tively, and to Great Britain 89,204 and 52,589 tons respectively*. On the other hand the Dutch import of German coal was reduced from over 14,000,000 tons in 1914 to 4,800,000 tons in 1916 and still less in 1917. Dutch war-profiteers, also, benefited largely by German demands and a part of the press by German propaganda. Smoked meats, butter, cheese, eggs, vegetables and fish went across the border until Holland itself was stripped of food.

Meanwhile, Britain was pressing Holland to restrict these shipments and Germany was refusing essential coal and iron unless they were continued. A Dutch Commission visited the United States in September to try and mitigate the American-British policy in this respect; an agreement between the Dutch Bureau of Agricultural Exports and the British Government had already arranged the proportion of such exports from Holland as being 50% each to the two opposing nations. Yet it was claimed that in 1916 the excess of Dutch food imports over home consumption was sufficient to provision 1,200,000 soldiers for one year. It was alleged that the waterways of Holland had been used in the transport of German military supplies for Belgium and through two years of British protest and official correspondence Holland was urged not to permit the Germans to ship copper, sand, gravel, and other war materials over Dutch waterways. In October an agreement as to trade and financial matters was announced between Holland and AustriaHungary; at the close of the year it was stated that during 1917 50,000 more men had been added to the Dutch army which in 1914 totalled 250,000 and was now probably half-a-million in numbera large force for 6,000,000 people to hold in leash!

Switzerland maintained its neutrality in 1917 with fear and difficulty and the added complication of a mixed population and a central position between the Powers at war. On Jan. 1 President Schulthess issued a statement that his country, though surrounded by four great nations at war, was faithful to its traditions and determined to maintain absolute neutrality: "The Swiss people, banded about their flag, are ready for every sacrifice to protect their independence, the integrity of their territory, their honour and national dignity. They are convinced that all their neighbours will respect their decision, but whatever happens, never will they allow a foreign army to invade their soil." From time to time German concentrations on or near the Swiss frontiers caused alarm but did not come to anything; more serious was the German failure at times to carry out pledges of monthly fuel delivery and the occasional closing of the frontier to exports from Switzerland or its imports of grain. In March Dr. Paul Ritter, Swiss Minister at Washington, and acting for Germany, came under suspicion in the United States for proGerman action in press propaganda; on Apr. 18 five large German battle-planes sailed over Swiss territory and notably Basle, and provoked anger by the repeated breach of neutrality thus involved. In June occurred the pro-German work at Petrograd of Robert Grimm, a Swiss Socialist, and the Peace moves of Herr Hoffman, "NOTE.-J. C. Van der Veer, London Editor of the Amsterdam Telegraaf, in New York Times.

then Swiss Foreign Minister, which aimed at bringing Russia and Germany together, and aroused Entente anger. Hoffman's resignation on June 19 was regarded with satisfaction. He had long been a strong pro-German influence in Switzerland and the German-Swiss press greatly deplored his fall. Julian Grande, a N.Y. Times correspondent at Berne, declared on June 23 that all through his career "Hoffman has been a German agent."

In October a Swiss Commission, headed by Prof. W. E. Rappard of the University of Geneva, visited the United States in connection with the embargo on food, for neutrals who were helping Germany, and he pointed out that before the War, Switzerland imported 80 per cent. of her coal from Germany, the rest from Belgium and France. Of her pig-iron 55 per cent. had come from Germany, with most of the remainder from France; nearly 75 per cent. of her imported wheat came from Russia and Roumania. In short, about three-fourths of Swiss imports had been foodstuffs and raw materials, while three-fourths of her exports had been manufactured articles. He stated that the maintenance of their armies had cost the Swiss during this war $150,000,000 and that Germany had made extraordinary efforts to gain Swiss sympathies.

Spain, of all European neutrals, suffered most from internal dissensions and, in 1917, the issues of monarchy and republicanism, pro-Germanism and pro-Ally principles, moderate Liberalism and Socialism, Conservatism and Catholic Church interests, were mingled together in wild confusion. Count Romanones, the Premier, was a warm friend of the Allies and a moderate Liberal. On Feb. 7 his Government protested strongly against the Submarine zone policy. At this time the Spanish Court, the Clergy and the Army were believed to be decidedly pro-German, while business interests, as in many other neutral countries, and the people generally, were considered anti-German. This condition, however, was modified by such elements as a partially pro-German press, a continuous German propaganda, the influence of many Germans living in the country and the divided views of Catholic priests who were not all German in opinion; a part of the Hierarchy, in fact, were pro-Ally and notably so the Archbishops of Tarragona and Saragossa. In March unrest was everywhere, strikes and sedition very general, with methods of strong suppression employed for a time. In May Senor Antonio Maura, head of the Conservative party, came out with a Manifesto against Britain and France and the declaration that Spain's proper place was beside Germany and Austria. He took the rather shrewd line of pointing out that Gibraltar, held by Britain, and Tangiers, owned by France, were originally Spanish possessions, and that "until those nations give an earnest of their regard for Spain by surrendering these territories, they cannot expect the friendship of Spain.

No doubt the new alignment of the United States had something to do with such bold expressions of view; there was little love for America amongst Spanish leaders. A change of Government followed and Edouardo Dato, ex-Premier, came into power. On Sept. 23 an interview with Count Romanones was cabled to London

in which he claimed that the Liberals of Spain must be and were with the British Allies. King Alfonso, though by inheritance an Archduke of Austria was believed to be pro-Ally but he was in a difficult position and had parties to hold in loyalty who were very far apart in opinions. These parties were divided into groups which favoured one or the other war alignment-the Duke of Alba, for instance, a great Conservative personage, was with the Entente; while Rodrigo Soriano, a republican leader, was an open German supporter, and Alcada Zamora, a leading member of the Dato Government, was also pro-German. The country was prosperous in many ways with the rich, however, growing richer and the poor poorer and a pressing shortage in food supplies. The following table gives a general view of European Neutrals in certain essential data:

South America and the War; Cen

and Mexico.

Influenced by the Submarine issue and by the action of the United States, Brazil, Ecuador, Peru, tral America Uruguay and Bolivia, in South America, severed relations with or declared war against Germany during 1917. So with Costa Rica, Guatemala, Honduras, Nicaragua in Central America, while the tiny republics of Panama, Cuba and Haiti declared war on Germany. The declaration of new war zones in January and proclamation of unrestricted Submarine war upon neutrals as belligerents, naturally stirred up these countries, and as they were so far away from the scene of war it was not a difficult matter to take hostile action. The countries mentioned, with Chile and the Argentine, comprised the most resourceful and best-governed regions of this half-continent.

Their products consisted largely of cotton, coffee, chocolate, sugar, tobacco, wheat and maize; their pastures were capable of producing the best beef in the world, their virgin forests teemed with precious woods, in the earth were immense quantities of gold, copper, silver, saltpetre, tungsten and coal; as nations the United States, just before and during the War, had commenced to seek bases for co-operation and exploitation amongst them; everywhere Germany also had been busy with political agents and commercial representatives, while Britain still held the bulk of their external commerce though in the year of June 30, 1917, South American exports to the United States had grown to $542,212,820 or an increase of 143% over 1914. Pan-Germanism was a factor, but still a nebulous one, and during the War was simply a finger-post to future possibilities. Mr. Justice Ford of the New York Supreme Court was one of those who preferred the Monroe Doctrine and PanAmericanism to sharing in the European War, and he pointed out on Jan. 18, in an address, that:

The Latin Republics produce the things we need and they need the things which we produce. They possess undeveloped resources in field, forest and mine which invite American capital now flowing in ever increasing streams to the four quarters of the globe. They have 60,000,000 inhabitants and a foreign commerce which in the year before the War amounted to $2,385,000,000. With the 21 American republics united for its defence, no foreign Power or combination of Powers would dare challenge the Monroe Doctrine and the peace of the hemisphere would be assured. South American countries so far had only flirted with these schemes; they were a little fearful of the ambition and pushfulness of the United States; the war conditions of 1917, however, threw all such issues into the melting-pot. Jealousies and anti-United States feeling remained but were greatly modified. Gradually, too, a perception of Germany's far-reaching plans and world-politics, its aggressions and ambitions in the Americas, as well as Europe, began to permeate the complex public mind of these nations. The United States, after its entry upon the War, published much war literature and circulated widely a hostile conception of German policy and and these arguments were pressed home by the Submarine issue, the Mexican and Argentine diplomatic revelations. On Dec. 4 a Black-list of 1,600 firms in Central and South America was announced by the United States Government and merchants forbidden to do business with them except under license.

