic Sea and the Volhynian 
swamps, be they Poles, Lithuanians, Baits, or Letts ? . . . Just 
as little can anybody suppose that in the West we shall, without 
complete security for our future, give up the occupied territories 
in which the blood of our people has flowed. We shall create for 
ourselves real guarantees that Belgium shall not be made into an 
Anglo-French vassal State and into a military and economic bul- 
wark against Germany. Here also there is no status quo ante. 
Here also fate does not retrace its steps." 

Speaking in the Reichstag (Nov. 9) the Chancellor insisted at 
length that Russian mobilization was the cause of the War but did 
not controvert the fact that Russia and Austria had agreed to a 
Conference on the very day that Germany issued its war ulti- 
matum. As to the rest, French unreadiness, Russian military weak- 
ness, Britain's infantile army, were disposed of as follows: "Not 
in the shadow of Prussian militarism did the world live before the 
War, but in the shadow of the policy of isolation which was to 
keep Germany down. Against this policy, whether it appears 
diplomatically as encirclement, militarily as a war of destruction, 
economically as a world boycott, we from the beginning have been 
on the defensive. ' ' No aggressive coalitions and no British domina- 
tion of the seas were to be the essentials of Peace. 

To the New York World on Nov. 5 he authorized the first official 
statement as to Germany's policy in the Near East: "We ask and 
fight for the right to live and to earn our living ; we must have room 
for commercial expansion. England's domination at sea has closed 
that high road against us or made it subject to her control, so we 
have worked out lines of development to the southeast through 
the Balkans into Asia. ' ' Then came the Peace offer and its descrip- 
tion in the Reichstag on Dec. 12. The Chancellor declared that 
great stocks of grain, oil and food had been captured in Roumania 
by the strokes of Von Hindenburg's sword, that all the fronts were 
held with iron certainty by German troops and that the Empire 
was not a besieged fortress but ' ' one gigantic and firmly disciplined 
camp with inexhaustible resources." Upon this basis and feeling 
his responsibilities ' ' with a deep moral and religious sense of duty ' ' 
the Emperor had proposed to the Powers, through neutral states, 
that Peace negotiations should be commenced. The following was 
the text of the Note which was thus presented to the Governments 
of France, Great Britain, Japan, Roumania, Russia and Serbia: 

The most formidable war known to history has been ravaging for two 
and a half years a great part of the world. That catastrophe, that the bonds 
of a common civilization more than a thousand years old could not stop, 
strikes mankind in its most precious patrimony; it threatens to bury under 
its ruins the moral and physical progress on which Europe prided itself at the 
dawn of the 20th century. In that strife Germany and her Allies, Austria- 
Hungary and Turkey, have given proof of their indestructible strength in 
winning considerable successes at war. Their unshakable lines resist ceaseless 
attacks of their enemies' arms. The recent diversion in the Balkans was 
speedily and victoriously thwarted. The latest events have demonstrated that 
a continuation of the War cannot break their resisting power. The general 
situation much rather justifies their hope of fresh successes. 

It was for the defence of their existence and freedom of their national. 


development that the four Allied Powers were constrained to take up arms. 
The exploits of their armies have brought no change therein. Not for an 
instant have they swerved from the conviction that the respect of the rights 
of other nations is not in any degree incompatible with their own rights and 
legitimate interests. They do not seek to crush or annihilate their adversaries. 
Conscious of their military and economic strength and ready to carry on to 
the end, if they must, the struggle that is forced upon them, but animated 
at the same time by the desire to stem the flood of blood and to bring the 
horrors of war to an end, the four Allied Powers propose to enter even now 
into peace negotiations. They feel sure that the propositions which they would 
bring forward, and which would aim to assure the existence, honour, and free 
development of their peoples, would be such as to serve as a basis for the 
restoration of a lasting peace. If, notwithstanding this offer of peace and 
conciliation, the struggle should continue, the four Allied Powers are resolved 
to carry on to an end, while solemnly disclaiming any responsibility before 
mankind and history. 

Following this the Kaiser issued a message to his Army and 
Navy in these words: ''In agreement with the Sovereigns of my 
Allies and with the consciousness of victory, I have made an offer 
of peace to the enemy. Whether it will be accepted is still uncer- 
tain. Until that moment arrives you will fight on." The inter- 
vention of the President of the United States and the unanimous 
refusal of the Entente Allies to negotiate upon these general 
premises followed. Meanwhile there had been some divergences 
of thought in Germany, some opposition shown to the policy of the 
Imperial Government. The women were said to be at the root of 
considerable dissatisfaction over food conditions, which resulted in 
riots; the Socialists lifted their heads occasionally, but not with 
much force. Maximilien Harden continued to be the one voice 
which reached the outside world in protest or opposition and, in 
the intervals of life allowed his paper, Die Zukumft, his expres- 
sions were vigorous. He claimed that Germany had always sup- 
plied munitions and weapons to belligerents in preceding wars and 
asked why the United States should not do so now ; he feared tfcat 
Roumania had moved because it thought the end was near; he 
argued (Nov. 23) that current German efforts to promote peace 
were insincere and useless and described the Entente Allies' policy 
as follows: 

(1) To bring Germany into line with the political system of Western 
Europe and to end what the Entente Powers consider to be a survival in Ger- 
many of bellicose feudalism; (2) to introduce Parliamentary government 
into Germany so that the people shall have something to say in the policy of 
the country; (3) the establishment, as the central idea of German preparations, 
of a determination to keep the peace and not, as hitherto, the determination to 
be ready for war; (4) to restrict armaments in proportion to population, and 
(5) to establish real international arbitration, based upon such guarantees as 
will insure punishment of the rebellious. 

Frederick Elbert, a Socialist leader in the Eeichstag, supported 
the Government as a whole; Vorwaerts, the organ of the party, 
opposed both policy and war action but its light was a fitful one; 
Philip Scheidemann, a Social Democrat leader in the House, 
defended Germany as to inception of the War and claimed it to 
be a defensive one, but at the close of the year wanted peace and 
was willing to waive annexations. Dr. Karl Liebknecht, the Social- 
Democrat leader, was a source of continued irritation to the Gov- 
ernment and, on June 28, he was sentenced by a military tribunal 


to 30 months in gaol for "treasonable utterances and general in- 
subordination," shown in a speech of which this is an extract: 
"We Prussians are a privileged people. We have the right to 
serve as soldiers, we are entitled to bear upon our shoulders the 
entire burden of taxation, and we are expected to hold our tongues. 
Don't talk! If you are hungry, don't talk! If your children 
starve, don't talk! They ask for milk hold your tongue! They 
ask for bread don't say a word! Comrades, we are starving, 
but no one must know it least of all the soldiers. Poor German 
soldier, he really deserves pity. Under the compulsion of a war- 
like Government he has invaded a foreign country, and is doing 
his bloody work, suffering untold horrors." Later, a letter was 
addressed to the Trial tribunal which declared that "the German 
Government, in conjunction with the Austrian Government, plotted 
this war, and so bears the chief responsibility for its direct out- 
break." The Pan-German League, on the other hand, with its em- 
bodiment of forceful militarism and ideals of conquering power, 
remained influential up to the close of 1916 and, in November, issued 
a sort of manifesto declaring "the awakening of a strong, popular 
will sure of its object" as the aim of the organization. A pamphlet 
published before the War and re-issued afterwards by the Neue 
Yaterland League explained the objects of the movement along 
lines steadily urged by the Pan-German Gazette-. 

The real goal is the acquisition of Colonies where Germans may settle, 
where German peasants may cultivate the soil; of Colonies that may supply us 
with raw material for our manufactures and use German products in exchange. 
That is the ' sure market, ' the dream of the German export trade. This Colonial 
empire can be obtained according to the view of the pan-Germans, only by 
strengthening Germany's position as a power in Europe. For this, universal 
military service must be introduced to the utmost limit, and there must be 
unhindered building 'of warships, for whose efficiency, in addition, the acquisi- 
tion of coaling stations and naval bases is indispensable. 

'Incidents of the year included the formation of a National Com- 
mittee for the obtaining of an honourable peace with Prince Von- 
Wedel, Paul Von Schwaback, Adolph Harnack, as prominent 
members; the declaration of war against Portugal on Mar. 9, 
chiefly because of the seizure of German vessels in Portuguese ports 
on Feb. 23 preceding; the capture on the Somme front by the 
British forces of a long and critical report to his Government from 
General Sixt Von Arnim, Commanding the 4th German Army 
Corps, as to the results of the battle and regarding German defi- 
ciencies in weapons and ammunition, means of communication and 
transport, with British improvements in personnel, artillery, air- 
craft, etc. Under the German Auxiliary Service Bill passed in 
December the services were called of all men from 17 to 60, the 
practical mobilization of labour was arranged for and an increase 
in munition-making provided for ; a Kriegsant or War Bureau was 
created with control over the Works Office, the Field Ordnance, the 
Munitions, the War Raw Materials Department, the Factory De- 
partment, the Substitution Service, the Food Supply Branch, and 
the Export and Import Section, with the Wurtemberg General, 


Von Groner, who had distinguished himself in railway manage- 
ment during the War, in charge. 

According to the Hamburg Fremdenblatt by April of this year 
work on two portions of the Aleppo-Bagdad Railway, which were 
being constructed before the War, had been completed; General 
Von Falkenhayn was superseded in his higher powers by Field 
Marshal Von Hindenburg who became supreme commander, under 
the Kaiser, of all the German Armies; Dr. Alfred Zimmerman 
became Minister of Foreign Affairs in succession to Herr Von 
Jagow of War diplomacy fame. The retirement of Admiral Von 
Tirpitz from the Ministry of Marine in March and the accession 
of Admiral Von Capelle were supposed to have involved a change 
in submarine policy but it was not very visible. 

German statistics, submitted to the Hamburg Institute of 
Science at the close of the year, stated that 152 German ships, 
representing 452,000 tons, had been destroyed by mines and torpe- 
does, while 267 ships, of cargo capacity of 807,000 tons, had been 
captured by the enemy and turned to his own use, and 621 mer- 
chant ships, of 2,341,000 tons, were lying interned in neutral har- 
bours. In German harbours were 490 steamships, of 2,400,000 
tons. This left about 79% of German shipping available for the 
close of the war. As to this Mr. Curtin stated in one of his Times 
articles that one vessel of 20,000 tons finished, since the War began, 
and another of 16,000 tons, lay in the Eiver at Hamburg. "The 
whole extensive yards lying in the river are full of activity. Two 
million prisoners, working from 12 to 14 hours a day, allow the 
Germans to retain men in the ship-yards who would otherwise be 
needed in the army or agriculture. The National Liberal party 
is a vast trust which embraces Krupp's mines, ship-building yards 
and factories. The scheme is brutally simple. These people 
believe that by building ships themselves and destroying enemy and 
neutrals' shipping they will be the world's shipping masters at 
the termination of war. ' ' It may be added that detailed lists com- 
piled by the United States Naval Institute showed the destruction 
up to Sept. 2, 1916, of 38 Zeppelins. 

As to the people of Germany during the year it does not 
appear that there was any clear change of view or attitude toward 
the War. Information of a kind was lavish though discussion 
was not free. The mass of Germanized war literature circulated 
abroad and, in part at home, was phenomenal Dr. T. F. A. Smith 
in the Contemporary Review for August stating that "the total 
number of German war publications down to the end of Sep- 
tember, 1915, was 6,395, classified as follows: Military science and 
the happenings of war, 1,174 ; maps, 447 ; political, economic, cul- 
tural, and philosophic war problems, 1,590; war laws and legal 
questions, 295; religious matters, 1,128; belles lettres, 1,696; var- 
ious, 65. These figures were vastly increased during 1916 with a 
total of 8,000 items at least." If militarism continued to be the 
god of the classes materialism remained the deity of the labouring 
masses. The magnificent organization was further extended and 
transferred to ever new fields such as food, supplies and produc- 


tion, but it was mechanical and absolutely lacking the soul of 
individuality. The brains at the top still ruled and were upon the 
whole blindly obeyed, while the work done abroad by clever and 
trained minds, such as those of Von Billow, Von der Goltz and 
Von Bernstorff, was duplicated in that of thousands of lesser men 
acting as instruments. Espionage remained a practical ideal of 
German thought and of the work of Embassies, consulates or dis- 
connected individuals abroad, and especially in the United States. 

The work of Bernhardi, Nietzche, Treitschke, etc., was suc- 
ceeded in 1916 b}^ such further advocacy of expansion as that of 
Friedrich Naumann whose work, Mitteleuropa, was widely read 
and formed a popular basis for the idea of a great Central Euro- 
pean state emerging out of the War and hammered into shape by 
the iron flail of Prussian war-power. It embodied to the people 
what the lure of the purple East, the vision of Asiatic empire, 
had been to Napoleon, and what it had in a vague way become to 
the Kaiser himself. The masses still were proud of the great War 
record of Germany one which must be admitted even by its 
enemies and which, came to the ordinary German mind and heart 
uiidefiled by knowledge or comprehension of the nature of the 
warfare or the origin of the conflict. It was a struggle of Ger- 
many against the three greatest of world-powers and it appeared 
as a succession of victories whose glory even privation and casual- 
ties did not yet dim to the stolid German mind. The people, 
however, were too busy with war- work to think very much. That 
would come later. Even the men at the Front were kept working 
when not fighting, while many prisoners of war and hosts of 
devoted women were maintaining industry and production at a 
high pitch. 

What was the position of Austria during this year? The 
data was infinitely less, the known facts fewer, than about Ger- 
many which stood out as the pivot upon which the War turned. 
Stories there were of internal exhaustion, of controversies between 
German and Austrian high commands, of collapse in the face of 
aggressive Russia prevented by the coming of German forces, of 
riots and racial troubles, of food scarcity and high prices, of terri- 
fic casualties. The exact conditions were unknown. Financially 
Austria and Hungary were estimated to have had a National wealth 
of $45,000,000,000 in 1914, with a population of 50 millions, and 
to be spending on the War $11,000,000 a day at the close of 1916 
with an assumed total for the three years ending in August fol- 
lowing of $9,250,000,000 or $180 per capita. The War loans of the 
Dual Monarchy were as follows: 

Austrian loan . . 
Austrian loan . . 
Austrian loan . . 
Austrian loan . . 

5i/ 2 % 


sy 2 % 


November, 1914 
June, 1915 
November, 1915 
May, 1916 


Hungarian loan 


November, 1914 


Hungarian loan 


June, 1915 


Hungarian loan . 
Hungarian loan . . 

. 6%, 5%% 

November, 1915 
May, 1916 


Total . 

. $3.834.250.000 


Meanwhile the paper currency was being steadily inflated and 
the necessaries of life were undoubtedly decreasing in quantity 
and increasing in price, while the poor classes were protected by a 
moratorium and the richer were accumulating large stocks of paper 
money. Every known method of taxation was in operation. Ac- 
cording to a neutral correspondent in The Times (Feb. 25, 1916) 
discontent was rife and in Bohemia, Northern Hungary, Bosnia, 
Croatia and Dalmatia, executions and internments ran into the 

Casualties ran into the millions and defeat, with utter military 
collapse, more than once menaced the unhappy country. Von 
Mackensen's drive across Galicia in 1915 had saved the situation 
at that time and the conquest of Serbia by German troops carried 
out a task which the palsied hand of Austria had found impos- 
sible; German backing helped the Austrians to over-run Montene- 
gro and Albania and checked Brusiloff's 1916 sweep through 
Galicia and Volhynia and Bukowina; German troops recovered 
Transylvania from the Roumanians and conquered the richest por- 
tions of that little kingdom. What the reward was to be, what the 
degree of power to be exercised by the dominating Germany over 
the weaker country, was not revealed. Announcements, however, 
were made of negotiations looking to a close fiscal and trade 
alliance. Then Von Hindenburg assumed command and unified 
all the Austrian forces with the armies of Germany, while Turks 
were brought to the Galician lines and Bulgarians fought under 
German leaders for the conquest of Roumania. The Berlin-Con- 
stantinople-Bagdad Railway strengthened German power in the 
Balkans and that Empire rapidly superseded the old-time influence 
of Austria in that troubled region. 

With the death of the veteran Emperor Francis-Joseph on 
Nov. 21, and the accession of the Archduke Charles, there passed 
away a personal factor of great importance in this Dual Mon- 
archy, with its 10,000,000 Germans inclined to view Wilhelm II 
as the head of the race, and an equal number of Hungarians 
inclined to independence and separation though this tendency was 
exaggerated in outside comments. The new Emperor-King issued 
a proclamation on his accession in which he paid homage to his 
predecessor and added: "I will continue to complete his work. I 
ascend his throne in a stormy time. Our aim has not yet been 
reached and the illusion of the enemy in efforts to throw down my 
Monarchy and our Allies is not yet broken.'' A new Premier, 
(Count Clarim-Martiniz) announced on Dec. 22 that one of his 
tasks would be ' ' the establishment of closer economic relations with 
the German Empire." 

Austria joined with Germany in establishing Russian Poland 
as an "independent State" under German conditions which were 
described by a proclamation to the people issued on Nov. 6 by the 
two Emperors and read amid much ceremony at Warsaw by Gen- 
eral Von Besseler, Governor- General of the conquered country, 
and at Lublin by the Austro-Hungarian Governor-General. It 
was stated that Their Majesties, "sustained by firm confidence in 
the final victory of their arms, and guided by the wish to lead to a 


happy future the Polish districts which by their brave armies were 
snatched with heavy sacrifices from Russian power," had decided 
to form out of these districts "an independent State with a 
hereditary Monarchy and constitution" and frontiers which 
would be defined later. Neither German nor Austrian Poland was 
included in the new Kingdom. Then came the vital point. The 
glorious Polish army was to be revived and "its organization, 
training and command regulated by mutual agreement" between 
the conquered country and two great Powers! The Austrian 
Emperor at the ?ame time promised self-government in internal 
affairs to Galicia. 

To this action the Entente Powers responded with a statement 
issued from London, Paris and Petrograd which declared that 
"it is an established principle of modern International law that 
military occupation resulting from operations of war cannot, in 
view of its precarious and de facto character, imply a transfer of 
sovereignty over the territory so occupied, and cannot, therefore, 
carry with it any right whatsoever to dispose of this territory to the 
advantage of any other Power whatsoever. . . . Moreover, in 
proposing to organize, train, and dispose of an army levied in those 
'Polish districts' occupied by their troops, the German Emperor 
and the Emperor of Austria, King of Hungary, have once more 
violated the engagements which they have undertaken to observe. 
. . . The Allied Powers, in submitting these fresh violations of 
law, equity, and justice to the unbiased condemnation of neutral 
Powers, announce that they will not accept these violations as 
justification for any future action which the enemy Powers may 
wish to take in Poland." 

The condition of Turkey was, perhaps, the least known of all 
the Teutonic Allies. Its people, headed by Talaat Bey, welcomed 
at Constantinople on Jan. 17 the coming of the first Balkan through 
train from Berlin and communication thence with Bagdad and 
Jerusalem; financially, it was carried by Germany and its note 
issues were taken at home, in Germany, and to a slight extent in 
neutral countries ; famine, want of the necessaries of life, suffering 
poor, there were in Constantinople, but how general the conditions 
were or how they affected the national vitality were not known. 
The Turkish Army was controlled and officered in all its higher 
commands by Germans; it won a triumph at Kut-el-Amara with 
its capture of 10,000 British troops; it checked several offensive 
movements by the Russians, though not till Armenia had been 
conquered and Trebizond lost. To Turkey and Bulgaria which 
latter also was largely financed by Germany the War had cost 
at least $2,000,000,000 by the end of 1916 against an estimated 
national wealth of $8,000,000,000. 

Methodis^ub ^k e wor ^ became accustomed in these years to 

marines 8 ;' an y anc ^ everv reversal of the practices, customs, tra- 

Beigium'and ditions and laws of nations at war. To Germany any 
the Little line of action which seemed necessary for war-success 

Nations or g rea ter national safety became automatically legal 

and right ; any new course of action on the part of the enemy which 

D.S.O., M.C., 

7th Battalion; killed in action at Ypres, 

June 13. 1916; son of W. C. Holmes, 



'Jnd Battalion, Winnipeg: killed in action, 

1916, after winning the Victoria 



4th C.M.R.; killed in action, July 26th 

1916; son of Hon. Hewitt Bostock, 



of Pipestpne, Man., 10th Battalion 


hurt the German people or interests, or hampered their success 
in the War, became at once opposed to International law. The 
submarine issue, after the invasion of Belgium, was the most con- 
spicuous illustration of this "will to power." On Feb. 11 the 
German press published a Government Memorandum regarding 
the future treatment of merchant vessels, as to which it was stated 
that 20 enemy ships of this character 13 unknown had dared to 
fire upon German or Austrian submarines. 

To this right of defence-armament Germany now took ex- 
ception. International law, the sea practice of a thousand years 
and British Naval instructions from 1625 down, had authorized 
the arming of merchant vessels in war-time for purely defensive 
purposes. In modern naval codes the right of a non-combatant to 
defend his ship was recognized not only by Great Britain, France, 
Italy and Russia, but by the United States, whose Naval War Code 
of 1900, Article 10, read as follows: "The personnel of merchant 
vessels of an enemy who in self-defence and in protection of the 
vessels placed in their charge, resist attack, are entitled, if cap- 
tured, to the status of prisoners of war." Against this view 
Germany now, in the above Memorandum, quoted certain alleged 
secret instructions to British merchantmen to attack submarines 
on sight which the British Government denied and answered by 
publishing the instructions referred to and proceeded as follows : 

The German Government does not doubt that merchant vessels by being 
equipped with guns acquire a warlike character, whether the guns serve for 
defence only or also for attack. The German Government considers any war- 
like activity on the part of enemy merchant vessels to be contrary to Interna- 
tional law. ... In view of the aforesaid circumstances, enemy merchant- 
men carrying guns are not entitled to be regarded as peaceful merchantmen. 
The German naval forces, therefore, after a short interval in the interests of 
neutrals, will receive an order to treat such vessels as belligerents. 

Then followed the controversy with the United States and the 
merging of this issue in the greater one of sinking neutral ships 
carrying German contraband of war without warning or care of 
passengers. The Fryatt case involved the execution of the British 
Captain of a captured merchant vessel because he had on Mar. 20, 
1915, attempted to ram a submarine in self-defence and been pre- 
sented with a watch by certain British admirers of his skill. In 
other words, for carrying out an accepted principle of naval war, 
he was treated as a pirate and not a prisoner of war and tried, con- 
demned and shot on July 27, 1916; despite also the clause in the 
German Naval Prize Regulations issued at Berlin on June 22, 1914, 
as follows: "If an armed enemy merchant vessel offers armed 
resistance to the right of visit, search, and capture, this is to be 
broken down by all means possible. The enemy Government is 
responsible for any damage thereby caused to the ship, cargo, and 
passengers. The crew are to be treated as prisoners of war." 

Meantime, the Channel and North Sea campaign of the sub- 
marines had been overcome for a period and attention was turned 
by the German authorities, with some success, to submarine opera- 
tion in the Mediterranean. Herr Von Jagow, Foreign Secretary, 


on May 4 advised the United States as to German principles in this 
matter: "Neutrals cannot expect that Germany, forced to fight 
for existence, shall, for the sake of neutral interests, restrict the 
use of an effective weapon if the enemy is permitted to continue to 
apply at will methods of warfare violating rules of International 
law." As to charges against Britain it is sufficient to say that in 
21/2 years of war no neutral ship was sunk or life lost by attack 
from the Power which ruled the seas. The German Chancellor had 
previously intimated in the Reichstag on Apr. 5 that neutrals should 
support Germany in this view: "Our right way and our duty 
should be recognized to use all means against this policy of starva- 
tion." As there was no contention that an adequate blockade of 
any country was illegal this excuse for submarine ruthlessness was 
rather weak. "When the DeutsMand, so-called merchant submar- 
ine, started home from the United States the view-point-changed 
and Herr Von Jagow said to an American correspondent (Wm. 
Bayard Hale) at Berlin on July 16: 

We claim nothing for this new type of merchantman, save that she is 
entitled to be hailed, visited and the crew placed in safety before she is 
destroyed the precise rights which have been insisted upon for every merchant 
ship by our Government. If after she is hailed, she attempts to escape she 
does so at her own risk and may properly be attacked and sunk. But to allow 
the attack without warning upon an unarmed, fragile boat, the lives of whose 
crew are at the mercy of a single shot that is something which we refuse 
to believe the United States is capable of. 

Yet this very ship was carrying nickel and other contraband 
of war and was essentially a war-ship even though not for the 
moment, armed with torpedoes. In the autumn there was a revival 
of submarine activity. Large numbers of British, Allied and 
neutral ships, including some with Americans on board, were sunk 
many without notice and including two British Hospital ships 
in the Mediterranean. Prince Von Billow was authority for the 
statement at Geneva in October that Germany had constructed 225 
submarines since the beginning of the War ; if so, she could not have 
had more than 100 available for service. So keen was the German 
warfare against Norwegian shipping at this time that 5 steamships 
were sunk in one day and at the close of the year it was stated by 
the London Daily News that 470 vessels had been sunk in the past 
three months of which 187 were British and a still larger number 
neutral. The menace to Britain in her shipping, her food and her 
war supplies had become serious. 

The sinking of neutral ships after notice, the destruction of 
enemy merchant ships at sight without notice, the sinking of neutral 
steamers such as the Lusitania without notice or saving of civilian 
life, had by now become so common that it is a question if the 
world-public gave International law a thought. Practically there 
was none. If British civilized and Christian practice demanded 
courtesy and obedience to old-time naval and military practices or 
traditions, it was expected of her and nothing else seemed pos- 
sible ; but the Teuton Allies on sea and land had put themselves 
quite beyond such things as precedent or International law. As 


the Rev. Dr. Lobel, Pastor of the Lutheran Church at Liepzic, put 
it in a sermon: "We must fight the wicked by all possible means; 
their sufferings must please us; their cries of anguish must fall 
upon deaf German ears. There can be no compromise with the 
forces of hell, no pity for the slaves of Satan ; in other words, no 
quarter for the English and the French, and the Russians, and all 
other peoples who have lent themselves to the Devil, and who have 
been in consequence, sentenced by Divine judgment to damnation. ' ' 
Let the British Admiralty's description of the sinking of the 
steamship Westminster on Dec. 14, when 180 miles from the near- 
est land, be the final commentary on this phase of the situation: 
"The Westminster was attacked by a German submarine without 
warning, and was struck by two torpedoes in quick succession, 
which killed four men. It sank in four minutes. This ruthless 
disregard for the rules of International law was followed by a 
deliberate attempt to murder the survivors. The officers and crew 
while effecting their escape in boats were shelled by the submarine 
at a range of 3,000 yards. The master and chief engineer were 
killed outright." 

As to the Land, war conditions continued to be without pre- 
cedent. Asphyxiating gasses, with all the untold, indescribable 
tortures which they inflicted, had become a matter of course in 
the struggle, despite the Hague Conference pledge of 1899, signed 
and ratified by Germany, which prohibited "the use of projectiles 
having as their sole object the diffusion of asphyxiating or de- 
leterious gasses." This particular German practice would appear 
to have been deliberate and pre-arranged as these gasses were pro- 
duced from the poisonous seeds of the Sabadilla plant grown in 
Venezuela, which for years was exported to Germany in small 
quantities and nowhere else ; but in 1913 increased to 247,226 kilos 
with 112,826 shipped in 1914, and in the same year, for the first 
time, a quantity sent to the United States which, probably, was re- 
exported to Germany. In 1915, when it could not go directly to 
Germany, the exportation increased greatly to the Netherlands. 
Akin to this was the fearful liquid fire which was used again and 
again at Verdun and far-away upon the Russian fronts; another 
was a sort of liquid which was not fire though it produced a burn- 
ing sensation and, after a few days, death from clotting of the 

The treatment of prisoners in Germany was one of the ques- 
tions of the year. They were looked upon (1) as hostages, with 
officers or men of high standing treated according to certain things 
which the authorities wanted done or undone in a similar connection 
abroad and (2) as labourers with about 2,000,000 of them at the 
close of 1916 working in Germany and Austria at reclaiming 
swamps, tilling the soil, building roads and railways, and working 
in factories. Some of the prison camps were well managed, such 
as that at Soltau; others such as Wittenberg, Ruhleben, Cassell 
end Gardelegen were centres of the worst forms of ill-treatment 
and cruelty. Wittenberg was grossly over-crowded, there was a 
great shortage of coal in a winter of severe cold, a typhus epidemic 


;| ,,fji 

was dealt with in a way described by Mr. Justice R. Younger, 
Chairman of an English Committee of Inquiry, as follows: ^In- 
credible as it may seem, the action of the officers and guards in 
precipitately deserting the Camp (when the epidemic came as a 
result of official neglect; and thenceforth controlling its caged 
inmates with loaded rifles from the outside, was only in keeping 
with the methods and conduct of these men throughout." 

Three British army surgeons, surviving out of six whom the 
Germans sent up to do their work, gave testimony to the Commit- 
tee and it appears from this that over 15,000 prisoners were 
crowded into an encampment area of 10*^ acres ; that the diet sup- 
plied by the Germans would have meant slow starvation for all 
had it not been for parcels from home; that conditions of in- 
describable filth prevailed; and that it was almost impossible to 
obtain medical supplies, clothing, or bedding. The doctors fought 
on, and eventually won out. Mr. Justice Younger and his Com- 
mittee also inquired into conditions at Gardelegen, where there 
were 11,000 prisoners, and found that a similar epidemic of typhus 
was caused by neglect, ill-treatment, starvation, cold, lack of clothes, 
soap, water, drugs and almost every essential of life. At Ruhleben, 
where 4,000 British 'civilians were interned, Lord Newton told 
the House of Lords (June 8) that conditions were ''very bad," 
and he was given to understand, on the best authority, that many 
of the men were in danger of losing their reason. In England 
27,000 German civilians were interned and it was an open secret 
that they were too well treated rather than the reverse. 

One of the chief clauses in the Hague Conventions declared 
that in an occupied territory during war "requisition of services 
shall only be demanded of countries or of inhabitants for the needs 
of the army of occupation and of such a nature as not to imply on 
the part of the population the obligation to take part in the oper- 
ations of the War against their country." In France, Belgium, 
Poland and Serbia there was no pretence by the Germans of adher- 
ing to this declaration. As to France its Government on July 29, 
1916, addressed a Note to neutral Powers, describing the manner 
in which certain populations had been treated by the German 
authorities in April of that year. "On the order of General Von 
Graevenitz, and with the aid of the 64th Infantry Regiment de- 
tached by the German general headquarters, about 25,000 French 
subjects, young girls of between 16 and 20 years of age, young 
women and men up to the age of 55, without distinction of social 
condition, have been torn from their homes at Roubaix, Tourcoing, 
and Lille, separated without pity from their families, and forced 
to work in the fields in the departments of the Aisne and the 
Ardennes." The fate of many of these people can be better 
imagined than described. As to prisoners the French Government 
contended in an official volume issued in October that the following 
accusations were proved : 

Theft from French prisoners; killing of wounded prisoners; execution 
without formality of civilians arrested on the pretext of sniping; transporta- 
tion of prisoners in foul cattle cars with healthy, sick and wounded crowded 


together indiscriminately without food or medicine; insults and violence to 
prisoners by German soldiers on their arrival in Germany; attacks upon 
French prisoners by women at Erfurt with knives, sickles and scythes, toler- 
ated by the escort; spitting upon and whipping of prisoners by civilians, and 
kicking of prisoners by young German recruits as they filed through Trogau; 
great ravages in nearly all prison camps by tuberculosis developed by neglect 
of most elementary hygienic precautions; spread of typhus among British and 
French prisoners by mixing them with infected Eussians; general prevalence 
of rheumatism in all prison camps as the result of dampness; enforced labour 
of prisoners of war on military works such as trench dipping, manufacture 
of arms and munitions; insufficient food, shelter and clothing. 

In Poland conditions were deplorable during this year, though 
German administration in every military sense was thoroughly 
organized. Supplies for the people were begged for through the 
Polish National Alliance of America and British facilities asked for 
shipment, but on Jan. 15 Mr. Premier Asquith said: "His Majesty's 
Government are earnestly considering the question of Polish relief 
in consultation with the French Government. They are faced with 
accumulating evidence that not only is the present shortage of the 
necessaries of life in Poland due to the systematic confiscation and 
export of native stock by the occupying armies, but also, notwith- 
standing the deplorable condition of the country to-day, this 
process of spoliation still continues." Obviously, he pointed out, 
the replacement of these stolen stocks of food would only involve 
help to the enemy and riot the people. Reasonable guarantees and 
oversight must first be given. 

According to the London Tablet (reprinted in Catholic Register 
of Toronto on June 15) 11,000 cases of infant paralysis had been 
reported in Warsaw, while at Lodz the situation was terrible : " To 
put it crudely, there is not enough food to go round. All the corn 
and foodstuffs that remain in Poland are being hurried into Ger- 
many. The Poles are left to starve." In a book describing con- 
ditions as he saw them Arnold J. Toynbee dealt with the destruc- 
tion of Poland the organized exploitation of food products, the 
employment of a million starving people in planting and growing 
food for export to Germany, the grant of a monopoly in the food 
trade to a German syndicate of semi-official character and to others 
in coal and coke, a destruction of native industry under which all 
possible machinery, plant, metals and supplies of raw material 
were taken away. Suspension of work and starvation, it was hoped, 
would compel migration to Germany in search of work and Prus- 
sian Labour bureaux did persuade 80,000 or more to go into what 
was practically slavery. 

The tragedy of Belgium continued to develop during 1916. 
This industrial centre of Europe was turned into an annex of 
Germany's war machine and war industries, its people into work- 
ing slaves or sufferers from varied species of persecution. The 
American Commission for Belgian Relief tried to evolve a plan 
for aiding the people to feed themselves, through rehabilitation of 
the national industries under the Commission's supervision, but it 
failed because the German authorities would not grant the request 
for guarantees that raw materials and manufactured goods should 
not be seized by the occupying armies, and because Britain, there- 


fore, could not permit the import and export of products. A 
British Memorandum, published in February, stated that the Com- 
mission's plan had then been four months before the German 
Government without reply. "Their fixed policy of impoverishing 
the country and driving the workmen into their employment now 
stands revealed. His Majesty's Government must refuse to accept 
responsibility under the conditions cited." As to this situation 
F. M. Lord French stated in London on Dec. 30th that : 

The financial robbery carried on by the Germans in Belgium, must amount 
now, at a very rough estimate, to 2,500,000,000 francs, (say $500,000,000). 
More serious still, if possible, has been the German seizure of raw materials 
and machinery of every kind To sum up, the indirect cost to the Allies has 
been the relieving of the Germans of all responsibility for maintenance of 
more than 7,000,000 people, whom, under International law, they were obliged 
to feed and maintain in health, and whom, moreover, they otherwise actually 
would have had either to feed or deport wholesale, since it is impossible from 
a military point of view to have a starving population on the lines of com 
munication of a great army. 

In March Cardinal Mercier, Archbishop of Malines, issued a 
Pastoral to his people describing recent representations made by 
him at Rome and the Pope's interest in and regard for Belgium, 
analyzing the admiration of other nations for his suffering coun- 
try, and continuing in terms bitterly hostile to Germany: "The 
conviction, natural and supernatural, of our final victory is more 
deeply than ever anchored in my soul. . . . We shall conquer, 
do not doubt it, but we are not at the end of our sufferings. France, 
England, Russia, have pledged themselves to make no peace until 
Belgium has recovered her entire independence and has been 
largely indemnified. Italy, in her turn, has adhered to the pact. 
Our future is not in doubt, but we must prepare for it. We shall 
prepare for it by fostering in our hearts the virtues of patience 
and the spirit of sacrifice." 

To this General Von Bissing, the German Governor-General, 
responded with a sharp command to the Cardinal to cease political 
activities and received a reply which lacked neither vigour nor 
capacity : " It was not, Your Excellency may be sure, without deep 
reflection that we denounced to the world the evils with which our 
brothers and sisters are overwhelmed frightful evils, indeed 
atrocious crimes, the tragic horror of which cold reason refuses to 
admit. . . Belgian, we have heard the cries of sorrow of our 
people ; patriot, we have sought to heal the wounds of our coun- 
try; Bishop, we have denounced crimes committed against our 
innocent priests." Following this the Cardinal and the Bishops 
of Namur, Liege and Tournai addressed an open letter to the 
Bishops of Germany, Bavaria and Austria-Hungary which re- 
viewed the original outrages upon Belgium and denounced the 
continued German policy toward its people. 

By the middle of the year, according to A. J. Hemphill of the 
Guaranty Trust Co., New York, speaking after a visit to the 
country, the whole Belgian nation was organized in a passive 
resistance strike.* "Belgium normally lives on imported raw 

*NOTE. Toronto News report of interview in New York July 26. 


materials and food and pays for her food by export of her manu- 
factures. This vital current is stopped by the War and 60 per cent, 
of Belgium 's work-people are idle. A large part of the commercial 
class are also idle and reduced to dependence upon charity. . . 
The outward appearance of normality is sustained only by the fact 
that relief to the value of over 1,200,000 is, so to speak, injected 
into the country every month." One-half the population was 
described as more or less destitute with 600,000 children absolutely 
dependent upon outside relief and 2,000,000 persons partially so. A 
Belgian white-book issued in August, signed by the Ministers of 
Justice and Foreign Affairs, gave the following summary of 
German crimes, proved solely by German witnesses, against the 
population of that country : 

Some 5,000 Belgians, non-combatants (several hundred of whom were 
women, old men and children) put to death; from 13,000 to 14,000 civilians 
deported to Germany as hostages and civil prisoners (about October 1, 1915, 
only 3,000 had been sent back to their homes) ; some 20,000 houses burned 
down without any military necessity; deeds of violence of all sorts and 
plundering accomplished throughout the country, under the lenient eyes of 
officers, if not with their complicity or under their orders. 

In September it was stated from Havre by the Belgian Minister 
of Finance that large enforced loans were being taken from the 
Banks under threat of the Directors' imprisonment with the actual 
arrest and ill-treatment of one of them M. Calier. A little 
later (Nov. 9) a most serious charge was publicly made by Baron 
Beyens, Foreign Minister: "The German Government is rounding 
up in large numbers, in towns and villages of occupied Belgium 
such as Alost, Ghent, Bruges, Courtrai, and Mons to name only 
the first to be victims of the measure all men fit to bear arms, 
rich and poor irrespective of class, whether employed or unem- 
ployed. Hunch-backs, cripples, and one-armed men alone are 
excluded. These men are torn in thousands from their families 
(15,000 from Flanders alone), are sent God knows where; whole 
trainloads are seen going east and south." 

On Nov. 17 a Belgian delegation to the United States presented 
an official protest to the Secretary of State at Washington, in which 
it was explicitly stated that "the German Governor-General in 
Belgium is forcing thousands of Belgian workmen who are unem- 
ployed, or without work to go to Germany, to work in the quarries, 
in manufacturing concrete and in lime-kilns, under the pretext 
that they are a charge upon public charity." It was added for 
information of the American people that "the German Govern- 
ment has absolutely paralyzed all business in Belgium. Further- 
more, the German Government, which claims to try to encourage 
Belgian industry, has imposed a war tax of 40,000,000 francs a 
month (about twenty times the normal amount of Belgian taxation) 
for the past two years upon a country which is without business. ' ' 
To these official protests Cardinal Mercier on Nov. 7 had added an 
earnest statement: 

The situation which we denounce to the civilized world may be summed 
up as follows: Four hundred thousand workmen are reduced to unemployment 
through no fault of their own, and largely inconvenience the German occupa- 


tion. Fathers, respectful of public order, bow to their unhappy lot. With 
their most pressing needs provided for, they await with dignity the end of 
their period of trial. Now, suddenly, parties of soldiers begin to enter by 
force these peaceful homes, tearing youth from parent, husband from wife, 
father from children. 

Within a week of this time it was estimated that 30,000 Bel- 
gians had been deported ; Tournai which defied the order for a list 
of available men was fined $40,000 a day until the list was given ; 
1,200 were taken (Oct. 26) from Mons Avithout necessary clothing 
or the right of farewell to their families; at Bruges the town was 
fined $25,000 for each day's delay in enrolling men for deporta- 
tion; estimates by the end* of the year ran from 200,000 to 300,000 
as the total number deported; Lord Robert Cecil, British Minister 
of Blockade, called upon the United States to interfere and end 
the outrage and declared that $8,000,000 a month was being exacted 
from Belgium by its conquerors. On Nov. 16 the Belgian Govern- 
ment sent from Havre to the Pope, the King of Spain and other 
neutral rulers a statement and earnest protest, as did Emil Vander- 
velde, Minister of Munitions and international leader of Socialism, 
in a letter to his confreres. On Dec. 5 the British Government 
issued a Declaration regarding these conditions in which it was 
stated that Allied support to the American Relief work was 
seriously endangered by the new situation : 

The Germans have abandoned all pretence of respecting personal freedom 
in Belgium. They have deliberately ordered the suspension of the public 
relief works supported by the Commission and openly aimed at creating unem- 
ployment, which furnishes them an excuse for deportations. They have become 
themselves the organizers and co-operators in man hunts which they pledged 
themselves by the Brussels Convention of 1890 to put down in Africa. The 
machinery of Belgian industry is now totally destroyed, and exports of Bel- 
gian foodstuffs (to Germany) have again begun on a large scale. The Allies 
must therefore warn the world of what is about to take place. The Central 
Empires, as their own situation grows more desperate, intend to tear up every 
guarantee on which the work of the Relief Commission rests. They intend 
to cast aside all their promises and use Belgian foodstuffs and Belgian labour 
to support their own failing strength. 

Maurice Maeterlinck followed in vigorous appeal to the United 
States for intervention: ''The population of all Belgium is being 
systematically starved. Consumption and other diseases stalk 
through the land. The miserable inhabitants are dying like ani- 
mals. Women and children are being herded into Germany to 
make munitions for the German army. Every man between the 
ages of 18 and 30 is being taken, not to German factories, but to 
German trenches." To the Governor Cardinal Mercier, on Oct. 
26 and Nov. 10, had written appealing for mercy and in the latter 
epistle exclaimed : * ' To-day it is no longer war. It is cold calcula- 
tion, desired destruction, the domination of might over right, the 
humiliation of man in defiance of humanity." General Von Biss- 
ing replied that the removals were justified by "the clandestine 
emigration of large numbers of young men wishing to join the 
Belgian army;" that Britain's "merciless economic isolation of 
Germany" bore equally upon Belgium and compelled this action; 
that many thousands had gone voluntarily to get better pay. In 


reply to United States and Spanish protests which followed the 
German Government stated that ''the unemployed (Belgians) 
sent to Germany shall be engaged in agricultural and industrial 
establishments. They will be excluded from occupations to which 
a hostile population, according to International law, cannot be 
coerced. ' ' 

Austrians under German leadership had the most terrible 
charges laid against them. According to a number of escaped 
Russian prisoners employed in digging trenches on the Italian 
front Swiss despatch, London Standard of Jan. 4 ''many of the 
Russian prisoners refused to dig trenches for their captors, where- 
upon they were subjected to all sorts of cruel tortures. They were 
deprived of food for several days consecutively ; they were beaten ; 
they were tied to posts ; they were suspended from trees by ropes 
passed beneath their arms and round their waists. Sergeant 
Alexander Sergeieff deposed that the Austrian General Hoffman 
interrogated a number of Russian prisoners while they were 
hanging from trees in this way. The General asked them if they 
persisted in refusing to dig trenches, and those who defied him 
were thrashed as they swung helpless and at the mercy of their 
tormentors." The Italian Government was stated to have proofs 
that Austrians and Bulgarians in Serbia had killed in battle or 
massacred 700,000 men, women and children. The number seems 
exaggerated but horrible details were numerous and explicit. 

Prof. R. A. Reiss of the University of Lausanne, in his pub- 
lished report on the first Serbian invasion, gave photographs and 
quoted eye-witnesses as to men, women and children mutilated, 
bayonetted or knifed, burnt alive, killed in massacres, beaten to 
death with rifles or sticks, stoned to death, hanged and bound and 
tortured. On frequent occasions the Austro-Hungarian army was 
guilty of killing captive or wounded Serbian soldiers. But the 
treatment, and the killing and mutilation, of civilians, formed the 
most terrible part of Prof. Reiss 's indictment. There were many 
pages of alleged atrocities of old men and boys tied together, 
shown their graves, arid then shot ; of civilians herded together and 
then set upon and exterminated by the bayonet ; of children hanged 
to trees ; and of women, children, and old men placed in front of 
Austrian troops during a battle. 

Such charges are hard to believe but the Austrian officers and 
troops were very different in this war from those of other days. 
They were of all races and classes and character. The bad treat- 
ment of Russian prisoners was officially denied and the Russian 
Government then appointed a Commission which reported that 
the punishment of placing men alive in a coffin, and keeping them 
there for hours with a lid containing only a small air hole, had 
been inflicted on a number in the Duna-Szerdehely Camp whose 
names and former addresses were given. So with the hanging up 
of prisoners to trees and thrashing them or compelling others at 
specified camps to dig trenches on the Russian front. The Report 
was signed by Senator Alexis Krivtsov. Atrocities are a part of 
all Balkan wars and the Bulgarians in this conflict were not behind 


the record. Gaston Richard, correspondent of the Petit Parisien, 
wrote from Salonika on June 2nd as to Bulgar crimes in Eastern 
Macedonia which had been carried on without interference from the 
German officers. Cruelties of varied nature, wholesale pillage and 
the carrying off of girls and women were frequent. 

As to the rest Turkish outrages were too many, too horrible, 
too well-authenticated and known to need extended reference here. 
The million or more Armenians slaughtered or tortured in Turkey, 
Syria and Persia have been dealt with over and over again one 
notable publication of 1916 being The Blackest Page of Modern 
History by H. A. Gibbons. This American writer denounced the 
Young Turks as worse than the men of Abdul Hamid's regime, 
and added: "When we try to find the purpose behind the Armen- 
ian massacres, we are confronted with what is, under the circum- 
stances, an eloquent accusation against the German Government 
and German people. The Germans, and the Germans alone, will 
benefit by the extermination of the Armenians. I have pointed 
out how the Armenians are the essential factor, the guarantee 
indeed, of Turkish economic and political independence in Asia 
Minor. By the same token, they appear to be the stumbling block 
to German domination. ... It was not for the Bagdad Rail- 
way alone, but also for all that the Bagdad Railway implied, that 
Kaiser Wilhelm II fraternized with Abdul Hamid after the mas- 
sacres of Armenians in 1895 and 1896. ' ' 

In Syria and elsewhere the cruelties perpetrated by Turkish 
armies or rulers controlled when deemed necessary from Con- 
stantinople, would fill many volumes of detail. Great numbers 
of Syrian Christians in and out of their country perished; it was 
estimated that 100,000 natives of the Lebanon died of starvation. 
Appeals from Armenia were sent to Berlin, as was afterwards 
found from documents captured by the British, but without known 
effect. Lord Bryce, in his Report, edited from many documents with 
sworn statements by A. J. Toynbee, gave the most terrible indict- 
ment against a nation ever made. As the veteran English states- 
man put it in his Preface: "The vast scale of these massacres 
and the pitiless cruelty with which the deportations were carried 
out may seem to some readers to throw doubt on the authenticity 
of the narratives. Can human beings (it may be asked) have 
perpetrated such crimes on innocent women and children? But a 
recollection of previous massacres will show that such crimes are 
part of the long-settled and the often-repeated policy of the Turk- 
ish rulers." From Africa also came echoes of these Asiatic and 
European practices of the Teutons and Turks. In German East 
Africa, before its conquest, a number of Englishmen and ladies 
were seized and treated with brutalities so calculating as to be 
clearly intended for the purpose of hurting British prestige amongst 
the natives by a public treatment of prisoners as German slaves; 
so brutal as to be practically unfit for record here. The Rev. 
E. F. Spanton, Principal of St. Andrew's College, Zanzibar, 
described this treatment in detail in the London Times of Jan. 12, 


1917. The following summary gives the chief German breaches of 
International law, during this period, in tabular form: 

1. Invasion of Belgian neutral territory. 

2. Treatment of Belgian civilians as a conquered people compelled to 
do what the conqueror willed. 

3. Stripping of whole countries Belgium, Poland, Serbia bare of (a) 
food supplies and (b) industrial machinery. 

4. Laying of mines in water highways of commerce. 

5. Wholesale destruction by submarines of (a) belligerent merchant 
ships without notice and (b) neutral merchant ships with or without notice. 

6. Bombardment of ' ' unfortified, open and defenceless towns ' ' on Eng- 
land 's coast. 

7. Dropping of bombs on undefended civil centres in England. 

8. Treatment of non-combatant neutrals as prisoners of war. 

9. Ill-treatment of varied kinds, cruel punishments and intense privations 
inflicted upon prisoners of war. 

10. Employment of prisoners and civilians in occupied territory on work 
associated with the War. 

11. Firing upon Red Cross stations or workers and sinking Hospital 
ships at sea. 

12. Employment of poisonous gasses. 

13. Seizure of belligerent property and undue levies upon belligerent 
centres as in Belgium. 

14. Deliberate destruction of such national institutions as Rheims 
Cathedral or Louvain University. 

15. Refusal to re-establish civil life and liberty in conquered territory. 

16. Exacting collective penalties for the offences of individuals. 

The Great British Empire in the War will be dealt with 

Powers of the separately ; of the other Great Powers ranged around 
Entente; France, or with Britain the struggles of France were the 
Russia and most strenuous in this year, the suffering the most 
Italy m 18 severe, the strain hardest to endure. Verdun called 

for men, and more men, for war material in vast quantities avail- 
able for instant use, for endurance, patient courage, keen faith in 
leaders, a patriotism which must, literally, have permeated every 
physical and intellectual fibre of soldiers and people. The siege of 
this Portress, the assaults upon the French lines and trenches and 
fortifications surrounding it, showed wonderful physical bravery 
in the Germans; they proved the French to possess a stamina 
worthy of the highest of places in history and in the lasting appre- 
ciation and admiration of peoples making up the great Alliance. 
The year began optimistically as what President Poincare termed 
' ' our year of victory ; " it ended as a year of victories but not of 
a final or conclusive character. Much of industrial France re- 
mained in German hands; such soil as was recaptured comprised 
ruined masses of scarred, beaten and hammered earth, ploughed 
up as by a succession of earthquakes. 

In an address to the soldiers of France on Jan. 1 the President 
once more stamped on written pages the spirit of his people : ' ' Now 
that war has been declared against us in spite of ourselves, we 
must carry it on, with our faithful Allies, until we have gained 
victory, the annihilation of German militarism, and the entire 
reconstruction of France." As to the future he was emphatic: 
' ' Shall we to-morrow be the vassals of a foreign empire ; shall our 
industries, our commerce, our agriculture be placed forever under 


the influence of a Power which openly flatters itself on aspiring 
to universal domination, or shall we safeguard our economic inde- 
pendence and national autonomy ? This is a terrible problem, which 
admits of no half-way solution. Any peace which comes to us with 
suspicious form and equivocal purpose would bring us only dis- 
honour, ruin and servitude." From the Czar of Russia, on the 
same day, came a despatch to the President, declaring unshak- 
able confidence in the triumph of the common cause ; to him, also, 
came a message from the British King, which marked the strength 
and spirit of their Alliance: 

Our two countries are united, in common with our Allies, in the prosecu- 
tion of a great cause, and it is a source of unfailing gratification to me that 
the two peoples are bound together by ties which the heroism and sacrifices of 
our gallant soldiers and sailors have rendered indissoluble. I beg you to accept, 
on behalf of myself and my Empire, most cordial greetings to the great nation 
over which you preside, and an expression of my deep admiration for the 
splendid qualities of the land and sea forces of Prance, which have been in 
this war of such inestimable value, and which offer a sure guarantee of ultimate 
victory. GEORGE R. 1. 

In February M. Briand, the French Premier, visited Rome and 
discussed with Italian leaders the position and progress of the 
campaign. He was given a great welcome and at a banquet on 
the 10th Baron Sonnino, Italian Minister of Foreign Affairs, 
toasted ' ' the unshakable union of the Allies for the cause of liberty 
and justice." M. Briand, in his reply, declared that "our two 
nations are equally convinced that final victory will spring from 
their firm determination to employ, in common with their Allies, all 
their resources, all their energies, all their strength." Closer co- 
operation was a natural result of the visit and it was badly needed. 
Then followed the Battle of Verdun, which began on Feb. -21 and 
lasted with varying degrees of intensity until the Battle of the 
Somme (July 1) stamped the German advance toward Verdun as 
ended and the defeat of the most savage and sustained onslaughts 
of men, artillery and munitions recorded in history up to that 
time. General . Petain was the French hero of the struggle; the 
Crown Prince of Germany the leader of the enemy forces. 

Back of Petain and of General Nivelle, his successor in after 
months, was the cool, untiring, watchful, skilful hand of General 
Joffre, who on Mar. 24, after three weeks of persistent defence, 
had addressed to his soldiers this word of hope and cheer: ''The 
battle has not yet terminated because the Germans have need of a 
victory. You will be able to wrest it from them. We have muni- 
tions in abundance and numerous reserves, but you have above all 
your indomitable courage and your faith in the destinies of the 
Republic. The country has its eyes upon you. You will be of 
those of whom it will be said: 'They barred the road to Verdun 
against the Germans.' ' 

Such words were needed at that -time as the very few descrip- 
tions of the struggle which passed the Censor indicate. One of 
them described "the unspeakable horror of the spectacle Dantes- 
que visions of piled-up dead, lit by the red flames of burning 
houses, or the green glare of rockets or the cold, white shafts of 


searchlights, deafening explosions, the sounds of shrieks and curses 
and groans, the infernal debauch of blood, fire and iron of this 
never-to-be-forgotten battle." To the intensity and import of this 
struggle no finer tribute was, or could be, paid than the speech 
delivered to the defenders by Mr. Lloyd George early in Septem- 
ber which, however, did not reach the press till the llth. From 
the casements of Verdun he told them : * ' This victorious resistance 
will be immortal because Verdun not only saved France but our 
great common cause and the whole of humanity. Upon the heights 
surrounding this old citadel the evil power of the enemy has been 
broken like a furious sea against a granite rock. I am deeply 
moved to come in contact with this sacred soil. In the name of 
the British Empire I express their admiration. With me they bow 
their heads before your sacrifices and glory." 

Long before Aug. 1-4, when the contending nations marked in 
varied ways the end of the second year of war, danger to Verdun 
was passed and General Joffre was able to congratulate his soldiers 
on their splendid five months' resistance and to anticipate still 
greater successes: "The moment is approaching when, under the 
strength of our mutual advance, the military power of Germany 
will crumble. Soldiers of France, you may be proud of the work 
you already have accomplished. You have determined to see it 
through to the end. Victory is certain." To the Army, also, 
President Poincare, on the same occasion, addressed a ringing 
manifesto, reviewing the War in its inception and progress, and 
mixing eulogy with warning. He was unstinted in praise of the 
soldiers as to the Marne, the Yser, Artois, Champagne, the Meuse 
and the Somme. "It is you who have enabled France to organize 
her equipment and Belgium and Serbia to reconstruct their armies. 
It is you who have given England the time to form the admirable 
divisions which are fighting now at your side. It is you who have 
given to Russia the means to supply rifles and guns, cartridges and 
shells, to her heroic troops." 

On Aug. 22 M. Viviani, ex-Prime Minister, in a speech ex- 
pressed views which a later phrase, used by the United States 
President, made interesting: "Although victory is certain it will 
require hard and prolonged efforts to break Prussian militarism 
and prevent recurrence of its crimes. There can be no peace before 
the attainment of victory, before adequate reparation is made and 
before justice triumphs. . . . We will accept only such a peace 
as assures legitimate reparations, as well as independence and 
security." An assured faith in victory permeated France at this 
time. The tardy declaration of war by Italy against Germany, 
the accession of Roumania to the Allies, and the fighting details of 
the Somme struggle where only the weather prevented a complete 
victory, induced the French Premier (Sept. 14), even while warn- 
ing against excessive optimism, to declare that "the hour of re- 
paration is approaching for the individuals as well as for the peo- 
ples upon whom German aggression fell." In this latter Battle 
it may be added, the French re-captured 70 square miles of trritory, 


took 30,000 unwounded prisoners and captured 144 cannon and 
500 machine guns. 

Meanwhile, many developments had occurred. A distinct reli- 
gious revival had taken place and 100,000 persons shared in the 
Te Deum for victory at the Marne, in and out of Notre Dame de 
Paris, while the ruined Cathedrals of Rheims and Ypres and Arras 
and Laon and Chartres attracted to their crumbling aisles^ as 
did more fortunate edifices elsewhere to their peaceful interiors 
throngs of worshippers who before the War never entered a church 
door. Modern ideas of the French as being all vivacity, light- 
hearted and light-headed, devoted to pleasure, degenerate in habits, 
teeming with national dissensions, were absolutely destroyed and 
replaced by knowledge of a cool, virile, courageous, determined and 
serious people. More than any of the Allies, in proportion, had 
she supplied men, and all her sons from 17 to 47 had long been 
serving on the different points, in depots or at munitions priests 
and professors, business men and financiers, loyalists and social- 
ists, all alike shared in the desperate ordeal. 

The credit of France had been splendidly maintained and, 
after 19 months of war, the Bank of France held immense reserves 
in gold while 3,000,000 subscribers had shared in a 3,000 million 
dollar loan. The women of all ranks and classes had shown equal 
endurance and resolution, old pleasures and luxuries, old-time 
ease, or short working hours, had been exchanged for every kind 
of arduous duty or responsible work. Munition-making, nursing, 
the care of 1,500,000 Belgian refugees and those from French 
territory held by the Germans, revealed many a prose poem of self- 
sacrifice. There were no labour strikes and many French capital- 
ists devoted their means freely to the creation of munitions and to 
public service. Yet, more was needed, and Stephen Pichon, in 
Paris on Dec. 2nd, urged a more complete industrial mobilization, 
while Gustave Herve described the country as hungry for decision 
and energy, and M. Clemenceau demanded a policy of blockading 
Germany which would not mind hurting the United States a little. 
Other groups of opposition and criticism there were especially as 
to the Salonika campaign but they were not strong enough to 
bring more than 165 to 314 votes in the Chamber (Dec. 13) 
against the re-organized Briand Ministry. 

Financial conditions were met with success. M. Alexandre 
Ribot, Minister of Finance, was able to raise the necessary loans 
amongst the people with striking success and to obtain large sums 
from Great Britain and several loans in New York. M. Raoul 
Peret, ex-Minister of Commerce, stated in the Chamber on Dec. 
12 that, including the first three months of 1917, France would 
have spent upon the War $14,520,000,000 or $4,000,000,000 less 
than Great Britain. As the national wealth of the country was 
at least $65,000,000,000 this was not a ruinous expenditure although 
the national resources were, of course, weakened by the rich por- 
tions of France still held by the invaders. The daily cost of the 
War to France was about $18,000,000 at the close of the year. 


Reliable statistics* of French loans up to August, 1916, were as 
follows : 

"Loan of Victory" 5s at 87 on 5.75 per cent, basin .... $3,100,000,000 

National defence bonds 1,700,000,000 

National defence obligations 300,000,000 

Advances from Bank of France to June 29 1.580,000,000 

Estimated to Aug 1 500,000,000 

Advances Bank of France to foreign Governments 228,000,000 

Bonds and notes in London 506,000,000 

Half Anglo-French loan in United States 250,000,000 

Collateral loan in United States 100,000,000 

One-year 5 per cent, notes in United Staies 30,000,000 

Banking credits in New York 50,000,000 

Advances from Bank of Algeria 15,000,000 

Total $8,359,000.000 

As to relations with Britain they became closer and closer dur- 
ing the year in finance, in joint military operations at home and 
abroad, in ever-increasing British troops on the Western front. 
During the first week of September a series of conferences were 
held in Paris between the French and British Ministers for War 
and Ministers for Munitions. David Lloyd George and Edwin S. 
Montagu were accompanied by assistants and by officers from the 
staff of General Sir Douglas Haig. An interchange of views took 
place as to the recent military operations. Measures were dis- 
cussed for the most effective employment of the joint military 
resources of France and Great Britain. It was officially announced 
that satisfactory conclusions were reached. When Mr. Lloyd 
George became Premier he at once telegraphed M. Briand (Dec. 
12) that : "I shall have no other aim than to develop and strengthen 
the bonds of friendship and alliance which unite our two countries. 
His Majesty's Government will pursue the War against the com- 
mon enemy with unshakable determination and greater vigour in 
order to secure for the Allies victory and a lasting peace." M. 
Briand sent a similar reply with "a lasting peace" as his objec- 

Incidents of the year included a French honour list on Feb. 
24, which mentioned a large number of British officers and men and 
conferred the Grand Croix of the Legion of Honour upon Gen. 
Sir Douglas Haig and created Generals Sir Ian Hamilton, Sir W. 
R. Birdwood, Sir H. S. Rawlinson and Sir H. H. Wilson, Grand 
Officers. The enormous development of the Creuzot works in steel- 
making methods, in construction of colossal machinery for handling 
metals, in the installation of United States machinery for sympli- 
fying certain processes, in the forging of better shells, in new 
appliances of chemistry to physical forces, was an important mat- 
ter. French casualties were not officially published but Deputy 
Longuet estimated the killed or totally incapacitated, up to the 
spring of 1916, as 900,000 and, including Verdun and Somme 
struggles, the total at the close of the year was at least 1,500,000. 
In May, 1916, French subjects in and out of France, under 49 
years of age, were called to the colours, as well as those hitherto 
deferred or exempt of the 1915-16-17 and earlier classes. 

*NOTE. Compiled by John Barnes, Bond Editor of the Wall Street Journal. New 


Other matters included the death from wounds of Capt. the 
12th Due de Rohan, Member of the House of Deputies, and of 36 
sons of Generals holding commands at the Front ; the appointment 
in December of General Joseph Joffre as Marshal of France, 
Commander-in-Chief of all French Armies, and head of the War 
Council of the Allies, with General Nivelle as Commander-in- 
Chief of the French Armies on the Western front and General 
Sarrail remaining in command at Salonika; the creation of a 
War Council composed of the President, the Premier, General 
Herbert Lyautey, who had just been recalled from Morocco to 
become Minister of War, Rear-Admiral Lacaze, Minister of Mar- 
ine, Albert Thomas, the organizing genius who had become Min- 
ister of National Manufactures, and Alex. Ribot, Minister of 
Finance. This Council on Dec. 23 decided that "all questions 
concerning the preparation and carrying on of the War will be 
under the direction of the War Minister, and that he will notify 
the interested Ministers and the Generals-in-Chief of the decisions 
taken and assure the co-ordination necessary to their execution." 
These were great powers and, with the accession of Lloyd George 
to office in England, and the growing force of the Allied War Coun- 
cil, promised much for future operations. 

It is impossible to generalize about Russia. As in India there 
was a bewildering variety of races, languages, ideas, religions; a 
conglomerate mass of population made up of Poles, Swedes, Jews, 
Lithuanians, Armenians, Finns, Roumanians, Tartans, Kurds, 
Kalmucks, Germans, many different types of Russian, and 100 
other ethnographic divisions; varied forms of religion running 
from Buddhism, Mohammedanism, the Greek, Orthodox and 
Roman Catholic faiths to the negation of Paganism. Barbaric 
customs and actions and inclinations had not entirely gone when 
this world-war commenced; traditions held a tremendous place in 
the Russian mind, popular prejudices as against Jews, for in- 
stance were many and varied ; ideals of popular government were 
still crude on the side of the Douma and the masses, rude in the 
municipal institutions of the country, reactionary and arbitrary 
amongst a large aristocratic class, wild and anarchistic in a section 
of the people, somewhat confused and changeable in the Councils 
of the Czar with ever-changing Ministers and confidential, treacher- 
ous, pro-German advisers to still further complicate matters. 

Into this melting-pot of conditions and opinions had been inter- 
jected for years the scheming, solid, organized power of German 
thought, policy and determined lines of action. With the coming 
of war this element in population and court and government had 
become an unmixed evil, a source of divided councils, frequent 
hesitancy of action, military difficulty, press and political divi- 
sion, treasonable action in the revealing of secrets, destruction of 
munitions, plots against the Allies, diffusion of false news and 
stories, development of enemy espionage into a science of local 
application. Out of it all, by the close of 1916, was coming a still 
worse condition of chaotic libert} r , incoherent control for a time by 
the ignorant inflammable, democracy of a few centres of popula- 


tion, a country without head or guiding principle, a nation at war 
without leader or discipline or cohesion in work or policy. 

How far the Czar controlled or was controlled by his varied 
environment during these years of war was unknown abroad. His 
personality was more or less shrouded in a mist of innuendo as to 
* ' dark forces ' ' and in extraordinary stories told of Manuiloff , Mme. 
Vasylchikova, and Stuermer, and Rasputin ; but it would seem that 
a Monarch who could press upon his Ministers the abolition of 
Vodka, against all the tremendous influences and popular support 
involved, must have had some strong qualities. He failed in clearing 
his Court of German intrigue, personalities and influences though 
the Army was largely purified; the management of reactionary 
nobles and a reform Douma was no easy task. As to the Teutons 
Stanley Washburn, a special correspondent of the London Times, 
in a book issued during 1916, stated that German organization had 
permeated Russia before the War. "This influence, working 
through a thousand hidden channels, impeded the development of 
the Russian educational system, delayed the abolition of Vodka, 
and crippled the country commercially. It was said to be 
responsible for the dismantling of The permanent forts of Warsaw 
not long before the War. German engineers, also, had built 
important Russian bridges, and so when these were blown up the 
Kaiser's army had duplicate materials with which to replace them. 
So with the officer who had laid out important forts in. the Rus- 
sian defence line and had been on Von Hindenburg's staff." As 
late as September, 1915, German power had created a most menac- 
ing political situation at the capital through false rumours and 
statements as to the War and the Allies. Only by the strongest 
efforts was the Czar able to hold the situation in hand and after 
events showed that these were often paralyzed by German influ- 
ences around the ruler. Back of these pro-German courtiers and 
Ministers was the Czarina a Princess of the Hesse-Darmstadt 
family. Whether she led, or was led, only time could say. On the 
Russian New Year's Day the Emperor issued an Order to his Army 
which was typical of preceding utterances and indicative of his 
personal feeling toward the Entente Alliance: 

In heart and thought I am with you while you battle in the trenches, 
imploring the aid of the Most High on your work, your valour, and your 
courage. Eemember this: Our beloved Russia cannot be assured of her inde- 
pendence and her rights, cannot enjoy the fruits of her labours or develop her 
resources, unless a decisive victory is gained over the enemy. Let it, therefore, 
be impressed on your minds and consciences that there can be no peace without 
victory. However great the suffering ana however numerous the victims the 
struggle may cost us, we must bring victory to our Mother Country. 

Rest assured, as I said at the beginning of the War, I will not make peace 
before we have forced the last of the enemy out of the limits of the Mother 
Country, and not otherwise than with the consent of our Allies, to whom we 
are bound, not by paper, but by sincere friendship and ties of blood. 

In the Douma on Feb. 23 M. Sazonoff, Minister of Foreign 
Affairs, delivered an optimistic speech following the news of the 
capture of Erzeroum. The reunion of dismembered Poland was 
urged, the entrance of Roumania into the Alliance would, he said, 
come in good time, an economic rapprochement with the United 


States was hoped for. As to the rest: "When dealing with an 
enemy like Germany, we must take thought in good time how best 
to prevent the repetition of the events which occurred so rapidly 
18 months ago. . . . Otherwise the sacrifices of the Allies 
would have been made in vain." An interview with this Minister 
appeared in the United States press on June 22, as given to a 
well-known correspondent at Petrograd W. P. Simms. To him 
M. Sazonoff declared that "the War can end only in one way, and 
that will be when Allied soil is swept clean of the enemy, and our 
every demand is admitted. To accept peace earlier would be to 
shirk our duty, for civilization has reached the crossroads. One 
way means the mailed fist and the will of the strongest ; the other 
the right of nations to enjoy individual culture." 

In February M. Goremykin, a representative of the Bureau- 
cracy, retired from the Premiership and was succeeded by Boris 
V. Stuermer who, upon the resignation of M. Sazonoff in July, 
assumed, also, the Ministry of Foreign Affairs. In an interview 
given the correspondent of Le Journal, Paris, (Mar. 20) M. Stuer- 
mer dealt with varied statements as to his pro-German views 
by declaring that "with equality in armaments and great super- 
iority in human resources, w r e must be victorious; that we shall 
triumph over our enemies has become a self-evident truth to 
the Russian peasant." On Nov. 24 M. Stuermer was replaced by 
Alex. F. Trepoff and for the first time in Russian history there was 
a distinct connection between the wishes of the Douma, popular 
feeling (as to the high prices of food) and a change in Ministerial 
composition. There was no doubt about M. Trepoff 's position 
toward the Allies; there had been grave doubt as to that of M. 
Stuermer who was persona grata to the German press and appar- 
ently in favour of a separate peace. English papers upon his 
retirement openly declared it a defeat to pro-German influences. 

During December came a revival of the reactionaries and an 
increasing activity amongst the reformers, with debates in the 
Douma which were at times violent. There had, however, gradually 
grown up a co-operative action, between the Council of the Empire 
a body composed of retired officers and functionaries appointed 
by the Czar with a leaven of elected members and the Douma 
which promised much and, indeed, resulted in both bodies agree- 
ing upon a Resolution which urged the formation of a Government 
capable of working with the Legislature and strong enough to 
eliminate irresponsible influences from State affairs. A curious 
personal influence was interjected into the situation by the appoint- 
ment, in October, of A. D. Protopopoff as Minister of the Interior 
and his retention in the Trepoff Cabinet. He was accused of being 
reactionary, pro-German, and in favour of an early peace. On the 
other hand M. Pokrowsky, the new Minister of Foreign Affairs, 
was acceptable to the loyal, progressive element and the Allies. It 
will be of interest to record here the various reforms asked for 
though not always in organized form or with united action by 


various parties and sections in Russia. There were (1) those 

desired at once and (2) those which might wait till after the War: 


1. Autonomy for Poland under the Eussian Parliament. 

2. Full civil rights for Jews and removal of their present disability in 
inhabiting Eussia proper. 

3. Amnesty for all political prisoners. 

4. Bemoval of disabilities of working men and recognition of right of 
organization in trade unions. 

5. Appointment of a special Minister of Munitions and eventually of a 
mixed Munitions Committee. 

6. A liberal and honest policy in respect to Finland. 

7. Complete economy and emancipation of commerce, especially from 
German restrictions. 


1. Appointment of a new Legislative body elected by universal male 

2. Autonomy for Lithuania, Siberia and the Caucasus. 

3. Eeform of the schools, autonomy for the universities, and the estab- 
lishment of secular elementary schools. 

4. Eeforms in the Church, restriction of the powers of the Synod, and 
the restitution of the Patriarch. 

5. Eepeal of the Statute of Zemstvos of 1890 and reform of munici- 
pal administration where the power is exercised by great land-owners. 

6. Restriction of privileges of local Governors which are exercised in 
defiance of the Minister of the Interior. 

7. Eestriction of the powers of the Upper House the Council of the 

8. Eesponsibility of Ministers. 

9. Liberty of the press, of speech, and of assembly in a word, recog- 
nition of the essential rights conceded in the Manifestoes of October, 1905, 
and April, 1915. 

10. Agrarian reforms. 

During the War the All-Russian Zemstvo Union and the Union 
of Municipalities had become very vigorous and powerful ; enormous 
sums were collected by them for war purposes, and hospitals and 
institutions of every kind maintained at the Front and in the 
interior; organization was carried out upon a large and practical 
scale which would have been deemed impossible a few years before ; 
immense supplies of clothing and food and motors were made or 
obtained and handed over to the War Office. At the same time the 
Russian Red Cross organization had become one of the largest 
and richest in the world with immense financial assistance from 
the nobles in the Provinces, but managed by successful business 
men elected from the municipalities. As illustrating the infinite 
diversity of Russian life the following Resolution was passed 
cabled to London from Petrograd on Dec. 17 by the General 
Congress of the Associations of Nobility : 

The Associations of Xobility, faithful from time immemorial to their 
Sovereign, record with deep regret that at this solemn and historic time 
when the principles of monarchies are especially important for the main- 
tenance of cohesion and unity, the immemorial constitution of the Empire is 
being shaken severely by mysterious and irresponsible influences foreign to 
legitimate power, which are filtering into the administration of the state. 
. . . It is necessary to uproot these mysterious influences and to create 
a strong government, Eussian to the core, possessing the confidence of the 
people and able to work in agreement with legislative institutions, but 
responsible only to the Monarch. 


Meantime the Munitions problem had been in process of solu- 
tion to some extent, at least. Lack of big guns and munitions 
and transport facilities had been the cause of the retreats in 
Galicia and Poland, the prolonged delays on various fronts from 
time to time. On May 2, 1916, R. L. Newman, an expert engineer 
who had been employed in Russia during the War, told the Montreal 
Star that "at the present time their own home factories are turn- 
ing out ammunition for their field pieces at the rate of 2,000,000 a 
month, or 36,000,000 a year." Graft, bribery and incompetent 
officials in this part of the service had been steadily weeded out 
and increasing efficiency resulted, while the Government-purchas- 
ing machinery for supplies was reformed and simplified. During 
1915 and the first part of 1916 official figures stated that "the pro- 
duction of 3-inch guns had increased eight times, of 4-inch howitzers 
four times, of 4-inch shells nine times, of 6-inch shells five times, 
of 3-inch shells 19 times, and of 4 and 6-inch bombs 16 times." 

In May, also, the Holy Synod, a body of large influence in 
Russia though its Metropolitan, Pitirim, w r as considered a pro- 
German issued an appeal to Russian artisans not to strike at the 
secret dictation of German sympathizers and to help Munitions 
in every possible way: "Defend your just interests by just 
measures, but when secret well-wishers of the Germans whisper to 
you that for this it is necessary to suspend the production of 
armaments, do not believe them. . . . Brother-workmen betake 
yourselves to work in unity. The more unitedly, the more dili- 
gently you work, the sooner we shall finish with the Germans, and 
the sooner will come the peace which we all desire." Large orders 
were placed in the United States and Canada and arrangements 
were made to direct freight via Vancouver or Seattle and Vladivos- 
tock. From Seattle on May 24 went one shipment of $15,000,000 
in war supplies. On Nov. 30 it was reported that $80,000,000 in 
gold and securities had arrived at San Francisco as payment to 
the United States for munitions and railway supplies, and that 
the total Russian expenditure to date in the Republic was $360,- 
000,000. Meanwhile Japan had been pouring in supplies, munitions 
and' big guns. 

As to men Russia was supposed to have immense numbers, 
ranging from 9 millions, available when armed and equipped, to 
double that number if all calls were made. How many were actually 
in the field could only be estimated but at least 3,000,000 men were 
require^ to hold the long war-fronts of 1916 and to fight aggressive 
actions, while the casualties must have been very heavy. The 
Grand Duke Nicholas, with his armies in the Caucasus, or march- 
ing through Persia, or conquering Armenia, had several objects 
in view the protection of the vast Russian Oil fields around the 
Caspian Sea, the capture of Trebizond, a useful Black Sea port 
needed for wider operations, the relief of the Armenians, the cut- 
ting of the Bagdad Railway, if possible, and junction with the 
British troops on the Tigris. Part of this programme was achieved. 
Early in June General Brusiloff began his great offensive against 
the Austrians and within a month had captured 235,000 prisoners, 


an estimated total of 250 large guns and 700 machine guns, with 
many supplies and transports. In the Volhynia region of this far- 
flung battle line the Austrians were driven back a considerable 
distance; a large part of Eastern Galicia was over-run and Buko- 
wina taken, together with the oft-captured City of Czernowitz 
(June 17) which the Russians had evacuated on Jan. 13; through 
the Carpathians Hungary was once more threatened but not suc- 
cessfully. German soldiers and German artillery came to the 
rescue of the crumpled-up Austrians and the advance was checked 
at all important points. 

During these great offensive operations there were a dozen 
Russian army groups involved and 600 miles of battle-front con- 
cerned, directly or indirectly, with three main divisions under 
Generals Kuropatkin, Evert and Brusiloff, respectively. Under the 
latter Commander, whose troops of about 1,000,000 men bore the 
brunt of the fighting, were four generals Sakharoff, Keladin, Cher- 
bacheff, and Lechitski while the Austrian leaders directly con- 
cerned were the Archduke Priedrich and his successor General Von 
Linsingen, with Von Hindenburg and Prince Leopold holding the 
Northern forces which were so persistently hammered while Brusil- 
off carried on his drive. Meanwhile, more and more Russian 
troops were being prepared and others getting into action as 
with the 3,000,000 men who were said to have become available 
during this summer period. Six contingents of Russian troops, 
totalling about 30,000, reached France between April and July and 
appear to have come via Manchuria and the Suez Canal, or about 
17,000 miles ; others joined the Allies on the Macedonian front and, 
in the autumn, armies of unknown numbers were trying to check 
the Germans 011 the Transylvanian and Dobrudja fronts of Rou- 
mania. Of the military situation General Brusiloff said in an 
interview with the Petrograd correspondent of the London Chron- 
icle on Sept. 6, after a high tribute to Britain for raising her army 
and an expressed belief that peace would be signed in August, 

Now the closer the connection between the Allies, the more their move- 
ments will be co-operative, and the sooner will the War be brought to an 
end. It is absolutely indispensable that all the Allied armies should fight at 
the same time, without interruption Such simultaneous and continuous action 
is calculated to bring about conditions leading to rapid success. The present 
war is one in which it is impossible for us to lose and although a vast deal 
remains to be accomplished, a successful result is ready at our hands. The 
game is already won. I said so two years ago, and I did not change my mind 
when one year ago the dearth of munitions obliged us to undergo great trials. 

The financial resources and condition of Russia were little 
known in 1914 ; by the end of 1916 they were being studied where- 
ever the world's finances were of importance. Holding territory 
twice the size of the United States and a population only exceeded 
by China and India (174,000,000), with tremendous undeveloped 
riches in agriculture and fisheries, in mines of iron-ore, coal, cop- 
per, silver, graphite, marble, petroleum, gold, platinum and other 
minerals, in forests and in all the elements of cattle-raising, Russia 
had much to commend it to men of money and foresight. Its agri- 


cultural production of 1915 was about one-half that of the United 
States (782 million bushels), with more horses and sheep upon its 
vast plains and steppes than the Republic and nearly as many 
cattle, and with, also, a potato product of 1,300 million bushels. 

According to statistics compiled in an able pamphlet issued by 
the National City Bank of New York in June, 1916, the normal 
excess of Russian exports over imports varying from an average 
of 159 million dollars in 1901-5 to 151 millions in 1906-10, and 
from a total of 220 millions in 1911 to 73 millions in 1913 had 
changed to an excess of imports totalling 369 millions in 1916. The 
closing of all ports except Archangel and Vladivostock, the neces- 
sary embargo upon certain exports, the stoppage in the large trade 
with Germany and Austria, and the essential importation of war 
supplies, were the obvious causes. In 1916, however, the new port 
of Soroka on the White Sea, and a Siberian port at the mouth of 
the Amur River, were opened. 

Russia, therefore, without a favourable trade balance, had to 
meet a normal yearly total of from 150 to 200 millions due to out- 
side nations, finance its internal military preparations and armies, 
provide for and assimilate over 2,000,000 war refugees from the 
over-run regions, purchase large war supplies abroad. The 
National Debt totalled $4,500,000,000 when the War began and 
the National wealth was estimated at $50,000,000,000 but this total 
was much below the real value of national resources owing to the 
immense private wealth of the Church and the nobles. In address- 
ing the Council of the Empire on Apr. 13, 1916, M. Bark, Minister 
of Finance, stated that Russian war expenditures to date totalled 
$6,789,000,000, or a little less than France and $2,500,000,000 more 
than Germany. A great deal of money for war and general pur- 
poses had been raised internally $8,000,000,000 in 1914, $3,000,- 
000,000 in 1915 and $4,250,000,000 in 1916.* This was not all for 
direct war purposes and some of it must have been repaid as the 
increase of the National Debt was only $10,500,000,000 during this 

Meanwhile the Russian peasant was receiving nearly two-thirds 
as much for his produce while the deposits in the Savings Banks had 
risen by $1,500,000,000 and, according to official figures issued by 
M. Bark, the deposits in the Commercial banks of Russia had 
increased in the first six months of 1916 by over $1,900,000,000 or 
450 per cent. At the same time the gold reserve had increased from 
850 million dollars on Jan. 1, 1914, to 1,750 millions on Aug. 1, 
1916 ; the issue of paper money had also grown largely from 830 
millions to 3,460 millions but the bulk of this increase was in 
1915 and during 1916 the addition was 20% compared with 55% 
increase in the gold supply. Russia also undertook, at this time, 
to begin an enormous construction of Railways and plans were 
developed for $600,000,000 of increased transportation facilities 
.to be backed up after the War by popular savings from, in part, 
the elimination of Vodka. Reliable data as to Russia's bond issues 

*NOTE. Special statement by Petrograd correspondent of New York Post, Dec. 30, 


up to the summer of 1916 was issued by P. M. Halsey of the United 
States Department of Commerce and showed a total of $2,055,000,- 
000.* The total Loans up to Aug. 1, 1916, were as follows : 

First internal, 5s at 95 on 5.35 per cent, basis $ 257,500,000 

Second internal loan 257,500,000 

Third loan, five-year 5 % s 515,000,000 

Fourth loan, ten-year, 5%s at 95 515,000,000 

Fifth loan, 5 y 2 s at 95 1,030,000,000 

Four per cent, bonds 309.000,000 

Treasury bills, 5 per cent 2,000,000,000 

Issues discounted in England 642,886,860 

Issues in France 120,896,250 

Special currency loan 103,000,000 

Loan in Japan 25,000,000 

Three-year 6^ per cent, credit in United States 50,000,000 

Total $5,825,783,110 

With Great Britain relations were excellent except when efforts 
were made by the German element in the country to promote dis- 
satisfaction with Britain's part in the War. At the beginning of 
1 1916 the situation for the moment was rather serious and official 
Russia took occasion to express its view of Britain's position. M. 
Sazonoff cabled The Times on Jan. 3rd that "every responsible 
Russian believes in England. We are absolutely certain that our 
feelings of sincere friendship are reciprocated there, and we have 
complete faith in Great Britain's amity and in her loyalty to the 
Alliance. We take no notice whatever of insinuations coming from 
outside against her loyalty." M. Kulomozin, President of the 
Council of the Empire, also cabled congratulations to the English 
journal upon its work and added: "I am confident that Russia will 
spare no efforts to attain victory. Our independence and our 
business alike are menaced by German militarism. As for the 
future, I pray for an everlasting Alliance between Russia and 
Great Britain." A little later (Jan. 30) M. Sazonoff spoke on 
international relations and said in this connection: "All rumours 
that England is taking only a minor part in the War rumours 
which our enemies spread in order to sow discord among the Allies 
are evidently devoid of all foundation. To dissipate them it is 
only necessary to recall that British losses are estimated at 25,000 
officers and 600,000 men." Sir George Buchanan, British Ambas- 
sador, took the unusual course of making a public speech at Petro- 
grad (Jan. 18) in which he said: 

Eussia, for her part, in spite of all the lies spread by German agents, does 
not doubt our determination to support her with all the resources of the 
Empire. The Fleet, as she knows, has rendered the Allies services which it is 
impossible to exaggerate, and the command of the sea which the British 
Navy has secured will prove, if I am not making a mistake, a deciding factor 
in the War. In the European wars of the eighteenth century we supported 
our Allies with our Fleet and subsidized a small number of troops. Now we 
have raised in addition an army that will soon number 4,000,000. We have 
had to transport to various theatres of war a million and a half of men, we 
have assisted our Allies with transports and munitions, and have sent sub- 
marines to co-operate with the gallant Russian Navy in the Baltic. We are 
financing the war expenditure of our Allies to the enormous amount of 422,- 
000,000. Finally, we are sacrificing the principles of voluntary service, en- 
deared to us by secular traditions under which the fabric of the Empire was 
built up. 

*NOTE. Special information as to Russia its finances and trade was issued in 
1916 by the American-Russian Chamber of Commerce at New York and by the Canadian 
Department of Trade and Commerce from its Russian Commissioner C. P. Just. 


During 1916 these clouds were largely scattered and the situa- 
tion greatly improved. Russian troops on the Allied fronts, 
British monetary advances and a British Naval armoured car de- 
tachment, which arrived at Moscow in July, were proofs of the 
change. As the months passed Russia's position in the War also 
chrystalized in policy. Its claims to Turkish territory took definite 
form in a demand for Constantinople and Adrianople, both shores 
of the Dardanelles and the Bosphorus, the Northern shore of the 
Sea of Marmora and its islands and the whole of Armenia, with 
Kurdistan, and possession of both shores of the Gulf of Alexan- 
dretta where the Bagdad Railway approached the Mediterranean. 
As to Poland it was to comprise Russian, German and Austrian 
territories occupied by the Poles with a position semi-officially an- 
nounced on Nov. 15: "Russia's intention is to create a complete 
Poland, embracing all Polish territories, which will enjoy the 
right, when the War is ended, of freely regulating their national, 
intellectual and economic life on the basis of autonomy under the 
sovereignty of Russia and maintaining the principle of a united 
State." At the close of the year two important, far-reaching utter- 
ances were made in Petrograd one by the Prime Minister in the 
Douma, the other by the British Ambassador in a public speech : 

I. Dec. 2, M. Trepoff in Douma. The vital interests of Eussia are as 
well understood by our loyal Allies as by ourselves, and that is why an 
agreement which we concluded in 1915 with Great Britain and France, and 
to which Italy has adhered, established in the most definitive fashion the, 
right of Eussia to the Straits and to Constantinople. The Eussian people 
should know for what they are shedding their blood, and in accord with our 
Allies the announcement of this agreement is made to-day from this tribune. 
There is no doubt that after she has obtained sovereign possession of a free 
passage into the Mediterranean Eussia will grant freedom of navigation for 
the Eoumanian flag, which now, not for the first time, floats in battle side 
by side with the flag of Eussia. 

II. Dec. 31. Sir George Buchanan. The British Government, when 
first approached on the subject of Constantinople and the Straits, early in the 
spring of 1915, immediately expressed its whole-hearted assent. We want 
to see Eussia largely compensated for all her services and sacrifices; we 
want to help her to the prize she has so long dreamed of; we want to see 
her strong and prosperous, and we want to consolidate for all time the 
alliance which this War has cemented, for upon its maintenance depends the 
future peace of the world. This is the corner-stone of our policy. 

Italy did its share in the world-war during 1916 but it was in 
the main a local and indirect one. Except for a small force in 
Albania she contributed nothing directly to the Alliance in men, 
money or strength. Indirectly she gave aid in the important keep- 
ing of one-half to a million Austrians busy; in cutting off from 
Germany and Austria enormous supplies of all kinds which had 
been obtained by them in the first year of the War ; in keeping the 
Austrian fleet occupied or locked up in its ports. As with Russia 
pre-war conditions had included practical domination of the 
Italian economic life by Germany. According to the British Export 
Gazette (September issue) : "Out of 600 companies trading in 
Italy no fewer than 327 had been fed by German money. The 
iron, steel, and electrical industries were absolutely German or 


German-controlled. German banking power was felt in business 
operations of every description and sucked up profits in every phase 
of Italian commercial life. ' ' At home and abroad the War was for 
Italy a national one a house-cleaning with political and economic 
enemies at the centre, an extension of territory with Italian homes 
and one-time soil in Trieste or the Trentino as the external object. 
As King Victor Emmanuel put it in an Order of May 24, following 
celebrations all over Italy : 

Soldiers of land and sea Kesponding with enthusiasm to the appeal of 
the country a year ago, you hastened to fight, in conjunction with our brave 
Allies, our hereditary enemy, and assure the realization of our national claims. 
After having surmounted difficulties of every nature, you have fought in a 
hundred combats and won, for you have the ideal of Italy in your heart. But 
the country again asks of you new efforts and more sacrifices. I do not 
doubt that you will know how to give new proofs of bravery and force of 
mind. The country, proud and grateful, sustains you in your arduous task 
by its fervent affections, its calm demeanour, and its admirable confidence. 

In June Signer Salandra resigned the Premiership and was 
succeeded on the 13th by Paolo Boselli, a veteran politician and 
ex-Minister. This incident marked the final defeat of Giolitti and 
his pro-German followers and the end of a process under which 
the curious relations with Germany were reaching a climax. Italy 
was not at war with Germany yet had agreed with the Allies not 
to sign a separate peace and had taken part in forming a permanent 
War Council of the Allied Powers, while the latter were pressing 
for the use of Italy's surplus troops on other fronts where they 
would necessarily come in contact with the Germans. On Feb. 29 
Rome requisitioned 34 German steamships interned in Italian ports 
and a little later sent troops to Salonika, while German officers 
were known to be concerned in the defence of Trieste. On Aug. 6 
the Commercial treaty still in operation with Germany was de- 
nounced and control assumed over all concerns financed by German 
capital ; on Aug. 28 war was declared against Germany and ended 
the doubtful and complex situation hitherto existing. The follow- 
ing were the chief reasons given : 

(1) The surrender to our enemy by the German Government of Italian 
prisoners who had escaped from Austro-Hungarian concentration camps and 
had taken refuge in German territory. 

(2) The invitation addressed to credit establishments and German 
bankers, at the initiative of the Imperial Department of the Ministry of 
Foreign Affairs, to consider all Italian subjects as alien enemies, and to post- 
pone all payments which might be due to them. 

(3) The suspension of the payments to Italian workmen of pensions 
owing to them in view of the formal declarations of German law. 

During the year Italy's land battles continued to make a won- 
derful story in mountain fighting, skilled endurance and unshaken 
courage. It was much more of a continuous campaign than that of 
the Western front. It included the offensive of the Austrians in 
the Trentino and the Italian counter strokes, the Isonzo offensive 
and the Carso drive. From the first Italians fought over a front of 
500 miles where almost impassable mountain ranges of 10,000 and 
more feet in height were overcome and strategic positions fortified 
by Austrian troops, in apparently supreme sway, were captured, 


while ammunition, guns and supplies were successfully carried over 
immense obstacles. Austria had lain in the mountains with the 
sun-lit plains and historic shrines of Italy below. Yet part of 
the mighty passes in the Trentino had been captured; the war of 
the High Alps, of the Dolomites and the Carnia, had been carried 
on with varying success; the struggle along the sea or the Isonzo 
front had resulted in thousands of prisoners being captured, 250,- 
000 Austrians killed or wounded; in the most terrible country of 
all to overcome, the rock-ribbed Carso on the road to Trieste, a 
degree of mastery had been attained. 

Through all these struggles, with practically four campaigns 
underway, with only a million troops available at first and many 
of these untrained but with a steady increase until the end of 1916 
when there were about 3,000,000 men under arms, Italy held her 
gates free except in the one Austrian drive during the spring of 
1916, when, with an organized local superiority of men and guns, 
the Austrians poured through the valleys of the Adige and Brenta 
and were stopped only within sight of historic Veneto. Then they 
were driven back and at the close of the year held only a rocky 
square of 100 miles along the Trentino border and upon Italian 
soil. There had followed the August drive of the Italians along the 
Isonzo and the capture of Gorizia with the October campaign in 
the Lower Carso which culminated in an Italian approach within a 
few miles of Trieste. The Commander-in-Chief in all these opera- 
tions, General, Count Luigi Cadorna, dominated the Italian mili- 
tary situation, held frequent conferences with representatives of 
the French General Staff, with Lord Kitchener and with the later 
Allied War Council. 

Financially Italy was able to hold her own though not in very 
good shape, owing to the Tripoli campaign, when the War began. 
Her National wealth ran in estimates from 10,000 to 20,000 million 
dollars; the National Debt was 2,800 millions for a population of 
35,000,000 ; the war expenses from May up to the close of 1915 were 
$800,000,000. Up to Aug. 1, 1916, a total of 1,465 millions had been 
borrowed of which 250 millions was a British war credit for sup- 
plies and 25 millions a Loan in the United States. 

As the year 1916 came to a close Italy was coming more closely 
and clearly into the Allied circle. A Pacifist Resolution in the 
Chamber of Deputies was defeated by 342 to 47 the latter chiefly 
Socialists; in the same month the class of 1896 was called to the 
colours one year in advance ; in a speech to the House on Dec. 5 
Signor Boselli reiterated the purpose of Italy to maintain the War, 
with her Allies, until the restoration of Belgium, Serbia and Mon- 
tenegro was accomplished. He termed this "the noble and essen- 
tial object of the War." The official announcement was made 
that 2,100 factories were working on war material with one-fifth 
of the employees women. The Premier in his speech of Dec. 5 
declared that Valona in Albania would be Italy's strategic post on 
the Adriatic and that from there would radiate her future commer- 
cial expansion in the Balkans. The exact territorial ambitions of 
Italy, in case of Turkish dissolution, were not officially defined but 


Teuton Success 
in 1916 


upon whose markets our produce will be placed. . . . It is 
natural that the future Serbia or, rather, the United Southern 
Slav people, will be a somewhat different State from what Serbia 
has been in the past. The new Serbia will necessarily become more 
Western, more European than the purely Balkan Serbia of old 
could possibly be. A State that includes 5,000,000 Catholic South- 
ern Slavs within its borders will necessarily be a State tolerant 
and respectful of religious and political liberty." During the 
year the Serbian refugee army, nursed in its first miseries by 
British generosity, revived and fed and clothed and trained by 
Allied action, came into its own, was assigned by General Sarrail 
the most formidable position in the proposed line of advance from 
Salonika and ultimately, after actions of conspicuous skill and 
courage, defeated the Bulgarians again and again, won its way to 
the re-capture of Monastir and stood once more on Serbian soil. 

