nsurance companies was formed whose
limit for marine and war insurance was gradually raised more and
more. In this way it was possible to carry through a number of
shipments to European countries, to keep a not inconsiderable
tonnage--about 30,000 tons--out of the hands of the Allies, as well
as to enable a number of important German firms in South America
to carry on extensive trade between North and South America, and
so to maintain their business activity in spite of the measures
adopted by the English.

About our propaganda I have already spoken in detail in the second
chapter. It may be mentioned again here that the centre of gravity
of our active propaganda lay in the economic question, which was
to a certain extent the key to the understanding of our American
policy during the war.

Though the vast and rapid development of American export trade
through the trade in war material, and the change in position from
debtor to creditor, was only effected gradually, and the loss of
the German market at first made itself adversely felt both actively
and passively, the size of the contracts from the Allies and the
consequent profits at once acted like a narcotic on public opinion.
This was all the more the case as a result of the extraordinarily
skilful way in which the English handled the question. They always
proceeded cautiously and gradually. For instance, they at first
accepted the Declaration of London in principle, but made several
alterations which to the public, who did not realize the extent of
their effect, seemed unimportant and which yet formed the basis for
the gradual throwing overboard of the Declaration of London. After
public opinion had grown accustomed to the English encroachments and
the interests affected had been pacified by the Allied contracts,
the blockade was introduced after careful preparation in the Press;
it was not at first described as a blockade, but was gradually
and systematically tightened. Among other things, the export of
cotton to Germany was expressly agreed to at the end of 1914, but
was afterwards hampered in practice by various measures, as, for
example, the holding up of individual ships, and the refusal of
marine insurance, and finally brought to an end by the declaration
of cotton as unconditional contraband. It is characteristic that
the declaration of cotton as unconditional contraband was made
public on the very day on which the whole American Press was in
a state of gr