Councils-which had been appointed by the Governor in each case to promote, pilot and supervise the war activities of the State represented; the Report of A. Mitchell Palmer, Alien Property Custodian (Dec. 31, 1917) that he was in control of and liquidating Alien trusts valued at $134,605,231-including Enemy Insurance Companies with gross assets of over $40,000,000; the establishment on May 1 of a censorship upon cables, telegraphs and telephones, the application of cable prohibitions to all lines, and operation against telegraphs and telephones along the Mexican border. On Aug. 27 the President issued an Order forbidding the shipment of any goods to European neutral countries except under license, and largely extending the lists for which license was required; on Oct. 14 the President placed the censorship of mails, cables, radio and telegraph messages passing out of the United States in the hands of a Censorship Board, consisting of representatives of the War, Navy and Postoffice departments, the War Trade Board, with George Creel, Chairman of the Committee on Public Information; vast stores of cotton, steel, copper, nickel, leather, oil, chemicals and other war necessaries purchased in the United States by German agents before the Republic entered the War and since held in their names by American brokers were taken over by the Government on and after Oct. 22.

Other matters included the opening on Oct. 30 of the great store of German scientific information in the country to American. manufacturers through the Federal Trade Commission licensing enemy-owned patents and copyrights for use by citizens of the United States; the issue, on Dec. 5, of an American black-list of 1,600 firms in 20 Central and South American countries, with whom merchants of the United States were forbidden specifically to do business except under special license; the fact that amongst the volunteers for Army or Navy in the United States were three of ex-President Roosevelt's sons, one of ex-President Taft's, Sergt. Marshall Field of Chicago, whose fortune was estimated at $300,000,000, and Gnr. Junius S. Morgan, son of J. P. Morgan of New York, while Edsel Ford, son of the motor magnate, had fought bitterly for exemption under the Selective Draft and carried his appeal up to the President.

and Propa

The greatest and cleverest propaganda of all time German Plots was that of Germany in the years just preceding 1914; then came the concentrated and effective plots which ganda; Germans in the developed during succeeding war-years. No country United States. or institution, national idealist or natural rebel, was free from underground and often unknown influence; the best elements of human nature and the worst were played upon with music equally attuned to suit the Pacifist or Socialist, the Hindu or the Sinn Feiner, the preacher or the publicist. In addition to the 80,000,000 Germans at home in Germany and Austria there were about 20,000,000 Germans abroad-in the United States, in Great Britain, in Brazil and all through South America, in Austria and South, East and West Africa, in China and Japan, all through Scandinavia and everywhere in Holland and Spain.

They appear, in the main, to have been devoted to their Fatherland and to have had none of the educated or cultured or inherited aversion of the Anglo-Saxon to espionage, supervision and direction from home. This influence was variously exercised. The natural ties of society and race brought correspondence and information to Germany which were at the service of the State; a skilled and world-wide espionage system had paid employees everywhere and travelling experts in every country; trade was used as a prime factor and local politics were manipulated freely; German Consuls in every centre abroad had little centres of propaganda and information for the authorities at home; membership in clubs at London and other foreign capitals and the waiters in club-life everywhere were sources of secret knowledge which rarely failed in some kind of result-whatever the degree of judgment behind it; barbers, governesses and domestic servants all over the world in centres of action and government were paid small sums for periodical reports; business spies were widely utilized in institutions such as an Însurance Company or a national Bradstreet down to the employee of a pre-War concern making guns, or munitions, or chemical products or industrial goods.

German Insurance Companies, as the United States eventually discovered, were sources of continuous information as were the electrical and piano concerns which suited German mechanical aptitudes; the Hamburg-American Steamship Line and North German Lloyds, with their branches at New York and London and worldports everywhere, were a centre of German propaganda and espionage; school-books in all countries, but especially those of Britain and its Dominions, and the States, were used along subtle lines of education regarding the greatness of the German mind, the historic nobility of the German rulers, the sympathetic geniality of the German character, the wonderful leaps of German science*; the German Professor was omni-present in Universities everywhere and always, or nearly so, with that peculiarly benevolent air of abstracted geniality which often made him an object of popular regard but never of fear; books were written, and published in all languages, so adapted as to build up and perpetuate the belief in German military, scientific, educational and philosophical supremacy; newspapers in every corner of Europe, in many capitals of South America, in every centre of the United States, were found in war-years to have been started, or helped or bribed or otherwise influenced to further German propaganda-if not openly for Germany then in very astute forms of opposition to some existing policy or Government.