Actuated by purely national ideals and ambitions, anxious to 
round-out her racial and territorial conditions by the acquisition 
of Transylvania and Russian concessions in Bessarabia, believing 
the great Brusiloff offensive to mark Russian mastery on the Aus- 
trian and Balkan fronts, affected sentimentally by racial sympathies 
with Russia and intellectual influences from France, Roumania 
came into the War. She had been kept, by the late King Carol's 
German birth and feelings, by a lack of armament and, perhaps, 
by a lack of faith in Allied success, from coming in before. With 
Russia, however, in possible occupation of Constantinople and 
able to strangle Roumania commercially by its control of the 
Dardanelles and the only waterway through which its bulky ex- 
ports of wheat, petroleum and timber could pass, it became essen- 
tial for the lesser country to be on the right side. With her 8,000,- 
000 people and a possible addition of 4,000,000 more from Transyl- 
vania and the Bariat, with its imports of $118,000,000 and exports 
of $134,000,000, with an army generally assumed to number 500,000, 
with great agricultural riches and petroleum production, Roumania 
appeared to be a factor of importance. 

Take Jonescu, the Opposition Liberal leader in her Parliament, 
had been an early and strong advocate of intervention. On Jan. 
4 he declared that : ' ' Roumanians of common sense know that our 
national unity and honour will compel us to fight with the Entente 
Allies whose victory is certain despite Germany's ephemeral suc- 
cesses in the Balkans, due to Bulgaria's perfidy and the coup d'etat 
of the Greek King, who took up an attitude contrary to the wishes 
and interests of his people." For months, however, as in the pre- 
ceding period, Roumania continued to play the neutral with its 
affairs in the hands of M. Bratiano, a statesman noted for caution 
and foresight. German agitators and concealed sympathizers, Ger- 
man trade and diplomacy and money, and possible victory, con- 
tinued to be factors, and it was not until August that the pendulum 
swung slowly and surely toward the Allies, with satisfaction of 
national aspirations as the avowed reason. War was declared 
against Germany on Aug. 27th and on the 28th 'Count Czernin, 
Austro-Hungarian Minister at Bucharest, received a Note from the 


mmanian Government summarizing their reasons, which may be 
fiven as follows : 

1. The Triple Alliance, to which Boumania was indirectly a party, was 
broken when Italy declared war against Austria-Hungary. 

2. Austria-Hungary's assurances that it was not inspired by a spirit of 
conquest or territorial gains, in attacking Serbia, have not been fulfilled. 

3. Eoumania is confronted with territorial and political changes menac- 
ing her future. 

4. Roumanians in Hungary suffered oppression, arousing a continual 
state of animosity between the two races. 

5. Boumania desires to hasten the end of the War, safeguard her racial 
interests, and realize her national unity. 

The peoples of the Entente Alliance hoped much from Rou- 
mania; whether their rulers did so or not was far from clear in 
1916, though they expressed much gratification at the event as a 
proof that they were the heirs to victory. They surely must have 
been aware, however, of the absence of big guns, the shortage in 
munitions, the impetuous intentions of the political leaders which 
at first controlled the nation's war strategy. The German rulers 
resented the action, though they, probably, had anticipated it in 
their preparations ; their public resented it because some time before 
ammunition in quantities had been exchanged for Roumanian 
grain. Considerable financial interests were concerned and, while 
a large part of the purchase price of the Roumanian 1915 crop 
remained in the Reichbank, large amounts of German capital were 
invested in Roumania and part of the Roumanian National Debt 
was held in Germany. 

The Queen of Roumania, a daughter of the late Duke of Edin- 
burgh and a great grand-daughter of Czar Nicholas I, was strongly 
in sympathy with the Allies and may have had an influence over her 
husband similar to the alleged influence of the Kaiser's sister over 
her husband, the Greek King. The first results of Roumanian 
action were the shipping of French guns and munitions from Rus- 
sia, the sending of other war material from France, the purchase by 
Great Britain of the new 1916 crop and advance of needed money, 
the promise of troops from Russia, the shipment of war equipment 
from Italy. 

Then followed the dash into Transylvania, the winning of the 
passes, the capture of various towns, the over-running of much 
territory, the proud feeling of conquest which did not last long. 
They had left their own southern frontier unprotected and slowly, 
relentlessly, the carefully worked out schemes of Von Hindenburg 
were carried through by Von Falkenhayn and Von Mackensen. The 
Roumanian troops were driven back, the passes of the Carpathians 
stormed, the plains of Roumania occupied and the German drive 
carried into Bucharest and a little beyond, while Von Mackensen 
occupied the Dobrudja, captured Turtukan and Sillistria and Cont- 
stanza, the Czernavoda Bridge and the control of the- lower Danube. 
More than half of Roumania with its capital and great oil-fields, at 
the close of 1916, were in German hands but, though partly over- 
run, the country was not conquered, the people were unsubdued, 
the armies were safe in the main, though bedraggled and driven 
from pillar to post. 


The Russians came in time to prevent the conquest of the 
whole country and, as winter settled down upon the scene, held 
the invaders on the Sereth and stopped their further advance. The 
campaign appears to have been a series of blunders or misfortunes, 
and Frederick Palmer, the able United States war correspondent, 
put his finger on the facts when he said at New York on Nov. 16 
that "at the start the Roumanians ran away with the bait. They 
would not listen to the advice of the Allied commanders. They 
wanted Transylvania, and started through the passes to take it, 
closing their eyes to Bulgaria (whose forces were in Dobrudja). 
Indeed, they thought they had assurances that Bulgaria would not 
join in; but nobody ought to have known better than they that 
assurances are poor collateral in the Balkans. The Germans 
gathered all the Turks and Bulgars possible, on the one hand, and, 
on the other, all available Germans, Austriaris and Hungarians; 
and, with the best generals and every gun that they could concen- 
trate, attempted another drive such as they had made against 
Belgium, Serbia and Poland." That was checked but much harm 
was done ; injury to the Allied cause which would have been most 
serious had the oil-fields not been carefully put out of business by 
a contingent of British engineers under Col. Norton Griffiths, M.P., 
before they were captured. 

The incapable Roumanian commanders were then changed, 
French officers re-organized the army and Russian troops took hold 
of the lines of defence. There had, also, been unexplained delays 
in the promised Russian aid, though difficulties were many and 
obvious enough in that connection, while the hoped-for Salonika 
advance was largely a failure due, in some degree, to a lack of 
guns and munitions, and in part to the danger of the Greek army 
in the rear. From being a source of potential strength to the 
Allies and a menace to the Teutons, Roumania had been changed 
within two months to a source of recuperative power for the Ger- 
mans and another bit of needed prestige for their armies; an 
object of defence and protection requiring more men and money 
and munitions from Allied sources. On the other hand the 300,000 
men engaged in the campaign were only partially gone at the 
most, 100,000 of them ; enough remained, with the additions to be 
called out, to make another and more efficient army after a stage 
of equipment and recuperation. 

Incidents of this period included the establishment of Prohibi- 
tion in Roumania, as a War measure; the effective use of British 
armoured automobiles in the final checking of the German advance ; 
the aid given by pro-German Roumanians to the Teuton armies and 
the presence, with the invaders, of Prince Auton Karl of Hohen- 
zollern, brother of King Ferdinand, as one of their Commanders, 
and issuance of a proclamation from Craiova declaring himself 
to be the rightful heir to the Roumanian throne. Another brother, 
Prince William, was also a General in the German service. As to 
finances Roumania had, up to her entrance into the War, obtained 
$70,000,000 from internal loans for purposes incidental to the 


ar, of which the estimated cost, up to March, 1917, was $450,- 

Greece, to the outside world during 1916, was a mystery, its 
diplomacy and policy a maze and tangle of conflicting actions, its 
treatment by the Allies a subject of hostile criticism or friendly 
amazement. The real situation, probably, was a mixture of high 
politics and strategical considerations on the part of the Allies ; of 
a tortuous but persistent effort by a Germanized King to (1) keep 
his people from following their natural interests and aspirations 
and joining the Entente, and (2) do as much injury to the latter 
by delays and unceasingly new complications as was possible. King 
Constantine believed that the Germans would eventually reach 
him and save his position ; he knew that neither the Russian Czar 
nor the King of Italy had any desire to see a Republic set up in the 
Balkans which it was thought without any apparent basis 
might develop if Venizelos had his way; he knew, also, that while 
the Venizelist policy spelt revolution to Russia it meant a Greater 
Greece which might have run counter to Italy's ambitions; his 
wife, as the Kaiser's sister, may have kept German power and 
German policy before him, though her influence was greatly exag- 
gerated; his military strength, though not great, would in certain 
possible junctures have enabled him to throw a German-led army 
upon the backs of the Salonika forces. 

On the other hand the Allies had absolute command of the sea 
and geographical conditions made it possible for them to stop 
Greek trade and practically starve the Greek nation, should they 
desire to do so ; though strenuous action would be construed abroad 
as an attack upon a small neutral 1 nation a German offset for 
Belgium. Another, and one of the chief Allied difficulties, was 
the ever-present, multiform work, of German spies and influence, 
of German intrigue with Baron Shenck as the central figure, backed 
by German credentials, money and the local Embassy. Greek 
newspapers, facile politicians, frankly Germanized officers and 
men, an ignorant populace, made easy marks when handled by a 
clever personage with lots of money and Court influence behind 
him. When Shenck and the enemy Embassies were cleaned out it 
was too late the harm was done. 

Whatever the reasons Greece was treated with a consideration 
which often spelled weakness and vacillation to the outside world. 
The occupation of Salonika, originally undertaken to help the 
Greeks in their treaty-pledged support of Serbia and by invitation 
of Venizelos when Premier, w r as maintained to aid in winning 
back that unfortunate country after Constantine had deserted it 
and the Allies were not strong enough to advance alone. With 
Salonika, and as a strategic part of the policy made necessary 
by the Greek King's tortuous action, there were, also occupied by 
the Allies, Lemnos, Imbros, Mytilene, Castelloriza, Corfu, a part of 
Macedonia and the Chalcidice Peninsula. In an appeal to the 
United States, by way of an Associated Press interview, the King, 
on Jan. 13, denounced the Allied treatment of Greece as on a par 
with the German action in Belgium. His Majesty's comments were 


sufficiently tart: ''The history of the Balkan policies of the Allies 
is a record of one crass mistake after another, and now, through 
pique over the failure of their every Balkan calculation, they try 
to unload on Greece the result of their own stupidity. We warned 
them that the Gallipoli enterprise was bound to fail, that negotia- 
tions with Bulgaria would be fruitless, and that the Austro-Germans 
would certainly crush Serbia. They would not believe us, and 
now, like angry, unreasonable children, the Entente powers turn 
upon Greece." As to the War itself he declared it would be a 

The Allied answer to these statements was indirect only. The 
occupations of territory were admittedly temporary in a cause with 
which the Greek people, if not the King, were in sympathy ; Salon- 
ika was first used to succour Serbia, the Ally of Greece, and its 
occupation welcomed by the people, while in Belgium the whole 
world knew what had happened; Germans and Austrians were 
found to be using Greek islands and harbours for their submarines 
and this made further Allied occupations necessary; the Greek 
Government believed in and wanted to share in the Gallipoli cam- 
paign, but their demands were so extreme that the Allies declined. 
Prince Nicholas, a brother of the King, in a statement published on 
Feb. 13, declared that Greece at the beginning of the War had 
declined the request of the Central Powers to join them ; at a 
later stage she declined to join the Entente group but promised 
" benevolent neutrality." The Serbian treaty, he stated, was one 
applicable to Balkan conditions only and Hot to a war with Ger- 
many and Austria. Following this the Venizelists were not idle and 
at a great pro- Ally demonstration in Athens on Aug. 27 Resolutions 
were passed for presentation to the King, declaring that he had 
fallen a victim to evil advisers who sought to nullify the Revolu- 
tion of 1909, and achieve a return to the former state of misgovern- 
ment; that he accepted advisers of purely military and oligarchi- 
cal ideas who had persuaded him that Germany must be victorious; 
that these advisers hoped to set aside the free constitution of Greece 
and concentrate absolute power in Royal hands. 

In an interview given out at Athens on Sept. 20 M. Venizelos 
described the situation under Bulgarian invasion and the Gov- 
ernment's inaction as deplorable. "Our boundaries have been 
invaded ; towns, crops and farms have been destroyed, and horrors 
enacted. We have had all the feelings of war and the cost of main- 
taining a useless mobilization. The morale of the army, which 
three years ago was at the topmost pitch, has been destroyed by 
inaction and is now completely gone. We have an army corps of 
Greeks held prisoners of war in a foreign country (kidnapped by 
Germany) and already we have paid the Bulgars an immense war 
indemnity, amounting in military equipment, property destroyed 
and loot of Greek cities occupied, to over $40,000,000." About 
the same time the Liberal leader left for Crete in order to establish 
a Provisional Government which should have war as a policy and 
the closest co-operation with the Allies. He was joined by Admiral 
Conduriotes, Commander of the Greek Navy, and most of the Fleet 


followed suit. At a Salonika banquet on Oct. 14 M. Venizelos spoke 
out in clear language: 

The Greek people have been led to the brink of a precipice by a con- 
scienceless Monarchy, which has made common cause with the politicians of 
our decadent epoch. When this great War afforded us the opportunity of 
realizing our national ideals our people were prevented from pursuing the 
path to their glory because of an alliance with hereditary enemies. King 
Constantino believes himself King by the grace of God. This conception is 
diametrically opposed to the mind of the nation, which admits of a regime of 
Royalty, but desires that Royalty shall be democratic. 

On Nov. 25th his Provisional Government declared war against 
Germany and Bulgaria, and Venizelos with his followers joined 
the Allies at the Front. On Dec. 1st occurred the riot at Athens. 
The city had been partially occupied by Allied troops in order to 
ensure compliance with certain demands, and a force of about 
3,000 appears to have been wantonly attacked by the King's sol- 
diers, armed with rifles and machine guns, and placed in excellent 
positions, with numbers stated as high as 25,000 after the veil of 
the censor was lifted. Many lives were lost and the Allies with- 
drew. A night of terror followed at the hands of reservists and 
about 2,000 Venizelists, or so-called rebels, were arrested and a 
hundred or so killed. To neutral nations an appeal followed from 
the Greek Government, pointing to the seizure of part of its Fleet, 
the restrictions of the blockade imposed until guarantees and terms 
were accepted, the stoppage of trade and foreign control of some 
of its public services. The Government intended to refuse the last 
demand of the Allies for the surrender of war material and was 
said to be supported by the army. Hence, no doubt, the "riot" as 
a final resource. On Dec. 7 a formal blockade of Greece was an- 
nounced by the Allies and was maintained up to the close of the 
year. On the 9th Viscount Grey, British Foreign Minister, issued 
a statement as to Greece, in which he said : 

The Greek posts, telegraphs and wireless stations were being used to the 
prejudice of the Allies. The police and so-called reservist associations were 
becoming centres of anti-Ally propaganda, and the enemy legations had 
become the agencies of an elaborate system of espionage. These dangers had 
to be averted, and it was also necessary to ask the Greek Government to hand 
over to the Allies an equivalent amount of war material to that with which it 
had furnished the Central Powers by the pre-arranged surrender of Fort 
Rupel and Kavala. This the King had spontaneously offered to hand over 
to the Allies, and when the obligation was not fulfilled the demand for the 
surrender of the material was the cause for the recent grave disturbance. 
Allied troops were landed to enforce this demand, and, although a definite 
promise had been given by the King and Government that order would be 
maintained and that Greek Royalist troops would in no case begin hostilities, 
the Allied troops were treacherously attacked and suffered considerable losses. 
The Royalists also took advantage of the situation to treat the adherents of 
M. Venizelos, who are in the minority in Athens itself, with the grossest 
brutality, of which particulars are now beginning to arrive. 

Portugal had been on the verge of war with Ger- 
^many ever since August, 1914. Its Colonies in Africa 
d been raided by Germans, its shipping, as with all 
Neutral Nations neutrals, more or less injured by submarines, its old- 
time Alliance, beginning as far back as 1373, with 
Britain, was at stake and would have involved war at once had 


Great Britain asked for aid. A strong internal party urged inter- 
vention, and troops were sent to strengthen Portuguese East Africa, 
which ran along the southern frontier of German East Africa. On 
Feb. 23, 1916, German ships in Portuguese ports were seized and 
utilized in current commerce. On Mar. 9 Germany declared war 
on Portugal with the seizure of the ships as the chief reason given 
but with, also, the enumeration of various alleged breaches of 
neutrality such as the permission of free passage to British troops 
through the Colony of Mozambique; permission given to British 
men-of-war to use Portuguese ports for a time exceeding that given 
neutrals; permission given the British Navy to use Madeira as a 
naval base; actual engagement between Portuguese and German 
troops on the frontier of German Southwest Africa and Angola; 
frequent insults to the German nation by members of the Portu- 
guese Parliament, who were never reprimanded. 

Portugal's Colonies were important and, had Germany con- 
trolled the seas, would have been pleasant prey to her Navy; its 
population, however, was less than 6,000,000, its trade only $150,- 
000,000, its army about 30,000 men with reserves of 200,000. It 
was pointed out by Portugal that compensation was promised for 
the ships and that there was no real casus belli; Sir Edward Grey 
observed in London (Mar. 14) that "Germany, who has accused 
Portugal of a breach of neutrality, had herself, in October and 
December, 1914, raided the Portuguese colony of Angola and tried 
to stir up a rebellion in Portuguese East Africa." At this time a 
statement was issued by Viscount de Alte, Portuguese Minister at 
Washington, which contained this paragraph: "Like Belgium, 
Portugal desires nothing that belongs to any other nation ; she has 
nothing to gain and much to lose in the present conflict. But she 
is ready, notwithstanding, to aid England to the full extent of her 
resources whether great or small because the treaties in force 
compel her to do so and because her people firmly believe that 
international good faith, as evidenced by the fulfillment of treaty 
obligations, which is the principle for which Great Britain is 
fighting, provides the only basis on which intercourse between 
civilized nations can securely stand." At the close of the year a 
Portuguese Contingent was fighting with the Allies on the Western 
front and Portuguese soldiers were helping General Smuts to con- 
quer German East Africa. 

Japan did not appear in the active operations of the War dur- 
ing 1916. Its Army and Navy were not required under existing 
treaties and obligations for anything but Oriental services and no 
occasion arose for their use. The country did, however, render 
immense service to Russia and other Allied nations by the supply 
of ammunition, artillery and other military equipment, while its 
industries and trade experienced during 1916 an unprecedented 
prosperity. Early in the year it was stated unofficially that the 
British Government had guaranteed payment of Russian demands 
for an enormous quantity of war supplies; the Japanese big mer- 
chant marine not only transported supplies for the Entente Pow- 
ers but, so far as the Orient was concerned, practically took over at 


immense profit the sea transportation held in time of peace by 
the vessels of Great Britain. Freight charges to all points, in- 
cluding the United States, soared, with corresponding profits; the 
Russo-Japanese Treaty* was practically an extension of the Anglo- 
Japanese Alliance. G. G. S. Lindsey, K.C., a Canadian who spent 
many months in China on official business drafting new Mining 
laws for the Republic told the Toronto Globe, on his return 
(July 21) that: " Japan controls the Pacific. She released the 
British Pacific fleet for North Sea purposes, and has policed the 
Pacific ever since. She has supplied Russia, her old enemy, with 
the guns and munitions she used in the recent drives, and has given 
her the new explosive of which the Germans and Austrians talk 
so much. But she has made Russia pay. . . . Japan has got 
Manchuria, for she has got the railway. She is making money 

The Marquess Inouye, Ambassador at London, passed through 
Canada during the year and in a Toronto interview (Aug. 3) 
stated that "the major portion of ammunition used by the Czar's 
armies in blasting their way through the Austro- German front in 
both Poland and Bukowina came from Japan, and much of the 
Russian military success is due to our unfailing supply of high 
explosives and other munitions." In various other interviews he 
reiterated this statement and deprecated any idea of Japanese 
hostility to the United States. Meanwhile, the Marquess Okuma 
had given way as Premier to Field Marshal Terauchi who repre- 
sented the Militarist spirit of Japan the party that aimed at add- 
ing Chinese Manchuria and Mongolia to the Korean Kingdom which 
had been acquired and re-christened Chosen. 

As to internal affairs Japan, in 1916, was accumulating great 
wealth. It was only nominally at war and Germans in Japan, 
together with German business interests, were treated with the 
greatest consideration ; its whole resources were devoted to benefit- 
ting by current conditions. Financially its revenue had for years 
been greater than its expenditure outside of war expenses; in 
July $50,000,000 were lent to Great Britain on Treasury bills, and 
in December arrangements were made for the turning over of 
$50,000,000 in American credits as another Loan. Specie holdings 
doubled during the war period of 1914-16, Russia also floated a 
$25,000,000 loan in Japan and obtained a war supply credit for 
$40,000,000 more ; the ship-building, cotton, chemical and metal 
industries found great expansion. Japan came to the front, there- 
fore, in many ways during the year ; so far as its surplus population 
was concerned, however, it still had no place in the sun. 

Neutral Powers during 1916 had a most unhappy experience 
and the closer they were to the seat of war the more strenuous was 
the situation. The British Navy was omnipotent, exacting, restric- 
tive, troublesome, in its efforts to prevent supplies from reaching 
the Central Powers; at the same time it was considerate in details, 
courteous in treatment, legal in action as its almost over-sensitive 

*NOTE. See 1st Sub-section of volume, page 32. 


Foreign Office construed legality. The German submarine force, 
on the other hand, was indifferent to all rules, regulations or pre- 
cedent, oblivious to suffering or hardship or even death, merciless 
in its sinking of almost every kind of neutral or enemy ship, above 
or below all restrictions of International law. With countries such 
as Holland or Norway it was necessary to accept German action 
under or without protest, or suffer something much worse; Great 
Britain argued the matter with them at length, modified details if 
found to be harsh, made adjustments of a business character for 
special control of exports and imports, and did more than was 
advisable, at times, to soften the application of war measures. 

Despite the blockade neutral countries near to Germany im- 
ported largely throughout 1914-15 from the United States for 
export to the Teutons. During these years United States wheat 
increased in export to these countries (Scandinavia and Holland) 
from 15 million bushels in 1913 to 50 millions in 1915, flour from 
1,500,000 barrels to 5,100,000, bacon from 30 to 93 million pounds, 
boots from 462,000 pairs to 4,800,000. Put in another way the 
increase of United States exports in the first 10 months of 1915, 
to Holland and Scandinavia, was $169,000,000 and the decrease of 
United States exports to Germany was $160,000,000. Such neutral 
countries benefitted financially by the War but suffered, also, as in 
the case of Holland, where a large Army had to be kept mobilized 
and multitudes of refugees aided and fed. In a London interview 
on Dec. 30 Field Marshal Lord French dealt with the value of the 
impressed labour of little countries to an unscrupulous conqueror 
and the danger of Holland, Denmark and Norway being seized for 
that purpose. The cost of the War to neutral nations aside from 
the United States was a huge amount and was shown in the Loans 
made for preparedness and emergencies. The following table 
gives* the facts up to Aug. 1, 1916, concisely : 

Netherlands 5 per cent, internal loan $110,000,000 

Netherlands India loan 25,000.000 

One-year Treasury loan 8,000,000 

Roumania 4 per cent, loan from National Bank 40,000,000 

Internal loan 30,000,000 

Egypt, Treasury bills 25,000,000 

Switzerland internal loan 16,000,000 

Internal 4% per cent, loan 20,000,000 

Notes in United States 15,000,000 

Internal 4 ^ s at 97 20,000,000 

Danish 4s and 5s 28 000,000 

Spanish 4 % s at par k 10,000,000 

Spanish 3s 14,800,000 

Loan to refund bonds in France 40,000,000 

Greece from England, France and Russia 8,000,000 

Internal 5s at 88 % 23,000,000 

Norway internal loans 8,000,000 

Notes in United States 3,000,000 

Seven-year 6s. in United States 5,000.000 

Sweden internal loans 9,380,000 

Notes in United States 5,000,000 

Total Neutral Loans $463,180,000 

The three Scandinavian countries combined in various direc- 
tions and at a Conference of Ministers held at Copenhagen on 
Mar. 11 such subjects as submarines, mines, the blockade and the 

*NOTB. Compiled by the Wall Street Journal. 


possible extension of the blockade were discussed. An agreement 
was come to on some at least of these questions and the official 
announcement made that the Governments would continue to act 
in common and preserve neutrality. In September another Con- 
ference was held, at Christiania, and dealt especially with the 
destruction of neutral prizes at sea, interference with neutral ship- 
ping and the British Black list. More extensive collaboration of 
Neutral Powers especially with the United States was urged. 
Meanwhile in Stockholm, Christiania and Copenhagen the large 
floating population supplied thousands of spies and provided Ger- 
many with all possible information from their various sea-ports. 

During the year Spain was much troubled by a pro-German 
propaganda with Barcelona as one of the chief centres and with 
much damage to factories making war supplies for the Allies. A 
strong group of Carlists, a great part of the aristocracy and a con- 
siderable section of the middle class, took the German side. A 
majority of the active Churchmen were pro-German according to 
Lord Northclift'e, though 500 prominent Catholics signed a docu- 
ment expressing sympathy with the Allied cause ; persistent German 
work on the part of University professors and many school-masters 
was carried on, while German settlers in Spain, including many 
1914 refugees from France, totalled about 100,000 and were con- 
tinuous agents of Germany. The arguments of the propagandists 
were very subtle and really kept Spain neutral though they were 
not quite strong enough to make the people enemies of the Entente. 

Arguments were presented to the clerical mind that the Kaiser 
intended to restore the temporal power of the Pope, to the mili- 
tary mind that he would inaugurate an era of dazzling mili- 
tary power in Europe, amongst the population generally that he 
would restore Gibraltar to Spain, allow her a free hand in Portugal 
and make her the chief power in Morocco, amongst the upper 
classes and reactionaries that he would put a muzzle on democracy. 
Much news of the War was Germanized in the press. Yet the 
mass of public opinion was satisfied to remain neutral and much, 
of it was pro- Ally ; as a result the United States invitation to force 
a premature peace was received with the official statement, at the 
close of the year, that such action would be ''inefficacious." 

Switzerland was in a very difficult position. If of any advan- 
tage, in a desperate crisis, there was little doubt felt that Germany 
would .break its neutrality and attack France from a new base. 
Racially the Swiss were German, Italian or French in their char- 
acteristics and border associations ; the question was whether tradi- 
tional patriotism and love of country would win out in such a case 
against an invasion from the German frontier where there were no 
visible Swiss fortifications. The majority of high opinion and 
popular sentiment was inclined to be pro-German; in a majority 
of the Cantons German was the language of the people, and the 
whole country was a hot-bed of plots and spies with a people de- 
pendent for supplies and food upon three belligerent nations; yet 
they were doing a big business and the country had become one of 


the chief mechanical workshops of the world. At Lausanne, a pro- 
Ally city, the German Consular flag hoisted on the Kaiser's birth- 
day, (Jan. 27) was pulled down by a mob; the Federal Council 
in special session at once apologized to Germany. Nearly all the 
Federal Insurance Fund was found early in 1916 to have been 
invested by German-Swiss officials in the German war-loans, to 
the intense indignation of Ally sympathizers. The Army Com- 
mander, appointed when war commenced, was General Wille-Bis- 
marck, and he was in 1916 the military dictator of Switzerland. 

With such conditions, with no direct access to the sea, with the 
demand from Germany sending prices of food and supplies sky- 
high, with the loss of the tourist traffic and its great profits, with 
a large Army mobilized and growing friction between the racial 
elements, the country was in a difficult situation. Yet it is pro- 
bable that the old-time pride and independence of the people were 
not seriously under-mined by their complex strains of external 
sentiment. As Henri Martin, Consul-Genecal in Canada, said to 
the press at Montreal on Aug. 1 the anniversary of the founding 
of the Republic: "The country which has stood so many political 
storms, through six centuries, which has always been at the head 
of democratic reforms and institutions, does its utmost to keep 
up its neutrality.'' To his nation, also, M. Camille Decoppet, 
President of the Republic, issued this statement : * ' Surrounded by 
powerful nations engaged in the most terrible war the world has 
ever known, our fatherland lives in peace. Great by the respect 
Switzerland has earned, protected by the Army formed by its 
citizens, strong in the affection and the union of all her children, 
Switzerland watches jealously for her independence." At the 
close of the year the new President, M. Schulthess, issued an 
interview in which he said : 

I cannot conceive that any of the belligerents harbour the idea of passing 
through our country. It would not be to their advantage. In addition to the 
difficulties of terrain they would be confronted with the vigorous resistance 
of the Swiss Army and the whole people. My country knows only one form 
.of neutrality absolute neutrality. Let there be no mistake. In the presence 
of external danger, no matter from what side it comes, Switzerland will be 
united notwithstanding differences in race and language. 

Sweden was very largely pro-German in opinion but anxious, 
officially, to keep out of the War. A German propaganda, which 
early developed, had convinced many that England could have 
prevented the War but for selfish, mercenary reasons had deliber- 
ately allowed it to develop ; the people were naturally anti-Russian 
on account of Finland, and the fortification by Russia of the Aland 
Islands lying a little above Stockholm fanned the feeling for a 
time into a flame of resentment; the Activists or German party 
was insistent in urging that Sweden should join Germany in the 
War. In opening Parliament on Jan. 17 King Gustave made no 
reference to good relations with other Powers but used this signi- 
ficant phrase : ' ' Our Government earnestly hopes to be able always 
to maintain the neutrality which it decided to observe from the 
beginning of the War but, in order to maintain neutrality and the 
sovereignty of Sweden, increased forces on land and sea must be in 


readiness." The Premier, M. Hammarskjold, who had always 
been Neutralist in opinion as against the German or "Activist" 
party, followed in these words: "We repudiate the idea that our 
policy means we will not abandon neutrality under any conditions. 
It is our fervent desire to keep peace and it is our duty to work 
for this end with all our might, but we must also reckon with 
eventualities in which maintenance of peace, in spite of all our 
efforts, would no longer be profitable." 

A violent controversy prevailed at this time as to Britain's 
inspection of mails for contraband and Sweden had retaliated by 
holding up a mass of British mail for Russia. The United States 
was asked to co-operate in protest and action upon this subject. 
Great Britain offered to arbitrate the question of her right to 
pursue this policy as part of the blockade if Sweden would with- 
draw its embargo on Russian mails. Tart correspondence, verging 
on the hostile, followed without any direct settlement, though in 
June the Russian mails began to be forwarded again. In September 
France took a hand as to Sweden's treatment of submarines, under 
a decree issued on July 22nd and declared with the support of 
the other Allied Powers that "the position of Sweden in dis- 
tinguishing between submarines for war and those for commerce 
has an effect contrary to neutrality, since the Swedish naval forces 
would hesitate to attack a German submarine in Swedish waters, 
under the pretext that it might be a commercial submarine, whereas 
there would be no similar hesitation in dealing with a submarine 
of the Allies, because they have no commercial submarines. ' ' Other 
questions were referred to and the French Government concluded 
by declaring that Sweden's attitude was not one of "loyal and 
impartial" neutrality. In an interview given out on Oct. 4 the 
Premier denounced the British black-list action and alleged 
restrictions of trade but said nothing of German submarine policy. 

Norway was. in general, as friendly to Britain as neutrality 
would permit and keenly resented during 1916 the German des- 
truction of its shipping. Large orders for ships were placed in the 
United States and some in British Columbia but the losses of 
268,000 tons up to October, 1916, must have had a serious effect 
upon trade especially with Great Britain. On Oct. 13 the Nor- 
wegian Government issued a decree prohibiting belligerent sub- 
marines in Norwegian waters, except in cases of emergency, when 
they must remain on the surface and fly the national flag ; commer- 
cial submarines were to travel only on the surface, in daylight, 
and flying their colours. Germany protested vigorously while it 
continued a persistent warfare on Norwegian shipping. Herr 
Zimmerman, Foreign Secretary, announced at Berlin that "severe 
measures would be taken" and described Sweden's milder decree 
against submarines as being directed against all Powers and as not 
including commercial submarines. At this time Norway had be- 
come rich and prosperous through the War, though the distribu- 
tion of money was unequal and the prices of supplies very high. 
It had a small but effective Navy and could put 100,000 men in 


the field. Its losses in shipping totalled $27,000,000 in value, with 
149 lives destroyed. 

Denmark maintained its neutrality under difficulties. Britain 
controlled its sea trade routes and it was traditionally friendly to, 
and associated with, that country; Germany bullied it by diplom- 
acy and threats and the advantages to the latter of a hostile policy 
were obvious. Occupation of its territory would ensure supremacy 
in the Baltic against British submarines and would provide large 
forced supplies for the German larder. At the beginning of 1916 
Danish importations of rice, lard, pork, meats, etc., had increased 
far beyond home consumption, but as the year passed this con- 
dition was greatly changed by an improved British blockade. It 
lost a number of ships through German submarines but, as with 
all these countries, a part of its population waxed fat on high 
prices and exported produce to the Teutons. During the year 
arrangements were consummated for the sale of the Danish West 
India Islands of St. John, St. Thomas and Santa Cruz to the 
United States for the sum of $25,000,000. 

As with Sweden, Denmark and Norway, so with Holland it 
grew rich by trade with the Germans but poor in pride and public 
moneys by the loss of shipping from German under-sea craft. It 
had the additional complication of possessing a coast line invalu- 
able to Germany in its naval operations. The Government, also, 
had to provide aid for multitudes of Belgian refugees and thousands 
of interned soldiers. The sinking (Mar. 16) of the Steamer Tuban- 
tia, the finest of Dutch ships valued at $1,600,000 and carrying a 
valuable cargo by a submarine, and without notice, provoked a 
storm of indignation and official protests; at almost the same time 
(Mar. 18) the Palembang was sunk in the North Sea. Tension 
followed but nothing more even when other vessels were sunk. 
Preparations, of course, were maintained, an Army of 200,000 
were kept under constant training with unspecified reserves, the 
defensive water lines, barrier fortresses and heavy coast guns were 
ready for action while trenches were prepared on the eastern 
border, and munition factories, when not shipping shells to Nor- 
way and Sweden, were piling them up for emergencies. The 
Minister of Finance estimated that these and other conditions had 
cost $180,000,000 by Aug. 1, 1916. 

The acquisition of Holland and its much-desired Colonies had 
long been an object of German ambition and of the teachings of 
men like Treitschke ; its ruler had married a German Prince under 
the Kaiser's avowed patronage and against the wishes of perhaps 
the majority of her people and their daughter and only child would 
probably marry another German; the commercial and financial 
classes were said to be inclined toward Germany and a Teuton 
commercial league ; its people were determined not to give Ger- 
many cause for offence; its war- trade in 1916 steadily grew with 
the latter Power and decreased with Britain. The Orange or offi- 
cial blue-book of war despatches, issued in July, 1916, showed an 
equality of protests as between German submarine outrages and 
British blockade enforcement. Meanwhile, through the Agency of 


the Netherlands Overseas Trust, Great Britain practically had Hol- 
land under a system of rations anything needed for its own peo- 
ple but nothing for export except food. Of the latter Germany got 
much in exchange for coal and at tremendous prices. In Novem- 
ber the Holland section of the League of Neutral States issued an 
appeal to the United States on behalf of the Belgians whom Ger- 
many was deporting: "Every day numbers of fugitives, in spite 
of the deadly electric wire which the Germans have erected along 
the frontier, succeed in escaping to the Netherlands. From them 
we learn the painful details of the unutterable despair of the 
women and children who are left behind." Holland was thus 
practically guarding, by her neutrality, a vulnerable German 
frontier while, for a long time, and despite British care, providing 
much in supplies and food for Germany's use. 

Meanwhile South American countries had maintained their 
neutrality better than in 1915. Brazil was the country chiefly in- 
terested in the War because of its arrogant and aggressive German 
population in the States of Santa Catharina and Rio Grande do 
Sul, with their German clubs, German education, language, patriot- 
ism and active German Consuls ; the known designs of Germany in 
respect to the country and its aggressive treatment of Brazil in 
recent years ; the fact of a German Minister of Foreign Affairs, Dr. 
Lauro S. Miiller, being in office and representing Santa Catharina 
in Parliament. The latter, by the way, was a guest of the Toronto 
National Exhibition in September, 1916, and received many 
courtesies from that British city. During 1916, however, German 
arrogance provoked a reaction in Brazil outside of the two states 
mentioned and, despite German spies, distorted views from the 
seats of war, and immense circulation of Germanized literature, 
public opinion changed greatly. German organization continued, 
however, and in the spring of this year it was found that in three 
southern states German shooting societies had formed, practically, 
an Army of 100,000 men. The final result was enforced disarm- 
ament but the whole incident was significant. 


Jan. 1st. British liner Persia torpedoed in Eastern Mediterranean; many 
lives lost. British forces occupied Yaunde (Kamerun) in Africa. 

Jan. 2nd. Russians occupied several heights in the Bukowiua, and drov 
enemy back on the Strypa. 

Jan. 6th. Russian success on River Styr; advance towards Kovel. 

Jan. 7th. British relief expedition for Kut-el-Amara encountered Turk- 
ish forces ; heavy fighting on both banks of Tigris, Turks finally defeated. 

Jan. 9th. Evacuation of Gallipoli completed with one British casualty 
reported. British battleship King Edward VII mined; crew rescued. 

Jan. 10th. Fierce fighting in Champagne; French lost some ground. 
Austrians defeated Montenegrins and captured Mount Lovtchen. 

Jan. llth. French troops landed on Corfu and used the German Emperor '& 
property, the Achilleion, as a sanatorium for the Serbian Army. 

*NOTE. For 1914 and 1915 Chronologies of the War see similar Sections in The 
Canadian Annual Review of those years. For much of the data in this Chronology the 
author is indebted to the columns of the London Times, the N. Y. Tribune and United 
Empire, the interesting organ of the Royal Colonial Institute. 


Jan. 12th. Entente Allies blew up railway bridge at Demir-Hissar, cutting 
Turkish and Bulgarian communications. 

Jan. 13th. Austrians occupied Cettigne. Further fighting on Tigris; 
Turks defeated at Wadi. 

Jan. 14th. French siibmarine sank Austrian cruiser off Cattaro. 

Jan. 17th. Successful British attack on Givenchy. 

Jan. 18th. Turkish Army in Armenia routed by Eussians, who captured 

Jan. J9th. Allied War Council in London. 

Jan. 20th. King Nicholas and Eoyal Family of Montenegro left country 
en route to Lyons. 

Jan. 21st. British relief expedition attacked Turkish forces 23 miles 
east of Kut with heavy losses. Flight of Turks before Kussians to Erzeroum; 
forts bombarded by Eussian artillery. 

Jan. 23rd. Air-raids German, on Dover, three machines; French, on 
Metz, 24 machines; French, on Monastir, 32 machines. Senoussi camp at- 
tacked and tribesmen dispersed (Western Egypt). Austrian troops occupied 
Scutari (Albania). 

Jan. 24th. British force occupied German camp near Mbuyuni (East 

Jan. 25th. Vigorous German offensive in Artois and bombs dropped on 
Dunkirk. British aeroplanes attacked hostile aircraft. General Dobell re- 
ported Kamerun coast-line clear of enemy. 

Jan. 26th. Austrians captured San Giovanni di Medua (Albanian port). 

Jan. 27th. News received from Mesopotamia that enemy had retired 
about a mile from British entrenchments at Kut. 

Jan. 28th. Fierce fighting near Loos and Arras, in France, with German 
attacks repulsed, except near Givenchy, where some advanced French trenches 
were taken. New Eiissian offensive in the Caucasus; Turkish supplies and 
munitions captured. Allied troops occupy fortress of Kara Bururi, com- 
manding harbour of Salonika. 

Jan. 29th. German success at Frise, on the Somme. Zeppelin raid on 
Paris; 23 killed and 30 injured. 

Jan. 31st. Zeppelin raid on England; six counties invaded; 59 killed and 
101 injured. 

Feb. 1st. German air raid on Salonika; 10 killed. British liner Appam 
(believed lost), arrived at American port of Norfolk, Virginia, as German 

Feb. 3rd. British Admiralty announced destruction of a Zeppelin in 
North Sea. Parliament Buildings at Ottawa almost wholly destroyed by fire. 

Feb. 6th. Desperate fighting on the Dniester; Russians reported heavy 
enemy casualties. 

Feb. 7th. Fierce artillery battles on Western front; Lens again bom- 
barded by the Allies. British reconnoitring column from Nasiryeh (on the 
Euphrates) attacked on its return by Arab force; two days later punitive 
expedition destroyed four Arab villages. 

Feb. 9th. Germans shelled Belfort. Further Eussian successes on the 
Dniester. Hostile sea-planes over Kent; 3 casualties. General Smuts ap- 
pointed to command British and South African forces in East African 

Feb. 10th. Successful bombing raid by 18 British aeroplanes on enemy 
huts at Terhand. Eussians captured Uscieczko, and crossed to west bank of 
the Dniester, driving enemy before them. 

Feb. 12th. Austrian air raid on Italian coast. 

Feb. 13th. French captured trenches in Champagne. Bulgarians occupied 

Feb. 14th. Germans gained ground near Ypres. Bombs .dropped an 

Feb. 15th. Eaid on Strumnitza by 13 French aeroplanes. British Ad- 
miralty announced loss of cruiser Arethusa, mined off East coast. 

Feb. 16th. Eussians took Erzeroum, most important Turkish stronghold 
in Armenia; 13,000 prisoners, 323 guns captured. Conquest of Kamerun com- 
pleted; bulk of enemy forces escaped into Spanish territory. 

Feb. 17th. British contingent landed at Chios; German and Austrian 
Consuls at Athens arrested. 


Feb. 19th. Germans attacked British lines near Ypres. 

Feb. 20th. German seaplanes dropped bombs on Lowestoft and Walmer. 

Feb. 21st. Verdun Battle began. French motor-gun destroyed by a 

Feb. 22nd. Germans delivered continued fierce attacks on Verdun lines; 
enemy successes at two points. Eussian advance continued along Black Sea 

Feb. 23rd. -Verdun Battle continued with increasing violence; French 
evacuated Haumont. French air-raid on Metz. German raider Moewe cap- 
tured five British ships and one Belgian vessel. Portuguese seized German 
steamers lying in the Tagus. 

Feb. 24th. French lines north of Verdun partly withdrawn; violent 
artillery battle continued on front of 25 miles. Portuguese seized eight more 
German ships lying at St. Vincent. 

Feb. 25th. German attacks repulsed in Verdun district. French cap- 
tured salient in Champagne; heavy enemy casualties. Eussian success in 
Persia; two important passes carried and enemy pursued towards Kerman- 

Feb. 26th. Eussians captured Ashkala, 30 miles west of Erzeroum. 
British success in Western Egypt, enemy completely routed. French transport 
sunk in Mediterranean with great loss of life. 

Feb. 27th. Desperate fighting at Verdun; Germans carried part of 
Douaumont ridge but were finally driven off, except for small force which 
remained almost surrounded. Important Eussian success in Persia, Kerman- 
shah taken. British liner Maloja sunk off Dover; 150 lives lost. 

Feb. 28th. Eailway station at Eix taken and re-taken; finally in French 
hands. German success in Champagne; surprise attack carried the Navarin 
Farm. British captured Baraiii (Western Egypt). 

Mar. 1st. German seaplane raid on Southeast coast; machine wrecked 
and picked up by French. 

Mar. 2nd. British re-captured "International Trench" near Ypres. 
Fierce fighting continued round Douaumont, Fresnes, and Vaux. Eussians 
occupied Bitlis. 

Mar. 4th. Eussian force lauded at Atani under cover of fire from fleet; 
Turks defeated and pursued. Germans claimed return of Moewe to home port. 

Mar. 5th. Zeppelin raid on Northeast British coast; eight counties 
visited, 70 casualties. 

Mar. 6th. Germans captured Forges and made slight gains in Champagne. 

Mar. 7th. Germans took Fresnes and part of Hill 265. Eussians cap- 
tured Eizeh (Black Sea coast). Successful advance by British forces in East 

Mar. 8th. French re-captured part of Bois des Corbeaux; Germans driven 
back in Champagne. Metz again bombarded. 

Mar. 10th. Germany declared war on Portugal. British force in Mesopo- 
tamia obliged to fall back owing to lack of water. Successful British advance 
in East Africa; Chala and Taveta captured. 

Mar. llth. Surprise German attack near Eheims and some ground gained. 
Eussians occupied Kerind (Persia). Fighting in East Africa; Germans dis- 
lodged from Kitovo Hills, near Mt. Kilimanjaro. Turkish position on Tigris 

Mar. 13th. Great aerial activity on Western front; six German aero- 
planes brought down. British success in East Africa Moshi occupied. 

Mar. 14th. Fresh attacks on Verdun; enemy repulsed, except at two 
points. British force occupied Sollum without opposition; Egyptian Bedouins 

Mar. 15th. French re-captured ground near Verdun. Austria declared 
war on Portugal. 

Mar. 16th. Fierce struggle round Vaux and the Mort Homme positions; 
German attacks repulsed with heavy losses. Eesignation of Admiral von 
Tirpitz. Dutch liner Tubantia torpedoed off Dutch coast. Eussians occupy 
Mamakhatun, 60 miles west of Erzeroum. 

Mar. 18th. Dutch linner Palembang torpedoed in the North Sea. Prince 
of Wales arrived in Egypt to be staff captain on the staff of the British Com- 
mander-in-Chief after long service in France. 


Mar. 19th. Four German seaplanes over East Kent with bombs dropped 
at Dover, Deal, and Bamsgate; 9 people killed, 31 injured. Eussian success 
on the Dniester. 

Mar. 20th. Allied aeroplanes, 65 in all, bombarded Zeebrugge, causing 
considerable damage. British destroyers chased three German destroyers into 
Zeebrugge, seriously damaging one. Eussians entered Ispahan. 

Mar. 21st. German attack on Verdun renewed on the West and the 
wood of Avocourt captured. 

Mar. 22nd. Area of fighting on Eussian front extended. Eussians 
assumed offensive. 

Mar. 23rd. Atlantic liner Minneapolis torpedoed; some 18 lives lost. 

Mar. 24th. Channel steamer Sussex torpedoed and about 50 lives lost. 

Mar. 25th. British seaplanes raided German airship-sheds in Schleswig- 
Holstein, east of Island of Sylt; 3 machines reported missing. German raider 
Greif sunk by gun-fire, British armed merchant-cruiser Alcantara torpedoed. 

Mar. 26th. British air-raid on Turkish advanced base at Birel-Hassana 

Mar. 27th. British advance at St. Eloi, France; two lines of enemy 
trenches captured on front of 600 yards. German air-raid on Salonika; two 
machines shot down. 

Mar. 29th. Fierce fighting around Verdun; French regain possession of 
Avocourt redoubt, but forced to evacuate position near Malancourt. 

Mar. 31st. French evacuated Malancourt and Vaux. Zeppelin raid on 
Eastern British Counties and northeast coast; one Zeppelin brought down and 
crew taken prisoners. 

Apr. 1st. Zeppelin raid on British northeast coast. 

Apr. 2nd. Zeppelin raid on Scotland and northern and southern counties 
of England. 

Apr. 5th. Further British advance towards Kut; Turkish positions at 
Umm-el-Hannah and Felahieh carried. Another Zeppelin raid on northeast 

Apr. 6th. Germans captured village of Haucourt. Slight German gains 
at St. Eloi. A German force surrendered in East Africa. 

Apr. 8th. German bombs dropped on Eussian aerodrome at Oesel (Gulf 
of Biga). 

Apr. 9th. Fierce fighting in Verdun region; Germans captured advanced 
trench on the Mort Homme. British force delivered unsuccessful attack on 
Turkish position at Sanna-i-Yat (Mesopotamia). 

Apr. 10th. British captured mine-crater at St. Eloi (previously relin- 
quished), also some German trenches. 

Apr. 12th. Great artillery activity between Douaumont and Vaux. 
British advanced on Tigris; enemy driven back over a distance varying from 
I l /2 to 3 miles. Beported occupation of Kionga (German East Africa) by 
Portuguese troops. 

Apr. 14th. British naval air-raid on Constantinople and Adrianople. 

Apr. 15th. French captured trenches and prisoners near Douaumont. 

Apr. 16th. Eussian advance on Trebizond continued; passage of the 
Kara Dere forced. 

Apr. 17th. Fierce fighting on the Meuse; Germans repulsed with heavy 
losses, except at one point. Turkish force attacked British line on right bank 
of Tigris, but lose 3,000 killed. 

Apr. 18th. Trebizond taken by Eussians. 

Apr. 19th. British line attacked near Ypres; everywhere driven back 
except at St. Eloi. Death of Field-Marshal von der Goltz at Turkish head- 

Apr. 20th. Attempt to land arms on west coast of Ireland from German 
ship. Sir Eoger Casement taken prisoner. 

Apr. 23rd. Fresh British attack on Sanna-i-Yat position repulsed. Turks 
attacked Katia and Duweidar posts east of Suez Canal. Katia garrison 

Apr. 24th. Eebel rising in Ireland, Dublin Post Office seized; troops 
called out. British attempt to send supply-ship to Kut failed and ship ran 
aground. Turkish camp near Katia completely destroyed by British bombs 


and machine-gun fire. Report published of further British successes in East 
Africa; Kondoa Irangi occupied on Apr. 19, enemy retreating. 

Apr. 25th. Naval battle oft' Lowestof t and Yarmouth ; ; damage slight 
and German squadron driven off and chased. Zeppelin raid on East coast, 
over 100 bombs dropped. Martial law proclaimed in city and county of 

Apr. 26th. British troops occupied Liberty Hall and Stephen's Green, 

Apr. 27th. Further rebel outbreaks in Ireland; martial law proclaimed 
over whole country; street fighting continued in Dublin. Germans delivered 
fierce attacks against British lines in France; enemy repulsed at all points. 
British battle-ship Russell mined in Mediterranean; about 124 of the crew 

Apr. 28th. Eussian reverse in Baltic Provinces; Germans recaptured 
trenches near Vilna. 

Apr. 29th. Fall of Kut; British force surrendered unconditionally. 
British success at Bushire (Persian Gulf) ; hostile force attacked and dis- 

Apr. 30th. Irish rebels surrendering in Dublin and over 700 prisoners 
taken. French captured enemy trenches near Mort Homme and Cumieres. 
Seven German machines accounted for by French. Hostilities resumed on 
Salonika frontier. 

May 1st. Dublin reported safe; all rebels in the city surrendered. Two 
British war vessels mined in Mediterranean. French gains near Douaumont; 
100 prisoners taken. 

May 2nd. Air raid on Yorkshire and Scotland. French troops occupied 
Fiorina (Macedonia). 

May 3rd. Three Irish rebel leaders tried and shot; trials proceeding. 
Further French gains at Mort Homme; many prisoners captured. Zeppelin 
wrecked on Norwegian coast. Air raid on Deal. Exchange of wounded 
British and Turkish prisoners commenced in Mesopotamia. 

May 5th. Two Zeppelins destroyed by British warships, one off Schles- 
wig coast (May 4), and one at Salonika. Slight German gain in region of 

May 7th. Germans delivered furious attacks against French lines near 
Verdun with success at two points. Russians defeat Turks on Persian fron- 

May 8th. Successful French counter-attacks near Verdun; several 
trenches recaptured. 

May 10th. Russians occupied Kasr-i-Shirin, on the road to Bagdad. 

May llth. German success near Vermelles, France; about 500 yards of 
British lines captured. Sharp fighting in East Africa; Germans deliver last 
of a series of fierce attacks at Kondoa Irangi which were all repulsed with 
heavy losses. 

May 14th. Turks assumed the offensive near Erzerpum; Russians forced 
to retreat. 

May 15th. Successful Russian advance to Rowandiz in the direction of 

May 16th. British success east of Suez Canal; Australian and New 
Zealand troops pursued enemy, and captured considerable war material. 

May 18th. Violent artillery actions on Western front; French successes 
at two points. Three German ships sunk in Baltic by British and Russian war 
vessels. Heavy Austrian attacks in the Trentino. 

May 19th. Small Russian cavalry force joined British Mesopotamian 
Expedition; General Gorringe captured Dujailar Redoubt, near Kut. 

May 20th. Vimy Ridge captured by Germans on the 18th, recaptured by 

May 22nd. Vimy Ridge again lost. French re-enter Douaumont Fort. 

May 23rd. French forced to evacuate Douaumont and Cumieres; Rus- 
sians occupied Sirdisht (Persia). British force occupied El Fasher (capital 
of Darfur, Soudan) ; Sultan's forces completely routed. 

May 25th. British advance in East Africa continued and Neu Langen- 
berg occupied. 


May 26th. German-Bulgarian force invaded Greece; no resistance 

May 27th. French regained lost ground near Cumieres. 

May 29th. Heavy German bombardment on British front in France; 
Bulgarians bombarded French advanced lines on the Vardar (Greece). 
Italians evacuated Asiago. 

May 31st. Great naval battle off coast of Jutland; heavy losses in ships 
and men on both sides; Germans driven into port. Australian and New 
Zealand troops raided Turkish camp at Bir Salmana. 

June 1st. Austrian advance into Italy continued. Turks took the 
offensive against Eussians in the Caucasus. 

June 2nd. British lines heavily attacked and pierced near Ypres. Slight 
German advance near Verdun; Vaux Fort threatened. 

June 3rd. Canadian counter attacks near Ypres; much lost ground re- 
gained. Allied troops occupied Government Bureaux at Salonika, and pro- 
claimed state of siege throughout the territory occupied by them. Austrian 
advance in the Monte Cengio region. 

June 4th. Great Eussian offensive began on a front extending from 
the Pripet Eiver to the Eoumanian frontier; large captures of prisoners and 
guns. Canadians compelled to fall back near Ypres; heavy casualties. 

June 5th. British cruiser Hampshire sunk off the Orkneys ; Lord Kitchener 
and Staff drowned. 

June 6th. Battle of Ypres extended; heavy fighting on front of some 
3 miles. Eussians occupied Lutsk. Bulgarian forces concentrated on Greek 
frontier. Allies placed restrictions, amounting to a pacific blockade, on Greek 

June 7th. French compelled to evacuate Vaux Fort. Sharp encounter 
between French and Bulgarian troops on Greek frontier; enemy driven back. 

June 8th. Naval skirmish off Zeebrugge; German destroyers chased into 

June 9th. British forces in East Africa occupied Mombo. 

June llth. Eussian advance continued and Austrian line pierced in 
three places; large capture of prisoners. 

June 13th. British force in East Africa occupied Wilhemstal. Italian 
success in the Lagarina Valley; Austrian line captured. Eussians sunk German 
auxiliary cruiser and two torpedo-boats in the Baltic. Canadians recovered 
lost positions at Ypres. 

June 14th. Economic Conference of Allies opened in Paris. 

June 15th. Germans launched fresh attacks against Verdun; repulsed 
with heavy losses. In East Africa, important station of Korogwe captured; 
Island of Ukerewe (Lake Victoria) occupied. 

June 17th. Eussians captured Czernowitz. 

June 19th. As a result of fortnight's fighting Eussians took over 170,000 
prisoners. Air raid on El Arish. 

June 21st. News received of proclamation by the Grand Shereef of 
Mecca, of Arab independence of Turkey. Mecca, Jeddah and Taif captured 
by Arabs; Medina besieged. Allied Powers presented ultimatum to Greece, 
insisting upon demobilization, formation of new Cabinet, dissolution of 
Chamber, new elections and dismissal of certain police officials. 

June 22nd. Germans captured British trenches near Givenchy; French 
recovered ground between Fumin and Chenois Woods. 

June 23rd. German advance at Verdun; several positions captured. 

June 24th. Eussian success in the Bukowina; Kimpolung and Kuty cap- 
tured. German defeat in East Africa. 

June 25th. Great Italian advance; Asiago, Priafora, and Cengio Moun- 
tains retaken. 

June 26th. British activity on Western front; German lines penetrated 
in ten places. French gained ground near Thiaumont. Italians re-occupied 
Arsiero and Posina. 

June 28th. Eussians defeated Austrians east of Kolomea; great number 
of prisoners taken. 

June 29th. Eoger Casement found guilty of high treason and sentenced 
to death. 


June 30th. Russians captured Kolomea. 

July 1st. Beginning of combined British and French offensive on West- 
ern front with fierce fighting on the Somme; British captured German 
trenches on seven-mile front, also Montauban, Mametz, and Fricourt; over 
8,000 prisoners taken by French and British. 

July 3rd. Allied advance continued; British captured La Boisselle; 
French within four miles of Peronne. Successful Russian attacks at two 
points against Von Hindenburg's forces; heavy fighting in Lutsk salient. 

July 5th. Further Allied progress between the Ancre and the Somme; 
all gains consolidated. Struggle for Verdun continued. Russians cut main 
railway-line from Hungary to the Austrian centre. 

July 7th. Second stage of British advance; more enemy positions car- 
ried; desperate struggle for Contalmaison. Russian successes in Lutsk 
salient. British force in East Africa reached the coast; Tanga occupied. 

July 8th. French took Hardecourt; British entered Trones Wood; many 
prisoners and much war material captured. 

July 9th. German submarine Deutschland, carrying mails and cargo, 
arrived in America. 

July 10th. British captured Contalmaison for the second time. 

July llth. Sir Douglas Haig reported complete capture of German 
first system of defence on front of 14,000 yards. Enemy regained some 
ground in Mametz and Trones Woods. German stand on the Stokhod; Rus- 
sian advance checked. German submarine bombarded Durham coast. 

July 14th. Allied advance in West continued; German second line of 
defence attacked on front of four miles; all British gains held; Trones Wood 
and two villages captured. 

July 15th. Russians occupied Bailburt, on Er/eroum-Trebizond road. 
In East Africa, British force captured Mwanza principal German port on 
Lake Victoria-Nyanza. 

July 16th. British advanced almost to the crest of Albert plateau in 
France; third system of German defences attacked. 

July 17th. More British successes in France; Ovillers captured. Rus- 
sian victory in Lutsk district. 

July 18th. Heavy German counter-attacks on Western front; enemy 
gained some ground. Bombs dropped on Reval (Russian port). 

July 19th. British regained most of the lost ground. 

July 20th. British Government appointed Commissioners to enquire into 
the Dardanelles operations and the Mesopotamian campaign. 

July 21st. Further Russian success on the Rivers Liga and Styr. 

July 22nd. British continued attacks along the whole front from 
Pozieres to Guillemont. Resignation of M. Sazonoff. 

July 23rd. Naval action near mouth of the Scheldt; German destroyers 
put to flight. 

July 24th. French success near Thiaumont; continued advance near 
Fleury. British force in East Africa gained complete possession of the 
Usambara Railway. 

July 25th. Heavy German counter-attacks repulsed on Western front; 
French gained ground near Estrees. Russians occupied Erzinjan. 

July 26th. British captured Pozieres. Important Russian victory in 
Lutsk salient, near Brody. 

July 27th. British penetrated into Delville Wood; desperate fighting 
continued. Grand Shereef of Mecca captured Yamba (port of Medina) from 
the Turks. Captain Fryatt shot at Bruges. 

July 28th. British captured whole of Delville Wood and entered 
Longueval. Russians occupied Brody. Patrol engagements in Egypt. 

July 29th. Further important Russian successes; enemy's line broken on 
front of 13 miles; passage of the Stokhod forced. British force in East Africa 
occupied Dodoma (German Central Railway). 

July 30th. Combined British and French advance in the West. Arrival 
of Russian troops at Salonika. 

Aug. 1st. German aerodrome and ammunition-sheds near Ghent attacked 
by British Naval air-squadron; about two tons of bombs dropped and con- 
siderable damage done. Russian success in Galicia; Koropiec River crossed. 


Aug. 2nd. French gains on the Somme and at Verdun; Fleury re- cap- 

Aug. 3rd. Roger Casement hanged. Belgian troops in East Africa 
occupied Ujiji German port on Lake Tanganyika and terminus of Central 

Aug. 4th. Turkish army (about 14,000 strong) attacked British posi- 
tions east of Suez Canal; British counter-attack successful; Turkish force com- 
pletely routed and pursued with large captures of prisoners and guns. 

Aug. 5th. British gains in region of Thiepval and north of Pozieres. 

Aug. 6th. Development of great Italian offensive; substantial gains on 
Isonzo front. 

Aug. 8th. Portugal agreed to extend her co-operation with the Allies 
to Europe. 

Aug. 9th. Italians occupied Gorizia. French guns at Salonika bombarded 
Doiran. Turkish counter-attack beaten back in the Sinai Peninsula. Zep- 
pelin raid on eastern and northeastern British coasts. 

Aug. 10th. Russians occupied Stanislau; steady advance on all fronts. 
French occupied Doiran station in Macedonia. 

Aug. llth. Numerous British air-raids on Western front; airship-sheds 
at Brussels and Namur and several railway stations bombarded. Fresh Ger- 
man defeats in East Africa. Italian troops landed at Salonika. 

Aug. 12th. Allies advanced in the West; many prisoners taken. German 
air-raid on Dover. 

Aug. 13th. Centre of Austro-German lines in Russia broken; Von Both- 
mer's forces retreating. 

Aug. 15th. H. M. the King returned from a week's visit to British Army 
in France. 

Aug. 16th. French advanced on the Somme; substantial gains. 

Aug. 17th. French captured Fleury (Verdun). Bulgarians entered 
Fiorina on Greek territory. 

Aug. 18th. Further British and French advance, and Thiepval Ridge 
captured. Bulgarians advanced into Greek territory towards Kavalla. 

Aug. 19th. German High Seas Fleet came out into North Sea, but 
avoided an engagement and returned to port. H.M.S. Nottingham and H.M.S. 
Falmouth torpedoed. 

Aug. 20th. General Sir Charles Monro succeeded General Sir Beauchamp 
Duff as Commander-in-Chief in India. 

Aug. 21st. Heavy counter-attacks repulsed on Western front. British 
forces in East Africa occupied Kidete; steady advance on Dar-es-Salaam. 

Aug. 22nd. Further headway in the West. Turks retreated in the Cau- 
casus. Italian successes in the Dolomites. British forces occupied Kilossa in 
East Africa. 

Aug. 23rd. Russians re-captured Mush (Caucasus), and defeated Turks 
near Turco-Persian frontier. 

Aug. 24th. French captured Maurepas, and advanced beyond it; British 
advanced on Thiepval, many prisoners taken. German submarine-liner Deutsch- 
land returned to Germany. 

Aug. 25th. Zeppelin raid on E. and S.-E. coasts and outskirts of Lon- 
don; 29 casualties. Bulgarians entered Kavalla. 

Aug. 26th. Five British aeroplanes lost in heavy storm at the front. 
Serbian progress in the Ostrovo district. 

Aug. 27th. Italy declared war on Germany. Roumania declared war on 

Aug. 28th. Germany declared war on Roumania. Austrians bombarded 
Roumanian towns on the Danube. 

Aug. 29th. Roumanians forced Transylvanian passes; Austrians evacu- 
ated three important towns. Marshal Von Hindenburg appointed Chief of 
the German General Staff. 

Aug. 30th. Turkey declared war on Roumania. Slight German gains 
on British front in France. Russian advance in the Carpathians. German 
forces in East Africa retreated east and west of the Uluguru Mountains. 

Sept. 1st. Fierce German attacks on Western and Russian fronts. Allied 
Fleet anchored off Athens; pro- Ally rising in Salonika. Bulgaria declared 
war on Roumania. 


Sept. 2nd. Combined Bussian and Koumanian advance; Austrian* re- 
tired across Kiver Cerna. Allied Governments made important demands on 
Greece; three German vessels seized off Athens at the Piraeus. 

Sept. 3rd. Baid on Eastern counties and outskirts of London by 13 
enemy airships; one Zeppelin destroyed and another damaged; British "cap- 
ture Guillemont. 

Sept. 4th. French successes on the Somme. Occupation of Dar-es- 
Salaam capital of German East Africa. 

Sept. 6th. French success at Verdun; Germans occupied Tutrakan. 

Sept. 7th. Bussian advance on the Dniester; Halicz bombarded. Bou- 
manian reverse in the Dobrudja. 

Sept. 9th. British captured Ginchy: further French advance at Verdun. 

Sept. 10th. British force at Salonika crossed the Struma; enemy driven 

Sept. llth. Bussian and Boumanian Armies joined forces in the Car- 
pathians: Mount Kapul and other important heights captured. Belgian force 
occupied Tabora in German East Africa. 

Sept. 13th. Brilliant French advance; German third line pierced between 
Combles and Peronne. 

Sept. 14th. British advance on the Salonika front. Successful Bussian 
air-raid on German hydroplane station (Gulf of Biga), several machines 

Sept. loth. Important Allied advance in the West; British occupied 
High Wood, most of Bouleaux Wood, and several villages. Canadian troops 
captured Courcelette. Italian advance on the Carso, many prisoners taken. 
Serbian advance on Monastir; enemy driven back ten miles. 

Sept. 16th. British gained more ground in the West; over 4,000 prisoners 
taken and Mouquet Farm captured. Bussian success north of Halicz. 

Sept. 17th. Greek Army Corps in the territory occupied by Bulgarians 
"kidnapped 1 ' and interned in Germany. 

Sept. 18th. French force in Macedonia occupied Fiorina; Bulgarians 

trongly fortified German work between Bouleaux Wood and Ginchy. 
first in action. French captured Deniecourt. 

Sept. 19th, Boumanian advance checked near Vulcan Pass Carpathians. 

Sept. 23rd-24th. Air raid by 12 Genran airships over London and East- 
ern Counties. Two airships destroyed. Two French airmen dropped bombs 
on Essen. 

Sept. 25th. Allied offensive resumed on the Somme; British captured 
Morval and Lesboeufs; Combles isolated. Zeppelin raid on X. Midlands and 
English coasts. M. Venizelos headed a Nationalist movement in Greece. 

Sept. 26th. Important successes on Western front; Thiepval and Combles 

Sept. 27th. British and French advance continued in France; all gains 
consolidated. German airship bases raided by British naval aeroplanes. 
Bussian advance checked in the Lutsk salient. 

Sept. 29th. British success near Le Sars. Pro-ally proclamation issued 
in Crete. 

Oct. 1st. Further British advance on the Somme. Air-raid on E. coast 
and X. London: one Zeppelin brought down. Bussian advance S.-W. of Brody 
and X.-E. of Halicz; many prisoners taken. German success against the 
Boumanians; Boter Turm Pass seized. 

Oct. 2nd. Boumanians crossed the Danube and invaded Bulgaria. Stub- 
born fighting on the Bussian front: some Bussian progress in the Lutsk 

Oct. 3rd. Bulgarians compelled to retreat before combined French, Bus- 
sian and Serbian forces: Allies ten miles from Monastir. 

Oct. 4th. British captured Eaucourt 1 ? Abbaye ; Trench line advanced east 
of Combles. Boumanian success in Transylvania. British troops crossed the 
Struma; Bulgarian occupation of Eastern Macedonia threatened. Besigna- 
tion of the Greek Cabinet. 

Oct. oth. Boumanians compelled to withdraw across the Danube. 

7 - i ; ' 


Oct. 7th. British captured Le Sars; combined British and French ad- 
vance further south. Germans reinforced in Transylvania; Eoumanians eva- 
cuated Brasso. 

Oct. 9th. Allied advance in Macedonia continued. German submarines 
active in American waters; 8 vessels torpedoed. 

Oct. 10th. Brilliant French advance south of the Somme; heavy enemy 
losses. Eoumanian retreat in Transylvania continued. 

Oct. llth. Important Italian successes on three fronts the Carso, in the 
Trentino, and in the Julian Alps large captures of prisoners. Allied Gov- 
ernments demanded, and obtained under protest, complete surrender of Greek 

Oct. 13th. Allied air-squadron bombarded German Mauser works at 
Oberndorf ; six enemy aeroplanes brought down. Eoumanians pushed back to 
Transylvanian frontier. 

Oct. 14th. Allies pushed forward on the Thiepval plateau and between 
Barleux and Chaulines. Eussian success on Lutsk salient. 

Oct. 17th. Allied troops landed at Athens; all important posts put under 
military control. Austro-German force captured the Gyimes Pass; Eoumanians 
retired to neighbourhood of Agas. 

Oct. 18th. French captured Sailly-Saillisel. 

Oct. 19th. Eoumanian success at Gyimes. Serbians occupied Brod. New 
German offensive launched against Eoumanians in the Dobrudja. 

Oct. 20th. News received of successful operations in East Africa; enemy 
forces confined in the Eufiji valley; British in command of all ports and rail- 
ways. Eoumanian withdrawal in Torzburg and Buzan Passes. 

Oct. 21st. British gained ground between Schwaben Eedoubt and Le 
Sars. Eusso-Eoumanian forces in retreat in Dobrudja, and fell back in 
Predeal Pass. Count Sturgkh, Austrian Premier, murdered. 

Oct. 22nd. Fall of Constanza (Eoumania) to Germans. German sea- 
plane over Sheerness is destroyed by British seaplane. 

Oct. 23rd. British advanced east of Guedecourt and Lesboeufs; 1,000 
yards of trench captured. Predeal captured. 

Oct. 24th. French victory at Verdun; German line pierced a depth of two 
miles over five-mile front; 3,500 prisoners taken. Austro-German forces cap- 
tured Vulcan Pass Carpathians. 

Oct. 25th. Czernavoda captured by Von Mackensen's force. Bridge over 
Danube cut by Eoumanians. 

Oct. 26th. German naval raid in the English Channel. British trans- 
port service attacked by 10 destroyers; 2 German destroyers disabled and 
the rest driven off. 

Oct. 27th. French closing in on Vaux Fort. Eoumanian retreat in the 
Dobrudja continued. 

Oct. 29th. British gained ground near Lesboeufs. Eoumanian success 
in the Transylvanian Passes. 

Oct. 30th. French advance towards Sailly-Saillisel. German success south 
of the Somme; French line pierced. In E. Africa Germans defeated east of 

Oct. 31st. Fierce fighting in Galicia; Eussians forced back at one point. 

Nov. 1st. Allied advance on the Somme; ground gained near St. Pierre 
Vaast Wood. Germans evacuated Vaux Fort. Eoumanians continued to 
pursue enemy in Vulcan Pass. British force in Macedonia captured three 
villages on the Struma front. Italian successes; enemy driven from heights 
east of Gorizia; further advance on the Carso plateau, and over 4,700 prison- 
ers taken. Successful Italian naval air-raid on Austrian base at Pola. 

Nov. 3rd. Italian gains extended on the Carso plateau. 

Nov. 5th. Further Allied advance on the Somme; British captured high 
ground near the Butte de Warlencourt; French occupied Damloup. Two Ger- 
man battleships torpedoed in North Sea. 

Nov. 6th. Fierce German counter-attacks on the Somme; British forced 
to relinquish ground in region of Butte de Warlencourt. British liner Arabia 
torpedoed in Mediterranean. British conquest of Darfur, Africa, com- 

Nov. 7th. French advance towards Chaulnes; two villages captured and 
over 500 prisoners. Eussian success in the Carpathians. 




Dec. 4th. Eussian offensive continued north of Koumanian frontier. 
Ministerial crisis is Great Britain; Prime Minister advised King to consent to 
a reconstruction of the Cabinet. 

Dec. 5th. Boumanians' retreat continued; the Serbians advanced north- 
east of Monastir and heights north of Grunishta earned. Eesignation of Mr. 
Lloyd George from the British Cabinet; Mr. Asquith handed in resignation of 

Dec. 6th. German advance in Eoumania threatened the oil districts 
around Ploesti. 

Dec. 7th. Bucharest taken by the enemy; Germans claimed 6,000 prison- 
ers. German attack against French lines at Verdun gained a footing. Eus- 
sians lost ground in the Jablonica Pass. Mr. Lloyd George invited to form a 
British Cabinet, Mr. Bonar Law having informed the King of his inability 
to do so. 

Dec. 8th. Eoumanians still retreating; Germans claimed to have taken 
10,000 prisoners. British liner Caledonia sunk. 

Dec. llth. British "War Cabinet" and new Government completed. 
Eussian success on the Carpathian front. 

Dec. 12th. Germans began war levies on Boumaman towns. French sur- 
prise attack near Bheims. Bussian advance in the region^ of Kirlibaba. Allied 
Note to Greece presented. 

Dec. 13th. Special meeting of Eeichstag. Germany and her Allies pro- 
pose peace negotiations. British resumed the offensive in Mesopotamia; Shat- 
tel-Hai reached. 

Dec. 15th. Eesignation of Austrian Cabinet. German advance from the 
Danube reached the Jablomitza. 

Dec. 16th. French success at Verdun; enemy's front broken and several 
villages and over 7,500 prisoners taken. British advanced towards Kut. Bou- 
manians evacuated Bu?eau and retired from the Jablomitza line. 

Dec. 19th. French capture at Verdun totalled 11,387 prisoners with 115 
guns. Germans advanced towards Braila in Boumania. Eussian retreat in 
the Dobrudja. Warrant issued by Greek Government for arrest of M. Veni 

Dec. 20th. Bussians checked enemy advance on Braila. 

Dec. 21st. President Wilson addressed Notes to the belligerents suggest- 
ing a statement of the terms on which they were prepared to make peace. 
British offensive in Sinai; El Arish captured. 

Dec. 23rd. Turkish force routed at Maghdaba, S.E. of El Arish; 1,350 

Dec. 24th. Allied retreat in Boumania continued. Enemy took Tulcea 
and attacked Machin on the Danube opposite Braila. 

Dec. 25th. Invitation sent to Dominion Premiers and the Government 
of India to attend "Special War Conference of the Empire." German reply 
to American Peace Note, repeating proposal for conference of belligerents. 

Dec. 26th. Further retreat of Allies in Boumania. Bimnic-Sarat captured 
by enemy. Announcement made that British had taken over a larger portion 
of the Allied line in France. 

Dec. 27th. Betreat of Bussians on the Moldavian frontier. Chikaldir 
Bridge, east of Adana (Asia Minor), destroyed by British aviators. French 
battleship Gaulois sunk by submarine in Mediterranean. 

Dec. 28th. Germans claim to have taken 10,000 prisoners in Bimnic- 

Dec. 29th. Enemy's new offensive on Moldavian border. Allies repulsed 
German attack northwest of Verdun. 

Dec. 30th. Allies' reply to German peace proposals communicated to the 
United States Government. 

Dec. 31st. Complete failure of German attacks on French posts in 
Champagne. New Allied Note presented to Greece, demanding reparation and 
guarantees in connection with the outrages of Dec. 1 and 2. 


Great Britain: year ^ ^6 World-war saw Great Britain in 

war Policy, ' a position of naval and military power, industrial 
and General and financial strength, and national unity which 
Position in would have seemed inconceivable a few years before. 
It was no longer the England which Europe and the 
United States had once thought they knew the England of un- 
patriotic politics and supposedly decadent conditions, of shrieking 
suffragettes and Pacifist weaklings, of selfish capitalists and ag- 
gressive labourites. It was a United Kingdom of united peoples and 
interests ; a country of cool action and steady determination, of 
almost universal self-sacrifice and devotion to the one great object 
of freeing the world from an incubus of military terror and un- 
scrupulous power. 

In a higher sense the public mind and outlook had been broad- 
ened, chastened, subdued; the heart of Britain, to a remarkable 
degree, had been spiritualized by suffering, self-restraint and sacri- 
fice. In this great struggle Britain claimed, and believed herself 
to stand for, humanity in war, for liberty in peace, for the integ- 
rity of treaties, for the right of small nations to live, for the free 
self-government of dependencies, for a defensive Navy which should 
guard the real freedom of the seas. But her people and leaders 
had never advertised their virtues or the faith that was in them, 
and they too often did advertise their national vices, differences and 
deficiencies. Hence the early doubts abroad as to Britain's place 
in the struggle. Gradually it had permeated the mind of Europe, 
slowly it reached the Teuton intellect and conviction, that Britain 
was to be the deciding factor in the mighty conflict as she had 
been in the days of Napoleon, that without her money, Navy and, 
finally, Army, Europe would have lain prostrate at the feet of a 
new Conqueror and national liberty of life been relegated to the 
world's byways and corners. 

The tremendous efforts of the country, the immense organiza- 
tion of interests, the concentration of countless energies which 
marked these years of war and came to a head in 1916, were not 
guided, encouraged, controlled by political weaklings. The men 
who stood at the head of affairs were in the main big men intel- 
lectually, as statesmen, and as leaders. In a tossing, turbulent 
democracy, such as Britain possessed, there was certain to be in 
such a crisis a period of political controversy, of heated public 
discussions, of party and class antagonisms. By 1916 that period 
was passing away and had been replaced, in a degree greater than 
at first was understood, by a steeled determination that the War 
was the first and great matter to be settled and that all others were 



Mr. Asquith, as Prime Minister, had brought the nation through 
this time of crisis, through bitter political and economic and social 
controversies, through days of doubt and disaster. Lord Kitchener 
and David Lloyd George had been towers of strength to him, and 
to the people, but it was a period when conciliation, calmness, 
caution, common sense, were needed, when the qualities possessed 
by the Premier filled a place that the grim determination of 
Kitchener, the dignified diplomacy of Grey, the versatile activities 
of Lloyd George, the impetuous brilliance of Churchill, the cold 
energy of Derby, could not have occupied. Some of his colleagues 
made mistakes, as with Mr. Churchill at the Dardanelles or Mr. 
Birrell at Dublin, while party crises, Labour troubles, military 
difficulties, diplomatic tangles, munition problems, came and went. 
But the cool, adroit, patient mind of the Premier held the scales 
between men and parties, adjusted difficulties, smoothed over the 
rough places of a terrible time, worked with his colleagues and 
obviously held the active unity of the nation as the supreme object 
of his policy as the basis upon which victory in the War must 

The first crisis which Mr. Asquith had to meet in this year 
was the struggle over Conscription. Organized labour and the 
Irish situation were the chief obstacles in the way. The first was 
met by the skill and popularity of Mr. Lloyd George, the second 
by omitting that section of the United Kingdom from the Military 
Service Bill, the whole situation was eased greatly by the public 
confidence in Lord Kitchener's attitude and Mr. Asquith 's tactful 
qualities. The issue was a vital one. Lord Derby, Director-Gen- 
eral of Recruiting, had reported the situation at the close of 1915 
as follows: 

Single Married 

Available men of military age 2.1 79,231 2,832,210 

Of whom were starred 690,138 915,491 

Number of men enlisted direct since opening of 

Derby scheme 103,000 112,431 

Attested under group system 840,000 1,344,979 

Rejected 207,000 221,853 

Total 1.150,000 1,679,268 

Number of men still available 1, 029,231 1,152,947 

Of whom were unstarred 651,160 

Men were needed everywhere and the British Empire, as M. 
Hanotaux, the French statesman, put it at this time, was menaced 
at many points of its far-flung borders: "The British Government 
knows what it is facing ; it knows that defeat would mean the fall 
of the British Empire and the loss of British liberties; it knows 
that it is engaged in a struggle to the death and that to finish its 
adversary it is not sufficient to half conquer him it is necessary 
to crush him utterly. To obtain this absolute victory, what is 
necessary? The mastery of the sea, munitions, numbers." On 
Jan. 5th Mr. Asquith presented his Military Service Bill to a crowd- 
ed House and prefaced his speech by congratulating Lord Derby 
and the country upon the fact .that during the former's campaign 
nearly 3,000,000 men had voluntarily come forward to serve their 


)untry and by expressing the belief that no case had been made 
out for general compulsion. But ' ' if, after due inquiry it is found 
that there are single men of military age who have no ground 
whatever for exemption or excuse, they should be deemed to have 
done what every one agrees it is their duty to the State in times 
like these to do, and be treated as though they had attested for 
enlistment. That is the course which we propose to adopt in this 
Bill. ... It applies to all male British subjects who on Aug. 
15, 1915, had attained 18 years and who had not attained 41 years, 
and who at that date were unmarried or widowers without children 
dependent upon them. ' ' There were various exceptions and exemp- 
tions and Tribunals in each registration district to deal with them. 

Mr. Asquith thus redeemed his pledge (Nov. 2, 1915) to mar- 
ried recruits that they would not be called on before the young, 
unmarried men had been utilized. After various speeches, with Sir 
John Simon, lately Home Secretary and now a Pacifist politician, 
leading the opposition to it, the Bill passed a 1st reading by 404 
to 107. The 2nd on Jan. 12 was approved by 433 to 41, after a 
notable speech by Arthur Henderson, Labour leader, and Presi- 
dent of the Board of Education, in which he said: "My opinions 
have not changed, but they have been overborne by the conviction 
that some measure of compulsion is required on grounds of ab- 
solute military necessity. I have not reached that conclusion 
lightly or without the most anxious consideration of all possible 
alternatives, but in the end I found it impossible to resist the con- 
clusion that unless the Bill proposed by the Government were intro- 
duced and passed we could not continue the War with any pros- 
pect of either a successful or speedy termination." In conclusion, 
he appealed to the Labour members who opposed the Bill to join 
with the rest of the House in sending a message to their fellow- 
workmen in Liege and Lille, bidding them to take courage, because 
with British assistance the hour of their delivery was not far off. 

The Premier was explicit in declaring that without the men 
to be obtained by this measure England could not do her duty in 
the War or fulfil her obligations to her Allies. The 3rd reading 
passed by 385 to 38, of which latter total all were Liberals and 
Labourites, with one Nationalist, and all representative of Pacifist 
thought Sir J. Simon, C. P. Trevelyan, R. L. Outhwaite, J. Allen 
Baker, Sir W. P. Byles, Phillip Snowden, etc. The measure passed 
the House of Lords with little opposition after Lord Kitchener 
had agreed with the Premier as to general compulsion being un- 
necessary and, on Feb. 15, a proclamation was issued, calling up all 
single men in the remaining groups under the Derby scheme and 
the remaining classes under the Military Service Act. Voluntary 
enlistment continued but, in the operation of the Compulsory law, 
there was much laxity of enforcement amongst the tribunals and 
a growing public agitation for universal service. 

Meanwhile organized Labour had opposed this whole policy, 
though many of its representatives in the Commons had supported 
it. The Trade Union Congress, attended by 1,000 delegates, met 
in London on Jan. 6 and by a majority representing 781,000 


members asked the Labour members of the House to oppose the 
Bill; on Jan. 14 the Executive of the National Railway Men's 
Union declared that "unless the Government is prepared to con- 
fiscate the wealth of the privileged classes for the more successful 
prosecution of the War, the railroad workers will resist to the 
uttermost the confiscation of men, whose only wealth is their 
labour power;" the day before this the representatives of 800,000 
miners opposed Conscription by Resolution and on Jan. 27 the 
Annual Conference of the Labour Party, meeting at Bristol, took 
similar action. It first approved British participation in the War 
by a majority of delegates claiming to represent 900,000 members ; 
it then endorsed the action of the Parliamentary Labour Party in 
aiding national recruiting by a high majority of 1,641,000 ; it pro- 
tested emphatically against "the adoption of Conscription in any 
form" as being opposed to the spirit of British democracy and 
the liberties of the people by an equally large majority of 1,796,000 
against 219,000; it voted down a proposal to agitate against the 
Military Service Bill, should it become law, by an almost identical 
majority; it approved of Labour representatives in the Coalition 
Government by an equally large majority. It would seem clear 
from these votes and general conditions that the Conference was 
simply holding, academically, to an old-time position and that the 
anti-Conscription motions did not represent the views of the labour- 
ing masses. 

On May 2nd Mr. Asquith introduced an extended Military Ser- 
vice Bill, applicable to all male British subjects of 18 to 41 years of 
age, married as well as single. He stated that the total naval and 
military effort of the Empire, up to this time, had exceeded 5,000,- 
000 men, declared that almost identical criticisms were directed 
against the Pitt Government in the Napoleonic days as were now 
aimed at his Administration, and added that, despite errors or 
mistakes, the solid contribution of the Empire to the War was 
increasing month by month. The 2nd reading of the Bill was car- 
ried on May 4 by 330 to 38, after a speech from Mr. Lloyd 
George in which he said that there was no principle involved 
in the opposition to Conscription: "There has never been 
a country yet faced with great military peril that has saved 
itself without resorting to compulsion. . . . Washington won 
the independence of America by compulsory methods. They 
defended it in 1812 by compulsory methods. Lincoln, whose 
career was in itself the greatest triumph that democracy ever 
achieved in the sphere of government, maintained the principle of 
government by Conscription. In the French Revolution the French 
people defended their liberties against envious monarchies by 
means of compulsion. France defends her country to-day by Con- 
scription. The Italian democracy are seeking to redeem their 
liberties by compulsion. The Serbian peasants defend their moun- 
tains by compulsory levies, and are going to win their country 
back by the same means. When Hon. members say that Conscrip- 
tion is against liberty and true democracy they are talking in 


defiance of the whole teaching of history and common sense." On 
May 25 H. M. the King gave his assent to this measure and issued 
the following Address to his people : 

To enable our Country to organize more effectively its military resources 
in the present great struggle for the cause of civilization, I have, acting on 
the advice of my Ministers, deemed it necessary to enrol every able-bodied 
man between the ages of 18 and 41. 

I desire to take this opportunity of expressing to my people my recog- 
nition and appreciation of the splendid patriotism and self -sacrifice* which 
they have displayed in raising by voluntary enlistment since the commence- 
ment of the War no less than 5,041,000 men, an effort far surpassing that of 
any other nation in similar circumstances recorded in history, and one which 
will be a lasting source of pride to future generations. 

I am confident that the magnificent spirit which has hitherto sustained 
my people through the trials of this terrible War will inspire them to endure 
the additional sacrifice now imposed upon them, and that it will, with God's 
help, lead us and our Allies to a victory which shall achieve the liberation of 
Europe. (Signed) GEORGE E. I. 

In this way did the Asquith Government overcome the first 
great crisis of the year and establish one of the bases upon which 
success must rest. As the months passed Conscription regulations 
were made more effective, the Tribunals were tightened up in the 
treatment of exemptions, and a Man-Power Distribution Board was 
appointed on Sept. 21. It was composed of J. Austen Chamberlain, 
M.P., (Chairman), Viscount Midleton, Arthur Balfour of Sheffield, 
G. N. Barnes, M.P., and Stephen Walsh, M.P., and was instructed 
"to determine all questions arising between Government Depart- 
ments relating to the allocation or economic utilization of man- 
power for the successful prosecution of the War;" while the 
machinery necessary to co-ordinate the activities of men and women, 
as between war enlistment and war industries, was also created. 
With all these efforts Colonel Repington, the Military writer for 
the London Times, had to say at this time that "we Allies have a 
marked superiority, but not yet such as to provoke decisions and 
to promise annihilation." 

Meanwhile though the Government had done much it was not 
enough to satisfy Lord Northcliffe and his virile, partisan yet 
patriotic press. Speaking to the New York Times' correspondent 
on Feb. 20 A. Bonar Law, Colonial Secretary, described, with pride, 
the fact that 4,000,000 men had enlisted up to this date, while 
6,000,000, altogether, had offered their services ; spoke of the splen- 
did patriotism of the Dominions and the fighting work of South 
Africa; declared that British financial resources "although not 
inexhaustible are so great that they have not yet begun to feel the 
strain;" stated that an economic entente would be established 
amongst the Allies after the War. As to the general situation in 
Britain he made a statement which applied even to the improved 
position of 1916: 

We must never forget that democratic countries are always at a disad- 
vantage in prosecuting a war. Take ourselves. We were not prepared for 
war, except for defence at sea. We were not organized for war. Plunged 
into this conflict suddenly and unexpectedly, as we were, it was inevitable that 
there should be mistakes, muddles, and delays. Organizing for war does not 
mean merely gathering together great armies, training and equipping them; 
it means that all departments of national life have to be brought into national 
ity, and organized on a war basis. This takes time. 


Early in August Mr. Asquith was in France and Italy con- 
sulting with statesmen and commanders and trying still further to 
improve the comity of the Allies. On Apr. 10 a delegation of 
French Senators and Deputies had visited London, been received by 
the King and told by him that "you will see for yourselves, where- 
ever you go, how unanimous is the resolution of the people of these 
Islands, without distinction of race, or class, or political party, 
to prosecute this war until that menace of aggression, which has 
long darkened the sky of Europe and threatened the prospects of 
peaceful progress all over the world, has been finally removed." 
At a succeeding function Mr. Asquith reviewed the situation and 
declared that "we intend to establish the principle that interna- 
tional problems must be handled by free negotiation on equal terms 
between free peoples, and that this settlement shall no longer be 
hampered and swayed by the over-mastering dictation of a Gov- 
ernment controlled by a military caste." 

On May 7 Mr. Lloyd George made one of his fighting, winning 
speeches at Conway, Wales. In guarded reference to charges of 
hostility to the Premier he denounced those who had said that he 
plotted against him ; of course he had differences from time to time 
with Mr. Asquith but they were the differences of friends. He 
stated that of the 1,900,000 men and women engaged in munition 
work 40 per cent, of the former were of military age ; declared that 
the time had come for Conscription in agreement now with others 
in the Government, such as Mr. Asquith himself, who had before 
this opposed general compulsion ; told his old-time Pacifist followers 
that "you either make war or you don't. It is the business of 
statesmen to strain every nerve to keep a nation out of war, but 
once they are in it it is also their business to wage it with all their 
might." As to the Entente Alliance he was explicit: "We must 
have unity among the Allies, design and co-ordination. Unity we 
undoubtedly possess; no alliance that ever existed has worked in 
more perfect unison and harmony than the present one. Design 
and co-ordination leave yet a good deal to be desired. Strategy 
must come before geography. The Central Powers are pooling all 
their forces, all their intelligence, all their brains, all their efforts. 
We have the means; they too often have the methods. Let us 
apply their methods to our means and we win." 

To a United States correspondent on May 13 Sir Edward Grey 
was clear in his statement of national and Allied policy: "What 
we and our Allies are fighting for is a free Europe. We want a 
Europe free, not only from the domination of one nationality by 
another, but from hectoring diplomacy and peril of war free from 
the constant rattling of sword in the scabbard and from perpetual 
talk of shining armour and war lords. ' ' In the House of Lords on 
May 31 the Marquess of Crewe explained the constitution of the 
War Committee of the Cabinet. It was presided over by the 
Premier (Mr. Asquith) and included the Chancellor of the Ex- 
chequer (Mr. McKenna) the Secretary for the Colonies (Mr. 
Bonar Law), the Secretary for War (Lord Kitchener), the 1st 


Lord of the Admiralty (Mr. Balfour) and the Minister of Muni- 
tions (Mr. Lloyd George). 

Following the death of Lord Kitchener, Mr. Asquith took over 
the War Department and administered it for a month until on 
July 6 Mr. Lloyd George accepted the post with the Earl of Derby 
as Under Secretary. Speaking at Ladybank on June 14 the 
Premier referred to the heavy duties of his temporary post and 
paid high tribute to Lord Kitchener "that imposing figure, a 
magnificent embodiment of virile force and resolution." He 
explained his view of Conscription as follows : ' ' I have consistently 
maintained ever since the recruiting problem began to become 
urgent, that compulsion could only be practicable and made effec- 
tive when at each stage of the road it was accompanied by general 
consent." Reference followed to the Irish rebellion, to the week 
which ne, the Premier, had recently spent in Ireland in a study of 
its problems and association with its people, to the efforts of Mr. 
Lloyd George for a permanent settlement of the Home Rule issue, 
to the future closer relations of the Empire. At a Belgian meeting 
in London on July 21 Mr. Asquith spoke explicitly to its un- 
fortunate people. He quoted the recent German decree as to men 
who refused to work for their conqueror: "Instead of having re- 
course to penal prosecutions, the Governors and Military Com- 
mandants may order that the recalcitrant workmen shall be led by 
force to the places where they are to work." The comment was 
that: "We. in Great Britain are taking note of these things. We 
do not mean to forget them. We intend to exact reparation for 

Meanwhile, all through the year, a part of the press had been 
denouncing the Coalition Government with unbridled, uncensored 
criticism. Lord Northcliffe led the battle from the standpoint of 
those who desired more active, energetic prosecution of the War, 
more ginger and patriotic jingoism in its conduct; the Times and 
Daily Mail were insistent in criticizing the Gallipoli adventure, the 
Salonika slowness, the Greek, Bulgarian and Roumanian diplomacy 
of Sir Edward Grey. Conscription was demanded without ceasing 
and in this connection Lloyd George was supported against the 
Premier, while more and more munitions were urged. One school 
of thought described Lord Northcliffe as one of the greatest Eng- 
lishmen of the War and a tremendous asset to the Allies ; the other 
declared that he weakened the Alliance by disclosing British weak- 
nesses, and that his unsparing articles had aroused a distrust in the 
Balkans which helped to bring about the failure of British diplom- 
acy. He, himself, and his papers had no doubt. The War must be 
pushed ahead, victory in the end was certain. There must be 
greater activity in dealing with submarines, more unity of action 
in the Air Board and more energy in the Admiralty for which 
Mr. Balfour was temperamentally unsuited, more sternness in the 
blockade, more force in the Government's diplomacy. 

