Doctrine, and upon the principle
of non-interference with European affairs. Finally, a scurrilous
attempt has been made by the Republican party to attack Wilson
in the flank, by getting a notorious Stock Exchange speculator
publicly to proclaim that members of the Administration, who knew
beforehand of Wilson's action, had taken advantage to speculate
heavily upon it. As this man could, however, produce no proofs,
he simply made himself ridiculous.

"I have already frequently called attention in my report to the fact
that the prolonged war hysteria over here has created an atmosphere
of gossip and tittle-tattle, which at other times would have been
regarded as impossible. For instance, even quite responsible people
believe that I have obtained for cash certain compromising letters
of Wilson's in order to be able to get a hold over him by this
means. Senator Lodge, in his own house, privately expressed the
view that this was a credible rumor, and then turned it to account
in the Senate. The President is so terribly put out by this and
other similar machinations on the part of the Republicans, who
refuse to grant him the fame of the peace-maker, that he recently
kept away from a public festival, because Mr. Lodge was to be the
principal speaker there.

"Owing to the incredible rumors which are bandied from mouth to
mouth here, I regarded it as necessary to bring an action against
one notorious swindler and blackmailer. I wanted to convince public
opinion that the Embassy had nothing to fear. I intend doing the
same thing in the case of all future attempts at blackmail, once
we have got a clean slate in regard to all compromising questions.
Our enemies will, however, persist in leaving no stone unturned in
order to cast a slur upon the Embassy, for their principal object is
to succeed in bringing about my recall, or the rupture of diplomatic
relations with Germany. Once they have accomplished this, they
are convinced that it will be an easy matter to draw the United
States into the war.

"As is well known, President Wilson received a reply from the Entente,
in response to his peace move, which contained conditions utterly
unacceptable to us. Messrs. Wilson and House regarded these conditions
as 'bluff,' and were as convinced, as they had previously been,
that the Entente would accede to a peace by arrangement. People
frequently alluded in those days to the fact that in the last
Anglo-American War of 1812-1814, the Eng