"For both," the master answered. "The main, though indirect, cause of this war is Germany's need for commercial expansion. The direct cause of the war is Austria's desire for revenge on Servia's plotting against her, which, in its turn, grew out of Austria's theft of the territory of Bosnia and Herzegovina.

"In this war, not only are great empires opposed, but two great international principles also are opposed. Belgium, France, and England hold the belief that international affairs can be regulated by honorable agreements, as between gentlemen. Germany holds the belief that international affairs can be regulated only by force, as between ruffians.

"Germany has always proclaimed the doctrine of 'blood and iron' or the policy that 'might makes right.' In accordance with this belief, Prussia has built up the greatest army the world has ever seen. She has done more, she has made militarism a part of the very fiber of the German soul. It is not the Mailed Fist which rules Germany, it is the Mailed Fist which is Germany. The Kaiser's Army, for the last dozen years, has been coiled like a snake, watching its chance to strike.

"Austria-Hungary is a ramshackle empire. Her people are disunited. Only one-third of her people are of Teutonic stock, though Austria is German in her rule. More than one-half of the population is Slav. The empire is a mass of disorganized units held together by force and since Austria lacks this force, she is compelled to depend on German force as an ally. Hence, whatever is done by Austria entangles Germany and Austria cannot take any action without Germany's permission."

"So that is where Germany comes in!" exclaimed Horace. "I begin to see, now."

"Next," continued the master, "consider Servia, a country about half as large again as Belgium. She gained her autonomy, under Turkey, a century ago. At the end of the Russo-Turkish War, by the Treaty of San Stefano, a strip of territory inhabited by Servians was given to Bulgaria. The Treaty of Berlin, supported by all the European Powers, declared Servia's independence but did not return the territory. For years Servia had struggled to get an outlet to the sea and when, after a sharp war, she succeeded, Austria opposed her and was backed by Europe. A Servo-Bulgarian war followed, in which Austria again intervened.

"In 1908, Austria, without rhyme or reason, annexed the great territories of Bosnia and Herzegovina, which had been put under her protection by the Treaty of Berlin. This act of national dishonor almost precipitated a European War. To Servia's ambitions it was a death-blow, for it placed Austria between her and the sea. The result is that Servia harbors a grudge against Austria which is not less than her hatred for her old master, Turkey."

"No wonder Servia was spoiling for trouble," said Horace, thoughtfully.

"Unfortunately, she was," the master agreed. "The Pan-Serbs, who think Servia ought to include Bosnia, Herzegovina, and Old Servia, have long been a thorn in Austria's side. The Austrian emperor, himself, in an address from the throne, stated that 'the flame of the hatred of Servia for myself and my house has ever blazed higher,' and he declared—not without reason—that 'a criminal propaganda has extended over the frontier.' It must be remembered, however, that this propaganda was Austria's fault, for she tore up the Treaty of Berlin in 1908 just as Germany tore up her treaty with Belgium the day before yesterday.

"Just a word, Monroe, about the 'balance of power.' In order for Europe to live at peace, no one nation or group of nations must be allowed to get too strong. Since Germany and Austria are allies, other nations must form defensive alliances, and one of the strongest of these was between France and Russia."