Net deficit due to war 18,062,088

In August, deliveries to the Shipping Board and other seagoing construction in the United States for private parties passed allied and neutral destruction for that month. The figures:

Gross (Actual) Tone
Deliveries to the Shipping Board 244,121
Other construction over 1,000 gross 16,918
Total 261,039
Losses (allied and neutral) 259,400
America alone surpassed losses for month by 1,630

NOTE.—World's merchant tonnage, as of June 30, 1914, totaled 49,089,552 gross tons, or, roughly, 73,634,328 deadweight tons. (Lloyd's Register.)

The climax to Germany's piratical submarine adventure took place a few days after the armistice, when a mournful procession of shamefaced-looking U-boats sailed between lines of English cruisers to be handed over to the tender mercies of the Allied governments.

CHAPTER XXXVI

CHINA JOINS THE FIGHTING DEMOCRACIES

The circumstances connected with the entrance of the Republic of China into the World War were as follows: On February 4, 1917, the American Minister, Dr. Reinsch, requested the Chinese Government to follow the United States in protesting against the German use of the submarine against neutral ships. On February 9th Pekin made such a protest to Germany, and declared its intention of severing diplomatic relations if the protest were ineffectual. The immediate answer of Germany was to torpedo the French ship Atlas in the Mediterranean on which were over seven hundred Chinese laborers. On March 10th the Chinese Parliament empowered the government to break with Germany. On the same afternoon a reply was received from the German Government to the Chinese protest, of a very mild character. The reply produced a great deal of surprise in China.

A Chinese statesman made this comment on the German change of attitude: "The troops under Count Waldersee leaving Germany for the relief of Pekin were instructed by the War Lord to grant no quarter to the Chinese. On the other hand, the latter were to be so disciplined that they would never dare look a German in the face again. The whirligig of time brings its own revenge, and today, after the lapse of scarcely seventeen years, we hear the Vossiche Zeitung commenting on the diplomatic rupture between China and Germany, lamenting that even so weak a state as the Far Eastern Republic dares look defiantly at the German nation."

The breaking off of relations with Germany led to trouble between the President of the Republic and the Premier. The Premier desired to break off relations without consulting Parliament. The President insisted that Parliament should be consulted, which was actually done. The next move was to declare war, but here the Chinese statesmen hesitated, and their hesitation arose through their feeling toward Japan.