The system was wonderful in its completeness. According to Curtis Roth, for many years U.S. Consul at Plauen, Saxony, and other practical students of German administration, there were three main divisions of the German machine: (1) The Admiralty branch with headquarters at Hamburg, (2) the General Staff with headquarters at Munich, and (3) the Foreign Office centred at Berlin.

NOTE-I have before me a Montreal school-book (Royal Series of Readers) which illustrates this statement.

There were five main functions in the work: The gathering of information concerning expected enemy countries, the development of unrest and German propaganda within these and neutral countries, the guarding of home information, the promotion of smuggling schemes and plans for the possible destruction of materials, stores, factories and communications abroad. Stockholm, Copenhagen, Geneva, Berne, Amsterdam and The Hague were the great spy centres where those of Germany met the lesser lights and smaller machines of other countries.

The revelations of 1917 showed the official relations of the German Foreign Office under Von Jagow, Zimmerman or Von Kühlmann with plots in Ireland, Mexico, Japan, Argentina, the United States. The working chiefs of the propaganda and espionage system-two different elements of the same work-were varied. Prince Von Bülow in Italy, and latterly in Switzerland, was the higher type, as was Mgr. Von Gerlach in Italy and Admiral Von Hintze in Russia Mexico and China; other figures in the panorama were men like Baron Reutenfels in Sweden, Bolo Pasha and M. Caillaux in France, Grimm and Hoffman in Switzerland; unconscious instruments were Ramsay Macdonald in Britain, Roger Casement in Ireland, and Senator La Follette in the States; bribed or perverted agents were Soukhomlinoff, Lenine and Trotzky in Russia. The German agents were not necessarily Germans; often the most effective were men of other nationalities used by brainier men at Berlin for definite objects or paid deliberately for definite work. Danes, Norwegians and Swedes were favourite instruments, especially in the lower social strata. Lord Northcliffe stated at Washington on July 7, as to the superior elements, that:

There were spies who moved about in a good social circle as a rule, picking up any information they could get. Members of this class were entirely unknown to each other, and only known to headquarters by numbers. They were paid a minimum of $3,000 and a maximum of $12,000 a year, and were usually engaged in some other kind of work-very often insurance work, very often as travelling salesmen. Quite a number of them were women.

The espionage system in different countries was subdivided into Naval, Military, commercial, financial, political and diplomatic sections; the agents were distinct and isolated, usually quite unaware of each other's activities, varied in character and standing and capacity, but all directed at the same object by the leaders of espionage work in Germany and abroad, German Embassies and a number of German Consulates at large. Of the American branches of both espionage and propaganda Count Von Bernstorff-assisted by Dr. Dumba, the Austrian Ambassador, Count Von Luxberg, the German Minister at Buenos Ayres, and Herr Von Eckhardt, at Mexico City-was the diplomatic head; Capt. Boy-Ed was chief of the Naval section in the United States and Capt. Von Papen of the Military; miscellaneous leaders were numerous but Karl Fuehr and Dr. Mechlenburg were said to be heads of the German Publicity Bureau, Heinrich Albert of the Austrian Embassy and Franz Von Igel of German notoriety in New York became well known in this connection, as did Franz Bopp at San Francisco and Hans Tauscher in New York.

Great organizations were formed at home and subsidized by the State with this propaganda as an element of their work which, usually, was termed commercial extension. Amongst them were the German Export Bank at Berlin, the Export Association of Saxony, the Commercial Museum of Frankfort, the Export Sample Depôts at Berlin, Stuttgart, Dresden, Frankfort and Weimar, with agents in many centres abroad; several Export Information Bureaux, the German Overseas Bank, Berlin, and the Committee for Colonial Economy; the German Photographic Co., with a specialty in the systematic foreign presentation of German pictorial propaganda; the Auslands-Anseiger, Ltd., whose object was to centralize the German advertising business abroad, and to distribute advertisements to the foreign Press, while safeguarding German interests; the Deutscher Ueberseedienst, Ltd., established for the creation of a foreign News Service, which would enlighten public opinion at home and abroad, give special attention to the requirements of Germany's economic life, and provide for other general propaganda. The League of Truth was one of several supposedly popular organizations which sprang up in Germany and were supported by the Government for purposes of propaganda. It was financed by German-Americans, directed by the Foreign Office through Dr. Hammann, who for ten years had been chief of its Propaganda department, President of the Overseas News Agency, and a directing spirit in the German-American and German-Canadian Associations in Berlin. The Overseas Agency was financed by the Krupps and was in control, amongst other work, of the Tuckerton and Sayville Wireless towers in the States, of all the Berlin "news and articles which came to the United States, and of much real information which went from there during the first years of the War, under the local direction of Dr. Dernberg, to Berlin.