Journalists such as E. Ashmead Bartlett were vigorous in de- 
nunciation of the Government as "muddlers" (Sunday Times, 
Dec. 3) always committing blunders while Lovat Fraser described 


the Government as having deficient vitality and cloudiness of pur- 
pose; public gossip and this part of the press constantly harped 
upon alleged disagreements in the Government and weaknesses of 
individuals; the slowness in winding up German banks in London 
was a fruitful theme of criticism and one Lord Northcliffe per- 
sonally ventilated in published correspondence. Early in Decem- 
ber the Daily Mail characterized the Government as ' ' The Limpets 
a National Danger," described Mr. Balfour and Lord Lans- 
downe as "idle Septuagenarians," and Lord Grey as a semi-in- 
valid; denounced the alleged indecision of the Cabinet with seven 
urgent questions awaiting settlement and more than 100 Commit- 
tees ' ' endeavouring to make up its mind for it " ; declared its policy 
to be one of general inaction. This editorial was said to have had 
a great effect on the situation. 

The crisis came on Dec. 5 and did not, as in so many previous 
cases, give way to Mr. Asquith's ability in conciliating factions. 
During this storm-laden day the Premier visited groups of his 
supporters Unionist and Liberal while Bonar Law and Lloyd 
George remained in their offices. The constitution of an inner War 
Council was the immediate issue, with Mr. Lloyd George opposed 
to the Premier as a member and demanding larger powers to more 
actively prosecute the War, with himself, Sir Edward Carson, Mr. 
Bonar Law and a Labour representative as the Members of this 
Council. Mr. Asquith declined to accept such an arrangement, 
Lloyd George resigned, the issue became acute, and the Premier 
then gave up his post. How far the rivalry in opinion and ambi- 
tion between the Premier and his energetic War Minister was 
responsible, is difficult to decide. Speaking on Dec. 8 Mr. As- 
quith said : ' ' There has been a well-organized, carefully-engineered 
conspiracy not, I believe, countenanced in any quarter of the 
Liberal Party, but directed against members of the Cabinet, and 
directed, it is true, in part against some of my late Unionist col- 
leagues, but in the main, I think, against my noble friend Lord 
Grey and myself. He and I are the two men who are mainly 
responsible for the part which this country took before the out- 
break of the War, and since then up to the present time." 

In the end Mr. Asquith's resignation terminated a stormy and 
remarkable Premiership of 8 crowded years. Since Pitt and 
Liverpool there had been no continuous Premiership so long as 
that of Henry Herbert Asquith. He had done some great things 
for his country in that period ; if he had limitations bred of long 
association with opinions opposed to war,* he rose above the most 
of them in this crisis; if he might have done more it will be for 
time and mellowed thought to determine the fact. The King at 
once called upon the Rt. Hon. A. Bonar Law, a Canadian-born 
leader in the Unionist Party, to form a Government and he made 
the effort though without success. He was known to have worked 
in harmony with Mr. Lloyd George during the recent crisis while 
Viscount Grey of Falloden so created in the preceding July 
Lord Crewe and Messrs. McKenna, Harcourt and Runciman had 
stood by the Premier. He failed in his effort to bring the factions 


together and then the King called on the inevitable, the only man, 
for the place, and on Dec. 10 David Lloyd George announced his 
Government as follows with the first five men constituting a War 
Cabinet and the others as administrators of Departments: 

Name. Position. Politics. 

David Lloyd George Premier Liberal. 

Earl Curzon Lord President of the Council and Govern- 
ment leader in the House of Lords Unionist. 

Arthur Henderson Minister without Portfolio Labour. 

Lord Milner Minister without Portfolio Unionist. 

Andrew Bonar Law* Chancellor of the Exchequer Conservative. 

Sir R. B. (Lord) Finlay . .Lord High Chancellor Unionist. 

Sir George Cave Secretary of State for Home Affairs ....;.. .Unionist. 

Arthur J. Balfour Secretary for Foreign Affairs Conservative. 

Walter Hume Long Secretary of State for the Colonies Conservative. 

Earl of Derby Secretary of State for War Conservative. 

Austen Chamberlain Secretary of State for India Unionist. 

Lord Rhondda President, Local Government Board Liberal. 

Sir Albert H. Stanley . . . President, Board of Trade None. 

Sir Edward Carson First Lord of the Admiralty Unionist. 

John Hodge Minister of Labour . . . . Labour. 

Dr. Christopher Addison . .Minister of Munitions Liberal 

Lord Robert Cecil Minister of Blockade Conservative. 

Lord Devonport Food Comptroller Liberal. 

Sir Joseph P. Maclay Shipping Comptroller Liberal. 

Rowland E. Prothero .... President, Board of Agriculture None. 

Herbert A. L. Fisher . . . .President. Board of Education None. 

Sir Alfred M. Mond First Commissioner of Works Liberal. 

Sir Frederick Cawley Chancellor, Duchy of Lancaster Liberal. 

Albert Illingworth Postmaster-General Liberal. 

George N. Barnes Minister of Pensions Labour. 

Sir Frederick E. Smith . . .Attorney-General Conservative. 

Robert Munro Secretary for Scotland Liberal. 

Lord Wimborne Lord Lieutenant of Ireland Liberal. 

Henry E. Duke Chief Secretary for Ireland Unionist. 

The constitution of the War Cabinet was unique in British 
history; practically it was a dictatorship with supreme power in 
the Prime Minister's hands. He and three others had no adminis- 
trative duties; simply the task of oversight and creative policy, 
new activities and better organization, unified work with the Allies 
and co-operation of parties, the guidance of public opinion. In the 
Government there were 9 Liberals, 13 Unionists or Conservatives 
and 3 Labourites, with three members who had no political asso- 
ciations also a unique situation. The new men were Lord 
Rhondda, well known in Canada as D. A. Thomas, M.P. ; Sir Albert 
Stanley, who had never been in Parliament and was famous as a 
transportation expert; Lord Devonport (Sir Hudson Kearley), 
capitalist, politician, Chairman of the Port of London Authority, 
and a man of determined, aggressive character; E. E. Prothero, 
M.V.O., was an expert in Agriculture and food problems; Dr. H. 
A. L. Fisher, Vice-Chancellor of Sheffield University, was an his- 
torian and writer of high repute and like Sir Joseph P. Maclay, 
the Shipping magnate, had never been in Parliament. 

The head of this National Government was unmistakably the 
man of the hour. When Munitions were needed to save England 
and the civilized world from disaster he was called upon and his 
nervous energy did the work; when the Labour situation promised 
to check munitions and hamper recruiting he saved the situation; 
when rebellion and the Home Rule issue reached a crisis in Ireland 
he almost solved the problem and, in any event, held the elements in 

*NOTE. Asked by the Premier to be Leader in the House of Commons, and also 
member of the War Cabinet, though without being expected to attend regularly. 


hand ; when the great War Minister was called away he had taken 
over his enormous task. Now he was Prime Minister with a united 
nation and consolidated parties behind him ; with memories of past 
agitations and extreme views and wild statements and personal 
enmities put aside for the moment; with the greatest field in all 
history for the exercise of his wonderful energies, vibrating beliefs, 
and personal magnetism. 

On Dec. 19th Mr. Lloyd George delivered a speech in the Com- 
mons outlining his policy. He had begun this bearing of the 
national burden by stating his refusal of the so-called peace terms 
of the German Government and re-defining the British demands 
as * ' complete restitution, full reparation and effectual guarantees. ' ' 
To realize those demands was the supreme object of the new Gov- 
ernment ; an earnest of success would come from personal sacrifice 
following that of the men in the trenches. "Let the nation as a 
whole place its comforts, its luxuries, its indulgences, its elegancies 
on the national altar, consecrated by such sacrifices as those our 
men have made. Let us proclaim during the War a national Lent. ' ' 
The solution of the Irish problem, he declared, lay in the removal 
of mutual distrust and suspicion, the creation of a better atmos- 
phere, and to this he would devote himself as far as possible. ' ' The 
policy of a common front must be a reality. Austrian guns are 
helping the German infantry, and German infantry is stiffening 
the Austrian arms. The Turks are helping the Germans; Aus- 
trians and Bulgarians mix with all. There is an essential feeling 
that there is but one 'front, and we have got to get that more and 
more, instead of having overwhelming guns on one front and bare 
breasts on the other." There must be recognition by all the Allies 
that there is only one front. The Empire was one in "the superb 
valour of our kinsmen ' ' and he declared that the Dominions should 
be more fully consulted as to the progress and course of the War, 
the steps essential to secure victory and to hold the fruits of it. 

Pood supplies would be and must be conserved and conditions 
equalized amongst rich and poor; excessive profits would be 
checked and labour mobilized. "We propose to appoint, immedi- 
ately, a Director-General (A. N. Chamberlain of Birmingham), who 
will be in charge of the matter of universal nation service. A 
Military Director will be responsible for recruiting for the Army. 
A Civil Director will begin by scheduling all industries and ser- 
vices according to their character, as essential or not essential to 
the War." On Dec. 22 the King prorogued Parliament with these 
significant concluding words: "The vigorous prosecution of the 
War must be our single endeavour until we have vindicated the 
rights so ruthlessly violated by our enemies and established the 
security of Europe on a sure foundation." A factor in, or an 
important adjunct to, the general process of government during 
this period was the appointment of a multitude of Royal Commis- 
sions or Committees to inquire into every conceivable matter of 
public importance, to meet sudden political issues, or to provide 
for war energencies, and they numbered at least 100. 


Meantime politics and persons might come and go but one of 
the most remarkable phenomena in British history went through 
the stages of a great development. The output of Munitions in 
1915, under Mr. Lloyd George's control, had been great; that of 
1916 was infinitely greater. When he took charge of the new De- 
partment, in May of the former year, Germany was turning out 
250,000 shells per day chiefly high explosives and Great Britain 
2,500 a day of the latter and 13,000 in shrapnel.* He had brought 
the best brains, resources and organizing skill of the country into 
this work. At the beginning of 1916 2,500 Government-controlled 
factories, employing 1,500,000 men and women, were at work, and 
on Mar. 17, 3,078 such establishments were in operation: on Aug. 
1st the number was 4,052 and by Oct. 1st, 4,319. On Apr. 19 it was 
officially stated that a census of all the machinery in the country 
had been made, the machine tool trade was placed under Govern- 
ment control and measures were taken (including purchase of 
machinery in America) to provide adequate plant, properly dis- 
tributed, to secure an increased output. 

The supply of metals of all classes was also placed under Gov- 
ernment control, and this step not only ensured an adequate and 
abundant supply of raw material, but also effected savings amount- 
ing in the aggregate to from 75 to 100 millions of dollars. Labour, 
too, was organized and the supply increased, technical advice was 
given manufacturers in overcoming difficulties. Men were ap- 
pointed of special character to push contracts forward and the 
result was an increase of deliveries on old orders from 16 per cent, 
on the promises to 80 per cent, on the promises. Private firms were 
appealed to and many placed their works at the disposal of the 
Government for the further production of gun ammunition. The 
country was divided into twelve areas England and Wales, eight ; 
Scotland, two; and Ireland, two. 

Thirty-three National shell factories had been started, run by 
local boards of management on behalf of the Government and 
many of them were conspicuously successful, increasing the sup- 
ply threefold and minimizing labour difficulties by avoiding the 
usual questions between capital and labour; there were 1,900,000 
persons in the spring engaged on munition work, of whom 200,000 
were women with approximately 13,000 factories and workshops in 
operation besides the Government establishments; in June the 
number of workers was stated as 2,250,000 of whom 400,000 were 
women. On July 9 Edwin S. Montagu, M.P., Financial Secretary 
to the Treasury, had become Minister of Munitions in succession 
to Mr. Lloyd George and, in the Commons on Aug. 15, summarized 
the progress of the great industry. He could not, of course, give 
exact figures but stated that "we are now producing every four 
days as much heavy howitzer ammunition as it took us a whole year 
to produce at the rate of output in 1914-15." In artillery "we are 
turning out in a month nearly twice as many big guns as were in 
existence for land service" in May, 1915. To the latter date from 

*NOTE. Mr. Lloyd George in House of Commons, Dec. 20, 1915. 


the outbreak of war the number of machine guns accepted was 
only 1/18 of the number accepted in the next 12 months and "the 
total stock existing in May, 1915, could now be replaced in from 
three or four weeks. ' ' So with rifles and small arms, while the 
production of high explosives was 66 times that of the beginning 
of 1915. "The cost of the factories, which was high at the start, 
has fallen rapidly, and is now much less than the 1915 contract 
prices. The reduction in home contracts which has ensued repre- 
sents a saving, in the case of shell, of 20,000,000 a year. American 
shell contract prices have been reduced 15 per cent. ; Canadian 
shell contract prices 12^ per cent." 

The Labour difficulties in the way had been great and it was 
especially hard to persuade the men to give up stated hours for 
which they had been fighting for years, to abandon holidays which 
had become an institution, to sacrifice regulations as to wages 
and competition of unskilled and female labour which had become 
political sacraments, to forego, practically, the right to strike for 
higher wages. There were a number of these strikes, especially in 
the turbulent, independent mining circles of Wales and amongst 
the shipping and munition workers of the Clyde. Disputes in 
March involved 58,000 workers, in April 54,000, in June 32,000, 
in July 34,000, in August 21,000, in October 18,000 and so on. 
The number in proportion to the millions engaged was small and 
the facts greatly exaggerated in the press and despatches abroad. 
The Lloyd George influence was tremendous, the Labour leaders, 
outside of a few agitators like Ramsay Macdonald, stood loyally 
by their country and by the end of 1916 every species of production 
bearing upon the War was advancing by leaps and bounds. 

The dilution of workers with female labour, the replacing of 
unskilled men, fitted for active service, by women was a great 
problem successfully worked out with 500,000 women employed 
in munitions at the close of 1916. Taking all occupations in the 
United Kingdom there were 3,219,000 women employed in July, 
1914, and 4,085,000 in July, 1916, with 766,000 acting as direct 
substitutes of male labour. There was some discontent as to the 
small wages given and public criticism in this respect, which would 
seem to have been partly justified. To this female labour Mrs. 
Humphrey Ward in April, 1916, paid high tribute. The patriot- 
ism, cheerfulness, readiness to work in all and any hours, which 
these girl-women of Britain showed, was said to be remarkable. 
* ' The men are steadily training them, and without the teaching and 
co-operation of the men without, that is, the surrender by the men 
of some of their most cherished trade customs the whole move- 
ment would have been impossible." With all the enormous effort 
of the workers, the buzzing of countless machinery, the turning of 
England into a vast work-shop for war, the labour of peer and 
peeress and society girl beside the mechanic and artisan and farm 
hand, the sacrifice of every class in the community, still more 
labour was required at the close of the year, still more men were 
wanted for active service. In the New York Times of Dec. 30 
Sydney Brooks, an English journalist, reviewed with unusual 

O S3 

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freedom what had been done in general product and result. Be- 
sides being the naval and financial bulwark of the Alliance Great 
Britain had become its supreme arsenal and workshop : 

Already, and on an enormous scale, she has furnished the Allies with 
indispensable supplies, munitions, ships, coal, clothing and other material. 
Shells, field howitzers, heavy guns, grenades, machine-guns, and small arms 
leave British ports in immense quantities day after day for the use of our 
Allies. One-third of our total production of shell steel goes to France. Three- 
fourths of the steel-producing districts of France are occupied by the enemy, 
and our Ally absolutely depends on us for command of the sea to procure 
the essential basis of all modern warfare. It is the same with other metals; 
with copper, for instance, antimony, lead, tin, spelter, tungsten, mercury, 
high-speed steel, and other less vital substances. All these we are manufactur- 
ing in Great Britain or in other parts of the Empire, or purchasing in neutral 
lands and delivering to our Allies, under the protection of the British Navy, 
to the value of $30,000,000 a month. Millions of tons of coal and coke reach 
them from our shores every week; one-fifth of our total production of machine 
tools is set aside for them, and huge cargoes of explosives and machinery are 
daily despatched to their address. There is a factory in England wholly man- 
ned by Belgians and engaged in manufacturing nothing but guns and small 
arms for the Belgian troops. There are two or three that do nothing but 
supply Eussia's needs, and two or three others solely devoted to making guns 
for the French. All the Allies, except the Eoumanians, are fighting at this 
moment in British-made military boots, of which we have turned out some 
30,000,000 pairs since the War began, and British workshops played their 
part in the Eussian sweep through Galicia last May, and the Italian repulse 
of Austria's offensive. There are to-day in Great Britain over 4,000 firms 
wholly engaged in the production of war material, and not one of them before 
the War had had even an hour's experience of that class of work. Nearly 100 
colossal plants have been erected, and some 3,500,000 people, of whom 700,000 
are women, find employment therein. That is a miracle of improvisation that 
must, I suppose, be unique in industrial history. 

Meanwhile there had been some unpatriotic and Stop-the-^ar 
agitations, some strikes engineered by enemy agents and Pacifist 
individuals, some inevitable survivals of the peace-at-any-price 
school. They made up an unpleasant but not influential force. 
One of the chief ' * friends of Germany ' ' was C. P. Trevelyan, M.P., 
who on Jan. 27 declared at Bristol that "the Germans ought to be 
got out of Belgium on terms, and not by fighting." That was 
also, he believed, the view of most Belgians. He protested against 
the idea of crushing and dismembering Germany. E. D. Morel, a 
Labour agitator, in the Labour Leader (Jan. 20), proposed the 
enforced neutralization of all Colonial commerce, and equal rights 
of trade for England or Germany or Morocco in Britain, Canada 
or German East Africa or Italian Tripoli; the abandonment of 
British sea power and its duties. All this in order to promote 
Peace ! 

Under the auspices of the Union of Democratic Control and 
the Independent Labour Party many anti-war and anti-Conscrip- 
tion meetings were held. Most of them were noisy, the speeches 
incoherent, irrational, violent, and many were broken up. Of the 
former organization the Executive Committee included Norman 
Angell, C. E. Buxton, J. A. Hobson, F. W. Jowett, M.P., J. Earn- 
say Macdonald, M.P., E. D. Morel, Arthur Ponsonby, M.P., and C. P. 
Trevelyan, M.P. On Apr. 6 the Labour Leader, 'the organ of the 
Independent Labour Party, republished a leaflet which was being 


circulated and which declared that "the nations must accept the 
principle of international government." This organization not 
to be confused with the Parliamentary Labour Party or other 
national Associations met in Conference at Newcastle on Apr. 24 
and passed a Resolution in favour of "a vigorous campaign by 
all possible means in favour of settlement of the issues of the War 
by peace negotiation." Philip Snowden, M.P., told the delegates 
that "there is nothing now dividing Germany and England which 
is worth the sacrifice of another human life." 

The Labour Leader of May 25 described the operations of the 
Peace Negotiations Committee which was circulating a Memorial 
in favour of Peace by immediate negotiation. It was said to 
include representatives of 18 organizations and the Memorial to 
have been signed by those mentioned above and others such as Lord 
Courtney of Penwith, Hon. Bertrand Russell, F.R.S., Lord Peck- 
over, J. H. Whitehouse, M.P., R. L. Outhwaite, M.P., etc. Mr. Rus- 
sell, about this time, was fined $100 for writing anti-recruiting 
literature and a little later was forbidden entrance to certain 
areas or to leave the country. In the September U.D.C., C. R. Bux- 
ton said of the British Government that: "It is not for Belgium, 
France, and Serbia, but for territorial aggrandisement and com- 
mercial boycott, that they are calling upon our sons and brothers 
to fight and die." 

Financially Great Britain did marvels during these years 
something which all history and all time will view with admiration. 
Full statements were made public, everything was open and above- 
board, there was no censorship in respect to the $25,000,000 a day 
expenditure, which at the end of 1916 had become $30,000,000, 
every detail was clear. In the war-months of the fiscal year 1914-15 
Britain raised 860 million dollars in taxation, in 1915-16 a total of 
1,685 millions, in 1916-17 the estimate of taxation was the enor- 
mous sum of 2,500 millions. This covered all ordinary expendi- 
ture, interest on War loans, and a part of the actual cost of the 
War. The gold standard was maintained, the British sovereign 
showed no depreciation while the German mark in New York went 
down 30 per cent. Most of the British loans of $14,167,000,000 to 
Dec. 31, 1916,* were made at home taken up by the , British 
people; $800,000,000 borrowed in the States was largely to help 
exchange and steady rates ; to that country the Allies chiefly Bri- 
tain shipped 1,100 millions in gold during this war period. The 
total British War debt, as above, was made up as follows: 

3 % % War Loan, 1914 . 62 774 000 

4 % % War Loan, 1915 899 997 000 

3% Exchequer Bonds (repayable 1920) 21,660,000 

5% Exchequer Bonds (repayable 1919-1921) 333,515,000 

6% Exchequer Bonds (repayable 1920) 169,204,000 

Treasury Bills (repayable at intervals in 1916) 1,116,043,000 

War Savings Certificates (repayable 1921) 41,500,000 

War Expenditure Certificates (repayable 1918) 29857,000 

Loans in United States 161,370,000 

With preceding indebtedness and miscellaneous items the total 
British Debt at the end of 1916 was $17,309,000,000 and of the 
War part of that liability $4,000,000,000 was lent to the Allies and 

*NOTB. London Times, converted at $5 to the pound. 


Dominions. These figures, colossal as they are, hardly reveal the 
nature of the task which Britain carried out in these years. Other 
countries borrowed huge sums and will suffer for it in many 
respects; Britain borrowed from her own people with revenues 
which covered sinking fund and interest and current expenditures 
and overflowed into war expenses; the money was spent in the 
country and heaped up wealth for the individual which, in turn, 
was restricted by taxation. The liability remained and some of 
the resources of the nation were depleted and the incidence of 
taxation promised to be a tremendous problem for a time, but 
trade flourished, industries such as shipping, cotton, woollens, etc., 
grew to huge proportions; the entire credit and financial system 
of the world's centre remained intact; London with its highly 
perfected banking system and facilities for exchange operations 
and financial action, remained the pivot of things financial, even 
while New York was reaching a position in that respect far beyond 
all past expectations. 

Early in the year (Mar. 21) Sir George Paish pointed out before 
the Royal Statistical Society that Britain's annual income of 
12,000 millions of dollars had increased by 3,000 millions in less 
than two years of war; that although 2,500 millions of British 
capital invested abroad had been drawn upon for the War, nearly 
all of it had gone in loans to the Allies ; that, virtually, the tremen- 
dous war expenditure was being carried on without drawing upon 
capital and was still far from that borne (per capita) by the 
people in the Napoleonic wars. J. Ellis Barker in the XIX Cen- 
tury early in 1916 pointed out that "Great Britain's expenditure 
on the war with France amounted to about $5,500,000,000. This 
means that a century ago Great Britain spent on war a sum about 
equivalent to the national income of two and a half years, and con- 
siderably larger than one-third of the entire national capital of that 
He therefore argued that Britain could now, with infinitely 
greater industrial and trade resources, spend one-third of her 
capital which he placed at $20,000,000,000. But his estimate of 
total capital was 60,000 millions instead of the usually accepted 
one of 90,000 millions, so that the ratio might run as high as 
$30,000,000. Moreover, there was the capital wealth of India and 
the Dominions back of that or another 60,000 millions at least. As 
to this Sir Leo Chiozza-Money, a statistician of a very different 
school of political thought, came to similarly optimistic conclusions 
conditioned upon the proper mobilization of resources and national 
economy. He estimated the British ownership of overseas wealth 
r Public securities at $20,000,000,000 as follows : 

United States of America 800,000,000 

Canada \ 500,000.000 

Latin America 700,000,000 

Total American Securities 2,000,000,000 

In Australasia and other parts of the Empire 1,300,000,000 

In other parts of the world 400,000,000 

Private Securities 300,000,000 

Total 4,000,000,000 


As a matter of fact Great Britain in providing for interest and 
sinking fund out of revenue for all new indebtedness as she went 
along and in paying part 'of the current war cost out of revenue 
while finding funds for her Allies and Dominions, was proving con- 
clusively her wonderful financial stability and the strong position 
she should hold after the War. The extreme limit of British ex- 
penditure on the War was 10,000 millions a year ; it had not aver- 
aged more than 6,000. Taking the former figure there was much 
to meet it including a yearly revenue from investments estimated 
at 10,000 millions which, though it shrank no doubt from external 
war conditions increased also from internal war prosperity; a 
margin of 2,000 millions a year from savings by the people which 
also was increased by industrial activity at home ; there was 1,000 
millions of ordinary British revenue now increased to 2,500 millions. 

Britain suffered, of course, in the loss of the capital wealth 
which she might have created during these years; comparatively 
also she was poorer in relation to the United States. So with the 
loss in buildings and homes which would have been constructed, the 
improvements in cities and other centres, in sanitation and beauti- 
fication of the country, in railway and other expenditures and in 
new investments abroad. On the other hand, as Hartley Withers 
of the London Economist put it (Jan. 2, 1917) "war will have 
shaken her up and invigorated her, and taught her many lessons in 
organization and method which will be useful in peace. Her debt 
charge will be enormous, but will mainly involve a transfer of 
wealth from the tax-payers to debt-holders who will be her own 
citizens." It may be added that in a special interview granted the 
New York Times Rt. Hon. Reginald McKenna, Chancellor of the 
Exchequer, stated on Aug. 13 that : 

It has been a British tradition to meet the cost of war as far as possible 
by taxation, and we maintained that policy even in this unprecedented strug- 
gle. Out of a total expenditure for the current year of $9,125,000,000 no less 
than $2,500,000,000 is being met by taxation. We have increased certain 
indirect taxes on tobacco, tea, sugar, etc., and we have introduced new ones 
on matches, table waters, entertainments, etc., but our harviest demands have 
been made through direct taxes, our citizens to-day paying in an Income tax 
from slightly under 1 per cent., when their incomes are very snrall, up to over 
4:iy 2 per cent,, when their incomes are very large. Finally, we have enacted 
that from any increase in Profits earned during the War 60 per cent, shall be 
surrendered to the State. Our position is so sound that if we were to end the 
War at the end of the current financial year, that is to say on Mar. 31, 1917, 
our present scale of taxation would provide not only for the whole of our 
peace expenditure and the interest on the whole National Debt, but also for 
a sinking fund calculated to redeem that Debt in less than 40 years, and 
there would still remain a surplus sufficient to allow us to abolish the Excess 
Profits tax and to reduce other taxes considerably. 

Meanwhile war saving and thrift campaigns had met with 
signal success, war loans were always over-subscribed, contributions 
to War charities and gifts had been enormous, external securities 
were being mobilized for purposes of United States borrowing, 
war profits had been taxed up to 60 per cent. Mr. McKenna, in 
a letter written on July 13, said : ' ' There are not enough goods and 
services for war purposes unless civilians refrain from all un-essen- 


tial demands. We must take as sole criterion of right spending 
not preconceived standards of comfort or luxury, but health and 
efficiency. Extravagance and waste are treason in wartime, in- 
difference is a crime. ' ' The Securities mobilization involved trans- 
fer to the Treasury for five years subject to the right of return to 
the holders after Mar. 31, 1919, on three months' notice. The con- 
sideration for the loan was a half per cent, above the interest and 
dividends paid on the securities. 

As to the general situation Richard Vassar-Smith, Chairman of 
Lloyd's Bank and a leading authority, stated to the New York Tri- 
bune on Dec. 15 that ' ' we are able to continue paying for our pur- 
chases in America and also financing the War I am not specify- 
g any particular time until Germany is absolutely exhausted 
d compelled to give up. . . . Every one knows that the War 

not continue indefinitely at its present rate, but so long as it 
oes we will be able to finance it without anxiety." It may be 
ded here that the aggregate values of British securities shrank 
argely during this period. Of 387 representative securities listed 
on the London Stock Exchange the total shrinkage for 1916 was 
750 million dollars, and from July 30, 1914, to Dec. 18, 1916, a total 
of 2,915 millions. Of course, the bulk of this shrinkage was not 
permanent nor was it a national loss. More important was the 
fact that the position of British Banks during this war-period was 
very strong with satisfactory earnings, increased profits and re- 
duced distributions the 11 chief Banks in London having on 
July 31, 1916, Deposits of 829,068,201 or $400,000,000,000, cash in 
hand of 229,387,835 or $1,100,000,000, Loans of 401,230,199 or 

The London-German Banks were a fruitful cause of contro- 
versy in 1916. There was no doubt as to slowness in the winding- 
up of these institutions and of 400 enemy firms which also were 
under control and of which it was said by critics that ' ' if the War 
were to end suddenly to-morrow a great many German traders 
would find that their business had been preserved for them by the 
British Government and that they would be in a better position to 
start again than many of their British competitors." The toler- 
ance of the British character was never more clearly shown than 
in this condition but, toward the close of the year, the public, urged 
on by the Northcliffe press, began to demand a settlement. On 
Oct. 26 Mr. McKenna explained the matter and said that "any 
transactions of the German banks in London, under their license, 
were subject to the supervision and control of Sir W. Plender, who 
was appointed by the Treasury. The process of the realization of 
assets and discharge of liabilities had been completed in the case 
of the Deutsche Bank and in that of the Dresdner Bank, while the 
Disconto Gesellschaft had been so far completed that practically 

Iall the creditors had been paid with the exception of the Bank of 
England. The sum paid to British, Allied, and neutral creditors in 
'espect of these three banks amounted approximately to 20,000,000. 
The disposal of the securities remained to be completed and these 


were valued at 20,000,000 and involved the severance of connec- 
tion with their customers." 

In a broader sense German financial matters were dealt with by 
a Royal proclamation of Nov. 23 which amended the April condi- 
tions agreed to by all the Allies and which had left loopholes for 
the Central Powers. It was officially stated that since the Allies 
began examining mails to neutrals contiguous to Germany they had 
stopped about 50,000,000 which were going to banks or persons in 
enemy countries and including large numbers of subscriptions to 
Enemy war loans. The Proclamation defined this new Contraband 
as follows : Gold, silver, paper money, securities, negotiable instru- 
ments, cheques, drafts, orders, warrants, coupons, letters of credit, 
delegation or advice, credit and debit notes or other documents 
which authorized, confirmed or gave effect to the transfer of money, 
credit or securities. 

Hardly less remarkable than British finance was the trade of 
this year. Imports for the calendar year 1916 totalled the huge 
sum of $4,745,000,000 as against 4,260 millions in 1915 and 3,845 
millions in the last peace year of 1913. Exports during 1916 were 
$2,535,000,000 as against 1,925 millions in 1915 and 2,625 millions 
in 1913.* These figures do not include Government imports and 
exports or movements of gold and silver, which, of course, were 
very large, and they are affected, also, by the higher prices pre- 
vailing. With all that the record was a notable one. To have car- 
ried on a total trade of over 7,200 millions in a time of intense war, 
depleted man-power, enemy submarines, lessened shipping facilities 
and enormous financial demands, was a great record in itself. The 
Imports were the largest in British history and more significant 
still, the Exports were so, also, with the one exception of 1913. 

According to the New York Tribune in its financial review of 
the year : ' * Great Britain paid special attention to the cotton trade ; 
in spite of the fact that less cotton was imported in 1916 than in 
the previous year, exports of manufactured cotton goods increased 
by over 12 per cent. Special attention was paid to the Indian and 
Central South American markets, which are the mainstay of the 
Manchester mills. Exports of woollen goods increased 10 per cent., 
and the purchases of the United States were satisfactory. In the 
steel and iron trades Great Britain exported 20 per cent, more than 
in 1915, in spite of the fact that the number of factories employed 
in making munitions had been doubled." An important incident 
of the year in this connection was the inauguration of the British 
Black List, or a published statement of firms in various neutral 
countries with whom British subjects were debarred from trading. 
By the close of 1916 they totalled 4,544 according to official figures, 
and included 452 firms in Denmark, 581 in Holland, 325 in Nor- 
way, 623 in Sweden, 353 in Spain, 186 in Switzerland, 155 in the 
United States, 232 in Brazil, 228 in China, 92 in Greece and the 
rest scattering throughout 23 other countries and South America 
as a whole. 

*NOTE. Lendn Times, Jan. 12, 1917; changed into currency at $5 to the Pound. 



The price of food was an important subject in 1916 and it grew 
more so with each passing month. The Government urged econ- 
omy, public men urged Government restriction and popular self- 
denial, while prices mounted higher. Early in August an Order- 
in-Council authorized, amongst other things, the seizure of food 
stuffs which were held to the prejudice of national interests. This 
was primarily intended to enable the Board of Trade to prevent 
large stocks of wheat, or frozen meat, or other goods, such as 

I bacon, cheese, butter, dried fruits, barley, oats and maize, being 
stored away and not released until high prices could be obtained 
for them. Nothing very strenuous was done, however, and at the 
Trades Union Congress held in Birmingham on Sept. 8 the following 
Resolution was passed: "This Congress views with alarm the 
enormous increase in the price of food since August, 1914, and 
expresses its profound astonishment and indignation that, in view 
of the undoubted fact that the increased price is to a large extent 

I due to the action of shipowners and others in charging exorbitant 
rates for transport, the Government have not completely taken 
over the direct control of shipping, railways, and all means of 
transport. ' ' 

When Parliament met Mr. Runciman, President of the Board 
of Trade, announced (Oct. 10) the appointment of a Royal Com- 
mission "to inquire into the supply of wheat and flour in the 
United Kingdom; to purchase, sell, and control the delivery of 
wheat and flour on behalf of His Majesty's Government; and gen- 
erally to take such steps as may seem desirable for maintaining 
the supply." This was only a partial measure but as a sequel to 
other action previously taken the Grain Supplies Committee of 
1914, the Indian Wheat Committee, 1915, the Co-operative Allied 
Committee (Britain, France and Italy) appointed early in 1916, 
good results were expected. Meanwhile in the two fiscal years of 

war the United Kingdom wheat crop had increased from 7,804,000 
quarters to 9,239,000 quarters and the imports of wheat and wheat- 
flour had remained very nearly stationary 26,000,000 quarters or 
the equivalent. The price of wheat, meanwhile, had risen over that 
of the pre-War period by 64 per cent. ; British barley went up 83 
per cent., and oats 62 per cent. 

In September a Committee 'of economic experts, appointed in 
June to investigate the causes of the increased price of commodit- 
ies of general consumption and make suggestions to meet the situa- 
tion, reported no evidence of any rings, combines or manipulation 
of prices, approved the Government's restrictive action in certain 
cases, advised special action as to milk, meat and bacon, and de- 
clared the average increase in cost of living to the working classes, 
from July, 1914, to Sept. 1st, 1916, as about 45 per cent. At the 
same time it was estimated that war bonuses and increases in the 
normal rate of wages granted to workpeople of the manual labour 
classes in the two years had affected 5,800,000 persons to the extent 
of 1,480,000 per week. These figures did not include the increase 
in earnings which resulted from greater regularity of employment, 
additional overtime, substitution of piecework for timework, and 


other factors which tended to raise the actual earnings quite apart 
from the increase in rates. It was found that freight increases did 
not greatly affect the price of meats as the average was only one 
pence in the pound. Various mild recommendations were made. 

Incident to this price and food problem was the Liquor question 
as to which Prohibitionist statements were that enough grain to 
make 2,000 million quartern loaves of bread, and enough sugar 
to supply the entire Army, had been destroyed during the War in 
the manufacture of Alcohol, and that 2,400,000 measurement tons 
of shipping or 96,000,000 cubic feet of shipping space, had been 
used up by the Liquor traffic in 12 months of War. During 1916 
1,000 of the most distinguished persons in the United Kingdom 
signed a Memorial to Parliament in favour of the suspension of 
Alcohol manufacture and sale during the War and ensuing De- 
mobilization. They included 8 Admirals such as Sir Edmund 
Fremantle, 8 Generals such as Sir H. Smith-Dorrien, many Privy 
Councillors headed by Lord Bryce with members of Parliament 
such as Sir Ivor Herbert, and representatives of Labour, Litera- 
ture, Science and Art such as the Rt. Hon. Thomas Burt, M.P., 
Thomas Hardy, Sir William Osier, Sir Luke Fildes, R.A., and Sir 
J. Forbes Robertson. 

It was claimed that this policy would save $30,000,000 a day or 
enough to pay for the War as well as thousands of lives. At the 
same time there had been a tremendous improvement in conditions 
without Prohibition. Restricted areas and hours for sale of liquor 
and prohibition of treating had worked wonders since the Central 
Liquor Control Board had taken over control of the traffic on May 
15, 1915. Lord D'Abernon, its head, stated on Apr. 15, 1916, that 
there was 50% less public drunkenness and disorder than before 
the War, that 20,000,000 were directly affected by the Board's 
operations and had shown surprising willingness to accept war- 
time restrictions, and that much of pre-war drunkenness would 
never exist again. He declared that "the object of reform should 
be not to hit the brewer and the distiller, but to get better results 
from them. And that is possible only if a broad view is taken of 
their position, if their difficulties are recognized and if their co- 
operation is procured in modifying the present position." 

Meantime, the Earl of Selborne was leading a strong agitation 
for better farming conditions and increased production, and the 
feeding of England by her own people. Elaborate plans were 
underway with the Small-holding Colonies Act of this year as a 
central force. On Nov. 3 it was authoritatively announced that 
European requirements for wheat were 538,000,000 bushels and 
the available world surplus was only 528,000,000 bushels includ- 
ing Russia. Lord Crawford's Wheat Commission, appointed in 
October, was instructed "to inquire into the supply of wheat and 
flour in the United Kingdom; to purchase, sell, and control the 
delivery of wheat and flour on behalf of His Majesty's Government; 
and generally to take such steps as may seem desirable for main- 
taining the supply." Following this it was announced on Nov. 15 
that a Food Comptroller would be appointed and this was done in 



the person of Lord Devonport by the new Lloyd George Ministry. 
There had been during these months more than one crisis in 
the Coal trade, with its essential supplies for the Navy and muni- 
tion works, and its difficult labour problem. A Departmental Com- 
mittee inquiring into the War situation as to coal reported (Sept. 
26, 1916) that production in the pre-war year of 1913-14 was 281,- 
135,000 tons, in August, 1914, to July 31, 1915, 250,368,000 tons, 
in 1915-16 254,748,000 tons. With enormously increased demands, 
therefore, the output had decreased, though an improvement was 
now evident. Up to Mar. 31, 1916, the Miners enlisting totalled 
282,200 or 25 per cent, of the labour employed at the beginning of 
the War. "In the antumn of last year it became evident that, 
whatever remedial measures were adopted, if the miners continued 
to be recruited in large numbers, it would be quite impossible to 
meet the home demands for coal, supply the Allies, and have suffi- 
cient coal for export to neutral countries in return for obvious 
necessities." Hence the inclusion of underground workers in the 
"barred" classes. Transport difficulties had, also, been serious. 
Hence, the taking over by the Government on Dec. 1 of the Coal 
mines and the temporary solution of some serious labour troubles. 
Hence, also, the commandeering, a little later, of private railway 
waggons for public service. 

War charities, gifts, allowances, during these years were won- 
derful in amount and in organization. There seemed plenty of 
money available the wealthy classes lived less luxuriously, the 
poorer classes made more money, the War Savings Committee was 
constantly at work, the appeals to patriotism were unceasing. There 
was, of course, still much extravagance and self-indulgence but 
upon the whole the response was splendid, with an estimated 300 
million dollars contributed by the public to these special calls, while 
also taking thousands of millions in War loans and paying in- 
creased taxes in every direction. One Fund is typical of many 
the Prince of Wales' National Relief Fund which collected up to 
Dec. 31st, 1916, 6,020,204 or $30,000,000 ; another was the London 
Times' Red Cross and Order of St. John Fund, which started with 
$1,000,000 on Sept. 22, 1914, and on Nov. 15, 1916, stood at $25,- 
400,000, and on Dec. 29 at $28,700,000. The "Our Day" Red Cross 
collection, in which various parts of the Empire joined during 
October, brought in $2,500,000 to which H.M. the King gave 
$25,000, J. P. Morgan of New York $50,000. Of the other Funds 
there were many one being an Emergency Fund started by the 
Quakers to "aid innocent Alien enemies in Great Britain" which 
was stated to be the only one of the kind in existence. There were 
at least 50 Funds calling for public support and receiving it. 

Meanwhile the country was being dotted over with all kinds of 
Hospitals wounded and convalescent, Colonial and British. 
Money and houses and parks and voluntary nursing were given 
generously. An illustration of the large needs of these institutions 
was the appeal of the Charing Cross Hospital in Surrey during 
August for 80,000. In France the Royal Army Medical Corps 
and British Hospitals were everywhere with a result of rapid 
recovery from wounds and a general good-health unprecedented in 


war. Sir William Osier stated in an interview (Mar. 15) that "the 
handling of the sick and wounded by all the Allied nations has been 
extraordinary from the start. ' ' The fact that nearly all the fighting 
had been done in thickly populated country, highly cultivated and 
thoroughly infected with septic germs had made the problem very 
difficult. In the result, however, there was practically no dysentery, 
typhoid or cholera amongst the Allies on the Western front ; in the 
American-Spanish war there had been 20,000 typhoid cases 
amongst 100,000 men and in the American Civil War 29,336 
deaths from this cause in the Northern Armies. 

Under the new system and, similarly in the Dominion Services, 
the field ambulances consisted not only of stretcher-bearers to carry 
the men back of the lines, but were in themselves small temporary 
hospitals for minor cases. Behind them were the Casualty clear- 
ing stations or temporary stations for the wounded, then came 
permanent hospitals, where operations that could not be delayed 
were performed. Early in 1916 a dearth of medical men became 
noticeable and a movement, headed by Lord Derby, was started 
to mobilize doctors. In June Sir Alfred Keogh issued an appeal 
to the physicians to do this voluntarily, pointed out that 12,000 
already were with the Army and 4,000 more were called for with 
only 30,000 all-told upon the Medical register. Meanwhile all kinds 
of humanizing influences were at work in factories and public 
employments; sanitation was improved in England and, at the 
Front, its efficiency was remarkable, while Governmental influences, 
special legislation and social organizations were hard at work to 
check in London the evil diseases which are always rife where 
large bodies of soldiers gather. 

The British ' ^ke wor ^ an ^ place of the British Navy in this 
Navy and Army world-war were as wide as the sweep of the seas ; as 
in the war: effective as brains and experience, great ships and 
submarines and ma ny of them, splendid sailors and absolute national 
confidence and support, could make them. In only 
one respect was there question the diplomatic difficulties, the neu- 
tral protests, which had made the blockade of Germany during 
1915 not as forceful or complete as it should have been. Otherwise 
the work of the Navy was wonderful. 

The silence of those shadowy, sombre ships patrolling stormy 
seas, covered conditions which the neutral world took long to 
fully recognize success in a gigantic pressure upon German life 
and trade, business and morale; success in an omniscient watch- 
fulness over enemy ships passing along the ocean highways; suc- 
cess in two terrific campaigns of unknown detail against the 
submarine; success in guarding the transport of millions of sol- 
diers to France without the loss of a man, and to many other parts 
of the world with trivial losses; success in guarding the shores of 
Britain and, up to the close of 1916, in keeping the seas reasonably 
clear of the great new war monster which German skill had created ; 
success in the absolute destruction of German sea-trade, the pro- 
tection of an increased British trade and the tying up of German 
shipping with the practical internment of the second greatest fleet 


in the world a fleet which had cost Germany 1,500 millions of 
dollars; success in controlling the English channel and North Sea, 
protecting the shores of France, helping Russia in the Baltic, or 
the White Sea, or the Persian Gulf, carrying 2,000,000 troops to all 
parts of the world; success in guarding the Suez Canal route for 
commerce, holding Greece from the German side, enabling the 
United States to become a great factory and granary for the Allies. 

To these 4,000 sentinels of the deep, which in varied degrees of 
power and size patrolled the world's waters, guarded the trade 
routes, convoyed countless shipping, hunted for submarines, inter- 
cepted and examined an average of 80 neutral ships every week, no 
tribute could be too high from those whose lives, liberties and inter- 
ests were thus safe-guarded. From the 350,000 officers and men 
of the Navy in all parts of the world, but especially in home waters, 
the wearing monotony, the weary waiting, the prolonged nerve- 
strain of that ceaseless watch in the North Sea took a silent toll of 
heart and body. In the four corners of the ocean-world the British 
fleet stood for a stern courtesy and integrity of action which in- 
jured no one in person and carried only the absolute minimum of 
inconvenience in business, while asserting a supremacy of power 
which eventually was accepted by the whole world. It was war 
carried on like the Knights of old with chivalry toward the weak 
and courage toward the strong. It was the exact opposite of the 
German system with its raids upon defenceless coast towns of Eng- 
land, its strewing of the open seas with floating mines, its torpedo- 
ing and sinking of passenger boats and fishing craft, its shelling of 
defenceless crews or the throwing of passengers into open boats 
on stormy seas. 

What this British command of the sea meant, was illustrated 
in another way by the statement in New York (Apr. 24) of Emile 
Lesage that in a journey around the world he had not met one 
German fellow-traveller ! As to trade the situation was not hard to 
imagine had German cruisers been free of the seas when one chance 
raider could destroy 20 British merchant ships before it was caught. 
As to conditions associated with the Navy T. J. McNamara, Secre- 
tary of the Admiralty, stated in March that there were from 600,- 
000 to 900,000 persons engaged on ship construction and repairs 
in the Royal dockyards and naval establishments, who thus con- 
tributed to the maintenance and fighting efficiency of the Fleets. 
What this British labour meant is seen in the fact that despite all 
losses including those of the Battle of Jutland, Mr. Balfour was 
able to say at Glasgow on Sept. 5 that ' ' since the War broke out the 
Fleet has not only increased absolutely in numbers, in power, and 
in efficiency, but to the best of my belief, as compared with the 
capital ships of our opponents, it has increased relatively also. 
If we were strong in capital ships at the beginning of the War we 
are yet stronger now. If we were well provided with cruisers and 
destroyers at the beginning of the War there is absolutely no com- 
parison between our strength at that time and our strength now." 

The Battle of Jutland, or Skagger Rack as the Germans called 
it, was an extraordinary victory one which was announced in the 
press of the world on the following day, with characteristic Ger- 



man prevision and unscrupulous statement, as a great British dis- 
aster. The British Admiralty took its time to obtain and announce 
the exact facts ; when it did so the hostile or indifferent or ignorant 
part of all nations was inclined to consider the statements as ex- 
planatory, as excuses, as a covering up of real defeat. First im- 
pressions are powerful and this first impression held its place 
amongst the historic incidents of the War. In these early despatches 
the British admitted losses were over 14 ships of 100,000 tons and 
6,000 sailors; German admitted losses were about 14,000 tons and 
a few hundred men. Details cannot be given here but it was the 
greatest Naval battle in history and was fought off the coast of Den- 
mark with freedom in the North Sea and escape from Kiel as the 
German objective ; the holding of this great Fleet in control, driv- 
ing it back to its base, preventing escape of cruisers or raiding 
vessels, and destroying as many ships as possible, as the British 

This was on May 31 and only gradually did the full report of 
the struggle sift into the intelligence of the world. Admiral Sir 
David Beatty, who commanded the advance squadron that held up 
the great German fleet until the main British ships could come upon 
the scene, said to the officers and men of the Tiger, Princess Royal 
and Lion on their return to the base not made public until June 
10 that "you can take it from me now that the damage we in- 
flicted on the Germans was far greater than that which they 
inflicted on us. They lost two battleships and two battle-cruisers 
of the most modern type, including the Lutzow, four light cruisers 
and so many destroyers that we have not managed to count them." 
The strategy of the engagement was thus described by Admiral 
Sir Cyprian Bridge (July 7) : 

It was a brilliant achievement for the British Navy. To put the situation 
succinctly, it may be said that before the battle the British fleet at sea was 
divided into two parts, one force under Sir David Beatty, and the other, the 
Battle Fleet, or main body, under the commander-in-chief, Sir John Jellicoe. 
This distribution of the ships was the dominating factor in bringing on the 
battle. Had the whole British fleet been massed and close together it is more 
than likely that no battle would have occurred at all. With the British fleet 
divided the Germans were encouraged to give battle to Beatty. Sir David, 
determined to get them into a fight, arranged the management of the action 
so that he could draw them nearer and near to Jellicoe 's main body, which 
was coming up in support. He thus greatly shortened the interval between 
the first collision and eventual participation in the action by Jellicoe 's battle- 
ships. . . . The gunnery of the British fleet was the more accurate of the 
two. This was due not only to very thorough training, but also to the cool 
and deliberate manner in which the guns were fired. The Germans, in the 
earlier stages of the battle, fired more rapidly but after their early shots they 
showed no accuracy of aim. As to the whole engagement, after reading 
Admiral Jellicoe 's report, I can say, unhesitatingly, that it was one of the most 
decisive the British ever fought. In fact, there are only three others, to my 
mind, which outvie it in respect to strategy and final result. These are Lord 
Hawke's battle of Quiberon, Nelson's battle of the Nile, and Nelson's Trafal- 

Admiral Jellicoe 's published dispatch (July 6) finally gave 
the full facts and recorded 6 British battleships of 104,700 tons 
and 8 destroyers lost ; 10 German battleships and cruisers of uncer- 
tain tonnage with 9 destroyers lost. To Sir John Jellicoe and his 


Fleet the Admiralty issued a letter of thanks describing this first 
fleet action of the War as "severely punishing" an enemy who had 
to withdraw to his ports and as having proved the gallantry and 
devotion of officers and crews, showed a handling of ships with 
skill and determination, and exhibited engineering zeal and effi- 
ciency with naval commanders proving initiative and tactical sub- 
ordination. At the close of the year Admiral Jellicoe became First 
Sea Lord of the Admiralty and Admiral Beatty was placed in com- 
mand of the Grand Fleet. Meanwhile every kind of editorial, 
serious or regretful, joyful or apologetic, as the case might be, had 
appeared in the United States press. In Canada and Australia 
and South Africa, excuses were abundant but not even a dim 
prescience that it was a great victory in strategy, conduct and 
enemy losses. The news was contradicted in a day or so but, of 
course, many erroneous impressions remained. On Aug. 4 follow- 
ing Mr. Balfour as 1st Civil Lord of the Admiralty issued a mes- 
sage reviewing the war situation. To the Battle of Jutland he 
referred as follows : 

Before Jutland, as after it, the German fleet was imprisoned; the battle 
was an attempt to break the bars and burst the confining gates; it failed 
and with its failure the German High Seas Fleet sank again into impotence. 
. . . The object of a naval battle is to obtain the command of the sea, or 
to keep it, and it is certain that Germany has not obtained it, and that we 
have not lost it. The tests of this assertion are easy to apply. Has the grip 
of the British blockade relaxed since May 31? 

The first great function of the Navy in 1916 was this holding 
of the seas against, and free from, the German fleets and it was 
duly accomplished; the second was to enforce and tighten the 
blockade upon German trade and supplies; the third was to meet 
and defeat the submarine menace. In March, 1915, the blockade had 
commenced as a reply to the first submarine campaign; it was 
followed up in the creation by the Foreign Office of a series of 
Agreements with bodies of traders in countries contiguous to Ger- 
many, with a view to preventing things the enemy most needed 
from reaching him, in return for permission to ship him other 
articles of no value for munition purposes and of little value for 
nutrition. It was complicated by neutral pleas and threats and by 
British diplomatic courtesy in dealing with conditions admittedly 
difficult for neutral traders and countries; it resulted during the 
first year of operation in such evidences of efficiency as the reduc- 
tion of coal exports to the Scandinavian countries and Holland by 
1,700,000 tons, while Germany's supply, direct or through Bel- 
gium, was cut off to a total of 11,000,000 tons. On the other hand 
the Netherlands' import of oil-seed rose from 2,800 tons in 1913 
to 36,000 in 1915, British exports of palm-oil rose from 21,000 
cwt. to 162,000 cwt., Sweden and the Netherlands took seven times 
their usual quantity of raw cotton, British exports of cocoa 
destination not given rose from 15 to 61 million pounds and so 
on. Much public discussion followed with criticism of the Gov- 
ernment and the Admiralty and, more especially, the Foreign 
Office, for alleged lack of the stern, severe enforcement which the 


Navy could carry out if permitted. Early in 1916 the Government 
had issued an official summary of what had been done : 

1. German exports to oversea countries have been almost entirely stop- 
ped. Such exceptions as have been made are in cases where a refusal to allow 
the export of the goods would hurt the Neutral concerned without inflicting 
any injury upon Germany. 

2. All shipments to neutral countries adjacent to Germany are care- 
fully scrutinized with a view to the detection of a concealed enemy destina- 
tion. Wherever there is reasonable ground for suspecting such destination, 
the goods are placed in the Prize Court. Doubtful consignments are de- 
tained until satisfactory guarantees are produced. 

3. Under agreements in force with bodies of representative merchants in 
several neutral countries adjacent to Germany, stringent guarantees are 
exacted from importers, and, so far as possible, all trade between the neutral 
country and Germany, whether arising overseas or in the neutral country itself, 
is restricted. 

4. By agreements with shipping lines and by a vigorous use of the power 
to refuse bunker coal, a large proportion of the neutral mercantile marine 
which carries on trade with Scandinavia and Holland has been induced to 
agree to conditions designed to prevent goods carried in these ships from reach- 
ing the enemy. 

5. Every effort is being made to introduce a system of rationing which 
will ensure that the neutral countries concerned only import such quantities of 
the articles specified as are normally imported for their own consumption. 

During 1916 still more vigorous action was taken, neutrals 
were more closely watched, the United States more firmly treated. 
The increased effectiveness which followed was slow in coming, 
however, and the Northcliffe press in England found much to 
criticize. As an illustration of the leakages it may be said that on 
Jan. 26 Lord Devonport asked the Government whether they were 
aware that large and frequent shipments of iron ore and other 
metals were arriving at Dutch ports and stated that in 16 months, 
to the end of 1915, cargoes had arrived at Rotterdam bringing ore to 
a total of 1,500,000 tons. ' * The ore had come in an unbroken stream, 
and, strange to say, was allowed to pass through Holland into Ger- 
many without interference, or inquiry, or protest on the part of 
our Government. There was no doubt that it did pass into Ger- 
many. ' ' In the Commons on the same day Mr. Shirley Benn moved 
that "this House, having noted the volume of the imports into 
neutral countries, bordering on enemy territory, of goods essential 
to the enemy for the prosecution of the War, urges the Govern- 
ment to enforce as effective a blockade as" possible." 

Sir Edward Grey admitted leakages but said everything pos- 
sible was being done and the motion did not come to a vote. A 
stormy meeting in London on Feb. 14 was addressed by Lord 
Devonport, T. Gibson Bowles and others and the former declared 
that "we are not maintaining, indeed we have not established, a 
thorough blockade, such as the strength of our sea-power justifies 
and having regard to our legitimate legal rights under International 
law." On Feb. 22 the Government announced in the Lords, and 
in response to a proposed Resolution by Lord Sydenham asking 
for more effective measures, that the transfer of all matters relat- 
ing to the Blockade to a new Cabinet Minister Lord Robert Cecil 
had been arranged. From this time onwards conditions gradually 
improved and the pressure on Germany steadily increased with 


results obvious in letters, newspapers, captured documents and 
public utterances. 

The Submarine policy against Britain was effective mainly 
where it broke every International law or precedent in making 
direct war on civilians and indirect war on neutrals. It was not 
seriously injurious to the battleships and fleets of Britain or even 
to armed merchant vessels, but in certain periods of the year, before 
British measures had time to dispose of the menace, it did sink a 
lot of shipping. Up to Dec. 31, 1915, 40 unarmed British steam 
vessels and 14 unarmed neutrals were torpedoed and sunk without 
warning and hundreds of others with warning; following this 
many of the merchant ships were armed. In March, 1916, the 
British Government issued official instructions in this respect 
which claimed "(1) the right of the crew of a merchant vessel 
forcibly to resist visit and search, and to fight in self-defence, as 
well recognized in International law, and expressly admitted by 
the German prize regulations issued in June, 1914." The arm- 
ament was supplied solely for the purpose of resisting attack by 
an armed vessel of the enemy and "must not be used for any 
other purpose whatsoever." 

Early in 1916 the losses of submarines compelled a slackening 
in the German warfare and it was generally believed that from 80 
to 100 had been captured or destroyed, though it was British policy 
not to make any announcement further than the declaration by 
Lord R. Cecil on Apr. 7 that "Germany slackened her Submarine 
warfare for some time when the operations of the British Navy 
deprived her of the necessary number of submarines." As to 
British shipping affected, the loss at the close of 1915 had been 741 
steamers and 334 sailing ships with a tonnage of 1,534,901 ; the 
additions to the British register during this period were 807 vessels 
of 1,523,750 tons. At the beginning of 1916 there were 420 British 
merchant vessels under construction with an aggregate gross ton- 
nage of 1,627,316; on Sept. 30 following 469 vessels were being 
built with a tonnage of 1,789,054. This result was achieved in 
addition to immense naval construction, proceeding in haste, spe- 
cial constructive work of a secret nature in connection with sub- 
marines, and the building of super-dreadnaughts and "mystery 
ships." At the close of the year ending June 30, 1916, the situa- 
tion in merchant ships compared with 1915 (Lloyd's Register of 
Shipping) was as follows: 

June 30, 1916 


British Other Countries Total 

No. Tonnage No. Tonnage No. Tonnage 

Iron and Steel ..Steam 5,822 13,322,424 3,405 8,737,324 9,227 22,059,748 

Iron and Steel ..Sail 203 229,805 518 889,112 721 1,118,917 

Wood and com- 
posite Steam and Sail. 81 10,948 3 525 84 11,473 

Total 6,106 13,563,177 3,926 9,626,961 10,032 23,190,138 

June 30, 1915 . . Description British Other Countries Total 

No. Tonnage No. Tonnage No. Tonnaee 

Iron and Steel ..Steam 5,624 13,073,336 4,008 9,981,172 9,632 22,924,508 

Iron and Steel ..Sail 186 214,545 626 1,022,180 812 1,236,725 

Wood and com- 
posite Steam and Sail. 89 12,067 9 1,577 98 13,644 

Total 5,899 13,299,943 4,643 11,004,929 10,542 24,174,877 


There had been a net loss, therefore, in British and Neutral 
shipping together of nearly 1,000,000 tons but a positive gain in 
British tonnage. Another period of Submarine activity followed 
but with not very different net results and, on Nov. 16, Winston 
Churchill stated in the Commons that ' ' at the beginning of the War 
Great Britain had over 18,000,000 tons in ships exceeding 1,000 
tons. She has almost the same amount to-day." In a later state- 
ment Lord Curzon (Feb. 13, 1917) confirmed this statement deal- 
ing, however, with ships of 1,600 tons and a total of 16,000,000. 
The net result, therefore, of Germany's ruthless policy and 
practice had been to prevent the increase in British and neutral 
shipping necessary to meet increased war requirements. Up 
to Mar. 23, 1916, Admiral Sir Cyprian Bridge estimated 
the total loss of British steam shipping as 5 per cent, in 
numbers and 6 per cent, in tonnage. As the destroyed British 
tonnage was being steadily replaced it was obvious that the 
world shortage in shipping was not due to Submarine activities but 
to other causes. The Liverpool Journal of Commerce in November 
estimated the British shortage at 4,000,000 tons and apportioned 
the causes as follows: (1) Hindrance of new construction 1,700,000 
gross tons, (2) War losses 1,520,000 tons, and (3) excessive de- 
preciation 1,000,000 tons. Government control covered nine out 
of every ten merchant ships and this control used 57 per cent, of 
them for War purposes. According to figures stated by Lord 
Beresford at the close of the year the aggregate tonnage lost by the 
British during the War was 4,000,000, while 3,200,000 tons had 
been launched to replace the losses. The net loss, therefore, was 
800,000 tons, or 5 per cent, of the gross, and under special build- 
ing plans then being carried out it was expected that 5,000,000 tons 
would be completed within a year. 

The Submarine menace proved, however, very clearly that with- 
out British sea-power during these years no united Allied action 
would have been possible ; there could have been no British offensive 
in France, or British Armies there, or in Egypt, Persia, Gallipoli 
or Salonika; there would have been no aid in supplies and muni- 
tions to Russia, or Italy, or France; no trade in foodstuffs and 
munitions between the United States and England. The under- 
water craft had steadily improved in effectiveness, in speed, and in 
distance capacity. The net result of it all was the destruction of a 
small percentage of British shipping and a large one of neutral 
shipping apart from the United States; the introduction of a 
new terror of the sea and a new barbarism in war; the enforced 
recognition by the world of the services of the British Navy to 
civilization and humanity. 

The detailed campaigns and battles of the British Army in 1916 
cannot be dealt with here ; a general picture may be sketched into 
the narrative and that is all. That there should be a British Army 
of 5,000,000 volunteer soldiers was, in itself, one of the great ele- 
ments in the War ; that it should be fighting in France and Greece 
and Mesopotamia and Egypt and the borders of Palestine, were 


incidents in the result; that the Kaiser's "contemptible little 
army," which defied his hosts at Mons, should have grown into 
armies which could meet and defeat the finest products of Prus- 
sian science, skill and life-long training, was a tremendous fact in 
the struggle. The Gallipoli campaign had come and gone and been 
replaced in 1916 by the Salonika preparations for an offensive 
which, in the main, was delayed during the entire year; the cam- 
paign of the Indian Expeditionary Force against Kut, with Bagdad 
as the objective, was held up by the capture of General Towns- 
hend's Army of 2,970 British troops and 6,000 Indian soldiers 
on Apr. 29, but at the close of .1916 this force was replaced by an 
Army which threatened to re-capture the place and had defeated 
the Turks in several engagements; the Egyptian forces were suc- 
cessful in guarding the Suez Canal against all injury, in protect- 
ing the shipping passing through it, and in defeating various tribal 
raids and Turkish tentative efforts. f 

Of the Army on the Western front many volumes were and 
will be written. At the beginning of the year the British held 90 
miles and along this line, according to Major-General F. B. Maur- 
ice, Director of Military Operations at the War Office, there were 
as many Germans facing the British troops as there were on the 
230 miles extending from Rheims to the Swiss border. Both 
climatic and ground conditions were much worse in this section of 
the front. Later in the year the British holdings on the front were 
further extended with the fact, generally known, of 1,500,000 men 
available. Back of this line were 3,000 miles of railway built by 
British labour which ensured a perfect supply of munitions, easy 
withdrawal of wounded, and the rapid movement of troops. Dur- 
ing the Battle of Verdun British troops relieved one of the French 
Armies in Artois supposed to be a most difficult sector and from 
Loos to the Somme dealt effective trench-warfare blows and occu- 
pied and held such places as the Labyrinth which French valour 
had already captured. To them Le Bulletin des Armees paid this 
tribute early in May : ' ' The list of the successes and valorous traits 
of the British Army is a long one. It is made up of daily combats 
during twenty months of war, thousands of heroic or brilliant 
episodes, victories like that of Loos, and successes like those recently 
scored on the Ypres-Commines canal and at St. Eloi." The Com- 
mander-in-Chief during 1916 was Lieut.-General Sir Douglas Haig 
who, in December, was made a Field Marshal, and under him were 
Major-Gen. Leonard Kiggell, Chief of the General Staff, Sir 
Charles Monro, Sir Archibald Murray, Sir Henry Rawlinson, Sir 
E. H. H. Allenby, Sir Eobert Gough and other Generals. There 
were many small engagements which would in other wars have 
been deemed great battles, but the overshadowing British conflict 
of the year was that of the Somme. In his despatch of Dec. 23 
General Haig gave the following reasons for this offensive : 

By the end of May the pressure of the enemy on the Italian front had 
assumed such serious proportions that the Eussian campaign was opened early 
in June, and the brilliant successes gained by our Allies against the Austrians 
at once caused a movement of German troops from the Western to the Eastern 


front. This, however, did not lessen the pressure on Verdun. The heroic 
defence of our French Allies had already gained many weeks of inestimable 
value and had caused the enemy very heavy losses; but the strain continued 
to increase. In view, therefore, of the situation in the various theatres of war, 
it was eventually agreed between General Joffre and myself that the combined 
French and British offensive should not be postponed beyond the end of June. 
The object of that offensive was threefold: 

(1) To relieve the pressure on Verdun. 

(2) To assist our Allies in the other theatres of War by stopping any 
further transfer of German troops from the Western front. 

(3) To wear down the strength of the forces opposed to us. 

Only the briefest reference can be made to the details of the 
prolonged Battle which followed and lasted from July 1 into 
November. It included amongst the more notable captures the 
Liepsic Salient, Montaubau and Mametz, Fricourt, La Boisselle, 
Contalmaison, Ovillers, Trones Wood and High Wood, Bazentin, 
Guillemont, Delville Wood, Longueval, Poziers and Thiepval, 
Ginchy, Flers and Martyipuich, Raucourt, Morval and Combles, the 
Regina Trench, St. Pierre Devion, Beaucourt and Beaumont- 
Hamel. The two latter places were taken on Nov. 14 and marked 
the practical end of the Battle, or rather offensive action. Weather 
conditions had intervened frequently to prevent advances and 
they then terminated any large movement. Sir Douglas Haig in 
his Report declared that "the three main objects with which we 
had commenced our offensive in July had already been achieved at 
the date when this account closes. Verdun had been relieved; 
the main German forces had been held on the Western front ; and 
the enemy's strength had been very considerably worn down. Any 
one of these three results is in itself sufficient to justify the Somme 
Battle. The attainment of all three of them affords ample com- 
pensation for the splendid efforts of our troops and for the sacri- 
fices made by ourselves and our Allies. ' ' 

Mr. Lloyd George, Secretary of War, declared in the House on 
Aug. 22 of this Battle that ' ' it relieved the pressure on Verdun and 
prevented the enemy from pouring ,his forces into the Russian 
theatre to support the Austrians against General Brusiloff 's thrust. 
The German accounts of our losses on the Somme are ludicrously 
exaggerated. Our losses, though deplorable, have been relatively 
low as compared with those of the Germans. The French and our- 
selves have captured positions on the Somme front whence the 
course of the campaign is visible, and I think in the dim distance 
we can see the end." According to the most reliable estimates 
obtainable the first three months of this offensive on both its French 
and British sides captured over 600 guns, and put from 400,000 to 
500,000 of the enemy out of action. General Haig gave the total 
British captures as 38,000, including 800 officers, 514 machine guns, 
and 261 larger guns. For the four months of the struggle the New 
York Tribune estimated the British losses at 415,000. Mr. Bonar 
Law stated a little later that the French military authorities put 
the German losses at 690,000, while the Germans claimed tne Allied 
losses to be 800,000 men. During the conflict each of the places 


.entioned above was a huge fortress, above and below the ground, 
buttressed by concrete and built to defy every artillery or military 
attack which was deemed possible. Yet 400 miles of trenches were 
captured with 40 of their fortresses, of which some were more 
formidable than those of Liege or Namur, and were regarded by 
the Germans as impregnable. 

A word must be said here as to the famous ' ' Tank ' ' which first 
came into service at the Battle of the Somme. It was a huge, 
ungainly, powerful machine which rolled over and through all 
kinds of rough, chopped-up, trench-filled, ruin-covered ground as 
easily as a waggon across a lawn, strewing death as it went along 
and apparently immune to the force of any ordinary gun or pro- 
jectile. It was described as a triumph of British science and inven- 
tiveness, a combination of the ancient testudo and battering-ram 
with modern electrical force, a sort of ugly land iron-clad ship. 
It did much to win points of vantage and to injure German morale; 
it climbed over walls and lesser obstructions, it rammed houses and 
trees and larger walls and then climbed over the ruins, it crossed 
trenches and wallowed through vast muddy shell-holes, it was filled 
with engines, guns, ammunition and men. Credit for its invention 
was given chiefly to Lieut.-Col. E. D. Swinton of the General Staff 
in London ; Winston Churchill, then First Lord of the Admiralty, 
was said to have first taken up the idea; Americans claimed that 
the whole thing was an adaptation of the caterpillar tractor. 

Meanwhile, in the death of Field-Marshal Lord Kitchener, 
Secretary of State for War, by the sinking of H.M.S. Hampshire, 
west of the Orkneys on June 5, the Germans had won the equivalent 
of a great battle perhaps several of them. The genius of this 
master of organization, this maker of the greatest of British Armies, 
was about to be placed at the service of Russia and with such enor- 
mous material in man-power available no one can estimate the pos- 
sible results. As it was, Dr. Carl Peters was not far wrong when 
he stated in the Hamburg Nachrichten that : " I regard as our great- 
est success in this War the drowning of Lord Kitchener. ' ' How it 
was that his ship had no consort and that one of England's great- 
est war assets was allowed to leave its shores in a solitary cruiser, 
was not explained, though a lot of explanation will be asked in 
the future. 

An important feature of the War in 1916, as in the preceding 
period, was the continued loss of men of noble families and historic 
names. The British aristocracy was being depleted in two ways 
one by the death of its members and sons, the other by the heavy 
war taxation and old-time death duties which wiped out the value 
of properties or compelled their sale and made necessary many 
transfers of exquisite or valuable art collections to newer families 
or United States connoisseurs. Many great estates were partly 
broken up, with Lord Crewe, Lord Arundell, Earl Howe, the Duke 
of Bedford, the Marquess of Huntley, Lord Tweedmouth and others 


selling properties of more or less importance. Amongst the sons of 
famous families who fell* during this year were the following : 

Lieut. Ivan Campbell Grandson of The 8th Duke of Argyll. 

Viscount Weymouth Son and Heir of .The Marquess of Bath. 

Lieut. Raymond Asquith Eldest Son of . . The Premier. 

Lieut. The Hon. G. J. Goschen Son and Heir of. Viscount Goschen. 

Lieut. The Hon. Harold Tennyson, E.N. Son of Lord Tennyson. 

Capt. Lord Desmond Fitzgerald Brother of The Duke of Leinster. 

Capt The Hon. R. S. A. Palmer . . . .Son of The Earl of Selborne. 

Capt. The Hon. J. C. W. Saville-Fol- 

jambe Brother of The Earl of Liverpool. 

Lieut.-Com. The Hon. H. C. R. Field- 
ing Son of The Earl of Denbigh. 

Capt. The Hon. J. B. Campbell Son and Heir of. Lord Stratheden and Campbell. 

Lieut.-Col. Arthur Lister Nephew of Lord Lister. 

Lieut. The Viscount Clive Son of The Earl of Powis. 

Lieut. The Hon. V. S. T. Harmsworth . Son of Lord Rothermere. 

General the Earl of Longford, Capt. Lord Petre and Major 
Lord Llangattock, were amongst the Peers killed, while Lord Tenny- 
son not only lost a son but a second son was wounded twice dur- 
ing the year. Up to Aug. 31, 1916, ten Peers had been killed, 18 
wounded and 11 taken prisoners; 240 altogether (out of about 
600 members of the House of Lords) were on active service and 28 
had been mentioned in despatches. The House of Commons record 
showed to the same date 215 members who were or had been at 
the Front, with 8 killed, 14 wounded and 4 prisoners of war, while 
31 had been mentioned in despatches. Debrett's list or roll of 
honour, at the close of 1916, of the sons of families mentioned in 
its pages, who had lost their lives, was 1,450 including one member 
of the Royal family, 14 peers, 21 baronets, 9 members of Parlia- 
ment, 200 knights, 114 sons of peers, 110 sons of baronets and 150 
sons of knights. 

So far as Great Britain and practical war-results were con- 
cerned the Zeppelin policy and raids up to the close of 1916 were 
distinct failures. While killing 127 non-combatants, 92 women and 
57 children up to Mar. 1 of this year they had served no military 
or strategical purpose though costing Germany large sums of 
money to build and maintain. It would seem, also, that no single 
detail in the War so helped recruiting and so strengthened Lord 
Kitchener's hand as did the 24 raids up to this time. As with 
Zeppelins so with enemy Aeroplane raids. On Feb. 22 it was stated 
in London that 80 Zeppelins were then in commission and that 25 
had, so far, been destroyed by the Allies. Meantime Britain had 
been making gigantic efforts to meet the situation, defend rural 
England and London itself, supply the Navy with Aeroplane scouts 
and give the Army eyes which would see the enemy-side and act, 
also, as guards over the British trenches. 

At first she was greatly behind others in this branch of de- 
fence and offence ; then matters slowly improved and, as young 
men of eagle sight and courage poured into the Royal Flying Corps 
and the War Office put its constructive energy into the effort, the 
progress became phenomenal. Speaking at Edinburgh on Sept. 
12, 1916, Lord Montagu dealt with the slowest part of this develop- 
ment when he pointed out that in 40 Zeppelin raids, with 120 
airships in defence, the first Zeppelin had only just been brought 

*NOTE. See also Page 123 in 1915 volume. 



down on British soil.* As to the Army it was different and the 
military branch in France had recently brought down 27 Fokkers 
the new and improved German machine and were then masters 
of the air. It was stated a little before this that during a specific 
period the Allies had crossed the German lines 1,227 times and the 
Germans had come back 310 times. The French had been the first 
to specialize in these machines and they had one of different 
qualities for each of varied kinds of work a line which the British 
quickly imitated. Then came air-squadrons and great air battles, 
or bombardment expeditions to German military centres with big 
planes carrying machine-guns and bombs. A special British devel- 
opment was the artillery observation machine equipped with wire- 
less and reporting the effect of artillery fire on enemy lines. Lieut. 
Floyd Faulkner, R.F.C., of Toronto, stated in New York on Dec. 
31 that: 

The machines used on the battle-front are much in advance of any used 
over here. A new machine, whose name may not be mentioned, makes 138 
miles an hour and is only arriving at the Front now. It can ascend straight 
up without banking, and has reached 15,000 feet in seven and a half minutes. 
This makes it the ideal machine for Zeppelin work, as it can get height quickly 
enough to catch the dirigibles. It is the greatest fighting machine in the 
world, and will guarantee that we maintain the supremacy of the air, so neces- 
sary in this war. 

Meanwhile there had been much discussion in England over 
the failure of the Aerial Service, up to the middle of the year, in 
eliminating the Zeppelin. It was forgotten that British attacks 
and skill in defence, if they did not capture or destroy the enemy, 
did drive the Zeppelins away, prevent serious damage and save 
the historic buildings, great munition plants and famous cities of 
the country. An Air Board had been established on May 24 with 
Lord Curzon as President, and Lord Sydenham, Admirals Tudor 
and Vaughan-Lee, Generals Sir D. Henderson and Brancfeer, Major 
Baird, M.P., as members. It was to think out and formulate a 
policy of defence and took the place of a Committee which had 
little real power. Difficulties between the military and naval wings 
of the service still continued, however, and it was not till the lat- 
ter part of the year that organization, initiation, construction and 
training of men had combined to evolve a wonderfully complete 
and effective system, which between June 1 and Dec. 1 resulted 
in the destruction of 666 German machines compared with the loss 
of 203 British and 198 French. In December, 1916, Lord Cowdray 
of Midhurst became Chairman of the Air Board. 

Ireland has always been a difficult point in times 
Ireland and the O f British war ; it was a frequent source of interest 
Rebellion 6 in to Napoleon over a century ago. It was, however, 
Dublin hoped that years of conciliation, the evolution of loyal 

leaders, the certain coming of Home Rule, would, in 
1914-16, have worked very different results. Germany thought 

*NOTB. Prof. J. C. McLennan of Toronto on his return from England stated (Nov. 
17) that "we have now in the north of Scotland a factory where dirigibles can be manu- 
factured that will dispose of the German Zeppelins. They were used when the last two 
German craft were brought down with a special kind of bullet." 



otherwise and, as it turned out, Ireland was the one section of the 
British Empire which, in some part, realized the expectations of 
German leaders. As it was put in a pamphlet supposed to be 
written by Count Zu Reventlow and secretly circulated amongst 
Irishmen and other assumed enemies of England: ''Britain's 
maritime supremacy cannot be destroyed until Ireland is a free 
country. So long 'as Ireland remains a British Colony or, rather 
a British fortress Britain can at any time shut off the whole of 
Northern and Eastern Europe from all access to the ocean even 
as by means of Gibraltar, Port Said, and Aden she can close the 
Mediterranean. Ireland is the key of the Atlantic. Release Ire- 
land from bondage and the Atlantic is at once opened up to 

To succeed in this aspiration the Germans depended upon (1) 
underground discontent and real anti-British sentiment; (2) econ- 
omic conditions which, though better than ever before in rural 
Ireland, were not so good in centres like Dublin; (3) organizations 
such as the Sinn Feiners who were allowed by mistaken British 
conciliators to burrow their way to a strength and audacity far 
greater than was supposed possible. Sinn Fein owed its origin to a 
pamphlet published in 1904 by Arthur Griffith, a journalist, which 
urged Irish independence based upon the experience of Hungary. 
Its work at first was quietly educative with the "intellectuals" as 
the dominant spirits and a certain association with the Clan-na-Gael 
and other Irish- American Societies. Then came the industrial trou- 
bles of 1913, the forming of the Citizen Army by James Connolly, 
and that of the Irish National Volunteers by the Sinn Feiners and 
others the latter numbering in 1914, 65,000. Following Mr. Red- 
mond's advocacy of recruiting in September, 1915, the Sinn Fein- 
ers had broken away from the more moderate majority and formed 
the Irish Volunteers which soon numbered 13,000. 

Augustine Birrell, Secretary for Ireland at this time, was a 
man quite unfitted for the post a man of literature, a student, a 
philosopher with his head in the clouds, a dreamer of peaceful 
dreams, a believer in the best side of human nature. There had 
been many signs and portents of storm during 1915; disloyal 
papers were printed and suppressed and revived again under 
other names, or else allowed to run their way without interference ; 
speeches were permitted which in time of war were simply trea- 
son; efforts to prevent recruiting and to misrepresent war issues 
and conditions were allowed to pass as of no consequence. There 
was much distress in Dublin poor pay and poor housing and poor 
living but nothing was done, perhaps at such a time little could be 
done, to remedy it. 

Meanwhile Larkin, the Labour demagogue, embodied these 
miseries and discontents, Connolly, once a Labour organizer in 
Scotland and the Countess Markieviecz, the clever Irish wife of 
a Polish youth, were his chief followers; the Irish Review was the 
centre of the little band of ' ' Intellectuals, ' ' poets, dreamers, and so- 

*NOTK. From extracts in New York World and London Times, Jan. 23, 1916. 


led patriots, to whom rebellion was an ideal and force, in this 
connection, an influence for freedom ; back of them all was Devory, 
an Irish-American, working with money and supplies from the 
United States, and Sir Roger Casement in Germany working for 
and expecting German military aid in the creation of a real insur- 
rection. The sentiment beneath the movement was that of the 
Gaelic Sinn Fein "Ourselves alone." As afterwards appeared 
plotting also proceeded amongst Irish bot-heads in the United 
States, led by the Irish World, and amongst German- Americans 
whose roots of action were in the German Embassy; they had the 
natural support of the German Government but it was given in a 
feeble and futile way. 

The Sinn Feiners were active and systematic in their policy. 
They obtained guns or rifles from somewhere, they did their best 
to undermine Mr. Redmond and the loyal Irish leaders, they urged 
the non-consumption of British goods, resisted recruiting and tore 
down posters, promoted small riots, vilified the British Army and 
Government unceasingly. Liberty Hall, the headquarters in Dublin, 
became an armoury for drilling and organizing an Army of free- 
dom, while the Countess Markieviecz had a printing press in her 
home and issued pro-German literature. Sir Maurice O'Connell, a 
descendant of the Irish Liberator, wrote The Times in March that 
recruiting was dead in Kerry and the villages "rotten with sedi- 
tion;" H. de Vere Stacpoole, the author, at the same time declared 
that wherever you went in Dublin you would find "seditious rags 
some printed openly, some in cellars, and all working on the same 
lines with a uniformity that is disturbing all sowing pro-German- 
ism and anti-Englishism, all playing into the hands of the enemy. ' ' 
Sinn Feiners, armed to the teeth, were everywhere guarding secret 
meetings and speaking in Gaelic. 

Sir Mathew Nathan, Under-Secretary for Ireland, frankly ad- 
mitted in his evidence, after the event, (May 18) that the strength 
and issues of the movement were known to the authorities that 
there were altogether 15,200 rebels 3,000 in Dublin alone, and 
12,000 in the provinces; that the plotters had many rifles and 
pistols at their disposal; that they were openly and constantly 
violating the statute requiring permits for the bearing of arms, and 
the statute against unlawful assembly, by openly and regularly 
drilling, instituting sham fights and training women to take care of 
wounded; that they were counting upon German aid and already 
had been supplied with a certain quantity of German arms; that 
three days before the Rebellion started information had been ob- 
tained that the rebels reckoned upon a combined German attack 
against Great Britain by land, sea and air; that large amounts of 
money were pouring into their coffers from America. 

Of these facts there was every proof before the Rebellion itself. 
The organ of the Sinn Feiners The Irish Volunteer on Feb. 26 
stated that "since the Howth landing there has never been a moment 
at which Headquarters was not in a position to supply guns for 
money down." On Mar. 17, 1,100 Irish Volunteers marched in 


procession at Cork, largely armed with rifles, while in Dublin they 
marched in similar fashion 1,600 strong. At a meeting in April 
Prof. John MacNeill, President of the Irish Volunteers, stated that 
"there was one thing they were determined on, that Irish Volun- 
teers meant armed Irish Volunteers. They were bound in honour, 
for the sake of their country, in order to protect her against an 
intolerable tyranny, to preserve their arms. The Irish Volunteers 
were now stronger in every way than they were 12 months ago ; they 
were becoming stronger every day. If the Government desired to 
suppress the Irish Volunteers there was one possible way to do it. 
Let them move their military forces against them. Let them call 
out the forces of the Crown and they will be met. ' ' 

As to the general situation Mr. Justice Kenny stated in Dublin 
on Apr. 11 that: "We read in our daily papers of anti-recruiting 
meetings, of the seizure of seditious literature, of the police in the 
execution of their right of search, being met and repulsed by men 
armed with rifles and bayonet ; of street disturbances in which fire- 
arms appear to be freely used, and you have in the public thor- 
oughfares of this city what I regard as the most serious attempt to 
paralyze the recruiting movement namely, the display of large 
and attractive posters outside shop doors which must necessarily 
have a most mischievous and deterrent influence on certain classes 
of the population." With such conditions some kind of an insur- 
rection was inevitable and that Mr. Birrell and his advisers would 
not see it and did not prevent it helped to make, one more tragic 
page in Irish history. On Apr. 20-21 an attempt was made to land 
arms and ammunition in Ireland by a vessel under the guise of a 
neutral merchant ship, but in reality a German auxiliary, in con- 
junction with a German submarine.* The auxiliary sank itself 
when approached by a British vessel and Sir Roger Casement 
escaped from the submarine and landed, only to be arrested a little 
later with one of his two companions. 

On Apr. 24, in Dublin, the rising was commenced by a large 
body of Sinn Feiners, armed and garbed in a sort of uniform, who 
occupied Stephen's Green, took forcible possession of the Post 
Office, seized the Ammunition magazine in Phoenix Park, cut the 
telegraph and telephone wires, occupied a number of houses, barri- 
caded the streets in the vicinity of Dublin Castle, captured the 
Four Courts and other important buildings, attacked the 3rd Royal 
Irish Regiment and held them up from relieving the Castle. The 
6th Reserve Cavalry Regiment was surrounded in Charles Street 
aiid besieged for 3i/ days until relieved. British troops were 
rushed in from various points, though less than 5,000 seem to have 
been available, but on the 28th, .when General Sir John Maxwell 
arrived to take command, the Castle was safe, the North Wall 
Docks protected, and the Custom House held, though the rebels 
held many other points of vantage due, it was afterwards stated, 
to the fact that armed bodies of civilians had been continually 
allowed to parade in, and march through, the streets of Dublin and 

*NoTB. Official Admiralty statement. 


throughout the country without interference, thus making it easy 
to spring a surprise when action was decided upon. 

During these days there had been many deaths, citizens killed 
on the streets, property looted and destroyed, disorder rampant. 
Snipers were everywhere and caused many casualties; in one of 
the struggles two priests helping the wounded were shot. Finally 
a cordon of troops was drawn around the Sackville Street district 
in which centred the insurrection ; several conflicts took place with 
severe casualties as many as 234 in one instance ; many buildings 
had to be burned down or destroyed by cannon and Liberty Hall 
itself bombarded until on Apr. 29 P. H. Pearse, the rebel leader, 
and the Countess Markieviecz, surrendered unconditionally and 
hundreds of others followed suit. 

In the course of this medley of conflict some mistakes were un- 
avoidable. The summary shooting of Sheehy-Skeffington was one and 
was made much of by the anti-British press and in the United 
States. His sympathy with the rebellion was not denied; the 
worst that can be said was that a British officer's nerves gave way 
during a crisis, and that an arbitrary and improper deed was done. 
General Maxwell, in a statement issued on May 19, declared that 
"as the troops moved along the street the rebels would escape by 
back doors and fire again from behind houses, necessitating the 
searching and occupying of every house. These rebels wore no 
uniforms, and a man who was shooting at a soldier one minute 
might, for all we knew, be walking quietly beside him in the street 
at another. ... It was impossible from Headquarters to exer- 
cise direct control of this sort of fighting because the telegraph and 
telephones were out of commission, and nearly everything had to 
be left to the troops on the spot. Possibly, unfortunate incidents, 
which we regret now, may have occurred." Careful investigation 
followed and the guilty officer was adjudged insane. 

By May 1st the trouble was over in Dublin. During the fight- 
ing great anxiety was caused by disquieting reports from other 
parts of Ireland, and chiefly from the Counties of Dublin, Meath, 
Louth, Galway, Wexford, Clare, and Kerry. Small risings did 
occur at Ardee and Swords and Lusk. In other places police posts 
were attacked, and to deal with these scattered outbreaks mobile 
columns were organized, each with an 18-pounder gun and an 
armoured car. Many arrests were made and arms were surrendered 
or seized. In Dublin 179 buildings altogether were destroyed and 
$9,000,000 of damage said to have been done and, according to Mr. 
Asquith in the Commons (May 11), the Military casualties were 
521 of whom 124 were killed, and the Civilian casualties, known 
at that date, were 794, of whom 180 were killed. 

Meanwhile, the men who were to suffer as leaders of the insurrec- 
tion had come out before the world in a Proclamation which had 
been distributed by Sinn Fein organizations throughout Ireland on 
Apr. 24. They were, in the main, typical of a class rare in most 
countries but not uncommon in Ireland emotional, sentimental, 
idealistic, and without practical knowledge or experience. Mac- 
Donagh was a poet of capacity but with signs of moral degenera- 


tion, Plunkett and Pearse and Stephens were in the circle of 
writers who made the Irish Review a centre of thought, and amongst 
whom were Maude Gonne, the advocate of an Irish Republic, Kuno 
Meyer, afterwards known for his German operations in the United 
States, W. B. Yeats, the genius of the Gaelic agitation, and T. M. 
Kettle, a loyalist who afterwards fell at the Front. The Proclama- 
tion was clearly the product of men who did not realize what they 
were doing; who recklessly sacrificed friends and followers and 
innocent or ignorant citizens upon an altar of ancient animosities; 
who had so long been nurturing these feelings in private or cultivat- 
ing them in poetic or literary effusions as to have lost all mental 
ballast or sense of proportion; who seemed to know nothing of 
England 's power and Germany 's position of impotence in this con- 
nection ; who, therefore, easily allowed an ideal of impossible liberty 
to become the tool of an unscrupulous tyranny. The Proclamation 
follows in full and was addressed by ' ' The Provisional Government 
of the Irish Republic to the People of Ireland ' ? : 

Irishmen and Irishwomen. In the name of God and the dead generations 
from which she receives her old traditions of nationhood, Ireland, through us, 
summons her children to her flag and strikes for her freedom. Having organ- 
ized and trained her manhood through her secret revolutionary organization, 
the Irish Eepublican Brotherhood, and through her open military organization, 
the Irish Volunteers, and the Irish Citizen Army, having patiently perfected 
her discipline, having resolutely waited for the right moment to reveal itself, 
she now seizes that moment, and, supported by her exiled children in America 
and by gallant allies in Europe, but relying in the first on her own strength, 
she strikes in full confidence of victory. 

We declare the right of the people of Ireland to the ownership of Ireland 
and the unfettered control of Irish destinies to be sovereign and indefeasible. 
The long usurpation of that right by a foreign people and Government has not 
extinguished the right, nor can it ever be extinguished except by the destruc- 
tion of the Irish people. In every generation the Irish people have asserted 
their right to national freedom and sovereignty; six times during the past 300 
years have they asserted it in arms. Standing on that fundamental right, and 
again asserting it in arms in the face of the world, we hereby proclaim the Irish 
Republic as a sovereign independent State, and we pledge our lives and the 
lives of our comrades in arms to the cause of its Army, of its welfare and of 
its exaltation among the nations. 

The Irish Eepublic is entitled to, and hereby claims, the allegiance of 
every Irishman and Irishwoman. The Republic guarantees religious and civil 
property, equal rights and equal opportunities to all its citizens, and declares 
its resolve to pursue the happiness and prosperity of the whole nation and of 
all its parts, cherishing all the children of the nation equally and obliviously to 
the differences carefully fostered by an Alien Government which have divided a 
minority from the majority in the past. 

Until our arms have brought the opportune moment for the establishment 
of a permanent national Government representative of the whole people of 
Ireland and elected by the suffrages of all her men and women the Provisional 
Government here constituted will administer the civil and military affairs of 
the Republic in trust for the people. We place the Irish Republic under the 
protection of the Most High God, Whose blessing we invoke on our arms, and 
we pray that no one who serves that cause will dishonour it. In this supreme 
hour the Irish nation must by its valour and discipline, and by the readiness of 
its children to sacrifice themselves for the common good, prove itself worthy 
of the august destiny to which it is called. Signed on behalf of the Provisional 






All of the seven men who signed this document P. H. Pearse 
was the President of the so-called Irish Republic were promptly 
tried and executed and, to the considerable class in Ireland and 
amongst the Irish in the United States who did, undoubtedly, hate 
Great Britain, they became the martyrs of a great cause, the cen- 
tral figures in a tragic fight for freedom. Without direct associa- 
tion with this school of thought John Dillon embodied it in the 
Commons (May 16) when he described the Government in respect 
to these executions as " letting loose a river of blood." As to this 
John Healy, Editor of the Irish Times, who saw the whole emente, 
differed and declared on May 2 that " there must be no mistake 
about the uprising. It was brutal, bloody, savage business. It 
was marked by many cases of shocking and callous cruelty. Inno- 
cent civilians were butchered in cold blood. Unarmed policemen 
and soldiers were shot down. As the result of promiscuous looting 
and incendiarism one of the finest public buildings in Ireland, and 
the most important commercial centre of Dublin, are in ashes. The 
full toll of death will never be known." 

Up to May 23, following, 15 rebels were sentenced to death and 
executed, 70 were so sentenced but with commutation, 6 received 
penal servitude for life, including John MacNeill, and 90 others for 
a term of years, 21 had various terms of imprisonment awarded 
and 576 were interned but afterwards (December) released. Sir 
Roger Casement was tried at length for treason in time of war, 
every advantage and elaboration of detailed defence -was allowed 
him, he was found guilty and on June 29 sentenced to death and 
duly executed on Aug. 23 after being degraded from his order 
of Knighthood despite strong efforts by Bernard Shaw, United 
States sympathizers, the Manchester Guardian, Cardinal Logue 
and 43 representatives of Irish University and intellectual life. 
The London Times of the next day had an official statement on the 
subject : 

All the circumstances in the cause of Koger Casement were carefully and 
repeatedly considered by the Government before the decision was reached 
not to interfere with the sentence of the law. He was convicted and punished 
for treachery of the woist kind to the Empire he had served and as a willing 
agent of Germany. The Irish rebellion resulted in much loss of life, both 
among soldiers and civilians; Casement invoked and organized German 
assistance to the insurrection. In addition, though himself for many years 
a British official, he undertook the task of trying to induce soldiers of the 
British Army, prisoners in the hands of Germany, to forswear their oath of 
allegiance and join their country's enemies. Conclusive evidence has come 
into the hands of the Government since the trial that he had entered into an 
agreement with the German Government which explicitly provided that the 
brigade which he was trying to raise from among the Irish soldier prisoners 
might be employed in Egypt against the British Crown. Those among the 
Irish soldiers, prisoners in Germany, who resisted Casement's solicitations of 
disloyalty were subjected to treatment of exceptional cruelty by the Germans; 
some of them have since been exchanged as invalids and have died in this 
country, regarding Casement as their murderer. 

The immediate result of these events was to intensify local pre- 
judices against England, though the stern treatment meted out to 
the rebels may have done good for a time in controlling the wild 
or dangerous element of the population which, however, grew 


somewhat larger toward the close of the year. A certain school of 
thought was not reached by either pre-war conciliation or after- 
rebellion coercion of such was Dr. O'Dwyer, Bishop of Limerick, 
who was presented with the Freedom of that borough (Sept. 21), 
and in his reply said*: "We are a subject province. We are like 
Egypt, governed by English Satraps of an inferior kind, but in 
no sense are we constituents of the British Empire. . . . Sinn 
Fein is, in my judgment, the true principle, and alliance with Eng- 
lish politicians is the alliance of the lamb and the wolf ; and it is at 
this point precisely that I differ from the present political leaders, 
and believe that they have led, 'and are leading, the National cause 
to disaster." Other results were the stirring up of old-time dis- 
trust in England, the increase of Irish hostility to Britain- in 
America, the promotion of feeling elsewhere such as that in Aus- 
tralia which helped to defeat Conscription, So far, indeed, Ger- 
many had advanced its aims ; it seems hardly probable that a suc- 
cessful Revolution was hoped for. 

