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that had been largely devoted to war. Demobilization proceeded at an accelerated rate, the last of the public loans necessary to settle war accounts was largely oversubscribed, and decisions were reached on matters of national importance.

It was announced on May 10 by General March, United States Chief of Staff, that there would be left in France on Aug. 1 only 225,924 American troops, including marines and the navy personnel abroad. The 2,000,000 mark in the demobilization of troops was reached in the week of May 10 and the millionth man embarked from abroad on May 7.

Figures prepared by the War Department as of May 10 gave the total of battle deaths in the American Expeditionary Forces under General Pershing as 48,909. The total of wounded was 237,135. All casualties from battle deaths and wounds aggregated 286,044.

The Victory Loan, the fifth and last of the great public loans of the United States during the war period, like all its predecessors, was oversubscribed. The amount asked for was $4,500,000,000, but the total subscribed was close to $6,000,000,000.

An instance of Bolshevist activity in the United States was furnished on June 2 by a series of bomb explosions in New York, Boston, Washington, and Philadelphia. Attorney General Palmer of Washington and Judge Nott of New York were among the victims aimed at, but they escaped without injury. Several people, however, were killed, and one of the criminals involved was blown to pieces. Intense indignation was aroused and a nation-wide search for the miscreants was instituted, but without tangible result. Several bills were introduced in Congress, aiming at the deportation of undesirable aliens, and the New York State Legislature appointed a committee to investigate seditious activities in the metropolis. The offices of L. C. A. K. Martens, the self-styled Soviet "Ambassador" to the United States, were raided, as well as several centres of radical propaganda. The papers seized were subjected to careful official examination.

One result of the war was an immense

expansion of the American merchant marine. The primary cause of this growth was the desire to make good the tonnage sunk by submarines. But after the undersea peril had vanished, America found herself in possession of a great fleet of merchant vessels, exclusive of the 700,000 tons of German shipping which was to be retained as compensation for damage done, and also possessed great shipyards which were rapidly reaching the peak of production. The yards of the Submarine Corporation at Port Newark, N. J., and the Hog Island yards at Philadelphia were sending ships into the water at the rate of one or two each week, and together contributed a total of nearly 600,000 tons. Secretary of the Navy Daniels, in a speech at the Ho<» Island yards on Memorial Day, declared that never again would the United States be guilty of the folly of trusting its foreign commerce to foreign bottoms. In August, 1914, our total seagoing merchant marine aggregated 2,706,317 gross tons. When the war ended, the total was 5,500,000 gross tons.

DELIVERY OF TREATY By the middle of April the treaty was so far completed that the conference addressed a note to the German Government requesting the presence of their delegates at Versailles by April 25. There was some delay, however, and it was several days later when the delegates arrived. Besides the six envoys already mentioned, there was a body of experts in finance and economics and a large corps of clerks and secretaries.

Elaborate plans had been made by the French Government for the housing of the delegation. The large Hotel des Reservoirs had been set aside for their use, but as this proved inadequate, the Hotels Suisse and Vatel were also preempted. In order to prevent any contact with the outside world, a palisade had been erected connecting these hotels with the Trianon Palace, where the conferences were held. The space assigned to the Germans was ample for strolling and exercise, but they were not permitted to go beyond the allotted barriers.

It had been stipulated by the Allies that all negotiations should be conducted

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in writing. This was strongly objected to by the Germans, who claimed that it made free discussion impossible. Persistent efforts were made to obtain modifications of this ruling, but without avail.

The draft of the treaty was not complete when the German delegates arrived, and a week of waiting ensued. By May 7 the terms were ready, and on that day the treaty was delivered to the enemy envoys. The ceremony took place at the Trianon Palace Hotel, a huge structure that had been completed just before the war began. The chief representatives of the four leading allied nations were seated at one end of the great central hall, while the German delegates sat directly opposite at the other end. The other allied delegates sat at tables ranged on both sides of the hall.

