In the way of direct hostile contact between the Navy Department and Germany we find the first steps taken in the placing of armed naval-guards on American merchantmen. While this was authorized by the government before war was declared, it was recognized as a step that would almost inevitably lead to our taking our part in the European conflict and the nation, as a consequence, prepared its mind for such an outcome of our new sea policy. Germany had announced her policy of unrestricted submarine warfare in February, 1917, and on February 10 of that month two American steamships, the _Orleans_ and the _Rochester_, left port for France in defiance of the German warning. Both vessels were unarmed and both arrived safely on the other side--the _Rochester_ was subsequently sunk--but their sailing without any means of defense against attack aroused the nation and spurred Congress to action. On March 12 the first armed American merchantman, the _Campana_, left port with a gun mounted astern, and a crew of qualified naval marksmen to man it. In the following October Secretary Daniels announced that his department had found guns and crews for every one of our merchant vessels designated for armament and that the guards consisted of from sixteen to thirty-two men under command of commissioned or chief petty officers of the navy. When the work of finding guns for vessels was begun the navy had few pieces that were available. While there were many fine gunners in the naval force, there were not a sufficient number of them to enable the quick arming of merchantmen without handicapping the war-ships. So every battleship in the navy was converted into a school of fire to train men for the duty, and the naval ordnance plants entered upon the work of turning out guns qualified for service on merchant craft. There were guns in stock, as a matter of fact, but the number was insufficient for the purpose in hand because, before the submarine developed a new sort of sea warfare, it was not the policy of the nations to arm merchant vessels other than those used as naval auxiliaries. But, as already said, so expeditiously were affairs carried on that some six months after the decision to equip our freighters and passenger-liners with means of protection we had the sailors and the guns necessary to meet all demands. The following telegraphic correspondence, between two St. Louis business men and the Secretary of the Navy, gives a very fair idea of the spirit in which the citizens of this country accepted the decision of the government to arm our merchant marine: "St. Louis, Mo., April 11, 1917. "_Hon. Josephus Daniels, Secretary of the Navy, Washington, D.C._ "We will pay $500 to the captain and crew of the first American merchant ship to destroy a hostile submarine after this date. Money will be paid on award by your office." "BENJAMIN GRATZ "ANDERSON GRATZ." To which Mr. Daniels replied as follows: