“The question of provisioning the German people,” he wrote in a letter to the Army Headquarters, “is closely connected with the solution of the Italian and Roumanian difficulties. No pressure is, in my opinion, too strong in order to make it perfectly clear to Austria that some sort of an agreement with Italy is a sine qua non for the successful termination of this war. If it were argued that Italy would come forward with fresh demands as soon as her original claims had been satisfied, I think the German Government could combat this objection by insisting upon a written promise on the part of Italy to the effect that she would not extend her demands.

“ ... Political and military considerations make it plain beyond any question of doubt that Italy, who will be armed to the teeth in March, will not be able to lay down her arms again unless Austria arrives at an understanding with her. Thus our greatest danger is the uncertainty as to what these neutrals will do, and I hope that the ministerial changes in Austria will smooth the way for a reasonable attitude towards this regrettable but unavoidable necessity. Our aim should be to prevent the scattering of our forces, for the burden imposed upon ourselves because of the inadequacy of our allies is almost superhuman, and contains the danger of exhaustion.”

The German mission to Italy suffered through the vacillations of Austrian politics, and was therefore doomed to failure. Austrian feeling concerning a compromise with Italy was always dependent on the news from the Italian front; if this was favourable, people did not want to hear of it, and in the opposite case they would only discuss such an understanding most unwillingly. The proposed compromise was looked upon as a heavy sacrifice, and people were by no means favourably disposed towards German mediation. Prince Bülow was accused of having “presented Italy with the Trentino.” Disquieting news which Ballin received from Vienna induced him to report to the Chancellor on the state of Austrian feeling, and to offer his services if he thought that his old-established relations with Vienna could be of any use. His offer was also prompted by his conviction that the German diplomatic representation in Vienna was not adapted to Austrian mentality.

Thereupon Ballin, early in March, 1915, entered upon a semi-official mission to Vienna. He first acquainted himself with the actual state of the Austrian mind by calling on his old friend, his Excellency v. Schulz, the Vice-President of the Austrian Chief Court of Audits, who was regarded as one of the best informed personages in the capital, and who was one of the regular partners of the old Emperor Francis Joseph for his daily game of tarock. This gentleman told Ballin that the people of Austria felt a good deal of resentment towards Germany, who had stepped in far too early as the “advocate of Italy,” at a time when Austria was still hoping to settle Serbia all by herself. This hope, indeed, had proved an illusion; but Germany’s strategy had also turned out a failure, because she had misjudged the attitude of Great Britain, and had not finished with France as rapidly as she had expected to do. Now Austria, confronted by stern necessity, would have to make concessions to Italy which every true Austrian would view with bitter grief; and, to bring about the active assistance of Roumania, Count Tisza would consider a sacrifice in the Bukovina debatable, but never one in Transylvania. Ballin told his friend that, as far as Roumania was concerned, he would have to leave it to Austria to settle that question by herself; and that his mission with regard to Italy was so difficult that he preferred not to make it more so by trying to solve the Roumanian problem as well.

Ballin’s subsequent interviews with the Prime Minister, Count Stürgkh, and with the Minister v. Koerber, as well as those with other influential personages, confirmed these impressions, and he left Vienna buoyed up by the hope that the conference between German, Austrian, and Italian delegates which it was proposed to hold at Vienna would lead to a successful result. Such, however, was not the case, and it is quite probable that the possibility of arriving at an understanding with Italy had passed by that time, or, assuming the most favourable circumstances, that only immediate and far-reaching Austrian concessions could have saved the situation; but these were not forthcoming.

The next subject which caused much anxiety to Ballin was the question as to what Roumania would do, a country to whose attitude, considering her importance to Germany as a food-producing area, he attached even more value than to that of Italy. In his notes dating from that time he said:

“ ... June 21st, 1915. The news which I received from X. regarding the political situation in Roumania and Bulgaria was so serious that I felt bound to send copies of these letters to the Chief of the General Staff, General v. Falkenhayn, and to inform him that, in my opinion, our Foreign Office had now done all it could possibly do, and that nothing but some forcible military pressure such as he and Baron Conrad could exercise on Count Tisza would induce this obstinate gentleman to settle his differences with the Balkan States....”

“ ... On this occasion X. expressed a great deal of contempt at the suggestion that we should draw upon the members of the old diplomacy for additional help. On the whole, he seemed to be very proud of the achievements of the Foreign Office, whereas I am of opinion that this body has entirely failed, and is of no practical use any longer. Things must be in a pretty bad state if Herr Erzberger, of all people, is looked upon as the last hope of the country. I suggested to the gentlemen that it would do some good if the Chancellor were to request the more virulent of the Pan-Germans to see him, and to ask Hindenburg to explain to them the military situation without any camouflage. This suggestion was favourably received, and it is to be passed on to the Chancellor....

“ ... The Chancellor informed me that he was considering whether, if Roumania remained neutral, and if the operations against the Dardanelles terminated successfully for us, he ought to submit any official proposals for peace to our enemies. I expressed my admiration of the plan, but told the Chancellor of my objections to its practical execution. The Entente, I feared, would refuse to entertain the proposals, and the German people would regard it as a sign of weakness. The Chancellor asked me to refrain from pronouncing a definite opinion for the present, but to think it over until our next meeting.”

