elgium, but I think will give most of
it up; but is fixed for an indemnity from France. The loss of
life here is affecting every one, the Chancellor is a very good
man, and I think honestly desires an honourable peace.

* * * * *

Potatoes are restricted from to-day, 10 pounds per head in 12
days, not much, bacon and lard practically not to be had, butter
only in small quantities and meat out of reach of the poor.

* * * * *

I told the Chancellor I thought a great source of danger to the
good relations of Germany and U. S. A. was in Mexico, that if we
had trouble there, had to raise a large army and rouse the
military spirit at home, the President might find it hard to hold
the people. This struck him as a new view, as most Germans think
that Mexican troubles are to their advantage, and I am sure
Villa's attacks are "made in Germany."

I shall not come home; both the Chancellor and von Jagow have
begged me not to go.

* * * * *

I sent a cable about the possible stirring up of our coloured
people by propagandists. I notice that there are great fires in
many cities of the South.

It is reported that Prussian State Railways were given the banks
as additional security for the last loan, but I do not see how
this could be, as the railways are Prussian and the Loan
Imperial.

Several South American diplomats here think that in case of war
between U. S. and Germany public opinion in their countries will
demand the seizure of the German ships and possible war.

* * * * *

_April, 1916._ I am just off to the Reichstag where the
Chancellor is to speak. I have no news here and none from
America, but it seems to me five boats sunk almost at once will
rather strain things at home. Here they do not want war with
America. Perhaps von Tirpitz before leaving gave these submarine
commanders these orders to sink at sight.

I think the Germans will eventually encircle and take Verdun,
mostly now for moral effect.

Von Jagow will shortly give Conger (_Associated Press_) an
interview disclaiming any intention on Germany's part of
attacking America after the war. "A guilty conscience, etc.," and
"Qui s'excuse, s'accuse."

Every night fifty million Germans cry themselves to sleep because
all Mexico has not risen against us.

Part of Germany goes soon on meat ration. The food question is
becoming a