lisher shall sell his paper at retail less than his published prices; no
publisher shall use premium contests or similar means to stimulate
his circulation ; no publisher shall issue holiday, industrial or Sunday
special numbers. These regulations brought about a saving in paper
during Sept. of 10-4% of the average monthly tonnage during the
six months preceding and in Oct. of 5 %. There was produced in
Sept. 1918 104,209 tons and in Oct. 110,498 tons. All regulations
relative to paper were withdrawn on Dec. 15 1918.

The universal response by the people of the United States to
the request that they lend money to the Government to provide
necessary funds for the prosecution of the war was one of the
most significant things of the war period. Millions of people
purchased Liberty Bonds and Victory Notes in various denomi-
nations from $50 to $10,000 (see LIBERTY LOAN PUBLICITY CAM-
PAIGNS), and other millions invested in the smaller War Savings
securities. Early in the war President Wilson made the state-
ment: " I doubt that many good by-products can come out of
a war, but if our people learn from this war to save, then the war
is worth all it has cost us in money and material." This state-
ment, together with the desirability of having the entire nation
participate in financing the war, suggested the underlying pur-
pose behind the war savings movement, which was put into
operation in Dec. 1917. Section 6 of the Second Liberty Bond
Act, approved Sept. 24 1917, authorized the Secretary of the
Treasury " to borrow from time to time on the credit of the
United States for the purpose of this Act and to meet public
expenditures authorized by law, such sums as in his judgment
may be necessary and to issue therefor at such price or prices
and upon such terms and conditions as he may determine War
Savings Certificates of the United States on which interest to
maturity may be discounted in advance at such rate or rates
and computed in such manner as he may prescribe." The Act
further provided that " each War Savings Certificate so issued
shall be payable at such time, not exceeding five years from the
date of its issue, and may be redeemable before maturity, upon
such terms and conditions as the Secretary of the Treasury may
prescribe." A limitation of $2,000,000,000 was placed by the
Act upon the amount of War Savings Certificates which might
be outstanding at any one time; it also provided that no person
should be sold at any one time certificates amounting to more
than $100, and it also placed a $1,000 limitation upon the
amount of certificates which might be held by any one person.
The original Act was amended by the Act approved Sept. 24
1918, which increased the amount of certificates which might
be issued from $2,000,000,000 to $4,000,000,000, removed the
$100 limitation on the amount of certificates which might be
sold to any one person at any one time, and also altered the
previous Act by allowing persons to hold an amount not to
exceed $1,000 worth of any series of certificates.

Pursuant to the authorization contained in the original Act,
the Secretary of the Treasury appointed a committee of five,
with Frank A. Vanderlip as chairman, to confer with him as to
the form of security and the terms on which it should be issued.
Following the recommendation of this committee, the Secretary
of the Treasury offered for sale on Dec. 3 1917 an issue of War
Savings Certificate Stamps, Series of 1918. Each certificate
stamp when affixed to a War Savings Certificate (a folder with
spaces for 20 stamps) would have a fixed maturity value of $5,
with the date of maturity not to exceed five years, the purchase
price to vary one cent each month throughout the year of issue,
beginning in Jan. at $4.12, increasing to $4.23 in December.
The stamps might be redeemed before maturity, their redemp-
tion value increasing one cent each month. There were also pro-
vided 25-cent Thrift Stamps, bearing no interest and not
redeemable for cash, but to be accumulated on a Thrift Card
until there were 16, when they could be exchanged for a War
Savings Certificate Stamp by paying the additional odd cents
necessary to cover the current price of the War Savings Cer-



372



SAXONY



tificate Stamp. Succeeding issues of War Savings Certificate
Stamps were on Jan. i 1919, Jan. i 1920 and Jan. i 1921.

In addition to the original securities there were offered in
July 1919 Treasury Savings Certificates, one of $100 and the
other $1,000 maturity value. Treasury Savings Certificates
were registered at the Treasury Department at the time of pur-
chase and increased in redemption value monthly on the same
interest basis as War Savings Certificate Stamps. In Jan. 1921
there were offered for sale $i non-interest-bearing Treasury
Sayings Stamps and $25 Treasury Savings Certificates, in addi-
tion to the other Treasury Savings Securities.