In a letter of July 31st, 1915, Ballin wrote as follows:

“I should like to express my heartfelt gratitude to you for sending on to me the report which contains some of the finest observations that have come to my knowledge since the outbreak of the war.

“ ... The writer lays great stress on the belief prevalent in enemy and neutral countries alike that Germany is making a bid for universal supremacy and for supremacy on the high seas—a belief which has spurred on the resistance of the enemy to the utmost, and has caused a good deal of bad feeling amongst the neutrals. I repeatedly brought this fact to the knowledge of the Chancellor and I urgently suggested to him that in some way—e.g., by an Imperial proclamation on the anniversary of the outbreak of war, or by some other suitable means—we should announce to all and sundry that such hare-brained schemes are not entertained by any responsible person or body of persons in Germany. I sincerely trust that some such steps will be taken at an early opportunity, because otherwise I do not see when the war will be over. Though not a pessimist I do not believe in taking too rosy a view of things. I envy the British because they have the courage openly to discuss in their press and parliament the reverses as well as the successes they have had.

“ ... You see I am not taking too cheerful a view of matters. I have nothing but the most enthusiastic admiration for the achievements of the German people, both at the front and at home. Although not gifted politically this people could do wonders if led by great statesmen and by great politicians.”

“ ... August 10th, 1915. This morning I spent an hour with the Chancellor, who had requested me to call on him.... We had a long discussion as to the advisability of publishing a statement to the effect that Germany would be ready at any moment to discuss an honourable peace. She had achieved great successes in the field, she was in possession of important mortgages, her armies were occupying large tracts of the enemy’s country, and she was not carrying on a war of aggression but one of defence: therefore such a step could not be regarded as a sign of weakness. The Chancellor, nevertheless, was afraid that such a step might after all be interpreted in that sense. I suggested to him that it might be of some use if the Pope could be induced to address a peace message to the rulers of the various countries.

“I also called the Chancellor’s urgent attention to the need for dealing with the food problem during the ensuing winter, especially with relation to the price of meat.”

“ ... August 12th, 1915. The United States Ambassador, Mr. Gerard, had expressed the desire to discuss with me the question as to the advisability of suggesting that President Wilson should mediate between the belligerents. I therefore called on him on Tuesday, August 10th, and advised him to refrain from any official action in that direction, but said that I thought he might ask the President to sound opinion in Great Britain as to the chances of such peace proposals.”

In the early part of September, 1915, Admiral v. Holtzendorff was appointed Chief of the Admiralty Staff. This appointment gave rise to a conflict with Grand Admiral v. Tirpitz, who threatened to resign because, inter alia, the Kaiser had issued instructions to the effect that the Chief of the Admiralty Staff should no longer be subject to the authority of the Secretary for the Navy, but that he could communicate with the Kaiser and with the Chancellor direct. Ballin thought a possible resignation of Admiral v. Tirpitz would be fraught with serious consequences at that moment, as it would produce a bad impression on public opinion and be inimical to the position of the Kaiser. These considerations caused Ballin to intervene in person with Admiral v. Tirpitz and with the Chief of the Naval Cabinet, with the result that the Grand Admiral withdrew his intended resignation.

The following extracts are taken from Ballin’s notes during the next few months:

“ ... October 20th, 1915. I am annoyed at the importunity with which some interested parties, such as the Central Association of German Manufacturers and the representatives of agriculture, are pushing forward their views on the peace terms. Moreover, my alleged readiness to conclude a ‘bad peace’ with Great Britain is being talked about so widely that even His Excellency Herr v. Zimmermann has drawn my attention to the ill effects of such calumnies. All this has prompted me to avail myself of the opportunity presented by the annual meeting of the Association of Hamburg Shipowners of making a speech in which I have explained my views as to the freedom of the seas.

“Prince Bülow will be leaving for Lucerne to-day where he intends to stay for some time, and the Prussian chargé d’affaires, Herr v. Mutius—of whom it has been alleged that the Chancellor appointed him to his post on the death of his predecessor (the excellent Herr v. Bülow, Prussian Minister to Hamburg) for the reason that he might have a watchful eye on Prince Bülow and myself—has been promptly transferred to Warsaw. Evidently the Berlin authorities now think the danger has passed, since Prince Bülow has left.”

“ ... November 23rd, 1915. Hammann[4] asked me why I did not call on the Chancellor, and I told him that I thought the Chancellor might feel annoyed with me for my interference in favour of Tirpitz, which, however, would not affect me in any way, because I was convinced that I had acted in the best interests of the Kaiser, and that it would have been unwise to remove Tirpitz from his post so long as the war lasted.”

“ ... The Chancellor asked me to see him on Wednesday at 6.30 p.m., and I spent nearly two hours with him. I urgently advised him to make a frank statement in the Reichstag as to our readiness for peace, and to do so in such a form that it could not possibly be looked upon as a sign of weakness.”

“ ... On January 10th, 1916, I was commanded to dine with Their Majesties at the Neues Palais. The only other guests apart from myself were the Minister of the Royal Household, Count Eulenburg, and the Minister of Agriculture, Herr v. Schorlemer. None of the suite were present so that the company consisted of five persons only. The Kaiser was in high spirits and full of confidence. The after-dinner conversation extended to such a late hour that we did not catch the train by which we intended to return, and we were obliged to leave by the last train that night.

“A remark of mine concerning the possibility of an extension of submarine warfare had, as the Chancellor had been informed, caused the Kaiser to assume that I completely shared the point of view of Admirals v. Holtzendorff and v. Tirpitz, who now recommend a submarine campaign against Great Britain on a large scale. I therefore, at the Chancellor’s request, addressed the following letter to the Kaiser:

“‘A few days ago I had occasion to discuss with Grand Admiral v. Tirpitz and Admiral v. Holtzendorff the question of a resumption of the submarine campaign.

“‘I was then given confidential information as to the number of submarines at our disposal, and I am bound to say that even if due allowance is made for the activity of the mine-seeking auxiliaries I regard the number of large submarines as insufficient for the purposes of such a finally decisive measure.

“‘The first attempt at submarine warfare proved unsuccessful on account of the insufficiency of the means employed to carry it through; and it is my humble opinion that a second attempt should only be undertaken if its success were beyond the possibility of a doubt. If this cannot be guaranteed the consequences of such a measure appear to me to be out of all proportion to the risks attached to it.

“‘I therefore beg to respectfully suggest to Your Majesty that the work of the mine-laying auxiliaries should be carried on as hitherto, and should even be extended. I also consider that the submarines should be made use of to the fullest extent of their capacity, with the proviso, however, that their employment against passenger steamers should be subject to the restrictions recently laid down by Your Majesty.

“‘When the number of the big submarines shall be sufficient effectively to cut off the British food supply, I think the time will have arrived for us to employ this weapon against Great Britain without paying regard to the so-called neutrals.

“‘At present about two hundred ocean steamers or more enter British ports every day, and an equal number leave for foreign ports. If we sink a daily average of 30 or 40 we can, indeed, greatly inconvenience England, but we shall assuredly not be able to compel her to sue for peace.

“‘I humbly apologize to Your Majesty for thus stating my views on this matter; but I am of opinion that the extreme importance of the proposed steps will be a sufficient excuse for me.’”

In the early part of 1916 Ballin went on a second mission to Vienna, and afterwards he prepared a detailed report for the Chancellor dealing with the state of public feeling as he found it. This document presents a faithful picture of the precarious conditions in that capital which the German Government had constantly to reckon with, and may therefore be of interest even now. The following passages are extracts from it:

“If we desire to keep the Austrian fighting spirit unimpaired we must avoid at all hazards suggesting the possibility of an understanding with Italy. The Italian war is popular down to the lowest classes of the people, and the successful stand against Italy is a subject of pride and hope to all Austrians.

“Hence the circumstance that Prince Bülow has temporarily taken up his abode at Lucerne has roused a considerable amount of suspicion. Even the officials in the various ministerial departments fear that the Prince might intend to make unofficial advances to Italy when in Lucerne, and that these steps might be followed in Berlin by a movement in favour of a separate peace with Italy by which Austria would have to cede the Trentino. People were obviously pleased and relieved when I could explain to them that the Prince was greatly embarrassed on account of having lost his Villa Malta, and that the choice of a suitable residence during the winter had been very difficult. They were particularly gratified when I told them—what I had heard from the Prince’s own lips—that he had had no official mission, and that he had not been engaged upon any negotiations.

“People are especially proud of the Isonzo battles, but they do not shut their eyes to the uncertain prospects of a successful Austrian offensive. They really consider that Austria has gained her war aims, and the old Emperor described the military situation to Frau Kathi Schratt by saying that the war was in many respects like a game of tarock, in which the winner was not allowed to cease playing because the losers insisted upon him going on with the game so that they might have their revenge. Matters at first had been to the advantage of our enemies: the Russians had overrun Galicia, the Serbians had defeated the Austrians at Belgrade, and the French had looked upon the retreat from the Marne as a great success. Now, however, the war was all in favour of Germany and Austria, and therefore our opponents did not want to call a truce just yet.

“If this comparison which the venerable old gentleman has borrowed from his favourite game of cards is correct, the war will not be over until one side has nothing further to stake, and the decision will be brought about by that side whose human and financial resources shall last longest.

“Banking circles, of course, view the financial situation with the utmost gravity, but the general public—in spite of the high prices ruling here, and in spite of the great want of food which is much more noticeable than with us—regard matters a great deal more serenely. This is simply due to the greater optimism so characteristic of the Austrians, whose motto is: ‘Life is so short, and death so very, very long.’ They prefer to assign to future generations the worries which would spoil their sublunary existence.

