On February 20, in an identic note to Germany and Great Britain, the American Government suggested that both Powers cease their illegal activities. Such an agreement this Government proposed as a "modus vivendi" giving opportunity for further discussion of the points in controversy. Berlin accepted this note as "new evidence of the friendly feelings of the American Government," but reserved a "definite statement" of the position of the Imperial Government until it learned "what obligations the British Government are on their part willing to assume."

Subsequently, on March 28, the British steamship Falaba was sunk, with the loss of 163 lives, including one American. On April 28 the American steamship Cushing was attacked by an aeroplane, and on May 1 the American tanker Gulflight was attacked by a submarine and three United States citizens were lost.

On May 1, also, the German Embassy at Washington caused to be inserted in many of the leading American newspapers the now famous advertisement warning Americans and others from taking passage on the Cunard liner Lusitania, intimating that it would be attacked. This was the day the Lusitania sailed on her ill-fated voyage. A number of the prominent passengers received personal notes when they reached the pier, advising them not to go, but most of them scouted the thought of danger.

SUBMARINE ISSUE AND DIPLOMACY.

After the sinking of the Lusitania, on May 7, off Fastnet, Ireland, with the loss of more than 1100 persons, among them 115 Americans, the submarine issue assumed a large and gravely important place in the realm of diplomacy.

The accumulation of cases affecting Americans was taken up in the first "Lusitania note" to Germany, which was dispatched May 15, 1915. It characterized the attacks on the Falaba, Cushing, Gulflight and Lusitania as "a series of events which the United States has observed with growing concern, distress and amazement." It pointed to Germany's hitherto expressed "humane and enlightened attitude" in matters of international right, and expressed the hope that submarine commanders engaged in torpedoing peaceful ships without warning were in such practice operating without the sanction of their Government. The note closed with these words:

"The Imperial German Government will not expect the Government of the United States to omit any word or act necessary to the performance of its sacred duty of maintaining the rights of the United States and its citizens and of safeguarding their free exercise and enjoyment."

On May 28, 1915, Germany replied with a note which covered a wide range of argument and was in every respect unsatisfactory. It alleged that the Lusitania had masked guns aboard; that she in effect was a British auxiliary cruiser; that she carried munitions of war; that her owning company, aware of the damages she risked in the submarine war zone, was in reality responsible for the loss of American lives, and referred to the fact that the British Admiralty had offered large rewards to ship captains who rammed or destroyed submarines.

PROMISED TO PAY DAMAGES.

The note met none of the contentions of the United States so far as the Lusitania and Falaba incidents were concerned, although a supplementary note did acknowledge that Germany was wrong in the attacks on the Cushing and the Gulflight, expressed regret for these two cases and promised to pay damages. While the American reply to the note was being framed dissension in the Cabinet resulted in the resignation of Secretary Bryan, who contended for a policy of warning Americans off belligerent ships. He resigned because he thought he could not sign the next note to Germany, which he feared would lead the United States into war.