Following the working out of the types of securities in 1917,
an organization for their sale was effected. In addition to the-
National War Savings Committee, consisting of the chairman
and four members, the Secretary of the Treasury appointed six
Federal directors, each having general supervision over approx-
imately two Federal Reserve Districts; and 52 state directors,
each of whom had complete charge of War Savings activities in
his state or part thereof. The National War Savings Committee
and the six Federal directors functioned at the National War
Savings Committee headquarters in Washington. It was the
duty of this sales organization to obtain cooperation from the
heads of all enterprises operating nationally and then to decen-
tralize the work through the Federal directors to the respective
state directors coming under their jurisdiction, the ultimate
goal being to offer every man, woman and child in the United
States the privilege of aiding the Government by investing in
Government securities, and at the same time to develop habits
of thrift. The War Savings securities were put on sale at every
post-office, at banks and in thousands of voluntary agencies.
House-to-house canvass for their sale was made by postmen,
boy scouts, representatives of insurance companies and mem-
bers of women's organizations. In the autumn of 1918 the
Treasury Department created a Savings Division of the War
Loan Organization, which took over the work previously carried
on by the National War Savings Committee, so that the
people of the country might be taught for their peace-time value
the lessons of thrift and saving learned during the war. The
specific ends sought were: (i) to develop and protect all war
issues of Government securities; (2) to sell Treasury Savings
securities; (3) to make permanent the habits of regular saving
and investment in U.S. Government securities. The Savings
Division was placed in charge of a Director of Savings, with an
organization in Washington, and one in each of the 12 Federal
Reserve Districts.

School Government Savings systems were established. In-
struction in thrift, saving and the principles of sound finance
was introduced in schools throughout the nation. At the annual
convention of the National Education Association in July 1920
a committee of state superintendents was appointed to work out
with the Savings Division the best plans for placing the savings
movement permanently in the American school system. The
American Federation of Labor and various labour bodies
passed resolutions commending the work of the Savings Division
and calling on the Government to make permanent the policy
of issuing small securities. Many local labour organizations
invested their reserve funds in Government securities. In indus-
trial plants throughout the country Government Savings Asso-
ciations were established and the employees put aside small
amounts regularly each week in Government Savings securities.
Women's organizations of the country during the years 1919
and 1920 created the office of thrift chairman in their boards of
officials. They took up the study of finance at club meetings,
promoted the use of the household budget and with the savings
thus effected purchased Government securities.

The total sale of War Savings securities from Dec. 3 1917 to
Jan. i 1921 amounted in round figures to $1,176,111,000. The
total redemption of War Savings securities for the same period
amounted to $41 5,174,000. (W. M. LE.)

SAXONY (see 24.265). The pop. of the Territory and Free
State of Saxony, according to the census of 1919, was 4,663,298;
in 1910 it was 4,806,661.



During the last few years before the World War political life in
the German kingdom of Saxony was dominated by a conflict about
the constitution. The parties of the Left had for years demanded a
reform of the First Chamber, the Upper House, by which the pre-
dominance of the Agrarians in that House should be broken, and
commerce, industry, and handicrafts should obtain greater influence.
In Jan. 1910 the National Liberals, the Liberals (Freisinnige) and
the Social Democrats once more introduced resolutions with this
object in the Second Chamber, the Lower House, but these proposals
met with the keenest opposition from Government, which shared the
opinions of the Right. Notwithstanding the majority in the Lower
House for the Reform, it was defeated by the refusal of the Upper
House to accept it. It was only in Dec. 1917, that the Government
introduced a bill for the reform of the Upper House, which again led
to fierce conflicts between the Right and Left parties in Parliament,
but the advent of the Revolution put an end to these conflicts.
Simultaneously controversy concerning a new Electoral Law for
the Lower House had constantly been going on since 1910. In
Nov. 1911 a Social Democrat was for the first time elected Vice-
President of the Diet. With the outbreak of war these questions fell
into the background. In the educational sphere the reform of
the National Schools System, which was especially advocated by
the teaching profession in Saxony, aroused sharp conflicts of opinion
among almost all classes of the people. The teachers were fighting
for a development of the school system on lines of greater liberty
and particularly desired that religious instruction should be regarded
in a more liberal light. In 1912 the Government introduced a bill,
which did not fully meet the wishes of the school teachers. After
some elaborate debates in the Lower House, which produced great
excitement throughout Saxony, the bill was rejected in Dec. 1912.

