German generals insulted American military observers at the front and the U. S. War Department had to recall them.

These are Uncle Sam's indictments of the Kaiser.

Germany has outlawed herself among all nations.

CHAPTER XI

THE UNITED STATES AT WAR

When the German Emperor in his New Year's message said that victory would remain with Germany in 1917 he must have known that the submarine war would be inaugurated to help bring this victory to Germany. In May, 1916, Admiral von Capelle explained to the Reichstag that the reason the German blockade of England could not be maintained was because Germany did not have sufficient submarines. But by December the Kaiser, who receives all the figures of the Navy, undoubtedly knew that submarines were being built faster than any other type of ship and that the Navy was making ready for the grand sea offensive in 1917. Knowing this, as well as knowing that President Wilson would break diplomatic relations if the submarine war was conducted ruthlessly again, the Kaiser was a very confident ruler to write such a New Year's order to the Army and Navy. He must have felt sure that he could defeat the United States.

To My Army and My Navy! Once more a war year lies behind us, replete with hard fighting and sacrifices, rich in successes and victories. Our enemies' hopes for the year 1916 have been blasted. All their assaults in the East and West were broken to pieces through your bravery and devotion! The latest triumphal march through Roumania has, by God's decree, again pinned imperishable laurels to your standards. The greatest naval battle of this war, the Skager Rak victory, and the bold exploits of the U-boats have assured to My Navy glory and admiration for all time. You are victorious on all theatres of war, ashore as well as afloat! With unshaken trust and proud confidence the grateful Fatherland regards you. The incomparable warlike spirit dwelling in your ranks, your tenacious, untiring will to victory, your love for the Fatherland are guaranties to Me that victory will remain with our colours in the new year also. God will be with us further! Main Headquarters, Dec. 31, 1916. WILHELM.
THE KAISER'S NEW YEAR ORDER TO THE ARMY AND NAVY

Ambassador Gerard warned the State Department in September that Germany would start her submarine war before the Spring of 1917 so the United States must have known several months before the official announcement came. But Washington probably was under the impression that the Chancellor would not break his word. Uncle Sam at that time trusted von Bethmann-Hollweg.