Pine Bluff daily graphic., 1915-05-12
GERMANY BACKS DOWN FROM HER
 FIRST POSITION Intimates Attack on Lusi- Sania May Have Been Due
 to Mistake.
ASSURES U. $. HER
 VESSELS ARE SAFE
Believed in Official Circles That POpu- lar Indignation in II. $. Over Sink. ing of Lnsitania ImpelIed Ger
 many's Action.

Washington. May 11.-After the cabinet meeting today. it became manifest that the diplomatic tension between the United States and Ger many, which has been almost at the snapping point, had been relieved.
 Early in the day the state depart ment received from Ambassador Gerard copy of circular issued by the German foreign office in re- gard to mistaken attacks by German submarines on commerce vessels of neutral nations This statement was not made public by the state depart ment until late in the afternoon, but undoubtedly it was the cause of the changed feeling evident at the state department, and at the white house, even before the session of the cabinet It was clear early in the day both at the state department and at the white house that something had oc- cured to relieve the pressure.
 President Wilson at 10 o'clock in the morning had told the newspaper men that his spe.;c ch in Philadelphia last night was in no way to be con- strued as declaration or intimation of the policy of this government in 1 the crisis caused by the sinking of 1 the Lusitania. The gloom which seemed to have enveloped MT. Bryan yesterday had completely disappeared. The reason for the prevailing spirit of optimism was apparent when the German cir cular, transmitted by Ambassador Gerard, was given out. Officials gen. erally regarded the German state- ment as a recession from the position which Germany had taken heretofore with respect to neutral commerce and an assurance that the United States in the future would have no serious cause of complaint because of German treatment of American 'e' Neutral Ships Safe.
 l Germany now says that attacks .. German war vessels on neutral ships of commerce will not be made. and that even when ships have contra band of war on board they will be dealt with by submarines "solely &C., cording to the rules of international law applying to prize warfare" Germany also states unequivocafly in this last circular, that should any neutral ships come to harm through German submarine or air craft on account of an unfortunate mistake, "the German government will unre- servedly recognize it's responsibility therefor"
 These statements of the German circular were taken by state depart ment officials as absolute assurance that no American ships entering the war zone, even if laden with contra band, would be in any danger of being sunk without warning, as was the Lusitania.
 Germany Bends to Popular Opinion. 1t was the general opinion in Wash- ington official circles, that the mods- fled position taken by Germany was due to the interference or popular opinion in the United States. as con veyed to her by German officials in this country.
 1 Ut is not believed the German as. | surances on the subject of neutral shipping have to any extent relieved the president of the obligation to make strong representations with respect to the destruction of Amer- ican lives on the Lusttania, but it is regarded as very much less likely now that what. the. president may have to say about the Lusitania dis aster will lead to any clash with Germany.
 l He probably will express in strong terms the general mitigation felt In the United States over the disregard
 shown by Germany that many Amer Iican lives would of necessity be sac
 rificed through the torpedOing of the IBritish liner, but at the same time he is expected to note with gratifica
 ton that Germany now plans not \
 treat neutral passenger ships will such shocking lack of consideratior for the precious burden they carrys
 Cabinet Divided.
 During the long session of tnt