“The present Cabinet is looked upon as weak and mediocre. The old Emperor clings to Count Stürgkh because of the extensive use to which the latter puts the celebrated paragraph 14 of the Constitution, by which Parliament is eliminated altogether, and which provides the Government with every conceivable liberty of action. The all-powerful Tisza gives his support to Count Stürgkh just because of his weakness. Hence the attempt to replace the latter by Prince Hohenlohe, the present Minister of the Interior, is beset with much difficulty. The Emperor wants to avoid a break with Tisza at all costs. This state of things makes people feel very worried. The strain in the relations between Austria and Hungary has greatly increased since my last visit, whereas the friendly feelings for Germany are now more pronounced than ever.

“Our Kaiser everywhere enjoys an unexampled veneration. Within the next few days he will be made the subject of great celebrations in his honour. Although the tickets of admission are sold at enormous prices, even General v. Georgi, the Chief of the National Defence Organization—whom I met last night—did not succeed in obtaining a box, notwithstanding his high connexions. This morning the well-known member of the Hofburg Theatre, Herr Georg Reimers, read to me two poems dedicated to the Kaiser which he is going to recite that night, and I feel bound to say that it can hardly be an unmixed pleasure to the members of the court to witness this act of enthusiastic homage paid to our ruler.

“The Roumanian question, particularly in its bearing on the food supply, is regarded by people who are able to judge with great anxiety. It is believed that the only thing to do is to send to Bucharest experienced men connected with the supply and the distribution of food who must be properly authorized to purchase as much grain as possible for ourselves and for our allies.

“The big Austro-German Zollverein—or by whatever other name it is intended to describe the proposed customs union—is looked upon with very mixed feelings. Last night Baron Skoda (the Austrian Krupp) explained to me after a dinner given at his house, with the lively consent of members of the court and of the big manufacturers, that the Austrian interests might indeed profit from such a union with the Balkan States, but that it would be better that Germany should remain an outsider for a period of fifteen years. This is evidently a case of timeo Danaos, et dona ferentes, and people feel that Austria, owing to her economic exhaustion, would be easily absorbed by Germany after the conclusion of the war. The Hungarians, naturally, view matters from a different angle, not only because the Hungarian farmers would like to sell their grain to Germany free of any duty, and because industry counts for very little in their country, but also because they dislike the Austrians.

“ ... I also dined with Count Tisza. He is a purely Magyar politician who regards the international situation from his Hungarian point of view, and in conformity with his Magyar inclinations. He is evidently a strong if obstinate character, and he does not impress me as a man who will give up his post without a protest. He, too, thinks the real war aims of Austria-Hungary have been accomplished. Serbia is crushed, Galicia liberated, and Russian supremacy in the Balkans—formerly viewed with so much apprehension—is a thing of the past. All that is wanting now is to bring the Italian campaign to a successful conclusion and the war may be regarded as over as far as Austro-Hungarian interests are involved.

“Both Tisza and the Austrian society showed strong symptoms of an Anglophile leaning. Frau Schratt, who in such matters simply re-echoes the views of the old Emperor, seemed very pro-English, and had something to say about ‘German atrocities.’

“I mention these facts because I cannot help thinking that, notwithstanding the war, some friendly threads must have been spun across from England to Austria.”

The subject of an unrestricted submarine war, already touched upon by Ballin in his above-mentioned letter to the Kaiser written in January, 1916, was discussed with much animation in the course of the year, and a powerful propaganda in its favour was started by certain quarters. Ballin’s attitude towards this question, and particularly towards its bearing on the possible entry of the United States into the war, is described with great clearness in a letter addressed to a friend of his attached to the Army Headquarters. In this message he wrote:

“ ... You ask me to tell you something about the political and military situation as I see it, and I shall gladly comply with your wish.

“The American danger seems to be averted for the moment at least. A severance of diplomatic relations with the United States would have been nothing short of fatal to Germany at the present stage. Just because the war may be looked upon as won in a military sense, we were obliged to avoid such a catastrophe at all costs. As far as military exertions are concerned, it is quite correct to say that Germany has won the war, because in order to turn the present position into a military defeat our enemies, in the first instance, would have to gain military victories in Russia, France, and Belgium. These would have to be followed up by our retreat from the occupied countries and by their invasion of ours, and they would have to defeat us at home. Every sensible critic must see that neither their human material nor their organizing powers are sufficient for such achievements. The fact is that we have reached the final stage of a progressive war of exhaustion, which nothing but the intervention of the United States could have prolonged.

“The accession of Italy to the ranks of our opponents has shown what it means if an additional Power enters the war against us. From a military point of view the entry of Italy did not materially aggravate our position; but the whole aspect of the war, as viewed by our enemies, underwent a complete change, and Grey, who shortly before had announced that ‘there is nothing between us and Germany except Belgium,’ stated a few weeks subsequent to the Italian volte-face that he could not find a suitable basis for peace negotiations anywhere.

“The entry of the United States would have been of immeasurably greater effect on the imagination and the obstinacy of our enemies.

