Before two weeks had elapsed the controversy had become so intense that President Wilson (August 18, 1914) was moved to caution his countrymen against falling into angry disputes. “Every man,” he said, “who really loves America will act and speak in the true spirit of neutrality which is the spirit of impartiality and fairness and friendliness to all concerned.... We must be impartial in thought as well as in action, must put a curb upon our sentiments as well as upon every transaction that might be construed as a preference of one party to the struggle before another.”
=The Clash over American Trade.=—As in the time of the Napoleonic wars, the conflict in Europe raised fundamental questions respecting rights of Americans trading with countries at peace as well as those at war. On this point there existed on August 1, 1914, a fairly definite body of principles by which nations were bound. Among them the following were of vital significance. In the first place, it was recognized that an enemy merchant ship caught on the high seas was a legitimate prize of war which might be seized and confiscated. In the second place, it was agreed that “contraband of war” found on an enemy or neutral ship was a lawful prize; any ship suspected of carrying it was liable to search and if caught with forbidden goods was subject to seizure. In the third place, international law prescribed that a peaceful merchant ship, whether belonging to an enemy or to a neutral country, should not be destroyed or sunk without provision for the safety of crew and passengers. In the fourth place, it was understood that a belligerent had the right, if it could, to blockade the ports of an enemy and prevent the ingress and egress of all ships; but such a blockade, to be lawful, had to be effective.
These general principles left undetermined two important matters: “What is an effective blockade?” and “What is contraband of war?” The task of answering these questions fell to Great Britain as mistress of the seas. Although the German submarines made it impossible for her battleships to maintain a continuous patrol of the waters in front of blockaded ports, she declared the blockade to be none the less “effective” because her navy was supreme. As to contraband of war Great Britain put such a broad interpretation upon the term as to include nearly every important article of commerce. Early in 1915 she declared even cargoes of grain and flour to be contraband, defending the action on the ground that the German government had recently taken possession of all domestic stocks of corn, wheat, and flour.