In many of his remarks at that time, Colonel House proved to be right, since the war was decided mainly by the entry of America and the consequent overwhelming superiority in men, money and material. Meanwhile, as a result of the traffic in munitions, feeling in Germany had turned sharply against the United States. Our position with regard to this question was very unfavorable as we had no legal basis for complaint. The clause of the Hague Convention which permitted such traffic had been included in the second Hague Convention at our own suggestion. Nevertheless it was natural that the one-sided support of our enemies by the rapidly growing American war industry roused strong feeling in Germany. As a result there began a controversy with the American Government similar to that with England during the war of 1870-71. Even in the United States there was a considerable minority which disapproved of the munitions traffic, though on moral rather than political or international grounds. It goes without saying that the agitation of this minority was supported in every way by the German representatives. There was no law in America to prohibit such support, which could not, moreover, be regarded as a breach of American neutrality. It is true that in this way a few Germans got themselves into an awkward position because they were suspected of stirring up the German-Americans, who together with the Irish played a leading part in the agitation against the Government. In particular, Dr. Dernburg became unpopular in America, since he began to address meetings in addition to his journalistic work. The Washington Government regarded him as the leader of the "hyphenated Americans" who were opposing the policy of the President's Administration, because the latter took up the strict legal standpoint that the traffic in munitions was permissible, and that it would therefore be a breach of neutrality in our favor if such traffic were forbidden after the outbreak of hostilities. President Wilson himself even had an idea of nationalizing the munition factories, which would have rendered traffic with the combatant Powers a breach of international law. When, however, he sounded Congress on this matter, it became evident that a majority could not be obtained for such a step. The United States had already brought forward a similar proposal at the Hague Conference with the intention of conceding one of the chief demands of the pacifists. It was in wide circles in America an axiom that the munitions factories were the chief incentives to war. As during the first winter of the war there were very few such factories in America the President's plan was not merely Utopian but meant in all seriousness, in which connection it should be noted that American industrial circles were among Mr. Wilson's bitterest opponents. If Mr. Wilson's proposal had been known to German public opinion he would have been more favorably judged.