“The very intelligent gentlemen who even now preach the unrestricted submarine war, especially the leading members of the Conservative and National Liberal parties, are misinformed about what the submarines can do. They not only regard it as possible, but even as practically certain, that the starvation of Great Britain could be achieved if the unrestricted submarine war were introduced. I need not tell Your Excellency that such an assumption fails to estimate things at their true value. Great Britain will always be able to maintain her connexion with the French Channel ports. Quite apart from that, she will always succeed in importing the 14,000 tons of cereals which she needs every day to feed her population even if the number of our submarines is trebled, because it must not be forgotten that the submarines cannot operate during the night.

“Hence the whole problem is now, as ever, governed by the axiom to which I have over and over again drawn the attention of the heads of the Berlin economic associations, viz. that we can no more force the British into subjection through our submarines than they can hope to wear us out by their starvation blockade. Both the submarine war and the blockade are extremely disastrous measures, inflicting heavy losses on either side; but neither of them can determine the fate of the war nor bring about a fundamental improvement in the position of either of the belligerent groups of Powers. That, apart from all other considerations, the unrestricted submarine war would have exposed us to the open hostility of the neutral countries, and might even have caused them to join the ranks of our enemies, is an additional contingency which the submarine enthusiasts have found it most convenient to dismiss by a wave of the hand.

“If after the war Germany remains isolated from the rest of the world, she cannot feed her population, and the doctrine of Central European brotherhood promulgated by some of our amiable poets has given rise to a movement which is apt to be of the greatest detriment to the interests of our country when the war is over.

“If we had wished to invest large parts of our German national wealth in countries like Austria-Hungary, Bulgaria, and Turkey, nothing could have prevented us from realizing such a plan at any time previous to the war, provided we had thought it economically sound.

“Such a return to a continental policy, I maintain, would be a disaster to Germany. Our needs and our aspirations have increased to such an extent that we can no longer hope to satisfy them by economic isolation or within the framework of a Central European economic league of states.

“It is not because I am at the head of the biggest German shipping concern that I tell you these things, but I do so with the disinterestedness of a man who hopes to be allowed to retire into private life when this terrible war is over. No one can perform his life’s work more than once, and no one can make a fresh start at the age of sixty.

“The war has considerably strengthened the moral fibre of the Chancellor; he has learnt to take upon his shoulders responsibilities which, I think, he would formerly have shirked. It is much to be regretted that the Conservative party cannot see eye to eye with him in so many questions. He is blamed for the fact that the Kaiser is so difficult of access, and that he does not every now and then receive the leaders of our political and economic life, as he should do considering the fateful time through which the Empire is passing.

“If the Chancellor is to succeed in carrying through the huge tasks still before him, it is, in my opinion, imperative that he should not lose touch with Conservative circles, and I think there is no reason why the Kaiser should not ask men like Herr v. Wangenheim, Count Schwerin-Löwitz, etc., to visit him from time to time at headquarters, and to acquaint him with their wishes and anxieties.

“I cannot help telling you that the whole nation views with profound regret the Kaiser’s isolation. Since the outbreak of the war I have only once had an interview with His Excellency v. Falkenhayn, and the main purpose of my asking for it was to request him to bring about a change in this state of things by using his influence with the Kaiser. His Excellency frankly told me that he had some objections to doing this, but he promised me nevertheless that he would exercise his influence in this direction. I am only afraid that, because of the excessive burden of work he has to get through, the matter has slipped his memory....”

Ballin was not the only one who, as early as 1916, regarded with such alarm the devastating effects of a possible entry of the United States into the war; other men of political training thought so too, although their number was not large. The following passages, taken from two letters which Ballin received from a member of the German diplomatic service, show that the feeling was there:

“February 16th, 1916. My chief apprehensions are purely political. Although it seems that for the moment our differences with the United States will be smoothed over, there can be no doubt but that at times the tension has been so great that a wrong move at the critical moment would have caused America to take up arms against us. Contrary to what most people seem to think, I regard this danger as having by no means passed; in fact I look upon it as always lurking in the background. Those who, like myself, have seen that the secret ideal of British policy is an alliance and permanent co-operation with America, will agree with me that such an Anglo-American understanding for the period of this war would be of lasting detriment to our whole future. You know England, and you know that the course of events has turned the Entente automatically into an alliance, although the British, especially those who look beyond the actual present, have always felt a great deal of aversion towards such a development. The individual Frenchman, indeed, is mostly looked upon as a somewhat grotesque and slightly ludicrous character, but all the same there exists some sympathy with the French as a nation, however artificially this may have been brought about; but towards Russia the average Englishman never felt anything but an icy aloofness and a great deal of antipathy. Hence, the so-called allies of the British have never been the cause of unalloyed joy to them.

“On the other hand, to establish permanent relations with that part of the Anglo-Saxon race inhabiting the huge continent across the Atlantic has at all times been the aim pursued by every really far-sighted British statesman. By means of such an alliance, it is hoped to consolidate and to strengthen for many generations the foundations on which the venerable but also slightly dilapidated structure of the United Kingdom rests. From a purely maritime point of view, such an alliance would be of overwhelming strength. In my opinion it would be perfectly hopeless for our country, constantly menaced as it is by serious Continental complications, to gain the trident of Neptune in opposition to these two Powers. I believe an Anglo-American league, whose object it would be to prevent us from becoming a commercial, naval, and Continental Power, would restrict us once more to a purely Continental policy, a policy which we have so successfully discarded since the accession of our present Kaiser.