To the Irish- Americans of a certain type the Rebellion gave new 
opportunities. President Wilson was pressed to intervene on be- 
half of J. C. Lynch, a naturalized American who was one of the 
few instigators of the rising from the United States side who took 
a personal part, and whose death sentence, finally, was commuted; 
the United States Senate by a vote of 46 to 19 actually passed a 
Resolution (July 28) asking the British Government to "exercise 
clemency in the treatment of Irish prisoners;" on June 10 12,000 
Irishmen, and some Germans, met in New York to pay tribute to 
the executed rebels and the speakers included W. Bourke Cochran, 
well-known in Canadian Club circles, Representative Fitzgerald of 
Brooklyn, Banbridge Colby, Rev. A. A. Berle and J. A. O'Leary, 
President of the American Truth Society. 

Mr. 'Leary was interesting : ' ' When Christ died to redeem his 
fellow-man he became an American. When Patrick Pearse and 
his Irish Volunteers on Apr. 23, 1916, struck for the liberty of their 
native land they became Americans of the purest type." Mr. 
Cochran was still more so: "This meeting is a protest against 
barbarity without a parallel in the history of civilization. . . . 
The execution of the patriot Pearse and his followers is a monument 
to the treachery of the British Government and the cowardice of 
British soldiers. . . . Men quick to butcher unarmed men are 
always quick to flee from those who are armed." Meantime the 
Hearst newspapers were glorifying the rebellion and Mr. Hearst 
described Casement's speech in his trial as one of the noblest of 
human utterances, while Winsor McCay, a notable Cartoonist, com- 
pared this leader of a German movement in Ireland to George 

The question on every lip during the days of May following 
the rising was how far this flash of folly would affect Home Rule 
and Ireland's future. John E. Redmond, the Irish leader, whom 
Sinn Fein denounced so fiercely, had issued a statement on Apr. 28 

*NOTK. Cork Fre* Press, Sept. 23, 1916. 



expressing a first feeling of horror, discouragement and almost 
despair: "I asked myself whether Ireland, as so often before in 
her tragic history, was to dash the ciip of liberty from her lips; 
was the insanity of a small section of her people once again to 
turn all her marvellous victories of the last few years into irre- 
parable defeat." To J. C. Walsh of Ireland, a New York journal, 
came on May 1st a cable from Mr. Redmond as follows: "The at- 
tempt to torpedo Home Rule and the Irish party has failed. Dam- 
age has been done, life has been lost, but the ship has not been sunk. 
The whole thing was organized by those in Ireland and America 
who have always been irreconcilable enemies of Home Rule and of 
the Irish party. Though the hand of Germany was in the thing it 
was not so much sympathy for Germany as hatred for Home Rule, 
and of us, which was at the bottom of the movement. ' ' 

The Home Rule apparently desired by him in recent years meant 
conciliation in Ireland, co-operation with England, constitutional 
freedom properly safe-guarded, and for these reasons could not 
appeal to the dreamers and undisciplined minds of the Sinn Fein. 
T. P. O'Connor put the issue (May 6) as really favourable to Home 
Rule: "It brings out (1) the impossible weakness of the British 
Government of Ireland; (2) the mistake in refusing to give Mr. 
Redmond, through an Irish Parliament, executive responsibility 
for maintaining order in Ireland; and (3) the mistake in obstruc- 
tion from London to Mr. Redmond's Irish National Volunteers, 
who, if properly armed, would have prevented or made short work 
of this attempt." Following the suppression of the rising Mr. 
Redmond took action in trying to limit the number of executions 
and to avert any vengeance upon the promoters. On May 9 the 
Nationalist Party met and urged that no more executions should 
take place and martial law be at once abrogated. A Manifesto was 
also issued drawing the attention of Irishmen to the success of the 
Movement initiated by Butt and Parnell and to the great modern 
changes wrought in Ireland : 

Rack-rents, evictions, the rent office, the rent warmer, the bailiff, to a 
large extent the landlord, have disappeared from the life of Ireland. Two- 
thirds of the entire land of the country has passed into the hands of the 
people. The remaining third is in process of gradual transfer. . . . In 
addition, the worst-housed, worst-clothed, and worst-fed class in Europe have 
been transformed into the best-housed, most comfortable, and most independent 
body of labourers in the world. In the congested districts healthy houses have 
taken the place of miserable cabins, local government is in entire possession of 
the people, and the Parliamentary and municipal franchise has been reformed. 
The efficient administration of the Factory Acts and the rights of trade union- 
ism have been extended to Ireland, education has been enormously improved, 
and, lastly, Ireland has been enabled to share to the full in all the program 
of social reform. Old Age Pensions have brought comfort and hope to tens 
of thousands of old men and women. The National Insurance Act has given 
to the workers of Ireland the same guarantees as to those of England against 
illness, unemployment, sickness and disease. Finally, the Irish Party has 
achieved the last and the greatest of the objects of every Irish movement since 
the Union by placing on the Statute Book the greatest and largest measure of 
Irish self-government ever proposed and ever achieved. 

On May 11 Mr. Asquith went to Ireland, met the leaders and 
people and studied the situation on the spot, and a little later the 


Government appointed Lord Hardinge of Penshurst, Mr. Justice 
Shearman, and Sir MacKenzie Chalmers, as a Royal Commission 
to probe into the causes of the trouble. Mr. Birrell, upon his resig- 
nation (May 3), had publicly admitted his error in holding "an 
untrue estimate of the Sinn Fein movement not of its character, 
or the probable numbers of persons engaged in it, nor of the local- 
ities where it was most to be found, nor of its frequent disloyal- 
ties; but of the possibility of disturbances of the kind which have 
broken out, of the mode of fighting which has been pursued, and 
of the desperate folly displayed by the leaders and their dupes." 
The Commission's hearing of Lord Wimborne, Mr. Birrell and 
other officials revealed a bewildering lack of organized, efficient 

The Report was made public on July 3rd and acquitted Lord 
Wimborne, the Lord Lieutenant, of all blame he had resigned 
but was afterwards re-appointed; it stated that "there is always 
a section of opinion in that country bitterly opposed to British con- 
nection, and that in times of excitement this section can impose its 
sentiments on largely increased numbers of the people," and de- 
clared that "the main cause of the rebellion appears to be that 
lawlessness was allowed to grow up unchecked, and that Ireland 
for several years past had been administered on the principle that 
it was safer and more expedient to leave the law in abeyance if a 
collision with any faction of the Irish people could thereby be 
avoided." Mr. Birrell was distinctly blamed: "We are of the 
opinion that the Chief Secretary, as the administrative head of 
Your Majesty's Government in Ireland, primarily was responsible 
for the situation that was allowed to arise and the outbreak that- 
occurred. ' ' 

Following this came a vigorous attempt to settle the Irish ques- 
tion by bringing the suspended Home Rule Bill into immediate 
operation under certain compromise conditions. Mr. Lloyd George 
was asked to undertake the work of negotiation and settlement, and 
at the end of May began his work. The new Conciliator saw every- 
one of standing in the matter and used all his energy and enthus- 
iasm. He submitted to Mr. Redmond and Sir Edward Carson cer- 
tain proposals, and the two leaders went at once to Ireland to con- 
sult their supporters. The substance of the proposals were first 
made public after a meeting of the Irish Parliamentary Party held 
in Dublin on June 10. They were accepted by the Nationalists 
under Mr. Redmond and by the Ulster Unionists subject to Sir 
Edward Carson's approval of details. In concise terms they were 
as follows: 

(1) To bring the Home Rule Act into immediate operation. 

(2) To introduce at once an Amending Bill as a strictly War Emergency 
Act for the period of the War and a short specified interval after it. 

(3) During that period the Irish members to remain at Westminster in 
their full numbers. 

(4) During this War emergency period six Ulster counties to be left as 
at present under the Imperial Government. 

(5) Immediately after the War an Imperial Conference of representatives 
from all the Dominions of the Empire to be held to consider the future gov- 


eminent of the Empire, including the question of the government of Ireland. 
(6) Immediately after this Conference, and during the interval provided 
for by the War Emergency Act, the permanent settlement of all the outstand- 
ing problems to be proceeded with. 

Then something happened. Lords Balfour of Burleigh, Cromer, 
Halsbury, Midleton and Salisbury denounced the agreement as un- 
timely in the midst of war and Lord Selborne resigned from the 
Government; the Amending Bill was delayed and Mr. Asquith 
made it clear that the Government could not agree to the retention 
of the Irish members in the Imperial Parliament in undiminished 
numbers, after the next election, except to deal with any pro- 
posed alteration of the Home Rule Act or of the Amending Bill. 
Mr. Redmond's reply was that in these circumstances the Bill 
would be vigorously opposed by his party, and he failed to respond 
to Sir Edward Carson's appeal for a settlement which would give 
Nationalist Ireland a chance of winning over Ulster by good 
government. Mr. Asquith was constrained to state that he could 
not introduce any Bill about which the parties were not in sub- 
stantial agreement, and there the whole question was hung up. 

Recruiting in Ireland under all these conditions was, naturally, 
not good in 1916. Its population was 4,381,000 and of that 1,102,- 
000 was Protestant and, in the main, apart from these movements 
and uprisings. None-the-less the men of the North did not come 
forward in sufficient numbers to counter-balance the troubled 
South and much-harassed Dublin. On Jan. 10, in connection with 
the exclusion of Ireland from compulsory military service, it was 
stated in the Commons that the men between 19 and 41 years of 
age available for military service in the four Provinces of Ireland 
on Aug. 15, 1915, were approximately as follows: Leinster, 174,- 
597 ; Ulster, 169,489 ; Munster, 136,637 ; Connaught, 81,392 ; while 
up to Oct. 15 the official returns showed enlistments as follows: 
Leinster, 15,636; Ulster, 66,674; Munster, 21,079; other areas, 
21,412 a total of 562,115 men available and 124,801 enlisted. 

To an interviewer on Mar. 1 Mr. Redmond stated : ' ' At the pre- 
sent moment we have at the Front an entire Irish Army Corps, in 
addition to the old, historic Irish regiments which were in existence 
when the War commenced. I have made a careful inquiry into the 
number of Irishmen enlisting in Great Britain and find that of all 
ranks, in the English and Scotch regiments, there are, at the lowest 
possible estimate, few, if any, short of 200,000 Irishmen. Thus, it 
becomes apparent that we have with the colours, to-day, at least 
350,000 Irishmen, and if to these are added the 20 per cent., or 
even 50 per cent., of Irishmen in the Canadian, Australian and 
New Zealand contingents, we find that there can be no exaggera- 
tion in the statement that Ireland has given to the service of the 
Allies a full half -million men." Mr. Redmond made no bones as 
to his hostility to the Coalition Government and opposition to Con- 
scription. At Waterford on Oct. 6 he said: 

Since the War commenced the conduct of the Government towards this 
country has been marked by the most colossal ineptitude and want of sympathy 
and stupidity, so much so that their conduct would have chilled the confidence 


of any people, much less the people of Ireland. The whole of history has 
taught us how dangerous it is to trust English statesmen. . . . The Gov- 
ernment postponed the putting of the Home Eule Act on the statute-book 
until the Irish people were absolutely sick with disgust. They refused the 
offer of the National Volunteers; they did everything to show that they could 
not bring themselves to trust the Nationalists of Ireland; they cloaked and 
made little of Irish valour in the field, and then they formed a Government 
with Sir Edward Carson, by an extraordinary irony, as Attorney General. 
Finally, they suppressed the recent Eising with gross and panicky violence, they 
closed their ears to the plea for clemency, and now they have reconstituted 
Dublin Castle. 

As to Conscription its enforcement would be a scandal and 
cause unquestioned violence ; at the same time only 6,000 men, he 
noted, had enlisted since the Rising a period of five months. 
Meanwhile, Irish troops had greatly distinguished themselves at 
the Front, with Loos and Hulluch, Guillemont and Ginchy, as bril- 
liant spots of Irish colour in a mass of brave achievement. Major 
William Redmond, M.P., wrote from the trenches on Oct. 10 urg- 
ing Ireland to keep the Irish Division, "which has never lost a 
trench, ' ' in the field, to reinforce the gaps and save it as a national 
unit. In the Commons on Oct. 18 Mr. Redmond moved a Resolu- 
tion declaring that "the system of government at present main- 
tained in Ireland is inconsistent with the principle for which the 
Allies are fighting in Europe and has been mainly responsible for 
the recent unhappy events and for the present state of feeling in 
that country." It was lost by 303 to 106. 

In his speech the Irish leader stated that Ireland had 157,000 
men in the Army and 10,000 in the Navy, but that there was danger 
of the Irish battalions at the Front not being kept up to their full 
strength. "Personally I would do anything possible to avert that 
catastrophe. . . . Several of my colleagues are themselves in 
the Army. One who joined at the commencement of the War died 
in the service very soon after. An ex-colleague of ours, a bril- 
liant young Irishman, Prof. Kettle, died the other day on the 
Somme. At least 20 Irish Nationalist members have sons in action. 
One of my Hon. friends here has four sons in the Army. Two of 
my colleagues in this party have had their sons killed in this War. ' ' 
He wanted Ireland to do its full duty but he deprecated Govern- 
ment distrust, Ulster hostility and Tory politics. As to recruit- 
ing H. E. Lord Wimborne stated on Oct. 10 that before the War 
there were with the colours and reserves 34,822 Irish Catholics and 
16,224 Protestants; since mobilization 57,583 Catholics and 46,167 
Protestants had joined the Army from Ireland with 2,798 un- 
classed, or a total of 157,594. The following official statistics were 
published* on Nov. 13: 

Oct. 15, 1916 


Men of Mili- 
tary Age in 


Men con- Men Joined 
sidered since 
indispen- National 
sable Register 
79,214 14,922 
59,939 5,461 
46,409 4,165 

14,596 7,171 

Number of 


Estimated Men Joined 
Number since 
Available outbreak of 
for Service War 
45,205 66,674 
42,742 21,079 
30,818 15,636 

21,970 21,412 

D.M.P. area (es- 








*NoTB. Parliamentary Paper No. 8390. 


I I 

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This great Commonwealth of the Empire, with its 
Australia in population of 4,954,086 scattered chiefly along the 
Mr Hughes and coasts f a country which covered 2,974,581 square 
conscription miles, paid a response to the call of war which was 
excellent in numbers and splendid in the qualities of 
dash and courage and endurance. Late in 1916 there was slow- 
ness in recruiting but at the beginning of the year the troops sent 
to the Front Egypt, Mesopotamia and Gallipoli had totalled 
129,195; by Feb. 14 20,848 more men had gone and 60,000 troops 
were in camps of training getting ready for service; in addition 
to these and the 9,500 a month pledged for monthly reinforce- 
ments the Government had undertaken to raise another 50,000 men 
new units making a total of 300,000 men to be supplied by 
Tune, 1916. By Sept. 20 the total of voluntary enlistment was 
519,000 or about one in 15 of the population. On Oct. 1 all men in 
Lustralia between the ages of 21 and 35 were called to the colours 
ider the Home Defence Act ; but they could not be sent abroad on 
jtive service without approval by the people in a Referendum. 

The system of training was similar to that adopted in England 
id Preparatory Schools for officers were held at all Military 
ips though at first the training had been in State schools. A 
Central Flying School had, at the beginning of this year, been estab- 
ied for some time at Laverton with a training personnel of 28, 
aerodrome 700 acres in extent, and various necessary buildings. 
Squadron of the Australian Flying Corps 28 officers and 200 
)f other ranks was under training and a contingent of the Corps 
i ad already served in Mesopotamia. Action was taken with the 
dew to forming a large reserve force after the War and to keep 
ip the glorious traditions of the units by maintaining their iden- 
tity, and for this purpose Colonel the Hon. Kenneth MacKay, C.B., 
>f New South Wales, was appointed to formulate a scheme. In the 
latter of medical work 736 registered Australian practitioners out 
)f 2,400 were wholly engaged on military duty and many others 
irtly so, while the total of medical officers, staff nurses, sisters, 
mtists, etc., was 874 with 6,090 men or women in other ranks. 

As to Hospitals the principal one in England was at Harefield 
*ark with arrangements for treatment, also, in various British 
iospitals and 5,547 Australians under treatment at the beginning 
>f 1916. In Egypt special efforts had been made and there were 
that country and other Mediterranean points 3 Australian gen- 
ii hospitals, 15 others of different grades, 8 field ambulances, 4 
lorse ambulances and 2 hospital ships. In Australia itself there 
;re 37 war hospitals and convalescent or rest homes. The Royal 
[ilitary College was doing good service with 84 students from 
Australia and New Zealand in training at this time and 105 
graduates holding commissions on active service. 

The Royal Australian Naval College also had 87 cadets under 
training with 120 expected for the 1916 term. There were 11 ships 
of war commissioned by Australia, serving at sea in connection with 
the War, and carrying 3,500 officers and men; all the troops had 
been transported overseas without a mishap; ship-building was 


carried on at the Cockatoo Island Naval Dockyard from which the 
Brisbane cruiser and 3 destroyers had been launched. It may be 
added here that in the second year of war H.M.A.S. Australia was 
attached to the Grand Fleet in the North Sea and performed useful 
patrol duty, as did the light cruisers Sydney and Melbourne which 
cruised as far north as Nova Scotia and south to Montevideo; 
H.M.A.S. Pioneer served in the Indian Ocean and the others on 
the Australian station. 

Meanwhile Recruiting and the need for men gradually became 
the central subject of Australian discussion. The male inhabitants 
were under compulsory training as (1) Cadets and (2) as members 
of the Citizen Force from the age of 12 to 26 years, but the system 
had not had time to get into full operation. Australia was far from 
the scene of struggle and the masses, even in 1916, were not fully 
conscious of its vital nature; Labour interests, organizations and 
policy had been directed to make things comfortable for the work- 
men rather than to instruct them in great or world- wide issues; 
the climate was, in the main, genial, hours of labour few and 
wages pretty good, so that no personal causes disturbed this inertia ; 
the Unions resented dictation even in the form of social influence 
or the pressure of industrial employers. A Call to Arms had been 
issued by the Premier Hon. Wm. Morris Hughes late in Decem- 
ber, 1915, and sent to every male person between the ages of 18 
and 45, with a card which was to be filled out, signed and returned, 
under penalties up to $2,500 or one year's imprisonment, or both. 
Questions asked included particulars as to residence, age, health, 
family or otherwise, occupation and willingness to enlist at once, 
at a later date or not at all if the last answer reasons were to be 

Early in the New Year Mr. Hughes left for what was to prove 
a famous visit to England and passed through Canada on his way. 
He reached Vancouver on Feb. 12 and at Ottawa on the 18th was 
given a Dinner by Sir Robert Borden at the Rideau Club with 
speeches by the Premier and Sir W. Laurier. In his response Mr. 
Hughes declared that ' ' this is not England 's war any more than it 
is Canada's war or Australia's war. This War is /for every prin- 
ciple that has made government in Canada or Australia possible. 
There is no alternative for any freeman." During the day the 
Australian Premier received the unique honour of being sworn in 
as a member of the Canadian Privy Council with H.R.H. The Duke 
of Connaught officiating. His subsequent admission to the British 
Privy Council made Mr. Hughes the only statesman who had ever 
held membership in three of His Majesty's Councils. After the 
Ottawa ceremony he attended a meeting of the Canadian Cabinet 
as Sir Robert Borden had of the British Cabinet a few months 
before and as he was to do later on. To the Canadian Club at 
Ottawa on the 19th the Australian Premier spoke with the eloquence 
which afterwards took London by storm. He eulogized the com- 
pulsory training system of the Commonwealth and declared it 
the duty of a freeman to be " able as well as willing to defend his 
country. ' ' 


From the time Mr. Hughes arrived at Liverpool on Mar. 7th 
until he sailed for home his visit was a succession of Imperial com- 
pliments, popular and press demonstrations of personal interest 
or political approval, and strenuous work and speech-making on 
his own part. He had seen Mr. Massey, Premier of New Zealand, 
before leaving home waters and his treatment in Canada touched 
a popular note in England, his earnest, outspoken, energetic per- 
sonality reached the heart of the public, he stood as indirectly 
representing three great Dominions, and there is no doubt that he 
voiced many of their aspirations and views in succeeding speeches. 
On Mar. 9 the Australian Premier had an audience of the King 
at Buckingham Palace and was sworn of the Privy Council, at- 
tended a meeting of the British Cabinet and was entertained at 
luncheon by the Empire Parliamentary Association with Mr. Bonar 
Law in the chair and many well-known persons present. Mr. 
Hughes in his speech instantly caught the attention of his hearers 
and the interest of the public. 

He began by dealing with those who had formerly " browsed in 
the Elysian fields of Pacificism," who had lived in a world of 
their own, to whom the Hague Tribunal was a Pantheon hedged 
about by ten million bayonets ! The practical keynote he struck at 
once: "What is to be our commercial and industrial policy after 
the War? Are we to allow to use the shibboleths of an economic 
doctrine which has been regarded with almost sacred veneration in 
Britain for three-quarters of a century 'Trade to flow along its 
natural channels' after the War, or are we to follow the example 
of all other nations and pursue a policy which will enable us to 
exercise such control over trade as consideration for national safety 
and the country demands? This is a question of transcendent im- 
portance, for upon it not only the welfare of these islands de- 
pends, and their future relations with Britain overseas, but the 
future of Germany herself. . . . After this war I hope Great 
Britain will have a policy compatible with her national safety and 
her national greatness. We, in Australia, have done something to 
show our earnestness in tearing out the cancer of German influence: 
We have annulled every contract, we have cancelled every trade- 
mark and design belonging to Germany. We have given notice to 
every Company that they must within three months from Jan. 16 
put out every German shareholder, whether naturalized or not. 
You must make it plain to the world that you are destroying the 
control of British trade by Germans." 

On Mar. 15 Mr. .Hughes was banquetted by the Imperial Cham- 
ber of Commerce and declared that before the War national safety 
had been endangered by the policy of laissez faire and the entire 
fabric of British industry honey-combed by German enterprise ; that 
German influence in British trade and national life must be ruth- 
lessly destroyed; as to the Empire he wanted it "organized for 
trade, for industry, for economic justice, for national defence, for 
preservation of the world 's peace " ; as to the Navy the least he could 
say was that it had saved Britain. "But the truth is that it has 
saved the civilized world ! Behind that impregnable wall of triple 


steel we have had an opportunity to remedy our lack of prepara- 
tion. Had we been as well prepared on land the peace of the 
world would probably have remained unbroken." At a Pilgrim's 
Club banquet (Mar. 17) Mr. Hughes addressed an audience largely 
American with Lord Bryce in the chair. He told them of the 
certainty of success if the British Empire organized its war-strength 
and described the incident at Gallipoli where the 8th Australian 
Light Horse charged in three waves into the face of certain death 
and eclipsed the charge of the Light Brigade at Balaclava. 

On Mar. 20 the Australian Premier was dined at the City Carl- 
ton Club with Mr. Balfour presiding, and his motto was that after 
the War "we must exploit every opportunity, develop every re- 
source." He dealt with the stupendous folly that gave Germany 
a monopoly of tungsten powder essential for hardening steel, per- 
mitted the dyes which were essential for the textile industry to 
pass into German control, accepted a cheap German sugar and 
allowed Empire sugar-lands to lie idle. "This War has rung the 
death knell of a policy of cheapness that took no thought for the 
social and industrial welfare of the workmen, that mistook mere 
wealth for greatness." The new trade policy must be announced 
at once. A passing illness followed but on Apr. 18 Mr. Hughes 
was able to accept the Freedom of the City of London and utter 
one of the most eloquent tributes to Empire ever heard in the 
historic Guildhall. 

At a succeeding Mansion House luncheon he declared that the 
War had saved the nation and the Empire from moral and physical 
degeneration and decay, its people from becoming flabby and los- 
ing the ancient qualities of the race. To the representatives of 
British organized Labour he spoke on the 19th as the Labour 
leader of a new Commonwealth: "We did not desire war. No men 
desired it less, or hated it more. But we recognized that war was, 
like death and disease, one of the great facts of life, and so to be 
faced. To be faced, mark you, not to be provoked ; indeed, by all 
means short of surrendering our honour and our free institutions 
to be avoided ; and in the fullness of time to be stamped out like 
disease but in the meantime to be faced. And the Australian 
Labour Party had not only faced the possibilities of war, for many 
years before this war broke out, but prepared for it. We had 
adopted as planks of our platform a system of universal military 
training for home defence, and an Australian Navy." 

In Australia, he added, Labour had endeavoured to build up a 
constructive fiscal policy for the economic and social welfare of 
the people. Britain must do the same and change its present 
fiscal system. ' * If you ask how far that change will go and by what 
means it will achieve its purpose, my reply is that it will go as far 
as is necessary to do at least three things ; to ensure national safety ; 
to conserve and extend trade and industries; to lift up the masses 
of the people to a level which will ensure to every worker, using 
that term in its very widest meaning reasonable remuneration and 
conditions .of labour." Speaking in Glasgow on Apr. 28, after 
receiving in Edinburgh the Freedom of that City and an LL.D. 


rom the University, Mr. Hughes described how the lead, copper, 
and zinc markets were absolutely controlled by Germans before 
the War. They had large holdings in the companies, and their 
agents were the sole buying agents for the raw material. 

Meantime Mr. Hughes had attended the Allies' Economic Con- 
rence as a representative of Great Britain and, after his de- 
parture for Australia, received the unique tribute of a Memorial 
signed by a group of 300 public men, thinkers, writers, Admirals, 
soldiers, financiers, etc., declaring that: "The Australian Prime 
Minister possesses that insight into the necessities of the times, 
that broadness of outlook freed from inner political traditions and 
perplexities, that quickness of thought and adaptability to change, 
and the consequent readiness of action ; above all, that freshness 
and strength of will which fit him in a quite pre-eminent degree 
to take a leading part in the solution of the grave economic pro- 
blems arising out of the War. ' ' The Memorial urged that * ' in such 
constitutional manner as the Government may see fit, Mr. Hughes 
be invited to return to this country to take his seat in- the Inner War 
Council of the Empire, to our common utility and inspiration." 

On June 27, the Australian Premier had purchased 15 cargo 
steamers with an average capacity of 7,000 tons at a price of $10,- 
000,000, which he proposed to run as a state-owned line for the relief 
of the transport problems of the hour. He arrived in Australia 
again on Aug. 7 after a passing visit to South Africa and was 
given a series of enthusiastic non-party receptions. The keynote 
of his speeches was the fact that no community of 5,000,000 can 
hold a continent capable of supporting 200,000,000 unless they are 
ready to defend their shores. As a natural outcome of condi- 
tions in recruiting, of his speeches in Britain and upon his return, 
a policy of Conscription was proposed and presented to the coun- 
try. Events had been gradually leading up to this action. The Age, 
perhaps the chief popular organ of Australian thought, had de- 
clared on Apr. 5 that "the farcically inept voluntary system must 
be discarded and compulsory national service adopted and en- 
forced. ' ' 

The Hon. G. F. Pearce, Minister of Defence, had been making 
speeches urging enlistment and on Apr. 8 declared that "we are 
being defended by the conscript armies of France, Russia, and 
Italy, and sooner than have German rule here I would have Con- 
scription." Labour bodies grew rapidly suspicious, then openly 
hostile, with various Unions and Conferences passing Resolutions 
against Conscription, with organs such as the Sydney Worker and 
Melbourne Labour Call fiercely attacking Mr. Hughes and his 
Labour Government. A Party split was inevitable and this came 
in August when the Premier was expelled from the Political 
Labour League of his own State New South Wales. As this situa- 
tion developed the Liberal party, led by Rt. Hon. J. H. Cook and 
Sir W. H. Irvine, leaned toward the Premier who on Aug. 30 out- 
lined his policy in the House of Representatives: 

In view of certain urgent and grave communications from the War 
Council of Great Britain, and of the present state of the War, and the duty of 
Australia in regard thereto, and as a result of long and earnest deliberation, 



the Government has arrived at the conclusion that the voluntary system of 
recruiting cannot be relied upon to supply that steady stream of reinforce- 
ments necessary. . . . The will of the nation must be ascertained. Auto- 
cracy forces its decrees upon the people democracy ascertains and then car- 
ries out the wishes of the people. In these circumstances the Government 
considers that there is but one course to pursue, namely, to ask the electors 
for their authority to make up the deficiency by compulsion. Set out briefly, 
the policy of the Government is to take a Referendum of the people at the 
earliest possible moment upon the question whether they approve of com- 
pulsory overseas service to the extent necessary to keep our Expeditionary 
Forces at their full strength. If the majority of the people approve, com- 
pulsion will be applied to the extent that voluntaryism fails. Otherwise it will 

The Liberal leaders considered this proposal inadequate but 
decided to support the Government policy and the Referendum 
Bill which was introduced on Sept. 13 included the following ques- 
tion to be asked the people on Oct. 28 : " Are you in favour of the 
Government having in this grave emergency the same compulsory 
powers over citizens in regard to requiring their military service 
for the term of war outside the Commonwealth as now apply to 
military service within the Commonwealth T ' Many influential 
papers expressed keen disappointment that the Premier had not 
declared outright for Conscription. After heated debate the vote 
in the House on the 2nd reading (Sept. 22) was 46 to 10 and it 
then passed all stages to the Senate where it was approved by a 
final vote of 17 to 9. The Government's announced plan of opera- 
tion, if successful, was that voluntary recruiting should be con- 
tinued and the deficiency be made up by . Conscription ; men to be 
called up monthly, as required, but no compulsory calling of 
men under 21 years of age ; absolute exemptions for only sons and 
single men who were the sole supports of dependents. 

Mr. Hughes took a strenuous part in the ensuing struggle, his 
eloquent speeches were worthy of his Imperial reputation, his facts 
were hard to gainsay or refute. Yet the issue was taken and 
every foot of the fighting was contested keenly either by clever 
evasion, innuendo, or direct attack. The women were appealed to 
on the side of their natural shrinking from war and the horrors of 
battle in a country where the shriek of the cannon-ball had never 
been heard and where there was no apparent danger of actual inva- 
sion ; every Pacifist doctrine, every instinct of irresponsibility, every 
ideal of the Peace-lover or the ease-lover, were appealed to ; easily 
aroused prejudices amongst the Irish electorate were fanned by 
misrepresentations of the troubles in Ireland; the Labour party, 
already suspicious of their leader's Imperialism, ignorant of Eng- 
land and Empire, devoted to local and personal questions of wage 
and social development, were stirred up by the wildest talk of 
militarism, autocracy and even British bribery of Mr. Hughes. 

Business men were told they would be deprived of the necessary 
workers to run their business ; farmers were warned that a labour 
famine and wasted crops would follow, though one of the pledges 
was that recruits would be kept available for harvesting ; the Aus- 
tralian branch of the anarchistic society. Industrial Workers of 
the World, carried on a conspicuous campaign of lies, disloyalty and 
absolute treason with 30 conflagrations started in Sydney alone by 


the use of chemicals, and threats of general anarchy if Conscrip- 
tion prevailed. On Sept. 18 the Prime Minister issued a Manifesto 
which appealed to the people as boasting their freedom and now 
called upon them to prove themselves worthy to be free. A supreme 
effort was the price of victory; Australia was called upon to help 
in that effort: 

What we are expected to do in this great hour has been stated in precise 
terms. We are to keep our five Divisions up to their full strength. This is a 
task neither beyond our power nor beyond our due obligation. For September 
of this year 32,500 men are required, and for each subsequent month 16,500 
men. This is the task before us, and from it we ought not, must not, dare not, 
shrink. Our only hope of national safety, of retaining our liberties, lies in 
decisive victory by Britain and her Allies over the hosts of military despotism. 
While our lives and liberties are at stake how can we do more than enough? 
But we are not asked to do more than our share. Up to date we have sent 
over 220,000 men oversea, and have 44,000 in camp. The total number of the 
British forces, excluding Dominion and Indian troops, is well over 5,000,000. 
If Australia had done as well as Britain she would have an Army of over 
500,000, instead of one under 300,000. But this is not all, for Britain has 
nearly 4,000,000 men helping to win the War by working at munitions and 
other work! That is to say, that Britain has put nine millions of men into 
this fight. And she is calling up more men! 

He declared the supreme duty which a democrat owed his 
country was to fight for it and quoted Juares, the French Social- 
ist, and Lincoln, the United States patriot, to prove that democracy 
must in this submit to compulsion when necessary. "Were Aus- 
tralia to fail on Oct. 28 Democracy and Labour would have failed. 
But Australia must not fail." At Melbourne on the same day, at 
Sydney on the 21st, at Adelaide and other centres, he took a strong 
militant position. To the great meeting in Melbourne he spoke of 
this as the gravest crisis in the history of the Commonwealth. The 
Australian reserves would be exhausted by the end of January and 
more trained troops would not be available unless his proposal were 
accepted. There were to be many exceptions; family and in- 
dustrial life would be well looked after. 

As to the issue : ' ' Let every man who hesitates, who talks about 
liberty, who sees in this some dreadful menace to democracy, 
know that it is on the battlefields of France his fate is being 
decided. But for the Allied Armies and the British Navy we were 
doomed men. We may bleat and we may struggle, but we are 
like sheep before the butcher, and nothing can save us." As to 
Pacifists he was explicit: "I say that any people who will not 
fight for their country deserve not to retain the rights that country 
gives them. If they will not fight the enemy outside their gate 
they will not fight in their times of trial the enemy within their 
gate. . . . Nearly 300,000 men have enlisted. Why should 
some take on their shoulders the burden that belongs to all? If 
life be such a sacred thing that no Government or no individual 
has a right to lay hands upon it, why should these 300,000 be 
chosen to die, that we may live, unmolested, allowing the roll and 
thunder of battle to pass over us undisturbed?" 

Despatches were obtained and published from British leaders 
and officers at the Front such as Arthur Henderson, G. N. Barnes 



and John Hodge, Generals Haig and Birdwood, Aristide Briand, 
Premier of France, Gen. Joffre, and others. Mr. Henderson, the 
Labour leader, said (Oct. 20) : "I say to the workers of Aus- 
tralia as I said to the trades unionists of the Mother Country: 
Between the issue of compulsion and defeat there can be no room 
for doubt; we applied compulsion to extend trade unionism, to 
secure more drastic social re-organization, to improve the health of 
the people, to secure greater equality in the distribution of wealth ; 
we must not object to use the same means to save not only our nation 
or Empire but small nations everywhere. ' ' As the campaign devel- 
oped Mr. Hughes had the support of all the State Ministries except- 
ing Queensland and all the leading papers of Australia with the 
strenuous opposition of the Labour organizations of Queensland, 
New South Wales and Victoria; Mr. Holman, Premier of New 
South Wales, and two of his Ministers, with Senator E. J. Russell 
of the Commonwealth Government, were expelled from the Labour 
organizations; F. G. Tudor, W. G. Higgs, Albert Gardiner and 
E. J. Russell retired from Mr. Hughes' Government as opposed to 

Australian soldiers at the Front and in Australia were allowed 
to vote and to them Mr. Hughes issued a Manifesto declaring that 
their votes would be taken first and should lead Australia: "Sol- 
diers, if the people of Australia vote 'No' they encourage the 
enemy, they abandon you, they desert France that has shed its 
blood in the common cause, they desert Belgium, they leave un- 
avenged those foul outrages inflicted upon women, children, and 
helpless non-combatants of the Allied nations, they repudiate the 
debt they owe to Britain, they cover Australia with the mantle of 
eternal shame." To the Women he appealed on Oct. 14 in part 
as follows : ' * Our enemy stands for military despotism. We stand 
as a free democracy, whose ideals rest upon reason and righteous- 
ness. . . . For the first time in the history of the world this 
issue is submitted to the votes of a nation. For the first time in 
history the voice of woman is to speak directly on the greatest 
question that can confront any community." All the denomina- 
tional churches of Australia appealed for support to the policy 
and were joined by Archbishop Clune of the Roman Catholic 
Church. On Oct. 27, the last day of the contest, final appeals were 
issued by Mr. Hughes and by Mr. Cook who had been speaking for 
a month in favour of Conscription. The result of the vote on Oct. 
28 took time to obtain but finally it was as follows : 

The number of votes cast "Yes" or in favour of Conscription was 1,084,918 
The number of votes cast ' ' No " or against Conscription was 1,146,198 

The majority recorded against Conscription was. . . . 

New South Wales 



South Australia 

Western Australia 


Northern Territory and Papua ........'. 















All the tremendous influences in favour of Conscription had 
been ineffectual combined parties, united churches, educated 
classes, financial support, had failed against organized Labour's 
fears and suspicions, the farmers' belief that they would be de- 
prived of labour, the moral weakness of women in facing such an 
issue, and the Irish vote, which went against the policy. The 
bringing in of the British Government as wanting Conscription 
and even the approval letters of leaders and soldiers may have had 
the opposite effect from that desired upon a people very sensitive 
as to self-government and outside control. Mr. Hughes' bitter 
attacks upon opponents also had a bad influence. The posters of 
the contest were an interesting study and in themselves a great 
factor in the result. The Conscriptionists were fond of bringing 
the Kaiser in as urging Australia to vote * * No ' ' ; one placard which 
influenced thousands of women voters the other way depicted a 
woman with woe on her face, condemning her son and the sons of 
others to die, by placing her vote in favour of Conscription in the 
ballot box. A solid German vote in South Australia also had weight. 

It did not appear that the negative vote meant disloyalty or op- 
position to the War as such; the fight may indeed have awakened 
many as to the vital issues involved ; a majority probably believed 
the Voluntary system would be found sufficient. Mr. Hughes on 
Nov. 13 expressed this view but added: "The decision of the 
people will profoundly affect the future, not only of this young 
Commonwealth, but democratic Government generally. This 
refusal on the part of a free people to make a sacrifice to defend 
their freedom will be used as a proof of the unwisdom of submit- 
ting great national issues directly to the people." On Nov. 22 the 
Government's tentative action in calling up single men between 
21 and 35 was reversed and on Dec. 10 Donald McKinnon, M.L.A., 
was appointed Director-General of Kecruiting, with an influential 
committee of one representative from each State. In November a 
new Labour Party was formed to oppose Mr. Hughes made up of 
19 Labour Senators and 24 members of the House, with Hon. F. G. 
Tudor, as Leader in the latter body, and Hon. Albert Gardiner in 
the Senate. Messrs. Hugh Mahon and King O'Malley retired 
from the Government which Mr. Hughes then re-organized with 
13 Representatives and 11 Senators as direct Labour supporters 
and 34 Liberals and 5 Liberal Senators as indirect supporters, and 
26 Labour Eepresentatives and 19 Senators in direct opposition 
as follows: 

Prime Minister and Attorney-General Et. Hon. W. M. Hughes. 

Minister of Defence Hon. G. F. Pearce. 

Minister for the Navy Hon. Jens A. Jenson. 

Postmaster-General Hon. Wm. Webster. 

Treasurer Hon. Alex. Poynton. 

Minister of Trade and Customs Hon. W. O. Archibald. 

Minister of Home Affairs Hon. F. W. Bamford. 

Minister of Works Hon. P. J. Lynch. 

Vice-President of Executive Council Hon. W. G. Spence. 

Hon. Minister Hon. E. J. Eussell. 

Hon. Minister : . Hon. W. H. Laird Smith. 

Solicitor-General Hon. E. B. Garran, C.M.G. 



Meantime Australian soldiers had been winning new honours in 
France. On Mar. 31 the last detachment of Australians and New 
Zealanders for this front had left Alexandria ; all had been trans- 
ported to Marseilles and Havre without a single mishap. Their 
popular Commander, Lieut.-General Sir Wm. Birdwood, addressed 
them before leaving Egypt in a Message which enclosed a reprint 
of Lord Kitchener's first message to the troops going to France: 
"You have made for yourselves a national reputation as good 
fighters, which has earned for you the esteem of your comrades, 
alongside of whom we will shortly be fighting. The training that 
you have had will, I hope, enable you to utilize your fighting qual- 
ities to advantage. But, in addition to these two qualifications, 
there is still a third which is essential to success Discipline ; and 
it is the greatest of the three, for without discipline the best fight- 
ing troops in the world will fail at the last to achieve success. ' ' 

Many Anzacs (Australian and New Zealand Army Corps) 
still remained in Egypt, or were reinforced from home as, on May 
16, they carried out a successful expedition against the enemy at 
Bayoud. At the Katia oasis in the desert, early in August, Gen- 
eral Chauvel's Anzac Mounted Division attacked the Turks with 
great success the London News correspondent stating that "these 
magnificent troops fought with a tenacity, courage and endurance 
worthy of comparison with the greatest things done by them on 
Gallipoli. The part ttiey took in overthrowing the attempt to 
reach the Suez Canal will stand out as one of the finest things done 
by the Colonials during the War, and will illumine the pages of 
the Anzacs' short but illustrious military history. Fatigue is not 
counted a hardship by these hardy men." Finally, this Battle of 
Romani, was made secure as a victory when the New Zealanders 
threw the Turks off Mount Royston and drove them towards Katia. 
The troops operating in the Sinai Peninsula also included Aus- 
tralian and New Zealand mounted men who took part in the cap- 
ture of El Arish, a town on the coast road from Egypt to Judea, 
100 miles east of the Canal and an important stronghold of the 
Turks. A day or two later Bir-el-Maghdabah, some 15 miles south- 
east of that spot, was captured and it appeared that the whole 
Sinai Peninsula was being systematically cleared of Turks by 
Anzacs and British troops. 

In France, under date of July 20, C. E. W. Bean, the Aus- 
tralian press representative, stated that on the 21st ' ' an Australian 
force attacked the German trenches south of Armentieres. The 
Australians on the left seized the German front line and passed 
beyond it to further trenches of the first system. In the centre 
the Australians carried the whole of the first system and reached 
more or less open country. On the right the troops had to cross 
a much wider stretch between trenches where the Germans held a 
very strong fortified salient. From some captured trenches here 
they were subsequently driven out. . . . Our troops in this 
attack had to face shell fire heavier and more continuous than was 
ever known in Gallipoli. At least 200 prisoners were captured, 
and several machine-guns brought in." 


On July 23 the Australians advanced toward Pozieres and 
after capturing the first line with a bayonet charge they started 
toward the second line which was strongly held with machine guns. 
"Not even the German gunners could keep back this line of keen, 
ardent men, these clean-shaven, hatchet-faced lads who, without 
such heavy casualties as might have been expected, took the terri- 
tory and two more lines of trenches in front of them. Then, leav- 
ing some of their number to make sure of the ground behind they 
went on again and carried their objective with an irresistible 
rush." They had reached the ruins of Pozieres and held half the 
village while a British curtain of fire was in front and a German 
one behind holding them to the deadly conflict with the Germans 
in the other half of the village. Digging, bombing, fighting hand 
to hand, rushing and tumbling amid piles of debris and constant 
roar of great guns, they won their way and held the place. 

For this action warm tributes were paid by the French press; 
a practical result was the capture of 7,000 prisoners. But, as The 
Times correspondent of Nov. 9 described it, the fighting did not 
end there. "There has been no sterner or more determined strug- 
gle than that which went on day after day, week after week, up 
the slope from Ovillers-la-Boisselle to Pozieres and on beyond to 
Mouquet Farm on the left and to the further first stages of the 
descent of the rjdge towards Courcelette. What the Australians 
did would have been impossible for any troops who did not possess 
both perfect courage and determination and a magnificent physi- 
que." To Oct. 31 the official figures of casualties from the begin- 
ning of the War included 16,666 killed, 30,895 wounded, 3,394 
missing, 654 prisoners of war and 302 unspecified a total of 
51,911. There were many War honours during the year, includ- 
ing the C.B. for Maj.-Gen. John Monash, Brig.-Gen. H. G. Chauvel, 
C.M.G., and Brig.-Gen. F. G. Hughes ; the V.C.. to A. S. Blackburn, 
C. C. Castleton, Martin O'Meara, John Leak, Wm. Jackson and 
Thos. Cook ; the C.M.G. to Brig.-Gen. G. de L. Ryrie and 10 other 
officers, the D.S.O. for 45 officers and a large number of Distin- 
guished Conduct and Military Medals. 

Australian financial conditions of the year were satisfactory. 
According to the War Census of 1915 the wealth of Australia 
totalled $4,700,000,000 and the annual income $1,075,000,000 while 
the Savings Bank deposits were stated to be the highest per capita 
in the world. The number of fit men between 18 and 44 and not 
enlisted was over 400,000. War loans were splendidly taken up. 
The first one, which had closed on Aug. 31, 1915, asked for 5,- 
000,000 and realized 13,389,440; the second, closing on Jan. 31, 
1916, was for 10,000,000 and realized 21,651,720 ; the third closed 
on Sept. 1st and asked for 18,000,000 realizing 23,495,690 a total 
of over $290,000,000. In June the Government floated a 4,000,000 
domestic Loan in London at par, 5^ per cent, interest, and re- 
deemable in 1920-22. It was fully subscribed. Meanwhile the Im- 
perial Government had granted a War credit of 25,000,000 or 
2,000,000 a month. 


Revenues slowly increased and the total for 9 months ending 
Mar. 31, 1916, was 12,438,963 or $6,300,000 more than in the same 
period of 1915. The Budget for the year of June 30, 1916, showed 
total receipts for the financial year of 91,052,000, of which the 
ordinary revenue was 30,627,000. The War loans raised in Aus- 
tralia amounted to 35,257,000 and those from the British Gov- 
ernment to 22,400,000. Outstanding Treasury bills amounted to 
2,768,000. The total receipts for the new financial year were 
estimated at 127,836,000, including revenue, 38,929,000; War 
loans to be raised in Australia, 45,931,000; loan from the British 
Government, 13,000,000; balance to War loans from the previous 
year, 17,075,000. 

The expenditure for the past financial year was 73,978,000, 
including ordinary expenditure, 24,065,000; War expenditure 
from revenue, 3,563,000; and War expenditure from loans, 37,- 
632,000. The Commonwealth Note issue at the former date was 
43,324,730 with a gold reserve of 15,741,911 or 35%. In Parlia- 
ment at the close of the year the Government's financial policy 
included a levy on wealth for repatriation of soldiers which was 
estimated to bring 3,333,000, an Entertainment tax of 2,000,000, 
a War-time profits tax of 2,000,000, and a 25% increased Income 
tax of 1,000,000 a total in round figures of $41,500,000. On Nov. 
11 the Government issued regulations providing for a Moratorium 
as to mortgages or agreements to purchase. 

Trade during the year was hampered by restricted transporta- 
tion and high freights but, for the period ending June 30, 1916, 
it had increased from 125,024,413 in 1914-15 to 152,283,687 or 
$761,418,435. At a Brisbane Congress of the Associated Chambers 
of Commerce of Australia, held in July, Resolutions were passed 
in favour of the following after- war policy : Preference within the 
Empire and a modified degree of preference for Allied nations; 
fair and reasonable treatment of neutral nations and a surtaxed 
tariff against enemy nations; a lower scale of tonnage dues and 
port charges to apply in all British ports to British-owned ves- 
sels; permanent measures to be adopted against the dumping of 
enemy and other goods within the Empire. In September it was 
stated that a Commission would be appointed to visit Canada and 
the United States and to report upon methods of manufacture and 
production and conditions of employment. 

The Wheat yield of 1915-16 was 164,400,000 bushels compared 
with 24,800,000 in 1914-15 and 103,300,000 in 1913-14. The Gov- 
ernment took over the marketting of the last year's crop. No one 
was allowed to sell wheat to anyone but the Government which gave 
a certificate when the grain was delivered at any country railway 
station, and this certificate entitled the holder to obtain an advance 
from his Bank of 2s. 6d. per bushel. The arrangement was prim- 
arily due to lack of transportation facilities. A Wheat Board was 
appointed by the Government and its operations, up to the middle 
of the year, totalled receipts of 11,994,000, certificates paid of 
22,750,000, an Imperial Government advance of 8,992,000 and a 
net Government indebtedness of 9,044,000. 


During this year energetic Government action was taken in 
the matter of Munitions. In the early summer of 1915 a Federal 
Munitions Committee had been appointed and co-operation with 
the different States resulted in each of these forming Munitions 
Committees which at once got actively to work. Munition Bills 
were passed by the Federal Parliament, giving the Government 
power to manufacture, and contract for the manufacture of, muni- 
tions, and the different States also approved similar regulations 
and powers. The work was entered upon in a public, official, and 
thoroughly systematic manner. The great difficulty encountered 
from the first lay in the fact that Australia, unlike Canada and 
unlike the United Kingdom, was not a mechanical or manufactur- 
ing country. 

The leading engineers of the Commonwealth were called into 
conference to supply all possible information on which actual pro- 
gress could be based; a Metal Exchange was established by the 
Federal Government to arrange for the control of metals produced 
in the country, so that all supplies would be readily available as 
required; the Munitions Committee proceeded with the formation 
and enrollment of a Munition Workers ' Corps, to include all men of 
military age who were indispensable for the manufacture of muni- 
tions, and these men were given certificates to indicate that they 
were performing their full share of work in defence of their coun- 
try. After consultation with the British War Office, the Federal 
Munitions Committee decided that Australia could best serve the 
needs of the Empire by the manufacture of 18-pound high-explosive 
shell bodies. 

A price of $5.05 per shell, including the cost of the steel, was 
set, and all contractors willing to accept this price were given open 
contracts to supply all the shells they could manufacture up to 
June 30, 1916, with the provision that this price might be revised, 
if so decided by the Government, on or after Mar. 31, 1916. It was 
also arranged that the British Government should give three 
months' notice when no more shells were required. Many tenders 
came from State Governments with a minimum of profit asked or 
proceeds to go to public purposes. Several private firms tendered 
with the undertaking that profits would be refunded. During 1916 
a large production was underway with, later on, the making of all 
kinds of munitions, including machine guns, aeroplane engines and 
an anti-gas apparatus. 

Of miscellaneous matters it may be said that Federal and State 
representatives agreed upon a Land Settlement plan for soldiers 
which included grants of land by the States; provision of funds 
by the Federal Government, by way of loans to the States, for 
making advances through the agricultural banks or similar Gov- 
ernment institutions, for improvements, for stock and for imple- 
ments ; the State institutions to advance to the soldier settlers such 
money at cost, plus reasonable working charges ; a special Repatri- 
ation Fund to be collected by citizens to help the soldiers in sub- 
sidiary matters; training farms to be established with 42,000 
families expected to be settled on the land in three years. A strik- 
ing event was Anzac Day the first anniversary of the landing of 


the Australian and New Zealand contingents in Gallipoli which 
was celebrated in London on Apr. 25 and throughout the Common- 
wealth and Dominion. The King and Queen were present at an 
impressive service in Westminster Abbey, held in remembrance of 
''those, our brothers, who died at Gallipoli for their King and 
Empire, in the high cause of Freedom and Honour." Great de- 
monstrations took place in Australian and New Zealand centres 
while from London came an eloquent tribute by Mr. Hughes and 
a message from the King : 

Tell my people of Australia and New Zealand that to-day I am joining 
with them in their solemn tribute to the memory of their heroes who died in 

They gave their lives for a supreme cause in gallant comradeship with the 
rest of my sailors and soldiers who fought and died with them. Their valour 
and fortitude have shed fresh lustre on the British Arms. 

May those who mourn their loss find comfort in the conviction that they 
did not die in vain, but that their sacrifice has drawn our peoples more closely 
together, and added strength and glory to the Empire. 

In England Australia had long been represented by Rt. Hon. 
Sir George H. Reid as High Commissioner. He had resigned in 
1915, on Jan. 11, 1916, he was elected unopposed as M.P. for St. 
George's Hanover Square, and on the 19th was entertained at 
luncheon by the Royal Colonial Institute with Lord Milner in the 
chair. His successor as High Commissioner, Rt. Hon. Andrew 
Fisher, arrived in London on the 31st and in an interview declared 
that as to "the future defence of British interests in the Pacific, 
the effective existence of a Navy, Australian-owned, manned, 
and maintained; the raising and equipment of Australian and 
New Zealand local forces ; and the manufacture of arms and muni- 
tions on the scale seen during the past year ; are indications that no 
undue anxiety need be felt." He was banquetted on Feb. 4 by 
the Australian Agents- General in London with tributes to Aus- 
tralia from Mr. Bonar Law and Lord Kitchener. The Hon. T. J. 
Ryan, Premier of Queensland, visited London in April-May. 

In Canada, on their way to England, there were several promin- 
ent Australian visitors during the year besides Mr. Hughes and in- 
cluding Hon. P. McM. Glynn, K.C., R. J. Burchell, M.P., Senator 
Hugh de Largie, Hon. Josiah Thomas, M.P., Hon. David Watkins, 
M.P., Senator Stephen Barker, A. C. Palmer, M.P., A. J. Hampson, 
M.P., Sir Wm. McMillan, a Free Trade and Confederation leader, 
and Brig.-Gen. V. C. M. Sellheim, of the Australian Army. An 
Australian Cadet party under Lieut. J. J. Simon, after many 
months in Canada and the United States, visited Stratford, Guelph, 
Berlin and other Ontario points early in the year and were at 
Victoria on Jan. 19 where they were given a farewell luncheon by 
the Provincial Government. 

The latest official statistics for Australia are for the close of 
1915. During that year the immigrants into the country were 
5,796 as against 37,445 in 1913 and the total population showed a 
decrease of 8,964 for the first time in many years ; the total deposits 
in the cheque-paying Banks of Australia were 174,979,336 or 
approximately $870,000,000 an increase in the year of $55,000,- 
000; the total on deposit in Savings Banks was 91,577,667 or, 


approximately, $457,000,000 an increase in the year of $40,000,- 
000; the 1915 taxation by the Commonwealth Government was 
16,870,596 and by the State Governments 7,000,395 a total per 
head of about $4.60; the Public Debt of the Commonwealth was 
only 37,428,830 but that of the six States was 342,925,669 a 
total of $1,900,000,000 or $380 per head against which the Rail- 
ways were held as assets and other public properties owned; the 
total Commonwealth subsidies to the States were 6,273,775 while 
the revenue of the Commonwealth and States totalled 69,000,000 
or $345,000,000; the mileage of Government-owned Railways was 
20,062 in 1914-15, the cost to the country 193,227,301, the gross 
revenues 20,966,059 and the working expenses 15,409,210. As to 
industries the number of factories in 1914 was 15,427, the hands 
employed 331,579, the wages paid 34,090,428, the value of the 
output 166,405,922 or $830,000,000; the value of minerals pro- 
duced (1915) was 22,382,652, Agricultural and pastoral produc- 
tion 96,317,000, dairy, poultry, etc., 21,562,000, forestry and fish- 
eries 6,419,000 forming, with manufacturing as above, a net 
total production for Australia of $1,046,000,000. 

It may be added that in 1915 the number of Trades Unions in 
the Commonwealth was 415 with 528,031 members and that on 
June 30, 1916, 15,742 were reported as unemployed ; that the total 
expenditure of the States on Education in the calendar year was 
4,475,762. Incidents of the year included the suppression of the 
Industrial Workers of the World or I.W.W., the anarchistic, 
socialist organization which had spread out from the United States 
into this and other countries ; the British purchase in November of 
500,000 tons of wheat at a price of $20,000,000 ; and the Coal strike 
which began early in November with the miners' demand for a 
bank-to-bank clause and the employers' offer of a compromise, fol- 
lowed by the Government seizure of available coal supplies and 
further disorganization of transports and shipping; repeated Gov- 
ernment and Labour conferences and, finally, the appointment of a 
Tribunal by the Government under War legislation and with 
arbitrary powers to deal with the crisis. On Nov. 30, it was set- 
tled by the granting of an 8-hour day, a bank-to-bank clause, and 
an increased price to compensate owners. 

During the year the Government took important measures 
against German influence in commerce and industry, and adopted 
an elaborate scheme for the defence of Australia, involving the 
formation of a Council of Defence, the organization of a General 
Staff, and the establishment of a National Arsenal The anti-Con- 
scriptionist Labour party in December tried to force a Dissolution 
and the Senate, for the first time in Commonwealth history, reduced 
a Supply Bill by one month and thus attacked the prerogative of 
the Lower House; at the same time (Dec. 9) the Inter-State Labour 
Conference expelled Mr. Hughes, the members of his Cabinet and 
other leaders who had supported Conscription. On Apr. 3, in 
connection with an Australian combination of Metal Companies 
then under organization, Mr. Mahon, Federal Attorney-General, 
declared that they would probably produce 85 per cent, of the zinc 
of the Empire and entirely replace the old-time German monopoly. 


About this time the Commonwealth Government closed by pro- 
clamation all hotel bars at six o'clock and several States, during 
the year, passed moderate Temperance legislation; out of a total 
length of 1,063 miles the new Transcontinental Railway, on June 
30, 1916, had 770 miles completed at a cost of $25,000,000 ; in July 
Canadian architects were given an opportunity of competing in 
plans for the construction of the new Australian Parliament Build- 
ings with Jan. 31, 191 7, as the limit of time ; statistics showed that 
in the first 15 months of War, equipment of the Australian Ex- 
peditionary Force cost 75,000,000 or $375,000,000; the First 
Report of the Advisory Council of Science and Industry Chair- 
man, Senator Albert Gardiner and Deputy Chairman, Prof. D. 
Orme Masson, D.SC., F.R.S. was an important document dealing with 
the many scientific yet practical issues brought home to Australia 
by the War. The total of Australian voluntary subscriptions to 
the various Patriotic Funds of the War to the close of 1916 was 
about $25,000,000. 

New Zealand These two Island countries one within the British 

and Newfound- Pacific orbit, and the other within the American orbit 
land in the were a iik e during 1916 in devotion to War success 
and Empire support. In New Zealand during the year 
there was little politics and much war-work. Sir Joseph Ward's 
Budget of June 16 stated the revenue at 14,510,137 and the ex- 
penditure at 12,493,107 the surplus to be invested in Imperial 
Treasury Bills in addition to 1,325,000 already invested, or a total 
of $16,500,000. There was much direct taxation in New Zealand 
and in 1914-15 the Land Tax had brought $4,000,000, the Income 
tax $2,700,000 and the Death duties $3,880,000. The Government's 
announced policy included a tax of 45 per cent, on war profits, an 
additional income tax of 5 per cent., the issue of new War bonds 
and the borrowing of 12,000,000 for war purposes. 

The Finance Minister in his address stated that: "New 
Zealand's wonderful natural advantages are able to meet all the 
demands upon her finances, and to provide a sinking fund for the 
repayment of all loans, including those raised or to be raised for 
war purposes." As to trade the exports of the year 1915-16 (Mar. 
31) totalled 32,000,000 or an increase of 5,500,000. The Imperial 
Government purchased the whole of the wool clip of 1916 and, as 
in 1915, the frozen meat supply was also taken over, though at an 
increased price. In October the Rt. Hon, W. N. Massey, Prime 
Minister, and Sir Joseph Ward, left for England upon invitation 
of the Imperial Government, with the Hon. James Allen remain- 
ing as Acting-Premier. At a luncheon in London on Oct. 27 Mr. 
Massey was explicit as to German pre-war plans. While the Ger- 
man Army and Navy had grown unchecked to enormous propor- 
tions : 

We allowed them to send their spies into every corner of the Empire. We 
allowed them to see our harbours and our ports and our preparations, such as 
they were. We invited their officers to see our military and naval reviews. We 
allowed their ironmasters to see our arsenals and all our latest machinery, and 


consequently be able to calculate for themselves our possible output of muni- 
tions. We hid little or nothing from them. German waiters listened to our 
conversations in clubs and hotels, and reported the more important of them to 
the German authorities. German governesses won the confidence of the 
families where they were employed, only in many cases to act the part of 
female Iscariots. We allowed their ships to trade to British ports without 
' t or hindrance. We allowed them to carry passengers and goods between 
ritish ports when we knew they were competing unfairly with British ships, 
ecause, as a matter of fact, many of them were subsidized by the German 
Jovernment. We allowed German bounty-assisted goods to come into competi- 
' n with British-manufactured goods, very much to the disadvantage of our 
n people and our fellow-citizens. We allowed German bounty-assisted sugar 
ractically to stifle the production of sugar within the Empire, and, bitterest 
thought of all, when she was preparing the great Army which took the field in 
August, 1914, and which was intended to crush France and smash Britain, 
she was financing her great undertaking partly from profits made from Aus- 
a and Canada and every part of the Empire. 

He took the same line as Mr. Hughes of Australia regarding 
Free-trade and urged British trade for British people as a sub- 
stitute. As to returning soldiers New Zealand, he stated, had set 
apart 500,000 acres of the best Crown lands and purchased 100,000 
acres of private property for settlements. Land Boards had the 
.etails in hand and the Government would, if necessary, advance 
up to $2,500 to each soldier for purchase of stock, material and sup- 
lies. Sir Joseph Ward stated the financial situation as follows: 
"We owed at the end of last year 110,000,000, including our ex- 
penditure of over 12,000,000 for the War. The capital value of 
land and improvements in New Zealand at the end of 1915 was 
365,000,000 and that is quite apart from the value of public 
assets. And, I think it is a good set off against the whole indebted- 
ness of 110,000,000. We have made provision for nearly all our 
loans, for nearly 14 years, that are falling due, and for some months 
we have relieved the Imperial Treasury from sending us any con- 
tribution for the purpose of carrying on the War. We put a loan 
on the market of New Zealand of 8,000,000 just before we left, 
and the total subscribed was 10,500,000. We pay y 2 per cent, 
and get the money at par. We have provided a sinking fund for 
our War loans, all our ordinary loans, and for the repayment for 
the gift battleship New Zealand." Following the precedent set for 
Sir R. L. Borden and W. M. Hughes, a British Cabinet meeting was 
attended by Mr. Massey and Sir J. G. Ward on Oct. 25 and, on 
Nov. 6, the Freedom of the City of London was conferred upon 
the New Zealand Premier. 

Meantime recruiting slackness and Government policy had 
been tending toward Conscription with, however, Census results 
from 1915 which showed 109,000 men willing to enlist under cer- 
tain conditions. During the War Session, which opened in May, 
a Military Service Bill was passed which applied to all physically- 
fit men of 20 to 45 years, inclusive, but was not to be put in force 
until the supply from voluntary enlistment * was insufficient. It 
passed the Lower House with only five votes in opposition and the 
Upper House unanimously. Arrangements were, also, made for 
the formation of a National Reserve to be composed of middle-aged 
men and others who, though unfit in certain details for military 



service, were still in good health and able to bear arms. On Aug. 
1st, in Parliament, Mr. Massey reviewed the share of New Zealand 
in the War, and after reference to the men under enlistment added : 
"We have further contributed about 400 nurses who have gone 
with the New Zealand troops to different hospitals. Coming to 
supplies, about 10,000 horses have been sent to Egypt for the use 
of the troops as required, while vast supplies of frozen meat and 
general produce have been forwarded from the Dominion to the 
British Government for the use of the troops, all of which have, of 
course, been paid for. On the other hand, New Zealand itself is 
paying every shilling of the expenditure in connection with her own 
Force, including transport, food and clothing expenses. We are 
also paying for all munitions, rifles and general equipment of our 
troops. In short, our expenditure at the present time is a little 
over a million pounds a month, and is gradually increasing. ' ' 

On. Aug. 19 there were 65,000 men under arms. In March ar- 
rangements were made to establish a separate New Zealand Divi- 
sion at the Front with three brigades instead of retaining the 
famous Anzac condition of a combination with the Australian 
troops. General Sir A. J. Godley was in command and it was 
understood that the Division would contain 20,000 men. The 
fighting done by New Zealanders in Egypt before going to this 
front had, however, been mixed closely with that of the Australians 
and so it continued to be there and in the Desert, and the Sinai 
Peninsula. In October Mr. Bonar Law, Secretary of State for the 
Colonies, received this message from Sir Douglas Haig: "New 
Zealand Division has fought with greatest gallantry in Somme 
battle for 23 consecutive days, carrying out with complete success 
every task set, and always doing more than was asked for. 
Division has won universal confidence and admiration. No praise 
can be too high for such troops." As to this fighting the London 
Times correspondent wrote on Nov. 9: "In the fine share which 
they took in the capture of Flers, and still more in the hard 
fighting which went on to the north and northwest of that stricken 
village, when they forced their way with bomb and bayonet along 
the German third main line, and cleaned out the labyrinth of 
strong trenches and sunken roads up to and beyond the level of 
Eaucourt TAbbaye, the New Zealanders did practically faultless 
work. They were a tower of strength to the troops on both their 
right hand and their left, always doing what they were expected 
to do, and always being where they ought to have been." Some 
of the chief Honours bestowed during 1916 upon New Zealand 
officers were as follows : 

C.B. Lieut. -Col. Alexander Chart- 

C.M.G. Lieut.-Col. J. G. Hughes, D.S.O. 
C.M.G. Lieut.-Col. Wm. Meldrum. 
C.M.G. Col. Charles Begg. 
C.M.G. Lieut.-Col. W. H. Parkes, M.D. 

C.M.G. Lieut.-Col. Frank Symon. 

C.M.G. Lieut.-Col. Robert Young. 

C.M.G. Lieut.-Col. James J. E^son. 

D.S.O. Major Norris S. Falla. 

D.S.O. Major N. F. Hastings. 

D.S.O. Capt. Bertram Finn. 

A large number of Military Crosses, Distinguished Conduct and 
Military Medals were also won. It may be added that a party of 



New Zealand politicians passed through Canada in June, 1916, on 
their way to attend the Empire Parliamentary meeting in London, 
including Sir James Carroll, M.P., an ex-Minister in two Cabinets, 
Hon. W. C. F. Carncross, M.L.A., Hon. E. P. Lee, M.P., and Hon. C. 
J. Parr, C.M.G., M.P. They were variously entertained and saw 
something of Canadian life and soldiers. Contributions to Patriotic 
Funds in New Zealand during 1916 maintained a high level and 
including $75,000 a month given to Belgian Relief ; up to the close 
of 1915 they had totalled 1,586,249 or nearly $8,000,000. 

The trade of New Zealand increased during the year far beyond 
its average with Imports (Mar. 31) of 21,308,431 and Exports of 
33,468,391; the Bank deposits rose from 24,030,250 in the year 
of Mar. 31, 1914, to 31,274,053 in 1916, while discounts and 
advances remained almost stationary 23,733,892; the revenue 
from Land and Income taxes which was estimated by Sir Joseph 
Ward at 619,000 for the fiscal year 1916 actually realized 2,570,- 
000 ; the total raised for War expenditure up to the middle of the 
year was $55,000,000 and part of it was being paid out of current 
revenues, and by October the expenditure was $5,000,000 a month ; 
in March, 1915, the Government had put at the disposal of the 
Imperial authorities all the meat produced in the Dominion at a 
low price and by September, 1916, the shipments had totalled 
100,000 quarters of beef, 4,000,000 carcases of mutton, and 5,500,- 
000 carcases of lamb, entailing payment to the New Zealand pro- 
ducers of something like 11,750,000. To this was added about 
1,000,000 for cheese, which was also supplied through the Govern- 

Newfoundland was prosperous during 1916. Its possession at 
Bell Island of iron deposits valued at $3,500,000,000 was, in itself, 
a great asset at this time; the seal, cod and herring fisheries had 
an average season which increased prices ran up to about $12,000,- 
000 in value ; the pulp and paper mills were active but there were no 
industrial war orders except as Bell Island fed the Nova Scotia 
industries ; a number of new sailing vessels were added to the fleet ; 
there was an increased trade and for the year of June 30, 1916, the 
Imports were $16,427,000 and the Exports $18,969,000; Govern- 
ment revenues increased and an issue of $5,000,000 3-year bonds 
was floated in New York. The expenditure by the Colony up to 
the close of 1916 upon the Newfoundland Regiment was $2,375,000 
together with a yearly contribution of $90,000 to the Admiralty 
toward the upkeep of the Island's Naval Reserve.* The New- 
foundland Patriotic Fund receipts totalled $120,000, the Women's 
Patriotic Fund collected $60,000 for the purchase of materials to 
be made into shirts, socks and other comforts for the troops ; 
machine-gun and aeroplane Funds raised $53,000; other special 
War Funds received $50,000. 

The sons of Newfoundland greatly distinguished themselves 
during the year with, it was claimed by the Newfoundland Society 
of Montreal, 12,000 natives of the Island enlisted in Canadian or 

*NOTE. Figures obtained by courtesy of W. M. Nicholson, Canadian Trade Com- 
missioner to Newfoundland. 


British or in the Island forces. At the opening of the Legislature 
on Mar. 16 Sir W. E. Davidson, the Governor, announced that both 
the Naval and Military forces would be increased ; up to Dec. 31st, 
3,180 men had enlisted locally in the Newfoundland Regiment, with 
206 more enlisted and under training at St. John's, while there 
were 1,551 Naval enlistments or a total of 4,937 out of a population 
of 242,000. During the War up to this time the total casualties 
of the Regiment were 235 men killed, 590 wounded and 143 miss- 
ing. They had seen the most strenuous service of the War in Gal- 
lipoli (88th Brigade of the 29th Division), endured a climate to 
which they were utterly unsuited, and proved their metal in many 
a fight where, as Brig.-Gen. D. E. Cayley reported, they showed "a 
splendid spirit and readiness of resource." The Regiment claimed 
to have reached the nearest point to Constantinople a hill which 
they called Caribou and they had the honour of being the last 
unit to leave the Peninsula. 

Afterwards they were sent to France and took part in the Bat- 
tle of the Somme. On July 1, at a point near Beaumont-Hamel, 
the Newfoundlanders drove forward after British troops in two 
advances had been wiped out by the deadly machine-gun fire. The 
first line of German trenches was reached but the Regiment had 
suffered so severely that it could not advance further. It was said 
long afterwards that over 100 were killed, large numbers wounded, 
and 150 officers and men missing who were never traced. Amongst 
the officers killed were four cousins of a well-known Island family 
E. S., W. D., B. P., and G. W. Ayre. Capt. Bruce Reid, son of 
Sir W. D. Reid, who originally had helped to equip the Regiment, 
also was killed. 

He had joined as a private and been promoted for bravery in 
Gallipoli and two days before the fatal battle wrote to his father: 
' ' I want you to know that whatever happens to me in the next few 
days that you need not worry about me: I am glad that I joined 
up, and if it is my luck to go under I shall go endeavouring to do 
my part as any man who is worth his salt would do at a time like 
this." Field Marshal Sir Douglas Haig cabled to the Governor of 
the Island that: ''Newfoundland may well feel proud of her sons 
for the heroism and devotion to duty they displayed on July 1, 
which has never been surpassed. Please convey my deepest sym- 
pathy and that of the whole of our arms in France in the loss of 
the brave officers and men who have fallen for the Empire, and 
our admiration for their heroic conduct. Their efforts contributed 
to our success and their example will live." Other tributes fol- 
lowed, the London Daily Mail correspondent declaring on July 14 
that "you have done better than the best." Three months later 
the Regiment had another chance at an unnamed position and the 
correspondent of the London Times (Nov. 11) described the result: 

Less than half the normal strength of the battalion went into action over 
the parapets and reached a German trench 400 yards away. The trench was 
held in strength by the enemy, who stayed to meet them. When the trench was 
ours there was hardly a Newfoundlander's bayonet which was not red with 
German blood, The trench was full of enemy dead. Those who were not dead 



were prisoners. Then came the counter-attacks. The little force spread out, 
held the trench, which was normally a front for two battalions, and beat off 
counter-attack after counter-attack. When night fell the Newfoundlanders 
were very tired, but very satisfied. 

Amongst the casualties of this period were Pte. H. H. Good- 
ridge, son of an ex-Premier of Newfoundland, and Capt. James J. 
Donnelly, whc had won the Military Cross in the Dardanelles. 
Honours bestowed upon troops from the Island during this year 
included an M.C. for Capt. J. W. March and a Bar to the Military 
Cross for Capt. Bertram Butler, M.C. Sir Edward Morris, Premier 
of Newfoundland, was in London during July and in France not 
long after the first Newfoundland brush with the enemy. In Paris 
he met the President and M. Briand, the Premier, and paragraphs 
afterwards appeared in various Canadian papers saying that when 
peace came Newfoundland would get the long-desired French 
islands of St. Pierre and Miquelon lying off the south coast of the 
colony. Meantime the Island Government had appointed a Pen- 
sions and Disabilities' Board which was to provide for the soldiers 
discharged on account of medical unfitness, and the dependents of 
those who died on active service. 

The Board was, also, to deal with cases in the Newfoundland 
Naval Reserve, to the extent of levelling up to the same scale as 
that provided for the soldiers, the allowances made by the Admir- 
alty. The Hon. P. T. McGrath, President of the Legislative Coun- 
cil, was appointed Chairman and the members included J. A. Clift, 
K.C., representing the Opposition, and Hon. M. P. Cashin, the Gov- 
ernment, in the Lower House, while the Hon. M. G. Winter and 
C. P. Ayre represented business interests. In August, it may be 
added, a cheque for 1,000 was received from Lord Rothermere, 
Chairman of the Anglo-Newfoundland Development Co., for the 
Island War Contingent Comforts. On Apr. 7 Hon. A. B. Morine, 
K.C., who had returned to Newfoundland and re-entered politics 
after some years' absence in Canada, announced his final retire- 
ment from the Assembly and intention to live permanently in the 

Other incidents of the year included the retirement of Hon. 
James Kent from the Opposition Leadership ; on Dec. 13 the Pro- 
hibition Act became operative and stopped the import, manufacture, 
or sale of intoxicating liquors of every kind within the Colony, 
except for medicinal, manufacturing, or sacramental purposes 
while the appointment of a Public Controller to look after medicinal 
prescriptions and the cutting off of 50 bars and $400,000 of revenue 
was announced; following his re-election the Hon. R. A. Squires, 
K.C., Minister of Justice, and Grand Master of the Island Orange 
Order, addressed the Orange Royal Black Chamber of British 
America (Toronto, July 25) and expressed the hope that "genera- 
tions now unborn may not look upon the tragedy of the 20th cen- 
tury as a mere waste of human life and effort but, rather, as a 
great convulsion of Nature out of which has sprung a nobler and a 
truer civilization and the era of permanent peace. ' ' 

An arrangement was made by which the British Admiralty 


aided the shipping shortage of Newfoundland and supplied a num- 
ber of steamers to take paper and pulp to England, and on their 
return to bring cargoes of salt for the fisheries and of coal; the 
appointment (Oct. 25) of Hon. J. A. Robinson, M.L.C., as Post- 
master-General was announced and the death in Montreal on July 
20 of Hon. E. M. Jackman, for nine years Minister of Finance in 
the Island; on Sept. 20 Sir Edward Morris told a London audi- 
ence that there were large deposits of minerals in Newfound- 
land including iron, copper, asbestos, and oil, but that capital was 
necessary and that Lord Northcliffe had made a splendid beginning 
in that direction. 

India, while still a mighty problem in myriad 
India and forms, became during 1916 a settled equation as to 

fnthlwli 0a t ? le War - In that connection, and so far as the dim 
during 1916 light of censored news would permit to be seen, the 
record was marvellous a splendid tribute to the past 
policy and present prestige of Great Britain, a remarkable illus- 
tration of passive unanimity or general acceptance, amongst 300 
million persons, of the view that Britain was going to win the 
War and that India's place, in some vague and shadowy way, was 
with the King-Emperor and against his enemies. In such a great 
mass of population, with its infinite variety of languages, races, 
castes, creeds, opinions, hatreds, superstitions, customs; its conflict- 
ing racial qualities of courage and endurance, physical feebleness 
and sinuous strength, its autocratic rule or exotic democracy, its 
Oriental subtleties and deceitfulness or friendships to the death ; 
there could be no concentrated public opinion, no concrete patriot- 
ism of the Western type. Hence the futility of comparisons where 
there are no similar bases and no elements of agreement. 

It is true that England had gradually equipped the vast coun- 
try with railways, canals and roads, and had built up for it a great 
trade, growing industries and a splendid financial system; had 
eliminated much of starvation and suffering, through failure of 
crops, by constructing irrigation works at enormous cost ; had given 
to its millions internal peace and protected the people against the 
tyrannical turmoil of earlier days or the frequent invasion of their 
frontiers; had built up a splendid educational system of schools, 
technical training and universities and had provided a Judicial 
system of remarkable strength and honesty while establishing a 
Civil Service which was incomparable for honour and integrity. But 
there was and could be no concrete presentation of these results to 
the average ignorant native; one half-educated and wholly-vain 
Hindu product of an English College in Calcutta could teach more 
sedition in a day than a year's work of all these influences could 
suppress; one flashy native paper, under a freedom utterly un- 
fitted to the Oriental mind, could do more mischief in a week than 
a great statesman could remedy in a year. Yet in this fundamental 
crisis of British life and rule the minor things seemed to be swept 
away; the broad benefits of British liberty and government to be 
vaguely but sufficiently understood by such portion of these teem- 
ing millions as had anything to do or say about it. 


As a matter of fact one-fifth of the population was under the 
direct rule of Native Princes with only an indirect guidance by the 
British .Resident at each Court. By the constitutional reforms of 
Lord Morley and Lord Minto the Legislative Councils in India, of 
which there were now ten, one attached to the central Government, 
and one in each of the big Provinces, had been greatly enlarged 
and their functions materially extended. The size of the Councils 
was nearly trebled, and in place of 39 elected members there were 
over 170 ; while the electorates of the former Councils had only the 
right to recommend the candidate of their choice for appointment 
by the head of the Government, an elected member of the new 
Councils sat as of right. 

Not only were local administrative bodies permitted to elect 
representatives to the Councils, but the privilege was also granted 
to the landholding and commercial communities, to the Universities, 
and to special Mohammedan electorates. The functions of the 
Councils, too, were widened, and they were no longer confined to 
the work of making laws; the members were given a voice in set- 
tling the budget of the year in place of the right to criticize after 
it had been settled ; they could put questions to the Executive Gov- 
ernment and move resolutions on matters of public interest. Still 
wider was the sphere of influence which local self-government had 
attained. The country was covered with a network of local and 
municipal boards and corporations, constituted on a representative 
basis and exercising self-governing powers. These bodies were not 
free from official control, but the policy was to relax it as the level 
of public morality and public spirit rose.* Lord Hardinge, who 
retired in March, 1916, from the Viceroyalty and was succeeded by 
Lord Chelmsf ord, did certain things of great importance to India : 

(1) He supported boldly and, in the main, successfully the claims of 
British Indians in South Africa. 

(2) Urged a plan of reciprocal action and conciliation in the differences 
between India and other parts of the Empire as to migration. 

(3) Eequested the British Government to allow Indian forces to take an 
active part in the world-war. 

(4) Approved the Legislative Council's request for representation of 
India in the Imperial Conferences. 

(5) Recommended abolition of the system of recruiting Indian labour 
by contracts of indenture which often touched the slave-line when the Coolies 
reached Jamaica, Trinidad, British Guiama, Figi or Dutch Surmain. 

Speaking to his Council for the last time on Mar. 25 Lord Hard- 
inge said : ' ' During the past few months I have seen mention made, 
in speeches at meetings in the country and in the Press, of self- 
government, Colonial self-government, and Home Rule for India. I 
have often wondered whether those speakers and writers fully real- 
ize the conditions prevailing in the Dominions, such as Canada or 
Australia, which render self-government possible. I do not for a 
moment wish to discountenance self-government for India as a 
national ideal, but we should do our utmost to grapple with reali- 
ties, and lightly to raise extravagant hopes or encourage unrealiz- 
able demands can only tend to delay and will not accelerate poli- 

* NOTTS. See Statement made to United States press representatives by Lord Isling- 
ton, Under-Secret ary for India, June 4, 1916. 



tical progress. I know this is the sentiment of wise and thought- 
ful Indians. " As to the War he spoke clearly : 

We do not feel the shock of battle here as the nations feel it in Europe, 
but we have had ample evidence of German designs to create trouble in India, 
which have so far proved abortive, based as they were on the fallacy that 
India would be disloyal to the Empire. During the past 20 months of war, 
the people of this land have displayed a loyalty and patriotism deeply appre- 
ciated by the Empire at large, that have been beyond all praise and have 
entirely justified the confidence and trust that I reposed in them. Heads of 
Government have told me that never in their experience have the relations 
between the Government and the people been closer or of greater confidence, 
and I readily believe it. When I hear pessimistic prophecies or apprehensions 
as to the future of India, I ask myself who, 20 years ago, would have predicted 
the magnificent loyalty of the ruling Princes and the people of India which we 
have seen since the outbreak of the W r ar? None ever doubted the valour of 
the Indian Army, British and Indian, but who would have said 20 years ago 
that it would be possible to send out of India to the different theatres of war 
army after army of brave and experienced soldiers? When it is remembered 
that the largest expedition that ever left the shores of India before the present 
war numbered only 18,000 men, and that since the outbreak of the War India 
has despatched about 300,000 soldiers overseas, and has contributed several 
million pounds' worth of war materials to the Empire, I think we have 
everything to be proud of. 

On his return to London Lord Hardinge reiterated his tributes 
to Indian loyalty and stated in a press interview on May 20 that: 
"We sent out of the country no less than 300,000 men to the various 
fields of the Imperial battle-line in France, Egypt, China, Mesopo- 
tamia, East Africa, Gallipoli and even the Kamerun. These con- 
sisted of both Indian and British troops. When it is remembered 
that the British Army of occupation usually numbers some 73,000 
men and that at one time, for a few weeks, there remained only a 
handful of British troops, something between 10,000 and 15,000 
men in a country with a population of over 315,000,000, one can 
realize that such a course of action would have been foolhardy in 
the extreme had there been any real foundation for the reports of 
widespread and serious disaffection, spread from enemy sources." 
Mr. Austen Chamberlain, Secretary of State for India, in a press 
interview on Apr. 14 had anticipated some of these statements: 
"India, instead of being a cause of anxiety, has been a substantial 
help to the Empire in time of need. She was able to send troops 
to aid in the great battle of Ypres and in those critical days when 
the Germans were striving to reach Calais. She has, also, sent 
troops to Egypt, Gallipoli, East Africa, Mesopotamia, Persia, and 
China. No less than twenty-one regiments of Indian cavalry and 
eighty-six battalions of Indian infantry, in addition to the troops 
placed at the disposal of Government by the rulers of the Indian 
native States, have been fighting the battles of the Empire far 
beyond the Indian borders. These have been despatched, com- 
pletely equipped, and, in addition, drafts more than filling up the 
vacancies caused by casualties, have been regularly forwarded." 

In Paris on Anr. 18 the Sultan Aga Khan, Spiritual head of 
many millions of tne Islamiah Moslems of India and other parts of 
Asia, told the press that : ' ' People attach over-much importance to 
reports of Indian sedition, which is really due to an insignificant 


handful of agitators. The country as a whole is contented and 
loyal, and fully satisfied with English rule, the benefits of which 
it appreciates. The attempts by German gold to stir up religious 
ill-feeling among the Indian Moslems have been perfectly fruitless. 
My people cheerfully fight their Turkish co-religionists in Mesopo- 
tamia or Gallipoli, just as fellow-Christians kill each other in 
France." On Oct. 13, in this general connection, H. E. Lord 
Chelmsford said a significant thing at Simla to a correspondent of 
the U. S. Associated Press: "Go wherever you please throughout 
the length and breadth of India. Study our work and study our 
difficulties. No sentry will bar the way and no secret agent will 
shadow you. Talk to whom you please ; see what you please ; do 
what you please, and then write what you please. In India we have 
nothing to conceal." 

Despite these conditions and facts a hostile under-current 
found expression and encouragement from time to time in the 
subtle, veiled utterances of a Lajpat Rai, a Sir Babindranath 
Tagore, or some other Hindu visitor to America ; in the attempted 
circulation of writings such as those of W. J. Bryan or Mrs. Annie 
Besant in India; in the ever-present Bengali love for plots and 
sedition and conspiracy ; in the work of German missionaries illus- 
trated in the sermon preached by Dr. Conrad at Berlin (Jan. 17) 
before the Kaiser and 66 of these apostles of German Kultur who 
had been expelled from India and of whom the speaker said that 
' ' all our missionaries prayed in India for the victory of the German 
Armies, but they gave of their very best to the country;" in the 
extreme demands of a certain class of agitators. A remarkable 
document was presented in the Autumn of this year to Lord 
Chelmsford and signed by 19 out of 22 elected non-official members 
of the Imperial Legislative Council. This Memorandum asked for : 

(1) In all the Executive Councils, Provincial and Imperial, half the num- 
ber of members should be Indians. The statutory obligation, now existing, 
that three of the members of the Supreme Executive Councils shall be selected 
from the public services in India and similar provisions with regard to Pro- 
vincial Councils should be removed. The elected representatives of the people 
should have a voice in the selection of the Indian members of the Executive 
Councils and for that purpose a principle of election should be adopted. 

(2) All the Legislative Councils in India should have a substantial 
majority of elected representatives. The franchise should be broadened and 
extended directly to the people, Mohammedans or Hindus. 

(3) The total number of the members of the Supreme Council should be 
not less than 150 and of the Provincial Councils not less than 100 for the 
major provinces and not less than 60 to 75 for the minor provinces. 

(4) The Budget should be passed in the shape of money bills, fiscal 
autonomy being conceded to India. 

(5) The Imperial Legislative Council should have power to legislate on 
all matters and to discuss and pass resolutions relating to all matters of 
Indian administration, and the Provincial Councils should have similar powers 
with regard to provincial administration, save and except that the direction 
of military affairs, of foreign relations, declarations of war, the making of 
peace, and the entering into treaties other than commercial, should be vested 
in the Government of India. As a safeguard, the Governor-GeneraHn-Council, 
or the Governor-in-Council, as the case may be, should have the right of veto, 
but, subject to certain conditions and limitations. 


(6) The Council of the Secretary of State should be abolished. The 
Secretary of State should as far as possible hold in relation to the Government 
of India a position similar to that which the Secretary of State for the Colonies 
holds in relation to the Colonies. 

(7) In any scheme of Imperial federation, India should be given, through 
her chosen representatives, a place similar to that of the Self-governing 

(8) The Provincial Governments should be made autonomous as stated 
in the Government of India's despatch, dated Aug. 25, 1911. 

(9) The United Provinces as well as the other major provinces should 
have a Governor brought from the United Kingdom with an Executive 

(10) A full measure of local self-government should be immediately 

(11) The right to carry arms should be granted to Indians on the same 
conditions as to Europeans. 

(12) Indians should be allowed to enlist as volunteers and units of a 
Territorial Army established in India. 

(13 Commissions in the Army should be given to Indian youths under 
conditions similar to those applicable to Europeans. 

Meantime, what of the War? The general facts of India's 
participation are obvious. There were 300,000, perhaps by the close 
of 1916, 500,000, of her troops in the various theatres of conflict; 
many millions of money had been offered by Indian Princes and 
accepted for specified campaign or other purposes; the Hindus 
raised and equipped the Bengal Ambulance Corps, composed en- 
tirely of Hindu doctors, stretcher-bearers, and hospital orderlies, 
and hospital ships were supplied for the British wounded. Lord 
Chelmsford told his Council on Sept. 7 that the Mesopotamia 
campaign, in which 6,000 Indian troops were captured at Kut and 
regarding the responsibility for which there was grave doubt as 
between Lord Hardinge in India and the British Cabinet at home, 
was to be investigated by a Royal Commission ; that India had in 
the past two years supplied and kept up to strength large forces 
in France, and had also sent troops and supplies to East Africa, 
Egypt, Mesopotamia, Muskat, and Aden and had, also, to maintain 
troops on the frontiers and conduct certain important operations 
there; that 2,600 combatant officers had been withdrawn from 
India, and, in order to replace these, the Indian Army Reserve of 
Officers had been raised from 40 to 2,000 ; that recruiting had been 
excellent, the number of recruits since the opening of the War 
having exceeded the entire strength of the Indian Army as it 
existed on Aug. 1, 1914 ; that 16 new transport corps or cadres had 
been formed and that the Marine had done splendid work with 171 
vessels chartered and fitted as transports and 78 steamers and many 
smaller craft purchased for Mesopotamia. 

As to the Mesopotamia and other forces a new arrangement fol- 
lowing the Kut episode was made by which the Chief of the Gen- 
eral Staff assumed responsibility for supplies and transport 
hitherto held by the Indian Government as well as for the direc- 
tion of operations. Meanwhile, Indian troops had been winning 
reputation with six Native officers and soldiers earning the Vic- 
toria Cross up to August, 1916, and 20 gaining the Military Cross ; 
on July 14 the Deccan Horse charged somewhere in the Somme 



battle beside the Dragoon Guards in what was described as a glor- 
ious fight; elsewhere they shared in the gallant defence of Kut-el- 
Araara, helped in holding Egypt against the Turks, and Aden 
against vigorous attack. The War-time finance of India was an 
interesting subject, and in view of the spontaneous generosity of 
Indian Princes, etc., it was currently supposed that large sums were 
being spent by the Indian Government on the War. As a matter 
of fact the Military and Naval expenditure of India was 19,896,113 
in 1913-14 arid 20,500,000 (according to Budget estimates) in 
1914-15, or practically the same as in the previous five years. The 
Hon. M. de P. Webb, C.I.E., an authority on Indian affairs stated* 
in November, 1916, that : ' * Although India has sent forward several 
Expeditionary forces and large supplies of munitions and mater- 
ials, Great Britain is paying for everything over and above India's 
normal peace-time outlay on military and naval services. These 
payments (September, 1914, to Mar. 31, 1917) will amount, approxi- 
mately, to 50,000,000." The Finance Minister of India in these 
War years was Sir Win. Meyer who bore a significant name and 
whose parentage was not recorded in Who's Who with a self- 
announced policy of "restricting war expenditure to the mainten- 
ance of efficiency and the protection of this country. ' ' 

In medical men and equipment Lord Chelmsford stated on 
Oct. 20 that India had done more than well. "There were now 
serving Overseas 40 field ambulances, six clearing hospitals, 35 sta- 
tionary hospitals, and 18 general hospitals. The personnel pro- 
vided amounted to 258 officers of the R.A.M.C., 704 Indian medical 
service officers, 40 lady nurses, 475 assistant surgeons, 854 sub- 
assistant surgeons, 724 British nursing orderlies, 2,345 Indian 
ranks, and nearly 20,000 Indian followers. In Munitions, also, 
great progress was made. It was stated in January of this year 
that Government factories were going full blast, while all the work- 
shops of the great railway systems of the country were similarly 
engaged, and most of the big private firms were lending their aid. 
Exact facts are not available but it would appear that progress 
continued steadily. It was known early in the year that 200 firms 
and associations had lent their machinery to the Government free 
of charge. To the Central Indian War Relief Fund $3,300,000 was 
subscribed up to the close of 1916 and many other Funds were con- 
tributed to with generosity. India also exported large quantities of 
raw materials to the Allies, especially jute and saltpetre, while 
Burma supplied wolfram (Tungsten ore). On Dec. 20 a Message 
from the new Prime Minister (Mr. Lloyd George) was despatched 
to the Viceroy of India as follows : 

On taking up the high office with which His Majesty the King-Emperor 
has charged me, I send to your Excellency, on behalf of the people of this 
country, a message to the Princes and peoples of India. We are determined 
that the sacrifices already made shall not be in vain and that the great 
struggle on which we have entered shall be waged to a triumphant issue. We 
realize that yet further efforts are needed both in men and money and that 
the whole might of the Empire must be thrown into the struggle. The splen- 

*NOTE. Article in British Empire Review. 


did contributions to the common cause already made by the Princes and 
peoples of India give us sure confidence that their determination is no less 
high than ours, and that however long the path to final victory, we shall tread 
it side by side 

The War continued, all through the year, to be a pivotal sub- 
ject of thought and work amongst the ruling classes. On Nov. 1, 
for instance, Lord Chelrnsford met in conference 46 of the principal 
Chiefs of the native States of India, including the rulers of Kash- 
mir, Kutch, Cochin, Gwalior, Kolhapur, Jaipur, Baroda, Bikaner, 
Junager and Patiala and the Begum of Bhopal. To these Princes 
of the Empire His Excellency said : * ' Your Highnesses have stood 
as true pillars of the Empire, and both by personal service in 
the field and lavish contributions of money and material you have 
earned a place in the hearts of the British people which will re- 
main for all time." As to the future: "It may be that in time to 
come some constitutional assemblage may grow out of these Cou 
ferences which will take its place in the government of this great 
Empire, but for the moment I would ask you to content yourselves 
with the prosaic but useful task of advising the Government of 
India in certain specific matters." Nearly every section of the 
India Office at home had, by this time, become a War department 
dealing with passports to India, the movements of Indian troops 
from one area to another, the presence of large numbers of wounded 
and invalided officers of the Indian Army, stores and the supply 
of war, railway and other material to India, the "blockade" con- 
trol of exports of jute, rice, cotton, etc., from India to neutrals. 

These references to Indian conditions may conclude with the 
statement that during 1916 Canada was visited by various mis- 
sionaries or business men from that Empire including W. G. 
Brodie, Calcutta, E. C. Carter of the Indian Y.M.C.A., Eev. E. 
H. A. Haslam of the Punjaub, Bishop J. W. Robinson of the U. 
S. Methodist Episcopal Church at Bangalore, M. A. Brooks of the 
Y.M.C.A., N. M. Marshall, Bombay, Rev. Dr. E. V. Kelly of the 
Baptist College, Rangoon who one and all spoke with enthusiasm 
of the loyalty of India as not passive but active. Rustom Rustom- 
jee of Bombay, the eminent Parsee speaker who, in 1915 and 1916, 
addressed many meetings in Canada and the United States, sum- 
marized at Winnipeg (Apr. 6) the situation as follows: 

India has a population numbering more than 322 millions of people. It is 
composed of several sets of peoples, with different ideals, aspirations and am- 
bitions There are 700 Indian Princes, ruling more than 65 millions of people. 
Gentlemen, these Princes of India have never swerved to the right or to the 
left from devotion and loyalty to the British Crown ever since its power was 
consolidated in 1857. The next most important element in India is a seething 
mass of Indian agriculturists, upwards of 200 millions in number. These 
men are loyal. Their loyalty has been proverbial, and yet they are so ignorant 
they do not know and do not care to know anything about the Government, so 
long as it is kind and ready to remit the land tax whenever the rains fail. 
After the agriculturists come 72 million Mohammedans, comprising the third 
integral part of the population of India. All through this period of stress and 
storm, not a single Mohammedan has been found guilty of sedition or dis- 
affection. In India, the rapidly growing number of educated Hindus are 
divided into two parties the constitutionalists, and the extremists or nation- 
alists. The former are strong and influential, and the first article in their 
creed is the permanence and consolidation of British sovereignty in India; and 


their programme of work is the gradual improvement of the British adminis- 
tration and the bettering of conditions of the sons of the soil. The extremists 
form a minority, clamouring for Home Eule for India. They make a great 
deal of noise. 

