THE STEEL QUESTION
Admiral von Capelle then dealt with the steel question as regards shipbuilding, which, he said, "is practically the determinative factor for shipbuilding." He continued:
"Great Britain's steel imports in 1916 amounted to 763,000 tons, and in 1917 only amounted to 497,000 tons. That means that already a reduction of 37 per cent. has been effected, a reduction which will presumably be further considerably increased during 1918. Restriction of imports of ore from other countries, such as America, caused by the U-boat war will also have a hampering effect on shipbuilding in Great Britain. It is true that Sir Eric Geddes denied that there was a lack of material, but expert circles in England give the scarcity of steel as the main reason for the small shipbuilding output.
"American help in men and airplanes and American participation in the war are comparatively small. If later on America wants to maintain 500,000 troops in France, shipping to the amount of about 2,000,000 tons would be permanently needed. This shipping would have to be withdrawn from the supply service of the Allies.
"Moreover, according to statements made in the United States and Great Britain, the intervention in the present campaign of such a big army no longer comes into consideration. After America's entry into the war material help for the Entente has not only not increased, but has even decreased considerably. President Wilson's gigantic armament program has brought about such economic difficulties that America, the export country, must now begin to ration instead of, as it was hoped, increasingly to help the Entente. To sum up, it can be stated that the economic difficulties of our enemies have been increased by America's entry into the war."
"ENGLAND'S DANGER POINT"
Later in the debate Admiral von Capelle said: "The salient point of the discussion is the economic internal and political results of the U-boat war during the coming months. The danger point for England has already been reached, and the situation of the western powers grows worse from day to day."
Admiral von Capelle then briefly dealt with that calculation of the world tonnage made by a Deputy which received some attention in the Summer of last year. "This calculation," he said, "shows a difference of 9,000,000 tons from the calculation of the Admiralty Staff. In my opinion, the calculation of the Admiralty Staff is correct. Whence otherwise comes the Entente's lack of tonnage, which, in view of the facts, cannot be argued away? The Admiralty Staff in its calculation adapted itself to the fluctuating situation of the world shipping. At first each of the enemy States looked after itself. Later, under Great Britain's leadership, common control of tonnage was established."
Admiral von Capelle quoted the calculation of the American Shipping Department, according to which the world tonnage in the Autumn of 1917 amounted to 32,000,000, of which 21,000,000 were given as transoceanic. He insisted, however, that so much attention must not be paid to all these calculations, but exhorted the people rather to dwell on the joyful fact that the danger point for the western powers had been reached.
At the close of the sitting Admiral von Capelle stated that all orders for the construction of U-boats had been given independently by the Naval Department and that the Naval Administration had never been instructed to give orders for more U-boats by the Chancellor or the Supreme Army Command. Every possible means, he said, for the development of U-boat warfare had been done by the Naval Department.