"5. The President, in order to ascertain from Mr. M. P. how strong the German influence of this syndicate is, would like to have the trend of the German note before the note is officially sent, and declares himself ready, before the answer is drafted, to discuss it with M. P., and eventually to so influence it that there will be an agreement for its reception, and also to be ready to influence the press through a wink. "6. As far as the note itself is concerned, which he awaits, so he awaits another expression of regret, which was not followed in the last note. Regret together with the statement that nobody had expected that human lives would be lost and that the ship would sink so quickly. "7. The President is said to have openly declared that he could hardly hope for a positive statement that the submarine warfare would be discontinued." Dr. Albert conferred with Captains Boy-Ed and von Papen on all military and naval matters having a commercial phase. Captain von Papen, on July 7, 1915, submitted to Dr. Albert a memorandum for his consideration and further recommendation, headed "Steps Taken to Prevent the Exportation of Liquid Chlorine." He told of the efforts made by England and France to buy that chemical in America, estimated the output here, and cited the manufacturers. He also enclosed a plan for checkmating the Allies and concluded with the following paragraph: "It will be impossible, however, for this to go on any length of time, as the shareholders wish the profits to be derived therefrom. Dr. Orenstein therefore suggests that an agreement be consummated with the Electro Bleaching Company, through the President, Kingsley, whereby the delivery of liquid chlorine by this country to France and England will be stopped. A suggested plan is enclosed herewith. "From a military standpoint I deem it very desirable to consummate such an agreement, in order to stop thereby the further exportation of about fifty-two tons of liquid chlorine monthly, especially in view of the fact that in France there is only one factory (Rouen) which can produce this stuff in small amounts, while it is only produced in very small quantities, in England." During 1914 and 1915 German speculation in wool was active. Early in the war von Bernstorff summoned a German-American wool merchant recommended by a business friend in Berlin and directed him to buy all the wool he could secure. He did so, using Deutsches Bank credits for the purchases made for Germany, and making his purchases of wool for Germany even in Cape Town and Australia. The German-American, after following this practice for some months, decided that his financial allegiance belonged to America, so he tried, through Hugo Schmidt, to induce the German interests in his firm to sell out to him. On August 9, 1915, Schmidt wrote to Keswig, the Berlin principal: