The Birmingham age-herald., 1915-07-11
Everywhere in Official Quarters the Kaiser's Reply Is Regarded as Unsatisfactory
TWO GOVERNMENTS PRACTICALLY HAVE
 REACHED DEADLOCK
President Wilson Asks That Document Be Brought to Summer White House as Soon as It Is Received

Washington, July 1O.-Of- ficial Washington takes a grave view of the situation produced by Germany's re- fusal to meet the demands of the United States growing out of the sinking of the Lusitania with a loss of more than 100 Americans.
 Upon President Wilson rests the burden of deciding the policy which the United States is to follow. Quietly and carefully he Is considering the situation. 1t was vtated al the White House after telephone communications with the President at Cornish, N H., and the country may ex- pect him to act with 'delibera tion as well as firmness'' when he has examined all phases of the problem.
 Secretary Lansing withheld comment As soon as the compete official text of the German reply srives which will be tomorrow, he will begin careful study of 1t and on Monday or Tuehday win go to Cornish for a conference with the President, The President will then returns to lay before the cabinet the course upon which he has determined
 What action the United States will take officials today could not predict with certainty. Some of those who have been familiar with the President s point of view and with the details of the present situation, however, point ed out that there seemed to be but one course open with dignity and hon or to the United States-the continued assertion and exercise of the rights of neutrals on the high seas in accordancel with the established principles of in- ternational law Responsibility for any rupture in friendly relations which might subsequently, ensue between the United States and Germany, it was de. clared, would then fall upon the Ser lin government.
 Reply Unsatisfactory
 There is as vet no definite crystal lization of opinion among officials as to details but the distinct tendency is toward a reiteration not only in n formal note but in actual practice of the principles for which the United States has been contendng. The unan- imous verdict of high officials was that the German reply was thorough : ly unsatisfactory and leaves the sit uation exactly at the point where it was in the days immediately following the sinking of the Lusitana.
 While the continued exercise of American rights in the future Is urged as logical course to be followed, it is recognized also that the United States cannot abandon the demands it has made for the disavowal of intent to drown Americans and the question of reparation.
 Germany's refusal on these points may lead. it is believed, to steps by the United States to show its disap- proval of the last note. Whether Am bassador Gerard might be recalled or q complete severance of diplomatic re- Iations ordered was again discussed in official circles as well as among dip lomatists. In the absence of word from the President no definite indication of what might be done eventually was obtainable.
 Before taking any definite steps. however. officials familiar with dip-'l lomatic precedent and international usage declared that the American gov ernment probably would send a note to Germany formally rejecting the pro- posal to permit the unrestricted use of American passenger ships or four hos tile merchantmen under the American flag provided they carried no muni- tions of war. In the same note formal notification probably would be given to the German government of the in- tention of the United States to con- tinue to exercise its rights with the
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