ramed 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.

Meanwhile several sensational incidents cropped up in connection with
the negotiations, chief of which was the sending of a message to the
Berlin Foreign Office by Doctor Dumba, the Austrian Ambassador,
afterward recalled at the request of President Wilson, which was
represented as stating substantially that Mr. Bryan had intimated to the
Ambassador that the vigorous tone of the American notes should not be
regarded in Berlin as too warlike.

Secretary Lansing took office as Mr. Bryan's successor, and his reply to
the German note took issue with every contention Germany had set up in
the Falaba and Lusitania cases, denied flatly the contention that the
Lusitania was armed or was to be treated as other than a peaceful
merchant ship.

The note averred that the declaration of a submarine war zone could not
abbreviate the rights of Americans on lawful journeys, and added: "The
Government of the United States therefore very earnestly and solemnly
renews the representations of its note transmitted to the Imperial
German Government on May 15, and relies in these representations upon
the principles of humanity, the universally recognized understandings of
international law and the ancient friendship of the German nation."

JAGOW'S EVASIVE ANSWER.

To that note Germany did not reply until July 8, and the German
rejoinder was preponderately characterized by American newspapers not as
a note, but as an address by Foreign Minister von Jagow to the American
people. In official circles it was said to come no nearer to meeting the
American contentions than did the former German note.

The nature of the reply was regarded officially as convincing evidence
that Germany was holding the submarine warfare negotiations as a club
over the United States to force this Government into some action to
compel Great Britain to relax the food blockade. President Wilson
steadfastly refused to permit the diplomatic negotiations of the United
States with one belligerent to become entangled with the relations with
another.

To that the United States replied on July 21 that the German note was
"very unsatisfactory," because it failed to meet "the real differences
bet