Did President Wilson perceive this thoroughly Teutonic plot? I cannot say; but at any rate upon February 28, he astounded America by revealing once again Germany’s evil intentions toward the United States, and by so doing not only defeated the German Government’s particular plan but effectively cemented public opinion in this country, bringing it to a unanimous support of the government in the crisis which was slowly driving it toward war. That marked the last stand of German intrigue, as it was conducted before the war. Now there is a new danger—a danger whose concrete illustration lies before me in the account of that first engagement between United States warships and German submarines. The people of the United States, just entered into active participation in the war, are faced with a new peril—the betrayal of military and naval secrets to representatives of the German Government working in this country. Not only was it known to Germany that American troops had been sent to France, but the very course that the transports were to take had been communicated to Berlin. It is probable that other news of equal value has been or is being sent to Germany at the present time; and the United States is confronted with the possibility of submarine attacks upon its troop ships, as well as other dangers which, if not properly combated, may result in serious losses and greatly hamper it in its conduct of the war. What exactly is this spy peril which this country now faces and which constitutes a far greater, because less easily combated danger than actual warfare? How can it be got rid of? These are the questions which the American people and the American Government are asking themselves and must ask themselves if they are to bear an effective share in the war in which they are now engaged. Because of my former connection with the German Government and my work as a secret agent both in Europe and America, in the former of which I was brought into intimate contact with the workings of the secret service in other countries, I am prepared to give a reliable account of the general structure and workings of the German spy system in the United States as it is to-day. It is important to remember that the secret diplomatic service, as it was conducted in this country before the war, and with which I was connected, is entirely different both in its personnel and methods with the spy system which is in operation to-day. A little further on I shall point out why this is so and why it must be so.