On the third of February I officially informed you of the sudden and unexpected action of the Imperial German Government in declaring its intention to disregard the promises it had made to this Government in April last and undertake immediate submarine operations against all commerce, whether of belligerents or of neutrals, that should seek to approach Great Britain and Ireland, the Atlantic coasts of Europe, or the harbors of the eastern Mediterranean, and to conduct those operations without regard to the established restrictions of international practice, without regard to any considerations of humanity even which might interfere with their object.  That policy was forthwith put into practice.  It has now been in active execution for nearly four weeks.

Its practical results are not yet fully disclosed.  The commerce of other neutral nations is suffering severely, but not, perhaps, very much more severely than it was already suffering before the first of February, when the new policy of the Imperial Government was put into operation.  We have asked the cooeperation of the other neutral governments to prevent these depredations, but so far none of them has thought it wise to join us in any common course of action.  Our own commerce has suffered, is suffering, rather in apprehension than in fact, rather because so many of our ships are timidly keeping to their home ports than because American ships have been sunk.

Two American vessels have been sunk, the Housatonic and the Lyman M. Law.  The case of the Housatonic, which was carrying food-stuffs consigned to a London firm, was essentially like the case of the Fry, in which, it will be recalled, the German Government admitted its liability for damages, and the lives of the crew, as in the case of the Fry, were safeguarded with reasonable care.  The case of the Law, which was carrying lemon-box staves to Palermo, disclosed a ruthlessness of method which deserves grave condemnation, but was accompanied by no circumstances which might not have been expected at any time in connection with the use of the submarine against merchantmen as the German Government has used it.

In sum, therefore, the situation we find ourselves in with regard to the actual conduct of the German submarine warfare against commerce and its effects upon our own ships and people is substantially the same that it was when I addressed you on the third of February, except for the tying up of our shipping in our own ports because of the unwillingness of our shipowners to risk their vessels at sea without insurance or adequate protection, and the very serious congestion of our commerce which has resulted, a congestion which is growing rapidly more and more serious every day.  This in itself might presently accomplish, in effect, what the new German submarine orders were meant to accomplish, so far as we are concerned.  We can only say, therefore, that the overt act which I have ventured to hope the German commanders would in fact avoid has not occurred.