News was quickly flashed to headquarters at Chicago and about 10 A.M. the white flag was hoisted from the few remaining tall buildings and a large plane was sent out to circle the sky with white flags floating from its wings. As soon as Chicago was surrendered, the enemy planes and land forces were brought up and they closed the gap between Chicago and St. Louis, leaving the Central lines intact and the Western lines holding the Pacific Coast. The New York Stock Exchange closed to prevent complete panic because the people were panic-stricken and selling stocks regardless of price. They soon discovered that the enemy had bases for supplies and ships all up and down the Atlantic and in the Gulf of Mexico. They were in control of the Northern border and in position to attack the Eastern Coast from the North, South, East and West. There was no minimizing the seriousness of the situation. The fall of Chicago had broken the heart of the American people. They were panic-stricken and it looked as tho for the first time in history, Old Glory would trail the dust. There was a great War Council held. To make a plea for peace at this time meant surrender to the enemy and accepting any terms that they might want to dictate. The leaders of the War Council were puzzled. They didn't know what move to make next since they were overwhelmed by great odds. The United States was practically alone in the fight. France and Canada were the only countries which had not joined forces against the United States. When the news of the fall of Chicago reached France, they realized that America was doomed. The United States Government officials knowing the seriousness of the situation made no attempt to conceal it, but decided to play for time. They replied to the note from the enemy and asked for an armistice to last thirty days, in which neither side would make any attack until they discussed plans to see if it were possible to arrive at any acceptable terms. The enemy taking this as an admission of defeat and weakness on the part of the United States granted 15 days' time for a discussion of terms, and sent the following note: The Allied Powers demand the complete surrender of the United States and a division of territory; Japan to have the Western coast, England to have the Eastern coast and Northern territory bordering on Canada; Mexico to have Texas, and Spain to have the territory along the Mississippi and Gulf of Mexico. The United States is to turn over to the Allied Powers its entire gold supply and the people to submit to the various Governments to which the territory is allotted and there is to be no longer any United States of America. If the Government of the United States refuses to accept these terms, we will destroy Boston, New York, Philadelphia and Washington, and take charge of the Eastern coast of the United States. Your answer must be received within the allotted time. CHAPTER XXIX