as being too proud to fight he
had, of course, meant that there was such a thing as being only too
proud to fight for what was just and right. This was the American
attitude, and he therefore advocated national preparedness which might
possibly imply such an increase in America's naval and military forces
as few people except himself had yet dreamt of. At this point the
audience rose _en masse_ and cheered for ten minutes. Nothing could show
more clearly than this speech how intensely critical are the relations
between America and Germany over the _Lusitania_ case. There has been a
wild panic on the New York Stock Exchange. A prominent banker has
expressed the opinion that Count BERNSTORFF will receive his passports
to-morrow.

II.

Count BERNSTORFF has not called on Mr. LANSING to-day. This is
considered a symptom of the utmost gravity, and the exchange value of
the German mark has receded ten points.

III.

Count BERNSTORFF was closeted with Mr. LANSING for two hours this
afternoon. Relations are evidently strained to a very dangerous point,
and the worst is feared.

IV.

The situation has appreciably improved, and the controversy has been
narrowed down to the use or omission of the word "illegality." The
American Government insist that Germany should admit the illegality of
the torpedoing of the _Lusitania_, but for this Germany is not yet
prepared, though she is willing to make a formal expression of regret at
the death of American citizens, whom, she is ready to declare, she did
not intend to destroy. Colonel ROOSEVELT spoke last night at the dinner
of the Associated Progressive Manufacturers. He said no touch of infancy
or feebleness had been omitted by the present Administration in their
conduct of negotiations with Germany. They had performed the miracle of
causing every true American to blush for his country. When you met a
rattlesnake you didn't waste time in arguing with it or flattering it.
Your duty was to shoot it or knock it on the head, or, preferably, to
employ both methods in order to rid the world of a danger. At this
vigorous denunciation the whole audience rose and cheered for a quarter
of an hour.

V.

The situation is easier. Count BERNSTORFF has declared in an interview
that the German Government is prepared to accept the American formula if
the word "legality" be substituted for the word "illegality." Germany
would thus admit the legality of the torpedoing of the _Lusitania_ and
ex