“To frustrate such an alliance must be our principal task. To call it into being or even to facilitate its conclusion would be the greatest crime against Germany’s future which anyone could commit.

“Let us by all means sink as much enemy tonnage as possible, let us lay mines, and let us proceed with our submarine warfare as hitherto, or even with more energy, but let the people who are at the head of the whole movement be aware of the immense responsibility that rests on their shoulders. If our leading men speak of a war with America just as cheerfully as though San Marino or Montenegro were involved, I cannot help viewing such an attitude with the utmost apprehension. The British will use all their astuteness and all their energy to exploit any mistakes committed by Germany. If they succeed in this, and if, in consequence, our relations with the United States become very strained again or drift towards a rupture, I fear that we shall not be able to bring this war to a successful close, or derive from it any security for our future development.

“Berlin, February 26th, 1916. During the two days I have now been here it has greatly depressed me to see a number of fanatics who cannot gauge the consequences of their doings attempting to drive this splendid German people towards a new abyss. Alas! delusions and folly are rampant everywhere. If I were you, I should now disregard every other consideration, and explain to the Kaiser as a friend that everything is being gambled away: the existence of his Empire, his crown, and possibly the fate of the dynasty. It is like living in a madhouse; everyone talks about war with Holland, America, Denmark and Roumania as though a mere picnic were concerned.”

During the war Ballin tried over and over again to make the responsible authorities see the position in the same light as his own observations, and his repeated discussions with unprejudiced and clear-headed men had led him to see it himself. The letter reproduced below contains a description of the general situation at the time of writing (July, 1916). It was addressed to a friend of his in the diplomatic service who was looking after German interests in one of the countries allied with Germany, and who had asked him for some information concerning the situation at home:

“I am sorry that I can send you no good news at all. The conduct of the war and its probable outcome are more of a mystery now than ever, and with all that I cannot help feeling that our responsible quarters do not even now realize the profound gravity of the situation. The political and the military leaders are frequently at variance. There is a lack of proper co-operation between Berlin and Vienna. We imagine ourselves to be the rider, but we are only the horse. The road between Berlin and Vienna is studded with compromises of doubtful value, and incapable archdukes are given the most important positions.

“The military situation was favourable until the Austrians thought their day of reckoning with Italy had come, and when our own Supreme Command set out to cover themselves with laurels in France.

“Both these undertakings turned out to be political and military failures. For hundreds of reasons an early peace is imperative to us. As matters stand at present only Great Britain and Russia can conclude peace, because France and Italy must be regarded as mere British vassals.

“Since the Cabinets of London and Petrograd remain absolutely deaf to our publicly expressed overtures for peace, we have no choice but to try to utterly defeat the one or the other of these, our principal enemies, either Russia or Great Britain.

“We could have finished with Great Britain if we had had at least 300 first-class submarines, and in that case we might have regarded a war against America with complacency.

“However, even if we possessed, as some optimists believe, as many as 150 first-class submarines, we could not strike a mortal blow at Great Britain and defy the United States as well. Therefore, we have only one choice left: we must force Russia, our second chief enemy, to her knees.

“Russia has been badly hit through the loss of the industrial regions of Poland. If we had exerted all our strength in that direction, and if we had taken Kiev, the economic key to Russia, the Tsar would have had no alternative but to conclude a separate peace, and this would have settled the Roumanian question at the same time.

“With less certainty, but also, perhaps, with less exertion, it might have proved possible to make peace via Petrograd. But what have we done instead? We have squandered our forces. The Eastern theatre of war was denuded of troops, because at first Falkenhayn felt sure he could take Verdun in a fortnight, then by Easter, and finally by Whitsuntide. All our forces have been hurled at Verdun; rivers of blood have been spilt, and now, in July, we are still outside it. And what does it profit us if we do get it? We shall only find other and more formidable lines behind it.

“In the meantime our good Austrians have transferred all their reliable officers and men to the Tyrol, and have left nothing but the rubbish and their inefficient generals to guard the points of danger. And what are the results? A graceful retirement for Salandra and the formation of an anti-German coalition government in Italy on the one hand, and a manifestation of Austrian superiority on the other, but a failure, nevertheless, because the Austrians were not strong enough numerically to get down into the plain. And even if they had compelled the evacuation of Venetia nothing would have been gained. The fate of Italy, as it happens, does not depend on Austria, but on Great Britain, who will rather watch her starve and perish for want of coal than permit her to sue for peace.

“Although all this is perfectly plain to everyone, our Supreme Command seems to be undecided as to whether an offensive with all the means at our disposal should be started on the Western Front simultaneously with one against Russia, or whether it should be directed against Russia only. As far back as last year I exerted all my influence—small though it has become—in favour of an energetic and whole-hearted offensive against Russia.

“Well-informed and far-seeing men have justly pointed out that, if fortune so wills it, the Kaiser, arm in arm with Hindenburg and Ludendorff, could risk a ‘bad peace’ without danger to himself and his dynasty, but it appears beyond doubt that the influence of Falkenhayn is all-powerful.

“ ... If we were to arrive at an understanding with Russia to-day, we should be able to go on with the war against Great Britain for a long time to come, and, by means of unimpeded submarine activity, to carry it to a successful issue. In that case we could also estimate the danger threatening us from America at as low a figure as many who are unacquainted with the position are putting it now.

“Thus it is my view that it is necessary to abandon definitely the belief that the war can be brought to a successful issue on the Western Front, and without first defeating Russia. It is greatly to be deplored that many observers assert that the Western Powers will make peace when they have found out that the big offensive now in progress remains without any visible success. Only people who do not know Great Britain can put forward such a proposition, but how many people are there at the Wilhelmstrasse who do know Great Britain? Very few indeed, if any....

“ ... You said you would rejoice to hear from me, and I can only regret with all my heart that I have not been able to report anything to you in which it would really be possible to rejoice.”

A still more serious note is struck in the following letter written in September, 1916:

“Very many thanks for your welcome letter of yesterday’s date, with the contents of which I agree in every detail.

“I quite share your belief that Hindenburg and Ludendorff must each feel like a great physician who is only called in when it is too late. Two declarations of war within 24 hours were necessary to bring about this change which the German people had been looking forward to for months and months. The Chancellor is justly reproached for not having had the courage to insist upon the appointment of these two men and on the resignation of Falkenhayn long ago. It is contended that he should have tendered his own resignation if his recommendations were refused, and his neglect to do so makes him principally responsible for the fate that is in store for us. For a long time back I have kept emphasizing the need for transferring our main activities to the Eastern theatre of war, and for definitely settling these personal questions.

“The Chancellor clings to his post because he believes that there is no one better qualified than himself to be at the head of affairs. Such an attitude reminds me of the old gentleman who neither wanted to die nor to retire from his post as president of the Berlin Chamber of Commerce, and who bitterly complained to those who came to congratulate him on his ninetieth birthday that he was compelled to stick to his office, in spite of his advanced years, because he could not see a better man to succeed him.

“It is very sad that we have arrived at such an impasse, and I am convinced that the present internal political situation is untenable. No German Chancellor can possibly carry the business of the country to a successful issue if, in the midst of a terrible war, he is obliged to fight against an opposition consisting of the Conservatives, the representatives of the Heavy Industries, and the majority of the National Liberals.

“As far as I can make out, the Chinese wall surrounding the Kaiser has not disappeared with the exit of Falkenhayn from the scene. No one is granted access to him who knows something about the events that led up to this war, and who, in the interests of his dynasty as well as his own, would tell him the unvarnished truth. We are, after all, a constitutional country. It would doubtless be best to transfer General Headquarters to Berlin, but, of course, people are not wanting who object to such a proceeding, asserting that it would enable outside influences to acquire a hold on the conduct of affairs.

“How badly people are informed with regard to the actual situation was brought home to me when I was in Berlin a short while ago, and when X. contended with great emphasis that we should have to attach more value to huge indemnities than to annexations. If it is possible that the men round the Kaiser count on heavy indemnities even now, it shows how sadly they misjudge the real state of affairs.

“My feeling tells me that the present Cabinets, containing as they do men who are compromised by their actions since the outbreak of war, cannot give us peace. How can anyone imagine that men like Bethmann, Asquith and Grey, who have hurled such incredible insults at each other, can ever sit together at the same table?

“The question as to who is to succeed them, of course, abounds with difficulties.

“I recently met some Austrian gentlemen in Berlin. They are completely apathetic; they have lost all interest in the future, and they themselves suggest that Germany should no longer permit Austria to have a voice in the conduct of affairs. Her food supply will only last until March 1st. After that date she will depend on Hungary and ourselves for her food. She fears that she is not likely to get much, if anything, from Hungary; on the other hand, she feels sure that we are compelled for our own sake to save her from famine.

“Constantinople, too, has only supplies for a few more weeks.

“With us at home the paraffin question is becoming very serious. In country districts it may be possible to tell people to go to bed at curfew time, but the working population of our large cities will never consent to dispense with artificial light. Serious riots have already taken place in connexion with the fat shortage.

“I am afraid that Great Britain is trying to bring about such a change in the situation as will enable her shortly to tell the small neutral countries that no one in Europe will be permitted any longer to remain neutral, and that they must make up their minds to enter one or the other of the two big syndicates. You see nothing I can write to you has even a semblance of comfort in it. I regard the future with the utmost apprehension.”

