THE FIRST "LIBERTY LOAN"
On May 2, a few weeks after the United States entered the war, subscriptions were opened for the first block of $2,000,000,000 of the "Liberty loan" of $7,000,000,000 authorized by Congress in April. Great popular interest was evinced and all classes of the American people hastened to subscribe for the 3-1/2 per cent bonds, so that when the books were closed on June 15 it was found that the loan had been oversubscribed by $1,035,226,850 and the list of subscribers contained no fewer than 4,000,000 names. Most of the amount raised was used for loans to the Allies, to be expended in the United States for war munitions and supplies.
A war budget appropriating $3,340,000,000 for current expenses of the war was passed by Congress and signed by the President June 15; also an Espionage bill which among other important provisions gave the President power to place an embargo on all exports. On July 14 the House of Representatives passed an Aviation bill appropriating the sum of $640,000,000 for the construction and maintenance of an aerial fleet for home and foreign service.
FOOD CONTROL BILL PASSED
On August 10 President Wilson signed the Food Control bill adopted by Congress after prolonged debate, and he at once announced the formal appointment of Mr. Herbert C. Hoover as United States food administrator. Mr. Hoover, whose work as chief of the Belgian Relief Commission had made him world famous, stated the threefold objects of the food administration under the bill as follows:
"First, to so guide the trade in the fundamental food commodities as to eliminate vicious speculation, extortion, and wasteful practices, and to stabilize prices in the essential staples. Second, to guard our exports so that against the world's shortage we retain sufficient supplies for our own people, and to coöperate with the Allies to prevent inflation of prices; and, third, that we stimulate in every manner within our power the saving of our food in order that we may increase exports to our Allies to a point which will enable them to properly provision their armies and to feed their peoples during the coming winter."
INTERNAL HANDICAPS IN AMERICA
While the United States was busily engaged in raising its new national army, innumerable difficulties arose to be contended with by the Federal and State governments and local authorities. Not the least of these was caused by enemy propaganda of various kinds, designed to interfere with the success of the selective draft. Active opposition to the draft developed in many districts, especially in the Western states where the organization calling itself the "Industrial Workers of the World," notorious as the "I.W.W.," had a considerable following, including many aliens, and gave the State and municipal authorities much trouble. Attacks on munition plants, strikes, and incipient riots were frequent, until the Federal government declared its determination to meet all such demonstrations with the strong arm of the law. Pacifists and pro-Germans of various stripes did their utmost to retard war preparations, and caused much annoyance, without, however, preventing the steady march of the selected men to the training cantonments, where the first divisions of the national army gradually assembled. The presence in the country of so many aliens of enemy birth constituted a difficulty, but this had been foreseen and partly provided against, and the true American spirit of patriotism steadily prevailed over all obstacles to the successful prosecution of the war for humanity. Uncle Sam prepared to strike—and strike hard.
INTERNAL TROUBLES IN GERMANY
Meanwhile, internal troubles developed in the German empire. Weary of the war, with hopes of final victory dwindling month by month, a strong peace party arose in the Reichstag, committing itself to the policy of a peace without annexations or indemnities, and for a brief time the Reichstag refused to vote a war credit. This brought the Kaiser, Von Hindenburg, and Von Ludendorff in hot haste to Berlin, to exert the utmost possible pressure of the military party on the recalcitrants. For the time being their power prevailed, but the German Chancellor, Von Bethmann Hollweg, was sacrificed, together with the Foreign Minister and other leading officials of the empire. The Chancellor was succeeded by Dr. Georg Michaelis, a statesman of colorless and practically unknown quality, suspected of being a mere mouthpiece of the Kaiser, appointed to register his decrees and continue the policy of the autocracy in the conduct of the war. But many peace proposals came out of Germany during the summer and every possible German effort was made to break the solidarity of the Allies.