oes or shells.

"There is considerable discussion in official circles as to whether the
Chancellor's steps create a precedent, but it is agreed that it will
probably close all complications with America, including the
_Lusitania_ case, which remained unsettled following President Wilson's
last note to Germany.

"Thus if the United States approves the present attitude of the
Chancellor this step will aid in clearing the entire situation and will
materially strengthen the policy of von Bethmann-Hollweg and von Jagow,
which is a deep desire for peace with America."

After this despatch was printed I was called to the home of Fran von
Schroeder, the American-born wife of one of the Intelligence Office of
the General Staff. Captain Vanselow, Chief of the Admiralty
Intelligence Department, was there and had brought with him the
Manchester _Guardian_. He asked me where I got the information and who
had passed the despatch. He said the Navy was up in arms and had
issued orders to the General Telegraph Office that, inasmuch as Germany
was under martial law, no telegrams were to be passed containing the
words submarines, navy, admiralty or marine or any officers of the Navy
without having them referred to the Admiralty for a second censoring.
This order practically nullified the censorship powers of the Foreign
Office. I saw that the Navy Department was again in the saddle and
that the efforts of the Chancellor to maintain peace might not be
successful after all. But the conferences at Great Headquarters lasted
longer than any one expected. The first news we received of what had
taken place was that Secretary von Jagow had informed the Kaiser he
would resign before he would do anything which might cause trouble with
the United States.

Germany was split wide open by the submarine issue. For a while it
looked as if the only possible adjustment would be either for von
Tirpitz to go and his policies with him, or for von Jagow and the
Chancellor to go with the corresponding danger of a rupture with
America. But von Tirpitz would not resign. He left Great Headquarters
for Berlin and intimated to his friends that he was going to run the
Navy to suit himself. But the Chancellor who had the support of the
big shipping interests and the financiers, saw a possible means of
checkmating von Tirpitz by forcing Admiral von Pohl to resign as Chief
of the Admiralty Staff. They finally persuaded the Kaiser to accept
his resignat