German government had recently taken possession of all domestic stocks
of corn, wheat, and flour.

A new question arose in connection with American trade with the neutral
countries surrounding Germany. Great Britain early began to intercept
ships carrying oil, gasoline, and copper--all war materials of prime
importance--on the ground that they either were destined ultimately to
Germany or would release goods for sale to Germans. On November 2, 1914,
the English government announced that the Germans wore sowing mines in
open waters and that therefore the whole of the North Sea was a military
zone. Ships bound for Denmark, Norway, and Sweden were ordered to come
by the English Channel for inspection and sailing directions. In effect,
Americans were now licensed by Great Britain to trade in certain
commodities and in certain amounts with neutral countries.

Against these extraordinary measures, the State Department at Washington
lodged pointed objections, saying: "This government is reluctantly
forced to the conclusion that the present policy of His Majesty's
government toward neutral ships and cargoes exceeds the manifest
necessity of a belligerent and constitutes restrictions upon the rights
of American citizens on the high seas, which are not justified by the
rules of international law or required under the principle of
self-preservation."

=Germany Begins the Submarine Campaign.=--Germany now announced that, on
and after February 18, 1915, the whole of the English Channel and the
waters around Great Britain would be deemed a war zone and that every
enemy ship found therein would be destroyed. The German decree added
that, as the British admiralty had ordered the use of neutral flags by
English ships in time of distress, neutral vessels would be in danger of
destruction if found in the forbidden area. It was clear that Germany
intended to employ submarines to destroy shipping. A new factor was thus
introduced into naval warfare, one not provided for in the accepted laws
of war. A warship overhauling a merchant vessel could easily take its
crew and passengers on board for safe keeping as prescribed by
international law; but a submarine ordinarily could do nothing of the
sort. Of necessity the lives and the ships of neutrals, as well as of
belligerents, were put in mortal peril. This amazing conduct Germany
justified on the ground that it was mere retaliation against Great
Britain for her violations of international la