In South Africa during 191G many roads political and mili- 
taryled to German East Africa. That great sweep of 384,000 
square miles of tropical country with about 8,000,000 native popula- 
tion was more or less prepared by its small German population and 
compact forces for a war in which France and its French colonies 
were involved ; but it was not prepared to fight the British colonies 
Uganda and British East Africa in the north and Northern 
Rhodesia and South Africa on the south, with, later on, the Portu- 
guese and Belgian possessions plus British sea-power and the 
blockade of its 300 miles of coast line which was proclaimed on Feb. 
28, 1915. The South African authorities had taken their time in 
the matter. They had first of all to deal with the local, German- 
inspired, rebellion which was crushed and then in 1915 General 
Botha, Prime Minister of South Africa, conquered German South- 
west Africa with its 322,000 square miles of territory. 

Strengthened in political power and personal prestige by this 
situation, holding a balance with rare skill in the difficult racial 
conditions of the Union, General Botha then turned to the Eastern 
possessions of Germany where, upon the frontier, a brigade of In- 
dian troops under Major-General Tighe, and a battalion of South 
African Militia had been holding British East Africa against attacks 
from 2,500 German troops aided, as they soon were, by native en- 
listments to a total of 14,000 men or more. At the beginning of 
1916 the Germans held Taveta in British territory and, later on, 
acquired control of the Lake Tanganyika region but by that time 
General Tighe had two brigades under him with additional forces 
on the way from South Africa. When the Union took up the cam- 
paign in earnest it was natural that Lieut.-Gen. Jan Christian 
Smuts, Minister of Defence, who had commanded one of the Armies 
in Southwest Africa, should be placed in command of forces which 
then included the 1st, 2nd and 3rd South African Brigades and 
the King's African Rifles (Negro) as well as the Indian forces. 

An attack upon and capture of the Kilimanijaro region followed 
with an advance over the Usambara highlands and the occupation 
of Tanga on July 7 ; Bagamoyo was then captured and, on Sept. 4, 
Dar-es-Salaam, the capital of German East Africa, was occupied 
after a combined naval and military attack. Meantime, in other 
parts of this difficult and most inaccessible country, Belgian and 
Portuguese troops were skirmishing and advancing from time to 
time while General Van Deventer with a Union column, and Gen- 
eral Northey with a Rhodesian column, carried out advances along 
other lines agreed upon. A series of fights with the ever-retreating 
Germans and their native auxiliaries followed, the most of their 
artillery was captured, the junction of Generals Smuts and Deven- 
ter near Kissaki still further hampered their movements and sup- 
plies, while fresh troops were sent from the Coast to take them in 
the rear. 


Many small places were occupied until by the close of the year 
only one small German force was left and it was confined to an 
unhealthy strip of territory in the southeast corner, covered with 
thick brush and very swampy, with malaria or surrender inevit- 
able. Practically the last of Germany 's Colonies had been captured 
by the troops of a Dutch-governed Union from which the Kaiser 
had expected great things of a different nature; in two years vast 
regions three times the size of Germany itself had been taken pos- 
session of by Generals Botha and Smuts; British liberty of life 
and institutions and British sea-power, which made these expedi- 
tions possible, had won again. As to General Smuts he had entered 
this last campaign with a high reputation to which The Times re- 
ferred upon his appointment (Feb. 10) as including "great intel- 
lectual powers, industry and an almost uncanny insight into the 
essentials of any problem ; " he came out of it with enhanced prestige. 
It had been a prolonged campaign in great regions of bewildering 
physical difficulties jungle, swamps, mountains, deserts as well 
as floods, malaria, drouth, tropical rains and heat, wild beasts and 
wilder poisonous insects of varied nature, and savage natives, made 
worse by their harsh and hardened masters. 

In a country such as the Union, where General Hertzog, with 
clearly anti-British tendencies, held a strong portion of the Boer 
vote and where General De Wet, on his release from gaol for his 
rebel leadership, had not adhered to his pledge as to making dis- 
turbing or disloyal speeches, the greater prestige won by General 
Smuts was a very important factor in politics. The response to his 
recruiting appeal early in 1916 had been the prompt enrollment of 
10,000 men for service in the East and Overseas ; in May some of 
the troops who had marched through German Southwest Africa 
were serving as a Battalion in Egypt and winning distinction be- 
side the Anzacs ; an estimate of the total troops who had left South 
Africa to take part in the Empire's wars at this time was 50,000 
and amongst them was Jasper Kruger, a nephew of the late Trans- 
vaal President, who had volunteered for service in France and was 
trained in England; in August General Botha returned from a 
visit to the Front in East Africa with an urgent appeal for 900 
recruits a month to keep General Smuths' force effective but this 
was held over as not absolutely essential so as to obtain the men 
needed to bring up the Brigade in France to its full strength after 
the Delville Wood losses. Meanwhile South Africa had won honours 
in France as well as Canada, Australia and India. The South 
African Brigade during the British advances at the Somme was 
given Delville Wood to storm and hold one of the most difficult 
propositions of the struggle. To them it was what Pozieres proved 
to the Australians and Courcelette to the Canadians. The London 
Times correspondent of Nov. 9th described the battle as follows: 

Their defence of the Wood is one of the classic episodes of the War, 
and perhaps no war has ever produced a finer incident than that charge of 
July 18. After a long day's shelling the Highlanders, having fought for 
four days, shattered in numbers and worn in body and soul, still clung to 
the trench which they had won four days before, when out of the fringes of 


the wood came the South Africans, borne back by overwhelming numbers 
of the enemy. Posts of the South Africans still held in the Wood, and those 
who were forced back, when they came to the Highlanders' trenches, dropped 
into them, and, when the supreme moment came and the great tide of Germans 
rolled towards them, the ragged regiments of Scot and South African together 
went forward to meet it in the open, rather than be smothered in the trench; 
and, outnumbered by five or six to one, dead tired as they were against fresh 
troops, they broke the enemy and drove him back and dug in on a new line 
in advance, which the enemy for all his numbers, did not dare to attack again. 

The casualties were said to have been fully one-half of the 
Brigade. Their one grievance at this time arose from a lower rate 
of pay than other Colonial troops the Imperial rate of one shilling 
a day compared with three or four shillings in other cases and 
three paid to their own comrades in East Africa. Later on the 
10,000 South African natives whom the Government undertook 
to recruit under military conditions as labourers in France, on 
docks and behind the lines generally, were to receive 2 shillings. 
The fact was that General Hertzog and his Nationalists kept the 
pay down so as to discourage recruiting for Europe and the Gov- 
ernment did not desire to take direct issue with them on a detail 
or minor point. Even upon the broad issue of paying the troops 
at all the Government had to fight. 

In the House of Assembly on Mar. 17 General Hertzog moved 
that no South African money should be paid out in connection 
with the War, and declared that the country would rue participa- 
tion in any phase of the European struggle. General Botha warmly 
reiterated the Government's policy to see the War through. He 
hoped that it would not be said that South Africa was the only 
country under the British flag which had backed out of its share in 
the War. Sir Thomas Smartt, Leader of the Opposition, repeated 
the Unionists ' assurance of support to the Government 's war policy. 
Eventually the motion was altered to refer to East Africa only, 
and it was then negatived by 79 votes against 21. Besides the force 
of labourers mentioned it was arranged to recruit other black troops 
toward the end of the year from what Sir H. H. Johnston 
described as a reservoir of 1,500,000 splendid soldiers for service 
in Egypt and Mesopotamia. It was said that 40,000 Zulus alone 
the best and bravest of the natives were anxious to fight for 
Britain. The following South African honours were awarded dur- 
ing the year : V.C., Pte. Wm. F. Faulds ; D.S.O., Lieut.-Col Edward 
F. Thackeray, C.M.G., and Capt. L. W. Tomlinson; Knighthood, 
Sir W. W. Hoy, General Manager of Union Railways. 

As to general conditions Hon. Henry Burton, Minister of 
Finance, had a revenue of 16,620,000 and expenditures of 16,- 
257,000 in the year 1915-16, while for the year beginning Apr. 1, 
1916, his estimated revenue was 16,336,000 and expenditures 
17,758,000 with a deficit of 1,422,000 which was to be met by a 
war-levy on gold mines, additional postal charges, increased Income 
tax, excise duties and customs, an export duty on diamonds; the 
output of the Rand gold mines reached in 1915 the large figure of 
38,639,095 or 40 per cent, of the world's total, with an expenditure 
in the country of 25,000,000 of working costs and dividends of 
7,824,000 ; the trade of the Union included to Dec. 31, 1915, Im- 


ports of $33,833,542 and Exports totalling 16,859,373 without 
the gold which in 1913 amounted to 37,589,000 and in 1915 to a 
slightly larger figure of production ; the increased cost of living in 
1915 over 1913 was stated in official figures regarding standard 
items of consumption as 2 Is. lid. monthly or 8 -24 per cent. 

The trade of the Union with the British Empire was 67 per 
cent, of the whole and in 1916 a Preference or rebate on goods was 
given the United Kingdom, Australia, Canada and New Zealand; 
in addressing the Johannesburg Chamber of Commerce (Apr. 11) 
E. Chappell, the President, declared that everything in South 
Africa at the outbreak of war had depended upon keeping the gold 
mining industry in full working order and that the successful re- 
sult, the maintenance of general business, and the carrying on of 
their campaigns had all turned upon the question of sea-power and 
the strength of the British Navy; the output of diamonds in 1915 
was only 400,000 compared with 11,389,000 in 1913 and that of 
coal (1915) was 2,121,836; the earnings of the Railways in 1915 
were 12,197,890 and the expenditures 7,271,877, the population 
of the Union was 5,046,585 and the deposits in the Banks 51,316,- 
926. The Government assumed the administration of Southwest 
Africa during the year and the Public Debt increased from 117 
to 151 millions sterling or $170,000,000. 

The picture of the greatest free Empire in the 
The British world's history, fighting in the greatest of world- 
ulm'iin the* wars with a purely voluntary system as to men and 
war money, and the nations within its bounds, was one 

which posterity will appreciate more than did the 
peoples of the period involved. Even when limited compulsion was 
resorted to in Britain, after the greater demands for men had all 
been met, it was evolved and carried out by leaders who beyond 
all question represented the masses their democratic aspirations 
and policy as well as their War loyalty. The Dominions were 
treated as absolutely free entities doing what they desired in their 
own way and at their own time as equals working for a common 
end in a union of free peoples. It was an inspiring sight and not 
all the draggled ends of local controversies such as Registration or 
Conscription or Home Rule could detract seriously from the gen- 
eral result or mar the picture as a whole. With its ever-increasing 
area of 14,000,000 square miles and population of 434 millions, 
with an Imperial wealth of at least 160,000 million dollars,* a total 
popular income in British countries of about 20,000 millions,! 
normal public revenues in the countries concerned of 3,500 mil- 

*NOTS. The usual figures given in press, etc., deal only with Great Britain. See 
1914 volume, page. 20. 

fNoTE. The generally accepted estimate is as follows: 

United Kingdom $12,500,000,000 

Canada 1,750,000,000 

Australia 1,250,000,000 

South Africa 250,000,000 

k New Zealand 275,000,000 

India 3,500,000,000 

Crown Colonies and Protectorates 750,000,000 

Total $20,275,000,000 


lions, a trade of 10,000 millions and a gold accumulation of 1,400 
millions at the beginning of the War, the British Empire was in a 
position to do much if it could only have time to organize and 
develop its resources ; and that time . was given it by the Royal 
Navy. Within its bounds were the greater wheatfields of the world, 
the greatest gold mines and supply of the precious metal ; the chief 
diamond fields, the main wool production, the root of the greatest 
of all industries iron ; enormous potentialities of every description 
in land-cultivation and production of every conceivable kind. 

The result of war policy and organization at the close of two 
years and five months of conflict was, approximately, an armed 
military force of 6,000,000 exclusive of casualties and nearly 
all raised by voluntary enlistment; a total financial expenditure or 
war-cost of 20,000 millions or, deducting payments out of revenue 
and loans to Allies and Dominions, about two- thirds of one year's 
income of the people of the Empire ; the voluntary contribution of 
money to Patriotic and War Funds of at least 300 millions; pro- 
duction in every part of the Empire of great quantities of muni- 
tions and war supplies with, in the case of Britain, a concentrated 
and multiplied product of artillery, guns, etc., which was one of 
the marvels of the period ; the maintenance of a trade which covered 
all the seas with shipping and grew greater even while submarines 
were taking steady toll of ships; a huge British industry devoted 
to the construction of battleships, airships and aeroplanes, trading 
vessels, the invaluable and invincible trawler, destroyers, etc., which 
was effective beyond all experience; a Navy which held the seas 
secure from German warships, German trade, German travel or 
German soldiers and even checked the desperate plunging of the 
undersea monster. 

What did the Dominions contribute to this War? Considering 
their white population of 14,000,000 and their isolation from the 
seat of war and even the heart of the Empire, they did admirably. 
In men* Australia, by the close of 1916, had 300,000 at the Front 
in Egypt and France, or in training; Canada had 400,000 on the 
Western front or in England and Canada training; New Zealand 
and Newfoundland had 75,000 in active service or under prepara- 
tion ; South Africa, in its occupation of Southwest Africa, its cam- 
paign in East Africa, its troops at the Somme and under enlist- 
ment at home, had about 75,000 under arms. If India, with its 
forces in Mesopotamia, East Africa, Egypt and the Kamerun, 
were included another 400,000 would be added to a total which was 
at least 1,250,000 for the external Empire alone. 

Without compulsion, without even public urgency on the part 
of the greatly-strained War authorities of Britain, Hindus and 
Parsees, Sikhs and Mohammedans from India, Canadians and Aus- 
tralians and New Zealanders and South African English and 
Boers, had fought side by side in France; squatters of Australia 
fraternized with Maoris from New Zealand and Boers from South. 

*NOTE. Total number without considering casualties. 



Africa and Bengali Lancers from India at the foot of the Pyramids ; 
Indian and British and Australian troops fought together in Meso- 
potamia or within the borders of Palestine; Indian troops helped 
Sir Charles Dobell to conquer the Kamerun, and the negroes of 
the King's Own (South African) Regiment aided the Boers and 
British to conquer East Africa. The West Indies, Fiji, Ceylon, 
Straits Settlements, Nyassaland and Uganda and Nigeria, all prof- 
fered men and money to the cause. And this amazing conglomer- 
ation of races and interests were fighting voluntarily and were 
transported freely over half the seas of the world by British Naval 
power. Meantime the Malaya and New Zealand, two Colonial bat- 
tleships, shared in the Jutland naval victory and brought their 
respective countries Admiralty cables of appreciation. 

In financial expenditure on the War Canada's part during this 
period was $500,000,000, Australia about $400,000,000, South 
Africa $200,000,000, New Zealand $100,000,000. The Indian Gov- 
ernment, as such, had as yet contributed little directly but Indian 
rulers, to some extent, made up for this in voluntary gifts to the 
King-Emperor which reached a total of $30,000,000, according to 
an official statement in the Commons on Mar. 1, 1916. In voluntary 
gifts to Patriotic Funds the response of the external Empire was 
generous. In Great Britain a splendid example was set by the 
raising of $75,000,000 for the relief of distress growing out of 
the War or the re-establbhment of soldiers returning from it, with 
the Prince of Wales Relief Fund as the chief means of service ; 
about $30,000,000 was raised in the external Empire for Patriotic 
Funds connected with the troops and their families. For sick and 
wounded soldiers or sailors the British Red Cross was the chief 
medium of collection and the estimated total to the middle of 1916 
was $30,000,000 at least a third of which came from the Dominions 
and dependencies. 

In the first two years of war $30,000,000 was raised in Britain 
for soldiers' comforts of every kind, with similar contributions 
(proportionately) raised in each of the Dominions, while through- 
out the Empire an estimated total of $100,000,000 was collected for 
the relief of peoples in other countries chiefly Belgium and France 
and to a much lesser extent for Poland, Roumania, etc. One organ- 
ization, the National Committee for Relief in Belgium, reported* 
British contributions to its cause as totalling up to Dec. 31, 1916, 
2,150,788 or $10,750,000. Of this $4,800,000 came from Australia, 
$2,440,000 from New Zealand, $350,000 from Canada, $140,000 
from South Africa, $150,000 from India, $37,000 from the West 
Indies and the balance from a great number of small British terri- 
tories. So far as estimates can be made Canada collected for these 
various Funds at least $50,000,000, Australia $30,000,000, New 
Zealand $10,000,000 and others in proportion with India apart 
from direct gifts to the King for military purposes totalling an- 

*NOTE. Through courtesy of W. A. M. Goode, Hon. Secretary, Mar. 5, 1916, who 
added that $120,000 more had come from Canada since Dec. 31st. 




other $50,000,000. The grand total was $350,000,000 at least and 
probably much more. During 1916 the following specific gifts or 
totals illustrate the process during the whole period in this respect : 

South Wales: Australia.To Patriotic Fund (Sept. 23) 

To French Relief Fund (Apr. 28) 

Government Gift of 4 Aeroplanes 

Popular Gift of 4 Aeroplanes 

For Australian Battle-plane Squadron .... 

Natives of Rewa Aeroplane Gift 

Low Islands 2 Red Cross Motor Ambulances 

Australia: Western . . i . . .British Red Cross Contributions 

Australia : Victoria Collected for War Funds by sale of Buttons 

Australia: Tasmania Ccntributions to British Red Cross 

New Zealand Canterbury Contribution to Red Cross .... 

" $75,000 a month to Belgian Relief Fund 

British Honduras Gilt to Belgian Relief 

Barbadoes Up-keep of Motor Ambulances 

Windward Islands For British Red Cross 

Bahamas War Contribution of 10,000 

Bermuda War Contribution of 2.450 a year for 15 


Leeward Islands War Gift to British Government 

Dominica War Contribution of 10,000 

Jamaica Local Aeroplane Committee 

British Red Cross Contribution 

" War Contribution of 60,000 a year for 

40 years 

Canada Saskatchewan Grain Growers' Association 

for Army (flour) 

Canada : Ontario British Red Cross Contribution 

Canada: Ontario Cheque for Munition Profits: F. W. Baillie, 

Canada : Nova Scotia Britis-h Red Cross Contribution 

Canada : Quebec British Red Cross Contribution 

Ceylon The Padikara Madaliyar for the Army .2 Motor Ambulances 

Women's Gift for a British Hospital .... $11,250 

" Legislative Grant of 100,000 a year for 10 


Malay States Local War Loan for British Government. 

Aeroplane Gifts since outbreak of War . . 

Annual War Contribution 

Presentation to Royal Flying Corps .... 

Kedah SuUan's Gift for Aeroplanes 

Hong Kong War Gift to British Government 

Popalar Contribution to British Red Cross 

Committee for Flying Corps Hospital .... 

Prince of Wales Fund 

Straits Settlements Legislative Grant of 200,000 a year for 5 

Cyprus For use of Troops 1,000 tons of Wood-Fuel 

India Unik-d Provinces War-Gift for Navy . 10 Motor Ambulances 

People of Bombay to British Red Cross . . $25,000 

Maharajah of Benares Nursing Home . . For 150 War Patients 

Rajah of Faridkot for Ambulances $5,400 

Durbars of Baroda, Bahawalpur, Faridkot 

and Kharsia Horses for Army 

Maharajah of Patiala For Red Cross ..... $6,400 

Rajah of Cutch Maintenance of Regiment 
























29 Aeroplanes 







South Africa 

.43 Armoured Aeroplanes from Punjaub. . 

. Punjaub Aeroplane Fund 

. Bengal Chambers of Commerce 

. Bengal Women's Fund for Hospitals .... 
.Maharajah of Bobbilli : War Gift to King 
.Maharajah of Bikauer: War gift to King 

. Natal Mercury Red Cross Fund 

. Witbank District Collieries 

.Fund for War Widows and Orphans 

Motor Battery 
and Ambulance 
100,000 Tons of 



Red Cross Gift to Wounded Anzacs 10,000 Cigarettes 

Investment in Government War Stock by 

Natives $25,000 

Transkei Investment in British War Loan 

(Chiefs and people) 25,000 

Gold Coast .To Imperial Aircraft Flotilla 30,000 

Legislative Grant for War 1,000,000 

War Contribution of 200,000 in 10 yearly 

installments 1,000,000 

Nigeria Government Assumption of part of British 

War Debt . 30,000,000 

.Gift of Residents for Aeroplane 7,500 


Zanzibar Additional War Gift to British Government $100,000 

Contribution to British Red Cross 20,000 

War Contribution of 10,000 50,000 

Mauritius Grant to British Government for War . . 330,000 

Other Contributions to War Funds 100,000 

" Aeroplanes for Royal Plying Corps 30,000 

Egypt British Red Cross Contribution '. . . 425,000 

Egypt and Soudan British Red Cross Personal Contributions 42,000 

East African Protectorate .Valuable gifts for Troops 3,531 Goats, Cat- 
tle and Sheep 

Nyassaland Contributions to Prince of Wales Fund . . $5,500 

Malta Contributions to British Red Cross 15,600 

Burmah War Contributions to British Government. 965,000 

Turks and Caicos Islands .War Contribution of 1,000 5,000 

The Empire Overseas Club: 86 Aeroplanes from British 

Countries 750,000 

Overseas Club: Tobacco for Soldiers and 

Sailors 900,000 

Overseas Club for Other Funds 550,000 

One result, and an inevitable one, of this partnership in war 
action and sacrifice was a strengthening of the principle of closer 
general union a more pronounced advocacy of closer relations 
amongst British statesmen who had hitherto feared to wound 
Colonial susceptibilities. Speaking in London on June 14 Mr. H. 
H. Asquith, with all his weighty responsibilities as Prime Minister, 
made this statement: "When the War comes to an end, when the 
reign of peace is re-established, we shall have to take stock, as an 
Empire, of our internal relations. " After a tribute to the Domin- 
ions in the War Mr. Asquith proceeded: "With such an Imperial 
record, it will never be possible, in my judgment, to revert to our 
old methods of counsel and of government. The fabric of the 
Empire will have to be refashioned and the relations not only 
between Great Britain and Ireland, but between the United King- 
dom and our Dominions, v;ill of necessity be brought, and brought 
promptly, under close and connected review." 

As Mr. Bonar Law put it at the West India Club in London 
(Sept. 13) : "This War, so far as our Dominions are concerned, is 
being carried on under conditions which never existed in the world 
before. It required and does require great good-will and good sense 
on the part of both the Dominions and the authorities at home to 
enable an arrangement to work by which one set of men should con- 
tribute lives and treasure and have no voice as to the way in which 
those lives and that treasure are expended. That cannot continue. 
There must be a change. The War has done more, I believe, than 
many generations in other directions could have done in welding 
the Empire together. We feel that we are one and it rests chiefly 
with the men of the Colonies and of the Dominions to find some 
method by which, in the future, the unity which has characterized 
us in the War will be found to be as durable when peace comes." 

Meanwhile the Dominions were being consulted upon every 
vital phase of the War and upon many of the steps taken; the 
Prime Ministers of Canada, Australia and New Zealand, when 
visiting England, were invited to attend meetings of the British 
Cabinet, the representatives of Australia and Canada attended the 
Paris Economic Conference as British Empire delegates, the Im- 
perial Government, in 1915, had pledged itself to consult with the 
Dominions as to terms of peace whenever that time came. In a 


press interview on Mar. 8, 1916, the Colonial Secretary (Rt. Hon. 
A. Bonar Law) said: "Of course I can speak for myself, only; 
but it is my hope that as the direct result of the great war may 
come the creation of an Imperial Parliament in which every one 
of the Dominions will have its full share of representation, allotted 
in accordance with population and resources." 

At a luncheon to Mr. Hughes of Australia (Mar. 9), after the 
latter had attended a Cabinet meeting, the Colonial Secretary was 
still more explicit; "There are no secrets while the Australian 
Premier is here and the Government and British people are ready 
to welcome the Colonies to their counsels. Where the Colonies give 
so much the present relations between them and the Mother-coun- 
try cannot be permanent. . . . The future will depend largely 
on the action of the Dominions themselves, for the Mother-country 
will welcome any scheme, almost, that is approved by them." On 
Mar. 15 Mr. H. L. Samuel, Home Secretary, at an Australian Din- 
ner said: "I speak from my own firm conviction when I say that 
the Mother-country is very ready to admit the Dominions into a 
share in the decisions of policy as soon as they desire such admis- 
sion. It is for them to decide whether, after the War, we shall be 
able to take a forward step in the evolution of our Imperial institu- 
tions." Lord Headley, an Irish Peer, suggested (May 3) a War 
Cabinet composed of 8 British statesmen and Messrs. Borden, 
Hughes, Botha and Massey. In July occurred a War visit to 
Britain of members of Dominion Parliaments which was arranged 
by a Committee of the Empire Parliamentary Association, headed 
by the Rt. Hon. A. J. Balfour as Chairman and Howard d'Egville 
as Hon. Secretary. The Delegates appointed by the Dominions 
were as follows: 
Can ada : A ustralia : 

Joseph E. Armstrong, M.P. Senator Stephen Barker. 

Senator N. A. Belcourt, K.C. Reginald Burchell, M.P., 

Senator William Dennis. The Hon. P. M. Glynn, K.C., M.P. 

Hon. Sir George E. Foster, M.P. Alfred J. Hampson, M.P. 

W. Erskine Knowles, M.P. Senator J. H. Keating. 

Senator A. C. P. Landry. Senator Hugh de Largie. 

W. Folger Nickle, K.C., M.P. Richard B. Orchard, M.P. 

Edgar N. Rhodes, M.P. A. Clayton Palmer, M.P. 

Senator J. H. Ross. The Hon. Josiah Thomas, M.P. 

F. H. Shepherd, M.P. Senator David Watkins. 

New Zealand: South Africa: 

The Hon. W. C. F. Carncross, M.L.C. H, C. Becker, M.L.A. 

Sir James Carroll, K.C., M.G., M.P. Senator A. J. Fuller. 

E. P. Lee, M.P. Colonel John Hewat, M.L.A. 

C. J. Parr, C.M.G., M.P. Charles P. Robinson, M.L.A. 

Newfoundland: Edward Rooth, M.L.A. 

The Hon. R. Kirby Bishop, M.L.C. Senator H. G. Stuart. 

J. A. Clift, K c., M.P. E. M. O. Clough. 

Every kind of function and visit and conference contributed to 
the activities and better knowledge of these Delegates during the 
tour and discussions which followed and lasted from July 1st to 
Aug. 1st. The visitors were welcomed on July 4 at a Parliamentary 
luncheon with Mr. Balfour presiding and contributing a charac- 
teristic speech of eulogy for "Empire efforts and the following 


statement as to the future: "I do not ask myself whether it will 
be wise or easy to modify the relations between the various parts 
of the Empire. I look forward to the problem with absolute con- 
fidence, whether we change it or leave it. As it is, this fact always 
remains : that we are bound fundamentally and essentially, because 
we enjoy the same common ideal of liberty and freedom and the 
same spirit of law and order." On the 7th the Delegates were 
received by H. M. the King who spoke at some length in tribute to 
the Empire's War sacrifices and declared that visits such as this 
should be fruitful and frequent : ' ' They will tend to consolidate the 
union of the Empire, which is consecrated by memories of common 
sacrifice and heroic determination to defend it." Sir George 
Foster (Canada) replied for the Delegates. 

At the close of the year and for the first time a British Prime 
Minister on assuming office formally recognized the fact that he was, 
in many things, acting for a world-wide Empire as well as for the 
United Kingdom. On Dec. 19 Mr. Lloyd George cabled to the Prime 
Minister of each of the self-governing Dominions a Message which 
declared that "there is no faltering in our determination that the 
sacrifices which we and you have made, and have still to make, 
shall not be in vain, and that the fight which we are waging together 
for humanity and civilization shall be fought to a triumphant issue. 
. . . The splendid contributions to the common cause already 
made by the Dominions give us sure confidence that their determina- 
tion is no less high than curs, and that, however long the path to 
final victory, we shall tread it side by side. ' ' In reply Sir Robert 
Borden for Canada voiced the opinion of all the Premiers when he 
declared that "we shall indeed tread the path side by side in full 
realization that the sacrifice, however great, is for a cause transcend- 
ing even the interests and the destiny of our Empire, and in 
supreme confidence that that path alone can lead to the ultimate 
triumph of democracy, liberty, and civilization." To these and 
many other British views of Empire policy an official imprint was 
given by the dispatch of Dec. 25 from Rt. Hon. W. H. Long, Colon- 
ial Secretary, to (1) the various Dominions and (2) to the Viceroy 
of India: 

1. His Majesty's Government invite your Prime Minister to attend a 
series of special and continuous meetings of the War Cabinet, in order to con- 
sider urgent questions affecting the prosecution of the War, the possible con- 
ditions on which, in agreement with our Allies, we could assent to its termina- 
tion, and the problems which will then immediately arise. Your Prime Minister, 
for the purpose of these meetings, would be a member of the War Cabinet. 

2. His Majesty's Government have invited the Secretary of State for 
India to represent India at these sittings of the War Cabinet, of which for 
that purpose I shall be a member. I desire the assistance of two gentlemen 
specially selected for the purpose in consultation with you as foreshadowed in 
Lord Hardinge's speech in the Legislative Council on Sept. 22, 1915. 

The Dominions' view of this question was a varied one but 
friendly, as to closer union in general, from all official sources and 
only keenly antagonistic amongst a section of the Nationalists in 
Soujh Africa and Quebec; with the expressed opposition of a few 
able newspapers in each of the Dominions which still adhered to 



anti-imperialistic opinions. Mr. Hughes, Premier of Australia, 
throughout his famous speeches in England during this year struck 
the highest note of Empire unity, the strongest chords of commercial 
policy. Perhaps the frankest statement of existing conditions and 
the essential need of change, of proof that the Dominions lacked 
one great element of self-government and could only obtain it in 
these days of world-powers and world-wide policies and ambitions, 
through a great Empire, was the speech delivered by him in Lon- 
don on June 23. A few extracts may be given: 

For all practical purposes, save one, the Dominions are really independent 
nations, bound to Great Britain only by ties of kinship, of self-interest, and 
common ideals. The exception to which I refer has very far-reaching effects. 
On the question whether there shall be peace or war the Dominions have no 
voice. In the direction of war when made they have no share. The position 
of a citizen of Australia is quite different from that of a citizen of Britain, 
who, though not directly consulted as to whether war shall be declared, elects 
those persons who so decide. War being declared by persons over whom a 
citizen of the Dominions have no control he 'finds himself involved in all its 
consequences. There is no real alternative. . . . When Britain declares 
war, every citizen of the Empire is involved. Obviously this is incompatible 
with the concept of self-government as understood here and in the Dominions. 
. . . The consequences of war to the Dominions are not limited to the con- 
tributions of men to fight the battles of the Empire, nor to their mainten- 
ance, but extend in such a way as, in effect, to reduce the self-governing powers 
of the Dominions, to merely giving effect to the war policy determined by those 
who controlled it. ... It will hardly be denied that if Britain has a 
right to compel the Dominions to incur such a tremendous burden of Debt as 
this War will impose upon all of them, it has for all practical purposes the 
power to compel them to impose heavy taxation upon themselves; and if one 
nation has a right to tax another, it is perfectly clear that the sovereignty or 
quasi-sovereignty of the latter disappears. This is incompatible with demo- 
cratic government. Everybody must accept the Prime Minister's statement 
that it must not continue. 

Side by side with his other strenuous speeches for closer union 
the inference was obvious; as Mr. Hughes had the support of the 
larger part of the Labour party, practically the whole of the 
Liberals, and the official approval of the Australian Natives Asso- 
ciation, it was obvious that his words carried much Australian 
significance. There had never been any doubt as to the position of 
New Zealand. The late Prime Minister, Sir J. G. Ward, now 
Minister of Finance in the Coalition Government, had long been 
in favour of direct contribution to the British Navy and representa- 
tion in an Empire Council. Mr W. N. Massey, the Premier in 
1916, was entertained at a Luncheon in London during the July 
visit of the Parliamentarians and declared that "on the all-ini- 
portant question of the relationship of the Dominions and d&- 
pendencies to the United Kingdom, something more would assured^ 
be required something which would distribute the responfefilM- 
ities of Empire more satisfactorily and equitably." 

As to Canada the views of its Prime Minister were well 
and will be dealt with further on in this volume. 
Borden stood for closer relations in representation, in 
in fiscal policy. So did most of his party outside of 
even there, the majority of it would follow his lead. 
ion was not stable or settled in the matter; much Depended /.upon 


the results of the War, the terms of policy propounded, the strength 
of the Free-trade element and the Western farmers' influence in 
the Party. The one chief objection raised by opponents in all the 
Dominions was that closer Imperial unity might jeopardize na- 
tional autonomy; the answer now given was that in obtaining a 
control over (1) the Foreign policy of the Empire, (2) the ques- 
tion of peace or war and treaties affecting that issue, (3) the pro- 
vision of funds and organization necessary for war, (4) a voice in 
the fiscal policies of a re-organized Britain, and (5) a share in 
governing the great dependencies of the Empire, each Dominion 
was obtaining much and giving little ; receiving in fact the crown 
and apex of its self governing powers. 

The Empire The War by the end of 1916 had worked a revolu- 

** on * n manv theories and beliefs, in the prejudices of 

Economic . 

changes and many a lifetime, in faiths which had become fetishes. 
Proposed The end of the War meant the opening out and future 

Policies evolution of a new world; in military, economic, 

diplomatic and social conditions alike. The tremendous impact of 
the struggle had destroyed the aloofness of England and made her 
one in policy with some of the great nations of Europe ; it had 
absolutely changed the British viewpoint of Russia and her ambi- 
tions ; it had shattered the confidence which the English masses had 
in the friendship of the United States as a strand which would hold 
strong in days of stress ; it had brought classes and masses together 
for a time, which no one could say would be short or long, but was 
presently obvious ; it had removed a dim cloud which stood before 
the eyes of the people in looking at the growing greatness of their 
own Empire; it had given a vital shock to the ideal of England 
standing alone in Free-trade policy without a fiscal weapon to pro- 
tect herself or control her rivals. 

This latter point was a vital one during the year under discus- 
sion with a culmination of much international feeling and British 
thought at the Paris Economic Confejg8$cg m The Resolutions* of 
that great gathering were largely dej^QtgflffcH plans and principles 
for trade and fiscal unity between t{ $cf n^jons involved without, 
however, any direct use of the wor&Q r ^Rfi$fr 'o^Yet everything led 
up to and passed beyond the af^ef iW#Fu&P)*$$% n of special tar- 
iffs, protective of the trade interests p;|yfl8$fe) c^jftitry, against the 
Teuton Allies ; helpful to the in^ms^jf s^pl^^ijg^ntry by mutual 
preferences. So far as Greaf) l^iflj^i&i jft^j^nflejiftLed the economic 

problem in 1916 was serious, qifi^oliliiii f fc n S4 OJft) ^ ac ^' De ^ ore tne 
War, become a hive of G9$ffla&iz^|^ fjta&^&jistry with such 
vital things as chemical &t&6^3m^fy&&ff&6b and such im- 
portant trades as the to^^tatr^i^B^^i^ndb-ftJ^t^ical apparatus, 
almost entirely in GftrMa&niWfc l^/g^a&jnMteJ interests of 
Australia had got comjtftft$y ri^4fl;TtoQfai%c9ft&l #nd so with a 
number of South &$ m&to &i QftM *fefeestfr-r more in the 
latter case than wa$ia<^e#aj$ feftPW-teto J&ffl&$>rai^ies of supply 
to India the Gerj^^i^ l ^iftmW^aj I ii|^n|} B ^4 f ^ere steadily 

NOTE. See V*$&Wkt SP-tfceWoAitt. '" bsttOg TO 


ousting British industries. It was a peaceful penetration equivalent 
to economic warfare. Was all this to continue after the war in, 
perhaps, still greater degree, with still cheaper goods, with still 
higher German tariffs against British goods? 

Steadily but surely, in 2y% years of war, the conviction had 
grown in the British mind that there must be a change in British 
policy. It was not because of decreasing trade the figures showed 
a war-time total in Imports of 696,635,113 during 1914, 851,893,- 
350 in 1915 and 949,152,305 in 1916, and in Exports of 430,721,- 
357, 384,868,448 and 506,545,443 respectively. The astounding 
increase, in this period, of 1,265 million dollars in Imports and 380 
millions in Exports despite the loss of all Teutonic trade was a 
clear proof of the commercial virility of the British people and of 
the amazing power of the British Navy. But it was obvious that 
much of it was due to special conditions and, to retain it in total if 
not in detail, would require immense after-war adjustments in 
business methods, national customers and tariffs. One of these 
changes would be in the reconstruction and up-building of Europe 
as to which the United States Foreign Trade Council made an 
arbitrary estimate of $6,000,000,000 in requirements. Another 
would be found in meeting the enormous loss of shipping which 
Allies and Neutral alike Germany had deliberately undertaken 
and which amounted at the end of this year to at least 5% of British 
and as much more of the other countries while most of Germany's 
ships remained interned in her own or neutral harbours. 

The basis of the change which developed in British thought 
can be easily traced. Mr. Ruiiciman, President of the Board of 
Trade, and a vigorous free-trader in theory, said in the Commons 
on Jan. 10 : ' ' An economic war should be well within the range of 
our powers. How long that economic war is to be waged is another 
matter. At any rate we must see to it that having ended this War 
victoriously we do not give Germany a chance of reconstructing her 
commercial position. ' ' Sir Alfred Mond, one of the most vigorous 
old-time members of the Cobden Club, followed with the admission 
that : ' ' It will be to our interest, and probably necessary for politi- 
cal reasons, to take steps which some may consider economically 
unsound in order to tie ourselves and our Allies closer together." 
On Feb. 2nd a Parliamentary paper was issued giving the 
Report of a Committee appointed by Government to inquire into 
measures for securing certain branches of British industry after 
the War and it included many detailed recommendations amongst 
them the declaration that Government Departments and local 
authorities should buy only goods produced within the Empire and 
the following Tariff statement: "We are of opinion that where the 
national supply of certain manufactured articles, which are of 
vital importance to the national safety, or are essential to other 
industries, has fallen into the hands of manufacturers and traders 
outside this country, British manufacturers ready to undertake the 
manufacture of such articles in this country should be afforded 
sufficient tariff protection to enable them to maintain such produc- 
tion after the War ; and that (after the War) it will be necessary to 


impose some widely spread import duties, and we are, therefore, 
prepared to recommend that a larger proportion of the revenue 
should be raised by reasonable import duties. We are of opinion 
that such import duties would go a long way toward satisfying the 
requests for special Protective treatment for the industries which 
we have had under consideration." 

The members of the Committee were Sir Algernon Firth, Presi- 
dent of Associated Chambers of Commerce, A. J. Hobson, Stanley 
Machin, E. Parkes, M.P., and Sir Albert Spicer, M.P. the last of 
whom preferred a wider scheme to a "piece-meal tariff" dealing 
with selected industries. The tariff rates suggested applied to 
paper-printed matter, silverwares, cutlery, fancy leather goods, 
glassware, china and earthenware, toys and brushes, and ran from 
10 to 33 1-3 per cent, ad-valorum with, in two cases, prohibitive 
duties. Following this the Manchester Chamber of Commerce, in 
the heart and centre of the free-trade propaganda of sixty years, 
on Feb. 14 referred back to its Directors by 988 to 527 a Memoran- 
dum in favour of Free Trade and against Protective tariffs; the 
Edinburgh Chamber of Commerce had already (Jan. 27) declared 
that "under no circumstances ought it to be possible for foreign 
countries, after the War, to dump their manufactures on our mar- 
kets to the detriment of our manufactures and consequent unem- 
ployment of our workpeople; and for this purpose, as well as for 
the encouragement and extension of inter-Imperial trade and 
development of trade with our Allies, a discriminating Customs 
tariff is necessary, and should be prepared forthwith." 

The Associated Chambers of Commerce met in London on Feb. 
29 and passed Resolutions declaring it desirable to make provision 
(1) for preferential reciprocal trading relations between all parts 
of the Empire; (2) for reciprocal trading relations between the 
Empire and the Allied countries; (3) for the favourable treatment 
of neutral countries; and (4) for restricting, by tariffs and other- 
wise, trade relations with all enemy countries, so as to render 
dumping and a return to pre-war conditions impossible, and for 
stimulating the development of home manufacture and the conse- 
quent increased employment of native labour. The following 
quotations it is superfluous to quote Conservative opinion in- 
dicate the further growth of the Protective sentiment : 

The Earl of Rosebery Liberal and Free-trader : 

There are two points on which I think we should be prepared to disregard 
pre-conceived notions. One is the question of tariffs, as to which we shall have 
to reconsider, I suspect, many of our previous formulas, and by which we can- 
not be hampered in the prosecution of a successful foreign trade. The other 
is this. As you are aware, the Foreign Office has always had the greatest anti- 
pathy to their consular agents engaging in promoting commerce of particular 
firms in foreign countries. I think the laissez aller policy will have to be 
abandoned. At Edinburgh, Jan. 20. 

Lord Joicey Liberal and Free-trader : 

It would be absolutely necessary for us to impose some tariffs upon 
imports which we could manufacture to protect ourselves from the inroads of 
the enemy. He had been a Free-trader all his life, but he quite realized the 
necessity, for revenue purposes, of imposing these tariffs. At Newcastle, 
Feb. 1. 


Harold Cox, ex-M.p. Cobden Club leader: 

The principle may be safely accepted that where it is clear that any 
particular commodity is required either for the needs of the Navy or the Army 
or for those of any commercially important group of home industries, then 
steps should be taken to prevent the supply of this commodity being cut off by 
a possibly hostile foreign nation. ... To that end the best means may 
conceivably be the imposition of a tariff so as to encourage the home produc- 
tion of the commodity in question. In Sunday Times, Feb. 6. 

Rt. Hon. John Hodge, M.P. Labour Leader and Free-trader : 

It appears to those with whom I have spoken, as it does to myself, that 
we cannot permit Germany the freedom of our markets which she had in times 
past. ... It, therefore, behooves those who formerly held Free-trade 
opinions, to make it known to the Coalition Government that all those notions 
tave been placed in the melting-pot, and that we are prepared to reconsider 
the position .free from the trammels of party. In The People, Feb. 27. 

Following the Paris Conference in June it was announced on 
July 19 that the Prime Minister had appointed a Committee to 
consider the commercial and industrial policy to be adopted after 
the War, with special reference to the conclusions reached at the 
Economic Conference of the Allies, and to the following questions : 
(1) What industries are essential to the future safety of the 
nation, and what steps should be taken to maintain or establish 
them; (2) what steps should be taken to recover home and foreign 
trade lost during the War, and to secure new markets; (3) to what 
extent and by what means the resources of the Empire should and 
can be developed ; and (4) to what extent and by what means the 
resources of supply within the Empire can be prevented from fall- 
ing under foreign control. The Committee was composed as fol- 
lows: Lord Balfour of Burleigh, K.T., G.C.M.G. (Chairman), Arthur 
Balfour, H. Gosling, W. A. S. Hewins, M.P., Alfred Illingworth, 
M.P., Sir J. P. Maclay, Bart., the Et. Hon. Sir A. Mond, Bart., M.P., 
Arthur Pease, R. E. Prothero, M.P., Sir Frederick H. Smith, Bart., 
and G. J. Wardle, M.P., together with the heads of various Govern- 
ment Committees on associated subjects.* 

Meantime there had been some vigorous opposition led by the 
Manchester Guardian and London News and Leader and by such 
men as the Directors of the Manchester Chamber of Commerce 
of whom 30 out of 33 resigned, following the Chamber's repudia- 
tion of Free-trade. In the Daily News on July 6 was published a 
letter signed by a number of prominent Free-traders and recording 
the emphatic opinion that no reason existed for changing the fiscal 
policy of Britain. ''This War has proved the strength of Free 
trade and the weakness of Protection at home and abroad. After 
the War free trade will be more needful than ever to Great Britain 
and the British Empire, for it is only by returning to cheap pro- 
duction and unfettered intercourse with all nations that we shall 
be able to resume our commercial and manufacturing superiority, 
and to find from our incomes the huge revenue necessary to pay 
pensions to the victims of war, and interest on a dead-weight debt 
of unexampled magnitude." Amongst the signatories were Earl 
Beauchamp, Lord Ashton of Hyde, Sir Hugh Bell, Earl Brassey, 

*NOTE. The Report issued in 1917 was favourable to a measure of Protection and 
to Preferential tariffs. 



Viscount Bryce, Lords Courtney of Penwith, Farrer and Evers- 
ley, the Earl of Loreburn, Sir John Simon, M.P., Rt. Hon. John 
Burns, F. W. Hirst and H. W. Massingham, Lord Weardale and 
ten not very well known members of the Commons. 

Back of the changed viewpoint of so many men and interests 
was the idea of an Empire trade and fiscal policy. Mr. Bonar Law, 
Colonial Secretary, put this clearly when he said on Feb. 20 in the 
New York Tribune: "The Allies will very probably enter into an 
economic entente with one another and the British Empire will have 
to rely more on its own resources and the War will have shown us 
how this can be done." In a speech on June 23 he was more 
explicit: "The value of a change in fiscal policy in the past has 
always depended, in my opinion, on its use as a means of securing 
a closer union of the British Empire." As the issue developed he 
further amplified the view which Mr. Chamberlain had first pre- 
sented to the people and, in addressing the Unionist National Asso- 
ciation on Aug. 9 said: "There may be a fight (on the fiscal issue) 
but I ask you to remember what is always present in my mind, 
that behind any trade question in connection with this there is a 
bigger question. Behind all there is the question of the closer union 
of the British Empire. ' ' The following table* of progressive pro- 
duction in the Empire illustrates the scope there was for develop- 

Staple Articles 

Coal ,. Value 

Iron-Ore Tons 

Pig-iron Tons 

Diamonds Value 

Gold Value 

Silver Value 

Copper .: .Value 

Tin Value 

Wheat Bushels 

Barley Bushels 

Oats . Bushels 

Maize Bushels 

Tea : Lbs. 

Cocoa . . < Lbs. 

Coffee Lbs. 

Raw Sugar . Lbs. 

Rubber Lbs. 

Cotton Lbs. 

Jute Lbs. 

Average Yearly 


1899-1903 " 




















Production in the British Empire 
3 periods of 5 years each 




In the Commons on Jan. 10 W. A. S. Hewins moved a Resolu- 
tion which passed unanimously and stated that "with a view to 
increasing the power of the Allies in the prosecution of the War, 
His Majesty's Government should enter into immediate consulta- 
tion with the Governments of the Dominions in order, with their 
aid, to bring the whole economic strength of the Empire into co- 
operation with our Allies in a policy directed against the enemy." 
It was pointed out during the debate that in 1913, before the War, 
Germany had sent 48 per cent, of its exports or $1,026,000,000 to 
Britain and her Allies. In many discussions and speeches and press 
editorials throughout the year this Empire co-operation in war and 
trade was accentuated until at its close the calling of a War Council 
brought the former phase of the matter to a climax. 

*NOTS. Compiled by John Holt Schooling, a British statistician and authority on 
Trade subjects. 


It is true that the Dominions were not directly represented at 
the Allies ' Paris Conference but Mr. Hughes and Sir George Foster 
were there as British Delegates ; neither were they included on the 
Committee elsewhere referred to and which was appointed to report 
on British industries and the War; but as to the latter The Times 
of July 20 asked why this had not been done. "We have urged 
again and again that the proper course was to determine upon an 
Imperial policy in consultation with the Dominions before we went 
to the Paris Conference at all. This could easily have been done, 
but it was not done." Another sign of the times was the official 
proposal Report of Committee on Financial Facilities for Trade 
to establish a British Trade Bank under Royal charter with a 
capital of 10,000,000 for the purpose of filling "a gap between 
the Home banks and the Colonial and British-foreign banks and 
banking houses, and to develop facilities not provided by the pre- 
sent systems. ' ' Two important duties were specifically mentioned : 
"If financial assistance is given by the Government to undertak- 
ings in connection with what are known as 'key' industries, the 
business should, if possible, be done through the medium of this 
institution. In the financial operations of the institution the desir- 
ability of assisting British trade and of placing with British manu- 
facturers orders in connection with new undertakings should be 
always borne in mind." 

Meanwhile, the Dominions expressed themselves upon occasion 
as strongly favourable to Preferential trade and tariffs as. to 
which they were all on practical record by a British preference 
clause in their own tariffs. Mr. Hughes of Australia, in the 
speeches which so aroused England, took strong fiscal ground. Mr. 
Premier Massey expressed the New Zealand idea in a Times 
interview on Oct. 17 as follows: "There is, I believe, a strong 
and growing desire in all the outlying parts of our Empire for 
closer and larger commercial intercourse, not only with the Mother- 
land, but between themselves. Mutual interests point to the de- 
sirability of increased and freer interchange of our respective 
products. Obviously, this may be promoted and expedited by the 
adoption of the principle of preferential treatment as is proved by 
the satisfactory reciprocal arrangements which at present exist in 
certain portions of the oversea Dominions." Canada's position was 
one of unanimity in willingness to accept a British preference, if 
offered; but with strong objections on the Liberal side of politics 
to pressing any fiscal change on the British people and with con- 
siderable love for Free-trade ideals in the rank and fyle of that 

As to South Africa little was said officially but, on Apr. 3, the 
Johannesburg Chamber of Commerce passed Resolutions which 
embodied the feeling of the English part of the population of the 
Union and the views of many Boer followers of Generals Botha 
and Smuts. They began by the declaration that "a return to pre- 
war conditions in regard to trading with enemy nations would be 
contrary to the best interests of the Empire" and recommended 
(1) the' desirability of co-operation between the Imperial Govern- 


ment and the Dominions so as to make the Empire self-supporting ; 

(2) that the Imperial and Dominion Governments should encour- 
age the production and utilization of raw materials and manufac- 
tured goods within the Empire under such legislative conditions 
as will prevent their being controlled by or on behalf of foreigners ; 

(3) that the Imperial and Dominion Governments should encour- 
age for a period of years the continuance, by subsidy or otherwise, 
of new and 'Key' industries within the Empire; and (4) that the 
various Governments of the Empire should take steps for the 
development of technical instruction and scientific research, and 
their adaptation to industrial and commercial ends." 

They also urged, for the Union itself, Preferential arrangements 
with all Empire countries and reciprocal relations with other coun- 
tries but in no case on an equality with the British Empire ; 
prohibitive tariffs against the present enemy countries, differential 
charges against their shipping, prohibition of entry for their trade 
catalogues, price lists and advertising matter. They desired, also, 
the internment of all alien enemies and their elimination from 
business firms and companies; that " enemy subjects holding certi- 
ficates of British naturalization shall be required to obtain within 
12 months of the conclusion of Peace papers of denaturalization 
from the country of their origin ; ' ' and that no further immigra- 
tion of such persons be allowed after the War. On Sept. 14 the 
South African Chambers of Commerce closed their Cape Town 
meeting, after discussing various phases of the War, by passing 
Resolutions along the line of the Johannesburg Chamber's views. 

Not only were the Paris Conference conclusions approved in 
a general motion, but an omnibus Resolution was unanimously 
adopted recommending, among other things, a South African Cus- 
toms tariff amendment which should : ( 1 ) give a substantial rebate 
on the products and manufactures of the British Empire; (2) 
recognize the principle of reciprocal preference to the Allies; (3) 
establish reciprocal tariff relations with other countries ' ' but in no 
case placing such countries on an equality with the British Empire 
or the Allies;" (4) organize a special tariff against enemy coun- 
tries on such a scale and for such a period as the coming Imperial 
Conference may decide. The Resolution also contained a recom- 
mendation for differential charges against all enemy shipping to 
South African ports. 


Jan. 1st. The official statement of the Rhodes Trust for 1914-15 stated 
that only 18 Colonial scholars were in residence at Oxford. The full number 
would be 81, or 27 from Canada, 18 from Australia, 3 each from New Zealand, 
Newfoundland, Jamaica and Bermuda, and 24 from South Africa. All the 
others had enlisted and, of the 18, five were seeking commissions, 4 were 
unable to serve and 6 were advised to continue their Medical studies. Alto- 
gether 167 had joined the Army. 

Feb. llth. It was announced that the New South Wales Cabinet had 
decided that in purchasing supplies for the Public service ten per cent, pre- 
ference would be extended the local British or Empire manufactures. 


Feb. 22nd. Lord Lansdowne announced in the House of Lords that the 
Government was turning over all matters connected with the blockade of Ger- 
many to a special Cabinet Minister and that Lord Eobert Ceci}, M.P., Under- 
secretary for Foreign Affairs and a son of the late Lord Salisbury and cousin 
of Mr. Balfour, had been appointed Minister of Blockade and Contraband. 

Mar. 8th. The British Prime Minister, in answer to an inquiry, stated 
that the number of British non-combatants who had been killed or drowned by 
the enemy were as follows: 


By bombardment 49 

In air raids 127 

Total 176 131 96 408 

The number of non-combatants who had lost their lives on British mer- 
chant vessels and fishing vessels, by enemy action, between Aug. 4, 1914, and 
Mar. 8, 1936, was approximately 2,750. 

Mar. 19th. H. E. H. The Prince of Wales arrived in Egypt after service 
on the Western front to act as Staff Captain to General Murray in command 
of the Mediterranean Forces. 

Mar. 31st. H. M. The King addressed a statement to the Prime Minister 
placing 100,000, or $500,000, of his personal income at the disposal of the 
Government for war purposes. 

Apr. 4th. The Headmaster of Eton, the Eev. and Hon. E. Lyttleton, D.D., 
tendered his resignation of the Headmastership which he had held since 1905. 
It was accepted and the disgrace of having a Pacificist head, with pro-German 
affiliations, was removed from the famous old School. 

Apr. 20th. It was officially announced that H. M. the King-Emperor 
had been pleased to sanction the grant of a salute of 11 guns and the rank 
and status of a First Class Chief of the Bombay Presidency, for life, to His 
Highness Aga Sultan Sir Mahomed Shah, Aga Khan, G.C.S.I., G.C.I.E. This very 
exceptional honour conferred upon His Highness was the more noteworthy as 
his authority was spiritual and not territorial. Many millions of Islamiah 
Moslems, not only in India and on its frontiers, but elsewhere in Asia and in 
various parts of Africa, owed him spiritual allegiance, but there was no State 
in India where he held sway as ruler. His services to the British cause in the 
War had been so great as to merit any honour and he had even offered to serve 
the King-Emperor as a Private in the ranks. 

June 1st. A despatch from Major-General Sir Charles M. Dobell a 
Canadian by family and birth gave the history of the conquest of Kamerun 
with a Force composed of British, French and Belgian troops and 9,700 Indian 
and West African native soldiers. The country covered 306,000 square 
miles or 1% times the size of Germany, and was defended by a well- 
trained, well-led native force with plenty of machine guns. Yaunde, the 
Capital, was finally occupied early in January, 1916, with several detachments 
which after fighting and marching for 17 months amidst the greatest of tropi- 
cal and geographical difficulties had converged on their objective within a 
few days of one another. 

June 29th. The Prime Minister announced that an interim official History 
of the War was under preparation from material collected by the Historical 
Section of the Committee of Imperial Defence. There would be three sections: 
Naval Entrusted to Mr. Julian Corbett (Barrister-at-law and Lecturer in 
History to the Naval War College) ; Military Entrusted to Mr. John Fortescue 
(Librarian at Windsor Castle since 1905) ; and Trade Entrusted to the Garton 

July 6th. The King conferred an Earldom upon Et. Hon. Sir Edward 
Grey, Bart., M.P., Secretary for Foreign Affairs. At Sir Edward's request, 
and in view, presumably, of an Earldom of Grey already existing, he was 
allowed to take a lesser dignity and became Viscount Grey of Falloden. 


July 31st. Australian Contributions to War Funds to this date, estimated 
from semi-official sources, were as follows: Victoria, 1,489,906; New South 
Wales, 2,399,683 ; South Australia, 509,000 ; Tasmania, 139,703 ; Queensland, 
923,487; Western Australia, 295,782. The total was 5,757,561. 

Aug. 4th. King George sent a despatch to the King of the Belgians 
promising that the Allies would "liberate Belgium and restore her to the full 
enjoyment of national and economic independence" and to the Allied States 
in identic terms as follows: "On this day, the 2nd anniversary of the com- 
mencement of the great conflict in which my country and her gallant Allies 
are engaged, I desire to convey to you my steadfast resolution to prosecute the 
War until our united efforts have attained the objects for which we in com- 
mon have taken up arms. I feel assured that you are in accord with me in the 
determination that the sacrifices which our valiant troops have so nobly made 
shall not have been offered in vain, and that the liberties for which they are 
fighting shall be fully guaranteed and secured. (Signed) GEORGE R.I. 

Aug. 12th. The King, after some days in the trenches and amongst his 
soldiers of the British Army in France, met and conferred at a certain French 
chateau with President Poincare, General Joffre, General Foch and Sir Douglas 
Haig. His Majesty visited many parts of the Front and was frequently under 
fire. A Message to the troops was issued on the 15th: "Do not think that I 
and your fellow-countrymen forget the heavy sacrifices the armies have made 
and the bravery and endurance they have displayed during the two years of 
bitter conflict. These sacrifices have not been in vain. The arms of the Allies 
will never be laid down until our cause has triumphed. I return home more 
than ever proud of you. May God guide you to victory." 

Sept. 15th. Lieut. Raymond Asquith, son of the Prime Minister, was 
killed in action. He was 38 years old, a graduate of Oxford and had been 
President of the famous Oxford Union, a prominent barrister, and one of the 
most promising of the younger men in British public life. Lieut. Arthur 
Asquith, a brother, was in the Royal Naval Reserve at this time, and Lieut. 
Herbert Asquith had been wounded at the Dardanelles in June, 1915. 

Oct. 1st. A despatch from Gen. Sir Archibald Murray described the 
operations of the Forces in Egypt from Jan. 1 to May 31, 1916, and dealt 
with a campaign covering a front of 1,000 miles in the west and 90 in the 
east, with the construction of 252 miles of railway and 114 miles of road. 
During the period, also, at Salonika he reported that 200 miles of deep 
trenches, 710 emplacements for guns, 230 strong posts, 160 miles of barbed 
wire and 1,300 miles of telegraph cable had been completed. 

Oct. 15th. It was officially stated in the Commons that the number of 
German prisoners of war in British hands was as follows: Military officers, 
729; other ranks, 36,165; Naval officers, 150; other ranks, 1,976 total 39,020. 
The approximate net number of British prisoners of war interned in Germany 
was: Military officers, 923; other ranks, 28,770; Naval officers, 47; other 
ranks, 361 total 30,101. 

Dec. 2nd. Major-General Sir Stanley Von Donop, the Master-General of 
the Ordnance, under whom . British munitions and artillery had assumed such 
deplorable conditions and whose power had been minimized by D. Lloyd 
George's appointment as Minister of Munitions, was relieved of his position 
and replaced by Major-General Wm. T. Nurse. 

Dec. 31st. Official estimates of a necessarily partial nature showed $500,- 
000 contributed in the Union of South Africa and sent to England for charit- 
able and other War purposes up to the end of 1916, together with $2,500,000 
collected for the Governor-General's Patriotic Fund and large sums contri- 
buted to the South African Hospital and Comforts Fund, London, the Red 
Cross, Cape Town, the Anglo-French Ambulance, Cannes, France, and the 
Gifts and Comforts Organization, Cape Town. 


The General War-time prosperity gripped the Republic during 

isYe^proaper- 1916 with a power which influenced international 
sty, Pacificism relations, affected political issues, controlled financial 
and Pre- policy and chloroformed individual convictions. It 

pared ness was O ften quite an indirect, sometimes an almost in- 

visible, power; in centres like New York it was a direct, potent, 
obvious force. As F. A. Vanderlip, President of the National City 
Bank, put it in a Chicago address (Dec. 16) : "We have always 
known that nature had been lavish, that in a material way every- 
thing was ready at hand and needed but industry, thrift and right- 
living to bring material success to the country and to all of its 
people. But on top of that comes what seems almost a conspiracy 
of events to test our moral fibre a flood-tide of wealth, of oppor- 
tunity, which, added to our resources, puts upon the people of 
this country a responsibility of trusteeship to the world. We are 
like the heir of an enormously wealthy father. None too well 
trained, none too experienced, with the pleasure-loving qualities of 
youth, we have suddenly, by a world tragedy, been made heir to 
the greatest estate of opportunity that imagination ever pictured." 

The year 1915 had been one of economic recovery in the United 
States with a gradual shifting of much financial power from Lon- 
don to New York and an excess of Exports over Imports totalling 
1,750 million dollars; that of 1916 was one of leaping prosperity 
and even higher production and exports until, by the close of the 
year, the excess of Exports was 3,100 millions. The U. S. Secretary 
of Commerce stated the figures for the fiscal year in his annual 
Report as follows : Imports of merchandise in the year ending June 
30, 1916, $2,197,883,510 and Exports $4,333,658,865, or a total 
favourable balance for the fiscal year of $2,135,775,355. For the 
calendar year 1916 there was a larger balance the Imports being 
$2,360,000,000 or 32% increase over 1915, and the Exports $5,460,- 
000,000 or 55% over 1915 and 157% over 1914 making the favour- 
able total of $4,800,000,000. As to this trade condition 0. P. 
Austin of the Statistical Department of the National City Bank, 
New York, estimated (New York Tribune, Nov. 19) the internal 
trade of the United States at $40,000,000,000 or about the same as 
the normal external commerce of the rest of the world and, in this 
connection, he calculated the yearly value of manufactured pro- 
ducts, the $10,000,000,000 product of farms, and that of mines, for- 
ests and fisheries, with the total imports though he did not appar- 
ently deduct the exports. 

Meanwhile against the United States trade balances the net 

import of gold over and above exports was $541,800,000 in 1916 

and $420,529,000 in 1915 compared with an unfavourable balance 

in 1914 of $165,000,000. During the war period of 29 months the 

13 [193] 


net import of gold was. 838 millions while at the end of 1916 there 
were 2,845 millions altogether in the country. In this connection 
H. P. Davison of the Morgan firm told the New York Tribune 
(Nov. 4) : "There is danger a very grave danger to the United 
States in the continued imports of gold. Naturally the wealth of 
the world won't stay here after peace is restored, and if the infla- 
tion which gold brings is too great there will be peril in the con- 
traction which must follow. We will have no monopoly of the 
world's business after the War, as we have no monopoly of genius or 
industry." Meanwhile, however, the nation was turning from a 
borrowing to a lending people and the imports of gold already made 
had given it an estimated basis for a $6,000,000,000 expansion of 

During the years 1914 and 1915 the United States had sold 
4,800 millions more to the world than it had bought and was rapidly 
changing from a debtor to a creditor nation; it held nearly one- 
half of the world's whole stock of gold in its possession with, also, 
1,500 millions of repatriated railway and industrial securities on 
which interest had been payable abroad. President L. F. Loree, 
of the Delaware & Hudson Railway, estimated that "foreign hold- 
ings of American railway securities, which on Jan. 31, 1915, were 
of the aggregate par value of $2,704,402,364, had been reduced 
by liquidation to $1,415,628,563 on July 31" while 2,500 millions 
of interest-bearing foreign-Government notes had been acquired. 
Such a condition and such changes produced much speculation in 
financial circles, a flood of theoretical statements in the press, and 
many indirect results. One of the latter was an increase of loans 
and discounts in all the banking institutions totalling 2,000 millions 
according to the New York Tribune financial review of the year ; 
another was the receipt in 1916 of more than half-a-billion in gold 
over and above that shipped out of the country. 

General and individual extravagance prevailed, higher and 
higher prices and wages met increased local and international de- 
mands steel, cotton, tin and copper being conspicuous instances of 
the advance in price with 20% as Bradsireet's estimate for the 1916 
average increase; materials for shipment abroad increased in 
demand as did domestic requirements for supplies and luxuries at 
home, so that railways ran out of cars to meet the combination and 
freights went still higher. Iron production increased in average 
daily output by 22% above the highest of pre-war figures and 
railway gross earnings were 19% above 1915. Money, however, 
grew tight toward the close of the year and the stock market 
suffered severe fluctuations, while the yield of all the great cereal 
crops was less than in 1914 and 1915 the 639,000,000-bushel 
wheat crop comparing with 1,000,000,000 bushels in 1915 and with 
891,000,000 in 1914, and being, in fact, the smallest since 1904. 
There was a reduced yield in other grains which brought the total 
yield of the five great cereal crops to 4,703,000,000 bushels, as 
against 5,882,000,000 in 1915, with 4,942,000,000 in 1914.* Only 

*NOTE. New York Post, Financial Summary. 



tremendous industrial prosperity could have countered this short- 
age without a clear depression in business. The following estimate, 
in detail, of orders in hand for Munitions and explosives totalling 
$2,000,000,000 in value was published in Julyt : 

Company Gross Amount 

AEtna Explosives $30,000,000 

American Can 

American Car and Foundry 

American Locomotive 

American Brake Shoe .... 
Baldwin Locomotive Works 
American Steel Foundries . 

American Woollen Co 

Bethlehem Steel 

Canadian Car and Foundry 

Crucible Steel 

Curtiss Aeroplane 

Du Pont Powder 

Driggs-Seabury Ordnance . 

Electric Boat 

General Electric 

Hercules Powder 

Lackawanna Steel 

New York Air Brake 

Midvale Steel 

Pressed Steel Car 


Westinghouse Air Brake . . 
Westmghouse Electric 








Shells and rifles 
Blankets, etc. 
Shells, guns, etc. 
Gu,ns, shells 
Boats, etc. 

Rails, shrapnel 

Shells, rifles, rails 
Vehicles, etc. 
Shrapnel and brakes 
Rifles and shells 

One authority put the Du Pont orders at 320 millions with its 
stock paying a 200 per cent, profit in October, 1916, while the 
Bathlehem Steel plant profits for this year were estimated at 
$46,000,000. As to possibilities in this respect, were the United 
States to come into the War, H. E. Coffin, Chairman of a Commit- 
tee of the U. S. Naval Consulting Board, stated (July 30) that 
there were "more than 30,000 manufacturing concerns, represent- 
ing a total annual business of about $3,000,000,000, which could 
render important service." Of United States manufactures, as a 
whole, it may be added that the capital invested (1914) was $22,- 
790,000,000; the output $24,246,000,000 or an increase in five years 
of 17%, while the cost of materials had increased 18% ; the employ- 
ees numbered 8,265,426 and the wages had increased 19%. In 
the War-years these figures must have developed largely; during 
11 months ending May, 1916, United States exports of iron and 
steel, alone, increased over the preceding annual period by 351 
millions, of explosives by 384 millions, of brass by 116 millions, of 
automobiles by 58 millions, of drugs and chemicals by 68 millions. 

During the fiscal year ending June 30, 1916, the United States 
increased its exports to Britain 600 millions, to France by 260 
millions, and to Canada by 166 millions. Of the totals in this trade 
at least 25% were war supplies of one kind or another with an 
estimated amount from January, 1915, to September, 1916, of 
$1,617,000,000. At the same time this war-trade was special and 
not permanent; of the 8,000 million dollar total of the world's 
international absorption of manufactures the United States only 
supplied, normally, about 1,000 million in export. Meantime, 
United States authorities had been trying to estimate the total 
wealth of the Republic and one result may be given here not as 

tNoTE. This table 
is approximately correct. 

extracted from the Toronto Mail and Empire of July 21 and 


being entirely beyond criticism but as interesting in the premises. 
It was that of the Comptroller of the Currency, John Skelton Wil- 
liams, in a public address at Norfolk, Va., on Dec. 12 and the total 
given was $220,000,000,000 or more than that of the whole British 
Empire. The figures were partly official and based upon the Cen- 
sus estimate of 1900 as 88 billions and of 1912 as 187 billions. 

A curious commentary upon this statement and upon the riot of 
riches in New York at this time, and the extravagance of the people 
in general, was Mr. Williams' further statement that "the total of 
all American gifts to the distressed of Europe, Asia, and Africa, 
has been less than one-twentieth of one per cent, of the income of 
the American people since the War began." This was borne out 
by statistics as to the Belgian Relief Fund, up to the close of the 
year, given by Herbert C. Hoover, the Chairman of the Commis- 
sion, who declared on a visit to New York* that ' * the United States 
has made over three times as much profit out of the stricken Bel- 
gians as it has given to succour them. In other words, it contri- 
buted approximately $9,000,000 to Belgian Relief, about eight cents 
per capita; it has "sold to Belgium about $130,000,000 worth of 
food on which there was an approximate profit of $30,000,000 for 
the American pocket." The New York Times also compiled an 
approximate statement of United States two-year contributions to 
War Relief Funds which totalled $35,969,634 less about $2,000,000 
in duplications : 

$10,000,000 Committee of Mercy 1,512,000 

6,000,000 Armenia and Syria 1,025,000 

5,580,000 Polish Relief 800,000 

3,395,649 American Ambulances 800,000 

3,159,985 Federation of Churches .... 500,000 

2,750,000 Serbia, France and Albania 437,000 

Meanwhile an important financial incident had occurred. J. 
P. Morgan & Co., in particular, and New York banks in general, 
had made arrangements to accept British Treasury bills in large 
amounts running in estimated totals from 500 to 1,000 million 
dollars and to be issued at 30 and 90 days up to 6 months, saleable 
throughout the country, as in England, and bearing variable rates 
of interest. The object was to facilitate payment for War supplies 
and provide credits for new purchases. At 'this juncture, like a 
bolt from the blue, came an official statement (issued Nov. 28) 
from the Federal Reserve Board as follows: 

The Board believes that at this time Banks should proceed with much 
caution in locking up their funds in long-term obligations or in investments 
which are short term in form or name but which, either by contract or through 
force of circumstances, may in the aggregate have to be renewed until normal 
conditions return. 

While the loans may be short in form, and severally may be collected at 
maturity, the object of the borrower must be to attempt to renew them col- 
lectively, with the result that the aggregate amount placed here will remain 
until such time as it may be advantageously converted into a long-term 
obligation. It would, therefore, seem, as a consequence, that liquid funds of 
our Banks, which should be available for short credit facilities to our mer- 
chants, manufacturers, and farmers, would be exposed to the danger of being 
absorbed for other purposes to a disproportionate degree, especially in view 
of the fact that many of our Banks and Trust companies are already carrying 

*NOTE. N. Y. Evening Post, Jan. 17, 1917. 

Belgian Relief 

Germany and Her Allies . . . 

Jewish War Belief 

American Red Cross 

Rockefeller Foundation 
War Relief Clearing House. 



substantial amounts of foreign obligations, and of acceptances which they 
are under agreement to renew. The Board deems it, therefore, its duty to 
caution the member Banks that it does not regard it in the interest of the 
country at this time that they invest in foreign Treasury bills of this character. 

This institution was a Government one subsidiary to the United 
States Treasury and with the following members : W. P. G. Harding 
(Governor), Paul M. Warburg, F. A. Delano, Adolph C. Miller 
and C. S. Hamlin. Mr. Warburg, the ablest financial member of 
the Board, was charged by a part of the press with views favour- 
able to Germany and with personal relations which made such 
feelings natural, but his public utterances did not strengthen that 
impression. As the more important Banks of the country were 
under control of the Board in connection with their reserves 
which it held to the extent of $630,000,000 such an expression of 
opinion was important. At first it appeared that Messrs. Morgan 
would continue the projected issue of notes but on Dec. 1st it was 
announced that this would not be done: "We have been instructed 
by the British and French Governments to withdraw their Treas- 
ury bills from sale. This action is taken because these Governments 
desire to show every regard to the Federal Reserve Board, a gov- 
ernment body of which the Secretary of the Treasury and the 
Comptroller of the Currency are ex-officio members. We may add 
that the sale in limited amount of these Treasury bills, payable in 
dollars in New York, had never been an essential part of the Allied 
Government's financial plans, but had for some time been under 
consideration, with a view to furnishing a credit medium that would 
accommodate the American banking demand for an instrument of 
short maturity and such limited volume that the Governments 
could always undertake to lay down gold in New York sufficient to 
meet the maturing bills. It was believed further that these bills 
would have furnished, at the end of the War, an excellent measure 
of protection to the American financial situation. ' ' 

There was much criticism of the public nature of this action of 
the Board as hampering British orders and credits, American trade 
and finance, while giving ignorant masses of people a wrong impres- 
sion of Allied financial standing. F. A. Vanderlip was explicit in 
this view and, as head of a great New York Bank, his statement at 
a Chicago bankers' meeting on Dec. 16 was significant: "In my 
judgment, the Federal Reserve Board have ruled unwisely in tak- 
ing the attitude they have concerning the inadvisability of invest- 
ment by member Banks in very short-term obligations of the bel- 
ligerent Governments. I believe that such action on the part of 
the Banks would be wise from the strictly banking view-point. I 
believe that it would be wise, because such investment would tend 
to restrict further gold importations which may lead to dangerous 
domestic inflation, and would provide credits which would be better 
than gold when eventually the exchanges turn against us." 

In a little pamphlet circulated at this time in California and 
written by J. S. Macdonnell of the First National Bank, Pasadena, 
it was pointed out that Great Britain held in securities of the 
various Americas about $20,000,000,000 value while there were 


also about $30,000,000,000 securities held within Great Britain as 
evidences of continuous energy and success. "That ought to jus- 
tify a loan of $1,000,000,000 for temporary purposes even unse- 
cured." Following the incident came a curtailment or cancella- 
tion of British and French orders though this, also, was due in 
part to the tremendous development of Allied home industries. 
The year closed financially with the official statement from Wash- 
ington that ' * the New York Federal Reserve Bank has been author- 
ized to appoint the Bank of England as its London correspondent ; ' ' 
the estimate of the United States Foreign Trade Council that 
6,000* million dollars worth of recuperative work would be required 
in Europe after the War ; the arrangement by the Corn Exchange 
Bank, New York, for a commercial credit to the British Govern- 
ment of $25,000,000 for the purchase of wheat; the year's state- 
ment of the International Mercantile Marine Co., New York, 
which controlled $100,000,000 worth of ships, and showed a net 
operating income of $40,000,000. 

So much for Prosperity produced by war. What was the situa- 
tion as to Preparedness for eventualities ; readiness to meet -the 
varied issues and stormy situations of the period ? Aside from the 
party leaders and politics there were two distinct and powerful 
schools of thought in the Republic. One was in favour of increas- 
ing the Army or Navy, or both of them, and preparing generally 
for war or peace as destiny might decide ; the other was in favour of 
Peace, of pacific inaction, of refusal to engage in Militarism, whe- 
ther defensive or offensive. The need for a decision was obvious 
in the futility of the Mexican policy and the helplessness of the 
United States if conflict came with a country like Germany and 
the bar of the British fleet were lifted. The authorized strength of 
the Army on June 30, 1916, was 123,038; the actual strength was 
107,641. Then came the Mexican troubles and strenuous efforts at 
enlistment for the State Militia and its transition into a National 
Guard, with a strength on Aug. 31 of 140,259 officers and men 
Secretary of War Report. Meantime the War College Staff had 
submitted to the War Secretary, at the close of 1915, a statement 
showing 160,000 equipped and trained troops, 185,000 partially- 
trained troops and 30,000 harbour-defence troops, as being avail- 
able at the close of the first year of a serious war in which the 
United States were engaged. While such operations were in pro- 
gress hostile Expeditions could be landed in accordance with the 
following table provided sea-power lay with the possible enemy: 


Nation of Army 


First Expedition Second Expedition needed 
Men Animals Men Animals to cross 


Austria .... 4,320,000 












1,705 931 








Germany . . . 










































Russia 5,000,000 










According to the National Security League, of which J. H. 
Choate was Hon. President and S. S. Menken, President, with a 


National Committee of 16 State Governors and others equally 
prominent, the total available American troops on an emergency 
call of 30 days would be 40,000 of the regular Army and 60,000 
Militia. Yet the male population of the United States (1910 Cen- 
sus) of fighting age between 18 and 39 was 16,598,000. Speaking 
of the situation on Mar. 3rd, at St. Louis, Hon. J. P. Mitchel, Mayor 
of New York, said, after referring to 90,000 men as possibly avail- 
able on a declaration of war: 

Behind these we have no reserves at all. On the basis on which wars are 
waged to-day, and in view of modern means of transportation, which would 
permit the landing of 350,000 men within three weeks from first embarkation 
in Europe, military authorities tell us that the United States should have not 
less than 500,000 equipped and trained troops ready to take the field instantly 
at the outbreak of a war, with ample trained reserves behind them. That 
the Government is woefully and pitiably lacking in ordnance, in field guns, in 
all the equipment that modern warfare has made essential to successful oper- 
ations, is known to every military man and every military authority within this 
country. We have no ammunition trains. The estimate of field guns neces- 
sary to the operation of 500,000 troops is 1,292. We have about 623 completed 
field guns, and about 225 under manufacture or contract, and these will not be 
finished for some twelve months. For these guns completed and under con- 
struction, we have approximately 27 per cent, of the estimated necessary 
ammunition. Our Government possesses not one of the new powerful, large- 
calibre mobile siege guns which have been winning the battles in the field on 
either side in Europe. The Government has in its possession not more than 
700,000 rifles. It is equally a matter of common knowledge that these muni- 
tions require a long time for their production. 

As to the Navy the General Board of the Department had re- 
ported in 1913 the "absence of any definite naval policy on our 
part except in the General Board, and the failure of the people, 
the Congress and the Executive Government to recognize the neces- 
sity for such a policy." In battleships, scout cruisers, aircraft, 
gunboats and personnel the Navy was stated to be very deficient. 
"No nation in time of peace keeps all the ships of its Navy fully 
manned and in full commission. But all leading nations except 
ourselves provide an active list, officers and men, sufficient to keep 
the best of their fleet in full commission." The country had not 
(according to the National Security League) for years been build- 
ing battleships, cruisers, scouts or destroyers, to match the greater 
Naval Powers in speed or in proportionate numbers. According to 
elaborate tables presented by Sidney Ballou to the Navy League of 
the United States, Apr. 10, 1916, the fighting value of all armoured 
ships calculated upon the F. T. Jane method was as follows : Great 
Britain, 754; Germany, 373; United States, 344; France, 313; 
Japan, 240. 

Meanwhile the Secretary for the Navy (Josephus Daniels) had 
recommended to the 1916 Congress the extra expenditure of $100,- 
000,000 a year for five years, with current appropriations of $28,- 
000,000, to continue authorized construction and $57,000,000 to 
begin the work along lines suggested the total estimates being 
$217,652,000. On June 27 a Conference of National Defence 
organizations met at Washington and passed Resolutions declaring 
(1) that the increase of the Regular Army contemplated by the 
Army Reorganization Bill which was the outcome of Secretary 


Baker's policy was chiefly an increase on paper, and one which 
could not become fully effective for five years and that, while creat- 
ing the impression that the Regular Army would be a force of 
178,000 men, as a matter of fact, the total mobile regular force was 
not likely to exceed 50,000 during the coming year; (2) that such 
was the unpreparedness of the citizen-soldiers who were being mobil- 
ized for service on the Mexican border that the Government which 
sent them and the nation which permitted them to be sent into the 
field without sufficient training and equipment could not escape the 
charge of blood-guiltiness; (3) that the Navy, as the first line of 
defence, should be restored at the earliest possible moment to the 
first rank in the Pacific and the second in the Atlantic and that 
Dreadnaughts and battle-cruisers, with the necessary auxiliaries 
including aircraft, scouts, destroyers and sea-going submarines, 
should be laid down at once to the full capacity of the building 
facilities of the United States. 

The President in this defence connection had presented a mes- 
sage to Congress at the end of 1915, urging greater preparedness in 
Naval and Military policy and he had followed this up by an early 
1916 tour of the West in which he made 20 speeches, urged immedi- 
ate action, and found little enthusiasm. Shortly after his return 
(Feb. 9) L. M. Garrison, Secretary for War, wrote to Mr. Wilson 
that: "I consider reliance upon the Militia for national defence 
an unjustifiable imperilling of the nation's safety." To this the 
President 's reply urged patience and the Secretary at once resigned. 
His policy had been one of preparation to put 500,000 men in the 
field against an existing maximum of 50,000 a year in recruits, 
great popular antagonism to Conscription and much indifference 
in Congress. 

A measure presented by James Hay to the House in March pro- 
vided for an Army of 140,000, tentative reserves of 60,000 and a 
Federalized National Guard of 425,000 men; G. E. Chamberlain 
in the Senate proposed a Federal Volunteer Army of 178,000 in- 
creased by recruiting to 250,000 in time of war ; a Conference Com- 
mittee of the Houses fixed upon 186,000 officers and men as the 
maximum peace strength ; this was accepted by the Senate but 
rejected in the House by 221 to 142, as was a proposal to increase 
the Hay number of 140,000 to 178,000. The Hay Bill passed in 
due course. As to the Navy, after much divergence of opinion be- 
tween the two Houses, a Bill was passed largely increasing the 
1915 proposals of the President and Mr. Daniels to a total of 10 
battleships, 6 battle-cruisers, 10 scout-cruisers, 50 destroyers, 58 
coast submarines, 9 fleet submarines, etc., to be completed in 
three years at a cost of $600,000,000 with a Naval vote of $315,- 
000,000 for the coming year. At the same time the provision for 
increasing personnel was inadequate and there was no provision 
for dry-docks fitted for a battle cruiser. The total "prepared- 
ness" or defence vote of Congress in 1916 was nearly $700,000,000. 

These debates evoked many strong statements. Major-Gen. 
Leonard Wood told the House Committee on Jan. 27 that the 
United States should have a regular Army of 220,000 with at least 


2,000,000 reserves behind them, and that the United States Navy 
was fourth in fighting efficiency and could not maintain control of 
the seas or defend American coasts. G. Von L. Meyer, ex-Secretary 
of the Navy, stated in New York on Mar. 4 that if war were de- 
clared to-morrow morning the Navy would be absolutely impotent 
in checking an invasion of the coast. "Our Navy has no organiza- 
tion prepared to act on a war footing; it has no tested war plan, 
mobilization plan, or general staff; it has a shortage of enlisted 
men and officers on practically every fighting ship, and no enlisted 
reserves ; we have no fast cruisers, with the exception of three that 
are obsolete ; we are lacking in armed hydro-planes and the lament- 
able condition of our submarine flotilla was demonstrated in the 
Fall manoeuvres. ' ' David Jayne Hill, former U. S. Ambassador to 
Germany, declared in Washington on Apr. 10 that the President's 
foreign policy had caused a complete loss of prestige to the nation, 
and rendered its Government a practically negligible quantity as 
an international influence. "The pressing question of the hour 
is, have we as a people abandoned the essential policies of a self- 
respecting nation ? " He demanded protection for every American 
citizen on land or sea. 

Elihu Root advocated universal military training and in a 
letter to General S. B. M. Young (Oct. 4) declared the volunteer 
system obsolete and the National Guard as inadequate and in- 
capable of serious improvement. On Dec. 7 Major-Gen. H. L. 
Scott's Report, as Chief of Staff, handled the failure in Mexican 
recruiting without gloves: "Public interest in the Army and 
Navy and the national defence generally had been aroused to a 
comparatively high degree, and in what was considered by the 
Government a grave emergency the National Guard was mobilized 
for service on the Southern frontier to protect the lives of Ameri- 
can men, women and children. Recruiting was found so difficult 
that many of its organizations have not yet, over three months after 
the call, been raised even to minimum peace strength, and likewise 
the units of the regular Army have not been recruited to the 
minimum peace strength authorized. . . . The failure should 
make the whole people realize that the volunteer system does not, 
and probably will not, give us either the men we need for training 
in peace or for service in war." To the Senate Committee on 
Military Affairs General Scott (Dec. 18) renewed his statement 
that Voluntaryism in the United States was and always had been 
a failure; that universal training was imperative and that: 

The conclusion of the War College Division, which is concurred in by 
the remainder of the General Staff, is that our system should be able now to 
furnish in round numbers 1,500,000 trained and organized troops at the out- 
break of war and 1,500,000 additional in ninety days thereafter. This is due to 
the fact that one of the Powers involved in the War and whose territory 
extends the whole length of our northern frontier has increased its Army from 
a relatively small force to a strength approximating that of the other great 
European powers. The Navy of this Power absolutely controls the sea, and 
its merchant marine is sufficient in extent to transport without delay over 
1,000,000 soldiers, with the necessary equipment for such an Army. 
It should be pointed out, also, that our northern neighbour is in alliance with a 
powerful Oriental nation another island empire which for the same reason, 


when acting in alliance with a Power which has control of the sea, has ability 
to send its Army of 2,250,000 to any part of the world without danger of 

As to the recent mobilization of troops for Mexico General 
Leonard Wood, in following, told the Committee that : " It is a most 
terrible and deep failure. Nothing could be more pronounced than 
the complete inefficiency. There is not a single regiment now on 
the border at war strength ; not one. There is a shortage of equip- 
ment and a shortage of men. Thirty per cent, of all the men in 
the Militia were physically unfit and had to be dropped. . . . 
The mounted troops were not equipped. They did not have horses. 
As far as the field artillery goes, some had no training, some had 
only a trifle. Our complement should have been 152,000 men. To- 
day we are short 47,000; in other words, 35 per cent." Newton D. 
Baker, the new Secretary for War, told the House on Dec. 19 that 
he had not made up his mind whether compulsory military service 
or a system of selective conscription was the best solution to the 
country's preparedness problem. "The needs of the country will 
be best served, I think, by a method of selection of soldiers not 
voluntary." He would not admit that the Militia had been tried 
and found wanting, declared the mobilization experiment ' * very 
encouraging," and hoped for a more efficient National Guard 
under Federal instead of State control. 

Meanwhile there had been an immense amount of discussion as 
to the general subject of preparation, pacificism and the present 
war. Mr. Garrison, before his retirement from the Cabinet, put 
the essentials very clearly National Guard Magazine for Feb- 
ruary : ' * Strength of mind, of body and of spirit, are pre-reauisites 
for progress along right lines. The essential basis of civilization 
is maintained by the triumph of what is right over what is wrong, 
and its progress can only be continued and assured so long as those 
who sustain the right are stronger than those who assert the wrong. 
Weakness inevitably results in overthrow, as the abundant instances 
of history demonstrate, both with respect to individuals, cities and 
nations. . . . Before leaving this, one is impelled to query upon 
what proper consideration there is based any distinction between 
the right or necessity or desirability of using mental force to repel 
error, moral force to repel evil, and physical force to repel wrong. ' ' 
To those who claimed that war would never come to the United 
States he pointed out that "wars have come upon nations from 
the earliest date of recorded history to this moment ; there is no 
basis of fact for such a position." 

As to the advocates of non-resistance he was explicit: "They 
base this counsel upon the expressed fear that if we possess force, 
we will be induced to use it when we should not. This position 
ignores the responsibilities which we have undertaken and which 
we must maintain at any self-sacrifice. It ignores the fact that if 
nations which possess force are likely to use it when they should 
not, some nation which has such force is likely to use it against us 
when it should not. It assumes that our nation may not be trusted 
with force for fear that it may misuse it." During these months, 


while politicians talked or acted and the masses lay more or less 
inert, a number of organizations became very active. 

Universal obligatory military service was urged by the National 
Security League and its Congress in Washington on Jan. 22; the 
National Defence Conference of Mayors at St. Louis on Mar. 4 
expressed approval of "the adoption of universal military train- 
ing under Federal control throughout the United States:" Presi- 
dent Hibben of Princeton, Cardinal Gibbons, Col. Roosevelt, T. A. 
Edison, Dr. C. W. Eliot, supported the policy as did Mayor 
Mitchel of New York, Hon. H. L. Stimson and Senator J. W. 
Wadsworth. On Dec. 17 figures were produced by the National 
Association for Universal Military Training, after a country-wide 
newspaper inquiry, which showed that 93 per cent, of those polled 
throughout the country favoured their principle, and that 87 y 2 
per cent, favoured its adoption by law in accordance with the 
Association's plan. 

Meantime, the Pacifists had proven their power. Out of the 
welter of nationalities and political uncertainties, and war-time 
lines and trenches of thought, had come a new Republic in which 
even the dominant Anglo-Saxon was uncertain of his foot-hold, be- 
wildered by new viewpoints, doubtful as to the national unity of 
which he had always been so proud. Into this chaos of conflicting 
sentiment came the pleasant lover of the easy ways of peace, backed 
by the selfish capitalist who cared more for profits than patriot- 
ism, the racial unit who wanted to help Germany and the workmen 
of limited horizon who could always find leaders to point the way 
to higher wages rather than National self-sacrifice. The horrors of 
all war and the impartial wickedness of all combatants outside of 
America and the duty of avoiding these horrors and evils ap- 
pealed to such men as Henry Ford, who stated on Jan. 2 that if 
the people wanted armament they would eventually get war. His 
' ' expedition ' ' had just passed through Germany in sealed cars and 
a little later it met at The Hague and elected a Permanent Peace 
Board to sit in Europe with W. J. Bryan, Henry Ford, Miss Jane 
Addams, Rev. Dr. C. F. Aked and Mrs. Joseph Fels as members 
at substantial salaries. 

Mr. Ford in a special article (New York Times, Apr. 23) de- 
clared that "we Americans have three duties before us. We must 
keep out of this war, for we have no right in it no matter what the 
Wall Street Tories and ' patriots' tell us through their newspaper 
spokesmen ; we must do all in our power to help the nations at war 
find a common ground for an early peace; we must take the lead 
in suggesting the limitation of armament that will lead to dis- 
armament." His Peace Party, or Neutral Conference, issued a 
manifesto in June signed by L. P. Lochner, General-Secretary, and 
declaring in elaborate detail the terms on which the belligerent 
nations must come together and principles which they should fol- 
low along lines which included such an extraordinary jumble of 
proposals as the following: "The recognition of the principle of 
the open door in all the colonies, protectorates, and spheres of 
influence ; the German colonies to be returned and the exchange 


of colonies made possible by satisfactory compensation ; Germany 's 
access to the Near East guaranteed with Freedom of the Seas and 
Parliamentary Control of Foreign Policy." Mr. Ford and his 
followers are mentioned here because they represented a much 
larger school of thought than outsiders realized and when, on Sept. 
15, it was announced that the Pacifist leader would support Mr. 
Wilson, there were many who regarded it as very significant 
especially when he undertook to spend $500,000 in advertising the 
fact that the President had kept the Nation out of war. 

Meanwhile, and all through the nation, meetings were being 
held and organizations formed to promote peace or urge prepared- 
ness, to oppose militarism, to support or oppose compulsory service, 
or the training of youth in arms. There was an infinite variety of 
motive and opinion back of these organizations. For instance, the 
American Peace and Arbitration League, with Messrs. Wilson, Taft 
and Roosevelt as Hon. Presidents, published a speech by the Presi- 
dent of Princeton University urging military preparedness as the 
best pathway to permanent peace; its platform included submis- 
sion of disputes to The Hague or a Joint Commission with (1) 
adequate armament for National Security and Defence, and (2) 
the gradual and proportionate limitation of the world burden of 
maximum armament by International agreement between the 
nations concerned. The Women's Peace Party, launched in 1915, 
enunciated the Ford policy of "early peace" and a Convention of 
neutral nations to compel it ; limitation of armaments and national- 
ization of their manufacture ; education of youth in ideals of peace, 
an international police in place of armies and navies, etc. Its 
Chairman was Jane Addams of Chicago. 

The American School Peace League organized the teachers in 
support of Pacificism, while the Church Peace Union, founded by 
Andrew Carnegie, had a similar mission amongst the churches. 
The American Peace Society, of which Louis P. Lochner was a 
Director, developed the general idea of peace and circulated liter- 
ature wherever an opening arose ; the International Peace Forum, 
with Mr. Carnegie as Vice-President, proposed to mould public 
opinion in the appalling nature and consequences of war; the 
Carnegie Endowment for International Peace, with its $10,000,000 
of capital devoted to "hastening the abolition of international 
war, ' ' dealt with the academic and scientific side of the question 
international study and education, with conciliation, wherever pos- 
sible. The League to enforce Peace was a different kind of organ- 
ization which proposed to carry the United States into a militant 
union of nations in an organization which would not permit the 
peace of the world to be broken. These organizations and others 
of a more indirect character, the many and influential branches 
of the German and Irish National Associations, all impressed 
upon a ready public mind the wickedness of war, while the great 
majority urged, also, the desirability of keeping out of it at almost 
any cost. 


united states President Wilson in his policy as a whole un- 

Leadersand doubtedly represented the masses of the American 
the war: The people. Whatever his personal views whether paci- 
ficism, opportunism or "pure Americanism" he was 
able to hold men of one extreme, such as Bryan, and 
Republicans of the opposite school, in sufficient number to ensure 
his position. He had to deal with a people profoundly immersed 
in business and pleasure, with politics regarded as either a pro- 
fessional game or a side issue, and with a nation which Norman 
Angell declared* at this time was "not interested in its foreign 
problem. It is far more interested in baseball. ' ' 

He had to deal with great numbers of patriotic, high-principled 
and intelligent individuals, above the masses, who preached peace 
as the Jesuit priests and the Puritans of old once preached reli- 
gion and saw nothing in life but social or moral reform ; with large 
numbers who practically believed money and morals to be the funda- 
mentals of democracy; with many millions of people coming from 
the countries at war who were in the main profoundly glad to 
be out of it and, in the case of the German element, profoundly 
anxious to keep the United States out of it; with 10 per cent, of 
the population coloured people who cared nothing at all for any- 
thing outside of their own interests and limited circle ; with those 
who believed there were greater grievances against Britain than 
Germany and who apparently put cotton and beef above human 
life; with those who thought the first militant duty of the United 
States was in the protection of American lives and property in 
Mexico; with the pro-German class which wanted an immediate 
embargo upon all shipments of munitions to the Allies and the 
warning of Americans off Atlantic shipping so as to give the 
submarine a free swing. 