Premier Clemenceau, the President of the Conference, made a brief address preceding the delivery of the treaty. The document was taken by Paul Dutasta, the Secretary of the Conference, and delivered to Count von Brockdorf f-Rantzau. The latter read a reply that nettled the conference by its tone of arrogance and defiance. It was noted that he did not rise in speaking, and this was attributed by many to studied discourtesy. Later, an explanation was offered in his behalf that he was too ill to stand, and, further, that at the moment of beginning his reply he had been overcome by the recollection that the date, May 7, was the anniversary of the Lusitania sinking.

TERMS OF TREATY

The League of Nations covenant and the labor program are given verbatim in this volume and need not here be dwelt upon. What Germany was compelled to concede may be briefly summarized as follows:

Relinquishment of Alsace-Lorraine to France, Posen and West Prussia to Poland, part of Schleswig to Denmark, and 382 square miles of Rhenish Prussia to Belgium.

The Sarre coal basin to be internationalized for fifteen years, a plebiscite to determine permanent control, the coal mines going to France.

Luxemburg was freed from the German customs union.

Germany recognized the independence of German Austria, Poland, and Czechoslovakia.

Germany lost all colonies and her valuable concessions in Europe, Asia, and Africa, and recognized the British protectorate over Egypt.

The German Army was to be cut to a total strength temporarily of 200,000 men, but Germany must ultimately reduce this to 100,000.

The German Navy was limited to six battleships of under 10,000 tons each, six light cruisers and twelve torpedo boats, surrendering or destroying all other war vessels. She was to have no more submarines, and the navy personnel was limited to 25,000.

Military and naval air forces were abolished.

Munition factories were to be operated only by permission of the Allies and import or export of war materials was forbidden.

Heligoland defenses were to be dismantled.

Fortifications aiming at control of the Baltic were forbidden.

The Rhine and the Moselle were put under the control of an international commission, on which Germany was to be represented. The French, Belgian and other nations were permitted to run canals from the Rhine, but Germany was forbidden to do so. German forts within thirty-three miles of the Rhine were to be dismantled.

Other great rivers, hitherto German, were to be under international control, the Cezechoslovaks and the Poles having free access to the Oder and other streams, and the Poles to the Niemen.

The Danube was to be controlled by an international commission, Kiel Canal was to be open to all nations and the Czechs were to have harbor rights at the mouth of the Elbe.

German railroads were to be of standard gauge and rights were granted to other powers to use them. Traffic discriminations were forbidden.

Offenders against the rules of warfare and humanity were to be delivered up to the Allies. An international high court was to be provided for the trial of the

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Kaiser, whose surrender would be asked of Holland.

Germany's indemnity payment was to be fixed by an interallied commission. An initial payment of $5,000,000,000 was to be made within two years. Bonds running thirty years would be issued for later payments. Occupation of the Rhine country was to continue until the Allies were assured of Germany's good faith.

Germany was required to help build ships to replace those she sank, help rebuild devastated regions, surrender her fourteen submarine cables, and cede all German ships over 1,600 tons and many smaller ones.

Germany was to accept the League of Nations principle, but was to be barred from membership at present.

Her peace treaties with Russia and Rumania were to be abrogated and she was to recognize the independence of States formerly Russian.

SUBSEQUENT DISCUSSIONS Following the delivery of the treaty, an active interchange of notes began. It was understood that a formal series of German counterproposals was in course of preparation, but in the meantime various features of the treaty were selected for attack. It was claimed that the reparations demanded were beyond reason and impossible to meet; that the cession of territory required of Germany was a violation of the principle of selfdetermination; that the German colonies should be given back; that the delivery of the ex-Kaiser and his officers would be an ineffaceable stain upon German honor and could not be tolerated. To all of these objections prompt replies were made by the Allies, explaining more clearly some of the points in dispute, but making no concessions of moment.

