, aside from giving needed
inspiration to the Allied forces, may be said to have had a decided
effect in Germany. While the German subjects are loyal, there has
developed in the country, as in every other country, a large element of
Socialists and progressives.

Something of a climax was reached in the affairs of the Hohenzollern
dynasty just when the United States troops were preparing to take their
places on the battle line in France and when the first of the
conscripted forces of the country were being summoned to the colors.

With a suddenness that startled the entire world, Dr. von
Bethmann-Hollweg, the German Imperial Chancellor, resigned on July 14,
thus ending his career as the spokesman of the Kaiser, which he had
maintained for a surprisingly long period. At the same time Dr. Alfred
Zimmermann, Foreign Minister, who was responsible for the correspondence
which revealed the fact that Germany was trying to induce Mexico and
Japan to form an alliance against the United States, also quit his post.

The resignation of the Chancellor came quite unexpectedly, for von
Hollweg, in the prolonged party discussion and heated debates of the
main committee of the Reichstag which had been in progress, seemed to
have triumphed over his opponents.

His opponents had been clamoring for his head, but he made concessions,
and by the declaration that Germany was fighting defensively for her
territorial possessions evolved a formula which for a time seemed
satisfactory to both those who clamored for peace by agreement and those
who demanded repudiation of the formula, "no annexation and no
indemnities." In this position Dr. von Hollweg was backed by the
Emperor.

The advent of the Crown Prince upon the scene--summoned by his imperial
father to share the deliberations affecting the future of the
dynasty--seems to have changed entirely the position with regard to the
Imperial Chancellor. The Crown Prince at once took a leading part in the
discussions with the party leaders, and his ancient hostility toward Dr.
von Bethmann-Hollweg, coupled with his notorious dislike for political
reform, undoubtedly precipitated the Chancellor's resignation.

APPOINTMENT OF DR. GEORG MICHAELIS.

The resignation of Dr. von Hollweg was followed by the appointment of
Dr. Georg Michaelis, Prussian Under Secretary of Finance and Food
Commissioner.

The fall of Theobald von Bethmann-Hollweg removed the last of the
statesmen who were in charge o