Success was obvious. The efforts of Portugal were greatly hampered and the natural leanings of Spain toward the Allies checked; the feelings of Scandinavia and Holland tortured and twisted out of all resemblance to the real situation; more than one newspaper and public man in Mexico, Brazil and other South American countries were blinded or bribed; many newspapers were directly organized through the Overseas News Agency-such as Germania at Buenos Ayres and others of the same name in Bogota, Guayaquil and Sao Paulo, with similar journals at San Salvador and Guatemala; the Arabs in Egypt and elsewhere were stirred up and linked up when they did not take the other side and voluntarily stand for Britain and their own liberties-in Holy War with what Count Von Hardenburg, a German Consul-General in the East, called "lordly Oriental races such as the Turks"; attempts were made to organize revolt in India with Wolf Von Igel and Franz Bopp as the unofficial chiefs in the United States and Har Dayal and Jodh Singh as the Hindu leaders; Persia was over-run with Indian seditionists, Swedish officer-agents and German Mohammedan appeals to help the converted Kaiser.

In these and other ways Germany succeeded for a short time in restoring the Manchu dynasty in China and installing German in

struments in power-with German commercial agents already strong in Thibet, Turkestan and Mongolia, as well as at Pekin and interior points of China; established, through the Bagdad Railway, its stations, which were really fortifications, and its German-trained Turkish officers and the ever-purchasable Oriental in all parts of Asia Minor, an influence which the war proved to be very powerful; did much to keep alive the Raizulli rebellion in Morocco and promote anti-British and anti-French views amongst the restless Moslems of the so-called Spanish territory; tried to plant a Bolsheviki thorn in the side of the United States by financing or inciting Villa or Zapata or Carranza and keeping up a permanent turmoil in Mexico; swamped Roumania during the six months before its declaration of war-according to its chief journalist, Constantin Mille of L'Adeverin―by spending 36,000,000 francs in methods of public corruption; controlled, or tried to control, Switzerland by Germanized politicians like Hoffman, by a huge electrical organization manipulated by Walter Rathenau of Berlin, run by 600 German specialists, and capable of stopping all electric works in the country at a moment's notice; established German papers at various and far-sundered places-as the Muschaw at Bangkok, the War in Pekin, the Deutsche Zeitung (in Chinese) at Shanghai, De Toekomist in Holland, the Continental Times "for Americans in Europe.'

In 1917 the total number of Germans and their Allies in the United States (born in enemy countries) was estimated officially at 4 662,000 men, women and children*; of these about 964,000 were male aliens of 21 years and over divided by countries into 136,000 from Germany 447,000 from Austria, 280,000 from Hungary, and 101,000 from Turkey and Bulgaria. Many of the Austrians were really Germans, many of the sons were as German as their Germanborn parent or parents; many of the Jews, Poles, etc., were of German affiliation as members of the 1,130,000 Irish-Americans were of German friendship. Out of the complicated mass came a situation in which at least a million of more or less prosperous and influential citizens were an excellent basis for disloyal, pro-German, anti-Ally propaganda; various American writers and thinkers estimated this seed-plot of disloyalty at 2,000,000. That it was utilized to the hilt goes without saying; that much was hoped at Berlin from this element in keeping the United States out of the War or hampering its efforts in the War, Mr. Gerard asserted strongly in his FourYear record of life in Germany; that much could be done in other countries under such conditions has been already indicated.

There can be no doubt as to the relationship between the rulers of Germany and the American propaganda of (1) the years before 1914 and (2) the years 1914-17. General Von Bernhardi indicated the preliminary situation in his visit of 1913 and no German officer undertakes such missions without Government approval; the actions and cables of Von Bernstorff, Von Eckhardt and Von Luxberg proved the matter during the War period, as did the published correspondence of Herr Zimmerman, who as Foreign Secretary, was under the Kaiser's direct and daily supervision. The seizures of

*NOTE.-Government Bulletin, June 12.