November 8, 1917 
LAND & WATER 
war presented itself to many Swedes as a preventive-de- 
fensive \rar on the part of Germany. To them, nursed in tlie 
shadow of the Russian menace, the Alliance between 
autocratic and expanding Russia and free, democratic Britain, 
in desperate commercial competition with Germany in the 
world's markets, seemed an unholy one and incompatible 
with professed solicitude for small nations. 
Thdse mentally inclined towards Germany saw in the 
" encircling of the Central Empires " a conclusive proof of 
the truth of the case Germany put forward with regard to the 
real causes of the war. Some of tile most prominent German 
scientists preached their war theses in Sweden, and German 
editors and deputies came there to organise their propaganda. 
One of the most energetic amongst them, the now well-known 
liirzberger, to mention one instance, came and offered exclusive 
personal war cables, and some leading papers printed his 
glowing descriptions of the great victories on the west. New 
German news agencies were created, whicji flooded the 
Scandinavian editorial offices \nth telegraphic matter. 
These details are mentioned in order to explain a widely 
prevailing mood of thought in the first period of the war. 
Those circles here referred to were mainly to be found in the 
surroundings, of the Court, among the higher bureaucracy 
and the military. They believed in a short campaign and a 
crusliing German victory. What could England do ! was 
tlieir refrain. The Queen, strong willed, a born princess of 
Baden and a cousin of the Kaiser, was the rallying point for 
these forces and she did not hide her light under a bushel. 
Tiie Crown Prince and the Crown Princess, born Margaret of 
Connaught, kept a discreet reticence in accordance with their 
position. They have succeeded in keeping out of the political 
controversy," thus not compromising their future. 
Active Neutrality ' 
Difficulties emerging from the war soon appeared. They 
mainly centred round trade questions. A characteristic 
movement greatly disturbed the patriotic harmony. Moved 
by different causes and a false conception of the origin and 
inriermost meaning of thenar, and undoubtedly spurred by 
strong German influences and German victories, a group of the 
" young blood," mostly Con.servatives , began to preacli what 
they so contradictor ify called " active neutrality." Their 
idea was that the time had come to eliminate the Russian 
menace by assisting Germany, liberating Finland and freeing 
the eastern Baltic shores. They advocated openly " courageous 
lining up at the side of (ieiman\'," as the phrase went, 
and acted in close co-operation with the corresponding 
" young blood " of Finland. The German Legation in 
Stockholm was a centre for this co-operation ; a large number 
of Finlanders went to Geimany to be trained as soldiers; 
arrangements for smuggling of arms into Finland were made 
and valuable information from Russia was constantly obtained 
through these channels. 
The " Activists " were never numerically strong and they 
were widely ridiculed. But their connections among the govern- 
ing classes, whicli held the grip on the State machine, the 
silent support from ruling, circles, their underhand methods 
with (ierman intrigues and plans for a rising in Finland, which 
should fire the Swedes, made thtrn at one time dangerous in 
the sense that by a military or other coup the country might 
have been faced with a jail accom/)li, involving it in war 
against the will of the overwhelming majority of the people. 
The highest danger point was reached wlien in August, 1915, 
the German armies penetrated deep into Russia and appeared 
able to get to Petiograd. 
But before that time the Liberals and the Social Democrats, 
particularly the latter under the strong lead of Mr. Branting, 
had conceived the danger of a coup, and had awakened 
public opinion to it. They had challenged the Conservatives 
and the Government in Parliament to denounce the dangerous 
activities and received certain assurances. But although the 
Conservative Party leaders disclaimed connection with the 
" Activists," they could never be prevailed upon to denounce 
them or express any decided disapproval of their propaganda ; 
on the contrary, they publicly expressed their esteem of 
the movement as having ultimately the highest patriotic end 
in view. 
It was laid down as a leading thesis of international law 
that a neutral country's trade with belligerents was only 
limited by the belligerents' ability to stop by force the trade 
in contraband as determined by internatiortal law. The 
belligerents' needs, particularly Germany's, and in a less degree 
Russia's, gave rise to an enormously profitable trade in the 
countries situated between the belligerents. The Scandinavian 
countries were flooded by a swarrn of commercial adventurers 
of a very cosmopolitan character with certain races pre- 
dominating. \ igreat gamble began. Millions were often 
earned in a day m commercial si>eculalions by persons who 
had no knowledge of commercial transactions. It was the 
great time of the " goulyash barons " — a general name given 
to these get-rich-quick-on-the-war people on account of the 
fortunes made by .evading the law in making and sending 
large quantities of " goulyash " to Germany from Denmark. 
The proceedings of the English Prize Court have given many 
interesting details of the methods used by the gamblers to get 
goods into Germany. 
There was of course also a large increase in more legitimate 
business with commensurate profits in certain industrial 
and commercial brandies, such as shipping, which made con- 
siderable fortunes, but those profits generallv speaking never 
penetrated deep into the community. They remained in a com- 
paratively few hands, while the population as a whole very 
early began to feel the depressing influences of the wai" in 
increasing scarcity of foodstuffs and raw materials. 
Plockade Measures 
Only as the effects of the blockade measures, forced by 
Crerman lawlessness at sea, began to be felt more and more 
did the Hammarskjold go\'ernment gradually restrict the free 
reins of commercial enterprise by a series of e-xport prohibi- 
tions and conditional licenses, compen.sation arrangements 
and other measures. But all those steps were characterised 
by \agiieness and hesitation to interfere with the free play 
of economic forces. Thus, for instance, the export of agri- 
cultural produce, which before the war had its principal 
market in England, as a consequence soon went altogether to 
Germany, where the demand was much greater and higher 
prices were paid. The more far-.-,iglited urged the wisdom 
of maintaining as far as possible the pre-war export both to 
lingland and Gerniany, even at a loss, the more so as the coun- 
try had to look to importation from the west of such raw 
materials as oils, fats and fodder- in order to .maintain its 
agricultural production. But it was of no avail. As a result 
the import of those raw materials was finally practically cut 
off bv England for the reason given that she could not as a 
belligerent be .a party to .assisting hei- enemy by supplying 
Sweden with oils and fats, for the manufacture of margarine, 
which released butter for export to Germany. The result was 
that the butter export ceased of itself and a scarcity of 
l)utter and margarine occurred in Sweden. 
Tlie Hammarskjold policy of neutrality became more and 
more suspect to the Entente Powers, who formed the opinion 
that it was conducted by a mentality inclined towards Ger- 
many if not influenced by (Germany for one reason or another. 
Tliey considered that it was subservient to Germany, in- 
dulgently passing over the most brutal manifestation of Ger- 
man warfare, which was Iiitting even neutrals hard, such as 
the destruction of neutral ships without warning and murder- 
ing (if neutral sailors, while it reacted strongly, even by hasty 
actions, against the Entente blockade measures, which, 
however considered, must \x' placed in a very much milder 
category of warfare. That was also the liberal criticism in 
Sweden, which found the Premier blinded by legal formalism. 
By degrees oppjisition against the Hammarskjold policy 
rose iu Sweden as the growing difficulties in getting supplies 
from the west as result of tliat policy caused increased .shortage 
of many necessities. The widening opposition extended 
rapidly to industry and commerce. Great confidence had all 
the time been put in the l-oreign .Minister, Wallenberg, whose 
sympathies and whole character were considered as a safe- 
guard, but events tended to show that lie had finally been 
overruled by a mastering mind. It should be pointed out 
that Hammarskjold, the Prime Minister, ha? not in Sweden 
been seriously accused of any direct " Pio-German " policy 
or of intention to deviate from conscious neuti'ality ; he was 
l^rohably convinced of conducting a purely Swedish and 
strict neutrality. But effects count more than intentions in 
a jiosition of such responsibility in a world's crisis. He was 
gi'adually accused of taking all the powers of fjovernment 
in his own hand and of overriding l^arliament. 
The gathering storm broke out when Parliament met 
last January. The Social Democrats gave the Go\ernment 
notice that the party-truce vvas at an end as a consequence 
of the poiky of the Government. Their attacks were violent ; 
they were sujiported by the Liberals and outside those parties 
public opinion in the country was now strongly aroused on 
account of the .scaicity in foodstuffs, which had necessitated 
lationing. The reckless submarine warfare declared by 
(iermany in hVbruary altered somewhat the real position as 
it made a trade agreement with England — a second attempt 
to make one. for which Swedish delegates had been in London 
some months, had just failed— of less importance on account 
of the transport difficulties, but the feeling in Sweden could 
not be checked. The Hammarskjold Government had to go. 
The King again summoned a Conservative Ministry, with 
a very capable business man and experienced politiciar?, 
Swartz, as Premier, and the cx-Premicr Lindman as Foreign 
