from the ship sent wireless messages
to his paper in which he reported that the unrestricted submarine
campaign was imminent. The Ambassador also, after landing in New
York, expressed himself, as I at once learned, to the same effect,
and Mr. Swope continued his open Press-campaign in this direction.

Under these circumstances I considered it inopportune to give Mr.
Gerard the Emperor's memorandum, as I assumed that he would read
into it merely a confirmation of his view, and would discuss it
in that light. If, however, the idea spread abroad that we were
about to begin the unrestricted submarine campaign all prospect
of success for peace mediation was lost. It was indeed clear that
the Entente would not accept American mediation if they could hope
for the submarine campaign and consequent declaration of war by
the United States. It must continually be repeated that mediation
could only succeed if the Entente had already abandoned all hope of
American assistance. On these considerations I handed the memorandum
to Colonel House, of whose discretion I had two years' experience.
In this way it came into the hands of the equally unusually discreet
President, without anyone else learning anything about it. The
memorandum at once produced a great effect, as now the American
authorities had no further doubt that the Imperial Government would
accept the intended mediation. This could, however, not be speeded
up because Mr. Wilson did not want to undertake a great political
movement so shortly before the election.

At this time I sent the following report to the Chancellor:

TELEGRAM IN CIPHER

"Washington, 17th October, 1916.

"For a week there has again been some excitement here about foreign
policy. This is due to a variety of causes. At first the rumor
was that Ambassador Gerard was bringing with him a peace proposal
from the German Government. In spite of all denials this rumor was
believed for a time, because it was started by one of the first
bankers of New York. Unfortunately Mr. Gerard heard of this canard
while he was still on the ship, and as he was travelling with Herbert
Swope a denial, sent by wireless, appeared in _The World_, which
was worse than the rumor itself. In this Swope reported that Mr.
Gerard was coming over to announce the approaching beginning of
ruthless submarine war. Just at this moment the U53 appeared at
Newport, and two days later I had an audience of the President,
which had been a