A great leader of militant views might have led his people, 
formed public opinion, organized public action, despite these diffi- 
culties ; Mr. Wilson was content to represent and embody a passive 
and negative opinion of inaction too proud and too great to 
fight unless absolutely compelled. American History may, in 
point of fact, crown him with laurel as the President who had 
the courage to try and keep a peace-loving people out of war. It is 
possible that no other policy could have been carried through up 
to the end of 1916 ; that the masses would not have paid the money 
or given the men for a great war in which they thought they had 
no concern. When a famous old New England journal such as 
the Springfield Republican could advance the following reasons 
for not going into the conflict, it is obvious that President Wilson 
faced a National opinion which had other elements than those 
dominating New York and Boston: "(1) The bedevilling of 
American politics for a generation at least, because of the large 
number of people in the United States who sympathize with Ger- 
many, and the formation of secret organizations followed by 
chronic riots in New York, Cincinnati, Cleveland, Milwaukee, 

*NOTE. The Annals, American Academy of Political Science, July, 1916. 


Chicago and St. Louis, where pro-Teuton sympathy is strongest and 
most aggressive; (2) the blowing up of the Panama canal locks, 
the blowing up or burning of the national Capitol building and 
various state Capitols, and raids of the most recently-built German 
cruiser submarines to attack shipping at the harbours of Boston, 
New York and Philadelphia, with many American boys your 
boy being sent to die in the trenches of France and Flanders so 
that the map of Europe may be drawn to suit London, Paris, Eome 
and Petrograd." 

At New York on Jan. 27 President Wilson opened a campaign 
for what he called Preparedness, or better National Defence condi- 
tions, but it was vastly different from that voiced by Mr. Roosevelt. 
He said that in the past few months he had learned something as 
to the necessity for action in this respect; declared that " there is 
something deeper than peace and that is the perpetuation of 
national independence and individual liberty and political free- 
dom"; urged "a degree of military training with industrial educa- 
tion," but added the proviso that in special schools where this 
teaching prevailed "the military training should be subordinate 
to the higher objects of civil life." He concluded with a warning 
against those "who saw red when all the world seemed to run 
with blood" and eulogized the patriotism and good sense and 
unhurried resolution of the American people. "This is a peace- 
loving nation. We realize that everything we hold most dear 
depends upon the preservation of peace and the supremacy of those 
principles of justice and fair dealing upon which the supremacy 
of peace depends. I myself need hardly tell you that I am an 
ardent and determined and devoted partisan of peace." 

At Cleveland on the 29th he was emphatic as to the need for 
stronger Army and Navy forces and for Congressional action in 
this respect, and then came the keynote of all his speeches: "Amer- 
ica has done more than care for her own people and think of her 
own fortunes in these great matters. She has said ever since the 
time of President Monroe that she was the champion of freedom 
and the separate sovereignty of peoples throughout the Western 
Hemisphere. She is trustee for those ideals and she is pledged, 
deeply and permanently pledged, to keep those momentous prom- 
ises. She not only, therefore, must play her part in keeping this 
conflagration from spreading to the people of the United States; 
she must also keep this conflagration from spreading on this side 
of the sea." He once more urged neutrality in spirit and feeling 
as well as practice. 

At Pittsburg on the same day he held the scales between Paci- 
fists who wanted no preparation and the passion of people who 
wanted too much. "I believe that there should be provided, not 
a great militant force in this country, but a great reserve of ade- 
quate and available force which can be called on upon occasion. 
I have proposed that we should be supplied with at least a half 
million men accustomed to handle arms and live in camps. And 
that is a very small number as compared with the gigantic pro- 
portions of modern armies. And, therefore, it seems to me that no 


man can speak of proposals like that as if they pointed directly to 
Militarism." In Milwaukee (Jan. 30) the President spoke to a 
mixed racial audience and expressed himself in favour of Govern- 
ment manufacture of munitions for itself. He said that he knew 
the people wanted him to keep the nation out of war. There was 
prolonged applause. 'I pledge you,' he continued solemnly, 'that, 
God helping, I will keep it out of war.' ' 

At Chicago on the 31st he declared that * ' this War was brought 
on by rulers, and not by the people ; and I thank God there is no 
man in America who can bring war on without the consent of our 
people." The superiority of Americans over all other peoples was 
urged : ' ' Those looking at us from a distance don 't feel the strong 
pulses of ideals and principles that are in us. They don't feel the 
conviction of America that our mission is a mission of peace, and 
that righteousness cannot be maintained as a standard in the midst 
of arms." Following this, at St. Louis, he declared that "the 
American Navy ought to be incomparably the greatest Navy in 
the world." The net result of the tour was its effect upon Con- 
gress and the eventual passage of legislation strengthening both 
Army and Navy. 

Meanwhile the advocacy of an official warning to Americans to 
keep off armed merchant ships of belligerent nations had made 
headway in Congress. Senator T. P. Gore was the exponent of this 
feeling and it was one which, put into practice, would certainly 
have averted much danger of war over the Submarine issue. It 
was a part of the Bryan policy and had many supporters amongst 
the Democrats in both Houses including leaders such as Messrs. 
Clark, Kitchen and Flood. Mr. Bryan went even further and 
toward the end of February telegraphed his followers urging legis- 
lation to refuse passports to all Americans travelling on belliger- 
ent ships, to which Senator Cabot Lodge (Rep.) responded with 
the statement that "it would proclaim America to the world as a 
nation of cowards to tell our citizens they must not exercise their 
rights, and if they did so we would not protect them. A nation 
that will not protect its citizens cannot protect itself ; and if demo- 
cracy fails to protect itself, how can it hope to live?" Mr. Gore 
introduced a Resolution in the Senate (Feb. 25) declaring that no 
American should travel abroad at this juncture in a belligerent 
ship and, for a few days, the situation was tense with the press of 
the country, however, largely opposed to the proposed action. At 
this point Mr. Wilson wrote an important letter to Senator W. J. 
Stone, Chairman of the Foreign Relations Committee, from which 
the following extract is taken : 

You are right in assuming that I shall do everything in my power to keep 
the United States out of war. I think the country will feel no uneasiness 
about my course in that respect. Through many anxious months I have striven 
for that object, amidst difficulties more manifold that can have been appar- 
ent upon the surface, and so far I have succeeded. I do not doubt that I 
shall continue to succeed. ^ . . But, in any event, our duty is clear. No 
nation, no group of nations, has the right while war is in progress to alter or 
disregard the principles which all nations have agreed upon in mitigation of 
the horrors and sufferings of war, and if the clear rights of American citizens 
should ever unhappily be abridged or denied by any such action, we should, it 


seems to me, have in honour no choice as to what our own course should be. 
For my own part, I cannot consent to any abridgement of the rights of 
American citizens in any respect. The honour and safety of the nation are 
involved. . . . Once accept a single abatement of right and many other 
humiliations would certainly follow, and the whole fine fabric of international 
law might crumble under our hands piece by piece. 

At the same time Mr. Wilson wrote to Congressman E. W. 
Pou asking for an early vote in the Lower House upon this ques- 
tion which he regarded as a censure upon the Administration. The 
result of it all was that the Senate voted down the Gore motion by 
68 to 14 and the House a similar one of Mr. McLemore by 276 to 
143. The President was supreme and the fight had been won against 
what the New York Herald, the New York Sun and other papers, 
with many people in and out of Congress, claimed to be the hand 
of Germany and its friends. The Sussex message followed and 
won the Presidential wide approval for sturdy rhetorical support of 
United States rights and, at Charlotte on May 20, he discussed 
United States ideals and declared * ' untainted Americanism ' ' as the 
one great essential. Three days before he had been more explicit 
than usual in jumbling up all the nations concerned in one com- 
mon mass of wrong-doing : 

There are two reasons why the chief wish of Americans is for peace. 
One is that they love peace and have nothing to do with the present quarrel; 
the other is that they believe that the present quarrel has carried those engaged 
in it so far that they cannot be held to the ordinary standards of responsibility, 
and that, therefore, as some men have expressed it to me, since the rest of the 
world is mad why should we not simply refuse to have anything to do with 
the rest of the world in the ordinary channels of action? Why not let the 
storm pass, and then, when it is all over, have a reckoning! 

On May 29 Mr. Wilson addressed at Washington the League to 
Enforce Peace, of which W. H. Taft was President, and used 
preliminary words similar to those frequently expressed but which 
always aroused criticism from the small minority who believed the 
duty of the United States lay in the War: "With its causes and 
its objects we are not concerned. The obscure foundations from 
which its stupendous flood has burst forth we are not interested to 
search for or explore. ' ' Apart from the War, however, he asserted 
American rights in the result : ' ' We are not mere disconnected 
lookers-on. The longer tjie W T ar lasts the more deeply do we be- 
come concerned that it should be brought to an end and the world 
be permitted to resume its normal life and course again. And 
when it does come to an end, we shall be as much concerned as the 
nations at war to see peace assume an aspect of permanence." 

Mr. Wilson further described the fundamentals of American 
belief as (1) that every people has a right to choose the sovereignty 
under which they shall live; (2) that the small states of the world 
have a right to enjoy the same respect for their sovereignty and 
for their territorial integrity that great and powerful nations 
expect and insist upon; (3) that the world has a right to be free 
from every disturbance of its peace that has its origin in aggres- 
sion and disregard for the rights of people and nations. "So 
sincerely do we believe these things, ' ' the President went on, ' ' that 
I am sure I speak the mind and wish of the people of America 






when I say that the United States is willing to become a partner 
in any feasible association of nations formed in order to realize 
these objects and make them secure against violation." On the 
following day he told the same organization that "we are ready to 
fight for our rights when those rights are coincident with the rights 
of man and humanity. ' ' 

Then came the Elections with a Democratic platform of policy' 
set forth at the St. Louis Convention of June 14-16, which re-nom- 
inated President "Wilson, and announced the details of Party pol- 
icy as to trade and tariffs, preparedness and defence, Mexico and 
theoretical international relations, Conservation and Labour and 
other domestic matters. The spirit of the Convention was obvious 
from the start when Martin H. Glynn, Temporary Chairman, de- 
clared that Peace was what Woodrow Wilson stood for and the 
maintenance of peace the platform upon which he would be re- 
elected: "As a result of this policy America stands serene and 
confident, mighty and proud, a temple of peace and liberty in a 
world aflame, a sanctuary where the lamp of civilization burns 
clear and strong, a living, breathing monument to the statesman- 
ship of the great American who kept it free from the menace of 
European war. Wealth has come to us, power has come to us, but 
better than wealth or power we have maintained for ourselves and 
for our children a Nation dedicated to the ideals of peace rather 
than to the gospel of selfishness and slaughter." 

Senator 0. M. Jones, following, in his Chairman's address, 
stated that "when the Lusitania was sunk the militant voice of 
Theodore Roosevelt cried out for war, and if he had been President 
of the United States at that time, to-day 500,000 brave American 
sons would be contending around the fort of Verdun in this mighty 
maelstrom of blood thousands would have been buried in the 
ditches. Our President, patient, patriotic, farsighted, the real 
statesman, handled this question with the greatest ability, and won 
for America its greatest diplomatic victory." Neither in this nor 
other speeches eulogizing the Peace-maker and Democracy was 
there any differentiation between the nations involved or any 
recognition of any high principle or policy in Britain and her 
Allies. The following clauses in the Platform were the vital ones 
as to the War and the attitude of the Republic : 

1. We condemn as subversive of this Nation's unity and integrity, and 
as destructive to its welfare, the activities and designs of every group or 
organization, political or otherwise, that has for its object the advancement 
of the interest of a foreign Power, whether such object is promoted by in- 
timidating the Government, a political party, or representatives of the 
people, or which is calculated and tends to divide our people into antagonistic 

2. We favour the maintenance of an Army fully adequate to the require- 
ments of order, of safety, and of the protection of the Nation's rights; the 
fullest development of modern methods of sea-coast defence and the mainten- 
ance of an adequate reserve of citizens trained to arms and prepared to safe- 
guard the people and territory of the United States against any danger 
of hostile action which may unexpectedly arise; and a fixed policy for the con- 
tinuous development of a Navy worthy to support the great naval traditions 
of the United States and fully equal to the international tasks which this 
Nation hopes and expects to take a part in performing. 



3. We hold that it is the duty of the United States to use its power, not 
only to make itself safe at home, but also to make secure its just interests 
throughout the world, and, both for this end and in the interest of humanity, 
to assist the world in securing settled peace and justice, to maintain inviolate 
the complete security of the highway of the seas for the common and un- 
hindered use of all nations. 

4. The Monroe doctrine is reasserted as a principle of Democratic faith. 
That doctrine guarantees the Independent Eepublics of the two Americas 
against aggression from another continent. It implies, as well, the most 
scrupulous regard upon our part for the sovereignty of each of them. 

5. The American Government should protect American citizens in their 
rights not only at home but abroad, and any country having a Government 
should be held to strict accountability for any wrongs done them, either to 
person or to property. 

Speaking at this time (June 13) Mr. Wilson began his "Presiden- 
tial campaign by telling the West Point Military students that 
the United States was going to have a hand in the results of the 
War: "It is not going to be by accident that the results are worked- 
out, but by the purpose of the men who are strong enough to have 
guiding minds and indomitable wills when the time for decision 
and settlement comes." A succession of speeches followed this 
all clever in diction and thought, appealing to Americanism as an 
ideal and abstraction of justice, liberty and humanity and to 
"America first," in all things, as the essence of public policy and 
private practice. They evaded, as a rule, the great world-issues of 
the moment and put Europe aside as beyond the need of American 
consideration or policy unless Europe forced itself into contact 
with the United States. There were some exceptions, as when 
2,000 young Democrats came to his home at Long Branch and, 
amid cries of "We want Peace" he warned them that Republican 
success was dangerous : ' ' There is only one choice as against peace, 
and that is war. Some of the supporters of that party, a very great 
body of the supporters of that party, outspokenly declare they 
want war. ' ' 

At Omaha (Oct. 5) he told 7,000 persons, as a climax to a 
great Pacifist demonstration and amid street and other cries of 
"He kept us out of war," that "the causes of the European war 
are not plainly known. But Europe should understand us. We 
are holding off because when we use the force of this nation we 
want to know what we are using it for." At Cincinnati (Oct. 26) 
the President made the very definite statement that "this present 
War is the last war of this or any kind involving the world that 
the United States can keep out of. I believe that the business of 
neutrality is over, not because I want it to be over, but war now 
has such a scale that the position of neutrals becomes intolerable. ' ' 
At Buffalo on Nov. 1st he once more told an immense audience 
that the United States had no place or concern in the War: "We 
are not going to be drawn into quarrels which do not torch the 
thing towards which America has set her face. America is not 
interested in seeing one nation or one group of nations prevail 
against another. . . . We are not only not afraid to fight but 
not disinclined to fight when we can find something as big as 
American ideals." In New York on the next day he urged the 


destruction of financial privilege, the unity of races in the Republic, 
and proclaimed success for his policy on Nov. 7 : * ' This tide of 
humanity swelling in America is sweet with the purposes of peace ; 
it is wholesome with the judgments of justice." Upon one occasion 
only the President threw his uniform language of racial concilia- 
tion to the winds and that was in his emphatic reply on Sept. 29 to 
the accusation of J. A. 'Leary, President of the American Truth 
Society, that he was pro-British : "Your telegram received. I would 
feel deeply mortified to have you or anybody like you vote for me. 
Since you have access to many disloyal Americans, and I have not, 
I will ask you to convey this message to them." 

Such were the principles of peace, the doctrines of international 
relationship, upon which President Wilson sought re-election and 
for which, in the main, he obtained it. The Republican attitude 
was neither so clear nor so positive. Nothing could be more so 
than the utterances of Theodore Roosevelt but nothing could be 
more vague upon the War issue than the expressions of the finally- 
selected candidate Charles E. Hughes. Mr. Roosevelt neither 
changed his policy nor his vehement expressions of opinion when 
the Elections loomed up; he simply spoke with his usual freedom 
and force. On Jan. 14 he issued a statement declaring that " there 
is a hundred times the justification for interfering in Mexico that 
there was for interfering in Cuba. We did nothing when our 
citizens were murdered on the high seas by Germany. Apparently 
we intend to do nothing about the citizens that have been murdered 
by Mexico." In an interview given out on the 19th he added: "We 
should have interfered years ago. We should act through the 
regular Army for this kind of police work is not the work for 
volunteers. . . . But in noting the effect of watchful waiting 
in Mexico, do not forget the effect in the world-war of our policy 
of being too proud to fight. The despatches from Washington indi- 
cate that the pressure of the English fleet has caused Germany and 
Austria to believe it unsafe to carry on further their submarine 

warfare against helpless passenger ships Eight months 

have gone by since the Falaba and the Lusitania were sunk. Ship 
after ship has been sunk until the total of lives lost exceeds 2,200 
and President Wilson has done nothing except to write Notes, 
each Note being followed by a fresh outrage." In a speech at 
Brooklyn on Jan. 30 Mr. Roosevelt handled the issues of the day 
without gloves : 

Unfortunately it is evident that many of our public men are afraid of 
Germany, afraid of the professional German-American vote, and are willing to 
sacrifice the honour of their country to their fears. There is practically no 
French-American or English-American vote and these politicians, therefore, 
feel that they can act against England and France with safety and their 
motto is : ' Safety First. ' I ask Americans of German descent to stand 
against England when it is wrong. I ask that all alike stand as Americans 
and nothing else. I stand for ample preparedness in order to avert war and 
in order to avert disgrace and disaster, if war should come. I ask, moreover, 
that this nation in the great crisis of this world-war refuse to be tricked or 
bullied by foes without or by politicians within. I ask that our people 
remember that while their first duty is to the United States they have a 
second dty to humanity at large. I ask that we stand for property rights, 


but that we put human rights ahead of property rights, and finally that we 
show that we have it in us to dare to risk something and to suffer some 
discomfort and some loss, and, if necessary, some danger on behalf of a lofty 

In a volume of Essays published at this time Mr. Roosevelt 
argued that President Wilson had missed his opportunity for 
leadership and that his "too proud to fight" speech* had misguided 
the people. "This policy made our great democratic Common- 
wealth false to its duties and its ideals in a tremendous world- 
crisis at the very time when, if properly led, it could have rendered 
an inestimable service to all mankind, and could have placed itself 
on a higher pinnacle of worthy achievement than ever before. ' ' On 
Mar. 9 he denied any special desire for the Presidency and de- 
nounced the Wilson foreign policy in strong words: "The Ameri- 
can people should desire public servants and public policies signi- 
fying more than adroit cleverness in escaping action behind clouds 
of fine words, and with complete absorption of every faculty in 
devising constantly shifting hand-to-mouth measures fov escape 
from our international duty by the abandonment of our national 
honour measures due to sheer dread of various foreign Powers, 
tempered by a sometimes harmonizing and sometimes conflicting 
dread of various classes of voters, especially hyphenated voters, at 
home. ' ' 

A succession of similar utterances and writings along the same 
lines followed and on Apr. 23, in denouncing alleged peace-at-any- 
price policies and a lack of national preparedness which would 
involve useless bloodshed and possible disaster, the ex-President 
said: "In the event of war my four sons will go, and one, and 
perhaps both, of my sons-in-law ; I will go myself ; the young kins- 
folk and friends of my sons will go ; so my words are spoken with 
my eyes open." Preparedness was urged in all these speeches as 
well as just appreciation of the real issues of the War. At Chicago 
(Apr. 29) Mr. Roosevelt said: "Our prime duty, infinitely our 
most important duty, is the duty of preparedness. Unless we pre- 
pare in advance we cannot, when the crisis comes, be true to our- 
selves. We have been sinking into the position of the China of the 
Occident; and we will do well to remember that China pacifist 
China has not only been helpless to keep its own territory from 
spoliation and its own people from subjugation but has also been 
helpless to exert even the most minute degree of influence on behalf 
of right dealing among other nations. . . . The preparedness 
of a big, highly efficient Navy and a small, highly efficient regular 
Army will meet our immediate needs, and can be immediately 
undertaken. But ultimately, and to meet our permanent needs, 
I believe with all my heart in universal training and universal ser- 
vice on some modification of the Swiss and Australian systems 
adapted to the needs of our American life." 

At Detroit (May 19) he declared that "for 16 months the 
American Government has been employed in sending ultimatum 

*NOTE. See the study of United States Policy in The Canadian Annual Review 
for 1915. 


after ultimatum to Germany while Germany in equally monotonous 
succession sank ship after ship. While the Notes were being writ- 
ten the loss of life among non-combatants on ships, which were tor- 
pedoed and about which Notes were being written, was greater 
than the total number of lives lost in both the Union and Con- 
federate Navies during the entire Civil War. ... I firmly 
believe that if at the outset we had clearly made it evident that 
our words would be translated into deeds Germany would have 
yielded, the Lusitania and other ships would not have been sunk, 
and all this lamentable loss of life would have been avoided." In 
an address at Kansas City on May 30 Mr. Eoosevelt was emphatic 
as to Pacifists. " 'In actual practice,' he said, 'the professional 
pacifist is merely the tool of the sensual materialist, who has no 
ideals, whose shrivelled soul is wholly absorbed in automobiles, 
and the movies, and money-making, and in the policies of the cash 
register and the stock-ticker, and the life of fatted ease.' ' 

Then came the Elections. The spirit of the Republican National 
Convention at Chicago on June 7-10 was divided between the claims 
of the Peace-lovers in the land, the influence of the German element 
in the Party and the country, the old-time and proud war -record 
of a party once led by Lincoln and still forced to recognize Roose- 
velt as one of its later leaders. The platform chosen was not as 
clear along traditional lines of policy in respect to peace and war as 
was the Democratic one at St. Louis. While it denounced the 
President's policy in Mexico it did not advocate armed interven- 
tion; while urging preparedness for war the words and phrases 
used were general; it declared for tariff duties "reasonable in 
extent" and for a Tariff Commission. The War and Peace refer- 
ences were as follows : 

(1) We declare that we believe in and will enforce the protection of 
every American citizen in all the rights secured to him by the constitution, 
treaties and the law of nations, at home and abroad, by land and sea. 

(2) We desire peace, the peace of justice and right, and believe in 
maintaining a straight and honest neutrality between the belligerents in the 
great war in Europe. We must perform all our duties and insist upon all our 
rights as neutrals, without fear and without favour. We believe that peace 
and neutrality, as well as the dignity and influence of the United States, can- 
not be preserved by shifty expedients, by phrase-making, by performances in 
language, or by attitudes ever changing in an effort to secure groups or 

(3) We believe in the pacific settlement of international disputes and 
favour the establishment of a World Court for that purpose. 

(4) In order to maintain our peace and make certain the security of our 
people within our own borders, the country must have not only adequate, but 
thorough and complete national defence, ready for any emergency. We must 
have a sufficient and effective regular Army and a provision for ample re- 
serves, already drilled and disciplined, who can be called at once to the colours 
when the hour of danger comes. We must have a Navy, so strong and so well 
proportioned and equipped, so thoroughly ready and prepared, that no enemy 
can gain command of the sea and effect a landing in force on either our west- 
ern or our eastern coast. 

(5) We can perform our rightful part in promoting permanent interna- 
tional peace only by a willingness and a prepared ability to defend our own 
rights and the rights of other nations. 

(6) Failure to deal firmly and promptly with the menace of the Mexi- 
can disorders has brought conditions worse than warfare, and has weakened 


our national self-respect. Every resource of Government should forthwith be 
used to end those conditions, and protect from outrage the lives, honour, and* 
property of American men and women in Mexico. 

During this Convention which nominated Mr. Hughes as more 
likely to hold the votes of the Party than Col. Roosevelt the 
latter declined the nomination of the Progressive National Con- 
vention, whose banner he had carried in 1912 and which was 
sitting at the same time as the straight party gathering. In his 
letter of June 22 to its Committee Col. Roosevelt urged support 
for Mr. Hughes as possessing an ' ' instinct for efficiency, unbending 
integrity, and trained ability." As to certain current rumours 
which grew weighty with iteration he said: "It is urged against 
Mr. Hughes that he was supported by the various so-called German- 
American alliances. I believe that the attitude of these profes- 
sional German-Americans was due, not in the least to any liking for 
Mr. Hughes, but solely to their antagonism to me. ... I need 
hardly repeat what I have, already said in stern reprobation of this 
professional element." A succession of speeches for Mr. Hughes 
followed of which the keynote was given at Lewiston (Aug. 31) : 
' * Since 1912 we have had four years of a policy which has been an 
opiate to the spirit of idealism. It has meant the relaxation of our 
moral fibre. Horror of war, combined with a sordid appeal to self- 
interest and to fear, have paralyzed the nation's conscience." 

At Battle Creek, Mich., (Sept. 30) he dealt with Mr. Wilson's 
submarine policy: "On Feb. 10 (1915) President Wilson issued his 
Strict Accountability note. On Mar. 28 the Falaba was torpedoed. 
If he had then made good his words; if he had immediately held 
Germany to strict accountability, not one of the subsequent sinkings 
would have taken place. The Lusitania, the Arabic, the Persia, the 
Sussex and the other vessels would be afloat, and 2,300 men, women 
and children would be alive. ' ' At New York on Oct. 3, on a plat- 
form from which Mr. Hughes and W. H. Taft also spoke, Mr. Roose- 
velt declared that "under the administration of Charles E. Hughes 
the laws of humanity and the rights of non-combatants shall be 
rigidly respected." During these speeches Mr. Roosevelt de- 
nounced in every possible form the German- American "hyphen- 
ates" at Chicago on Oct. 26 describing them as "fifty-fifty loyal- 
ists" to two countries and as guilty of "moral treason" to the 
United States. At New York, again, (Nov. 3) he declared that if 
the President was re-elected "we would show ourselves for the time 
being a sordid, soft and spineless nation; content to accept any 
and every insult ; content to pay no heed to the most flagrant 
wrongs done to the small and weak ; anxious only to gather in every 
dollar that we can, to spend it in luxury, and to replace it by any 
form of money-making which we can follow with safety to our own 

Meantime Mr. Hughes had been speaking in all the chief cen- 
tres of the Republic. Lacking Col. Roosevelt's fiery vigour and 
President Wilson's urbane smoothness of diction, he was further 
hampered by an apparent desire to hold the scales even between 
German-Americans and other racial entities of the Republic. 


Whatever his chief supporter might say he must hold aloof from 
entangling utterances! Upon other subjects he was clear in state- 
ment as in his reference to the Labour legislation of the Adminis- 
tration (Milwaukee, Sept. 20) which had averted the great Eailway 
strike by granting, through Congress, practically everything de- 
manded : " I won 't stand for any abuses. I don 't care what power 
it is, whether it is the power of Labour or the power of Capital, I 
am opposed to surrendering American government to any demands 
of force." Through all his chief utterances in a 30,000-mile tour 
with its 500 speeches ran the note of his Acceptance speech of Aug. 
1st ' ' America first and America efficient. ' ' 

Mr. Hughes' references to the War always held matters even 
between the belligerents, as at Philadelphia (Oct. 9) : "We propose 
to protect American lives on land and sea. We do not propose to 
tolerate any improper interferences with American property, with 
American mails or with legitimate commercial intercourse. No 
American who is exercising only American rights shall be put on 
any Blacklist by any foreign nation. We propose to protect 
American lives, American property and American trade according 
to our rights under International law." His attitude upon the 
Lusitania episode was as ' ' neutral ' ' as any Democrat could desire ; 
his references as to what he would have done if in power were very 
vague. The clearest was at Louisville on Oct. 12 when he answered a 
question thus: "When I said 'strict accountability' every nation 
would have known that that was meant ; when that notice was pub- 
lished with respect to the action threatened I would have made it 
known in terms unmistakable that we would not tolerate a continu- 
ance of friendly relations through the ordinary diplomatic chan- 
nels if that action were taken and the Lusitania, sir, would never 
have been sunk.!' 

Meanwhile the Democrats had been continuously charging Mr. 
Hughes with courting the German vote by what he said and didn't 
say; in New York on Oct. 24 he declared that, if his Party were 
elected, ' ' we shall not tolerate the use of our soil for the purpose of 
alien intrigues. We shall not permit foreign influences or threats 
from any quarter to swerve our action." The American ideals 
expressed in all his campaign speeches were much the same as Mr. 
Wilson 's ; the aloofness from Europe and the War in thought and 
phrase was exactly similar; there was no difference in the two 
candidates' desire to avoid recognition of any world-principle or 
moral issue being at stake in the War; the love of peace professed 
by each was identical. As Mr. Hughes put it at Ogdensburg (Oct. 
28) : "We do not want^war. I am amazed at the audacity of the 
assertion that a vote for me is a vote for war. I am a man devoted 
to peace." Neither candidate hinted at any intention to take part 
in the War ; even Mr. Roosevelt did not go further than to say what 
he would have done in the past. a 

The result of the contest was a triumph for Mr. Wilson, a deci- 
sive victory for his general policy and attitude in the War, a vindi- 
cation of his belief that the people wanted peace and prosperity and 
were behind his Administration in its keeping of the nation neutral 


in spirit and in fact. At first it was believed and announced in the 
press that the President was defeated ; finally certain States swung 
into his column and the popular vote was found to be 9,116,296 for 
Mr. Wilson and 8,547,474 for Mr. Hughes. In 1912 the former had 
only received 6,293,019 votes with the Republicans divided between 
Taft and Roosevelt, and he now came back to Washington with a 
clear public mandate from a country normally Republican. It was 
said that the women's vote, of which 2,000,000 were polled, elected 
Mr. Wilson and that this was due (1) to his distinct promise to 
fight for the further extension of their franchise and (2) to their 
Pacifist tendencies of thought. The Progressives of the Western 
States did not follow Mr. Roosevelt 's lead back into Republicanism 
as expected ; while the President 's policy in the Railway strike crisis 
and the declaration of the Labour leader, Samuel Gompers, (Nov. 5) 
that ' ' in this campaign Woodrow Wilson stands for all that is true 
to labour, justice, patriotism, freedom and humanity," had much 
to do with the result. 

It did not appear that Mr. Hughes controlled the German- 
American vote, though that vote did ensure his nomination at 
Chicago in order to defeat Roosevelt or Root. In and .n round 
Chicago, Cincinnati, St. Louis, St. Paul and Des Moines, however, 
the German organizations were active and, in the main, against Mr. 
Wilson ; as a whole the German press of the United States opposed 
the President and favoured Mr. Hughes because his views and 
record were colourless and, no doubt also, because the opportunity 
offered to show their strength with a voting power stated at 
1,200,000. At a great Hughes meeting in New York on Oct. 22 
Henry Weissman, President of the New York German- American 
Alliance, was in the chair and, after denouncing President Wilson 
in set terms, he declared that it was not he who had kept the United 
States out of war but the Kaiser! As a matter of fact, however, 
the leaders and their press could not deliver all the goods and Mr. 
Hughes lost votes in Milwaukee, Illinois and Cincinnati though 
successful in other German centres; details indicated losses and 
gains in general without any apparent rush of the German vote 
one way or the other. 

controversies ^ke ^ ssues between the American Republic and 

with Germany; the Central Powers at the beginning of this year 
President were still unsettled and turned upon how far the lat- 

DM^mac ter wou ^ stand by such limited pledges as had been 

made with, also, negotiations still pending as to the 
Lusitania, etc. The attitude of the Wilson Administration had 
been one of persistent protest against German infractions of neu- 
tral rights. The first was against the German announcement as to 
sinking all merchant vessels belonging to the Allies which was met, 
Feb. 10, 1915, by the United States Government's statement that 
it would be an ' ' indefensible violation ' ' of neutral rights for which 
the German Government would be held " to a strict accountability ; ' ' 
then followed the sinking of the Faldba, Gulflight and Lusitania 
and on May 13 the President's declaration that "manifestly sub- 



marines cannot be used against merchantmen, as the last few weeks 
have shown, without an inevitable violation of many sacred prin- 
ciples of justice and humanity"; then the Armenia and Orduna 
were sunk the latter without warning and on July 21 the Ger- 
man Government were advised that another such action would be 
regarded as "deliberately unfriendly"; the sinking of the Arabic 
followed and then came a German assurance (Sept. 1) that "liners 
will not be sunk by our submarines without warning and without 
safety of the lives of non-combatants, provided that the liners do 
not try to escape or offer resistance." The sinking of the Ancona 
and Persia succeeded with lives of Americans lost on all these occa- 

The latter action, by which 400 lives were lost, aroused much 
strong comment in the United States press early in 1916 but before 
the agitation could develop Mr. Secretary Lansing announced on 
Jan. 7 at Washington that Germany had presented the following 
general statement, renewing a preceding pledge, through Count 
Von Bernstorff: "German submarines are permitted to destroy 
enemy merchant vessels in the Mediterranean, i.e., passenger as 
well as freight ships, as far as they do not try to escape or offer 
resistance only after passengers and crews have been accorded 
safety. ... If commanders of German submarines should not 
have obeyed the orders given to them they shall be punished; fur- 
thermore, the German Government will immediately make repara- 
tion for damage caused by death or injuries to American citizens. ' ' 
The Administration regarded this as a concession and so did a part 
of the press. On Jan. 18 the Secretary of State (Hon. Robert 
Lansing) directed to the United States Ambassadors abroad a let- 
ter of advice and suggestion as to the desirability of not arming 
belligerent merchant ships in order to save the lives of non-com- 
batants. His preliminary observation was as follows: "I do not 
feel that a belligerent should be deprived of the proper use of sub- 
marines in the interruption of enemy commerce since those instru- 
ments of war have proven their effectiveness in this particular 
branch of warfare on the high seas.*" Certain rules were sug- 
gested as to stopping, when ordered by a submarine, and as to 
methods of attack, and then Mr. Lansing proceeded: 

The use of the submarine, however, has changed these "relations. Com- 
parison of the defensive strength of a cruiser and a submarine shows that the 
latter, relying for protection on its power to submerge, is almost defenseless 
in point of construction. Even a merchant ship carrying a small calibre gun 
would be able to use it effectively for offence against a submarine. Moreover, 
pirates and sea rovers have been swept from the main trade channels of the 
seas, and privateering has been abolished. Consequently, the placing of guns 
on merchantmen at the present day of submarine warfare can be explained 
only on the ground of a purpose to render merchantmen superior in force to 
submarines and to prevent warning and visit and search by them. Any arm- 
ament, therefore, on a merchant vessel would seem to have the character of an 
offensive armament. 

He, therefore, urged the prohibition of merchant vessels "from 
carrying any armament whatever." On Feb. 10 the Central Pow- 

*NOTE. These extracts are from the official correspondence as published by the 
United States Department of State European War No. 3. 


ers took their next important step in submarine policy. A year 
before they had announced the intention to sink all belligerent 
merchant ships if possible with a later pledge as to giving warn- 
ing and saving lives ; now they proclaimed the policy of sinking such 
ships without warning.* The Memorandum presented by the Ger- 
man Ambassador reviewed alleged actions of the British Govern- 
ment in arming its merchantmen; claimed that "a merchantman 
assumes a warlike character by armament with guns regardless of 
whether the guns are intended to serve for defence or attack. ' ' and 
formally declared that "the German Naval forces will receive 
orders, paying consideration to the interests of neutrals, to treat 
such vessels as belligerents ' ' which carried the right to sink with- 
out warning. A similar Note was issued by Austria-Hungary. 
Meantime, the Entente Powers had unanimously declined to accept 
Mr. Lansing's proposals which had come so opportunely, for Ger- 
many's new course of action and he accepted their decision The 
German Government had, meanwhile, accepted the proposals and 
hoped (Bernstorff Memorandum, Mar. 8) for their recognition by 
the Allies. 

Amongst the shipping sunk as a result of this new policy 
which came into force on Mar. 1st and to which no specific official 
protest went from the United States was the Sussex, an unarmed 
French steamer sunk by a torpedo in the English Channel on 
Mar. 24, without warning, with 325 passengers on board and about 
80 lives lost, of which some were American. A Despatch from the 
Secretary of State to Berlin on Apr. 18 pointed out these facts and 
others ascertained after careful investigation, stated that other 
vessels had recently been sunk in similar fashion, and described 
this as "one of the most extreme and most distressing instances 
of the deliberate method and spirit of indiscriminate destruction 
of merchant vessels of all sorts, nationalities, and destinations which 
have become more and more unmistakable as the activity of German 
undersea vessels of war has in recent months been quickened and 
extended." The United States position of a year before was re- 
stated and, in definite terms, Mr. Lansing declared that this 
method of warfare was "utterly incompatible with the principles 
of humanity, the long-established and incontrovertible rights of 
neutrals, and the sacred immunities of non-combatants." If it 
was the purpose of the German Government to continue its ruth- 
less and indiscriminate warfare by submarines there was only one 
course for the United States to pursue : ' ' Unless the Imperial Gov- 
ernment should now immediately declare and effect an abandon- 
ment of its present methods of submarine warfare against passenger 
and freight carrying vessels, the Government of the United States 
can have no choice but to sever diplomatic relations with the Gov- 
ernment of the German Empire altogether." 

During the next three weeks there was tense excitement at 
Washington, much talk as to the country being on the verge of 
war, press comments which gave approval almost unanimously to 

*NOTE. Early in 1917 neutral ships were added to the belligerent list. 


the President's policy as above apart from the German and 
Hearst papers. On Apr. 19 the President followed up his Note 
these diplomatic documents were generally admitted to be his 
though signed by the Secretary of State with a formal address to 
Congress in terms very similar to his despatch and concluding as 
follows : ' ' We owe it to a due regard for our own rights as a nation, 
to our sense of duty as a representative of the rights of neutrals 
the world over, and to a just conception of the rights of mankind, 
to take this stand now with the utmost solemnity and firmness." 
The reply of Herr Von Jagow (May 4) denied the general charges 
of the American despatch, though admitting occasional errors; 
reviewed once more the alleged British breach of International 
law in trying to starve the German people by blockade, and the 
consequent justification of the submarine policy; and then an- 
nounced the following orders to its Naval forces really a repeti- 
tion of those of Sept. 1, 1915: "In accordance with the general 
principles of visit and search and destruction of merchant vessels 
recognized by International law, such vessels, both within and 
without the area declared as Naval war-zone, shall not be sunk 
without warning and without saving human lives, unless these 
ships attempt to escape or offer resistance." At the same time the 
confident belief was expressed that the United States would now 
co-operate with Germany in compelling Britain to restore "the 
freedom of the seas. ' ' 

The American reply (May 8) expressed gratification at this 
recognition of its demands but declined to, in any way, discuss 
this question as connected with the other British issue specified by 
Germany. "Responsibility in such matters is single not joint; 
absolute not relative." As to the rest the Government of the 
United States would ' * rely upon a scrupulous execution henceforth 
of the now altered policy of the Imperial Government." The 
American press was divided as to the German attitude but it had 
the effect of robbing the situation of all war danger or sensational 
utterance. Two things appear obvious, however, (1) that the 
German ' ' concession ' ' simply repeated a preceding declaration and 
(2) that the clause about "ships attempting to escape" provided 
an ample excuse for any future action. Following this "settle- 
ment" it was announced by the British Admiralty on Nov. 15 that 
between May 5 and Nov. 8 following 33 vessels were sunk by Ger- 
man submarines without warning and 140 lives lost. Those with 
which the United States was directly concerned were the British 
Marina, sunk on Oct. 28 off the Irish coast with 6 American lives 
lost, ancj. the Arabia, in the Mediterranean on Nov. 6 with one 
American on board who was saved. 

Within a few months ten inquiries were sent to Berlin by the 
United States as to the sinking of these and other ships but in 
each case some kind of an explanation was given which presumably 
the United States accepted although there were various denials 
as to statements of fact from the British Government. In the 
case of the Marina the German excuse was that she was a British 
troop ship ; the reply was that she had never been anything but a 


peaceful, private merchantman, and proofs of this were submitted 
to Washington. Later boats to suffer were the Columbian, the 
Russian and the Palermo. Subsidiary to these matters had been 
the sinking of the American steamer Petrolite by an Austrian sub- 
marine on Dec. 5, 1915, which, after long negotiations, evoked on 
June 21 a despatch to the Ambassador at Vienna including the 
statement : ' l In the absence of other and more satisfactory explana- 
tion of the attack on the steamer than that contained in the Note 
addressed to you by the Foreign Office, the Government of the 
United States is compelled to regard the conduct of the com- 
mander of the submarine, in attacking the Petrolite and in coerc- 
ing the Captain, as a deliberate insult to the flag of the United 
States and an invasion of the rights of American citizens." Apol- 
ogy, punishment and reparation were demanded. Late in the year 
a compromise arrangement was come to. Concurrently with all 
these issues had run informal negotiations for a settlement of the 
Lusitania matter which did not, however, reach any final solution 
Germany being willing to pay indemnities but unwilling to 
acknowledge that her action was wrong. 

A new development came on July 9 in the arrival at Baltimore 
of the Deutschland a large submarine merchantman which was 
claimed to be quite unarmed and to have a cargo of 750 tons of 
dyestuffs. The return cargo was said to be all ready and to consist 
of nickel and special supplies. Much was made of this incident 
by the sensational or pro-German press as revolutionizing Naval 
war and trade; the United States Government decided to accept 
the submarine as a merchant ship with all the usual privileges; 
and, after some weeks in harbour the Deutschland left for home on 
Aug. 1 loaded with crude rubber, bar nickel and crude tin accord- 
ing to local statements. The Allied Governments followed with a 
protest against submarines using neutral ports or waters on the 
ground that "any place which provides a submarine warship, far 
from its base, with an opportunity for rest and replenishment of 
its supplies, thereby furnishes such addition to its powers that 
the place becomes in fact, through the advantages which it gives, a 
base of naval operations." It was, also, pointed out that grave 
danger would follow to neutral submarines in such waters. Mr. 
Lansing, for his Government (Aug. 31, 1916), refused to accept 
these views, in rather tart terms "reserved liberty of action" to 
deal with such vessels, and added : ' ' The Government of the United 
States announces to the Allied Powers that it holds it to be the 
duty of belligerent Powers to distinguish between submarines of 
neutral and belligerent nationality." 

Following upon this incident was the arrival of the German 
submarine U 53 at Newport on Oct. 7 flying the German flag and 
with disappearing guns mounted fore and aft. After an exchange 
of courtesies it steamed out of the harbour and next day, off Nan- 
tucket, sank 6 ships, of which 4 were British, one Dutch and one 
Norwegian with a total tonnage of about 15,000. United States 
destroyers were present in time to save all lives and, as the 
despatches in the press, put it "to see fair play." There was 


panic for the moment in shipping circles and a practical blockade of 
United States ports for a few days ; there were all kinds of stories 
as to varied elements in a new submarine war. Then the submar- 
ine appeared to be going homeward and, watched by the United 
States Torpedo-boat Balch, about 60 miles from shore, it sank the 
steamer Stephana after putting the American passengers on 
board into boats. About the same time the Dutch liner Bloomerad- 
juk was sunk with another United States destroyer (The Benham) 
looking on and, according to one of its officers, Lieut. L. C. Carey, 
obeying the request of U 53 to get out of the way of its torpedo.* 
In November the Deutschland was back again and obtained another 
cargo but, from all accounts, was captured by the British on its 
return voyage while its sister-ship, the Bremen, also appears to have 
been lost. 

The year closed with vigorous protests from the Administra- 
tion against the German policy of deporting Belgians for labour 
in Germany or in the trenches. On Nov. 29 a despatch was sent 
stating that "the Government of the United States has learned 
with the greatest concern and regret of the policy of the German 
Government to deport from Belgium a portion of the civilian 
population for the purpose of forcing them to labour in Germany, 
and is constrained to protest in a friendly spirit, but most solemnly, 
against this action, which is in contravention of all precedents and 
of humane principles of international practice. ' ' Germany replied 
that its action was an attempted solution of an unemployed pro- 
blem involving 1,200,000 persons and that to relieve this the Gov- 
ernor-General had, on May 15, 1916, issued an order under which, 
"persons enjoying public relief and declining without adequate 
reasons to accept or to continue to do work corresponding to their 
abilities," had confinement or coercive labour imposed. The action 
was claimed to be quite in accordance with The Hague Convention. 
The President also tried to arrange a plan for the relief of Poland 
but on Oct. 17 was compelled to announce that the Belligerent 
Powers could not reach an agreement as Germany refused to 
give any guarantees that such foodstuffs would be used only by non- 

German The National German Alliance was a strong 

organizations United States organization during these years ; it had 
in the united a i ar g e membership variously described but running 
' * nto ^ e m iUi ns 5 it included many members who 

were Americans first, many who wanted and believed 
the interests of the United States and Germany to run together; 
others who were prepared to use force or any other influence to 
help their native land. It is not probable that this organization 
held more than 1,000,000 voters and it is clear that in the Elections 
even these were divided. But the mere threat of unity was natur- 
ally a potent force with politicians and certainly had influence 
in promoting or determining some State elections, various Party 
nominations and some Congressional policy. 

*NOTB. Private Letter quoted in New York Tribune, Oct. 16, 1916. 


The Alliance programme was declared by the New York World 
(Mar. 7) to demand the refusal of passports to Americans travel- 
ling on ships of the belligerents, an embargo on contraband of war, 
and the prohibition of Federal Reserve banks subscribing to for- 
eign war loans. If so, they only obtained the last. But the mere 
pressure of 8,817,000 people (Census of 1910) of German origin, or 
10 per cent, of the population, was sufficient to create divisions and 
form public opinion no matter how this population was sorted 
out and sifted down into the mass. It appeared that only 2,501,000 
were actually born in Germany (with 1,670,000 more born in Aus- 
tria-Hungary) and that many of them had lost their early associa- 
tions ; that 3,911,000 were born in the States of German parentage 
and 1,869,000 of one German parent, while others were descended 
from Germans of revolutionary days. Added to this element were 
a large mixed population from Poland, the Balkans, etc., a dis- 
tinct percentage of pro-German Irish out of 1,352,000 people 
born in Ireland and settled in the States, with a number of 
Jews and Swedes holding racial animosities against Russia. Since 
1910 there had been 350,000 German immigrants and there were 
said, in Germany, to be 300,000 reservists in the United States Ger- 
man population. With all the contra influences of public schools 
and business, the press and educated opinion, this left a wide 
margin for agitators to work upon aided by a multitude of special 
publications and journals published in the native languages. 

At the very most or best this element could have no friendship 
for the Allies or the Allied cause, no desire to support policies or 
men promising any risk of war. They would be Americans pure 
and simple with a feeling as to keeping out of the War similar, in 
effect, to the inherited and anti-British feeling or suspicion of many 
English-speaking Americans, which tended to make them honestly 
neutral. At the worst they would organize and vehemently oppose 
any action likely to take the Republic into the War and vigorously 
support all pro-German advocacy and policy. Upon the top of the 
agitation which followed, and which was inevitable, came the froth 
and foam of violence which, though sensational in details and press 
comment, was not at any time really serious. 

Ridder and his Staats Zeitung, Viereck and his Fatherland 
and International, with German-language papers in all the centres, 
and the Irish World in New York, took other means of reaching 
results. They worked for war with Mexico which diverted some 
recruits and much munition and, perhaps, money from the Allies 
while keeping the United States too busy to bother about German 
policy on the seas ; for Mr. Bryan 's policy of no Americans on bel- 
ligerent ships and no addition to United States defences ; for peace 
in any of the myriad shapes in which that agitation presented 
itself and for all the doctrines of the Pacifist school ; for the prin- 
ciple of no interference in outside affairs and the one ideal of 
America for the Americans ; for the presentation of a Germany very 
different in kind frdm the stern knowledge and experience of 
Europe ; for the embroilment of the United States, if in any way 
possible, with Great Britain. 



The methods used by Germany in the United States had been 
many and included the espionage system which centred at its Em- 
bassy in Washington and the diplomatic policies described in 
Thayer's Life of John Hay; the visit and observations of Prince 
Henry of Prussia and the practical work and visit of Von Bern- 
hardi ; the organization of a League of German soldiers and visits 
of German military societies to the United States ; the exchange of 
Professors between American and German Universities and the 
pilgrimage of many students not confined to the United States 
to the Teutonic shrines of learning; the flooding of the American 
market with cheap books and literature having Germany as the 
text or the teaching of the German language as an excuse. Some 
of these things were not in themselves reprehensible; the after- 
war revelations as to Germany's schemes in all countries made 
them suspicious until the Von Papen revelations and dismissal 
turned popular suspicion into certainty. According to the estimate 
of George Haven Putnam, President of the American Rights League, 
$27,000,000 were spent in America from the beginning of the 
War up to the end of 1916, under German authority, for propa- 
ganda work, destruction of American property, furtherance of 
strikes, and the purchase of American papers. 

It was frequently stated and elaborately reasoned at Washing- 
ton, by officials who, of course, would not give their names, that 
every important document fyled in any of the State Departments 
on international affairs, or on Defence conditions, or new patents 
and discoveries such as the wireless-controlled Fish torpedo, or 
other guns and projectiles, promptly found its way in copies or 
detailed form into German hands. According to W. H. Skaggs in 
a book, entitled German Conspiracies in America, it was stated that 
' ' the whole United States is ' Spy-ridden ' ; German spies are every- 
where, engaged in every line of business, employment, trade, and 
profession. They are always on the alert; their system extends 
from the most humble servant to the German Embassy at Wash- 
ington." Mr. Skaggs also declared that the German beer interests 
in the United States were all-powerful with a large population. 
Besides these interests in beer-producing cities the Germans had a 
monopoly of the whisky business in the South. "They ha^i de- 
bauched everything that could be reached with their money or poli- 
tical intrigue. The story of corrupt practices, crime and vice, with 
the suffering and sorrow that the German whisky dealers have 
brought upon the poor whites and negroes of the South is as shock- 
ing as the record of atrocities in Belgium." Much of this evil was 
due to the traffic and to human weakness not especially to Ger- 
mans but there was enough to indicate a class from which trouble 
might come. Most of the Germans in the States were not Prus- 
sians and their assimilation should, therefore, have been easier than 
appeared ; no doubt also, many of them were as opposed to German 
militarism as any English-American could be. Still, the element 
was large enough and strong enough to make formidable conspir- 
acies possible, with recurrent but spasmodic episodes of violence, in 


the explosion of munition plants, planting of ships with bombs, 
terrorizing 'banks with financial threats and attempts upon Can- 
adian railways, canals and buildings. 

There were public men and public interests and some financial 
institutions ready to aid in pro-German manipulation of public 
opinion. The American Truth Society with J. A. O'Leary, Presi- 
dent, whose support Mr. Wilson had, finally, to repudiate, was one ; 
the American Embargo Conference and its satellite, the American 
Commerce Protective Committee (under control of W. E. Mac- 
Donald) issued millions of circular letters drawing attention to 
"the insolent manner in which Great Britain is ignoring our 
Nation's rights, how our mails are seized and rifled; how Red Cross 
supplies intended for the wounded in Europe are held up on New 
York piers, and how American citizens attempting to carry finan- 
cial relief to the suffering citizens of Ireland are turned back by 
the British authorities"; the Irish American Alliance and the 
Friends of Irish Freedom were others and the Order of American 
Women for Strict Neutrality obtained an immense Petition to the 
Senate in favour of an embargo on Munitions ; Senators T. P. Gore, 
Hoke Smith, G. M. Hitchcock, W. S. Kenyon, M. E. Clapp, H. F. 
Ashurst, J. E. Martine, all worked for the Munitions embargo; 
Senators J. D. Phelan, J. A. 'Gorman and J. K. Vardaman joined 
in denunciation of Britain's Irish policy and appeals for Roger 
Casement; the American Neutral Conference Committee, with 
Hamilton Holt, Jacob G. Schiff, Oswald G. Villard and Dr. D. 
Starr Jordan, as the leaders, was formed to force opinion in Europe 
along the lines of a premature peace which would have been a 
triumph for German militarism; Senator G. E. Chamberlain, at 
New York on Jan. 8, declared that Britain must be brought to 
book and that the purpose of the British Alliance with Japan was 
to intimidate the people of the United States; James W. Gerard, 
United States Ambassador to Germany, assumed the Presidency 
of the American Relief Committee for German Widows and 
Orphans of the War and issued an appeal (Nov. 27, 1916) in which 
he stated that he would ' ' be careful to let the German public know 
from whence the money comes" ; Dr. C. A. Hexamer of the German- 
American Alliance, ex-Congressman Richard Bartholdt and his 
American Independence League, urged Peace intervention and 
necessity at every opportunity. 

In touch with all such neutral sympathizers and politicians but 
apart from some in his real work and objects was Count Von 
Bernstorff, head of the German Embassy, a clever and socially- 
popular Ambassador, a master and a leader in manipulating men 
and he had many capable instruments at hand such as Von Papen, 
Dr. Albert, Boy-Ed, Von Igel and Franz Bopp, with help for a 
time from Dr. Dumba, Austrian Ambassador. The circle of con- 
spiracy in which Von Bernstorff and his men appear to have moved 
was a small one but its ramifications were wide and its indirect 
influence personal and political greater than surface indications 



showed. In the papers seized by British officers from Capt. Von 
Papen and duly published, there was clear evidence of these con- 
ditions and of German intrigues in Mexico, of attempts to influ- 
ence the United States press, of cheques payable to persons guilty 
of violent attempts upon Canada such as Horn, Von Wedell, 
Kupfuerle and Hans Tauscher. The latter was a friend of Von. 
Papen, agent of the Krupps in America, Captain in the German 
Reserves and husband of Mine. Johanna Gadski, the singer. An- 
other figure in the drama of these events as they unrolled during 
1916 was Horst Von der Goltz, a German spy arrested in London 
as B. W. Taylor, who confessed the various plots he had been 
associated with and was granted safe conduct to the States to 
testify in American Courts.* 

As to Canada the association of the United States plots with it 
was close. There can be no doubt that invasion by forces of Ger- 
man reservists and others was discussed and the evidence of Von 
der Goltz showed that, finally, it was vetoed, for the time, by Von 
Bernstorff himself because of the large force of Canadian troops 
in the country. As to this it was frequently stated in the press 
that large quantities of arms and ammunition were being purchased 
for the German Government and stored especially in New York 
and it was charged that the Bridgeport Projectile Co. was a 
purely German concern for the making of munitions. The first 
investigation of the year was at Detroit in January and evidence 
was adduced to show an attempted organization of strikes in local 
Munition factories and a payment of $1,000 by Von Papen to A. 
Kaltschmidt in connection with certain acts of incendiarism on 
the Canadian side. At the trial of Charles Respa in Sandwich, 
Ont, during March for taking part in these plots, his confession, 
which had been made when first arrested, was accepted as evidence 
and it declared that Kaltschmidt had agreed to pay Respa $200, 
in return for which the latter was to blow up the Windsor armouries 
and the Peabody factory in Walkerville; that other "jobs" had 
been talked of between the two, among them being the destruction 
of plants of the Tate Electric Co., also in Walkerville, and the Can- 
adian Bridge Works. The evidence of Lefler, a British subject 
who had previously been given a 14-year sentence in this connec- 
tion, was taken against Respa who, finally, was found guilty (Mar. 
7) and condemned to life imprisonment at Kingston. Kaltschmidt 
could not be extradited and was not interfered with by his own 

The trials in New York of certain men accused of trying to 
blow up the Welland Canal and to otherwise injure Canadian 
property and interests following upon the arrest of Paul Koenig 
and others in December, 1915 evoked many interesting side-lights 
on Germanism in the United States. New York dealers in January 
stated that every available rifle had been bought up in that city 
and it was afterwards found that most of them had gone to Mexico. 
On Mar. 30 Capt. Hans Tauscher was arrested on the charge that 

*NOTE. See 1915 volume of The Canadian Annual Review. 



he and five associates had ' ' on Aug. 15, 1914, set on foot a military 
enterprise to be carried on from the United States against the 
Dominion of Canada for the purpose of destroying or damaging 
the Welland Canal, and had also obtained a large quantity of 
dynamite and other explosives." It was stated that on Sept. 14 
of that year all the defendants, except Tauscher, left New York 
carrying the dynamite in suit cases and proceeded by rail to Niagara 
Falls. The information on which this charge was based came from 
Von der Goltz who was one of those concerned, and it was said to 
be the first of several plots directed to the same end. 

The Federal grand jury on Apr. 17 indicted Tauscher and three 
others together with Capt. F. Von Papen and Wolf Von Igel, late 
of the German Embassy, as having "begun, set on foot, provided 
and prepared the means for a certain military enterprise to be 
carried on from within the territory and jurisdiction of the United 
States against the territory and dominions of the King of Great 
Britain." Additional indictments named John J. Ryan of Buffalo 
as the intermediary in making Von Papen 's payments and John 
Devoy of the Gaelic- American, there, as having cognizance of the 
conspiracy. Meantime, another trial was going on for attempts to 
destroy shipping and witnesses testified (Apr. 26) that the Ger- 
man Government was willing to pay $500,000 each for the destruc- 
tion of ships loaded with War supplies; Robert Fay, a German 
Army lieutenant, testified that Von Papen disapproved the Canal 
plots. In the Tauscher trial, however, (June 27) a dossier found 
in Von Igel's office when arrested on Apr. 18 and which, with 
other documents, the German Ambassador made strenuous efforts 
to have returned to him showed that Capt. Von Papen had paid 
the bill for the dynamite and the fuses that were to be used in 
blowing up the locks of the Welland Canal. A concurrent case 
against Franz Von Rintelen and his National Labour Peace Coun- 
cil in their efforts to stir up labour troubles at munition plants 
and international difficulties in Mexico, was also affected by the 
Von Igel documents in which there were found various proofs of 
efforts to embroil the United States with Japan as well as Mexico. 
With the Von Igel papers was a German code book which gave the 
Secret Service much valuable information. At this time, also, 
the Department of Justice was stated to hold much other evidence 
of plottings which it did not make public. 

Meanwhile, Franz Bopp, German Consul- General at San Fran- 
cisco, had been under indictment (Feb. 10) by the Federal grand 
jury, together with Baron Von Schack, Vice-Consul, M. H. Hall, 
Consul-General for Turkey, J. A. Von Koolbergen, H. W. E. Kauff- 
man, C. C. Crowley, Baron Von Brincken and many other persons 
and firms. These German officials and business interests were pro- 
ceeded against under various complicated legal forms for offences 
involving United States munition plants and for other plot- 
tings but chiefly for those which aimed at the setting on foot of 
military expeditions against a friendly nation, in connection with 
plans to' blow up Canadian railway tunnels. The indictment of the 


Turkish Consul-General was for an alleged use of the steamer Sacra- 
mento to supply German ships of war in the South Pacific, which 
had resulted in the internment of that vessel by the Chilean Gov- 
ernment. They were committed for trial and proceedings dragged 
along until December. Eventually the trial was confined to Bopp 
and his supporters for a conspiracy to violate American neutrality.* 
Whatever the result of these and other trials not mentioned 
here, and of the curious mass of evidence adduced, there was a far 
greater accumulation of data in the hands of officials and Govern- 
ment Departments. It seems evident that much was discussed and 
the wildest schemes proposed but that the conspirators were well 
watched from Washington and, upon the whole, international inter- 
ests safe-guarded. Out of the enormous number of munition plants 
and workers in the United States the total destruction of property 
up to the close of 1916 was only $100,000,000 with 150 lives lost. 
Proof of incendiarism, also, was absent in many cases. In Can- 
ada, during 1916, there were only five explosions with about $180,- 
000 damage. The possibility of the American Club, Toronto, hav- 
ing been destroyed by German incendiarism on Feb. 16 was widely 
discussed ;. still more so was the burning of the Parliament Build- 
ings, Ottawa, on Feb. 3. There were still wider ramifications of 
some of these plots reaching to India through the San Francisco 
crowd and Hindu residents and plotters, while a huge organization 
was referred to by the British Attorney-General on Apr. 11 as 
having been constituted to evade the blockade of Germany. One 
of a Canadian nature was an attempt to boycott British, and espe- 
cially Canadian, Insurance companies by the issue of a circular to 
German organizations, signed C. A. Collman, in which the leading 
Canadian companies were named and German-Americans advised 
to (1) buy no British goods or patronize British companies of what- 
ever nature; (2) buy no British textiles, cloths, gloves, cutlery and 
use no English ales or Scotch liquors; (3) buy no Canadian whis- 
keys and deal with no Canadian concerns. Collateral to these 
organizations was the Industrial Workers of the World, or I.W.W. 
Bought in the United States with German money and striving to 
promote strikes and trouble; in Australia, fighting Conscription 
and enlistment ; in Canada trying to tie up the Cobalt and Fernie 
mines ; in South Africa helping the Rebellion and opposing Recruit- 
ing ; they were everywhere an influence for anarchy and yet help- 
ful to German autocracy! 

u. s Peace There were many things which made President 

Proposals; OOP- Wilson's action, at the close of 1916, seem reasonable 
many's Action and fair ; there were others which had exactly the 
AIMe8 ' PP s i te effect. His country wanted Peace, interests 
which had helped recently to re-elect him demanded 
action, German threats of unrestricted submarine warfare and with- 
drawal of pledges to the United States hastened it. As to this Mr. 
Gerard had come in haste to Washington and no doubt laid before 

*NOTE. Early in 1917 several convictions were found and sentences imposed. 


the President the situation at Berlin and the views and wishes of 
the German Government. Behind the President were powerful 
organizations pressing him forward along lines of intervention and 
pacificism and a public feeling throughout the West and on the 
Pacific Coast very different from the pro-Ally sentiment of the 
East. Jacob G. Schiff, the eminent financier, with his hand on the 
lever of many financial interests, a partner in Kuhn, Loeb & Co.,* 
leader of the Jewish people in the United States, a patron of the 
fine arts and a respected man of philanthropic and public spirit, 
was the centre of an influential group of pro-Germans and Pacif- 
ists. Though German-born Mr. Schiff would have stood for the 
United States as against Germany; he also stood for Germany as 
against any other outside country. 

Associated with him in the American Neutral Conference Com- 
mittee were a number of persons already mentioned in these pages 
with others such as James Speyer, the New York banker and close 
friend of Von Bernstorff, whose Firm originated in Frankfort ; B. 
W. Huebsch, the publisher of pro-German books lavishly adver- 
tised in The Fatherland and similar papers; Mrs. Henry Villard, 
owner of the New York Evening Post a Pacifist organ of great 
abilitywidow of the German- American financier who made a 
fortune out of the Northern Pacific. The object of this organiza- 
tion was stated in New York by its Chairman, Hamilton Holt, on 
Nov. 25: "A joint Conference of all the neutral nations would 
command respect and would undoubtedly receive a hearing. . . 
But we have no desire to insist on a Conference as the one and 
only method. We have, therefore, incorporated in the petition to 
our Government the idea of action by the United States alone 
should single mediation be deemed more feasible than mediation 
by a Conference of neutral nations. ' ' Dr. Starr Jordan emphasized 
the Pacifist claim that no special guilt attached to any nation: 
"To crush Germany is to crush Britain. And all nations con- 
cerned have been punished as never before in all history, while the 
real war-makers, a small minority in every country, have mostly 
gone scot free.'"' The largely signed Petition, finally presented to 
the President, urged the Administration: 

1. To invite the Belligerents to state the basis upon which they would be 
willing to begin peace negotiations. 

2. To mediate by constructive peace proposals which shall safeguard the 
just claims of the Belligerents and the common interests of all nations. 

The President, therefore, in trying to press peace negotiations 
had the backing of his own country including the active support of 
certain large and aggressive organizations, financial and political 
interests, and the passive sentiment of masses which lacked all 
feeling as to the issues involved. Against him were the strenuous 
opinions of many New York papers, publicists in general and the 
intellectual classes which yet did not go to the point of demand- 

*NOTE. Another partner in this noted House was Paul M. Warburg, the leading 

member of the Federal Reserve Board whose influence Avas supposed to have caused 

the warning to Banks as to taking Allied short-term loans. Two others in the Firm 
were said to be pro-Ally. 


ing war. Against him, also, were the utterances of belligerent 
Governments, the fact that the Allied nations believed Germany 
was on the down grade of its military strength and that a Peace 
at this juncture would be a temporary, patched-up arrangement 
preliminary to another struggle. The German Chancellor on Dec. 
9, 1915, had spoken of being ready for peace on the basis of the 
war map of Europe. In the spring of 1916 advances were made to 
President Wilson by Germany through Col. E. M. House, who had 
then returned from his confidential mission to Europe, but with- 
out success. The suggested terms, as unofficially stated in March, 
included no indemnities, return of German Colonies, Serbia and 
Albania to be divided between Austria, Bulgaria and Greece, 
evacuation and freedom of Belgium and the occupied part of 
France, Persia to go to Russia and Britain to be as she was! In 
his speech of May 27 following Mr. Wilson had declared that "the 
world is even now upon the verge of a great consummation." 

But there was no real appreciation of the attitude of the Allies 
or understanding of German objects. In the German Note, sub- 
mitted at Washington on May 4, Herr Von Jagow declared that 
the German Government, conscious of Germany's strength, has 
twice within the last few months announced before the world its 
readiness to make peace on a basis safeguarding Germany's vital 
interests, thus indicating that it is not Germany's fault if peace is 
still withheld from the nations of Europe." That basis was de- 
fined in an official interview by Chancellor Von Bethmann-Holl- 
weg (New York World, May 22) as one that "offers guarantees to 
Germany against further attack from a coalition of her enemies." 
Prof. Ernest Haeckel, at this time, issued a book further illustrat- 
ing the point, in which he declared that Germany would retain 
Belgium, acquire the Congo, give Egypt to the Turks, hand Cape 
Colony and Ceylon to Holland, destroy British sea supremacy and 
drive her out of Africa ! In another volume by Prince Von Billow 
(German Policies}, issued at this time, it was declared that "we 
must gain real security and guarantees, both as a recompense for 
the unheard of trials and sufferings we have endured and as a 
security for the future." 

On June 5 the Chancellor told the Reichstag that he had done 
all he could. "Further talk of peace initiated by us becomes futile 
and evil." Then came the partial Allied success at the Somme 
following the German failure at Verdun and by November peace 
rumors were filling the papers of the Teutonic capitals, while the 
German Chancellor was telling the Reichstag (Nov. 9) that: "I 
have never designated the annexation of Belgium as our intention 
when I spoke about the aims of the War. The first condition for 
the evaluation of international relations by way of arbitration and 
peaceful compromise of conflicting interests ought to be that no 
more aggressive coalitions be formed. Germany is at all times 
ready to enter a League of Peace which will restrain the disturber 
of peace." 

Meantime what of the Entente Allies? On Jan. 30, 1916, M. 


Sazonoff, Foreign Minister, told Petrograd journalists that "the 
vital interests of the Allies demand a struggle to the death"; six 
months later he told the Associated Press (June 23) that "peace 
talk now is doubly futile. Germany assuredly has not won the 
War. Hence, she is not in a position to say anything. We cannot 
say yet that we are the victors, so peace suggestions are unfriendly 
to us " ; while M. Trepoff, the new Prime Minister of Russia, de- 
clared to the Douma that "the whole world must know once more 
that whatever difficulties and whatever temporary checks are en- 
countered Russia and her valiant Allies will mobilize to the last 
man and will sacrifice all their patrimony. But the War will be 
carried on to a decisive end, until the German yoke and German 
violence have disappeared forever." 

Speaking for France at Nancy, on May 14, President Poincare 
was explicit : * ' We do not want our enemies to offer Peace to us ; we 
want them to ask it of us. We do not want to submit to their 
conditions ; f we want to impose ours on them. We do not want a 
peace which would leave Imperial Germany with the power to 
recommence the War and keep Europe eternally menaced. We do 
want peace which restores rights and provides serious guarantees 
of equilibrium and stability." At Rome on Dec. 6 Signer Boselli, 
Prime Minister, reiterated the Italian viewpoint: "It is only by 
victory that peace can be made durable. It is only thus that Italy 
will secure the mastery of all her territories and her seas, and only 
thus that the political conformation of Europe will rest on a solid 
basis, being founded not on treaties, but on the principle of nation- 
alities." It was Great Britain, however, that spoke most clearly 
and most frequently upon this point and a few selected extracts 
indicate the position taken by its leaders in 1916 : 

King's Speech to Parliament, Jan. 27: 

In this struggle, forced upon us by those who hold in light esteem the 
liberties and covenants which we regard as sacred, we shall not lay down our 
arms until we have vindicated the cause which carries with it the future of 

Lord Hosebery, Edinburgh, Jan. 30: 

You embody the nation's resolution that so long as there is an enemy in 
the field not a man or a woman will spare any exertion to secure a triumphant 
victory. My only fear is that when success begins weak minds may cry for a 
premature peace, which would mean a short peace and a worse war to follow. 

Mr. Premier Asquith, Commons, Feb. 23: 

What. I said Nov. 9, 1914, I repeat now: 'We shall never sheathe the 
sword, which we have not lightly drawn, until Belgium and I will add, 
Serbia recovers in full measure all and more than she has sacrificed; until 
France is adequately secured against the menace of aggression, until the rights 
of the small nations of Europe are placed upon an unassailable foundation, 
and until the military domination of Prussia is wholly and finally destroyed.' 

Sir Edward Grey, London Interview, May 15: 

What we and our Allies are fighting for is a free Europe. We want a 
Europe free, not only from the domination of one nationality by another, but 
from hectoring diplomacy and the peril of war, free from the constant rattling 
of the sword in the scabbard, from perpetual talk of shining armour and war- 


Lord Cromer, London Times, May 31 : 

President Wilson cannot too clearly understand that although the people 
of this country are desirous of bringing the War to a close they would alto- 
gether reject the idea of concluding peace save on terms wholly acceptable to 
themselves and their Allies; and he should realize that the meaningless and 
misleading phrase ' freedom of the seas,' is generally regarded here as a mere 
euphemism for the destruction of the naval supremacy of Great Britain. 

D. Lloyd George, London Interview, Sept. 29: 

The whole world including neutrals of the highest purposes and humani- 
tarians with the best of motives must know that there can be no outside inter- 
ference at this stage. Britain asked no intervention when she was unprepared 
to fight. She will tolerate none now that she is prepared until the Prussian 
military despotism is broken beyond repair. . . The inhumanity and piti- 
lessness of the fighting that must come before a lasting peace is possible is not 
comparable with the cruelty that would be involved in stopping the War while 
there remains the. possibility of civilization again being menaced from the 
same quarter. Peace now or at any time before the final and complete 
elimination of this menace is unthinkable. 

This was the situation and these the international points of view 
which met President Wilson when the German Government passed 
from hints, and confidential references and diplomatic advances to 
Neutrals, into a direct request for Peace negotiations transmitted 
on Dec. 12 to the United States, Spain, Switzerland and His Holi- 
ness the Pope. The despatch is given under the Section dealing 
with Germany. In a separate Note to the Vatican its statements 
were reiterated but with such significant additions as this: "Ger- 
many is ready to give Peace to the world." An official statement 
was issued by the Austrian Government, in addition to the despatch 
of identic Notes, in which the proposal was said to be "a new and 
decisive proof of our love of peace." The replies of the Entente 
Allies were given speedily and without formal preliminaries. Mr. 
Bonar Law in the British Commons on Dec. 13 declared that ' ' ade- 
quate reparation for the past and adequate security for the future 
are essential" ; on the 15th the Russian Douma passed unanimously 
a Resolution urging "a categorical refusal by the Allied Govern- 
ments to enter, under present conditions, into any peace negotia- 
tions whatever." M. Pokrowsky, Russian Foreign Minister, declared 
that "the innumerable sacrifices already made will be in vain if 
premature peace is concluded with an enemy whose forces have 
been shaken but not broken, and an enemy who is seeking a breath- 
ing space by making deceitful offers," while the President of the 
Douma (M. Rodzianko) stated that "we shall agree to negotiate 
only when the enemy is finally beaten ' ' ; Baron Sonnino, Foreign 
Minister, spoke for Italy on the 18th and declared that the pro- 
posals were not genuine and not conducive to any lasting peace ; 
M. Briand, for France, described the Note as an attempt to ' ' poison 
opinion," deceive neutrals and gain time. 

For Great Britain Mr. Lloyd George, the Prime Minister, spoke 
in a great address to Parliament on Dec. 19th. In it he declared 
there were no real proposals for peace before the world, that Ger- 
many showed no consciousness of any offence against mankind, 
and that the German Note gave no hint at restitution. His state- 
ment of British policy was then enunciated as "complete restitu- 
tion, full reparation and effectual guarantees against repetition." 


Following these utterances and enclosure of the German Note to 
the Powers, without comment, the President of the United States 
issued on Dec. 20 an appeal in which he was subsequently joined 
by Switzerland, Spain and the Dutch Government prefaced by the 
statement that it came from ''the representative of a Neutral 
nation whose interests have been most seriously affected by the 
War and whose concern for its early conclusion arises out of a 
manifest necessity to safeguard those interests," and of which the 
salient paragraphs follow : 

The President suggests that an early occasion be sought to call out from 
all the nations now at war such an avowal of their respective views, as to the 
terms upon which the War might be concluded and the arrangements which 
would be deemed satisfactory as a guarantee against its renewal or the kindling 
of any similar conflict in the future, as would make it possible frankly to 
compare them. He is indifferent as ,to the means taken to accomplish this. 
He would be happy himself to serve or even to take the initiative in its accom- 
plishment in any way that might prove acceptable, but he has no desire to 
determine the method or the instrumentality. One way will be as acceptable 
to him as another if only the great object he has in mind be attained. 

He takes the liberty of calling attention to the fact that the objects which 
the statesmen of the Belligerents on both sides have in mind in this War are 
virtually the same, as stated in general terms to their own people and to the 
world. Each side desires to make the rights and privileges of weak peoples 
and small States as secure against aggression or denial in the future as the 
rights and privileges of the great and powerful States now at war. Each 
wishes itself to be made secure in the future along with all other nations and 
peoples against the recurrence of wars like this and against aggression or 
selfish interference of any kind. Each would be jealous of the formation of 
any more rival leagues to preserve an uncertain balance of power amidst 
multiplying suspicions, but each is ready to consider the formation of a 
League of Nations to ensure peace and justice throughout the world. Before 
that final step can be taken, however, each deems it necessary first to settle the 
issues of the present war upon terms which will certainly safeguard the inde- 
pendence, the territorial integrity, and the political and commercial freedom 
of the nations involved. 

In the measures to be taken to secure the future peace of the world the 
people and the Government of the United States are as vitally and as directly 
interested as the Governments now at war. Their interest, moreover, in the 
means to be adopted to relieve the smaller and weaker peoples of the world 
of the peril of wrong and violence is as quick and ardent as that of any other 
people or Government. They stand ready and even eager to co-operate in the 
accomplishment of these, ends when the War is over with every influence and 
resource at their command. 

Following the issue of the President 's despatch an extraordinary 
incident occurred. Mr. Lansing, Secretary of State, on Dec. 21 
authorized the statement under his name that the reasons for send- 
ing this Note were as follows: "It is riot our material interest we 
had in mind when the Note was sent, but more and more our own 
rights are becoming involved by the Belligerents on both sides, so 
that the situation is becoming increasingly critical. I mean by that 
that we are drawing nearer the verge of war ourselves and there- 
fore we are entitled to know exactly what the Belligerents seek in 
order that we may regulate our conduct in the future. . . . 
The sending of this Note will indicate the possibility of our being 
forced into the War. That possibility ought to serve as a restrain- 
ing and sobering force safe-guarding American rights. It may 
also serve to force an earlier conclusion of the War. Neither the 


President nor myself regard this Note as a peace note ; it is merely 
an effort to get the Belligerents to define the end for which they 
are fighting." The press and public took this to mean a serious 
situation and, later in the day, Mr. Lansing issued a second state- 
ment : ' ' My intention was to suggest the very direct and necessary 
interest which this country, as one of the neutral nations, has in 
the possible terms which the Belligerents may have in mind, and I 
did not intend to intimate that the Government was considering 
any change in its policy of neutrality which it has consistently 
pursued in the face of constantly increasing difficulties. ' ' Meantime 
there had been almost a panic on Wall Street and the stock mar- 
ket for a few hours was swept off its feet with tumbling prices and 
breaks in many war stocks. 

Germany and her Allies at once responded (Dec. 26) by urg- 
ing an immediate exchange of views and a "meeting of Delegates 
of the Belligerent States at a neutral place," but they evaded the 
request for a statement of terms. Much opinion in Britain keenly 
resented the American Note for its untimeliness and indirect aid to 
Germany, but, above all, for its refusal to recognize any moral issues 
or differences between the warring nations. The press was prac- 
tically unanimous in rejecting the suggestions and repudiating the 
idea that Britain stood upon the same level as Germany in the 
War. Empire opinion was along the same lines. W. F. Massey, 
the New Zealand Premier, declared on Dec. 24 that "it is our duty 
to go on until the power of Germany is broken and her Armies 
driven back .over their own border. That will be the time for 
peace." J. H. Cook, Opposition Leader in Australia, said on 
Dec. 14 that "we are fighting primarily to crush the military 
machine, not to suspend it for future use." W. M. Hughes, 
Premier of the Commonwealth, declared that "no peace will be 
satisfactory, or even possible, which does not provide for the 
evacuation of Allied territory and an indemnity sufficient to repatri- 
ate the unfortunate inhabitants of Belgium, Serbia, and Poland, 
rebuild the ruined cities, and re-establish the destroyed indus- 
tries as well as provide effective guarantees against the recurrence 
of such a crime against civilization." Sir R. L. Borden (Dec. 22), 
for Canada, declared that "we cannot yield our purpose in this 
war unless we are prepared to let military aggressiveness go un- 
checked. I say all the sacrifices we and the Allied nations have 
made would have been in vain and would be worse than in vain 
if we did not pursue the struggle until its purpose is crowned 
with absolute and complete triumph." W. H. Hearst, Premier of 
Ontario, (Dec. 14) went further: "I have no faith whatever in 
Germany's proposed peace terms. The terms of peace will have to 
be dictated by Great Britain and her Allies and we should double 
our efforts in every direction to assist in bringing about a final 
triumph and a lasting peace." On Dec. 30 the Allies' reply to 
the United States, and indirectly to Germany, was issued in a col- 
lective Note from the Powers specified of which the essential para- 
graphs follow : 


The Allied Governments of Belgium, France, Great Britain, Italy, Japan, 
Montenegro, Portugal, Eoumania, Eussia and Serbia, united for the defence 
of the liberty of their peoples, and faithful to engagements taken not to lay 
down their arms separately, have resolved to reply collectively to the pre- 
tended propositions of peace which were addressed to them on behalf of the 
enemy Governments through the intermediary of the United Stages, Spain, 
Switzerland and Holland. Before making any reply the Allied Powers desire 
particularly to protest against the two essential assertions of the Note of the 
enemy Powers that pretend to throw upon the Allies responsibility for the 
War and proclaim the victory of the Central Powers. 

The Allied Governments cannot admit an affirmation doubly inexact and 
which suffices to render sterile all tentative negotiation. The Allied nations 
have sustained for thirty months a war which they did .everything to avoid. 
They have shown by their acts their attachment to peace. That attachment 
is as strong to-day as it was in 1914. But it is not upon the word of Ger- 
many, after the violation of its engagements, that the peace broken by her 
may be based. A mere suggestion, without a statement of terms, that negotia- 
tions should be opened is not an offer of peace. The putting forward by the 
Imperial Government of a sham proposal lacking all substance and provision 
would appear to be less an offer of peace than a war manoeuvre. It is founded 
on calculated misinterpretation of the character of the struggle in the past, 
the present and the future. 

As for the past the German Note takes no account of the facts, dates and 
figures which establish that the War was desired, provoked and declared by 
Germany and Austria-Hungary. At The Hague Conference it was a German 
delegate who refused all proposals for disarmament. In July, 1914, it was 
Austria-Hungary who, after having addressed to Serbia an unprecedented 
ultimatum, declared war upon her in spite of the satisfaction which had at 
once been accorded. The Central Empires then rejected all attempts made by 
the Entente to bring about a pacific solution of a purely local conflict. Great 
Britain suggested a conference. France proposed an International Commis- 
sion; the Emperor of Eussia asked the German Emperor to go to arbitration, 
and Eussia and Austria-Hungary came to an understanding on the eve of the 
conflict. But to all these efforts Germany gave neither answer nor effect. 

Belgium was invaded by an Empire which had guaranteed her national- 
ity and which had the assurance to proclaim that treaties were 'scraps of 
paper, and that 'necessity knows no law.' At the present moment these sham 
offers on the part of Germany rest on the 'war map' of Europe, which pre- 
sents nothing more than a superficial and passing phase of the situation and 
not the real strength of the Belligerents. A peace concluded upon these terms 
would be only to the advantage of the aggressors, who, after imagining that 
they would reach their goal in two months, discovered after two years that 
they could never attain it. 

As for the future, the disasters caused by the German declaration of war 
and the innumerable outrages committed by Germany and her Allies against 
both belligerents and neutrals, demand penalties, reparation and guarantees. 
Germany avoids mention of any of these. In reality these overtures made by 
the Central Powers are nothing more than a calculated attempt to influence 
the future course of war, and to end it by imposing a German peace. The 
object of these overtures is to create dissension in public opinion in the Allied 
countries. But that public opinion has, in spite of all the sacrifices, already 
given its answer with admirable firmness, and has denounced the empty pre- 
tence of the declaration of the enemy Powers. 

Fully conscious of the gravity of this moment, but equally conscious of 
its requirements, the Allied Governments, closely united to one another, and 
in perfect sympathy with their peoples, refuse to consider a proposal which is 
empty and insincere. Once again the Allies declare that no peace is possible 
so long as they have not secured reparation for violated rights and liberties, 
the recognition of the principle of nationalities and of the free existence of 
small States; so long as they have not brought about a settlement calculated 
to end once and for all forces which have constituted a perpetual menace to 
the nations, and to afford the only effective guarantee for the future security 
of the world. 




Feb. 15. The Hon, Elihu Eoot, ex-U.S. Secretary of State and one of the 
ablest of the Eepublican leaders, made a speech at New York in which he 
dealt with the Belgian question as follows : ' ' The law protecting Belgium which 
was violated was our law, and the law of every other civilized country. For 
generations we had been urging on and helping in its development and estab- 
lishment. Moreover, that law was written into a solemn and formal Conven- 
tion, signed and ratified by Germany and Belgium and France and the United 
States, in which those other countries agreed with us that the law should be 
observed. When Belgium was invaded, that agreement was binding not only 
morally but strictly and technically." He summed up his criticism of Presi- 
dent Wilson in these terms: "A study of the Administration's policy toward 
Europe since July, 1914, reveals three fundamental errors (1) The lack of 
timely provision for backing up American diplomacy by actual or assured 
military and naval force; (2) the forfeiture of the world's respect for our 
assertion of rights by pursuing the policy of making threats and failing to 
make them good; (3) a loss to the moral forces of the civilized world through 
failure to truly interpret the spirit of the American democracy in its attitude 
toward the terrible events which accompanied the early stages of the War." 

Mar. 23. In the British Government's reply to Mr. Lansing's representa- 
tions as to dis-armament of merchant ships Sir Cecil Spring-Eice was directed 
to point out (1) that "it seems obvious that any request that a Belligerent 
forego lawful means of protection from the enemy's unlawful attacks places 
upon him, whoever he may be, who formulates the proposition, the duty and 
responsibility of compelling that enemy to desist from such attacks, for the 
said enemy would otherwise be encouraged rather to persist in that course" 
and (2) that "Great Britain is unable to agree that upon a non-guaranteed 
German promise, human life may be surrendered defenceless to the mercy of 
the enemy who, in circumstances of this kind as in many others, has shown 
himself to be both faithless and lawless. ' ' 

April 14. A final settlement was reached in the Chicago meat-packers' 
cases at this date when a cheque was handed in London to Chandler P. Ander- 
son, representing the Armour, Swift, Hammond and Morris Companies, and 
B. Lloyd Griscomb, representing the Schwarzchild & Sulzberger Co., for the 
amount agreed upon. In receiving Messrs. Anderson and Griscomb, Sir 
Edward Grey said: "I hope the people of America will accept the friendly 
settlement of the Packers' cases as a further evidence of the good-will of 
Great Britain towards the United States and of the- desire of the British 
Government to maintain its spirit of justice and fairness despite all the diffi- 
culties and new problems arising from the condition of war." Lord Eobert 
Cecil stated that "guarantees were given that there would be no future trad- 
ing with the enemy." 

May 26. Lord Eobert Cecil, Minister of Blockade, stated that Great 
Britain would be obliged to deny the request of the United States that 
cargoes of dye-stuffs from Germany be permitted to go through as a relief to 
the industries of America. ' ' Our answer to America 's request must be No, ' ' 
he said. ' ' When we agreed over a year ago to allow two cargoes of dye-stuffs 
to pass through from Germany to America it was stipulated by America and 
Germany that these cargoes were to go in exchange for a cargo of cotton." 
The agreement was not kept by Germany which was now trying to get $50,- 
000,000 worth of dye-stuffs through. 

July 26. The Black-list protest of the United States Government of this 
date was a vigorous one despatched by Frank L. Polk, Acting Secretary of 
State, to Mr. Page, United States Ambassador in London. "The announce- 
ment that his Britannic Majesty's Government has placed the names of cer- 
tain persons, firms, and corporations in the United States upon a prescriptive 
'black-list' and has forbidden all financial or commercial dealings between 
them and citizens of Great Britain has been received with the most painful 
surprise by the people and Government of the United States, and seems to 
the Government of the United States to embody a policy of arbitrary inter- 


ference with neutral trade against which it is its duty to protest in the most 
decided terms. . . . Whatever may be said with regard to the legality, ill 
the view of International obligation, of the Act of Parliament upon which the 
practice of the Black-list, as now employed by His Majesty's Government is 
understood to be based, the Government of the United States is constrained 
to regard that practice as inconsistent with that true justice, sincere amity, and 
impartial fairness which should characterize the dealings of friendly Govern- 
ments with one another." 

July 31. In London it was announced that Viscount Mersey, Arbitrator 
in the case of the cargo of the American steamship Wilhelmina (destined 
ultimately for Hamburg) seized and placed in the Prize Court on Feb. 11, 
1915, had awarded 78,400 to the W. L. Green Co., of St. Louis, owners of the 
cargo. They had asked for 86,161, while the British Government had offered 
33,142 as compensation. 

Aug. 2nd. In connection with the Examination of Mails' question Great 
Britain announced officially that a large number of consignments of securities 
passing between Holland and the United States in the mails would be released 
from the Prize Courts and forwarded in view of representations as to damage 
done genuine neutral interests. "The Allies' Governments maintain their 
right to intercept such securities in the future, but they have concluded arrange- 
ments whereby neutral business will be safeguarded from inconvenience, and 
neutral transactions may be made with certainty of freedom from seizure." 

Oct. 9. In connection with the U 53 visit and assaults upon neutral 
shipping off the American Coasts it was pointed out that Great Britain, at* 
an early stage in the War, had yielded to American remonstrances against 
the maintenance of belligerent shipping in United States waters. "Now," 
as the New York Herald of this date put it, ' ' in the case of submarine vessels 
the application of the principles of the law of nations is affected by special 
and novel conditions: (1) by the fact that these vessels can navigate and 
remain at sea submerged and can thus escape all control and observation; (2) 
by the fact that it is impossible to identify them and establish their national 
character, whether neutral or belligerent, combatant or non-combatant, and to 
remove the capacity for harm inherent in the nature of such vessels. It may 
further be said that any place which provides a submarine warship, far from 
its base, with an opportunity for rest and replenishment of its supplies thereby 
furnishes such addition to its powers that the place becomes in fact, through 
the advantages which it gives, a base of naval operations." 

Oct. 10. Lord Grey of Falloden replied to the United States Black-list 
protest at length. "His Majesty's Government neither purport nor claim to 
impose any disabilities or penalties upon neutral individuals or upon neutral 
commerce. The measure is simply one which enjoins those who owe allegiance 
to Great Britain to cease having trade relations with persons who are found to 
be assisting or rendering service to the enemy. I can scarcely believe that 
the United States Government intend to challenge the right of Great Britain 
as a sovereign State to pass legislation prohibiting all those who owe her 
allegiance from trading with any specified persons when such prohibition is 
found necessary in the public interest. . . . The steps which His Majesty's 
Government are taking under the above-mentioned Act are not confined to the 
United States of America; the policy is being pursued in all neutral countries. 
Nay, more. With the full consent of the Allied Governments, firms, even in 
Allied countries, are being placed on the statutory list if they are firms with 
whom it is necessary to prevent British subjects from trading. . . . One 
other matter should be mentioned, namely, the exclusion from ships using 
British coal of goods belonging to firms on the statutory list. This is enforced 
by rendering it a condition of the supply of bunker coal. What legal objection 
can be taken to this course? It is British coal; why should it be used to 
transport the goods of those who are actively assisting our enemies?" 

Oct. 13. It was announced from London that in consequence of the pub- 
lication in America of false news respecting England, the International News 
Service, controlled by W. E. Hearst, was debarred from further facilities of 
obtaining information. To this Mr. Hearst made a characteristic reply, and 


the Press Bureau promptly retorted by giving instances of the falsification of 
British news by the Service and his papers. Various "padded" telegrams, 
London despatches written in New York, false statements of all kinds, were 
quoted and described and W. Orson Tewson, the London correspondent of 
these journals, resigned. It may be added that Mr. Hearst controlled The 
Examiner of San Francisco, Los Angeles and Chicago, The American of New 
York, Chicago and Boston, the Atlanta Georgian, the New York Evening 
Journal, the New York Deutsches Journal and the following magazines: 
Hearst's, Cosmopolitan, Good Housekeeping, Motor Boating, Motor, Harper's 

Oct. 16. Viscount Grey in the British House of Lords pointed out that 
the United States had requested Great Britain very emphatically not to patrol 
off its coast, and said that instructions were sent to the British ships there to 
avoid causing any unnecessary irritation, and to comply, as far as possible, 
with the American request. ' ' With regard to the U 53" the Foreign Secre- 
tary continued, 'we do not know what steps were taken by the United States 
for patrolling its waters or in regard to her coming into port and securing 
information from the newspapers. We do not know whether it is true that 
American warships got out of the submarine's way. That is a matter for 
the American Government only and we assume that Government is making 
full inquiries.' ' 

Oct. 16. Earl Grey in the Lords, speaking upon the "statement in the 
press of Oct. 10 that the Commander of the German U 53 asked the com- 
manders of the American destroyers Denham and MacDougall to clear out of 
the way so that he might have room to blow up the ships he was attacking, 
said: 'To me it is so incredible that commanders of American war vessels 
should have acted in the way reported that I cannot and I will not believe it 
until all room for doubt has been removed. Such action on the part of the 
American war vessels would involve a new and startling departure from the 
old tradition of mutual service between , America and Britain in the cause of 
humanity.' ' 

Dec. 6. In The Fatherland, New York, appeared a letter from Geo. 
Humphrey, author of Why Germany Will Win the War, stating that the United 
States Leather Co. had just received a contract from Germany for delivery, 
after the War, of $100,000,000 worth of leather and that the stock was being 
collected and stored; that German-America was largely in control of South 
American leather interests, of the new United States Copper Combine, of the 
Steel industry and even of some of the munition plants; that German capital 
in the United States had made a profit of $500,000,000 since the beginning of 
the War; that the "North German Lloyd Co. has recently purchased huge 
water-front sites and acreage at New London, Conn., and near Baltimore." 

Dec. 31. An organization which had much influence in promoting sup- 
port for the Allies and developing a sentiment in favour of War with Ger- 
many, was the American Eights League of which Geo. Haven Putnam, the 
New York Author, publisher and publicist was President, with a Boston Com- 
mittee presided over by Wm. Roscoe Thayer and one at Indianapolis by Booth 
Tarkington. The Vice-Presidents included 130 eminent Americans men of 
light and leading and its principles were effective intervention in the War. 

Dec. 31. A document was issued on this date, addressed to the United 
States people and signed by 50 Prelates and Clergy and leading laymen of 
different denominations throughout the country declaring that "the Christians 
of America should consider the right or wrong of the Occupation of Belgium, 
Poland and Serbia, the Armenian massacres, the destruction of merchant 
ships, the hardships of Jews and Syrians, the ' ' attempt to array Moslem 
against Christian in holy war, ' ' and to be reminded that ' ' peace is the triumph 
of righteousness and not the mere sheathing of the sword. ' ; It further declared 
that the signatories ' ' view with some concern the organized and deliberate 
effort now being made so to stampede Christian sentiment as to create a 
public opinion blindly favourable to stopping hostilities without adequate 
consideration of the issues which the War involves." Amongst those who 
signed were Lyman Abbott, 5 Episcopal Bishops, "Billy" Sunday, Principal 
Hibben of Princeton and Winston Churchill, the Author. 


