have
been signed in July, which would have settled many things in respect to
Turkey and the Balkan states. Roumania and Servia were in agreement
concerning this great measure for peace in southeastern Europe.

When all was ready for the final conference and the signatures, Austria
intervened and announced her opposition. Then suddenly followed the
bombshell of the ultimatum to Servia, timed at the precise moment to
stop the signing of this Turkish treaty.

Austrian officials admitted privately as follows, and I have it
directly from parties to the negotiations:--

"We are satisfied that Servia would punish the murderers of Prince
Ferdinand if we so requested. We are satisfied she would apologize to
Austria if we requested it. But our aims go beyond. We demand that
instead of the proposed Turkish treaty the Balkan states shall come
into union with Turkey under the influence of Austria. To accomplish
this we must accept no apology, but must punish Servia. We are
satisfied that Russia is in no financial or military position to
interfere."

Germany with its enormous spy system had secured copies of the
confidential state papers of the Czar and transmitted them to Vienna.
In these were warnings, statistics, and compilations showing all the
financial and military weaknesses of Russia: that her great gold
reserve had been largely loaned out and was not available cash on hand,
as the world had been led to believe; that it would take eighteen
months more of preparation to place her military forces in position to
defend the country; that her arms and the factories to build them were
not ready.

The plans of Austria and Germany were to line up the Balkan states,
under German political and trade influences, and then within two years
to have it out with Russia and again impose the German tariffs upon
her. If France dared to come in, it would certainly be an attack, and
Italy would, under the Triple Alliance, assist to defend Austria and
Germany. Defeating Russia, Germany could, at that time or later, crush
France in the manner in which Bismarck had said she might eventually be
crushed by Germany for Germany's progress.

Then, having made more onerous tariff treaties with France than were
exacted from her in 1870 and having extended German trade and military
influence over Russia, Germany would be in a position with her navy to
try out the long desired issue with Great Britain for the control of
the seas.

Admiral