The sensation produced in Germany by the publication of the peace terms was prodigious. A chorus of dismay and indignation arose. The treaty was denounced as a betrayal of Germany, which had signed the armistice relying upon Wilson's "fourteen points," all of which it was declared had been abandoned. Scheidemann denounced the treaty as a " devil's plot." Others styled it the "murder of justice," the "grave

of right," the "shackles of slaves." Huge mass meetings were held in all the German cities and addressed by impassioned orators who exhausted all the resources of vituperation. Placards were displayed which read "Louis XIV. stole Alsace from us 1648-1684; Clemenceau steals it from U3 in 1919." The German Government decreed a week of mourning. The only ones who advocated signing were the extreme Socialists, who declared themselves for any treaty that would bring "bread and work."

The German delegates had been given fifteen days in which to frame their reply to the treaty. Various members of the delegation, including its leader, visited Berlin to confer with members of the Government. At the end of the stipulated time, German counterproposals, over 60,000 words in length, were handed to the Allies. These proposals, if accepted, would have greatly modified or completely nullified every important provision of the treaty.

The covering letter which accompanied the counterproposals summarized their salient points, the most important of which are herewith appended:

1. Germany offers to proceed with her own disarmament in advance of all other peoples, in order to show that she will help to usher in the new era of the peace of justice. She gives up universal compulsory service and reduces her army to 100,000 men, except as regards temporary measures. She even renounces the warships which her enemies are still willing to leave in her hands. She stipulates, however, that she shall be admitted forthwith as a State with equal rights into the League of Nations. * * * She stipulates that a genuine League of Nations shall come into being, embracing all peoples of good-will, even her enemies of today. The League must be inspired by a feeling of responsibility toward mankind and have at its disposal a power to enforce its will sufficiently strong and trusty to protect the frontiers of its members.

2. In territorial questions Germany takes up her position unreservedly on the ground of the Wilson program. She renounces her sovereign right in Alsace

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Lorraine, but wishes a free plebiscite to take place there. She gives up the greater part of the province of Posen, the district incontestably Polish in population, together with the capital. She is prepared to grant to Poland, under international guarantees, free and secure access to the sea by ceding free ports at Danzig, Konigsberg, and Memel, by an agreement regulating the navigation of the Vistula and by specirl railway conventions. Germany is prepared to insure the supply of coal for the economic needs of France, especially from the Sarre region, until such time as the French mines are once more in working order. The preponderantly Danish districts of Schleswig will be given up to Denmark on the basis of a plebiscite. Germany demands that the right of self-determination shall also be respected where the interests of the Germans in Austria and Bohemia are concerned.

She is ready to subject all her colonies to administration by the community of the League of Nations, if she is recognized as its mandatary.

3. Germany is prepared to make payments incumbent on her in accordance with the agreed program of peace up to a maximum sum of 100,000,000,000 gold marks, 20,000,000,000 by May 1, 1926, and the balance (80,000,000,000) in annual payments, without interest. These payments shall in principle be equal to a fixed percentage of the German Imperial and State revenues. The annual payment shall approximate to the former peace budget. For the first ten years the annual payments shall not exceed 1,000,000,000 gold marks a year. The German taxpayer shall not be less heavily burdened than the taxpayer of the most heavily burdened State among those represented on the Reparation Commission.

Germany presumes in this connection that she will not have to make any territorial sacrifices beyond those mentioned above and that she will recover her freedom of economic movement at home and abroad.

4. Germany is prepared to devote her entire economic strength to the service of the reconstruction. She wishes to cooperate effectively in the reconstruction

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of the devastated regions of Belgium and Northern France. To make good the loss in production of the destroyed mines of Northern France, up to 20,000,000 tons of coal will be delivered annually for the first five years, and up to 80,000,000 tons for the next five years. Germany will facilitate further deliveries of coal to France, Belgium, Italy, and Luxemburg.

Germany is, moreover, prepared to make considerable deliveries of benzol, coal tar, and sulphate of ammonia, as well as dyestuffs and medicines.

5. Finally, Germany offers to put her entire merchant tonnage into a pool of the world's shipping, to place at the disposal of her enemies a part of her freight space as part payment of reparation and to build for them for a series of years in German yards an amount of tonnage exceeding their demands.

6. In order to replace the river boats destroyed in Belgium and Northern France, Germany offers river craft from her own resources.

