ng severely,
but not, perhaps, very much more severely than it was already suffering
before the 1st of February, when the new policy of the Imperial
Government was put into operation.

[Sidenote: American commerce suffers.]

We have asked the cooperation of the other neutral Governments to
prevent these depredations, but I fear none of them has thought it wise
to join us in any common course of action. Our own commerce has
suffered, is suffering, rather in apprehension than in fact, rather
because so many of our ships are timidly keeping to their home ports
than because American ships have been sunk.

[Sidenote: American vessels sunk.]

Two American vessels have been sunk, the _Housatonic_ and the _Lyman M.
Law_. The case of the _Housatonic_, which was carrying foodstuffs
consigned to a London firm, was essentially like the case of the _Frye_,
in which, it will be recalled, the German Government admitted its
liability for damages, and the lives of the crew, as in the case of the
_Frye_, were safeguarded with reasonable care.

The case of the _Law_, which was carrying lemon-box staves to Palermo,
discloses a ruthlessness of method which deserves grave condemnation,
but was accompanied by no circumstances which might not have been
expected at any time in connection with the use of the submarine against
merchantmen as the German Government has used it.

[Sidenote: Congestion of shipping in American ports.]

In sum, therefore, the situation we find ourselves in with regard to the
actual conduct of the German submarine warfare against commerce and its
effects upon our own ships and people is substantially the same that it
was when I addressed you on the 3rd of February, except for the tying up
of our shipping in our own ports because of the unwillingness of our
ship owners to risk their vessels at sea without insurance or adequate
protection, and the very serious congestion of our commerce which has
resulted--a congestion which is growing rapidly more and more serious
every day.

This, in itself, might presently accomplish, in effect, what the new
German submarine orders were meant to accomplish, so far as we are
concerned. We can only say, therefore, that the overt act which I have
ventured to hope the German commanders would in fact avoid has not
occurred.

[Sidenote: Indications that German ruthlessness will continue.]

But while this is happily true, it must be admitted that there have been
certain additiona