In the early part of 1913 I wrote, in collaboration with a friend who possessed intimate knowledge of the foundations and the strength of the German Empire, a history of the German naval movement,[1] particular emphasis being laid on its economic basis. In the preparation of the present volume I have drawn upon this former work. It has been impossible, however, in the necessarily limited compass of one of the _Daily Telegraph_ War Books, to deal with the economic basis upon which the German Navy has been created. I believe that the chapters in "German Sea-Power" with reference to this aspect of German progress--for which my collaborator was responsible and of which, therefore, I can speak without reserve--still constitute a unique presentation of the condition of Germany on the eve of the outbreak of war. Much misconception exists as to the staying power of Germany. The German Empire as an economic unit is not of mushroom growth. Those readers who are sufficiently interested in the subject of the basis of German vitality, will realise vividly by reference to "German Sea-Power" the deep and well-laid foundations upon which not only the German Navy, but the German Empire rest. Whether this history should be regarded as the romance of the German Navy or the tragedy of the German Navy must for the present remain an open question. In everyday life many romances culminate in tragedy, and the course of events in the present war suggest that the time may be at hand when the German people will realise the series of errors committed by their rulers in the upbuilding of German sea-power. Within the past fifteen years it is calculated that about £300,000,000 has been spent in the maintenance and expansion of the German Fleet, the improvement of its bases, and the enlargement of the Kiel Canal. Much of this money has been raised by loans. Those loans are still unpaid; it was believed by a large section of the German people that Great Britain, hampered by party politics and effete in all warlike pursuits, would, after defeat, repay them. That hope must now be dead. The German people, as the memorandum which accompanied the Navy Act of 1900 reveals, were led to anticipate that the Fleet, created by the sacrifice of so much treasure, would not only guarantee their shores against aggression, but would give absolute protection to their maritime and colonial interests, and would, eventually, pay for itself. The time will come when they will recognise that from the first they have been hoodwinked and deceived by those in authority over them. It may be that German statesmen, and the Emperor himself, were themselves deceived by the very brilliance of the dreams of world power which they entertained and by the conception which they had formed of the lack of virility, sagacity and prescience of those responsible for the fortunes of other countries, and of Great Britain in particular.