S. S. McClure of the good ship Nutty (Proprietor Ford), Herman Bernstein and Inez Milholland Boissevain, likewise of the crew, have been here. Their stories are most amusing. Apparently, now, the nuttiest have voted to remain a permanent committee at The Hague; salary (five thousand suggested) to each to be paid by Ford—with washing and expenses.

The Reichstag, sitting in "Budget Commission," is getting quite worked up over the censorship and the Socialists are demanding the freedom of the press.

Yesterday one member said he thought it would do the U. S. A. good if they knew what the Germans really thought of Americans.

The spy system here is very complete and even the President and Cabinet at home in America are surrounded. Heydebrand, leader of the Conservative Party, called the uncrowned King of Prussia, said yesterday in the Prussian Chamber that "America was among the worst enemies of Germany." I am convinced that Germany, as now advised, either will attack America or land in South America, if successful in this war. Falkenhayn, Chief of the General Staff, said, referring to America, "It is hard to stop a victorious army."

I have just returned from three days in Munich. I visited two prison camps and the American Red Cross Hospital in Munich and conferred with Archdeacon Nies (of the American Episcopal Church), who is permitted to visit Bavarian prison camps, talk to prisoners, and hold services in English. These Bavarian camps are under Bavarian, not Prussian, rule.

Munich seems lively and contented. I saw great quantities of soldiers there and at Ingolstadt.

I expect Colonel House about the 26th, and shall be very glad to see him.

Morgenthau was here for a day. I took him to see von Jagow, where we talked for an hour. Later, through some Germans, he met Zimmermann, who asked him if he did not think the German-Americans in America would rise in rebellion if trouble came between Germany and America.

Von Jagow was very explicit in saying that Germany had made no agreement with us about submarine commanders. He said distinctly that Germany reserved the right to change these orders at any time. On the general question, he again said that the submarine was a new weapon and that the rules of international law must be changed, apparently claiming the right for Germany to change these rules at will and without the consent of any other power involved.

Morgenthau sailed Sunday, the sixth, from Copenhagen. The newspapers to-day and last night print articles to the effect that the negotiations are taking a more favourable course.