The Duke of There was no doubt as to the quiet, effective, use- 

connaught's fulness of the Duke of Connaught's administration of 
Last Year: A Canadian affairs during his tenure of over five years. 
New Governor- j^ had been of much importance to have the counsel 
Appointed an( ^ ex P er i ence f His Boyal Highness in the organ- 

ization of Canadian forces during these years of war 
and they might, perhaps, have been utilized to an even greater 
extent. As The Times Canadian correspondent (Sept. 22) very well 
put it: ''There was a feeble undercurrent of criticism when the 
Duke was appointed. There were a few anxious democrats who 
foresaw a rigid and arbitrary etiquette. There was talk of the 
trappings of a Court, whatever these may be, of offensive ceremon- 
ialism, and an era of social extravagance at the capital. But none of 
these forebodings were realized. There never was greater simplicity 
at Government House, more gracious hospitality, less social display. 
In peace, the Court was an example of quiet living and unobtrusive 
service ; in war, of inspiration to duty and sacrifice. ' ' 

The duties and functions of the Duke during 1916, as in the 
previous war-period, were largely associated with military affairs 
and patriotic objects though matters of purely civil importance, 
such as Town Planning, were not disregarded. At Montreal on 
Jan. 21 His Royal Highness once more inaugurated a Patriotic 
Fund campaign by addressing a Canadian Club luncheon with a 
record attendance and such guests as Archbishop Bruchesi and 
Lord Shaughnessy. He stated that the Fund was then looking 
after the families of 30,000 soldiers and spending $540,000 a month : 
"We have set an example by the generous manner in which this 
Fund has been supported from the Atlantic to the Pacific. We 
have set an example of patriotic and generous feeling which, I am 
sure, has done mucli to raise the character of Canadians. We have 
inculcated into all the idea that we ought to help others and that 
the little we could give, be it big or be it small, is worth the object 
of showing that we wished to be with those" that have done so much 
to maintain the honour, the integrity and the freedom of their 
country." Following the destruction of the Parliament Buildings 
at Ottawa the Duke addressed Sir Robert Borden on Feb. 5 as fol- 
lows : ' ' I desire to express through you my warm sympathy to both 
Houses of Parliament on the terrible calamity of last night, by 
which these historic buildings were almost destroyed by fire. I 
know how universal will be the regret felt not only in the Dominion 
itself, but throughout the Empire. I deplore the loss of life which 
has, I fear, occurred, and desire to express my deep sympathy with 
the families of those who have so unfortunately perished." 

An incident of this time was the Governor-General's Dinner to 
W. M. Hughes, Premier of Australia, (Feb. 21) at which he paid 



high tribute to Mr. Hughes and to the Australian Army and Navy, 
and added: "One of the most important results as I foresee it 
when this lamentable war is ended, is that those who only knew 
each other by sentiment will have been thrown together as com- 
rades in arms ; and I feel that this is bound to cement a close feel- 
ing between the different portions of the Empire, and a greater 
appreciation and knowledge of each other." In his reply Mr. 
Hughes declared that the men they had sent were "the very essence 
of Australian manhood. They are clad from top to toe in Aus- 
tralian materials wool from Australian sheep made into cloth; 
shod with Australian leather ; while even their buttons and accoutre- 
ments are made in Australia. ' ' On June 24 it was announced that 
the Duke would leave Canada in October, and that Prince Alexan- 
der of Teck, whose appointment had been approved before the 
War broke out but who had asked to be allowed to go on active 
service preferred to remain at the Front A little later it was 
stated that the Duke of Devonshire had been appointed, and that 
the retiring Governor- General would make a farewell tour through 
part, at least, of the Dominion. Tributes to His Royal Highness 
came from every direction. Sir George Foster, who was in Eng- 
land, stated (Daily News) that "his counsel has been counsel of 
wisdom, and his great experience, both in military and adminis- 
trative work, has enabled him to be of the greatest possible use to 
Canada in the stress and strain of the period through which it is 
passing." The Ottawa correspondent of that most Radical of 
journals the Toronto Telegram declared that "he combined all 
the qualities of the ideal Governor-General. Pity 'tis he is not to 
be with us longer." 

The Duke and Duchess, with Princess Patricia, were in Kenora 
on June 28 and at Winnipeg on the 29th. The streets of the Mani- 
toba capital were gaily decorated, the garrison troops were reviewed 
by His Royal Highness, the Military Convalescent Home, estab- 
lished by R. J. MacKenzie, was opened, the Boy Scouts inspected. 
Camp Hughes was visited on June 30 and the Duke, in whom the 
soldiers always saw and felt the Field Marshal, the experienced 
military leader, issued an Order stating that he was "particularly 
impressed with the splendid physique of the men and their steadi- 
ness on parade, and, considering the short time since they joined 
their units, the manner in which they executed the parade move- 
ments and the march past was most creditable. ' ' , At Regina on the 
1st he was cordially welcomed and here as elsewhere Princess Patri- 
cia took special interest in any veterans of her famous Regiment 
who appeared The Mounted Police were inspected, the local troops 
and Boy Scouts reviewed, and St. Chad's Military Convalescent 
Home visited. Moose Jaw was briefly visited and two weeks spent 
at Banff in the heart of the Rockies; on July 17 the new Selkirk 
Tunnel on the C.P.R. line was formally christened by His Royal 
Highness, and on the following day the Military Camp at Vernon, 
B.C., inspected. 

Vancouver was reached on the 19th when the Firemen were 
inspected and an Honour Roll of 50 men from their ranks 'serving 


in the War was unveiled by the Duke, with a succeeding review of 
Boy Scouts and Girl Guides; the Red Cross w r ork was inspected, 
the Returned Soldiers' Club visited and, on July 20, Victoria was 
reached. Here the local V. A. D. Hospital was seen, Boy Scouts 
and Girl Guides reviewed and a Red Cross Fete attended; on suc- 
ceeding days the Overseas troops at Sidney were reviewed, the 
Red Cross quarters visited with the headquarters of the I.O.D.E., 
and the Military Hospital at Esquimalt ; on July 27 farewells were 
said to the Pacific Coast and on the way back to Ottawa brief stops, 
only, were made at Kamloops, Revelstoke and Calgary, where the 
local troops were reviewed. Halifax was visited by His Royal 
Highness and Staff on Aug. 23 and its military and naval defences 
inspected, with various local functions interjected and visits made 
to the local Internment Camp. The Duke and Princess Patricia 
were at Kentville, N.S., on the 26th and the Governor-General 
reviewed the Nova Scotia Highland Brigade at Aldershot Camp. 
Miscellaneous public duties of the year were as follows: 

Jan. 5 Inspection, 87th Battalion St. Johns, P.Q. 

5 Inspection, 73rd Highlanders Montreal 

5 Visit to Grey Nunnery Convalescent Home Montreal 

16 Review of 9,000 Troops Toronto 

17 Visit to Central Convalescent Home and Secours Nationale. Toronto 

17 Attendance at Red Cross Meeting Toronto 

20 Presided at Opening of City Planning Conference Toronto 

Feb. 17 Inspected Training of Troops at Exhibition Camp Toronto 

Mar. 10 Attended Annual Meeting of Boy Scouts' Association Ottawa 

27 Reviewed Overseas Troops in Champ de Mars Montreal 

28 Addressed Y.M.C.A. Workers Montreal 

Apr. 30 Reviewed 18,000 Soldiers Toronto 

" 29 Reviewed 4,000 Overseas Troops Hamilton 

May 18 Reviewed Calgary and Winnipeg Battalions Montreal 

June 19 Reviewed 13,000 Overseas Troops Niagara 

" 27 Inspected and Reviewed 4 Artillery Brigades Petawawa 

Aug. 16 Reviewed 16,000 Overseas Troops Valcartier 

" 24 Inspected Military Forts and Establishments Halifax 

Sept. 7 Inspected Aviation School Long Branch 

The corner-stone of the new Parliament Buildings at Ottawa 
was laid by the Duke on Sept. 1 as his brother, the late King Ed- 
ward VII, had done 56 years before with the structure which had 
been destroyed. A Toronto farewell visit by the Royal party fol- 
lowed on Sept. 5-8 and included a visit to the Exhibition and a 
Military Tattoo by 30 Overseas bands, inspection of the Military 
Base Hospital and similar institutions, a review of 1,700 Boy Scouts, 
with Receptions at the City Hall and Government House. At Camp 
Borden on Sept. 4 the Duke spent a day with, and amongst, 25,000 
troops but held no ceremonious review. To the officers he addressed 
a few words of farewell and some specific advice: "At no time in 
our history certainly at no time since this War began has the 
matter of discipline been of more importance than it is to-day. It 
is to discipline we owe everything. Without it we should not be 
able to make the steady progress we are making against the highly- 
organized, highly-trained, intelligent and disciplined Teuton Army. 
In Canada everybody is brought up with democratic ideas, and 
everyone thinks he may do much as he pleases. That will do in 
civil life, but it means chaos in military matters. I have noticed 
this year a great improvement in all ranks of the Canadian forces, 
and if there has been any falling short in the past I am sure it was 
not because of want of desire to do what was right. It was from 



want of knowledge and want of practice. ' ' Replying to an Address 
presented by Mayor T. L. Church (Sept. 6) in Toronto His Royal 
Highness declared that it had been a labour of love to do what he 
could to promote the interests of the great Dominion and the Em- 
pire. "The Duchess and Princess Patricia have cheerfully shared 
my duties and, like myself, are convinced there is a great and glor- 
ious future for the Dominion. ' ' 

To Montreal good-bye was said on Sept. 27-8 when a portrait 
of the Duke, painted by Miss Gertrude des Cleves, and presented 
to the Montreal Art Galleries by the local I.O.D.E., was unveiled 
by Princess Patricia after an address from Mrs. H. B. Walker, fol- 
lowed by one from Sir Vincent Meredith in its formal acceptance. 
The Duke and Duchess visited the Grey Nuns Convalescent Home, 
an inspection of troops was made, the Exhibition of Enemy Supplies 
visited. Meanwhile, Sept. 20, a farewell Message had been issued 
by the Duke, as Chief Scout, to the Boy Scouts of Canada. As 
President of the Association in England he had, from the first, 
taken great interest in the Canadian movement for which greater 
public support was now urged: "There is no slackening of interest 
amongst the boys, but owing to the departure of so many scout- 
masters to the Front, there has been a serious depletion of qualified 
officers throughout the Dominion. ... In bidding farewell to 
the Boy Scouts of Canada I cannot but impress upon them their 
watchword 'Be Prepared' for the future as you have been for the 
present and past." 

To the Canadian Club at Ottawa on Oct. 7 His Royal Highness 
delivered a farewell address which contained some frank state- 
ments. The occasion was graced by almost every member of the 
Cabinet and by various other leaders in Canadian life and thought. 
After references to his official position and caution in speech, to 
the War and Canadian sacrifices in it, the Duke spoke of the future : 
' ' Canada, after the War, will have many difficult questions to face. 
Possibly the most important is as to what class of immigrants you 
are going to have? I venture to think that it will be wise for 
Canada to insist on having immigrants of British stock. You have 
reason to know that you can depend on English stock. They have 
proved their splendid valour on many a battlefield. At present 
many in Canada are of alien stock. Future immigrants had better 
be from the Old Country, whence they would bring the best tradi- 
tions and be loyal to Sovereign and Empire." The War had 
brought out the best feelings of the people. "Possibly before that 
Canada was too prosperous ; perhaps we thought too much of our- 
selves;" but duty now was realized and, he hoped, was placed 
before everything else. 

Meanwhile the Duchess and her daughter had carried out their 
role of quiet, sympathetic work for public objects and war interests. 
The personal graces of the Princess Patricia had early won her a 
distinct place in Canadian sentiment and the reproduction of her 
miniature, which was sold for Red Cross purposes during 1916, 
had the widest kind of popularity. Though she took little direct 
part in ceremonial duties, except an always expressed interest in 


men of the P.P. C.L.I, who might be present at reviews, etc., there 
is no doubt that her presence really added greatly to the interest 
of Royal functions. The Duchess showed tact in declining the 
special farewell gift from the women of Canada which previously 
had been accorded Ladies Grey, Minto and Aberdeen. In a letter 
addressed by the Governor-General to Sir Robert Borden (June 
27) it was stated that "Her Royal Highness deeply appreciates 
the wish expressed, but she feels that under the present circum- 
stances of the War, with the heavy demand for subscriptions for 
patriotic and philanthropic objects, she would prefer there being 
no presentation." On Sept. 1.2, following, Lady Borden tele- 
graphed the wives of the Lieut.-Governors of the different Pro- 
vinces, referring to this proposed gift and stating that "the women 
of Canada had again brought the matter to the attention of Her 
Royal Highness and she graciously consented to allow us to sup- 
plement her 'Prisoners of War Fund.' As our time for appeal is 
limited would you kindly place it as early as possible before the 
women of your Province as worthy of their sympathy and co-opera- 
tion." This was done and the sum of $55,000 collected for the 
Fund. The Duchess had been for some time President of the Can- 
adian Red Cross and she had taken special interest in hospitals, the 
work of convents in Quebec, the pecuniary welfare of the Vic- 
torian Order of Nurses, the Cliveden Hospital in England which 
was called after herself and appeals for the sailors of the Atlantic 
Fleet. She had taken a personal interest in the Irish-Canadian 
Rangers of Montreal, to which her name was given. 

The only Royal Governor-General of Canada up to this time, 
with his family and staff, left Ottawa on Oct. 11 and sailed from 
Halifax a little later. Sir Robert Borden addressed a farewell 
letter to His Royal Highness before leaving the capital, which 
described the "earnest and effective co-operation" between the 
Government and the Duke in all things affecting the welfare of 
Canada: "Particularly is this true of all matters relating to the 
War, in which we have enjoyed the inestimable advantage of Your 
Royal Highness' ripe experience and wide knowledge of military 
affairs." To this the Duke briefly expressed regret at severing his 
official connection with the Dominion but added: "I shall, at all 
times, continue to take the greatest interest in all that affects the 
welfare and happiness of all sections of the Canadian people. . . 
In bidding farewell, I pray that God may ever bless Canada and 
its people." The Duchess received a similar tribute from Lady 
Borden on behalf of the Women of Canada: "By your untiring 
energy and earnestness ; by wise advice and counsel ; by your ideals 
of duty and of service ; Your Royal Highness has proved yourself 
an inspiration to the womanhood of Canada. ' ' A final incident was 
the conferrment of certain personal honours by the King, on the 
recommendation of His Royal Highness, as follows: 

Baronet Henry Vincent Meredith President, Bank of Montreal 

K.C.M.G. Col. A. P. Sherwood, C.M.G Chief Commissioner of Dominion Police 

C.M.G. Lieut.-Col. E. A. Stanton Military Secretary 

C.V.O. Lord Richard Neville, C.M.G Controller of the Household 

C.V.O. Arthur F. Sladen, C.M.G Private Secretary 

M.V.O. James F. Crowdy Chief Clerk, Governor-General's Office 


There were no discordant notes in the press utterances as to the 
Duke's regime; only one important repetition occurred of the fears 
expressed at his appointment and that was in the Winnipeg Free 
Press of Oct. 17: "The success which attended the Duke of Con- 
naught's occupation of Rideau Hall ought not to be regarded as a 
precedent to justify further experiments of like nature. The next 
Eoyal Viceroy might be as great a failure as the Duke of Con- 
naught was a success." Let the Toronto Globe comment of Sept. 7 
conclude these references : ' * The people of Canada realize with pro- 
found regret that the Duke of Connaught's Governorship is draw- 
ing to its close. During his official regime there has not been a 
single incident to weaken the favourable impression he made when 
he began the long series of public appearances in which he has 
played the most prominent part, but there have been many to 
deepen and strengthen it." A month later the Duke was with the 
Canadian troops in France and inspecting the British front as a 
whole and, on Nov. 24, he and the Duchess opened the new Can- 
adian Women's wing of the Naval Hospital at Chatham. 

The Duke of Devonshire, K.G., P.O., G.C.V.O., G.C.M.G., whose ap- 
pointment had been announced on June 28, was a large landowner 
in England with such splendid seats as Chatsworth, Hardwick 
Hall, Bolton Abbey and Compton Place. He had been in the 
Commons for a time and had served in subordinate Ministerial 
positions such as those of Financial Secretary to the Treasury and 
a Civil Lord of the Admiralty; he was Chancellor of Leeds Uni- 
versity as well as Chairman of several important business con- 
cerns. The Duchess of Devonshire was a daughter of the Marquess 
of Lansdowne and, as Lady Evelyn Fitzmaurice, had spent some 
years in Canada when her father was Governor- General. There 
were two sons the Marquess of Hartington, in the Army, and 
Lord Charles Cavendish, who was a boy at school, and five daugh- 
ters. The appointment was gazetted on Aug. 19 and on Oct. 18 
the Duke was entertained at dinner by the Canada Club, Lon- 
don, with Sir George Perley in the chair and Earl Grey, Mr. Bal- 
four and Gen. Sir Wm. Robertson amongst the speakers. In his 
speech Sir George Perley made the interesting remark that the 
Duke of Devonshire would be in Canada when the terms of peace 
were being discussed, and when the question of future Imperial rela- 
tions had to be determined. l i We feel and believe that the time has 
come when the Overseas Dominions ought to have something to say 
about matters such as peace and war and foreign relations, which 
are their common concern. ' ' The Duke, in his reply, declared that 
"Imperial statesmen would have to provide a system by which the 
great self-governing communities of the Empire would be able to 
work out their own destiny in the light of what were their 
responsibilities to the Empire as a whole." At a luncheon given 
by the Associated Chambers of Commerce on Nov. 1 the Earl of 
Derby took the same view of the important matters which were 
coming up, but added: "New relations may arise after the War 
between ourselves and the Dominions, but none can be as strong as 
these which are binding us now. People talk glibly of a new con- 
stitution. Well, I am a Conservative, and the old constitution is 


good enough for me when it gives such results as during the present 

The new Governor-General arrived at Halifax on Nov. 11 and 
was sworn in by Sir Louis Davies of the Supreme Court of Canada 
at the Nova Scotia Provincial Building. With the Duke were the 
Duchess and Ladies Maud and Blanche Cavendish. His first public 
function was the inspection of an Edmonton Overseas Battalion at 
Ottawa on Nov. 21 ; his first speech was at a Red Cross meeting. To 
the Ottawa Canadian Club on Nov. 25 His Excellency delivered 
this message: "I come, gentlemen, with a message from England 
to say how proud and grateful the inhabitants of the Old Country 
are to be working shoulder to shoulder with you in this great cause 
we have both undertaken. I come with a message of determination 
that this struggle shall be carried through, and that so far as it lies 
in our power it will never be possible again for any clique or small 
collection of men to force such an outrage against civilization and 
humanity on the world." A visit to Toronto followed on Nov. 27- 
30 and included the presentation of loyal Addresses, a visit by the 
Vice-regal party to the Royal Ontario Museum, a dinner to the 
Governor-General by Sir Wm. Mulock, President of the Toronto 
Patriotic Fund, and another at the Toronto Club, visits to the 
Technical School and Soldiers' Convalescent Home, attendance at 
St. Andrews' College Prize Day, and a review of troops. 

During these days (Nov. 29) a run was made up to Guelph and 
the Government Farm and Agricultural College inspected. At a 
College luncheon the Duke dealt with the war situation and then 
added : ' ' We have talked a great deal in the past about the Empire 
maintaining itself. I fear we have talked a great deal; now it is 
time for action. We have to see in the future, whatever our rela- 
tions may be to other Powers, that we shall have sufficiently devel- 
oped the resources of the Empire that we can rely on the products 
of our own countries. ' ' The Guelph institution would, he thought, 
be one of the great factors in this future development. An Empire 
" self -containing and self-reliant" was his motto in several succeed- 
ing speeches. Speaking to the Canadian Club at Montreal on Dec. 
13 after having reviewed the departing Irish-Canadian Rangers 
the Duke was frank as to questions of peace : ' ' We ran many 
risks in attempts to maintain peace and we are not going to sheath 
the sword until we have gained a peace which is of our making and 
of our choosing." He described the Lloyd George Ministry as a 
''National Government" in the best sense of the words. An Hon. 
LL.D. was conferred upon the Duke by McGill University on the 
14th and various Montreal institutions visited by Their Excellencies 
including the historic Chateau de Ramezay where W. D. Light- 
hall, K.C., did the honours for the Antiquarian Society. The Duke's 
personal appointments (Nov. 13) were as follows: 

Military Secretary Lieut.-Col., the Hon. H. G. Henderson 

Private Secretary Arthur V. Sladen, C.M.G., c.v.o. 

Comptroller of the Household Lord Richard Neville, c.v.o., c.M.a. 

Aide-de-Camp .Capt. Angus A. Mackintosh 

Aide-de-Camp Capt. R. O. R. Kenyon-Slaney 

Aide-de-Camp Capt. E. F. Bulkeley-Johnson. 

Hon. Aide-de-Camp Lieut.-Col. Henry R. Smith, C.M.O., i.s.o. 

Hon. Aide-de-Camp Colonel Sir A. P. Sherwood, K.C.M.G., M.v.o. 


sir Robert ^^ e P rune Minister of Canada had no easy task 

Borden : in 1916. He did not have to deal with a number of 

speeches and great nations in complex alliance as had Mr. Asquith, 
war Policy of j^ ne ^id have to control and hold together in a 
lesser arena complicated interests of a racial, geogra- 
phical, industrial, agricultural and political character. If the 
West felt differently from the East and had different requirements, 
the question of conciliation vitally concerned Sir Robert Borden; 
if an Ontario or Manitoba majority wanted more men recruited and 
a Quebec majority lacked interest in the matter or waited for a 
leader like Bourassa to seize the opportunity of setting the heather 
on fire, it was for the Premier to hold the situation in hand; if 
the Minister of Militia and military interests very properly de- 
manded enthusiastic, strenuous Government action for increasing 
the Army while manufacturers and farmers protested that the vital 
interests of war and other industries of the country were being 
injured by lack of men, it was Sir Robert who had, primarily, to 
solve the problem; if any or many of the myriad details in war 
control and war developments hurt individual interests or wounded 
individual feelings, or disappointed personal expectations based 
upon inaccurate premises or unavoidable ignorance of conditions, 
it was the Prime Minister who first suffered in reputation or tem- 
porary popularity. 

Private criticism of the Government was rampant during the 
year; how far or in what degree it was justified the facts in this 
volume will help to indicate. "Not enough energy in recruiting," 
said one; "too many men taken from the country's business/' said 
another ; a total lack of leadership, was the complaint in one direc- 
tion ; too much dictation from the Minister of Militia, was the claim 
in another. And so it went on. Tt can be said at once that the 
greater issues were well met ; the fundamental requirements of an 
Army large for this peace-loving and war-ignorant Dominion were 
faced successfully; the immense financial calls of a difficult time 
satisfactorily adjusted ; the relations with Great Britain maintained 
upon a high level of co-operation and dignified harmony; the in- 
ternal condition of the Dominion safe-guarded with a minimum of 
public friction and no divergence of war policy between Provinces 
and Dominion. Much of this was due to the refusal of Sir Robert 
Borden to depart from his personal policy of 1914 and 1915 a 
cool, steady hand upon the helm of affairs, a quiet and courageous 
indifference to political attack or personal criticism. It was the 
policy of Asquith transplanted and re-adjusted ; whether Canadian 
conditions warranted a change of attitude in policy or any striking 
divergence was a matter of opinion. There were no Zeppelins or 
Submarines to place Canadian thought in a hothouse. 

Abroad Sir Robert Borden 's reputation had grown during the 
year. Lord Headley was responsible in May for a suggestion that 
the Premiers of Canada, Australia, New Zealand and South Africa 
should be added to a special British Cabinet of eight for the pur- 
pose of carrying on the War ; the King of the Belgians conferred on 
Sir Robert the Grand Cordon of the Order of Leopold ; the New 


York Lawyers' Club, a most important and representative body of 
many members from all parts of the United States, made him an 
Hon. life member. At home McMaster University created the 
Premier an Hon. LL.D., while the Geographic Board named one of 
the great mountains of the Coast range "Sir Robert." Though a 
party journal the Toronto Daily News (Apr. 11) may be quoted in 
a rather interesting reference to certain phases of the Premier's 
personality and difficulties during this period : 

The Prime Minister of Canada has many of the qualities of Abraham 
Lincoln. He has no petty vanity. He has no merely selfish ambitions. He has 
genuine patriotism, infinite patience and solid judgment. If he has a fault 
it is that he suffers fools too gladly. But who are fools and who are not may 
appear more clearly when peace comes. By persuasion and argument he 
appeals to the Canadian people. By character and example he commands 
their confidence and support. It may be that if our system of government 
had prevailed at Washington Lincoln, during the early years of the War, 
could not have overcome the dissatisfaction which prevailed in his own party, 
and all the devious intrigues and activities of his opponents. ... In the 
experience of Lincoln there is a lesson for Canada There is no fear that Sir 
Eobert Borden will suffer defeat in Parliament. There is every reason that he 
should trust the people, who have come to know and understand his simplicity 
of character and utter devotion to the public welfare, and who more and more 
seek his counsel and lean upon his judgment. 

The year opened with the Premier's appeal for 500,000 men to 
stand by the Empire and its Allies in the War* ; it closed with a 
record of 392,000 volunteers and 434,000 men all told on active 
service of various kinds. On Jan. 21 it was announced that Sir 
Robert had offered a fully equipped 4th Division for the Front and 
that it had been accepted; in a few months it was on the way to 
France. In his correspondence with Sir Wilfrid Laurier as to the 
extension of the life of Parliament (November, 1915) Sir Robert 
had done his belt to obtain an agreement which would put a general 
election out of bounds during the War, but he could not get beyond 
the agreement for one year and a general pledge of non-partisan 
aid in all War issues. Upon the important point of British and 
Allied purchases of War material and supplies from Canada the 
Premier had been pressing in his representations to the Imperial 
Government and had succeeded in obtaining pledges of most grati- 
fying nature from London. Speaking in the Commons on Jan. 17 
Sir Robert stated something of his intercourse with the British 
Government : ' ' We provided them with a list of articles of a very 
varied character that could be furnished by this country for the 
use of the Allied nations. I discussed also with the British author- 
ities the importance of emphasizing to the Allied Governments the 
abundant resources of Canada for supplying many needed articles. 
I had also a conference with the International Purchasing Commis- 
sion. All of the Allied nations were represented there. I furnished 
them with a full list of articles that we could supply, and I pressed 
upon them the importance of looking to Canada in that regard." 
Up to July 10, 1915, orders to the value of $240,000,000 had been 
placed in Canada; he estimated the total up to the beginning of 
1916 at $500,000,000. 

*NOTK. See The Canadian Annual Review for 1915, Page 185. 


An interesting discussion in the House on Mar. 13 revived an 
historic subject and presented the Premier's position on a past issue 
in a new light. E. M. Macdonald, one of the Liberal leaders, had 
criticized Winston Churchill as having failed in his Admiralty pol- 
icy at Antwerp and the Dardanelles after having, also, failed in 
giving the right advice to the Canadian Government in its 1912 
.Oreadnaught policy. Sir Robert responded with the statement that 
the Memorandum in question, urging certain reasons for making 
Canadian Naval aid at that juncture both important and valuable, 
was from the Admiralty Naval Board and not Mr. Churchill alone, 
and that it did not include all the information given Canada. "I 
have not the slightest doubt that the message which came to us from 
the British Government, through the Admiralty, was to some extent 
influenced by the very fact that the British Government knew more 
than they thought it discreet or prudent to reveal to the public of 
Great Britain, but which they did partially reveal to us, not only in 
the document laid on the table of the House, but in a certain other 
document which was communicated to some of the Hon. gentlemen 
on the other side of the House and which said far more than the 
document which has been made public in this country. ' ' Yet, he 
said, the Opposition had continued their policy of refusal to grant 
this aid or to believe in the German emergency. During this Session 
of Parliament the Premier proved once more his effectiveness as a 
Parliamentary leader and debater. Whatever the criticisms of his 
personality and policies this fact was apparently admitted during 
his later years of office. He never became excited or doubtful 
of himself in debate and, therefore, never lost control of the House ; 
if he did not sweep members off their feet with eloquence neither 
did he arouse angry passions nor make religious or racial mistakes 
of expression. Patience of temper, clearness of thought, and a 
sense of public responsibility and public honour were the best 
things attributed to him; lack of inspiring leadership a Lloyd 
George personality was the worst charge against him. A high 
tribute to France on its National Fete day was given by Sir Robert 
on July 14 in response to a request from Paris : 

A year ago I was in France and had the opportunity of learning at first 
hand something of the spirit and the achievements of her people. It would be 
impossible to describe in measured terms the indelible impression made upon 
me by the serious courage, the resolute patience, and the strong self-control 
of the French nation. At the Front, or in reserve, the whole manhood of the 
nation was mobilized to do each his appointed task in aiding to repel the 
invader. In that wonderful organization of a great democracy to defend and 
preserve its independence and its very existence the highest and the humblest 
met on equal terms. For each the supreme test was efficiency and the prime 
duty self-sacrifice. 

Meantime, some important Deputations had waited upon the 
Premier. On Jan. 27 representatives of the Prohibition cause 
came from several Provinces and were headed by F. S. Spence, 
Rev. T. Albert Moore and Rev. Dr. A. S. Grant, Toronto ; A. W. 
Fraser, K.C., J. R. Booth, Charles Hopewell and Rev. Dr. W. T. 
Herridge, Ottawa; Judge Lafontaiiie, S. J. Carter and John H. 
Roberts, Montreal ; Rev. H. R. Grant, Halifax, and Calvin Lawrence 


for the Brotherhood of Locomotive Engineers. They asked the 
Government to support the complete Federal abolition of the sale 
of liquor for beverage purposes in Canada. The Premier in reply 
pointed out that "the enactment of a law is one thing and its en- 
forcement another thing." He had seen counties in Nova Scotia 
where there was local option, and yet liquor was sold openly. This 
was as evil a thing as could be imagined. "If the public opinion 
in any Province has not compelled the Legislature to go to the 
limit of its power, there must be some reason and this must be taken 
into account." He believed that if Prohibition was a good law to 
be enacted during the War, it was a good law for any other time. 
On Apr. 14 a Delegation representing 42 Recruiting leagues of 
Canada with Chief Justice Mathers of Winnipeg and S. F. Wash- 
ington, K.C., of Hamilton as the chief speakers, waited upon the 
Premier and presented a Memorial urging some form of compulsion 
to complete Canada's enlistment. In his reply Sir Robert refrained 
from committing the Government but reminded the Delegation that 
there had so far been no lack of recruits, since men were coming 
forward at the rate of 1,000 a day. He also pointed out that even 
when men had been enlisted from six months' to a year's training 
was necessary to fit them for service. He admitted that there were 
loopholes for economic waste in the system of voluntary enlistment. 
"In an informal way, however, the Government has been endeav- 
ouring to arrange that men be drawn from the industries which 
can afford to spare them and as little as possible from those that 
are essential." 

At Valcartier on Aug. 5 the Premier reviewed 13,000 troops 
representing Quebec and parts of Ontario and in addressing the 
officers, told them that over 200,000 were then Overseas. "Can- 
adians are appreciated for their adaptability at the Front and Sir 
George Perley has told me that British officers in the regular Im- 
perial Army have likened the Canadians to some of the best Guards' 
regiments." Two days later he reviewed the four Battalions of 
the Nova Scotia Highlanders and the 97th Battalion of the Ameri- 
can Legion at Aldershot, N.S., with this farewell message: "You 
are going to the Front at a most important and vital period of 
this great struggle. The first year of the War was one of testing ; 
the second, one of preparation; but the third year will be one in 
which the Armies of Great Britain and her Allies will fight harder 
and fiercer than they have ever fought before." At Halifax on 
the 10th the Premier addressed the Commercial Club and em- 
phasized the great, silent work of the Navy : " I beg of you to try 
to realize what would be the condition of the Dominion to-day if 
the control of the ocean's highways should pass from our Empire 
to that of Germany. Our fate would be like that of Belgium." 
As to Britain the task of preparation in the first two years of the 
War had been almost incomprehensible in its magnitude. "The 
work done by the Imperial Government is one that almost surpasses 
anything the imagination can conceive. . . . No effort on the 
part of the Dominion shall be spared to enable the Empire and our 
Allies to achieve success." 


To the Halifax Conservative Club (Aug. 11) Sir Robert, spoke 
of public affairs in general with the premise that he had not made 
a political speech since the outbreak of the War unless in defence 
of some Department of the Government. * ' The day will come when 
our tongues will be loosed and we will be able to give a good account 
of our stewardship. With reference to graft or scandal I wish to 
say a few words. If any man in this city, in this Province or in this 
Dominion knows of any person in the employ of the Government of 
Canada, who he believes is guilty of wrong-doing with public 
funds, let him bring a charge to my notice and if an investigation 
is necessary it will be made without one moment's delay. If pro- 
ceedings in the Courts are required to deal with any pubic offical 
those proceedings will be instituted." The policy of the Party he 
denned as Unity and Development. In connection with the Naval 
question of 1912-14 he said: "I asked the Imperial authorities for 
the best Naval expert to advise us as to the way we could best 
take part in the defence of the Empire. In June, 1914, we were 
told that Sir John Jellicoe was to resign his position and take com- 
mand of the Grand Fleet in December, and for two months we 
could have the benefit of his ability and experience. It was ar- 
ranged that he was to come early in August or October. On 
August 4th war broke out and Sir John took command of the Navy. 
We enquired whether we should devote' our energies to the effect- 
ing of a Naval policy or to concern ourselves with the development 
of an adequate military force. We were asked to pursue the lat- 
ter course." A visit to the Musoquodoboit region of Nova Scotia 
followed along a line of railway for which the Government were 
responsible and from which much local development was hoped. 
The Premier at this time accepted the position of Hon. Colonel of 
the 85th Highland Battalion, though declining, as unprecedented, 
the suggestion that he should hold that post in the Nova Scotia 
Highland Brigade. An interesting incident of early October was 
the appearance in Le Devoir of an open letter from B. W. Thom- 
son, Canadian correspondent of the Boston Transcript, a quasi- 
Liberal and believer in J. S. Ewart's scheme of an independent 
Canada under the King, in which he approved of the Dominion's 
participation in the War, urged French-Canadians to enlist, and 
added : 

Inasmuch as Sir Eobert Borden boldly put Canada on that way, and has 
steadily pursued that course, he appears to me to have been guided by well- 
informed sense, and by such inspiration as may properly be termed genius. 
None but a great man would have dared what he dared in August, 1914 
venturing to interpret the real mind of the Canadian people in such a time of 
confused opinion and quaking dismay. I humbly confess that he then knew, 
as by instinct, what men like myself, who at first objected to Canada being 
committed to the War without a mandate from the Electors, would be thinking 
when time should have disclosed the power, preparedness and ambition of 

During this month Sir Robert faced successfully a serious 
situation in the West under which 8,000 conductors, trainmen and 
yardmen of the C.P.R. threatened to strike. After varied negotia- 
tions conducted by the Company, by Mr. Crothers, Minister of 


Labour, and others, it seemed that matters were hopeless and a 
walk-out was ordered for Oct. 2f>. At this juncture the Premier 
took the question into his own hands and on the night of the 23rd 
wired the men's leaders at Winnipeg an appeal to their patriot- 
ism: " Having regard to the obligations of this country to do its 
part in the pending struggle which involves its future, we hope 
that every effort will be made to reach such a settlement that will 
prevent the necessity of a strike in the midst of the War and the 
Government, if desired, will be glad to place its good offices at 
your service with a view to avoiding a controversy which would 
weaken our efforts in the War and which might be attended with 
disastrous results to the great cause that we all have at heart." 
Failing success of current negotiations he urged a conference at 
Ottawa with the Government. From S. N. Berry and James Mur- 
dock, the Chiefs of the Order of Railway Conductors, came the 
immediate reply that ' ' this dispute has reached the point where the 
undersigned are powerless .to prevent the will of the men, the con- 
stituted authority in the organization, from carrying out their 
desires. The general committees representing the conductors and 
trainmen decided several days ago that strike would occur on Oct. 
25 unless in the meantime satisfactory settlement was conceded by 
the Company." 

There was no way, it was added, of delaying the issue except by 
a satisfactory settlement from the Company, which, the despatch 
asserted, had gained most bountiful returns in the past year as a 
result of the War. A special Cabinet Council followed on the 24th 
and then the Premier issued this very clear intimation that the 
strike must be averted : ' ' The rights of the employees and those of 
the Company, whatever they may be, are entitled to every respect 
and consideration, but the rights of the public must also be taken 
into account, and the Government cannot forget its duty as guard- 
ians of those rights. This duty is especially imperative in time of 
war. Before taking any active step to prevent public disaster the 
Government appeals once more to the Company and the employees 
that such settlement be made ay will prevent the threatened strike. ' ' 
Both sides recognized that this meant serious Government action 
and a satisfactory settlement was reached followed by telegrams of 
congratulation from Sir Robert Borden to the Company and the 

In October and November the differences between the Premier 
and his strong-willed Minister of Militia were coming to a head. 
There had been an obvious divergence of view developing for some 
time but Sir Robert Borden was instinctively loyal to his friends 
and colleagues, loathe too much so his critics claimed to believe 
ill of them, prone to give his full confidence and a free hand to any- 
one whom he once trusted. Occasionally, in the past two years, 
the Premier had felt impelled to reverse or alter Serious details in 
Militia policy or to contradict certain hasty statements of the 
Minister, but he appears to have had a strong sympathy for Sir Sam 
Hughes' boundless optimism and vigorous policy and to have con- 


sidered complaints and difficulties, for a long time, as matters for 
compromise. The break came over the question of control and co-or- 
dination of Canadian military interests in England the concerns 
of 100,000 men at the Front and the management of 150,000 men 
in England, with hospitals, training and a great variety of details 
included. Correspondence afterwards published showed that Sir 
Thomas White, as Minister of Finance, had drawn attention, also, 
to this situation. On Oct. 16 the Premier wrote to his Minister 
enclosing a Memorandum of proposals discussed the preceding day 
and in which Sir Robert had stated more efficient organization in 
Great Britain to be necessary and the appointment of an Over- 
seas Minister of Militia to be desirable. To this General Hughes 
took exception, in succeeding letters he suggested a Sub-Militia 
Council with Sir Max Aitken in charge, and finally, on his own 
responsibility, appointed such a body in an advisory capacity. This , 
action and a letter on Nov. 1st of considerable personal tartness / 
evoked a short and concise reply from the Premier on Nov. 9 which ; 
ended with a request for the Minister's resignation: 

During your absence I have given very careful consideration to your letter y ^ L> 
of the 1st instant, and I must express my deep regret that you saw fit to 
address to me, as head of the Government, a communication of that nature. 
Under conditions which at times were very trying and which gave me great 
concern, I have done my utmost to support you in the administration of your 
Department. This has been very difficult by reason of your strong tendency 
to assume powers which you do not possess and which can only be exercised 
by the Governor-in-Council. My time and energies, although urgently needed 
for much more important duties, have been very frequently employed in 
removing difficulties thus unnecessarily created. You seemed actuated by a 
desire and even an intention to administer your Department as if it were a 
distinct and separate Government in itself. On many occasions, but without 
much result, I have cautioned you against this course, which has frequently 
led to well-founded protest from your colleagues as well as detriment to the 
public interest. . . . Some portions of your letter are expressive of the 
attitude which I have described and to which you evidently intend to adhere. 
Such an attitude is wholly inconsistent with and subversive of the principle of 
joint responsibility upon which constitutional government is based. 

Whatever else this correspondence indicated and further con- 
sideration is given it in connection with Military affairs it showed 
self-possession and self-control on the Premier's part up to a cer- 
tain point and then dignified determination. Meanwhile Sir Robert 
had been dealing with a new and greater issue. The easing-down of 
recruiting, the increasing demand for labour, the calls of industry 
and transportation for more men, had created a situation of great 
difficulty and, during the four months beginning with September, 
it was a subject of constant consideration and effort. Out of this 
came the establishment of a National Service Commission, the 
Premier's appeal for more recruits and for organized action to 
relieve men for active service, and a tour of the country which 
included speeches at Montreal, Quebec, Winnipeg, Saskatoon, Ed- 
monton, Vancouver, Victoria, Calgary, Regina and Toronto. Before 
leaving on this latter tour the Premier was the guest on Nov. 18 of 
the Lawyers' Club, New York, and in his speech supported (1) 
the Taft idea of a League to Enforce Peace, and (2) a future co- 


operation of the whole British Empire in supporting the British 
Navy : 

Nations determined to uphold ideals of public right and resist attempts of 
militaristic domination may be concerned to co-operate for the preservation of 
peace until they can erect and maintain a tribunal whose decree in interna- 
tional differences shall be respected and enforced by the organized power of 

The Overseas men will have learned before they come back that the 
liberry and security of our Empire are dependent upon the safety of the ocean 
pathways, whether in peace or in war, and that while sea power cannot of 
itself be the instrument of world domination, it is nevertheless the most 
powerful instrument by which world domination can be effectually resisted. 
This burden must not rest upon Britain alone, but also upon the greater Com- 
monwealth which comprises all the King's dominions. 

During his visit to Victoria, B.C., Sir Robert Borden, on Dec. 
16, received a Board of Trade delegation, headed by C. H. Lugrin, 
which urged the early construction of the Esquimalt drydocks, 
national development of the iron and steel industry, and the aboli- 
tion of the existing embargo on labour from the United States. 
Careful consideration was promised ; as to the Labour situation the 
Premier stated that 400,000 men were enlisted and 300,000 working 
in munition factories. Other incidents of the year included the 
creation of the post of Parliamentary Under-Secretary of State for 
External Affairs as an aid to the Premier in the Department of 
which he was head with Sir Joseph Pope as the active administra- 
tor; the appointment of Colonel Hugh Clark, M.P., for North Bruce, 
an experienced and popular member of the House, to the position ; 
a contribution by the Canadian Government of $25,000 to the 
Kitchener Memorial Fund. On Dec. 20, in reply to the stirring 
message sent by Mr. Lloyd George to all the Dominions upon acces- 
sion to the Imperial Premiership, Sir Robert Borden responded in 
eloquent terms : 

On behalf of the Canadian people I send to our kinsmen of the Mother- 
land the assurance that our hearts are as undaunted and our determination 
as resolute as when we ranged ourselves in the Empire's battle-line two years 
ago. All our sacrifices would be worse than useless unless the purpose for 
which this war was undertaken is achieved in such victory as assures the future 
peace of the world. Your message reached me in the Western Provinces of 
Canada, while engaged in commending and supporting proposals for better 
organization of our national service and for more effectual utilization of our 
natural resources from the Atlantic to the Pacific. I have found everywhere 
the strongest determination that both the human energy and the national 
resources of this Dominion shall be utilized to such purpose as will throw the 
full strength of Canada into the struggle. At Eegina and at Brandon I read 
your words to two great gatherings, and the response which they evoked was 
splendid and inspiring. We shall indeed tread the path side by side in full 
realization that the sacrifice, however great, is for a cause transcending even 
the interests and destiny of our Empire, and in supreme confidence that this 
path alone can lead to the ultimate triumph of democracy, liberty, and civiliza- 

Meanwhile, the question of selling horses to British and other 
buyers had been a subject of fitful discussion during the whole war- 
period. A petition sent forward to the Premier early in 1916 de- 
clared that the horse-breeders and dealers of Ontario had been the 
victims of exorbitant charges and unfair treatment from the large 
dealers in Toronto, and elsewhere, when they had tried to sell their 


horses to the British or French Governments. These complaints, 
and difficulties also stated in the West, appear to have risen from 
war complications. During 1915 there was for a time an embargo 
upon the export of horses to the United States in view of possible 
British requirements but this was raised when the British Govern- 
ment ceased, for a short period to buy in Canada; in August, 1915, 
an arrangement was made by which the British Government pur- 
chased all Canadian horses that it required through a Remount 
Commission of which Sir Adam Beck was the head, and also pur- 
chased for the requirements of the Canadian force. In the House 
on Feb. 14, 1916, Sir Robert Borden stated that "the French Gov- 
ernment was also buying horses in Canada for war purposes and 
that representations had been made to both the British and French 
Governments as to the number available in Canada for remount 
purposes." In May it was stated that 60,000 horses had been 
purchased by the Allied Governments since the outbreak of the 
War, while over 600,000 had been bought in the United States. 
Later in the year the demand was reported as strong with the 
British agents wanting heavy animals and the French a light horse 
for riding purposes. A British Remount Commission Sir Charles 
Gunning in charge was, also, established in Montreal. 

At the close of the year Sir Robert Borden sent a number of 
messages abroad on behalf of Canada. To the troops in England, 
under Gen. R. E. W. Turner, and those in France, under Gen. Sir 
Julian Byng,. Christmas greetings went with an assurance that 
"the Canadian people are resolved to spare no effort and shrink 
from no sacrifice to support the cause for which you have taken up 
arms on behalf of your country. ' ' To the Overseas Club, which had 
raised so much money for war purposes, he addressed an eloquent 
tribute (Dec. 30) as to the Empire's military services which con- 
cluded as follows: "Those who at every sacrifice are writing this 
undying story in their splendid achievements in every far-flung 
theatre of war, may rely on the unalterable determination of all 
Britons that nothing shall be wanting to support their heroic efforts 
and preserve the common Empire and the common brotherhood." 
New Year greetings and official war pledges were sent on Dec. 31 
by the Governor-General on behalf of the Government to H. M. 
the King, the King of the Belgians, the French President, the 
Russian Czar, the Emperor of Japan, the President of Portugal, 
the Governments of all the British Dominions and India, and the 
King of Italy. 

At the close of 1916 the Government of which Sir Robert- Borden 
was the head had under its control 110,000 men at the Front with 
10,000 more about to leave for France ; it had despatched overseas 
during that year 165,000 men and maintained 13 Field ambulances, 
7 general hospitals and 9 stationary hospitals with the forces in 
England. France and elsewhere ; it had helped to establish the 
Munition industry in Canada up to a total of 630 plants with 
304,000 workers, and had obtained $175,000,000 from the people 
to lend to Great Britain for the further purchase of munitions : it 


had established a War Purchasing Commission, under Hon. A. E. 
Kemp, which had controlled purchases and administered payments 
to a total of about $100,000,000 without a suspicion of trouble or 
even partisan attack; it had organized a Transport system under 
A. H. Harris as Director which controlled 75 ocean steamers and 
handled 2,250,000 tons in the year, besides helping to guide the 
complex war interests of the country in railway transport; it was 
at the end of the year, trying to develop a system of National Ser- 
vice which would include the whole country in its scope and influ- 

Military Time which mellows criticism, weakens partisan 

Administration feeling and modifies personal animosities, will seize the 
Hughes*' large things which Sir Sam Hughes did during his 

speeches and period of war-work, draw a veil over the lesser things 
Policy which he did not do or did badly, forget the unwise 

things which he said and which for a time rankled in public and 
private memories. It is always easy after an event to say that mat- 
ters would have come out all right without the particular lever or 
personal force which moulded them; it is not impossible that a 
Hughes at the head of the Militia Department in 1900 excellent 
Minister as Sir F. Borden was in many respects might have sent 
70,000 men to South Africa instead of 7,000. For concentrated 
effort and energy the Valcartier Camp of 1914, with its 33,000 men 
ready for the ships in six weeks, will be long remembered; as a 
matter of practical result and with all due consideration for de- 
tails, or error in act or policy, the raising of 400,000 men in this 
country will stand as a great achievement. An Army of 5,000,000 
would be the United States equivalent if that country's population 
be accepted as 100,000,000. 

The work of enlisting, organizing, equipping and partially 
training such an army was a great one, no matter how many de- 
fects there were in the process or how much criticism may have 
been justified as to details. The provision of arms and ammunition 
in a fully-equipped Peace community, the creation of lines of com- 
munication units, ammunition supply columns, transport commis- 
sariat, medical service, hospitals, etc., entailed immense labour. The 
carrying of troops over the 3,000,000 square miles of Canada's 
area and their transport across the Atlantic was a great task in 
itself. The re-organization of the Department and its various sec- 
tions, the allignment of new and strange duties and heavier respons- 
ibilities for its Staff, the provision of adequate care for wounded in 
England and in Canada through a special Commission these 
and many other matters were a part of the Minister's work and 

On the other hand his critics and opponents claimed that all 
Sir Sam Hughes' zeal and energy and patriotism and democracy 
were marred and the results broken by his personal egotism and 
arrogance of manner, and that he had made himself the head and 
chief of the military forces of Canada in a way quite different from 
that of the Minister of War in any other country had transferred 


a civilian position into a purely military one. Political antagonists 
such as the Toronto Star, which had been friendly at the beginning 
of the War, gradually merged into hostility; inconsiderate and 
blunt treatment of officers aroused ill-feeling in many personal 
quarters; rash or unwise utterances such as that about the Ypres 
salient estranged strong party supporters ; the usually valued trait 
of standing by friends or by a policy became unpopular when ap- 
plied to Wesley Allison or to the Ross Rifle ; the intense optimism 
which at the beginning did such good service and only smiled at 
the sneers evoked by his reference to a possible 500,000 men from 
Canada, became harmful to recruiting at certain stages of difficulty. 

As to details, when the first rush of troops to Valcartier was 
over, the Minister was criticized in Militia circles for not then, and 
subsequently, attaching Overseas units to existing home Regiments, 
so as to preserve their names and honours for the future though 
no such public suggestion was made at the time ; he and the De- 
partment were increasingly criticized during 1915 and 1916 for 
not paying more of the $12,000 or $15,000 which the equipment and 
raising of a Battalion was said to cost the officers and local public ; 
he was charged with undermining the discipline and the mutual 
respect of officers and men by free public criticism of the former 
at Valcartier, Toronto, Kingston, and London, in particular ; equip- 
ment was declared to be deliberately provided in Canada which it 
was known would have to be discarded in England. He was blamed 
when transportation troubles held up troops in Canada, when train- 
ing requirements held them in England, when casualties at the 
Front compelled the breaking up of Battalions; he was criticized, 
with more justice, but also with some unfairness, for chaotic con- 
ditions in the administration of Canadian military affairs in Eng- 

Politics inevitably came into the situation. The Minister was a 
shining mark in such a connection and he did not escape the vigor- 
ous criticism of Liberal papers such as the Toronto Globe and Win- 
nipeg Free Press and of some Conservative journals such as the 
Montreal Mail, the Winnipeg Post, the Orangeville Sun and Toronto 
Telegram; the sniping of press writers such as H. F. Gadsby and 
Arthur Hawkes; the Parliamentary denunciation of opponents 
such as Hon. Wm. Pugsley and F. B. Carvell and George W. Kyte. 
It was claimed by the Toronto Star which had never been 
partisan in this connection on Aug. 2nd that masses of Canadian- 
made equipment and supplies were scrapped when they reached 
England as not harmonizing with British Army requirements and 
rules. Transport waggons, the Eaton machine gun Battery, 
bicycles, boots and the Oliver equipment, were instanced. To each 
of these charges the Department in an official statement on the 10th 
presented an almost complete denial. As to the Ross Rifle it was 
admitted during the year that the War Office had replaced it with 
the Lee-Enfield for active service. 

The Globe was the leader in such party attacks as there were 
upon the Minister. Some of its statements were strenuous in the 


extreme and were obviously dictated by a keen belief in the neces- 
sity for strong speaking and acting in the premises. In its editor- 
ials of June 22-23 the Minister was vigorously attacked for 
''bluffing," "swashbuckling," recklessness in speech, injury to re- 
cruiting by such incidents as the Ypres letter. On the 28th it was 
stated that "in the regular and ordinary administration of the 
affairs of the Militia, the Department at Ottawa has failed and 
fallen down at every point yes, at every point. In the arduous 
work of recruiting, the officers in charge have been hindered instead 
of helped by the officials in the Department. Wherever he goes the 
Minister, by his cheap affectation of contempt for law and prece- 
dent, makes the task of recruiting and of discipline needlessly diffi- 
cult." On July 21 General Hughes was denounced for swagger 
and boasting and for "meddlesome interference" with officers 
from F.M. the Duke of Connaught down to the London camp com- 
manders. But, in a long series of these articles, the most slashing 
was that of Aug. 24 in which the rumour that Sir Sam Hughes 
wanted, and might receive, a command in France was dealt with 
in language rare even to Canadian politics and involving the 
mixture of strong party criticism with stern personal denunciation : 
It would be a crime, the ghastliest and most murderous crime of the War, 
no matter what the excuse or what the cause, were General Sir Sam Hughes 
given a real command of living soldiers in a genuine engagement anywhere 
on the War's battlefront. . . . The Prime Minister has long lost grip on 
the Government, even as the Government has lost grip on the Canadian 
situation. The Allison dishonour and the Camp Borden horror are only the 
most conspicuous of the Government's burdens. But the fortunes of any 
Government or of any political leader in Canada are as nothing, and less than 
nothing, compared with the fate of a Canadian Army on the French or Bel- 
gian front, dependent on the strategy and judgment of Sam Hughes, To 
acquiese in such a crime, as a condition of his resignation from the Canadian 
Government, would be to try to wash out the reminders of political blundering 
in the life-blood of Canadian regiments. It is bad enough to have to suffer 
his aping of Napoleon as the world's other military genius; but to allow him 
a chance to put his apings into practice with the flesh and blood of Canada's 
sons and men No! 

Meanwhile the Minister appeared quite indifferent to party cri- 
ticism ; he was never so to personal attack. The details of his 
energetic work during the year must be dealt with as briefly as 
possible. Following the Premier's call for 500,000 men Sir Sam 
Hughes found the area of his labours greatly enlarged. At this 
juncture 225,000 men were in training at home and in England or 
on active service at the Front, and he proceeded at once to attack 
the larger proposition with the matter of trained officers as one of 
the chief problems. On Jan. 3rd the Minister announced that ' ' the 
Department is taking steps to obtain the best officers available to 
organize new battalions. What we especially desire is strong men 
who have had successful business or professional training. Just 
as in the case of Clive, Nicholson and many others, so to-day the 
best soldiers are men such as engineers, barristers, contractors 
large business men with military training." He added the char- 
acteristic statement that "they far surpass the professional sol- 
dier." He was very confident as to success in the raising of this 


force and at a banquet of the 2nd Military .District in Toronto on 
Jan. 4 expressed his belief strongly while announcing that the 
allotment of men to be raised had been made as follows : Toronto 
district, 5 divisions ; Eastern Ontario, 2 divisions ; Western Ontario, 
2 divisions; Manitoba and Saskatchewan, 3 divisions; Alberta, 2 
divisions; British Columbia, 2 divisions; Quebec, 3 and possibly 
4 divisions; Maritime Provinces, 2 divisions. 

About this time the 3rd Canadian Division (18,000 men) was 
sent to the Front, under Maj.-Gen. M. S. Mercer, C.B V and was 
made up of the 7th Infantry Brigade, which included the Royal 
Canadian Regiment recently brought from Bermuda where it had 
been stationed for many months the Princess Patricia's Canadian 
Light Infantry, the 42nd and 49th Battalions; the 8th (Mounted 
Rifles) Brigade which was composed of four Regiments of Mounted 
Rifles fighting on foot, and the 9th Infantry Brigade. There were, 
also, the Divisional (Corps) Troops composed of the Royal Can- 
adian Dragoons, Lord Strathcona's Horse, two Engineer Fortress 
Companies and Signal units; with four siege-artillery Batteries, 
three Tunnelling companies, Railway construction corps, Ammuni- 
tion parks, sanitary sections, supply columns, casualty clearing 
stations and hospitals, field butcheries and bakeries, veterinarj^ sec- 
tions, Ordnance travelling workshops, depots for medical supply, 
transport, veterinary, remount, ordnance, pay and postal services. 
Early in January Sir Sam Hughes made a recruiting tour of 
his constituency of Victoria and Haliburton said to have already 
enlisted 2,000 men with a programme which included 20 speeches 
in two days and a concluding meeting at Lindsay on Jan. 8 when 
he stated that recruits were coming in at the rate of 1,000 a day 
while optimism prevailed in a declaration that ''before the snows 
of next winter commence to fall a treaty of peace will be signed 
that will forever crush German autocracy." On Jan. 20 the offer 
of a 4th Division to the War Office was announced and succeeding 
meetings were addressed by Sir Sam at Prescott and other points. 
At Peterborough (Jan. 22) he made special reference to the value 
} of his Temperance policy in the Army. ' ' Of all the men enlisted 
J in the Dominion the cases of drunkenness have totalled less than 
| two men per 1,000. ' ' In the Commons on Feb. 23 the Minister 
took occasion to define his position as to War honours in connection 
with the statement of Col. J. A. Currie on the preceding day that 
" there were only two men who stood between me and any decora- 
tions that might have come to me, or any 'mention in despatches,' 
and these were General Alderson and the Minister of Militia here." 
To this the Minister replied as follows: "In regard to decorations, 
the Hon. member for North Simcoe has as much to do with them as 
I have. I was not in the field, and therefore was in no position, 
other than from hearsay, to make a recommendation, even suppos- 
ing I had the right to do so. Every one will admit that it would be 
a great presumption on the part of anyone who had not been in 
the field, and who was not familiar with the actual operations, to 
interfere in the sense of making any recommendation." 


General Hughes had always believed in French-Canadian 
patriotism and often declared in his speeches that they were doing 
well in this crisis though, at times, he added that they might do 
better. One of their members, G. H. Boivin, told a Toronto audi- 
ence (Feb. 27), in return that the Minister's " tremendous energy 
in the raising and outfitting of armies marked him out as a sort of 
electric dynamo." Typical of Sir Sam's brusque way of saying 
things was his reference to Ottawa's young men, as reported in a 
New York Tim ^interview of Feb. 27: "I saw 600 able-bodied 
young men coming out of a rink last night with nothing to do. 
Make them work. They ought to be enlisted and getting in shape 
to fight Germans instead of yapping at a hockey game. ' ' He added 
that Canada was raising a trained democratic Army. "Both of 
the adjectives I have just used, trained and democratic, are of the 
utmost importance in understanding this situation. Our strength, 
up to 1,750,000 men, if necessary, will be in a volunteer army of 
citizens, every man trained in modern methods of warfare. And 
the lesson of all history is that the democratic army, after it gets 
its bearings, ahvays defeats the standing army of professionals." 
On Mar. 9th the Minister left Ottawa for England and the Hon. 
A. E. Kemp relieved him officially. On his way he addressed a 
military recruiting meeting in Montreal and made this remark as to 
the Universal training which he strongly supported: "I would 
infinitely rather have a yoke of oxen hauling 10,000 empty bags 
than have 10,000 untrained men in an army behind me. They are 
useless, and they must be fed and taken care of. I would rather 
have 100 trained men than 10,000 untrained patriots." As to the 
275,000 men already raised it was infinitely more than most people 
had ever thought possible. In 1913 Lord Eoberts had asked him 
if Canada would contribute 10,000 men in case of the great war 
which the Field Marshal feared was coming and the Colonel Hughes 
of that day told him they might place 30,000 men in France, if 
required. He thought that, now, Montreal alone could raise 70,000 
more men. "I would respectfully ask the young man, and urge 
the business man to point out to the young man, the great neces- 
sity, and his own part in it." Lord Shaughnessy urged caution 
and discrimination. Meanwhile, on Mar. 1, Canada had been 
divided, by General Orders, into the following Military Districts: 

Military District* Headquarters Commander 

No. 1 London Col. L. W. Shannon 

No. 2 Toronto Brig.-Gen. W. A. Logic 

No. 3 Kingston Col. T. D. R. Hemming 

No. 4 Montreal Brig.-Gen. E. W. Wilson 

No. 5 Quebec City Col. A. O. Fages 

No. 6 Halifax Maj.-Gen. Thomas Benson 

No. 10 Winnipeg Col. H. N. Ruttan 

No. 11 Victoria , Col. A. T. Ogilvie 

No. 12 Regina Col. N. B. Eager 

No. 13 Calgary Brig.-Gen. E. A. Cruikshank 

Each District Officer was proclaimed the representative of the 
Minister of Militia and Defence and charged with responsibility 
for (1) the efficiency, discipline and interior economy of the troops; 
(2) the military training of the officers and men under his com- 

"NOTE. On Aug. 1 the Valcartier, Petawawa, Borden and Hughes Camps were 
made Military Districts. 


mand ; (3) the arrangements for mobilization and the maintenance 
of mobilization equipment; (4) the maintenance of the armament, 
works and buildings; (5) the economical control of all expendi- 
tures; (6) the proper conduct of all departmental services; (7) 
the compilation of the necessary estimates for such services; (8) 
recruiting and discharges; (9) inspection of barracks, armouries, 
etc. ; (10) the issue and return to stores of arms, ammunition, equip- 
ment, etc.; (11) the collating, compiling and forwarding to Head- 
quarters of all returns, etc. 

The Minister reached England a couple of weeks later and on 
Mar. 20 was given the freedom of Falmouth with the Mayor's 
flattering description of him as "the Kitchener of Canada." On 
the 22nd he was present at a Royal entertainment to wounded sol- 
diers in Buckingham Palace and afterwards held conference with 
Canadian Brigade Commanders at Shorncliffe and Bramshott, with 
reports showing the conspicuous good conduct of the soldiers in 
training. In England the Minister found much that required at- 
tention amongst Canadian troops and in their organization. He 
and his Department had been blamed in Canada for not sending 
troops more rapidly overseas ; very often this had been due to lack 
of Imperial and Canadian transport agencies. Some of the con- 
ditions prevalent in England at this time were not the fault of the 
Canadian Department though, no doubt, there was always room 
for more and better organization. It was semi-officially stated 
from Ottawa, for instance, that the matter of surplus officers in 
Britain was a difficult one and it was pointed out that with the 
first Division 400 extra officers had gone over, of whom many, 
though not all, had been absorbed into regiments at the Front. 
With succeeding Contingents from Canada there had gone the 
regulation number of officers; but when drafts were sent from 
England to Flanders few officers were required, and the result was 
that there were in England about 600 extra officers. It was con- 
sidered necessary to keep a certain number for emergencies ; others 
the Minister now decided to send back to Canada for training pur- 
poses; some, unfortunately, preferred to stay in England and 
would accept no opening at the Front which did not give them full 
rank nor would they accept opportunities in British Regiments. 
How these were dealt with did not appear. 

Meantime the General's enthusiasm was finding full fling. To 
the London Chronicle of Mar. 30 he said with emphasis: "We have 
got to lick the German Armies so that this thing cannot come again. 
Yes, sir, the safety of the world hangs on that. We have got to 
blow the bugle of human liberty. Look how it rings into the souls 
of men wherever freedom is loved. We have raised 300,000 men in 
Canada and we can raise as many more.'' As to the future : "Don't 
let any man in this country or among any of our Allies imagine for 
one moment that our boys have laid down their lives in France for 
a patched-up peace. No, this War is to a finish." On Apr. 3 he 
reviewed the Canadian troops at Shorncliffe and presented various 
decorations granted by the British and Russian Governments. In 


his address a statement was made of some historic importance: 
"When we sent over the first Division we thought we should pro- 
bably have finished, with the exception, perhaps, of some reinforce- 
ments." Following this came the Shell controversy in Parliament, 
the recall of the Minister to Ottawa and a farewell tribute to the 
latter from the London Daily Express (Apr. 5) : ''Neither a 
Government nor a combination of individuals could do what Sir 
Sam Hughes has done to secure and perfect the organization of 
the Expeditionary forces." On Apr. 18 Sir Sam Hughes faced the 
charges in Parliament, and later before the Commission of Inquiry, 
and came through the conflict in characteristic style with no stain 
upon his personal probity, with the main charges discarded and 
with only matters of personal discretion and verbal opinion as 
targets for public criticism.* 

During the next month or two the Minister's time was chiefly 
devoted to this question and, to that extent of course, taken away 
from the important issues of recruiting, equipment and military 
administration which required attention. He, however, managed to 
do and say a good many things. On May 23 he reviewed 10,000 
Overseas troops at Toronto before their leaving to train at Niagara 
and a little later 4,000 school Cadets; on June 8 he presented 
Colours at Ottawa to the 77th Battalion ; on the 5th Lieut.-Col. H. 
W. Laird (Regina), who had just returned from Flanders and 
England, told the press that "the Canadian soldier is the best- 
clothed and equipped arid most regularly fed soldier in the world. 
He gets everything he can reasonably desire, and his personal 
comfort is very closely looked after by his officers." The Minis- 
ter's tribute to Lord Kitchener's memory at this time (June 7) 
was an eloquent one: "He has been a great asset to the British 
Empire, a worthy example of patriotic statesmanship, an inspira- 
tion to the youth and mature manhood in all lands, and in this 
great struggle for human liberty a stay, a balance, a steadier of 
public opinion, as well as a source of confidence to the brave sol- 
diers of the Empire." 

It was followed by one of those curious incidents which so 
stamped Sir Sam Hughes' characteristics upon public life. " 'The 
last time I saw Kitchener,' said the Minister on June 9 to the 
Ottawa Journal, 'I strongly urged that the Ypres salient be aban- 
doned. I pointed out that it was being held more out of senti- 
mental than military considerations. I told him how losses among 
British troops holding this bloody angle had been 100 per cent. 
Kitchener was deeply affected by what I said. He told me to give 
him my proposition in writing, that he would communicate with 
Gen. Sir Douglas Haig, the British Commander-in-Chief. Next 
day, however, I received a cable informing me of the charges made 
against me in Parliament. There was nothing for me to do but to 
come home and face my accusers ; the question of holding the Ypres 
salient remained in abeyance and our boys were left to hold a 
position that was almost untenable.' ' The publication of this 

*NOTK. See Sub-Section relating to Munitions. 


interview evoked an official statement from Sir Robert Borden 
approved by Gen. W. G. Gwatkin, Chief of Staff for Canada, that 
"in view of the heavy losses sustained during the past two weeks 
by the Canadian forces in defending the position known as the 
Ypres salient, inquiry has been made of the British General Staff, 
and information has been obtained that the position is an important 
one, and that notwithstanding the serious losses incurred, it is 
thought necessary to defend it. ' ' Following this the press on June 
14 published a letter written by Sir Sam Hughes to Lord Kitchener 
on Mar. 24 before leaving London, as follows : 

Dear Lord Kitchener: Since leaving you I have met a number of Canadian 
officers who have been discussing the Ypres salient which our Canadian boys 
are now going up to hold. They have been drawing plans of it for me, and 
show that it is practically new territory. There are no proper trenches or 
protections; a complete new defence line will have to be made. They main- 
tain, also, that they will be under fire practically on two sides, or in fact, three 
sides most of the time, and that as the town of Ypres is no longer fit for 
habitation the new lines should be straightened, the British locating them from 
new positions, taking in Ypres, leaving the enemy the worst possible ground. 
They point out, too, that in building their new trenches, if the present lines 
are followed, it must be 'done practically in the open and under fire, and will 
entail great and unnecessary sacrifice. I do not know whether or not your 
attention has been drawn to this fact, but there can be no harm in making a 
suggestion. I presume, however, the whole matter rests with our mutual 
friend, Sir Douglas Haig. Hoping you will kindly giA 7 e this matter considera- 
tion or submit it to Sir Douglas Haig for consideration. Faithfully, (Signed) 
Sam Hughes. 

A storm of censure and criticism followed in a large part of 
the press on the ground of interference with the policy of the com- 
bined Staffs of the British and French Armies who had to deal 
with issues in which a salient was only one spoke in a vast wheel; 
because this particular one was the vital gateway to Calais, to the 
safety of the French coast and of England; because the Minister 
was said to be hurting recruiting and prejudicing public sentiment 
in an injurious way. The Journal (Cons.), however, claimed that 
only a portion of the Ypres salient was affected; the Ottawa Free 
Press (Lib.) supported the Minister as did the London Free Press 
which was the only prominent Conservative paper doing so. J. L. 
Garvin, British editor and War critic (though not a responsible 
Minister) took the same view as Sir Sam, while Douglas Newton 
in his book, The Undying Story, said of Ypres: "It stands on a 
ganglion of roads and railways, that command the entire tract of 
this countryside. Take Ypres and the battle was won. Take 
Ypres and the roads to Calais and the coasts were open." 

In the Commons on May 1st the Prime Minister gave an ela- 
borate analysis of the war- work of the Militia Department with- 
out, however, any special reference to the Minister. He stated that 
the expenditures of the Department in the 13 months ending Apr. 
30 had been $146,679,117 or more than the pre-war annual mili- 
tary expenditure of the British Government and pointed out the 
varied and responsible nature of the work carried on including 
Military Operations, Training and Staff Duties, Musketry, Signal- 
ling, Mobilization, Recruiting, Supplies and Transport, Discharge 


depots for returned soldiers, Medical Services and Corps, Dental 
Corps, Ordnance and Artillery, Military Hospitals, Military Schools 
of Instruction, Finance, Hygiene, military stores, Engineers small- 
arms and munitions and the Dominion Arsenal. "It is almost 
impossible for Hon. members who have not been brought closely 
in touch with the activities of the Department, to realize the 
enormous burdens of responsibility and of the work which have 
been undertaken by the officers of the Department." Of those 
whose work and duties were specifically mentioned the following 
may be recorded : 

Surgeon-Gen. Eugene Fiset, C.M.G., D.S.O. Brig.-Gen. H. M. Elliot. 

Maj.-Gen. W. G. Gwatkin, C.B. J. W. Borden. 

Maj.-Gen. D. A. Macdonald, C.M.G., I.S.O. Major G. C. W. Gordon-Hall, D.S.O. 

Brig.-Gen. V. A. S. Williams. Lieut.-Col. H. Kemmis-Betty, D.S.O. 

Maj.-Gen. W. E. Hodgins. Col. R. A. Helmer. 

Major E. F. Davis. Lieut.-Col. F. A. Lister, D.S.O. 

Lieut.-Col. C. S. Maclnnes. Lieut.-Col. A. Z. Palmer. 

Col. J. S. Dunbar. Col. J. L. Potter. 

Col. R. J. Gwynne. Col. J. Lyons Biggar. 

Surgeon-Gen. G. Carleton Jones. Lieut.-Col. W. Hallick. 

Col. J. F. Macdonald. Brig.-Gen. G. S. Maunsell. 

On June 11 the Minister was at Quebec where he inspected 
20,000 troops at Valcartier and had an audience with Cardinal 
Begin as to recruiting in the Province, regarding the selection of 
Catholic chaplains for the troops, and as to a supply of French 
Canadian officers for training. Following this he reviewed and 
inspected the troops in the Maritime Provinces. The St. John 
review (June 13) was one of the most elaborate in Provincial his- 
tory and to the assembled officers afterwards the Minister said: 
' ' So long as I am Minister of Militia no officer will ever be put in 
charge of human lives unless he is efficient and capable of leading 
the men in battle. I would sooner send an empty sack at the head 
of Canadian troops than an officer who is not capable in every 
respect to take charge of his men. For I value the life of the most 
unimportant soldier as highly as I do that of any officer. " So in a 
speech at Aldershot, N.S., on the following day. He was at the 
Niagara Camp inspecting 12,000 troops on the 21st and on the 
22nd, in reviewing about 11,000 troops at London, another and 
minor incident occurred which brought the Minister much cri- 
ticism. The exact words were not given in the local press but the 
London Advertiser, a Liberal paper, declared that Sir Sam called 
the officers together and "severely criticized some of the higher 
officers in the presence of their juniors." The result was much 
outside censure based upon rumours as to what actually was said 
and The Advertiser's description of the alleged utterance as "a 
wholesale and ruthless condemnation of the staff." As this fol- 
followed upon the announcement that the London Camp would not 
be so large as expected after a local expenditure of $100.000 
owing to the construction of Camp Borden, there was, no doubt, 
real feeling at the back of it. On the 25th the Minister was at 
Winnipeg and a little later at Camp Hughes inspecting 22,000 
troops in training. 

On July 15 the corner-stone of the new Dominion Arsenal, 
under construction at Lindsay the county capital of the Minis- 


ter's constituency was laid by General Hughes. In his speech 
he described the town as admirably suited for the location of the 
work. "We have one Arsenal of this kind already in Quebec, 
but in these days of submarines it would be very easy for an 
enemy to come up the river and reduce it, and our boys would be 
without supplies of ammunition. Again, in case of an invasion 
from the United States, Quebec might easily be cut off from Ontario 
and the rest of the Dominion. And, with all due regard to the Pro- 
vince of Quebec, in this great war, it has not done its duty as it 
should and would if the young manhood of the Province had been 
taken in hand by the proper people, who have benefitted so much 
from British institutions in days gone by." He gloried in the 
fact that 4,000 soldiers had been raised in this district. In saying 
farewell to Kitchener's Own Battalion of Montreal on July 17 
the Minister stated that they would go as a unit and himself re- 
ceived high praise from Geo. E. Drummond for "an untiring 
energy and great capacity which raised, equipped and trained the 
Army of Canada so effectively in time of danger and will live in the 
history of his country and in the hearts of his fellow-countrymen." 
Meanwhile Camp Borden had been established, organized and 
utilized amidst some natural difficulties, much hostile press criticism 
and with distinct hardships endured at first by the soldiers. It 
would appear that the Minister's idea was to have a great camp in 
Ontario to match Valcartier at Quebec and Hughes in Manitoba. 
This new one was located on the Pine Plains near Barrie and 
occupied about 24 square miles of a sand-plain well watered by 
two rivers. In its new state the troops who began to pour into the 
Camp early in July had to suffer much from sand-storms and 
though, as the weeks passed by, every possible comfort was pro- 
vided for the men and much construction and improvement work 
carried on, yet there was considerable discomfort and a severe out- 
side criticism of the Minister and the Camp which found an expres- 
sion in the alliterative description of a visitor E. B. Bees, M.P., 
of Melbourne, Australia who characterized the Camp as "a place 
of sand, sin and sorrow." To this the Canadian Military Gazette 
responded by saying that Salisbury Plain must, therefore, have 
been a place of ' ' mud, misery and madness ! ' ' Within a short time 
there were 30,000 men gathered together and, on July 10, after 
marching for hours in scorching sun and dust before Ma j. -Gen. W. 
A. Logic, a riotous demonstration was precipitated on the appear- 
ance of the Minister of Militia in the evening. It was apparently 
led by some London Regiments who were discontented over their 
removal from Camp Carling and was not serious in its effect. The 
situation itself was chiefly due to parade conditions as the water 
supply of the Camp then was excellent, the sewage system good, 
the electric light system splendid; the roads were being steadily 
paved and the transportation facilities were easy. Later on, a lot 
of grass sprang up and the September rains did not bring mud as 
many expected. It may be added that the construction of this 
Camp, with the matters mentioned above, with its complete water- 


works system, construction of many buildings, establishment of 
rifle ranges and armament features, the cutting of trees, clearing 
of ground, removal of stumps, had been under control of Colonel 
R. S. Low and his Construction Battalion. By the end of July 
32,000 men or 35 Overseas Battalions were in training an average 
of 914 officers and men. The Camp closed at the end of October 
with a great route march through Ontario. It may be added that 
the Brigade Commanders were as follows with certain specified 
changes owing to the departure of troops : 

1st Brigade Colonel W. C. Macdonald 6th Brigade Lieut.-Col. Percy Domville 

2nd " Colonel J. A. Currie 6th 


Lieut.-Col. E. S. Wigle 7th 

F. Howard 7th 

Wm. Hendrie 8th 

Vaux Chadwick 8th 

J. I. McLaren 
W. H. Bruce 

E. S. Wigle 

F. Howard 

G. C. Koyce 
B. Bobaon 

B. H. Belson 9th 

On July 30 General Hughes was again in England with F. B. 
McCurdy, M.P. who on July 17 had been appointed by the Prime 
Minister as Parliamentary Under- Secretary for the Militia Depart- 
ment acting in his place. Mr. McCurdy was a Halifax banker and 
financier who in 1911 had defeated the Hon. W. S. Fielding, then 
Minister of Finance in the Laurier Government. Sir Sam was 
received with various press tributes the Daily Mail describing 
him as "having done for Canada what Carnot did for revolution- 
ary France, in transforming in a few months a feeble militia into 
one of the great fighting forces of the world." The London Post, 
however, urged him to see to it that there was no favouritism or 
political influence in the Canadian Army. The times were too 
serious for that. On Aug. 4 he reviewed the Canadian forces at 
Shorncliffe and at Bramshott on the 7th, accompanied by Mr. Lloyd 
George, Secretary for War. During this visit the press gave the 
Minister much publicity and he was generously entertained by 
prominent people. To Reynold's Newspaper, on Aug. 13, he de- 
clared that England would get the 500,000 men promised by Can- 
ada. On the 17th he crossed to France, accompanied by Gen. 
Lord Brooke, Sir Max Aitken and Lord Rothermere ; was permitted 
to inspect much of the British front during a week's stay and was 
received at Paris by President Poincare. On his return and just 
before leaving for Canada, General Hughes gave a Dinner 
to the Secretaries of War and the Colonies and took occasion 
to pay ' ' a tribute to the invariable, thoughtful and kindly considera- 
tion shown to all the Canadian commands by officials of the War 
Office." The Minister arrived at Halifax on Oct. 5, accompanied 
by the announcement made so important in after correspondence 
with the Prime Minister that he had appointed an Acting Over- 
seas Militia Council. It also appeared that the King, upon recom- 
mendation of the Army Council, had made him an Hon. Lieut- 
General in the British Army. In an interview he stated that cer- 
tain reforms had been effected in the Canadian system in England 
and also improvements in training; that he had had many confer- 
ences with the War Office, Ministers and Commanders. He added 
that * ' plans have been perfected to extend the use of Canadian fish 


as rations for our men. This has given great satisfaction. Not 
only do the men desire the ration of Canadian fish, but the use of 
fish for one day per week for the Canadian force has saved Can- 
ada already, approximately, $750,000. ' ' 

General Hughes returned to find much of his old-time work 
distributed amongst others; much of the erstwhile bustle of his 
Department, with its scenes of intense activity and endless streams 
of callers, modified. Mr. McCurdy had most of the routine work 
of the Department in his hands; J. W. Flavelle was in charge of 
Shells and Munitions; Mr. Kemp and his Purchasing Committee 
had the War contracts and expenditures largely in hand; the 
National Service Commission, under R. B. Bennett, took up another 
branch of military work and organization; the Premier, within a 
brief period, was to appoint an Overseas Minister of Militia with 
full charge of matters touching the troops in England and at the 
Front. The Minister on Nov. 6-12 paid his last official visit to 
Toronto and said some things which were characteristic, received 
his usual share of criticism with one tribute which also should be 
recorded that of Dr. Charles Sheard at a Conservative meeting 
on the 6th, when he said : ' ' I have no patience with men who sneer 
at a great man who has gone up and down the country like a living 
dynamo stirring enthusiasm everywhere." Lieut. -Col. P. A. 
Guthrie, just back from the Front, declared that "there are too 
many people knocking Sir Sam Hughes ; too many people who have 
done nothing else but knock. Where would Canada have been to- 
day if it had not been for the present Minister of Militia ? Canada, 
like England, is too slothful in the times of peace." At a dinner 
given the Edmonton Highlanders on the 8th the Minister pointed 
out the difficulties of organization in England: 

You officers must go to Europe and take your chance whether you go into 
the battle line intact as a unit or not. We will do our best, but the Divisions 
must be properly organized. We were just completing the organization of the 
4th Canadian Division when the Zillebeke affair happened, and that Division 
melted aAvay. We then moved to the Somme, and some hard fighting used up 
our newly-formed 5th Division, so you will see the difficulties presented in the 
efforts to send complete units to the Front. 

To a Methodist gathering held in one of the churches on the 
9th in honour of 6,036 Toronto Methodists on active service Sir 
Sam declared that despite the present shortage in recruits he had 
no fear of results. "It needs more education," said he, "and we 
will get the extra 100,000 needed. Canada has always risen to 
the occasion, so have no fear. But if by next spring we have not 
got them, and we have to consider Conscription, then the districts 
which have given their fair quota will be exempted from such an 
order, so far as I am concerned. ' ' Then came one of those speeches 
which could not help but arouse controversy and dissatisfaction. 
It was delivered before the Empire Club at noon of the very day 
on which the afterwards published correspondence showed that 
the Premier had written asking for the Minister's resignation 
though there was nothing to show any connection between the two 


events. He commenced this remarkable speech* by reference to 
the $50,000,000 supposed to have been expended by Germany in 
the early stages of the War in promoting trouble and discontent in 
Allied countries, and declared that men in German pay still were 
circulating rumours and hindering enlistment in Canada and rais- 
ing trouble in the United States. He dealt with matters upon 
which no real discussion was possible during war-time and no facts 
available for judgment aside from his own personal statements: 
''For the first year of the War Canada had practically no control 
of her forces Overseas. The administration, the promotion, the 
command, were all managed by the chief divisional officer com- 
manding an Imperial officer. Our transport, our rifles, our 
trucks, our harness, our saddles, our equipment, our shovels, our 
boots, our clothing, our waggons; those were all set aside and in 
many cases I say it advisedly, and I say it on my own responsibil- 
ity, as I am saying everything else here to-day- in many instances 
they were supplanted by inferior articles. ' ' 

He then referred to an alleged control of their own troops in 
the matter of appointments, promotions and commands by the 
German countries of Bavaria, Saxony, Baden, etc., and declared 
that Canada had not in the earlier stages been given the same 
privileges. He had insisted upon Autonomy and Canadian control. 
"Therefore, our saddles were pulled out of the mud; our harness 
was scraped up ; and article after article, department after depart- 
ment, was gone through, and to-day our stuff is used at the Front, 
by both Canadians and British in some parts, and is regarded as 
better than any other outfit there." The next point was that Can- 
ada had from the first taken the stand that promotion should be 
by merit alone; no particular comparison being made as British 
officers in the first year or two were plentiful and later were freely 
drawn from the ranks. He then referred to the wounded amongst 
whom in .the first stages there could be no distinction as between 
French or British or Canadian, and went on: "When the con- 
valescent period comes we have had men who were absolutely past 
the hospital period, who had lost weeks and months, and some of 
them a year of time, when they should have been back to the regi- 
ment, but who were spending their time at hospitals not under our 
control. ' ' 

Then the change was made and they were looked after by Can- 
adian doctors and nurses. "We made this change, and we restored 
50 and 60 per cent, to the firing line within a given period, instead 
of 15 per cent., and the men are better attended to, and we have 
spent in 12 months $6,000,000 on this transaction." Such an 
address from a Minister of the Crown was bound to arouse con- 
troversy. He was said to have alligned Canada against England 
in certain matters and to have censured English hospitals and 
in directly .British medical men and nurses. A brief cable report to 
England aroused some criticism there and a natural defence of 

*NOTE. Verbatim report printed by the Toronto Telegram of NOT. 14 from the 
Empire Club stenographic notes. 



home institutions in which the one recognized policy was the giv- 
ing of most generous hospitality to wounded men from the Domin- 
ions. As to the Military matters dealt with no one but the Govern- 
ments of Canada and Britain could speak authoritatively. On Nov. 
14 it was officially announced from Ottawa that the resignation 
of the Minister had been asked for and given to the Premier. The 
correspondence between him and Sir Robert Borden was too lengthy 
to give in full.* It may be summarized as follows : 

The Prime Minister Sir Sam Hughes 

Oct. 18: Appointment of Minister of Oct. 23: Took issue as to need of 

Overseas military forces would lead 

to more efficient organization in 


Oct. 26: Could not concur in Sir 
Sam's views, and announced pro- 
posal would be discussed in Council. 

Oct. 26: Office must be established 
first and appointment made after- 


Oct. 31 : Expressed surprise at hearing 
of appointment of Council in Lon- 
don in light of cable instructing 
Sir Sam to submit his proposals for 
consideration. Eeferred to Sir 
Sam's recall from England as a 

Nov. 9: Eesignation requested. 

more efficient organization and de- 
clared there was no reason for such 
an appointment. 

Oct. 26: Proposed Sir Max Aitken to 
supervise Canadian military inter- 
ests in England. 

Oct. 26: "My idea is man instead of 
an office." 

Oct. 30: Stated that Canadian High 
Commissioner dominated during first 
year of war. Had just formed con- 
sultative Sub -Militia Council. 

Nov. 1: Eeferred to absurdities in 
other "lovely" Commissions ap- 

. pointed by Government. Accused 
Premier of making inaccurate state- 

Nov. 11: Eesignation tendered "with 

There were one or two statements in the correspondence which 
may be quoted. The first (Oct. 23) was General Hughes' whole- 
sale criticism of British methods as used by the Acting High 
Commissioner when defending his own administration of affairs 
in England: "For the first ten months our suggestions were prac- 
tically ignored, our equipment, stores, supplies, armament, every- 
thing provided by us was set aside. The Pay Department was found 
to be absolutely chaotic ; the Medical service, modelled on the Brit- 
ish, lacked system, efficiency, and comprehensiveness." A resi- 
dent Minister in England was characterized as absurd and the 
position of Sir Max Aitken was thus described: "As an inter- 
mediary in all diplomatic relations concerning our military force 
in Britain and at the Front, we secured the services of one of the 
ablest diplomats, namely, Sir Max Aitken/' The letter of Oct. 26 
indicated that Sir Sam would accept the new arrangements if Sir 
Max Aitken were appointed as Canadian war representative, and 
the position made subordinate to himself, with Sir George Perley 
retaining control of contracts and purchases. He objected strongly 
(Oct. 30) to the V. A. D. Hospitals. 

The Canadian press gave the retiring Minister of Militia full 
credit for what he had done and much criticism for things he had 
said; there was a tendency to regard the retirement as inevitable 
and the Winnipeg Telegram (Cons.) applied the interesting phrase 

*NOTK. For the Premier's attitude Bee preceding Section. 


" weird incompatibility of temperament" to describe the personal 
equation. The Hamilton Spectator, (Cons.) expressed this view: 
''Fortunate indeed was Canada in her Minister of Militia at the 
outbreak of the War. With all his faults, which were mostly vir- 
tues carried to excess, Sir Sam Hughes was the one man for the 
place at the time. His tremendous power of initiative and his 
amazing industry were needed. The herculean work he accom- 
plished, all are now ready to acknowledge. But we have come to 
comparatively quiet times. With the temperament of a military 
dictator he cannot brook the restraints whereby responsible Minis- 
ters must ever be curbed." The retiring Minister made a farewell 
speech to his staff on Nov. 15 and declared that ' ' interferences with 
and conditions imposed on the administration of this Department" 
had caused his action. 

Interviewed in Toronto, after a visit to Cobalt, by The Star 
(Dec. 15) General Hughes made the statement that " the re 
are enough men in England and France to-day to keep up six 
Divisions that is, 120,000 men or two Army Corps. Turner 
should have one corps and Currie the other." At Lindsay on 
Dec. 24 he addressed a recruiting meeting and supported the 
enforcement of the Militia Act and the calling out of single men for 
training. In a subsequent interview he said : " I firmly believe that 
Quebec Province, in common with all other parts of Canada, will 
loyally respond to the call to arms for universal training at once, 
and that compulsory Overseas service will follow as a matter of 
course. ' ' 

The Ross Rifle matter, in which Sir Sam Hughes took deep 
interest, is dealt with elsewhere and so is the Aviation movement in 
which he took no interest. Other incidents of the year in connection 
with his Department included the active work of Schools of In- 
struction for Officers at Quebec, Halifax, Kingston and other points 
afterwards settled upon in each Military District ; the appointment 
in January of Maj.-Gen. F. L. Lessard, C.B., a veteran of the South 
African War and Inspector-General of the Militia, against whom, 
it was believed, the Minister had some personal ill-feeling, to go 
Overseas "for the purpose of obtaining all the information and 
experience you may be able to gather, and which may benefit you 
as Inspector-General ' ' ; the statement of the Minister in Parlia- 
ment on Feb. 23 that "it is the intention of the Government to 
apply to the purchase of machine guns the money subscribed for 
that purpose, amounting to $661,272"; an Order issued in March 
prohibiting officers commanding units in the Canadian Expedi- 
tionary Force from attaching any more subalterns for instruction 
and duty; the statement in the House on Mar. 28 that the travel- 
ling expenses of Sir Sam Hughes since the outbreak of the War 
had been $15,586 ; instructions issued in the autumn that all mili- 
tary motor cars in Government service should in future have O.H. 
M.S. painted on them. 

In June the order forbidding Highland or Scottish Battalions 
wearing kilts was revised so that while the Department would not 


put the country to the extra expense of providing kilts instead of 
trousers for the Highland Battalions, if the units or private people 
were willing to make up the difference in cost, then the Battalions 
could have kilts ; in August soldiers not under orders for the Front 
were authorized to assist farmers in harvesting the crops and 
18,500 did so; at this time, also, Orders were issued authorizing 
all Magistrates to try deserters upon receiving the Service roll 
attestation paper of the accused ; on Aug. 17 the Department 
announced that parents of boys who had enlisted in the Expedition- 
ary Forces and appeared at the last moment to claim their offspring, 
would not be allowed to do so in the future. Another abuse was 
met, at this time, by an Order-in -Council which prohibited the 
unauthorized wearing of uniforms, medals, etc., under pain of 
penalties provided; while a great boon was granted soldiers from 
Camp Borden or other points travelling for a distance of 100 miles 
or more, in bodies of 350 or upwards, who were in future to be 
charged only at the rate of one cent per mile for their transporta- 
tion. Early in the year Sir Sam Hughes vigorously repudiated as 
a forgery a letter dated Oct. 27, 1899, and published in Beckles 
Willson's Life of Lord Strathcona, in which he was represented as 
having apologized to Gen. E. T. H. Hutton, C.B., when commanding 
the Canadian Militia, for certain remarks made at that time. He 
admitted and made public a letter dated Oct. 28 which included 
the words "my apology for giving way to temper and displaying 
an independent spirit. ' ' Following the Minister 's retirement it was 
announced that Gen. W. G. Gwatkin, whose approaching return to 
England had been stated some months before, would remain as 
Chief of Staff. 

The characteristics of General Hughes made bitter 
The shell Com- political attacks inevitable from time to time ; he did 
Si'rSanTiiughef tnni g s > but his manner of doing them, his unbounded 
The Making of ' confidence in himself and in those he entrusted with 
Munitions responsibility, made complications certain. The Shell 

Committee, created by the Minister, which had done 
much useful pioneer work in munition-making and of which Sir 
Sam was very proud as being his own child and its results in 
organization and production a credit to his military administration, 
was, also, a favourite object of Liberal attack from time to time. 
The $300,000,000 or so which it handled and the total contracts of 
$500,000,000 which it made up to the transfer of duties to the 
Imperial Munitions Board at the close of 1915 equalled years of 
the ordinary revenue of Canada and, as its later operations in 
days when everyone wanted to make Munitions as distinct from 
the earlier period when few were anxious to take the risks 
touched many interests and individuals there was bound to be some 
dissatisfaction and criticism. 

As in Canada almost everything has to go into the political 
cauldron, so at the beginning of 1916 the late Shell Committee 
composed of Col. Alex. Bertram, Col. D. Carnegie, Col. Thomas 
Cantley, G. W. Watts, J. W. Borden, E. Carnegie, Colonels 
T. Benson, Greville-Harston and F. D. Lafferty was in that 


unpleasant situation. The Hon. Wm. Pugsley (Lib.) in the Com- 
mons on Jan. 18, during the debate on the Address, stated that its 
actions had "produced scandals from which this country is reek- 
ing." His chief charges were (1) that large orders had been given 
to John Bertram & Sons and to other firms connected with mem- 
bers of the Committee, (2) that competitive tenders were not called 
for, (3) that $20,000,000 of orders had been placed in the United 
States at higher prices than the shells could have been made for 
in Canada, (4) that J. Wesley Allison, a friend of the Minister of 
Militia, a Canadian-New York financier and promoter, had been a 
go-between in various contracts to the great profit of himself and a 
group of American associates. Mr. Pugsley demanded "a full 
and complete investigation by a Committee of Parliament." A 
prompt reply to this speech came on the 19th from the Ottawa 
Free Press (Lib.) : 

The Dominion Shell Commission, appointed by General Sam Hughes 
within six weeks of the outbreak of war under the chairmanship of General 
Alex. Bertram, practical mechanic, manufacturer and soldier, established in 
Canada an entirely new industry that has brought to and distributed through- 
out the Dominion, hundreds of millions of dollars. Six weeks after the open- 
ing of the War, and six months before Britain compelled by her necessities 
decided to do the same thing Canada proceeded to organize its privately- 
owned industrial resources for the manufacture of the shells that General Sam 
Hughes correctly predicted would be demanded in appalling quantities. It 
was a tremendous task one for which there was no precedent, one which 
meant generally and largely a groping in the dark. It was a task for practical 
men, for captains of industry particularly connected with the metal trades, 
for those familiar with the manufactories of the country and their equipment, 
for tactful and essentially honest leaders. . . . Firms with which the 
Commissioners were connected were given orders at the outset because they 
were included among the few willing to try the experiment of making shells. 
Sir Alex. Bertram has denied that he had any but a nominal connection with 
John Bertram and Sons; comparatively high prices had to be fixed in order to 
tempt Canadian manufacturers into the new industry, and at that the total, 
we are assured, was $15,000,000 less than the amount allowed by the War Office ; 
often the date of delivery offset a lower offer in price; many Liberal firms 
have handled contracts from the Commission. 

