I have heard them talk of the cost of the war from the very beginning.  They gloated over the sweeping indemnities they would exact.  After they realised the possibilities of State-organised scientific burglary in Belgium they were beside themselves in joyful anticipation of what Paris, London, and a score of other cities would yield.  When the war became a temporary stalemate, I heard it said, particularly by army officers, that Germany was taking no chances with the future, but was exacting indemnities now from the occupied districts.  When taxes rose and food shortage increased, the possibility that the Germans themselves would have to pay some of their own costs of the war in various forms of taxation determined a rapidly growing number to seek a way out by emigrating at the first opportunity.

As Herr Ballin said, “The world will find us as strongly organised for peace as we were organised for war.”  The labour problem, however, not only now, but for the days of reconstruction, is viewed very seriously, how seriously may be gathered from the fact that there is so much apprehension that Russia may refuse to allow her workers to go to Germany for some years after the war, that nearly everyone at the secret conference mentioned above was in favour of making concessions at the peace conference, should Russia insist.  Indeed one Rhinelander was of the opinion that it would be worth while giving up Courland to get an unlimited supply of labour.

In the meantime the Germans have not been idle in other directions.  Until Hindenburg called up his immense levies in the late summer, Germany exported steel building materials and coal to contiguous neutral countries, but she can no longer do this.  Nevertheless, she did make elaborate preparations to “dump” into Russia on a colossal scale immediately after the resumption of intercourse.  Immense supplies of farming implements and other articles of steel have been stored in the Rhineland, Westphalia, and Silesia, ready for immediate shipment to Russia, thus enabling Germany to get ahead of all rivals in this field.

Germans also derive comfort from the fact that their ships will be ready at once to carry cargoes and passengers, while so many of those of the Allies will be used for the transport of troops after the close of the war, and must then rent.

With such plans for “getting the jump” on competitors it is only natural that I saw more and more irritability on the part of the financial men with each month of the war after last April.

Von Gwinner’s remark about the improbability of war between Japan and the United States in the near future would, if known to the German people, cause still another keen disappointment, since one of their solaces has been the thought that they would soon have an opportunity of reaping a munition harvest themselves.

When Germany tried to make a separate peace with Russia, Japan was also approached—­how far, I do not know.  The Wilhelmstrasse still maintains a Japanese department, and any possible thread, however light, which may be twisted from a Tokyo newspaper to show that perhaps Japan may be won over, is pounced upon most eagerly.  Germany, Japan, and Russia was the combination whispered in Berlin at the time of the unsuccessful attempt to separate the Allies.