Trade conditions were very similar in most of the South American countries. The German banks in several of them had increased their help to German customers after 1914 instead of curtailing it; Germans could not leave for purposes of enlistment as so many of the British had done, and their lines of business grew and prospered under war conditions; pernicious weaknesses in the British blockade system-chiefly concessions to United States neutrality and inadequate inspection of South American mails-enabled German firms to long continue their trade with Germany; the German South American Institute at Aix-la-Chapelle continued its propaganda and its policy of (1) control of news service and information for the South American press; (2) safe-guarding and advancement of German trade; (3) cultivation of scientific and artistic relations and the popularizing of German Kultur amongst the people by means of Spanish and Portuguese publications; (4) promotion of German civilization and language study. These and other German influences were everywhere.

Meanwhile Argentina in particular was in a state of heated discussion over Submarines; Pacifists and war advocates talked and rioted in Buenos Ayres during April with much net damage to German institutions and buildings; its Government endorsed the war action of the United States as being caused "by violation of the principles of neutrality, consecrated by rules of International law, which have been regarded as definitive conquests of civilization." When the United States Government made public (Sept. 8) the Luxburg telegrams* it created a great sensation in Argentina and elsewhere especially the "sink without trace" advice, the reference to the Argentine Foreign Minister (July 7) as "a theatrical person" who had shown "insane cunning" in thwarting the writer,

*NOTE. See preceding Section relating to Sweden.

a statement of Aug. 4 that the "President holds with us" and on July 7 that in South America the people "under their veneer are Indians"; the statement of Aug. 24 that "public opinion is becoming unpatriotic" or anti-German.

On Sept. 25 the Chamber of Deputies at Buenos Ayres, by 53 to 18, directed President Irigoyen to break off relations with Germany and the Senate took similar action by 23 to 1; nothing serious was done, however, and German influence over Hypolite Irigoyen scored again. It had done so in the embargo on wheat exports a year before when there was an abundant supply in the country; now the excuse was that Germany had promised compensation for the previous sinking of the Toro, and on July 24, through Herr Zimmerman, had instructed Von Luxburg to make a general exception of the Argentine in Submarine action. At the close of the year there were angry demonstrations in the capital against Germany, the President, and the pro-German paper La Union-in connection with a further batch of Luxburg telegrams made public at Washington. Amongst these was a reference to a secret agreement of Argentina, Bolivia, and Chile against United States PanAmerican policies. Meantime Von Luxburg had been given his passports but was allowed to remain in the country-there being obvious difficulty in returning to Germany.

The Republic of Chile owed its original naval and military, political and intellectual, institutions largely to France and England; in 1917 there were about 10,000 Germans in this country of 3,250,000 people and their work of commercial and general penetration was remarkable. A group of German officers, under General Korner, had re-organized and commanded the Army; German banks were established and German commercial firms were largely increased in number; the Chilean Government from time to time arranged for the coming of military instructors, learned Professors, or civil and railway engineers, from Germany. None-the-less, London remained the commercial and financial centre for Chile. When war came the German propaganda was active but in the end ineffective-though many branches of a German-Chilean League were formed with headquarters at Valparaiso. Brazil, the largest of these Republics, held a segregated settlement of Germans totalling about 500,000, controlling the Rio Grande and Santa Catarina Provinces with much influence, also, in Parana and Sao Paulo. They were progressive and prosperous, well-organized municipally after the German pattern, with up-to-date methods in agriculture and stock-raising. They held about 12,000 square miles-an area equal to that of Alsace-Lorraine and Saxony; they had tried to build a state within a state, and had carefully preserved their language, customs and institutions. Up to 1917 Dr. Lauro Müller, a native of German descent, was Foreign Minister of Brazil.

On the other hand the rest of the country was inclined to be pro-Ally; there were over a million Italians in the Republic and the native Brazilian was of Portuguese origin so that his inherited bias was toward England and her Allies; public feeling against Germany was keen at the announcement of its unrestricted Submarine policy