This subject was the chief element in a number of succeeding 
speeches. The Hon. Arthur Meighen (Jan. 20) quoted from the 
Eeports of D. A. Thomas, M.P., and Lionel Hichens, the British 
Commissioners of 1915, in eulogy of the work and operations of 
the Committee and, as solicitor-General, was precise regarding its 
technical position : ' ' Upon being named by us at the request of 
the Imperial Government, they became an Imperial Government 
Committee, responsible to and answerable to the Government of 
this Empire. They conducted their business directly with the 
Imperial authorities. Communications passed from the Shell Com- 
mittee to the Imperial Government and from the Imperial Govern- 
ment to the Shell Committee. Had they been in a position where 
we had authority over them, had they been constituted as a Com- 
mittee under a Department of this Government, they would have 
been answerable to this Government ; we would have had authority 
over them and we would have been responsible." The Hon. J. D. 
Hazen dealt with contracts in New Brunswick, defended the Com- 


mittee in these respects and as to prices, and declared that ' ' the 
perfecting of the organization was a great work" which had to be 
got through quickly without a devotion to small details which 
would have caused dangerous delays; G. W. Kyte and other Lib- 
erals claimed that the Committee was purely a Canadian concern 
and the Dominion Government entirely responsible for its opera- 

On Jan. 25 F. B. Carvell, a Liberal leader from the Maritime 
Provinces, made one of his keen, slashing attacks upon the Gov- 
ernment and especially the Minister of Militia and the Shell Com- 
mittee. He contended that the Government was responsible for 
this organization because three of its members represented the A 
Department of Militia and called it "a political Committee of the |\[ ) 
Conservative party of Canada"; he charged that "there were * ^ 
dozens and dozens of big manufacturing establishments who wanted \\/ 
to do work for the Empire, who went to the Shell Committee and ^ 
demonstrated that they were in a position to do the work more 
expeditiously than anybody else, and who, because they did not 
have political influence, were unable to get an order, while millions 
of dollars' worth of work was given out to little mushroom com- 
panies, organized, operated and controlled by Conservative poli- 
ticians and voters all over Canada " ; he declared that the Govern- 
ment machine shops at Transcona, Quebec, Moncton, Sorel and 
Prescott should have been turned into Munition work and thus 
prevented private profiteering; he gave in detail the names and 
operations of a number of companies which made alleged undue 
profits "the Dominion Bridge Co., profits of $1,400,000 on con- 
tracts for 500,000 shells ; the Massey-Harris Co., profits of $400,000 
out of 100,000 shells; the Universal Tool & Steel Co., profits of 
$500,000 out of 120,000 shells." 

Mr. Carvell then attacked the Committee for not making fuses 
and for getting them done in the United States. l ' The Committee 
gave first an. order for 833,333 fuses to the American Ammunition 
Co., New York, at $4.50 each. Later on a second order for 1,666,666 
was given to the same Company at $4.00 each. The average price 
on the two contracts was $4.16/^ per fuse. About the same time the 
Committee gave an order to the International Arms & Fuse Co., 
New York, for 833,333 shells, and a second order for 1,666,666 and 
paid $4.50 on the whole transaction. These 2,500,000 fuses will, 
therefore, cost this country nearly a million dollars more than the 
2,500,000 bought from the American Ammunition Co." Mr. Car- 
veil then attacked the Davidson Commission in respect to phases 
of its Inquiry, the Minister of Agriculture in connection with a 
Hay contract in New Brunswick, and concluded by urging a Com- 
mittee of Inquiry. 

Following Mr. Pugsley's speech and this new onslaught there 
was wide public discussion ; the Liberal press, as a whole, demand- 
ing investigation and some Conservative papers taking the same 
ground. The Minister of Militia was not, directly, concerned in 
these charges as he had not actually controlled the Committee; 
but he had established it, was proud of its work and he assumed 


responsibility for some of the matters dealt with by Mr. Carvell 
when he rose to speak in the House on Jan. 26. Sir Sam Hughes 
first dealt with the question of buying Colt pistols and machine 
guns in the United States and the difficulty of getting them from a 
neutral nation ; here came in Hon. Colonel J. Wesley Allison. ' ' I 
secured the services of a life-long friend of mine, Col. J. W. Allison, 
a man in whom I have had life-long confidence, a man who is the 
soul of honour and kindness. . . . Col. Allison followed the 
matter up, and it was arranged with Washington." The Minister 
added that in Col. Allison's connection with business firms in the 
United States for various contracts of which Fuses were one he 
used and signed the following letter: 

I have been and am doing my very best to secure the lowest prices possible 
for the Government, and above all things wish to do whatever I can to aid 
them in procuring the best workmanship, lowest prices, and largest deliveries 
possible; and if you are bidding for the manufacture of this fuse for the 
Shell Committee or the Canadian Government, I want it distinctly understood 
that I do not want any profit added to the price under any conditions, with 
the intention of providing a commission for me, as I would not under any 
circumstances accept a commission of any kind from anybody, in connection 
with this matter. 

A record of the evolution and work of the Shell Committee 
followed with a description of preliminary difficulties in getting 
manufacturers to take it up, in getting capital for them to work 
with, in satisfying the War Office that the undertakings would be 
carried out, in changing spasmodic British orders to continuous 
ones, in changing production from empty shells to filled ones and 
then to fuses, etc., in obtaining steel in sufficient quantities. Prices 
and materials were dealt with comparatively although the Minister 
pointed out that neither he nor his Department interfered "in 
any shape, form or manner with the contracts or the prices." He 
added that the Committee had turned out in Canada 22,000,000 
shells which consumed 800,000,000 pounds of steel and proportion- 
ate quantities of copper, lead, cordite, powder, etc. The fuse mat- 
ter was not dealt with and minor issues were passed over. 

On Mar. 2, in discussing his estimates, the Minister dealt with 
the general subject and stated that up to Feb. 15, 1916, his Depart- 
ment had made over 15,000 contracts with an aggregate expendi- 
ture of $114,000,000 up to the time when these matters were 
handed over to the War Purchasing Commission. The difficulties 
met at the outset with United States firms which declined to under- 
take delivery to countries at war were met by the employment of 
Colonel Allison: "I had been associated, for 25 or 30 years, with 
Colonel J. Wesley Allison in various matters. But in 1909 and 
1910, we were concerned most intimately with the St. Lawrence 
Dam question. ... I found Colonel Allison on that occasion an 
absolutely disinterested and straightforward business man. That 
is why I chose him to act as my adviser, counsellor and guide in 
connection with the various matters that would come before us in 
connection with this War." Colonel Allison had refused any com- 
mission. "I know that he was advised to take a proper commission 


on purchases which he effected for France, Russia and Great Bri- 
tain, but on such work he has refused to accept more than 50 per 
cent, of what was offered him for his services by those countries." 
The Minister added this statement : * ' On tri-nitrotoluol, picric acid, 
copper, brass, zinc, ammunition of various kinds, Col. Allison 
undoubtedly saved upwards of $50,000,000 to Great Britain and 
Canada. Even when the British Government wanted a hundred 
rifles for testing purposes, they applied to Col. Allison for them." 
His total purchases for Canada were $5,814,056 and on these the 
ordinary commission would have been $1,609,564. 

On the 7th Sir Sam referred to the fuses question and the status 
of the Committee : ' ' In 1914 we took steps to have fuses manufac- 
tured in Canada. Every firm that anyone could even dream of as 
being likely to indulge in the manufacture of these commodities was 
approached, and not one firm in Canada could be induced by any 
offer of assistance to go into the manufacture of these fuses. Later 
on, an order came to the Shell Committee from the British Govern- 
ment for 4,000,000 fuses. I had nothing to do with this as I have 
had nothing to do with the Shell Committee other than to ask 
the same gentleman (Col. Allison) to make sure that the lowest 
possible prices were obtained." Meanwhile David Carnegie, a 
British expert and Chief Ordnance adviser to the Shell Committee 
and the new Imperial Munitions Board, had returned to Ottawa 
from a visit to England and on Feb. 25 gave out an interview in 
which he said : 

It has been a great surprise to all in the Old Country to observe the skill 
and ingenuity of the Canadian manufacturers, and to note particularly the 
harmony with which they have done their work. They were amazed at the 
growth of output in such a short period, and the excellent quality of the work 
produced. Earl Kitchener particularly wished me to convey to General Sir 
Sam Hughes his high appreciation of the work he had done in connection with 
the Shell Committee operations. . . . There is surprise in Britain that 
there should be any question regarding the prices paid for munitions in Can- 
ada. Those best able to judge are astonished at the volume of the product of 
the Canadian manufacture and the moderate prices, when everything is con- 
sidered. Many of the shells are being produced at lower prices than in the 
United Kingdom or the United States. The wonder is why there is any 
criticism in Canada concerning these shells when the people who are paying 
for them are so thoroughly well satisfied with what has been done, and with 
the product and the price. 

These speeches and charges in Parliament were largely prelimin- 
ary to the debate initiated on Mar. 7th by the motion of Sir Wil- 
frid Laurier, Opposition Leader, asking for a Special Committee 
of the House to inquire into all contracts made or orders given by 
the Shell Committee. He reviewed the situation briefly and quoted 
a speech of Lord Curzon (June 23, 1915) stating that "in Canada 
the system adopted by the War Office has been this: They have 
made their orders from an early date, through the Canadian Gov- 
ernment, treating the Canadian Government, in fact, as their 
agents for the supply of munitions of war. Any requirements 
from the War Office here are communicated by letter or telegram 
to the Minister of Militia there. This officer constituted quite early 
in the day the Shells Committee . . . and the function of the 


Committee is to advise the Minister as to the contracts which, on 
behalf of the Imperial Government, he shall conclude." Sir 
Robert Borden replied at length to this speech. He began by 
declaring that the only basis for the Opposition Leader's motion 
was in casual newspaper statements and reviewed the work of the 
Shell Committee which had succeeded in placing in Canada * ' orders 
amounting to $150,000,000 or $160,000,000, at prices considerably 
lower than the War Office in Great Britain were willing to approve 
and to pay. As a result of this not less than $15,000,000 was saved 
to the British Government. The business had developed to such an 
extent that orders to the amount of $400,000,000 and upwards had 
already been given." 

He estimated that this business would add in labour and mater- 
ial at least $300,000,000 to the National wealth ; of the total $100,- 
000,000 worth of munitions had been exported and paid for. The 
men employed at date were 136,000 and the factories numbered 
436, while several permanent new industries had been established, 
such as the production of zinc and spelter, the manufacture of 
brass, nitro- cellulose powder, sabulite, toluene and tri-nitro-toluene. 
As to prices the Premier was explicit: ''Our prices at first for 18- 
poiind shrapnel, with which we began in Canada, were slightly 
higher than the prices in Great Britain and slightly lower than 
those in the United States. . . . Upon information given to me 
from the highest authoritative quarter I assert that in respect of 
all other shells produced in Canada such as 18-pound high ex- 
plosives, 4 -5 inch and all other large shells, the production of 
which we began last summer, the prices in Canada have been, on 
the whole, lower than in either of the other two countries men- 
tioned. In 90 per cent, of the cases the prices in Canada have been 
at least as low as those paid by the British Government in any 
other part of the world. I also affirm, from equally authoritative 
information, that while here, as in Great Britain, the deliveries 
have not been up to what was anticipated, nevertheless they are at 
the present time very good indeed, and I am confident they will 
compare favourably with those made in the United States." The 
conclusion was that the Government would inform the British 
authorities of these charges against the Commission and would co- 
operate in any inquiry they might make : ' ' But without their con- 
sent, or approval, we do not propose to enter upon an investigation 
or inquire into such expenditures by the British Government, 
especially as such an inquiry could not fail to interfere very ser- 
iously with the work carried on by the Imperial Munitions Board." 
At the same time "if Sir Wilfrid Laurier or any of his followers 
has a charge to make against any member of the Government with 
respect to the Shell Committee or with respect to anything else, 
let him or his follower stand up in his place, and on his respons- 
ibility as a member, make that charge, and it will be investigated 
thoroughly and completely." 

Then came another and more detailed and even more slashing 
attack by F, B, Garvell. He asserted that shell prices were higher 


in Canada and not lower than in Britain or the United States ; that 
deliveries were still slow and with not more than one-third of the 
orders delivered on time; that ''the Shell Committee had squand- 
ered, not by the thousands or hundreds of thousands, but by the 
million, in taking big contracts to themselves and then were com- 
pelled to give contracts to many other people at the same exorbitant 
prices ' ' ; that all kinds of delays had occurred in the fuse contracts 
in order ''that Colonel Allison might be able to get together his 
combinations and his sub-contractors, to arrange where the con- 
tracts were to go, to arrange the sub-contracts by which the shells 
were to be manufactured and to provide for his share of the profits 
of the transaction in the end"; that the great plants of the Can- 
adian General Electric and the Dominion Steel Corporation had 
been ignored in the giving of orders, while the N. S. Coal & Steel 
had received $15,000,000 worth. Mr. Carvell then went into details 
of a large number of contracts in order to prove either favouritism 
or irregularities in price. His chief charge, however, was a revival 
of the one previously asserted and now elaborated in details. 
"This Shell Committee gave a contract in the United States for 
1,666,666 of these (graze) fuses, not at $1.95 each as in Britain, 
not at $2.26, the same as was paid for the same article just one year 
before, but. at $4; that is they paid $3,000,000 more than these 
fuses could have been bought for in England at that time." The 
speaker went on to claim that the American firms in question had 
never made a fuse, that $3,000,000 was advanced to enable them to 
get operations started, that no fuses had yet been delivered, that 
later on the Russell Motor Co., Toronto, had taken a contract at 
$3.50 per fuse or less than the United States crowd received, that 
the latter had "simply sublet the contracts to the friends and 
confreres of J. Wesley Allison." He charged Sir Sam Hughes 
with personal interference in the Committee's contracts and read 
a letter re the Universal Tool Steel Co., Toronto, which seemed to 
prove his point; quoted various British Committees of Inquiry in 
War times as precedents for the present and denounced the Minis- 
ter of Militia for going to England at this juncture. During the 
next few days R. B. Bennett (Con.), Hon. Wm. Pugsley (Lib.) 
and others spoke at length on the issue. The latter (Mar. 14) sum- 
med up his charges as follows : 

I, William Pugsley, on my responsibility as a member of this House, 
declare and charge (1) that the Shell Committee, appointed by the Minister of 
Militia, fixed excessive and unreasonable prices for shells and for other muni- 
tions and goods to be furnished to the British Government; (2) that such 
prices were fixed without competition and were far in excess of what would 
necessarily have been paid if ordinary business methods had been pursued, 
thereby involving an unnecessary excessive expenditure conservatively estimated 
at $80,000,000; (3) that said Committee gave large orders at such excessive 
prices and without competition to Companies in which members of the Com- 
mittee were largely interested; (4) that there has been great and wholly 
unnecessary delay in furnishing the completed shells for use of the Canadian 
and British forces at the Front; (5) that the said Shell Committee neglected 
and delayed for an undue period of time to provide the fuses necessary to 
render the shells effective, and, failing to endeavour to provide for their con- 


struetion in Canada, as they might have done, proceeded to give and award, 
through J. Wesley Allison in the United States, contracts for fuses amounting 
to $22,000,000, on which they made an advance of $3,750,000; (6) that the 
making of the said contracts through said Allison was unwise and improvident 
and was entered into with the knowledge and connivance of the Minister of 
Militia, and the said Shell Committee failed to obtain delivery of said fuses 
for an unreasonable time; (7) that the Government of Canada had, through 
the Minister of Militia, to whom the said Shell Committee reported weekly, 
knowledge of such irregular and improper methods and acts of the said Shell 

Hon. Mr. Meighen replied and contended that these allegations 
involved nothing except, perhaps, an error of judgment no spe- 
cific charge of wrong-doing. He went into various statements in 
detail and showed many alleged errors in the speeches and figures 
of his opponents. F. F. Pardee (lab.) spoke on Mar. 28 and was 
followed by G. W. Kyte who reiterated and enlarged the Carvel! - 
Pugsley charges. He read the original contract (June 19, 1915) 
with the American Ammunition Co. (E. B. Cadwell, President), 
attested by the Shell Committee and ratified and confirmed by the 
Minister of Militia "in accordance with authority duly conferred 
upon me by His Britannic Majesty 's Government ' ' ; that with the 
International Fuse Co., New York, was exactly similar. The fol- 
lowing details were stated: "The amount advanced upon contract 
to the American Ammunition Co. at the time of execution was 
$1,041,600; within four months afterwards they got a further 
advance of 5 per cent., making a total advance of $1,565,400. The 
contract of the International Fuse Co. was for 2,500,000 time 
fuses at $4.50 each, amounting to $11,252,000. The amount ad- 
vanced was 10 per cent., epual to $1,125,000. Within four months 
another 5 per cent, was advanced, amounting to $562,500, making 
a total advance of $1,687,500. The minimum capitalization of the 
one Company was $3,000 and of the other $1,000." Mr. Kyte then 
produced a subsidiary agreement alleged to have been signed on 
June 10, 1915, before the above official contract, between B. F. 
Yoakum and E. B. Cadwell of New York and E. W. Bassick of 
Bridgeport, Conn., declaring that these three men were "entitled 
to receive as their total and aggregate commission for negotiating 
and effecting said contract the sum of $1,000,000 in the whole, 
being at the rate of 40 cents per fuse." Details followed as to the 
proportions which each man was to receive and another agreement, 
signed by the American Ammunition Co., undertook to pay over 
the money when received. It was further stated that an additional 
agreement in September, 1915, between J. Wesley Allison, of 
Canada, Eugene Lignanti and Benjamin F. Yoakum of New York 
agreed that Yoakum was to divide his portion of the above com- 
mission ($475,000) with Allison and Lignanti. Mr. Kyte speci- 
fied several other concerns and contracts in which these men were 
to divide commissions but they were not all Shell Committee con- 

Sir Thomas White replied to this speech. He stated that many 
of the large orders given the N. S. Steel & Coal Co. were for steel 
and not shells; that the Dominion Steel Corporation did get over 


$5,000,000 worth of orders for shells and the Canadian General 
Electric Co. $10,000,000; that some of the orders alleged to be 
given by the Shell Committee for political purposes were given after 
that Committee went out of existence ; that the Government of 
Canada had not paid one cent commission upon the purchases of 
Colt revolvers and had paid the same price as any other Govern- 
ment outside of that of the United States, which had special terms ; 
that he, for one, had never before heard of Lignanti and Yoakuni 
or ever seen Allison and so with most of the members of the Gov- 
ernment; that such an inquiry as the Opposition Leader asked 
would include "all confidential communications by cable or other- 
wise passing between the War Office and the Shell Committee and 
would reveal to friends and foes alike, the extent of the orders 
which had been placed in Canada, the resources of Canada, the 
present condition of all contracts placed by the Shell Committee 
in Canada." He pointed out that the Shell Committee had not 
spent one dollar of Canadian money in the $500,000,000 worth of 
contracts which it gave out, claimed that the usual procedure of 
the Shell Committee was to have its prices approved by the War 
Office before placing the orders, and declared that no charge had 
been made affecting the honour or integrity of any member of the 
Committee or the Government. The Minister gave an interesting 
explanation as to why the large orders to Canada were not still 
larger. ' ' Great Britain, in order to place the $500,000,000 worth 
of orders she has placed in Canada, was obliged in many instances 
to buy exchange in America at a cost of from three to five per 
cent, and in other cases she was obliged to ship gold to this country 
in ordfer to pay for the munitions ordered through the Shell Com- 
mittee. ' ' After a vigorous defence of the Government 's attitude in 
declining an investigation without the British Government's ap- 
proval, or a direct charge against a member of the Government, 
Sir Thomas moved the adjournment of the debate. 

The political situation had, meanwhile, become tense, the charges 
made were many and the speeches of Messrs. Pugsley, Carvell and 
Kyte had not lacked in forceful bitterness, while the Public 
Accounts Committee had on Mar. 15, seen a large sheaf of tele- 
grams passing between Allison and others as to contracts in the 
earlier stages of the War. As far back as January there had been 
vigorous demands for investigation from The Globe and even from 
some Conservative journals such as the Montreal Star and the 
former talked of "high finance bandits," of blunders worse than 
crimes and (Mar. 11) asked "if behind the blunderers the Minis- 
ter of Militia is found moving the puppets under the hypnotic 
influence of his friend, Col. Wesley Allison." The Hon. Andrew 
Broder, a veteran supporter of the Government, now openly de- 
clared for an Inquiry and the Ottawa Journal (Cons.) stated that 
20 Conservative Members also were in favour of it. Sir Robert 
Borden dealt firmly and promptly with the situation. 

Following the unfinished speech of his Minister of Finance he 
cabled Sir Sam Hughes (Mar. 29) stating the charges and con- 


eluding as follows: "I propose issuing Royal Commission forth- 
with to investigate fuse and cartridge case contracts and it is 
necessary that you return immediately for purpose of Inquiry." 
Sir Sam replied on the 30th : ' * Please state to House on my behalf 
that I have no improper connection with contracts referred to, or 
any other contracts. If any suggestion to the contrary is made I 
respectfully demand full investigation by the judicial tribunal 
presided over by Sir Charles Davidson. I shall sail first available 
boat." To Sir George Perley, at the same time, the Premier had 
cabled: "The Minister's relation to Allison as described by himself 
in Parliament is so close that, although the expenditure is by the 
British Government, and although such inquiries are unusual dur- 
ing progress of War, I feel it my duty to have Royal Commission 
issued forthwith. Please inform Colonial Secretary." On 
Apr. 3 the Premier tabled an Order-in-Council appointing a Royal 
Commission composed of Sir W. R. Meredith, Chief Justice of 
Ontario and Hon. L. P. Duff, Justice of the Supreme Court of 
Canada, ' * to make full and complete inquiry ' ' into certain specified 
contracts made by the Shell Committee those of the International 
Arms, American Ammunition, Edwards Valve and Providence 
Chemical Companies and 

Into the acts and proceedings of the Shell Committee, whether by them- 
selves or by any other person or persons, directly or indirectly, and of the 
Minister of Militia and Defence whether by himself or by any other person or 
persons, directly or indirectly, in relation thereto or in connection therewith 
and into the negotiations therefor, the profits or prospective profits arising 
thereunder, the disposition, division or allotment of such profits or prospective 
profits, or of any commission or reward for procuring the said contracts or 
any of them and as to the persons interested in any such profits, prospective 
profits, reward or commissions, and generally speaking into all other acts, 
transactions and matters of every kind relating to the said contracts and each 
of them and to report the result of such inquiry with the evidence taken 

Sir Thomas White continued his speech on Apr. 4 and gave a 
careful analysis of the Fuse charges in particular. He pointed 
out that the advances to the American Ammunition Co. were 
guaranteed by the Guaranty Trust Co. one of the greater finan- 
cial institutions of New York; that although the only charges 
against a Minister were the tentative suggestions as to close rela- 
tions between Allison and Sir Sam Hughes, yet the Premier had 
decided to have a thorough investigation into them ; that the Inquiry 
was different in scope from what was demanded by the Opposition 
and dealt with the Minister's direct or indirect relations with the 
Shell Committee and with the actual administration and ordinary 
business of that body as a Canadian organization. "Our position 
is that they are not our agents; we have no authority over them 
whatsoever, as we have no authority whatsoever over the Imperial 
Munitions Board ; and having no authority over the Shell Commit- 
tee, there cannot be on the part of this Government any respons- 
ibility for its action." E. M. Macdonald followed in elaborate 
presentation of Opposition views and with the declaration that 
the Commission "from its very inception would be absolutely 


nugatory." He claimed that it would have no power beyond the 
bounds of Canada and apparently argued that a Parliamentary 
Committee would have greater authority ; he urged that Allison be 
at once extradited and brought to Canada. Mr. Broder said a few 
words in support of the Opposition motion and then Sir W. Laurier 
closed the debate with the deliberate charge that "in two contracts 
the Shell Committee, headed and presided over by the Minister of 
Militia, have misappropriated I use the word advisedly the 
funds entrusted to them." The division was 82 against the motion 
and 44 in favour with Mr. Broder, A. A. Mondou, P. E. Lamarche 
and W. F. Maclean, Government supporters, voting for it. 

Following these events Industrial Canada, the organ of the 
Canadian Manufacturers' Association, had in its April issue a 
slashing attack upon Allison, criticism of Sir Sam Hughes for his 
relations with that promoter and a declaration that the situation 
had become intolerable and that "the license to loot had to be 
terminated." The Premier's Commission policy was approved. On 
Apr. 16 General Hughes reached Ottawa from England and after 
a long conference with the Premier discussed matters with his 
counsel. On Apr. 18 he addressed the Commons at some length and 
commenced by saying that he had asked the Prime Minister to 
administer the affairs of his Department while the Commission was 
sitting. He reviewed the pioneer work of the Shell Committee and 
stated as to the two chief contracts under investigation that the 
Companies concerned were "now employing between them nearly 
8,000 men, that they had invested in plant, machinery, and mater- 
ials fully $6,000,000, that they had, with the exception of one other 
Company, done better in that work than any other concern in 
North America, that the British Government, through Morgan & 
Co., had recently given one of these firms a new contract for 4,000,- 
000 additional time fuses and the other an order for 1,000,000 
time fuses, and that every dollar of the money advanced was pro- 
tected by the guarantee of the Guaranty Trust Co. ' ' He reviewed 
a number of matters in which Col. Allison had aided him, or the 
Committee, or the Government, declared the advances to the United 
States concerns were neither unusual or improper, and that the 
Canada Car & Foundry Co. had been advanced $3,000,000 by the 
Russian Government before a fuse was delivered and quoted the 
slow deliveries of many United States orders. He denounced the 
Opposition fiercely for bringing up unproven "piffle" in a time of 
serious war and spoke with a sort of defiant forcefulness which was 

The Royal Commission held its first Session on Apr. 26 with 
an imposing array of Counsel which included Eugene Lafleur, K.C., 
J. S. Ewart, K.C., and Wallace Nesbitt, K.C., for the Minister; N. 
K. Laflamme, K.C., for the Shell Committee ; G. F. Henderson, K.C., 
for Col. Allison ; I. F. Hellmuth, K.C., as Chief Government Counsel 
and E. F. B. Johnson, K.C., representing the Opposition Leader. F. 
B. Carvell and his associates in the charges were aided by S. W. 
Jacobs, K.C., and F. H. Markey, K.C., of Montreal, while A. W. 


Atwater, K.C., represented the International Fuse Co. It is im- 
possible to go into the voluminous details of the Inquiry here. Of 
the witnesses Colonel David Carnegie (Apr. 26) assumed full 
responsibility for the fuse orders placed in the States but stated 
that Sir Sam Hughes acted for the British Government and that 
the War Office did not approve the placing of these orders in the 
States as interfering with arrangements between it and J. P. 
Morgan & Co.; Sir Alex. Bertram (May 3) indignantly denied 
any intermediary in these contracts or the reference of any one to 
Col. Allison, and from his evidence it appeared that the War Office 
had paid the Committee $345,222,874 for shells which had cost 
the latter $303,125,289 and that the Committee had handed over 
to the Imperial Munitions Board a surplus on Nov. 30, 1915, of 

Col. Thomas Cantley (May 5) stated as to the Agreement of 
July 1, 1915, between the Shell Committee and General Hughes, 
acting for the British Government, and Messrs. Bertram, Cantley, 
Watts and E. Carnegie, manufacturers and members of the Shell 
Committee, involving $148,628,110 worth of munitions, with two 
other agreements totalling $200,000,000, that ' ' the four contractors 
undertook a legal as well as a moral liability and in our opinion 
the legal liability did not cancel the Amoral liability. Legally, as 
we were responsible for the losses, we should be entitled to the pro- 
fits. When it became evident that there would be profits, all the 
members decided to turn them over to the War Office." E. B. 
Cadwell, President of the American Ammunition Co., testified 
(May 11) as to the agreement for dividing $1,000,000 commission 
on the contract for 2,500,000 fuses between himself ($250,000), 
E. W. Bassick, ($275,000), and B. F. Yoakum ($475,000). B. F. 
Yoakum (May 13) stated that his total, as above, was to be shared 
with J. Wesley Allison the latter to receive $220,000, of which 
$30,000 was to go to Col. Win. McBain, well known in Canadian 
Military circles, $10,000 to Geo. W. Stephens of Montreal, $50,000 
to Eugene Lignanti of New York, and $105,000 to Miss Mabel 
Edwards, Secretary and sister-in-law to Allison. Small payments 
on account were said to have been made to each of these benefi- 
ciaries. Messrs. McBain and Stephens stated that the payments to 
them were in the nature of adjustment in connection with general 
War commission business and not this specific contract. 

Col. F. D. Lafferty and Gen. Thomas Benson of the Committee 
stated (May 15) that all contracts for fuses were arranged by 
Messrs. Carnegie and Bertram. J. Wesley Allison on May 18 
dealt with the partnership in commission and financial work 
between himself, Yoakum and Lignanti, the many War contracts 
or commissions they had obtained,* and some they had not got. 
He admitted that he had accepted a commission from the sellers 
in connection with a cartridge contract executed by General Hughes 
for the British War Office, but stated emphatically that General 

*NOTE. General Hughes afterwards estimated Allison's total contracts from British 
or Allied Governments at $500,000,000. 


Hughes had no interest in the commission, and did not know that 
the American companies were paying it. He declared that he had 
never accepted any commission on "Canadian business" which he 
had handled for General Hughes. As to the fuses he had been 
asked by General Hughes and Col. Carnegie to organize American 
interests for the making of these fuses and stated that Yoakum, a 
financial man of experience, had undertaken to do this and had 
interested Cadwell and Bassick in the matter. Allison denied any 
intention of taking a commission in the matter. 

General Hughes testified on May 30. He described the contracts 
with the members of the Committee as matters of form: "As 
everybody understood that these gentlemen were not personally to 
pay any losses, and would not take the profit, and as the War Office 
desired that the business should be put in the form of a contract, 
and as we had no lawyer to raise objections, the contracts were 
signed." The objections of the Morgans of New York as United 
States agents of the British War Office to General Hughes or the 
Shell Committee letting contracts there were characterized as the 
work of "a ring"; correspondence between the Minister and Gen. 
Bertram, submitted to the Commission and published, in which 
the former recommended that certain contracts be given to specified 
parties including Gen. Hughes' son-in-law in a Lindsay concern 
were admitted to be correct ; unwavering confidence was expressed 
in Col. Allison and ignorance stated as to his relations with Yoakum 
et al, while the elimination of the Shell Committee was described 
as due to the transfer of munitions in England to a responsible 
Minister and his appointment of a new body in Canada while the 
$15,000 bonus to Col. Carnegie for his services was said to have 
been given by him to the poor of London. 

As to the charge of favouring United States manufacturers the 
Minister said: "The two contracts for fuses were given to the 
United States men only because that part of the work very much 
the most difficult could not be done in Canada so expeditiously. 
The fuses were required parts of 5,000,000 complete shells which 
the Committee had agreed to supply to the War Office. The fuses 
cost about $22,000,000. The other parts cost about $70,000,000. 
Without the fuses from the United States the other part of the work 
would not have been done in Canada." T. A. Russell of the Russell 
Motor Co. told of the efforts which he and Lloyd Harris had made 
in May, 1915, to secure at least a share of the Fuse order and how, 
when a little later on they had obtained orders, the result both 
in price and in output amply justified the effort. It was not till 
September that they found out that advances of $3,000,000 had 
been made to the American companies, and it was then that they 
resented their treatment at the hands of the Shell Committee, and 
went to Sir Robert Borden about it. With this evidence the case 
neared its end. Bassick and Lignanti had ignored their summons 
to appear and G. W. Kyte, M.P., had not been asked to testify while 
Mr. Carvell had not cross-examined General Hughes. 


There were some curious incidents during the Inquiry. One 
was the statement of Sir Sam Hughes (May 31) that ''our offices 
in New York were broken into. I have photographs of affidavits 
here to show that men were paid to steal papers, associates of men 
seated in this room as Counsel. These men were associated with 
Messrs. Carvell and Markey." An immediate protest was made 
but Sir Wm. Meredith drew attention to the gravity of the charge. 
" I do not see ! ' ' said the Chief Justice, ' ' how this letter purport- 
ing to have been sent from General Hughes to General Bertram 
could have been obtained except by improper means." F. B. 
Carvell denied the statement and said that the letters or copies had 
come to him anonymously through the mails from Montreal in 
January and that he had no knowledge of who sent them. The 
denial was accepted. 

Collateral to this and preceding it by some days was a heated 
debate in the Commons on May 13 when, during a speech by F. B. 
Carvell, the Minister of Militia interjected a reference to "steal- 
ing papers from New York offices."* Mr. Carvell promptly stated 
that he had visited New York, had searched for proofs of improper 
dealings between the Minister and Wesley Allison, and had em- 
ployed as his Solicitor Wm. Travers Jerome*who, also, had employed 
detectives to obtain information as to the Shell Committee. This 
statement evoked sensational attacks upon Jerome as a notorious 
pro-German with an active Austrian partner (Isidor J. Kresel) in 
his firm and upon Mr. Carvell for indirectly putting Canadian 
defence secrets in enemy hands ! The Conservative press published 
a letter from Jerome (dated June 29, 1915) to Arthur Von Brie- 
sen of New Yorkf pledging professional and personal services to 
the German scheme for preventing shipment of United States 
munitions to the Allies. On June 1 the Ottawa Journal (Cons.) 
published a long statement as to the relations of a man named C. 
B. Rogers in New York with certain unnamed Canadian politicians, 
which included a confession by Rogers that he had stolen some 
Shell Committee papers from the office of Grant Brown, a New 
York Commission broker, but afterwards returned them for un- 
explained reasons the inference being that he could not get his 
price and that his evidence was not trustworthy. 

On May 10 the Ottawa Free Press a Liberal paper but a bit- 
ter critic of Mr. Carvell published an interview with Major the 
Rev. C. S. Bullock of the 97th (American) Battalion describing 
his meeting with Rogers in New York and of the latter 's stories 
about Shell Committee papers, of interviews at Toronto and 
Ottawa with Mr. Carvell and of payments made to him of certain 
moneys. To the St. John Standard of June 13 Major Bullock gave 
certain affidavits made by Rogers and others which included copies 
of telegrams signed by Messrs. Kyte and Carvell. Meanwhile, on 

*NOTE. Mr. Carvell had, also, tried on May 5th, to get Parliament to extend the 
scope of the inquiry but the Premier thought a sufficient case was not made out and his 
proposal was voted down by 46 to 19. 

tNOTE. Ottawa Journal, May 29, 1916; Mr. Carvell's reply was in St. John 
Telegraph, June, 17. 


June 1 General Hughes had issued a signed statement giving full 
details of circumstances and conditions under which Col. Allison 
had aided the Allied Governments and saved them money or in 
which he might have done so if his advice had been followed, and 
under which he had helped him (the Minister) and obtained reduced 
prices for the Government. Horses, motor Iorri6s, Colt guns and 
pistols, armour-plate shovels, brass 18-pounder cartridge cases, 
copper, zinc and brass supplies were instanced. "Col. Allison 
organized a company and offered to manufacture in Canada all 
grades of gun powder, and to guarantee a price 30 per cent, lower 
than any then obtainable. He also arranged for a cartridge fac- 
tory for Canada, guaranteeing to make them at a price of $2 per 
thousand less than the then prevailing price. On the fuses, by his 
intervention, the price was reduced from $5.60 and $5.50 to $5.10 
and $4.90. Later it was brought down to $4.25, a minimum, and 
$4.50 a maximum. Then at $4.50, a saving of forty cents per 
fuse was made, or on the five million fuses, upwards of two millions 
of dollars net." The speeches of Counsel began on June 7 when 
I. F. Hellmuth, K.C., the Government Counsel, gave an address in 
which he claimed that the whole gist of the charges was that Gen- 
eral Hughes, for purposes of his own, incompatible with his public 
duties, and in order to favour someone else, brought influence to 
bear to induce the Shell Committee to place contracts with Allison 
and his friends." Now, I can find no evidence before this Commis- 
sion of a single corrupt or dishonest act in regard to these con- 
tracts on the part of General Hughes. ' ' He declared that the whole 
charges, that the whole case of Messrs. Carvell and Kyte, had 
fallen to the ground. F. B. Carvell followed in caustic denuncia- 
tion of the Committee, the Government, the Minister of Militia, 
and especially Col. Allison. He claimed that the Shell Committee 
was General Hughes, that the contract with the Fuse people was 
"vicious" in principle and price, that Col. Carnegie had not used 
even ordinary judgment and that it all centred in Allison who had 
to have these contracts and to make these commissions, which 
General Hughes wanted him to have and to make. Of the Fuse 
negotiations the Cadwell and Yoakum affairs Mr. Carvell 
claimed that they pulled off the deal, if not with the knowledge, 
with the after approval, of Sir Sam Hughes. * ' No, no, ' ' interposed 
Commissioner Duff. Mr. Carvell continued to claim that at any 
rate General Hughes was "an accessory after the fact." He 
relieved General Bertram of any share in the matters denounced, 
declared discrimination proved against Canadian manufacturers 
in the persons of T. A. Russell and Lloyd Harris, Col. Fred. 
Nicholls and others, and concluded by declaring that the statements 
of Mr. Kyte in Parliament had been "proven to the hilt." 

Messrs. Ewart and Lafleur followed on the 8th and practically 
claimed that the only thing to be considered was as to whether or 
not the Minister of Militia connived at dishonesty in handling war 
funds. They claimed that Sir Sam had been entirely exculpated 


from any charge pf suggesting or condoning such action. They 
argued, that not even a suspicion rested on Sir Sam Hughes, and 
that was all the Commission should particularly care about. They 
said little of Allison and his commissions or of his confidential rela- 
tionship with the Minister. Sir Sam had simply given Allison 
orders to "break prices," and knew nothing of private arrange- 
ments between Yoakum and Allison, nor had he anything directly 
to do with the placing of the fuse contracts. E. F. B. Johnston de- 
clared that ' ' the crucial point in the whole affair was Allison. ' ' He 
was a close personal friend of the Minister. He was appointed on 
special missions and trusted in all kinds of matters. General Hughes 
visited him in New York. N. K. Laflamme (June 9) argued that 
the Royal Commission had no jurisdiction inasmuch as the Shell 
Committee was appointed by the British Government, through the 
Minister of Militia, was under the control of that Government and 
dealt with matters involving British money. G. F. Henderson de- 
fended Col. Allison : ' ' The outstanding fact was that he was a man 
of business. He was a broker, openly and avowedly in business as 
such, and had he not been a broker with all the experience and 
connections he had, Allison would not have been of use to the 
Minister." Mr. Henderson denied the agency or official position 
absolutely. A. W. Atwater contended that the International Fuse 
Co. was not a mushroom Company. ' ' It had dealt with no middle- 
men and had the best available experts with one of the finest plants 
in the country and was making fuses satisfactorily." Wallace 
Nesbitt defended at length the Shell Committee and the Minister. 
F. H. Markey contended that Mr. Kyte's speech had contained no 
suggestion of dishonesty or malfeasance by any one in office. 

The Report of the Commission was issued on July 20 and was, 
7 upon the whole, distinctly favourable to the Government, the Com- 
mittee and the Minister of Militia. Some carelessness and bad 
judgment on the part of Col. Carnegie, due to overwork and the 
dual duties of Business manager and Expert adviser to the Com- 
mittee, and some mistakes on the part of others, were stated, while 
Col. Allison was distinctly censured. (Ji General Hughes the Com- 
mission found, on the two counts against him of (1) complicity 
with Allison and (2) undue influence with the Committee, that 
there was nothing to suggest the exercise of influence or pressure 
by him in the awarding of contracts. It was declared to be a most 
natural and in no way improper thing for the Minister to have 
called the attention of the Committee to the claims of manufactur- 
ers in the constituency, which he represented. As to the Fuse con- 
tract with the American Ammunition Co. the Commission found 
that "neither General Hughes nor any member of the Shell Com- 
mittee has been, or is so entitled, or was promised, or paid any 
(such) commission, reward, or remuneration." It was added that 
according to the testimony of Cadwell, General Hughes did not 
know that Allison was entitled to any share or interest in the com- 
mission arrangement and that the evidence established that nei- 


ther General Hughes, General Bertram, Colonel Carnegie nor any 
member of the Shell Committee, had any knowledge of the arrange- 
ment between Yoakum and Allison as to commission or suspected 
that Allison proposed to accept any commission or reward on 
account of or in connection with the contract or the negotiations 
which had led up to it. "On the contrary, Allison gave General 
Hughes to understand that in all that he had done or would do in 
the matter he was actuated solely by his friendship for General 
Hughes, and that under no circumstances would he take any reward 
or commission for his services. " As to the relations of Allison and 
the Minister the Report was explicit : 

After having given the matter our gravest consideration, we are com- 
pelled to the conclusion that Allison's explanation cannot be accepted and to 
find that while professing to be acting as the friend of General Hughes and 
to be doing what he did solely out of friendship for him, and without any 
expectation or intention of receiving any remuneration for his services, Allison 
was instrumental in bringing about a contract in which through his agreement 
with Yoakum of February, 1915, he was pecuniarily interested, with the 
knowledge that he would be entitled to share equally with Yoakum in any 
benefit that Yoakum might receive, either by way of commission or otherwise. 
We have only to add that if we had come to a different conclusion and had 
accepted Allison 's statement, we would have been bound to say that his conduct 
in taking the benefit of the agreement as to the* commission and accepting a 
right to share in it equally with Yoakum without informing General Hughes 
and the Shell Committee, and obtaining their consent, could not be either 
justified or excused. 

The Commission mixed up censure and commendation in its 
treatment of Col. Carnegie and finally sympathized with him in 
the heavy burden he had carried. He was declared innocent of 
any wrong-doing and guilty of some mistakes. It found that he 
was justified in refusing time-fuse contracts to Canadian com- 
panies in June, 1915, and in refusing at that time to establish a 
loading plant in Canada, but that he could have placed graze fuse 
contracts in this country then, and stated that his failure to do so 
furnished the only ground for the charge of discrimination against 
Canadian manufacturers. For this he was condemned without, 
however, casting any reflection upon his integrity. So in the mat- 
ter of prices: "We think that a fair price for the loaded graze 
fuse would not, at this time, have exceeded $3.00 ; and we are satis- 
fied that, had Col. Carnegie been aware of the prices then being 
paid in the United States on behalf of his own principals, the 
War Office, to Mr. Cadwell himself, he would not have agreed to 
a higher price than $3.00." Of the other charges the Commission 
found no contract made with the Providence Chemical Co. for picric 
acid and that there was nothing improper in the cartridge case 
contract with the Edwards Valve Co. The term "mushroom" 
companies as applied to the American Ammunition Co. and Inter- 
national Arms Co., was found to be an unfair designation of these 

As in all such Commission Reports both parties professed them- 
selves satisfied though there was a general recognition of the fact 
that no guilt attached to Sir Sam Hughes and that the worst that 


could be said had often been said before by political or personal 
critics and related wholly to the natural characteristics of the man 
himself. The best to be said was that he trusted his friends too 
greatly and had come through the ordeal with no stain upon 
reputation or character. He himself told the press (June 23) 
that his traducers had been trounced and "the disreputable little 
clique" beaten. He still upheld Col. Allison and declared him to 
be "the biggest and best man in Canada and the cleanest, too." 
The Hon. Robert Rogers presented the extreme Conservative view 
in demanding (Montreal, June 5) "the resignations of Sir Wilfrid 
Laurier, Carvell and Kyte, who assumed the responsibility of the 
charges made and demanded the investigation that has so utterly 
failed. In justice to their constituents, in justice to Canada, in 
justice to the Empire there is no other course open to them than 
resignation." The Toronto Neivs drew attention to the fact that 
for two months the Minister's attention had been taken from his 
war-work: and duties, many officers called from their posts to give 
evidence, various delays caused in military work, the attention of 
Parliament and the people distracted from the more vital duties 
of the time, a serious moral harm done to Canada in reputation and 
influence, much information of value to the enemy published 
broadcast. The St. John Standard (Cons.) demanded, daily, for a 
time the retirement from Parliament of Messrs. Carvell and Kyte. 

The Liberal view was voiced by the London Advertiser (July 
22) : "Sir Sam Hughes is adjudged innocent of all wrong-doing. 
He was a sheep among wolves. But as well have a school boy with 
a million dollars among a set of thugs, as a Minister of Militia 
whose trusted friend is shown to be guilty of conduct that 'could 
not either be justified or excused. ' . . . Mr. Kyte, who brought 
the charges, and Mr. Carvell, who fought tirelessly for a complete 
unfolding of the facts, deserve the commendation of Canadians for 
their service, a service, however, which they would have been dere- 
lict in refusing." A more impartial opinion was that of J. H. 
Sherrard, President of the C. M. A., at Hamilton on June 13: 
"Canada's debt to the Minister of Militia in connection with the 
making of munitions will only be fully known Avhen the history of 
our part in the War is written, but it is a great satisfaction and 
relief to Canadians generally that the unfortunate investigation 
which has interrupted his very urgent duties has cast no shadow 
upon his integrity. He has made mistakes of judgment which are 
easy to criticize now, but the percentage of error should be regarded 
in proportion to his vast accomplishment." Following the Report 
(on Aug. 11) the name J. Wesley Allison was removed from the 
Government's List of Hon. Colonels. Sir Robert Borden was Act- 
ing Minister of Militia at the time. The cost of the Inquiry was 
considerable E. F. B. Johnston's account alone being for $7,000. 
Sir Wm. Meredith received an honorarium of $5,000 but Mr. Jus- 
tice Duff declined to accept any remuneration. 

Associated with a branch of this Inquiry was the work of Sir 


Charles Davidson, ex-Chief Justice of Quebec, who, after investi- 
gating miscellaneous War contracts during 1915, was on May 11, 
1916, appointed to "investigate and report upon the facts and 
circumstances o or connected with the sale or disposal, by the 
Government of Canada, of small arms munitions since the 4th 
August, 1914, referred to in certain returns made to the House of 
Commons on the first and second days of May, 1916." These re- 
turns, for which E. M. Macdonald (Lib.) had moved, dealt with 
an alleged sale of defective ammunition under conditions which 
were described by the Minister of Militia in a proposed Order-in- 
Council of Jan. 15, 1915, which was not actually passed, as fol- 
lows: "The undersigned has the honour to submit an application 
from Vickers, Ltd., for the purchase of 4,985,900 rounds of S. A. 
Ammunition mark VI. This is part of the stock of mark VI. 
ammunition which, under suspicion, was not allowed to be used 
with rifles in Canada. The price of the ammunition to be $20 
per 1,000 rounds. This ammunition, while rejected for rifle use, is, 
however, reported to be suitable for the testing of Vickers machine 
guns now being manufactured in very large numbers in England. ' ' 
John Fraser, Auditor General, dealt with the matter in a letter to 
the Finance Minister as f ollows : 

I beg to call your attention to a sale of ammunition made by the Depart- 
ment of Militia and Defence. Some time prior to Dee. 31 last this Depart- 
ment sold through Col. J. Wesley Allison, without the authority of the Gover- 
nor-in-L-ouncil, over 3,000,000 rounds of ammunition at $20 per thousand. The 
Department has been buying ammunition since tne declaration of war at $33 
per thousand and has also been manufacturing ammunition at the Dominion 
Arsenal at a cost of $34.60 per thousand, consequently there has been a loss to 
the Government on this transaction of over $45,000. It is alleged that this 
ammunition has been sold to VicKers, Limite^, for testing purposes. I can 
hardly credit this statement, owing to the magnitude of the sale, but if it 
were so, why was it sold at such a low rate, and why was it necessary to obtain 
the services of Col. Allison. I have reason to believe that the ammunition was 
resold at an advance of about 25 per cent, and that its destination was not 
Vickers, Ltd. I may be mistaken in this but Col. Allison's connection with 
the transaction does not tend to allay suspicion. 

The Minister had carried out the sale in part and on Apr. 3, 
1916, his explanation was given in a Memorandum included in this 
Return and which stated that "the Canadian treasury has received 
$20 for every thousand rounds thereof. There are no records to 
show what became of it, further than that it was regularly ordered 
and shipped to Vickers, one of the most reputable firms in the 
world. The assurance was given that not one cent was paid in 
commission by the firm to anyone and no profit was made on it. 
It is understood that, to cover the cost of transport, handling, 
exchange, insurance, etc., a sum was added by one of Vickers' 
officers, to the price, but, on learning that these expenses were 
borne by the British Government they were immediately removed." 
This small arms ammunition was a part of that made before 1908 
and dealt with by a Special Inquiry (Col. Sir H. Barlow and 
Major Ogilvie) at the Arsenal in 1913 which had ordered 12,000,- 
000 rounds to be destroyed. The balance, as being defective had 


been sold for special purposes. To the Davidson Commission 
on May 12 Sir Sam Hughes testified that 2,986,100 rounds had 
been sold to Vickers Ltd., that Wesley Allison had first asked him 
about this ammunition and been referred to Gen. D. A. Macdonald, 
Quartermaster-General, who was responsible for the sale. Gen. 
Macdonald stated to the Commission that he had thought Col. 
Allison represented the Imperial Government and had fixed a 
price of $20 per 1,000 at which it had hitherto been selling, by 
request, to Rifle clubs and the Royal North-West Mounted Police. 

On the same day that this evidence was given D. D. McKenzie 
(Lib.) moved in the Commons that this matter be referred for in- 
quiry to the Meredith -Duff Commission. He claimed that the 
transaction was irregular and that the ammunition was / needed in 
Canada quoting a letter from Gen. Macdonald of Nov. 13, 1914, 
declaring that this ammunition should be held until depleted sup- 
plies had become normal. He reviewed a series of ammunition 
sales to the Vickers people through Allison and critized these inter- 
mediary operations. The Premier pointed out that the subject 
already was in Sir C. Davidson's hands for investigation. He 
dealt in detail with the charges and claimed that a fair price had 
been obtained for the defective ammunition while there was a 
normal quantity of good ammunition available in the country for 
home defence when it was sold. Sir Wilfrid Laurier laid stress 
upon the alleged illegality of the Minister's action and supported 
the suspicions of the Auditor General. The Minister of Militia 
went into a vast mass of technical detail. Finally he summarized 
as follows: ''All ammunition made before 1913 and in store was 
condemned as defective by the Commission. All of the defective 
ammunition made prior to 1909 was condemned to destruction in 
one form or another. The balance was recommended for machine 
gun practice only. . . . There were several proposals for its 
sale. One was made by the Deputy Minister at $10 or $12.50, sup- 
posedly for Mexico. Another was to sell to Vickers, through their 
New York agent, Allison, for machine gun testing." The latter 
was done and the sale released a similar quantity of good English 
ammunition for the Front. Other speakers followed and the 
motion was defeated by 40 to 17. 

Before the Davidson Commission on May 23 Col. J. F. Mac- 
donald, Master of the Ordnance, stated that it was not the prac- 
tice to secure an Order-in- Council for the sale of ammunition in 
Canada. An Order had been passed, however, authorizing a sale 
of rifles to the Government of New Zealand. In the case of ordinary 
sales authority was secured from the Minister or his Deputy. F. 
Orr Lewis of Montreal, (Trustee for the Admiralty in a Munition 
Fund for payments) testified on May 25 that $63,000 had been 
paid out of this Fund for the ammunition in question on behalf of 
the Admiralty for which he had been acting though at the same 
time President of the Canadian Vickers, Ltd., and that C. A. 
Searles of the English Vickers, who had received the shipment in 


London, had also been acting for the Admiralty. He denied any 
commission to Allison, though there was a credit of $15,613 in the 
account which was described as unsettled and which Mr. Frasei 
maintained was the 25% advance in price which he charged. On 
June 2 Mr. Bonar Law, Colonial Secretary, replied to an inquiry 
from the Auditor General, through the Governor-General's Secre- 
tary, as follows : ' ' The price paid by the Admiralty for the 3,000,- 
000 rounds of ammunition was $25 per thousand, f.o.b., Canada. 
The Admiralty paid all charges for insurance and cartage." On 
June 20 H. H. Dewart, K.C., Opposition counsel, examined Sir Sam 
Hughes who still maintained that the ammunition was sold to 
Vickers and not the Admiralty. He did not have to attend to 
details, he trusted Allison and Orr Lewis and had left this parti- 
cular matter in the hands of the Quartermaster-General where it 
belonged. This part of the Davidson investigations was closed at 
the end of the year* by an interim Report in which the Commis- 
sioner declared that it would have been better if there had been no 
intermediaries in the sale and had there been an Order-in-Council : 
The sale was made to the Admiralty through its own official, and paid 
for out of Imperial moneys. It would be an unwarranted intrusion were I 
to pass judgment on domestic arrangements between the Admiralty, its agents 
and its sub-agents. ... I am unable to believe that it is possible to deter- 
mine the charge of business treachery which in the factum is associated with 
the asserted attempt to secure $25 per thousand. There is not a tittle of 
proof that Allison knew anything about the matter of ultimate charge to the 
Admiralty. ... If Canada received an excellent price for Mark VI am- 
munition, which it did; if the price were paid in full, as it was; if there has 
not been later allowance out of public moneys, of commissions or profits to a 
middleman, as there has not been; then the limits of my investigating duties 
are reached. The Minister stands free of evidence which would affect his 
pergonal honour. 

Meantime, while partisans were fighting and Judges investigat- 
ing, the making of shells and munitions went on. At the begin- 
ning of the year 100,000 skilled mechanics and 422 plants were 
at work but, for the moment, the Imperial Munitions Board which 
had succeeded the Shell Committee, was chiefly administering the 
contracts handed over to them. For reasons best known to Gov- 
ernments concerned partly slow delivery and partly financial 
conditions new orders were not at the moment being given ; though 
on Jan. 5 it was announced that Canada had released 1,000 skilled 
men from amongst its troops in England for work in British 
munition factories. A British official statement issued at this time 
showed that the orders given Canada were for 22,000,000 shells of 
which 8,000,000 had been delivered ; that the cost of the component 
parts required in the manufacturing of these shells, including the 
machinery and assembling was estimated at $282,000,000; that in 
addition there had been orders from the War Office for cartridge 
cases, primers, forgings, etc., amounting to $20,000,000. The new 
Board, of which J. W. Flavelle was Chairman, and the main 
business factor, was carrying on the work and preparing to meet 

*NOTE. Published on Jan. 6, 1917. 



the new and obvious difficulties the competition of greater United 
States industrial plants and of an organized financing system 
through the Morgan firm which Canada had not yet seriously 
undertaken. The Board itself was strengthened in the next two 
months by the employment of specialists in auditing accounts, in 
making purchases and contracts, in supervising machinery and 
assembling plants, in distributing component parts of shells to 
the various plants, in the production and standardization of gauges 
essential to munition-making, in the inspection of faulty material, 
in the placing of insurance upon munition material. By the end 
of February 2,300 Inspectors were in its employ and $5,000,000 
per week was being paid out for material. 

On Jan. 28 the Board issued a statement showing that orders 
for munitions totalling $169,000,000 were placed in Canada dur- 
ing October and November, 1915, for delivery during the first half 
of 1916; in December and January only $7,000,000 of new orders 
were received. It was pointed out that of the orders placed previous 
to October, 1915, less than one-half had been filled at the end of 
the year. In nearly all cases deliveries were overdue, although 
some individual manufacturers had completed their contracts. 
Furthermore, the mere business of making shells, which was the 
easiest part of the work, had been developed both in Canada and 
Great Britain very rapidly. Consequently, in both countries the 
capacity for turning out and machining empty shell bodies was in 
excess of possible requirements. The difficulty confronting the 
Munitions Board, both in Canada and in England, was to speed 
up the shell-loading plants and the turning out of the completed 
shell ready for firing. In Canada, as yet, there were only two 
shell-loading plants in operation, although another one was under 
construction in Montreal. There was no fuse-fitting plant although 
the establishment of one under the direction of the Board had 
been commenced. The Board had asked the War Office to take 
some of its empty shell contracts from British firms and give them 
to Canadians but naturally was not hopeful of response to a request 
which would have closed down English plants. 

Dealing with the question of prices for recent orders it was 
pointed out that at the beginning of the shell-making business in 
Canada and for some time afterwards "the British Government 
deliberately sanctioned a high scale of prices for munitions made 
in Canada, because it was necessary in order to bring Canadian 
manufacturers into the field." "But," added the Board's state- 
ment, " it is surely time to bring the production of munitions down 
to a business footing, and to be prepared to meet the competitive 
conditions which prevail in every other class of business." The 
press, meantime, was urging more effort to get more contracts ; the 
Board was urged to find new and improved methods of production 
and delivery. Suggestions included the building of Government 
factories; Government control of suitable existing plants devoted 
to other purposes; the fostering of the small producer, as around 


Paris where 1,600 French machine shops were in operation under 
sub-contracts upon which no profit accrued to the main contractor ; 
the giving of organized instruction to willing but unskilled labour. 
On Feb. 6 it was announced that the Board had received a British 
order. for 800,000 18-pounder shrapnel shells; in the Commons on 
the 7th Sir Robert Borden stated in reply to a question that ''the 
Imperial Munitions Board propose to erect a factory for the loading 
of time fuses at Verdun (Montreal) ; the factory will be operated 
by a Company specially formed for the purpose, the entire capital 
, stock of which belongs to tne Board ; all expenditures for factory 
and equipment will be provided by the Board through the above 
Company. The amount will probably be $300,000 to $325,000." 
Following the credit of $50,000,000 given by the Government and 
Banks of Canada to the Imperial Munitions Board late in 1915, a 
further credit of $75,000,000 was granted in March, 1916. 

In June when the Board's expenditures totalled $1,000,000 a 
day another credit of $25,000,000 was accorded and on July 18 
further British Orders for $35,000,000 of heavy shells for deliv- 
ery early in 1917 were received. This brought the total up to 
$500,000,000 in shells with $200,000,000 delivered. It was an- 
nounced also that the new fuse manufacturing plant near Montreal 
was in satisfactory operation and that Canada could produce for 
Great Britain more than 10,000 shells a day ready for the Front. 
Mr. Flavelle stated at this juncture that the "chief difficulty ex- 
perienced in speeding up the Canadian output of shells was the 
lack of skilled workmen for the munitions factories. ' ' There was a 
general scarcity of labour. Thousands of men who might have 
been available for munition work had been recruited, and sent to 
the Front. New workers were being trained but shell contractors 
reported great difficulty in procuring them. As one means of 
meeting the situation the Munitions Board urged the recruiting of 
women to work in munition factories. At this time 660,000 women 
were engaged in British War industries while the Labour Union 
of Great Britain telegraphed Sir Douglas Haig on July 18 that all 
holidays would be postponed. 

Conditions of production in Canada still remained unsatisfac- 
tory in details with a continued shortage in many deliveries due 
in part to a lack of co-operation amongst widely scattered indus- 
tries, partly to inadequate supplies of labour, in part to manufac- 
turers' anxiety to obtain contracts while lacking facilities to fill 
them. There were plenty of orders and the Allies were apparently 
buying for another year of war. On Aug. 12 the Resources Com- 
mittee of the Ontario Legislature issued an appeal for speeding 
up production based upon a statement from the Imperial Muni- 
tions Board that "the deliveries of munitions from Ontario are 
running far behind the quantities promised, and we are seriously 
apprehensive if existing conditions cannot be bettered." A Con- 
ference was held at Ottawa in this connection (Sept. 5) between 
officials of the Labour Department, the Munitions Board, Trades & 


Labour Council and individual munition and textile manufactur- 
ers. The Hon. R. Rogers and Hon. T. W. Crothers represented the 
Government, J. W. Flavelle and G. B. Gordon the Board, Mark 
Workman, W. Thoburn, M.P., and other manufacturers were present 
together with J. C. Watters, P. M. Draper and other Labour men, 
while F. B. McCurdy, M.P., and Col. C. S. Mclnnes, represented the 
Militia Department. The importance of maintaining the munitions 
output was discussed and a general willingness to co-operate toward 
this object expressed. As to the shortage of labour some of the 
employers stated that they could not secure the necessary labour 
at any price, while representatives of the men inclined to the view 
that the trouble was one of wages. 

On the 26th a party of Ontario Munition manufacturers, under 
the auspices of the Board, inspected plants in Montreal which had 
been employing women one producing the largest calibre shells 
made in Canada, and another engaged upon very intricate and 
delicate work, almost wholly done by women. The sensitive touch 
of the women and their reliability were said to be giving the best 
of results. In this plant, as indeed in the heavier work, women 
were rapidly being given the preference and had demonstrated a 
degree of efficiency which was not expected at the outset. The Y. 
W. C. A. was meanwhile, asked by the Munitions Board to co-oper- 
ate with them by supervising the proper housing of women in any 
towns to which it was necessary to bring additional help to supply 
the factories. This request was complied with and they formed a 
Military Purposes Committee at Toronto with Mrs. R. A. Falconer 
as Chairman. In England this organization was not only running 
hostels for women and girl workers, but had put innumerable clubs 
and canteens and different forms of educational and recreational 
facilities at their service. 

A further order came to the Board on Oct. 11 for $60,000,000 
of munitions and it was announced also that difficulties encoun- 
tered during July and August in procuring steel and forgings had 
been overcome and that the munition output was more satisfactory 
and was increasing in volume each week. ' ' The quantity of shrap- 
nel shells now produced complete with cartridge cases, fuses, prim- 
ers and propellant charge, has reached almost 250,000 a week, and 
the Board is authorized to place continuation orders for this size 
of shell into 1917." Large orders had been placed some months 
before for the larger sizes of shells and they had involved com- 
plete new installations of machinery and equipment. Deliveries 
were said to be steadily increasing. The position in Canada in 
regard to st'eel, the basis of all munition work, was such that no 
interruptions in output were expected in the future and the im- 
mense tonnage required for all classes of shells had been arranged 
well ahead. The fuse plant built by the Board at Montreal had 
reached a capacity of 10,000 per day, and by Jan. 1st it would be 
25,000 per day. 

As the year drew to a close strong efforts were made to get 


more labour for these plants. In Ontario M. H. Irish, Director of 
Labour for the Board, inserted advertisements in the press appeal- 
ing to the patriotism of classes and masses to help in this work. 
He stated however, in an interview (Nov. 30) that while "every 
munitions plant must be supplied with a proper number of skilled 
workmen, such as toolmakers and toolsetters, and these are un- 
questionably doing as great a work for the Empire before the lathe 
as in the trench, yet beyond this skill an exemption from enlist- 
ment based on munition work is scarcely sound." The Toronto 
Star quoted in this connection a recruiting officer who declared 
that "slackers would rather make shells at $3.50 a day than shoot 
them at $1.10." Mr. Irish also pointed out that "one of the most 
serious impediments to efficient production is the shifting of labour 
from one munitions plant to another, for which condition the em- 
ployer is as much to blame as the employee." At this time, how- 
ever, there were all kinds of contradictory stories current and re- 
peated in the press as to difficulties in getting munition work either 
from the plants or munitions officers. 

Great as the Munition work of the year proved to be, in the 
end, J. W. Flavelle was not satisfied; it might have been much 
greater and yet not met all the needs of the day. He was in Eng- 
land during November and on the 23rd was given a luncheon at 
the Hotel Cecil with the British Minister of Munitions in the chair. 
Mr. Montagu pointed out that the work of the Imperial Munitions 
Board was vital to the conduct of the War and declared that Can- 
ada had developed a capacity in this respect no less wonderful 
than that of the Motherland. In his reply Mr. Flavelle expressed 
gratitude to the Canadian Government and especially to Sir 
Robert Borden for personal help and to Sir Thomas White for 
financial aid. "You may be interested in knowing that the opera- 
tions of the Board carry us into every Province in the Dominion 
with the exception of P. E. Island, and extend to factories 4,000 
miles apart. The Board has had to assume the responsibility of 
the purchase of raw products, the preparation of them, and the 
shipment of them to factories where they were machined and 
assembled. Hence we purchased hundreds of thousands of tons of 
steel, we shipped them 500 or 1,000, 1,500, or 2,000 miles to be 
forged. We sent them on their journey miles across the con- 
tinent to the Pacific or elsewhere and followed them with all the 
component parts necessary for the production of the complete 
munition." As to contracts he was able to say that "neither poli- 
tics nor social conditions, nor sectarian influences, nor any of the 
things which crop up in a young community have weighed for a 
second. ' ' 

On his return Mr. Flavelle told the Toronto press of Dec. 9 
that Canadians had not yet realized the vital nature of the War, 
declared that shells were an all-important element in the conflict, 
stated that the tremendous difficulties in the making of fuses had 
been overcome and costs greatly reduced here as in England. He 


added this statement: "Most of the present contracts for shells 
in the United States expire three months after the New Year and 
practically all of them within six months. They will not be re- 
newed. Of course, Great Britain will still continue to purchase 
copper, brass, steel, and other raw materials from the States, but 
she will not purchase any more of the finished shells." It was 
significant that more than $100,000,000 of orders were said at 
this time to have been cancelled in the United States as a result of 
the Federal Reserve Board's action and -that on Dec. 29 the New 
York Times estimated $175,000,000 as the total of a new order given 
the Montreal Locomotive Co. Shortly after his return Mr. Flavelle 
told a gathering of Munition makers at Toronto (Dec. 12) that 
"Canada has failed in her promises to Britain regarding the 
delivery of munitions." Plans were discussed for relieving this 
situation for 1917. 

At the Ottawa Canadian Club (Dec. 16) Mr. Flavelle delivered 
a notable speech. The Board, he said, had 4,000 inspectors at work 
and over 600 establishments under control with responsibility for 
the supply of raw material to 250 of them; it spent yearly 2i/ 2 
times more than the Government of Canada in normal times. ' ' You 
have no idea, and I am sorry to say, neither has the manufacturer 
any adequate idea of the importance of the volume of munitions 
which are produced in Canada for the vital work which has to be 
done at the Front. The total percentage of shells produced in 
Canada in relation to all the shells used at the British front is so 
large that I would amaze some of you if I were at liberty to express 
the figures. ' ' For the sustained delivery of these shells the respons- 
ibility was great and vital to the individual maker and worker as 
well as to the Board. "I say to the manufacturer that when he 
has failed to make shipments in accordance with his promise his 
failure is so grave a matter that he ought not to be able to sleep if 
he has not made every arrangement in his power whereby the 
promised production is made available for use at the Front. Every 
failure on the part of the Canadian workman to work as many 
hours as he is able to work, every failure on the part of the Can- 
adian manufacturer to plan and lay out his work whereby he will 
deliver that which he has promised to deliver, is a crime against 
the State. We have pledged our honour. We have pledged our 
energy, we have pledged our resources, and we have done it after 
conference with manufacturers, and both they and their people 
have taken a responsibility before Almighty God and this State. 
In any failure to fulfil their promises that could have been accom- 
plished if they had been more diligent, they have taken a respons- 
ibility that God forgive them for it." Then came a vigorous 
utterance : 

It is very easy to develop a spirit of anger against profiteering as it is 
very easy to develop a spirit of anger against a Government. But why at this 
time? This much must be said for the manufacturer. He at least is devoting 
his energy and his time to the production of something that is absolutely 
necessary to the State. Why have anger towards the manufacturer when you 



have none toward yourselves? What has been our position in Canada? Am I 
saying too much if I indicate that, on the whole, we have looked upon the War 
as an extra? Am I stating it too strongly if I say we are almost drunk with 
the prosperity which comes to us through the expenditure of immense sums of 
borrowed money and through the expenditure upon natural products of sums 
of money, because of the high price, that staggers everyone who has to buy 
them? Is there evidence in this country of national sorrow and concern! 
God knows, some of you have paid, and some of your sons have paid the final 
penalty, and they are lying over in France or in Flanders. But, speaking 
broadly, as a people, is there sorrow? Is there any deep arousal of moral 
earnestness? Is it not 'Business as usual!' And profits larger than usual! 

Meantime various incidents had developed. To the original 
Board, composed of J. W. Flavefle (Chairman), Sir Alex. Bertram, 
Col. D Carnegie, G. H. Dawson, Victoria, C. B. Gordon and J. A. 
Vaillancourt, Montreal, and E. R. Wood, Toronto, there had been 
added the Hon. R. H. Brand, M.P., of London, by the British Min- 
ister of Munitions, while Edward Fitzgerald of the C.P.R. had been 
made Assistant to the Chairman, Mark H. Irish, M.L.A., Toronto, 
Director of Labour for Canada, under the Board, and some months 
later Dr. A. H. Abbott, Toronto, was appointed Ontario Director of 
this Department with Miss Wiseman as Supervisor of Woman 
Labour in Munitions. An incident of the latter part of 1916 was 
the difficulty as to Hydro-electric power between the Canadian 
Niagara Power Co., the Ontario Hydro- Commission and the Muni- 
tions Board, as it affected munitions. There was danger of stop- 
page in plants and this evoked a spirited remark from Mr. Flavelle 
in Toronto on Dec. 18: "One of the first things I heard upon my 
return from England was that there was trouble over a shortage of 
electric horsepower in the Province and a heavy demand for it on 
account of Christmas trading. Christmas trading. My God ! What 
difference does it make at this crisis whether Tom Smith sells a 
dollar's worth of jewelry. What if John Brown finds his profits 
and loss sheet affected because there is not light enough." The 
difficulty was adjusted. On Sept. 24 the Canadian Car Co. reported 
the value of unfilled orders on its books at $15,000,000 and its 
plant to be tied up in large Russian war contracts which would be 
completed in 2 or 3 months and on Nov. 24 it was stated to have 
received a Canadian contract of $14,000,000 from the Munitions 
Board for forgings to be supplied to munition plants enough to 
keep its subsidiary Canadian Steel Foundries engaged at capacity 
during 1917. On Dec. 2 the construction was announced of an- 
other large Munitions plant at Montreal by the International Arms 
& Fuse Co. of New York, backed up by the Munitions Board. 

At the close of 1916 Canada was producing various sizes of 
shells up to 9-2, its shell business under the control of the Muni- 
tions Board was one of the greatest business organizations in the 
world, large quantities of copper and brass were being used and 
copper and zinc were being refined in Canada, the expenditures of 
the Board for munitions in 1916 totalled $300,000,000,* two Na- 
tional plants were underway for the production of propellants, high 

*NOTE. Information by courtesy of Mr. J. W. Flavelle, Jan. 23, 1917. 


explosives, loading plants for fuses and forging plants, with one 
nearly completed, and the cost of the two factories placed at $4,- 
250,000. The Board also had a series of factories under construc- 
tion in connection with the proposed airplane service which would 
call for the expenditure of about $15,000,000. A final credit to 
the Board of $50,000,000 granted by the Banks on Dec. 29 made 
the amount of Canadian advances in this connection $250,000,000. 
As to the total production of Munitions there were various state- 
ments. The Canadian correspondent of the London Times, in a fin- 
ancial review of 1916, put the actual value of war contracts placed 
in Canada by the Allied Governments at $1,000,000,000, with 
domestic war orders totalling $100,000,000. The Prime Minister in 
the Commons* quoted the Chairman of the Munitions Board as 
responsible, for the statement that at the close of 1916 there were 
304,000 persons working in connection with Munitions and 630 fac- 
tories, chemical plants and loading stations under operation, with 
contracts in hand for 1917, and including aeroplanes, which totalled 
$700,000,000. The Toronto News put the figures of total produc- 
tion at $1,097,000,000 which was an acceptance of those previously 
compiled by the Monetary Times of Toronto and shown in the fol- 
lowing tables: 

Shells, fixed ammunition, etc. . .Aug., 1914-Dec., 1916 $365,000,000 

Shells, ammunition, etc Jan. -Sept., 1916 185,000,000 

Shells, ammunition, etc Sept.-Dec., 1916 (estimated) 50,000,000 

General Supplies Aug., 1914-Dec., 1915 235,000,000 

General Supplies Jan.-Dec., 1916 260,000,000 

Total .' $1,095,000,000 

The Ross Rifle question was one which affected the 
The t Ro88 A R-fl iP8S P P u ^ ar ^ v ^ Sir Sam Hughes, as Minister, to a con- 
and Canadian* siderable extent during this and preceding years. At 
Aviation Efforts the same time the subject was too technical for the 
masses to understand, while opinion was divided 
amongst officers and, curiously enough in Canada, amongst politi- 
cians on non-party lines; the soldiers at the Front appear to have 
early lost confidence in it as a war weapon. From the beginning of 
the War constant consideration had been given to this arm by the 
Militia Council, by officers in England, by the Commanders in 
France, by the Canadian Government, and even the British Gov- 
ernment had from time to time to answer or evade questions in 
Parliament. The original contract had been made in 1902 by Sir 
F. W. Borden, Minister of Militia in the Laurier Government, 
with Sir Charles Ross, Bart., with a view to manufacturing a 
national service arm for Canada. Dated Mar. 27 this document 
declared that : 

It is considered in the general interest of Canada that the rifles required 
by the Government for the purposes of Militia and Defence should be 
manufactured in Canada and, whereas, the Contractor has proposed by him- 
self, or his assigns, to undertake the establishment and operation of a 
suitable factory in Canada for the manufacture of such rifles, and to supply 
the Government with the rifles so required, manufactured at the said factory 

*NOTK. Jan. 22, 1917. 



and delivered at a cost to the Government not exceeding that which the 
Government would have to pay for similar rifles purchased by or for the 
Government as heretofore in the English market. 

A factory was to be established (and was duly erected) near 
Quebec ; 12,000 rifles yearly were to be delivered to the Government 
equal to "a standard sample rifle approved by the Minister"; the 
Government was to "be bound and entitled to purchase from the 
Contractor all rifles required for the use of the Government during 
the continuance of this contract." The Government was to "pay 
for the said 12,000 rifles mentioned in the second clause of this 
contract at the rate of $25 for each such rifle" subject to this 
price not being in excess of current English rates; if a new and 
improved rifle were to be invented which the Government ap- 
proved the latter "may furnish to the Contractor a standard 
sample of such new rifle and give the Contractor 12 months' notice 
in writing requiring that the rifles to be delivered by the Contractor 
shall correspond to the standard sample of such new rifle so 
furnished." When the Borden Government came into office in 
1911 they found this contract standing and the rifles under con- 
tinuous construction with a newly appointed Minister of Militia 
who had supported the original contract and strongly endorsed the 
rifle itself. Hence no year's notice of termination was given and 
when the War came it probably was not even thought of. 

Rifles were needed badly in England as well as Canada, and 
though these had never been tested in war they had been found 
excellent in target practice and hunting. Hence the first Can- 
adian troops were naturally armed with them through an order 
given by the new Minister on Nov. 3, 1911, for a modified form of 
the Ross known as Mark III, while 100,000 were ordered by the 
British Government of which 48,000 had been delivered by the 
close of 1916. Up to Mar. 31, 1915, the Ross Rifle Co. of which 
Sir Charles Ross was President and in which he absolutely denied 
that Canadian public men and others had any financial interest* 
had delivered 149,023 rifles to the Canadian Government at an 
estimated cost of $5,487,423. As time passed many minor changes 
had been made in the construction of the rifle itself under specific 
recommendations of the Small Arms Committee at Ottawa, and on 
July 9, 1915, following recommendations from P. M. Sir John 
French, the Militia Council approved the enlargement of the Ross 
Rifle chambers to suit British ammunition and instructions were 
issued accordingly. There had, meanwhile, been many rumors as 
to the rifle and, in particular, about its "jamming" qualities. 

General Hughes maintained his absolute faith in it and believed 
any troubles which had arisen to be due to defective British am- 
munition and, it was alleged, the Princess Patricia's who were 
armed with Lee-Enfields also had trouble with the ammunition. 
From the Canadians of the 1st Division after St. Julien and Festu- 
bert, however, (where Canadian ammunition was used) and Giv- 

*NOTE. In a letter to Ottawa Citizen, Jan. 4, 1917, Sir Charles stated that "there 
is no joint stock company, there are no shares, nor has anyone in Canada any interest 
in my business." 


enchy, came many complaints of the Ross Rifle, while some time 
afterwards (June 13, 1915) F. M. Sir John French stated in a 
Report to the War Office that in view of rumours as to increasing 
lack of confidence in the Rifle he had appointed a small expert Com- 
mittee to test it with various kinds of ammunition and they had 
reported (1) that the Ross Rifle could not be relied upon to work 
smoothly and efficiently in rapid fire with any ammunition other 
than that of Canadian manufacture; (2) that no ammunition of 
this nature was available nor could sufficient supplies be obtained ; 
and (3) that there was obvious dissatisfaction felt with the rifle. He, 
therefore, had ordered the re-arming of the Division with the Lee- 
Enfield and this had been done prior to the action of June 15. He 
would be glad to have further tests made with Canadian ammuni- 
tion, if desired. As to the rest : * ' I have never condemned the Ross 
rifle nor have I any sufficient data to justify me in doing so." 

Following the changes in the chambers the rifle was submitted 
to special tests in England and Sir Max Aitken, who witnessed 
them, Lieut.-Col. E. Prismal, a British expert officer, Capt. C. H. 
Ackerman, a .Canadian from the Front, Ma j. -Gen. J. C. MacDougall 
of the Canadian forces and Maj.-Gen. S. B. Steele, C.B., stated that 
the results were quite satisfactory.* On Mar. 30, 1916, however, 
the Prime Minister cabled Sir George Perley to ascertain if Lee- 
Enfields or some other improved rifle could be obtained for the 
troops and was advised that the British Government could not 
spare any at that juncture. Then, on May 17, the Ottawa Citizen 
published a letter written in March, 1916, by Maj.-Gen. E. A. H. 
Alderson, C.B., Commander of the Canadian troops at the Front, 
which created a sensation at Ottawa and revived the whole issue. 
Though not stated at this time it afterwards transpired that the 
letter had been addressed to Maj.-Gen. W. G. Gwatkin, Chief of 
Staff, and its chief points were as follows : 

I may say that very soon after we got out here with the 1st Division 
I found that the men were picking up the Lee-Enfields whenever they could 
and throwing away the Bosses. I issued an order that this was not to be 
allowed, and prior to the 2nd Battle of Ypres that order was carried out. 
The experience of the battle showed that the Boss jammed so badly that I 
was obliged to let this order die a natural death. When the Division was 
re-armed with the Lee-Enfield the men cheered loudly on hearing the news, 
and it was found that there were already more than 3,000 of the rifles in 
the Division. 

I attach a copy of a report on the test of ammunition we had when 
Carson and Max Aitken were last here together. From this you will see that 
the Lee-Enfield fired from 100 to 125 rounds, as rapidly as possible, with all 
three marks of ammunition named, while the Boss jammed from the 25th to 
the 50th round. This report, which as you will see was signed by both 
Carson and Aitken, does not state, as it should, that the Lee-Enfield, although 
handled by men not trained to it, fired its 100 rounds in about one-third 
less time than the Boss. 

In the Commons on May 17 Sir Robert Borden announced that 
he had (May 15), two days before the Alderson letter was published, 
cabled the Commander-in-Chief at the Front, asking him to make 

*NOTE. Semi-official press despatch from Ottawa, May 22, 1916. 



a thorough camparative test of the Ross and Lee-Enfield Rifles ; on 
June 5 he cabled Sir Win. Robertson, Imperial Chief of Staff, 
asking for these tests and leaving further action to the military 
authorities ; on the same day he asked Sir George Perley to ascertain 
if any recent rifle improvements had been obtained by the British 
Government and stated that "if new type of rifle has been finally 
adopted we are prepared to adopt it if found satisfactory, so that 
our rifle in future will be of same type as British. In that case 
British order for Ross rifles might be cancelled and new order for 
100,000 rifles new type given instead." The Acting High Com- 
missioner replied on the 8th that War Office would not commit 
itself as to an after-war rifle but would be glad if Dominion Gov- 
ernment would adopt the new Lee-Enfield pattern then under 
manufacture in th* United States. On the 24th Sir Robert, who 
appears to have taken over this matter entirely from his Minister 
of Militia, cabled Sir George Perley, again, asking for "definite, 
reliable and thorough report on the merits of rifle." The reply 
came on July 5: 

Have communication from War Office covering letters recently received 
from Commander-in-Chief Armies in France who reports efficiency Boss rifle 
thoroughly tested by actual fighting in field, that he has again consulted 
General Officer Commanding Second Army in case fresh points have come to 
light during recent heavy fighting by Canadians near Ypres. Latter states 
his experience working Eoss rifle during last fight has only confirmed hii 
opinion that Canadians in 3rd Division have lost confidence in their rifle and 
he recommends that rifles this Division be exchanged. Sir Douglas Haig 
remarks that although reports from 2nd Division not to same effect he is of 
opinion Lee-Enfield should be issued to all three Divisions Canadian Corps. 
Army Council agree with this opinion and have his proposal to exchange 
rifles 2nd and 3rd Divisions for Lee-Enfield pattern and steps will be taken 
forthwith effect exchange. Army Council hope be able utilize Ross rifles 
released from France, also those in possession Canadian troops England, for 
other purposes connected with War. They would be glad if steps could be 
taken stop any more Eoss rifles being brought to England, it being understood 
they thereby make themselves responsible for supplying necessary rifles to 
Canadian troops on arrival here. 

The War Office also handed to Sir George Perley two Reports 
from Sir Douglas Haig (May 23 and June 21) in one of which he 
declared the Ross rifle "less trustworthy than the British arm" and 
advised the re-equipment of the two Divisions. By the llth of 
July this change had been effected. The 4th Division, which 
shortly afterwards went to the Front, were re-armed after their 
arrival. On Nov. 15, following, a Canadian Order-in-Council 
adopted for the purpose of future production in Canada the ap- 
proved Lee-Enfield rifle which was being produced for the British 
Government in the United States, but which had not yet been pro- 
duced in Great Britain. The great desirability was pointed out of 
the Rifle to be issued to the Canadian forces in future being the 
same in every respect as that to be supplied to the other forces of 
the British Empire. Meantime the orders under contract with the 
Ross Company, involving 97,000 for Canada and 57,000 for the 
British Government, were to be carried out. 

Sir Sam Hughes refused to fall in with criticisms of this much- 


discussed rifle and observed at Toronto on May 23: "Look at what 
a Highland battalion and two other regiments did at St. Julien. 
They held their position with very little change for four days 
against 100,000 of an enemy, equipped with machine guns. Yet our 
men had only the Ross arm. What more can a man ask of a rifle ? ' ' 
It must be noted, also, that the 1st and 2nd Canadian Divisions 
contained many ex-Service men who were familiar with, and natur- 
ally wanted, the Lee-Enfields ; there had been no stated demand 
from the 3rd Division for any change. To General Alderson who 
retired shortly afterwards from the command of the Canadian 
forces the Minister wrote one of his characteristic letters on Mar. 
7. He stated that Gen. Gwatkin had shown him the letter quoted 
above and that he was "well aware that very few officers, British 
or Canadian, know much about any rifle, especially a new one like 
the Ross;" that the Lee-Enfield jammed far worse and more fre- 
quently than the Ross and that the whole trouble, which he termed 
criminal, was due to bad ammunition; that the "amateur" tests 
supervised by Gen. Alderson and others really showed the super- 
iority of the Ross even with * ' bad ammunition ' ' ; that ' ' your em- 
phatic energy might better be directed to having your officers of 
every grade responsible in the premises to make sure that none of 
the defective ammunition again finds its way into the Canadian 
ranks." After that there was only one course for Gen. Alderson 
to take, and he took it. 

Aviation called for a select and limited number of men; it 
required special aptitudes and training. As a military arm in 
Canada it had during 1915 no strong official support as the Minis- 
ter of Militia was understood not to care for this branch of the 
Service in comparison with others. During that year there had 
been tentative private efforts at organization and training and the 
raising of the necessary funds ; an active class of young men were 
anxious to take up aviation and a movement along this line was 
energetically pressed by Col. W. Hamilton Merritt of Toronto. It 
was understood that the British War Office wanted aviators and 
individual Canadians who went over from time to time soon found 
a place in the British service when its requirements were met. Col. 
Merritt wrote the War Office as to his efforts to organize a Canadian 
Fund for the purpose of training aviators, which he had started 
months before, and a reply of Feb. 18, 1916, stated that his scheme 
should prove of ' ' material assistance ' ' and that ' ' on completion of 
their training in Canada, these men would be enlisted in the Royal 
Flying Corps as 2nd-class air mechanics, draw pay as such at the 
rates provided in the royal warrant for pay, etc., and be granted 
free passage." Meanwhile Lieut.-Col. C. J. Burk, D.S.O., had been 
sent to Canada to make extensive first-hand inquiries regarding the 
possibility of training young Canadians to become military and 
naval aviators. He had travelled from coast to coast making in- 
spections, and on his return to London early in 1916 was under- 
stood to have reported favourably upon the proposals of Col. Mer- 
ritt and others in Toronto, Winnipeg and Vancouver who had been 
specially anxious in the matter. 


Revived efforts followed with the appointment of a Committee 
in Toronto (A. G. C. Dinnick, Chairman) to arrange the establish- 
ment of a local Training School ; the collection of a Fund in Van- 
couver to help the B. C. Aviation School in the purchase of 5 
aeroplanes then under local construction ; a statement dated Mar. 
16 from H.R.H. the Governor- General that "he endorses the War 
Office letter to the effect that if you train 5 to 10 candidates per 
month for the Royal Flying Corps, who are under 30 years of age, 
medically qualified, of proved British birth and obtain a flying 
pilot's certificate, they will be accepted for enlistment in the Royal 
Flying Corps during the War." It was, however, pointed out by 
Col. E. A. Stanton in the same letter that "this has nothing to do 
with a future Canadian Flying Service, as His Royal Highness 
understands that the Canadian Government does not contemplate 
any such department at present." On May 12 the Naval Services 
Department announced from Ottawa that the Admiralty was call- 
ing for a limited number of trained aviators from Canada for com- 
missions in the Royal Naval Air Service, and that, with a view to 
providing training, the Curtis Aviation School would be re-opened 
in Toronto. Canadian aviators wishing to enter the service were 
requested to apply to the Department and the age limits of can- 
didates were set at 19 to 25 years. Only well-educated, athletic 
and thoroughly fit men, with excellent eye-sight, could be accepted. 
A month later nine casualties were announced amongst the 400 
or more Canadian Aviators already in the British service. 

Meantime the Curtiss Flying School of Aviation had been under- 
way with 5 men a month in training at a payment of $1,000 each 
and, on July 13, a Deputation headed by Col. Merritt and Mayor 
Church asked the Ontario Government to either aid in the estab- 
lishment of an Inter-Provincial School at Deseronto or join the 
Dominion Government in granting $100 to each student upon com- 
pletion of his course ; the City Council granted $8.00 a week to each 
student from Toronto preparing for the Royal Flying Corps; the 
British Government guaranteed $375 of his expenses to each 
accepted aviator. During the summer the movement extended and 
from London came a cable on Aug. 23 to the Montreal Gazette 
stating that "the establishment of a Canadian Flying Corps is 
urged not only for military utility but for commercial benefits, as 
it would mean a new industry for Canada, the proposal being to 
build the aeroplanes in the Dominion." It was added that 8 Can- 
adian Flying officers were on their way to Canada to act as in- 
structors. The Aviators in training at Long Branch, near Toronto, 
were inspected by H.R.H. the Duke of Connaught on Sept. 7 and a 
statement of work done and progress made by the Canadian Avia- 
tion Fund was read by Col. Hamilton Merritt who, also, urged the 
presentation by each Canadian Province of a squadron of 10 
Battle-planes to the Royal Flying Corps. At the end of this month 
Capt. Lord Alastair Innes-Ker, D.S.O., arrived in Canada to recruit 
for officers and men in the Military branch of the Service and he 
visited Ottawa, Toronto, Montreal, Winnipeg, Regina, Calgary, 
Vancouver and Victoria. 


Matters moved swiftly after this. -Mr. Premier Hearst of On- 
tario returned from England in October strongly favourable to the 
establishment of a Canadian Corps and it was announced about 
the same time that an Aeroplane factory costing $1,000,000 and 
equipped to turn out 6 machines a month was to be erected in 
Toronto with advance contracts of purchase from the British Gov- 
ernment. The project was to be financed by the Imperial Govern- 
ment, and controlled by a Board of three members one represent- 
ing the Admiralty, one the War Office, with a business man nomin- 
ated by the Imperial Munitions Board of Canada. It was under- 
stood that this action was taken as the result of a careful inquiry 
made in which the Board found that very large orders for aero- 
planes had been placed in the United States $12,000,000, for 
instance, with the Curtiss Company of Buffalo. On Nov. 24 it 
was stated that Canadian Aeroplanes, Ltd., a creation of the Board, 
had been organized with a capital stock of $500,000 for the purpose 
of taking over the Curtiss Aeroplane Co. plant in Toronto. Frank 
W. Baillie of the Canadian Cartridge Co., Hamilton, who had given 
to the Government $750,000, representing profits on war orders, 
was appointed Managing-Director. 

J. W. Flavelle, E. R. Wood and Mr. Baillie were the men 
chiefly associated with the project which would, in time, involve 
many millions of capital and expenditure. In December the Naval 
Services Department called for more Canadian aviators for the 
Royal Naval Air Service and also for Canadian recruits as Naval 
Signallers and an Aero Club of Canada was formed, in touch with 
the Royal Flying Corps, with Col. Hamilton Merritt as President, 
Lieut.-Col. H. C. Cox, Toronto, Vice-President for Ontario; Carl 
Riordon, Montreal, Vice-President for Quebec; W. R. Allan, Win- 
nipeg, Vice-President for Manitoba. Its objects were as follows: 
"To encourage various forms of aviation, to develop the science of 
aeronautics and kindred sciences, to encourage the manufacture of 
aeronautic devices, to plan conferences, expositions and contests, 
to issue pilots' licenses to qualified aviators, and to assist those 
desirous of taking up aviation with a view to serving in the War. ' ' 
The year closed with a complete Squadron of Canadian airmen 
at Belfort in France and other Canadian aviators in Mesopotamia, 
on the Somme, at Dunkirk and in East Africa. In Montreal the 
Canadian Division of the Aerial League of the British Empire 
continued in 1916 its active work with Sir H. S. Holt as President 
and G. R. Lighthall Hon.-Secretary. 

The year 1916 began with a record for recruiting 
Military Affairs: wn i c h coloured public thought and influenced Gov- 
concNtu>ns eminent action throughout its course. Certainly, the 
and Policy response to the appeal of patriotism in the first three 
months of the year, the immediate reply to Sir Robert 
Borden's call* for 500,000 men, was splendid. During January 
29,212 men enlisted in all Canada, in February 26,658 enlisted, dur- 

*NOTE. See 1915 volume for the Premier's Address to the People on Dec. 31st of 
that year. 


ing March 32,705 joined the ranks a total of 88,575, or over 1,000 a i 
day if Sundays were excluded. About this time (Mar. 20- Apr. 28) l 
the United States, with its 100,000,000 population was recruiting 
at high pressure for possible Mexican service, under the Hay 
Emergency Act of the late Congress, and obtained 5,417 soldiers 
or 150 a day. The rejections were 18,442. In Manitoba and Sas- 
katchewan during these months 14,000 men enlisted; in Toronto, 
on one day (Feb. 14) 574 men offered and on another day (Jan. 
31) 328 were accepted ; at Perdue, Sask., out of a total population of 
500, 87 men had answered the call by the middle of this year; in 
Firdale, Man., and its surrounding territory there was not at the 
close of March an unmarried man remaining. The next two months 
were not quite so good and ran about 800 a day for the whole coun- 
try with a total of 334,000 on June 1st as against 207,000 on Jan. 
1st. Taking the total of June 1st and utilizing other official figures* 
the following table indicates the situation: 

Ages 18 to 45 
Prince Edward . . . 
Nova Scotia 
New Brunswick . . . 




Total Proportion of Enlisted to 
Eligible 500,000 June 1, 1916 
16,868 1 
98,498 V 63,000 31,061 
68,710 j 
390,897 139,000 34,908 
582,246 185,000 138,491 

llllfl } 60 > 000 68 ' 858 
122,915 26,000 30,709 
158,272 27,000 30,709 

Saskatchewan .... 
British Columbia . 

Totals 1,109,383 306,377 304,310 1,720,075 500,000 334;736 

It was little wonder that the Government was optimistic andl 
that talk of difficulties, Registration and Conscription was tabooed! 
during these months. Sir Sam Hughes began the year with this 
feeling and in announcing the Divisions apportioned to different 
parts of Canada on Jan. 5 expressed the greatest confidence as to 
completing the 500,000 within a few months. The allotment was 
as fallows : Toronto District, 5 Divisions ; Western Ontario, 2 Divi- 
sions; Eastern Ontario, 2 Divisions; Manitoba and Saskatchewan, 
3 Divisions ; Alberta, 2 Divisions ; British Columbia, 2 Divisions ; 
Quebec, 3, possibly 4, Divisions, and the Maritime Provinces 2 
Divisions. In an Ottawa interview on the 7th the Minister indi- 
cated this hopefulness very clearly in denying rumours as to adop- 
tion of the Derby method : * ' The Canadian scheme of recruiting on ; 
the straight voluntary basis is by all odds the best, and I donV 
intend to substitute any other scheme for the one which has brought 
such fine results in the Dominion and which continues to bring 
good results. . . . When we undertook to raise our second 
Division there were skeptics everywhere who shook their heads 
gloomily and said we could not do it. But we did it. When the 
second 100,000 was authorized we had more skepticism. But we 
raised that, and we will raise the number now authorized just in 
the same way, voluntarily and without compulsion or the semblance 
of compulsion." At the same time the Minister was blunt in his 
criticism of certain interests. He claimed that there were thousands 

*NTE. Census and Statistics Department, Ottawa. From the eligible total given 
there should be certain deductions such as 20% for unfit, etc. 


of young men of military age engaged in the banking institutions 
of the country who were being discouraged by their employers from 
enlisting ; as 3,500 had enlisted from the Banks up to this date and 
as these institutions were seriously inconvenienced for help long 
before the end of the year, the comment, appears to have been more 
hasty than just. He urged clergymen to assist in farming opera- 
tions and