American vessels have been sunk, the _Housatonic_ and the _Lyman M.
Law_. The case of the _Housatonic,_ which was carrying food-stuffs
consigned to a London firm, was essentially like the case of the _Fry_,
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
_Fry_, were safeguarded with reasonable care. The case of the _Law_,
which was carrying lemon-box staves to Palermo, disclosed 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.

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 third of February, except for the tying
up of our shipping in our own ports because of the unwillingness of our
shipowners 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.

But, while this is happily true, it must be admitted that there have
been certain additional indications and expressions of purpose on the
part of the German press and the German authorities which have increased
rather than lessened the impression that, if our ships and our people
are spared, it will be because of fortunate circumstances or because the
commanders of the German submarines which they may happen to encounter
exercise an unexpected discretion and restraint rather than because of
the instructions under which those commanders are acting. It would be
foolish to deny that the situation is fraught with the gravest
possibilities and dangers. No thoughtful man can fail to see that the
necessity for definite action may come at any time, if we are in fact,
and not in word merely, to defend our elementary rights as a neutral
nation. It would be most imprudent