Danube, fronting Austria-Hungary and Russia.
Both Austria and Germany were losers in all three wars; while the
treaty ending the second Balkan war magnified Servia of the Slav race
of Russia. This is the important and crucial point in race and
geography.

Austria, as the hand of Germany, still demanded a union of all these
Balkan states with Turkey and under the aegis of Austria,--which meant,
of course, Germany.

The aim of Germany in alliance with Turkey was, through Austria in
_quasi_-sovereignty over the Balkan states, to carry German influence
by the Bagdad railroad right through Asia Minor to the Persian Gulf.
Germany would thus be, when the work was finished, a mighty military
empire with rail communications cleaving the center of Europe and
extending through Asia Minor to Eastern waters. With her growing
steamship lines she would touch her colonies in the Pacific and her
mighty naval base at Kiao-Chau in the Far East.

Now, while Germany is besieged on all sides and Italy and Roumania are
preparing to go into the war with the Allies that they may have their
part and parcel in the settlements, it is recognized that it is none
too early for the Allies to consider the map of the entire eastern
hemisphere and tackle that most difficult problem, the Bagdad railroad,
from which Turkey, Asia Minor, Mesopotamia, and Palestine, the great
historic countries of the world, must be parcelled out or dominated and
developed.

The followers of Mohammed are no longer a unit. They number
175,000,000 people in the aggregate, but India and Egypt have gradually
receded in sentiment from decadent Turkey, now numbering only about
20,000,000 people, and defended by an army of about 1,000,000. But
this is no longer an army of united, fighting Mohammedan Turks; only a
mixed army lacking in unity, discipline, efficiency and financial base.

Indeed, such are the financial straits of Turkey that a ten per cent
tax has been levied upon the property of the people. If you hold
property in Turkey and cannot pay ten per cent of the value the
authorities have assessed against it, it may be sold or confiscated for
the tax.

Where the money goes, nobody knows. German influence with Turkey has a
financial base; 6,000,000 pounds sterling or 100,000,000 marks went
from Germany to Constantinople just before the war, according to
reports I have from people in the international exchange markets. From
diplomatic sources I learn that this w