The conversation at which the German Ambassador made the statement occurred at the house of James Speyer, the banker, in New York. Oscar S. Straus, a member of the Permanent Tribunal of Arbitration at The Hague, was present. In the course of a discussion of the war in Europe and the prospects of peace Count von Bernstorff, it is understood, said that, while he had no advices from the Imperial Government since he had left Berlin, he recalled that the Imperial Chancellor had told him that he believed Emperor William would be willing to discuss a proposal of peace through mediation. With the permission of Count von Bernstorff, Mr. Straus came to Washington and told Secretary Bryan of what the German Ambassador had said. On the following day Count von Bernstorff made a trip from New York to Washington and had an interview with Secretary Bryan. It has been understood that Mr. Bryan, in an excess of caution, desired to ask Count von Bernstorff personally if he would consent to having Ambassador Gerard instructed to make inquiry of the German Government as to whether the conversation between the Emperor and the Imperial Chancellor might be regarded as indicating that an offer of mediation of the United States would not be unwelcome to Germany. Count von Bernstorff is understood to have assented to Mr. Bryan's suggestion, and the instructions to Mr. Gerard followed. * * * * * WHO BEGAN THE WAR, AND WHY? CASE FOR THE TRIPLE ENTENTE * * * * * FIRST WARNINGS OF EUROPE'S PERIL. Speeches by British Ministers. Sir John Simon, British Attorney General, in Speech Before Altrincham Liberals, at Manchester, July 25. We have been so filled with our own political development that some of us may not have noticed how serious a situation is threatening on the Continent of Europe. All I will say about it this afternoon is this--if times of anxiety are coming into relationships between different European powers, we in this country, and I think not only Liberals among us, have reason to be glad that our foreign administration is in the calm, cool hands of Sir Edward Grey.[06] [Cheers.] And let us all resolve that, whatever may be the difficulties and dangers which threaten the peaceful relations in Europe, the part which this country plays shall from beginning to end be the part of a mediator simply desirous of promoting better and more peaceful relations. * * * * * [06] On the next day, July 26, Earl Grey addressed to The London Times the following appeal for national unity: _To the Editor of The Times_: Sir: The Lord Chancellor, in his speech on Friday, called on every Liberal to work for the peace of Europe, but to go forward unflinchingly to civil war at home. It is obvious that the only hope of England's effective mediation lies in the unity and solidarity of the United Kingdom.