In contrast to such views as were expressed in the foregoing letters, the men who were at the head of affairs at that time maintained that nothing but the application of rigorous force, or, in other words, the unrestricted use of the submarine weapon against Great Britain, would lead to a successful termination of the world war. The propaganda in favour of that measure is still in everybody’s memory. Whatever may be said in defence of the authors of this propaganda, there is one reproach from which they cannot escape, viz. that they left no stone unturned to prevent their opponents from stating their views, and this, on account of the strict censorship to which the expression of every independent opinion was subject, was not a difficult matter. Their one-sided policy went so far that, when a pamphlet on the question of submarine warfare was written by order of the Admiralty Staff and circulated among a number of persons, including leading shipping men, Ballin was purposely excluded, because it was taken for granted that he would not express himself in favour of the contents. It is not likely, however, that the methods of reasoning put forward in this document—which was much more like an academic dissertation than an unprejudiced criticism of a political and military measure affecting the whole national existence of Germany—would have induced Ballin to change his views on the submarine war. Once only, and then merely for a brief period, was he in doubt as to whether his views on that question were right, but he soon returned to his first opinion when he found that he had been misinformed regarding the number and the effectiveness of submarines available.

The inauguration of unrestricted submarine warfare in January, 1917, not only put a sudden end to the peace movement in which Ballin, as has been explained on a preceding page, played an important part, but also to the attempt of President Wilson to bring the two sides together. The details of the President’s endeavours have meanwhile become public property through the revelations of Count Bernstorff, the German ambassador in Washington. In both instances a few weeks would have sufficed to ascertain whether the proposed action was likely to bring about the desired end, and the former attempt had even led to the impending establishment of mutual contact between the belligerents. The inability of the German political leaders to avail themselves of this opportunity, or at least their failure to do so, has doubtless been the greatest misfortune from which Germany had to suffer during the whole war.

Notwithstanding the successful exploits of the submarines, Ballin’s apprehensions never left him, and they were not allayed by the development of the position at home. The letter published below, which he wrote to the Chief of the Kaiser’s Civil Cabinet, believing that this gentleman would be most likely to assist him in laying his views before the Kaiser, admirably sums up his feelings, and testifies both to his real patriotism and to his presentiment of the fate that was to overtake his country:

Your Excellency,

April 4th, 1917.

The internal conditions of our country fill me with grave alarm, and I therefore venture to approach Your Excellency privately with this expression of my apprehensions.

“I do not doubt for a moment that our competent authorities intend to extract the utmost advantage to ourselves from the situation which is developing in Russia. This Russian revolution may enable us to bring the war to a close, and to obtain peace terms which, relatively speaking, are not unfavourable.

“What Germany has achieved in this war is beyond all praise. A glance at the map shows how small she is compared with her opponents in the field; and yet she is bravely struggling against a world in arms in which even the few countries that have remained neutral are not our friends. It is, indeed, one grand epic. But unfortunately the position at home becomes more untenable every day.

“If we find ourselves compelled to reduce the bread ration still more, you will, I am sure, agree with me that the bulk of the people will suffer enormously through being underfed. In Austria, conditions are said to be worse still, and I am afraid that we shall even have to part with some of our stores to feed her population.

“At first sight the Chancellor’s speech in the Prussian House of Deputies appeared to be somewhat too comprehensive in its range of vision; but a few days later, when the news of the Russian revolution arrived, it almost seemed that his words had been prompted by Divine inspiration. After this Russian news had become known, it would have been impossible for him to make this speech without giving rise to the suspicion that these events had cast their shadow in advance on the Prussian Parliament. Unfortunately, however, this favourable development was not followed up by the right steps. On the contrary, the Chancellor, after his breezy advance in the House of Deputies, has now retired from the position he then took up, thus creating the impression that our policy is constantly shaped by all sorts of mutually contradictory views and currents. Up to now, although the people have to suffer greatly through the shortage of food and fuel, their patriotism has put up with it because of their faith in the promised electoral reforms. It would have been so simple to reiterate this promise, and at the same time to point out that so many other things claimed precedence during the war, and that so much was at stake, that it would hardly be advisable to introduce this great reform at present, seeing that there was no time to give proper attention to the careful working out of all the details.

“If now, however, such bills as those dealing with the entailed property legislation and with the repeal of the Polish laws are to be discussed, such a postponement is no longer justifiable.

“It almost seems as if the Government is unable to read the signs of the times. The fate of the Prussian suffrage reform bids fair to resemble that of the sibylline books, of which it was said that the longer one hesitated to buy them the more expensive they became. To-day the people would still be content to agree to plural voting, but when the war is over, and when the Socialist leaders are demobilizing their men, inducing tens of thousands of them, decorated with the Iron Cross, to air their grievances, it will be too late to stop the ball from rolling. It is true that people say revolutions are impossible in the era of the machine-gun. I have no faith in this theory, especially since the events that have happened in Petrograd have become known to us. That, in a country like Russia, the reigning family could disappear from the scene without any opposition, and without a single Grand Duke or a single soldier attempting to prevent it, is certainly food for much reflection.

“I hope Your Excellency will pardon me for thus frankly expressing my anxieties, but I considered it my duty to let Your Excellency know my feelings.”

In May, 1917, Ballin accepted an invitation received from the Supreme Army Command and paid a visit to General Headquarters, where he found a great deal of discontent prevailing with the policy of the Chancellor. He also met the Kaiser, and reports on his visit as follows: