the unlawful attack of a German submarine.

To make assurance doubly sure President Wilson referred the question of the interpretation of the law to Attorney General Gregory, who sustained the Secretary of State, holding that the law of 1819 had reference to conditions when the seas were infested with piratical craft, and was not a bar to a ship protecting herself from the effort of a German submarine to sink her without warning. The President, therefore, felt that no occasion existed for postponing the issuance of an order to furnish Government armament to merchant vessels.

Although the Armed Ship bill, which failed of passage in the Senate, provided for a bond issue of $100,000,000 to pay the expenses of armed neutrality, the Government has sufficient money available for its immediate purposes. Congress will be asked to provide more when the extra session convenes.

Crux of the Situation

Under a bill passed during the last days of the last Congress, the funds at the disposal of the Federal War Risk Bureau to insure American ships was increased to $15,000,000. Armed neutrality is expected to remove the practical blockade of American ports and place the issue of eventual war squarely upon Germany. An attack upon an armed American vessel would precipitate a fight if the ship got sight of the submarine, and an unwarned attack would be regarded by the United States as an act of war.

Germany and Austria both have declared armed merchantmen war vessels. These declarations were based largely, however, upon the charge that British merchant ships used their armament offensively, and it remains to be seen whether Germany will so class and treat American craft with defensive arms. The whole German press comment and unofficial utterances since the question was raised in this country have indicated the conviction that any armed vessel should be considered hostile and sunk in the same way as a belligerent war vessel. There has been no official expression on the subject.

The guns defending American merchantmen will be in charge of gunners belonging to the United States Navy. The official instructions to these men have not been made public, but reliable correspondents have asserted with an air of authority that in view of the warnings by the German Government, the discovering of a submarine in the war zone by an armed ship would presuppose that it had hostile intent, and that it would be fired upon on sight. German official opinion as quoted by the German press asserts that the firing upon a German submarine by an armed American merchantman would be regarded by that country as an act of war.

The Secretary of the Navy issued a formal request to American newspapers and news agencies to refrain from publishing the departure of any American ships from American or foreign ports, and to exclude any information regarding the arming of ships. It is known that six-inch guns were placed upon a large number of American ships in the week ended March 17, 1917, and it was understood that several large freighters and at least one American passenger liner, fully equipped fore and aft with six-inch guns, left American ports for the barred zone during the week named. No official announcement of the sailings was permitted.

Armed neutrality became the status of the United States the moment the first merchant ship under the American flag put to sea with a gun mounted for defense. President Wilson clearly forecast this fact in his address to Congress on Feb. 26.

Writers on international law have held that armed neutrality consisted in placing the country in a position to defend itself and its neutrality against threatened attacks or inroads by belligerents. This state of preparedness may last an indefinite length of time, through good fortune in avoiding contact with belligerent forces afloat or ashore, or through the design of the belligerent to confine its declaration of purpose to infringe the neutrality of a country to mere threats unsupported by action. On the other hand, the status of armed neutrality

may change into one of actual hostility through a collision, such as a submarine attack on an armed merchantman.

Armed Neutralities of 1780 and 1800

Oppenheim thus describes the origin of the armed neutralities of 1780 and 1800:

In 1780, during war with Great Britain, her American colonies, France, and Spain, Russia sent a circular to England, France, and Spain in which she proclaimed the following five principles:

(1) That neutral vessels should be allowed to navigate from port to port of belligerents and along the coast;

(2) That enemy goods on neutral vessels, contraband excepted, should not be seized by belligerents;

(3) That, with regard to contraband, Articles 10 and 11 of the treaty of 1768 between Russia and Great Britain should be applied in all cases;

(4) That a port should only be considered blockaded if the blockading belligerent had stationed vessels there, so as to create an obvious danger for neutral vessels entering the port;

(5) That these principles should be applied in the proceedings and judgments on the legality of the prizes.

George B. Davis, former Judge Advocate General and one of the best-known American authorities on internationallaw, defines an armed neutrality as "an alliance of several powers, usually of a defensive character, though this is by no means essential."

