Some Germans have asked me if the sending of a German "Colonel House" to America would be agreeable to the President. Probably the Envoy would be Solf, and he could talk informally to the President and prominent people. If sent he would require a safe conduct from England and France.

I hear the submarines now are mostly engaged in mine laying, at the mouth of the Thames.

Events are beginning to march. At first von Tirpitz's "illness" was announced, then came his resignation. Yesterday was his birthday and a demonstration was expected; there were many police out, but I could see no demonstrators. The row may come in the Reichstag.

There are two sources of danger; first, a failure at Verdun and the new food regulations may make people ready to accept Tirpitz's guarantee that if he is allowed his way the war can be won and ended. He has a large following already who favour this plan; second, there are some Reichstag members and others who think the Tirpitz people can never be reconciled unless there is a new Chancellor.

The Chancellor sent for me Friday. I think the Chancellor wants to keep peace with America and also wishes to make a general peace. He talked, or rather I talked, a little about terms. He still wants to hang on to Belgium, but I think will give most of it up; but is fixed for an indemnity from France. The loss of life here is affecting every one, the Chancellor is a very good man, and I think honestly desires an honourable peace.

Potatoes are restricted from to-day, 10 pounds per head in 12 days, not much, bacon and lard practically not to be had, butter only in small quantities and meat out of reach of the poor.

I told the Chancellor I thought a great source of danger to the good relations of Germany and U. S. A. was in Mexico, that if we had trouble there, had to raise a large army and rouse the military spirit at home, the President might find it hard to hold the people. This struck him as a new view, as most Germans think that Mexican troubles are to their advantage, and I am sure Villa's attacks are "made in Germany."

I shall not come home; both the Chancellor and von Jagow have begged me not to go.

I sent a cable about the possible stirring up of our coloured people by propagandists. I notice that there are great fires in many cities of the South.

It is reported that Prussian State Railways were given the banks as additional security for the last loan, but I do not see how this could be, as the railways are Prussian and the Loan Imperial.