7. Germany thinks that she sees an appropriate method for the prompt fulfillment of her obligation to make reparations conceding participation in coal mines to insure deliveries of coal.

8. Germany, in accordance with the desires of the workers of the whole world, wishes to insure to them free and equal rights. She wishes to insure to them in the treaty of peace the right to take their own decisive part in the settlement of social policy and social protection.

. 9. The German delegation again makes its demand for a neutral inquiry into the responsibility for the war and culpable acts in conduct. An impartial commission should have the right to investigate on its own responsibility the archives of all the belligerent countries and all the persons who took an important part in the war.

Nothing short of confidence that the question of guilt will be examined dispassionately can leave the peoples lately at war with each other in the proper frame of mind for the formation of the League of Nations.

These are only the most important among the proposals which we have to make. As regards other great sacrifices, and also as regards the details, the delegation refers to the accompanying memorandum and the annex thereto.

The time allowed us for the preparation of this memorandum was so short that it was impossible to treat all the questions exhaustively. A fruitful and illuminating negotiation could only take place by means of oral discussion. This treaty of peace is to be the greatest achievement of its kind in all history. There is no precedent for the conduct of such comprehensive negotiations by an exchange of written notes only. The feeling of the peoples who have made such immense sacrifices makes them demand that their fate should be decided by an open, unreserved exchange of ideas on the principle: "Quite open covenants of peace openly arrived at, after which there shall be no private international understandings of any kind, but diplomacy shall proceed a' frankly in the public view."

TREATY WITH AUSTRIA

One June 2, 1919, at St. Germain-enLaye, a suburb of Paris, the Peace Treaty framed by the Allies was handed to the Austrian delegates. The head of the Austrian delegation, Chancellor Karl Rehner, received the treaty without a trace of arrogance, deplored what he called the "horrible crime of 1914," but pleaded that all the punishment should not fall upon the shrunken State of Austria.

The Austrian treaty followed closely that delivered to the Germans, and in many places was identical, except for the change in name. Austria was left by the treaty a State of from 6,000,000 to 7,000,000 people, inhabiting a territory of from 5,000 to 6,000 square miles. She was compelled to recognize the independence of Hungary, Czechoslovakia, and the Serb-Croat-Slovene State, and to cede other territories which previously, in union with her, composed AustriaHungary with its population of more than 50,000,000 people. She was stripped of her naval and aerial forces, required to renounce all her extra-European rights and to recognize the League of Nations covenant.

FINAL PHASES

The Peace Conference gave long and serious consideration to the German counterproposals. A reply was delivered on June 16. The original treaty was clarified and some real concessions were made. Germany, in consideration of observing the treaty, was promised admission to the League of Nations at an early date. A plebiscite was granted to the population of Upper Silesia, which in the original draft had been given outright to Poland. The dates for payment of indemnities were made more definite and allowance was to be made at future dates for Germany's economic condition. Intimations were given that the period of occupation of German territory by allied forces would be abridged if the terms were kept in good faith. It was stated that Germany's sovereignty over her own territory would be respected. Apart from these modifications, the treaty stood as originally framed.

The Germans were given one week to accept or reject the treaty in its entirety, and it was stated that that week included the three days required for the denunciation of the armistice. The treaty was accompanied by a covering note from President Clemenceau, which, for clear and merciless analysis, stands as a classic in diplomatic literature.

The treaty was referred at once to the German National Assembly sitting at Weimar. Confronted with the necessity of prompt decision, the Assembly was thrown into a state of chaos. The Scheidemann Cabinet resigned. Frantic efforts were made to form a new Cabinet. Gustav Bauer was intrusted with the task, but the first Cabinet he chose went to pieces in an hour. A second attempt was more successful. After allnight sessions the Assembly finally voted to sign the treaty with two reservations. One was that the ex-Kaiser and his officers should not be surrendered for trial and the other that Germany should not be compelled to acknowledge sole guilt for the war.

This decision was communicated to the Peace Conference and elicited the prompt reply that no reservations would be permitted. A vote was then taken by the As

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