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, and has surrounded itself with a nimbus of invincibleness, came into the field. That gigantic Armada approached, and our fleet engaged it. The British Fleet was beaten. The first great hammer blow was struck, and the nimbus of British world supremacy disappeared." Germany announced trivial losses—one old battle ship, Pommern, three small cruisers Wiesbaden, Elbing and Frauenlob, and five destroyers.

It is a striking tribute to the prestige of the British Navy that the German fairy tale was received with incredulity in all Allied and in most neutral countries. In a small mountain village in the Apennines, the inhabitants of which, owing to economic difficulties, had small enthusiasm for the war, the news arrived that the British Navy had been beaten. "That is a lie" was the unanimous decision of the village. "Nothing on earth can defeat the British Navy." But false news, once it has started, may be dangerous, and in some quarters in America, even among friends of the Allies, there was at first a disposition to accept the German version. The ordinary man is apt Rh