"The purpose of such an alliance," he says, "is to secure the maintenance of certain views of neutral right, which are believed to be in danger or whose justice is likely to be questioned. If the commercial interests of several nations are threatened by unjust and unlawful measures on the part of a belligerent which they deem unjust or dangerous, there can be no question of their right to secure their menaced interests by such combinations as seem best calculated to accomplish this purpose."

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ERMANY relentlessly made good her threat to institute unrestricted submarine warfare in the zone surrounding the United Kingdom and France. On March 19 the following official announcement was made at Berlin: v" In February 368 merchant ships of an aggregate gross tonnage of 781,500 were lost by the war measures of the Central Powers. Among them were 292 hostile ships, with an aggregate gross tonnage of 644,000, and 76 neutral ships of an aggregate gross tonnage of 137,500. Among the neutral ships 61 were sunk by submarines, which is 16.5 per cent. of the total in February, as compared with 29 per cent., the average of neutral losses in the last four months."

These figures differ widely from those given out by the French and English Admiralties. London reported that the total shipping sunk by submarines in February was 490,000 tons.

In the first three weeks of March Germany asserted that the February average was maintained, but again there was a disparity of figures; the English Admi

ralty reported on March 15 that the total tonnage sunk from Feb. 1 to March 11 was 156 British, 51 other neutrals, and 3 Americans; between March 4 and 11, 1 American, 20 British, and 2 French. Forty-six British ships were sunk between March 1 and 15; of these 16 were less than 1,600 tons each, and 6 were small fishing craft. The Admiralty reported that at the beginning of 1917 Great Britain possessed 3,731 vessels of 1,600 tons and over. Of this number 78 were sunk up to March 15, leaving 3,653 ships of 1,600 tons or more after six weeks of the submarine war.

In the prosecution of their intensified warfare the U-boats spared nothing that came in sight. Hospital ships, Belgian relief ships, and any vessels of neutrals, whether coming or going, were attacked and sunk with the same disregard of the law of visit and search as that exercised toward the craft of Germany's enemies.

The most sensational episodes of the month were the sinking of six grainladen Dutch ships and the news of the sinking of three American vessels, the

sirous of having some of the new submarines built in nine months. The best building time that had been offered previously was eighteen months.

Mr. Daniels also indicated that the Government was desirous of having destroyers built within a year instead of two years, the best time previously offered. Many of the shipbuilding concerns declared their willingness and ability to meet the needs of the hour.

Large Contracts Placed

On March 15 Secretary Daniels placed contracts for what was probably the largest single order for fighting craft ever given by any nation. Under these contracts private builders undertook to turn out four great battle cruisers and six scout cruisers, costing nearly $112,000,000 for hulls and machinery alone, and pledged themselves to keep 70 per cent. of their working forces on navy construction. Though the major ship builders were besieged with commercial orders, some of which would bring 50 per cent. profit, they agreed to accept 10 per cent. profit on the battle cruisers, whose cost will represent about $76,000,000 of the total sums involved in the contracts. This action made it unnecessary for the President to use his authority to commandeer plants. A fifth battle cruiser will be built at the Philadelphia Navy Yard, so as to avoid overstraining the facilities of the private establishments.

Both classes of cruisers are of new types and are designed for a speed of 25 knots an hour. The scouts range in cost from $5,950,000 to $5,996,000 and the stipulated time of delivery is from thirty to thirty-two months. These figures can be no guide to the actual cost or time, however, as under the emergency clause of the Naval Appropriation bill construction will be hastened to the limit, the Government footing the bill for additional cost.

The battle cruisers, the fixed limit of cost of which is $19,000,000 per ship, exclusive of speeding-up expense, were placed as follows: Newport News Shipbuilding and Dry Dock Company, two ships; Fore River Shipbuilding Corporation, one ship; New York Shipbuilding Company, one ship.

With the exception of the New York company, each private builder will have to install new ways and machinery for the huge craft. The Government will bear its fair share of this expense. Already an appropriation of $6,000,000 has beeen ordered expended to equip the Philadelphia yard for capital ship building.

Four of the scout cruisers will be built on the Pacific Coast-two by the Seattle Construction Company and two by the Union Iron Works at San Francisco. The other two will be built by William Cramp & Sons, Philadelphia.

The Three-Year Program

In a statement to newspaper men, Secretary Daniels said:

The Navy bill provides the initial appropriations for the following vessels of the three-year program adopted by the first session of the Sixty-fourth Congress, which authorized the construction of 156 vessels of different types: 3 battleships, 1 battle cruiser, 3 scout cruisers, 15 destroyers, 18 submarines, 1 destroyer tender, and 1 submarine tender. Of the three-year program, therefore, the money has been provided in this bill and in the former bill to commence the construction of the following vessels: 7 battleships, 5 battle cruisers, 7 scout cruisers, 35 destroyers, 48 submarines, 1 destroyer tender, 1 submarine tender, 1 hospital ship, 1 fuel ship, 1 ammunition ship, 1 gunboat, leaving to be first appropriated for next year the balance of the three-year program, consisting of 3 battleships, 1 battle cruiser, 3 scout cruisers, 15 destroyers, 19 submarines, 2 fuel ships, 1 repair ship, 1 transport, 1 destroyer tender, 1 ammunition ship, and 1 gunboat.

The outstanding features of the bill are, first, the $115,000,000 appropriation for speeding up the construction of ships already authorized and authorized in the bill just ap. proved, and the purchase or construction of aircraft, additional destroyers, submarine chasers, motor boats, and other small craft, which will be essential in an emergency, and which can be constructed in a comparatively short time, A further emergency appropriation of $18,000,000 is provided specifically for the construction of twenty coast submarines in addition to the eighteen submarines for which money is provided in the bill of the three-year program, making thirty-eight submarines specifically appropriated for in this bill.

Contracts for sixteen non-rigid dirigible airships to be used for coast and harbor patrol were let by Secretary Daniels on March 12. The contracts are for $649,250, and the specifications call

for the delivery of these airships in the remarkably brief period of 120 days, which means by the middle of June.

Under the leadership of Franklin D. Roosevelt, Assistant Secretary of the Navy, a volunteer reserve auxiliary fleet of 750 ships and motor craft, with 10,000 civilians to man them, is in process of organization for the protection of waters adjoining New York City.

Military Defense Measures

Military defense has made less progress. The Army Appropriation bill for $279,000,000 was among the important measures that died in the Senate during the filibuster at the close of the session. The chief work of the Secretary of War has consisted in organizing the industries and executive talent of the nation for the emergency. The newly formed Council of National Defense has become an active force during the month. It is the central agency for the industrial mobilization of the country, and under the direction of Daniel Willard, a prominent railroad President, its advisory commission is organizing for the rapid transportation of large bodies of troops, for the conservation of great quantities of food and supplies of all kinds, and for the effective employment of all the country's resources at short notice.

All the remaining National Guard units on the Mexican border, embracing about 75,000 men, were ordered on Feb. 17 to return to their home States for immediate muster out of Federal service. A few days later Judge Advocate General Crowder delivered an opinion to the effect that there was no essential difference in the status of the militiamen

who had taken the Federal oath under the terms of the Hay National Defense act and those who had not; in other words, both classes of National Guardsmen would be subject to call by the President in case of war with Germany.

Meanwhile orders had been issued on March 7 by the War Department directing the Colonels of all regular army regiments along the border to designate sixty enlisted men from each regiment who could be commissioned as company officers in the army in case of an emergency call. This would furnish a total of 5,000 new officers, who would be eligible for offices up to the rank of Captain, and who could be promoted in case of need. In the event of real war the Government would be compelled to call to the colors not less than 500,000 men, and for such an army 25,000 officers would be necessary. These officers would be obtained from the regular commissioned personnel of the army, from the rapid graduation of West Point cadets, and from the new officers' reserve corps now in process of creation.

Late in February the Secretary of War, Newton D. Baker, sent to the Senate Committee on Military Affairs the draft of a bill framed by the War College Division of the General Staff calling for eleven months of compulsory military training for every American boy of 18 years who did not come within certain exemption clauses. Under this bill it was estimated that within three years the country would have a first-line reserve of 1,500,000 young men ready to respond instantly to a call to the colors until their thirtieth year. The bill failed of passage, but will be brought up in Congress again.