In the first year of the war the Government of Germany stirred up among its people a feeling of resentment against the United States on account of our insistence upon our right as a neutral nation to trade in munitions with the belligerent powers. Our legal right in the matter was not seriously questioned by Germany. She could not have done so consistently, for as recently as the Balkan wars of 1912 and 1913 both Germany and Austria sold munitions to the belligerents. Their appeals to us in the present war were not to observe international law, but to revise it in their interest. And these appeals they tried to make on moral and humanitarian grounds. But upon "the moral issue" involved, the stand taken by the United States was consistent with its traditional policy and with obvious common sense. For, if, with all other neutrals, we refused to sell munitions to belligerents, we could never in time of a war of our own obtain munitions from neutrals, and the nation which had accumulated the largest reserves of war supplies in time of peace would be assured of victory. The militarist State that invested its money in arsenals would be at a fatal advantage over the free people who invested their wealth in schools. To write into international law that neutrals should not trade in munitions would be to hand over the world to the rule of the nation with the largest armament factories. Such a policy the United States of America could not accept. [Sidenote: Controversy about German submarine war zone.] [Sidenote: The sinking of the _Lusitania_.] But our principal controversy with the German Government, and the one which rendered the situation at once acute, rose out of their announcement of a sea zone where their submarines would operate in violation of all accepted principles of international law. Our indignation at such a threat was soon rendered passionate by the sinking of the _Lusitania_. This attack upon our rights was not only grossly illegal; it defied the fundamental concepts of humanity. [Sidenote: Murder of noncombatants not to be settled by litigation.] Aggravating restraints on our trade were grievances which could be settled by litigation after the war, but the wanton murder of peaceable men and of innocent women and children, citizens of a nation with which Germany was at peace, was a crime against the civilized world which could never be settled in any court. Our Government, however, inspired still by a desire to preserve peace if possible, used every resource of diplomacy to force the German Government to abandon such attacks. This diplomatic correspondence, which has already been published, proves beyond doubt that our Government sought by every honorable means to preserve faith in that mutual sincerity between nations which is the only basis of sound diplomatic interchange. [Sidenote: Bad faith of the Imperial German Government.]