ded as valid. In the Franco-Prussian war President Grant
issued a proclamation warning belligerent warships against hovering in
the vicinity of American ports for purposes of observation or hostile
acts. The same policy has been maintained in the present war, and in
all of the recent proclamations of neutrality the President states
that such practice by belligerent warships is "unfriendly and
offensive."

_(12) Great Britain and her allies are allowed without protest to
disregard American citizenship papers and passports._

American citizenship papers have been disregarded in a comparatively
few instances by Great Britain, but the same is true of all the
belligerents. Bearers of American passports have been arrested in all
the countries at war. In every case of apparent illegal arrest the
United States Government has entered vigorous protests with request of
release. The department does not know of any cases except one or two,
which are still under investigation, in which naturalized Germans have
not been released upon representations by this Government. There have,
however, come to the department's notice authentic cases in which
American passports have been fraudulently obtained and used by certain
German subjects.

The Department of Justice has recently apprehended at least four
persons of German nationality who, it is alleged, obtained American
passports under pretense of being American citizens, and for the
purpose of returning to Germany without molestation by her enemies
during the voyage. There are indications that a systematic plan had
been devised to obtain American passports through fraud for the
purpose of securing safe passage for German officers and reservists
desiring to return to Germany.

Such fraudulent use of passports by Germans themselves can have no
other effect than to cast suspicion upon American passports in
general. New regulations, however, requiring among other things the
attaching of a photograph of the bearer to his passport, under the
seal of the Department of State, and the vigilance of the Department
of Justice, will doubtless prevent further misuse of American
passports.

_(13) Change of policy in regard to loans to belligerents._

War loans in this country were disapproved because inconsistent with
the spirit of neutrality. There is a clearly defined difference
between a war loan and the purchase of arms and ammunition. The policy
of disapproving of war loans affects all Govern