The Story of the Great War, Volume 5: Battle of Jutland Bank; Russian Offensive; Kut-El-Amara; East Africa; Verdun; The Great Somme Drive; United States and Belligerents; Summary of Two Years' War
History
The Story of the Great War, Volume 5: Battle of Jutland Bank; Russian Offensive; Kut-El-Amara; East Africa; Verdun; The Great Somme Drive; United States and Belligerents; Summary of Two Years' War
World War, 1914-1918
This treaty was construed as giving German prizes brought to American
ports the right to come and go. The British Government contested the
German claim by demanding the release of the _Appam_ under The Hague
Convention of 1907. This international treaty provided that a
merchantman prize could only be taken to a neutral port under certain
circumstances of distress, injury, or lack of food, and if she did not
depart within a stipulated time the vessel could not be interned, but
must be restored to her original owners with all her cargo. Were the
_Appam_ thus forcibly released she would at once have been recaptured
by British cruisers waiting off the Virginia Capes. The view which
prevailed officially was that the case must be governed by the
Prussian treaty, a liberal construction of which appeared to permit
the _Appam_ to remain indefinitely at Newport News. This was what
happened, but not through any acquiescence of the State Department in
the German contention. The _Appam_ owners, the British and African
Steam Navigation Company, brought suit in the Federal Courts for the
possession of the vessel, on the ground that, having been brought into
a neutral port, she lost her character as a German prize, and must be
returned to her owners. Pending a determination of this action, the
_Appam_ was seized by Federal marshals under instructions from the
United States District Court, under whose jurisdiction the vessel
remained.
After twelve months of war Great Britain became seriously concerned
over the changed conditions of her trade with the United States.
Before the war the United States, despite its vast resources and
commerce, bought more than it sold abroad, and was thus always a
debtor nation, that is, permanently owing money to Europe. In the
stress of war Great Britain's exports to the United States, like those
of her Allies, declined and her imports enormously increased. She sold
but little of her products to her American customers and bought
heavily of American foodstuffs, cotton, and munitions. The result was
that Great Britain owed a great deal more to the United States than
the latter owed her. The unparalleled situation enabled the United
States to pay off her old standing indebtedness to Europe and became
a creditor nation. American firms were exporting to the allied powers,
whose almoner Great Britain was, commodities of a value of
$100,000,000 a month in excess of the amount they were buying abroad.
Hence what gold was sent from London, at the rate of $15,000,000 to
$40,000,000 monthly, to pay for these huge purchases was wholly
insufficient to meet the accumulating balance of indebtedness against
England.
Public-domain text, read in full here on John Shaqi.
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