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 United States Steel from 61 to 50½, Canadian Pacific from 194 to 185½, and Northern Pacific from 111⅜ to 108. At that time the high protectionists were blaming the Simmons-Underwood tariff act as responsible for this fall in values, while other critics of the Administration attributed it to the Federal Reserve Act—which had not yet been put into effect. How little the Wall Street brokers and the financial experts realized that an imperial conference, which had been held in Potsdam and presided over by the Kaiser, was the real force that was then depressing the market!

Wangenheim not only gave me the details of this Potsdam conference, but he disclosed the same secret to the Marquis Garroni, the Italian Ambassador at Constantinople. Italy was at that time technically Germany's ally.

The Austrian Ambassador, the Marquis Pallavicini, also practically admitted that the Central Powers had anticipated the war. On August 18th, Francis Joseph's birthday, I made the usual ambassadorial visit of congratulation. Quite naturally the conversation turned upon the Emperor, who had that day passed his 84th year. Pallavicini spoke about him with the utmost pride and veneration. He told me how keen-minded and clear-headed the aged emperor was, how he had the most complete understanding of international affairs, and how he gave everything his personal supervision. To illustrate the Austrian Kaiser's grasp of public events, Pallavicini instanced the present war. The previous May, Pallavicini had had an audience with Francis Joseph in Vienna. At that time, Pallavicini now told me, the Emperor had said that a European war was unavoidable. The Central Powers would