American citizens or British subjects were allowed to remain in France, except in the regions on the eastern frontier and near certain fortresses, provided they made declaration to the police and obtained a special permit.

As to Italy’s situation, Rome was quite calm and the normal aspect made tourists decide that Italy was the safest place. Austria’s note to Serbia was issued without consulting Italy. One point of the Triple Alliance provided that no member should take action in the Balkans before an agreement with the other allies. Such an agreement did not take place. The alliance was of defensive, not aggressive, character and could not force an ally to follow any enterprise taken on the sole account and without a notice, as such action taken by Austria against Serbia. It was felt even then that Italy would eventually cast its lot with the Entente Allies.

Secretary of the Treasury William G. McAdoo; John Skelton Williams, Comptroller of the Currency; Charles S. Hamblin and William P. G. Harding, members of the Federal Reserve Board, went to New York early in August, 1914, where they discussed relief measures with a group of leading bankers at what was regarded as the most momentous conference of the kind held in the country in recent years.

The New York Clearing House Committee, on August 2d, called a meeting of the Clearing House Association, to arrange for the immediate issuance of clearing house certificates. Among those at the conference were J. P. Morgan and his partner, Henry P. Davison; Frank A. Vanderlip, president of the National City Bank, and A. Barton Hepburn, chairman of the Chase National Bank.

CHAPTER III
Why the World Went to War

WHILE it is true that the war was conceived in Berlin, it is none the less true that it was born in the Balkans. It is necessary in order that we may view with correct perspective the background of the World War, that we gain some notion of the Balkan States and the complications entering into their relations. These countries have been the adopted children of the great European powers during generations of rulers. Russia assumed guardianship of the nations having a preponderance of Slavic blood; Roumania with its Latin consanguinities was close to France and Italy; Bulgaria, Greece, and Balkan Turkey were debatable regions wherein the diplomats of the rival nations secured temporary victories by devious methods.

The Balkans have fierce hatreds and have been the site of sudden historic wars. At the time of the declaration of the World War, the Balkan nations were living under the provisions of the Treaty of Bucharest, dated August 10, 1913. Greece, Roumania, Bulgaria, Serbia and Montenegro were signers, and Turkey acquiesced in its provisions.

The assassination at Sarajevo had sent a convulsive shudder throughout the Balkans. The reason lay in the century-old antagonism between the Slav and the Teuton. Serbia, Montenegro and Russia had never forgiven Austria for seizing Bosnia and Herzegovina and making these Slavic people subjects of the Austrian crown. Bulgaria, Roumania and Turkey remained cold at the news of the assassination. German diplomacy was in the ascendant at these courts and the prospect of war with Germany as their great ally presented no terrors for them. The sympathies of the people of Greece were with Serbia, but the Grecian Court, because the Queen of Greece was the only sister of the German Kaiser, was whole heartedly with Austria. Perhaps at the first the Roumanians were most nearly neutral. They believed strongly that each of the small nations of the Balkan region as well as all of the small nations that had been absorbed but had not been digested by Austria, should cut itself from the leading strings held by the large European powers. There was a distinct undercurrent for a federation resembling that of the United States of America between these peoples. This was expressed most clearly by M. Jonesco, leader of the Liberal party of Roumania and generally recognized as the ablest statesman of middle Europe. He declared:

PROVISIONS OF THE TREATY OF BUCHAREST, 1913