In the Reichstag there has been only one real democratic party. That is the Socialist. The National Liberal Party, which has posed as a reform organisation, is in reality nothing more than the party controlled by the ammunition and war industries. When these interests heard that submarine warfare was to be so restricted as to be practically negligible, they began to sow seeds of discontent among the ammunition makers. These interests began to plan for the time when the submarine warfare would again be discussed. Their first scheme was to try to overthrow the Chancellor. If they were not successful then they intended to take advantage of the democratic movement which was spreading in Germany to compel the Government to consent to the creation of a Reichstag Committee on Foreign Affairs to consult with the Foreign Office when all questions of international policy, including submarine warfare, was up for discussion. Their first policy was tried early in July. Seizing that clause in the German note which said that Germany would hold herself free to change her promises in the Sussex case if the United States was not successful against England, the Navy began to threaten the United States with renewed submarine warfare unless President Wilson acted against Great Britain.

Reporting some of these events on June 12th, the Evening Ledger of Philadelphia printed the following despatch which I sent:

"BERLIN, July 12.--The overthrow of Chancellor von Bethmann-Hollweg, champion of a conciliatory policy toward the United States, and the unloosing of German submarines within three months, was predicted by von Tirpitz supporters here to-day unless President Wilson acts against the British blockade.

"Members of the Conservative party and those favouring annexation of territory conquered by Germany joined in the forecast. They said the opinion of America will be disregarded.

"A private source, close to the Foreign Office, made this statement regarding the attempt to unseat Bethmann-Hollweg at a time when the war is approaching a crisis:

"'Unless America does something against England within the next three months there will be a bitter fight against the Chancellor. One cannot tell whether he will be able to hold his own against such opposition. The future of German-American relations depends upon America.'

"Despite this political drive against the man who stood out against a break with the United States in the Lusitania crisis, Americans here believe Bethmann-Hollweg will again emerge triumphant. They feel certain that if the Chancellor appealed to the public for a decision he would be supported.

"The fight to oust the Chancellor has now grown to such proportions that it overshadows in interest the Allied offensive. The attacks on the Chancellor have gradually grown bolder since the appearance of Prince Buelow's book 'Deutsche Politik,' because this book is believed to be the opening of Buelow's campaign to oust the Chancellor and step back into the position he occupied until succeeded by Bethmann-Hollweg in 1909.

"The movement has grown more forceful since the German answer to President Wilson's ultimatum was sent. The Conservatives accepted the German note as containing a conditional clause, and they have been waiting to see what steps the United States would take against England.

"Within the past few days I have discussed the situation with leaders of several parties in the Reichstag. A National Liberal member of the Reichstag, who was formerly a supporter of von Tirpitz, and the von Tirpitz submarine policies, said he thought Buelow's success showed that opposition to America was not dead.