On Nov. 30 1910, Dr. von Riiger, who had been Minister of
Finance for many years and at the same time had presided over the
Ministry, retired, his successor as Finance Minister being von Sey-
dewitz, while the minister of Justice, von Otto, took over the presi-
dency of the Ministry and was in turn succeeded by the Minister of
War, Freiherr von Hausen, in Sept. 1912, who on May 21 1914 gave
place to von Carlowitz. The latter resigned his office to Lt.-Gen.
von Wilsdorf on Oct. 27 1915 on taking a command in the field.

The year 1913 saw the opening in June of an airship base at
Leipzig, the largest in Germany at that date.

On Oct. 18 1913 the unveiling of the monument commemorating
the Volkerschlacht (the great victory of the continental Allies over
Napoleon Oct. 16-18 1813) took place in Leipzig, a celebration at
which the Emperor William II. and all the German sovereigns were
present. After the ceremony the foundation stone of the German
Library was laid, an institution which has since been completed
and put in working order. All German publishers have undertaken
to place a free copy of every work published by them at the disposal
of this library, so that it already possesses more than a hundred
thousand volumes. On July 29 1916 the Technical School of Mining
at Freiberg, the oldest institution of its kind in Germany, celebrated
the hundred and fiftieth anniversary of its foundation.

Saxony, which is chiefly an industrial country and cannot
boast of much agriculture, suffered more under war conditions
than most other German states. As a country which had been
hitherto provisioned from outside, it found the problem of sup-
plying food to its population extremely difficult. There was in
many places a real dearth in the most important foodstuffs,
such as corn and potatoes, so that the population was frequently
obliged to have recourse to substitutes (Ersatzmittel).

Shortly before the outbreak of war, during the week July 17-
24 1914, King Friedrich August of Saxony was on a visit to the
Russian court at Petrograd; then on Aug. 2 the King's warlike
appeal to the civilian and military population was published.
At the beginning of the war the Saxon troops suffered heavy
losses during their advance into the north of France. Already
in 1917 the extreme Left in the Saxon Diet had begun an agita-
tion, which never abated, for the early conclusion of peace;
this demand led to violent debates between the Left and the
Government, the latter being supported by the parties of the
Right. On Oct. 26 1918 the Cabinet was forced to resign and to
give place to a new Government of a more Liberal colour under
Dr. Heinze. On Nov. 91918 the revolution broke out, and King
Friedrich August abdicated on Nov. 13. A Cabinet of Com-
missaries of the People ( Volksbeauftragte) was formed and was
entirely composed of members of the extremist section of the
Social Democrats, the Independent Socialists. The revolutionary
conflicts of Jan. 1919, which entailed sanguinary street fighting
in Leipzig, Dresden and other Saxon cities, led to the resigna-
tion of the Cabinet, which was succeeded by a Government of
the right wing of the Social Democratic party. The extreme
Left instituted demonstrations against this Government through-



SAZONOV, S. D.



373



out the country, and there were serious excesses, especially in
Plauen and Leipzig. In April 1919 a Councils (Soviet) Republic
was proclaimed at Leipzig. It was only on May 12 that the,
Reichswehr (the regular army of the Reich) under Gen. Maerker
entered the city and put an end to the Soviet Republic. Serious
disturbances followed in the Vogtland and in Chemnitz in June
and August. On Oct. 2 1919 the (non-Socialist) Democratic
party joined the Ministry, which was now composed of Social
Democrats and Democrats. The Ministry kept in power till
April 25 1920. It was replaced by a Coalition of Social Demo-
crats and Independent Socialists; which, when the Diet reas-
sembled, received a vote of confidence. This Cabinet was
vigorously combated by the non-Socialist parties, all of which
voted against the salaries of ministers in April 1921.

The insurrectionary movement of the spring of 1920 had been
very formidable, especially in W. Saxony. In Leipzig sanguinary
fighting continued for several days, and there were heavy cas-
ualties. In the Vogtland the Communist Holz formed a band
of several hundred men, with which he conducted a reign of
terror in the towns and villages. The Government long hesi-
tated to take action against him; finally, however, Holz's force
was surrounded and dispersed by Reichswehr troops. Holz him-
self fled across the frontier into Czechoslovakia, where he
remained until the Communist rising of March 1921 in central
Germany, when he returned and took command of the insur-
gents. After the collapse of the insurrection he was for a time in
hiding in Berlin, where he was ultimately arrested, and after a
trial which lasted a fortnight was condemned to penal servitude
for life with the loss of civil rights (June 1921).

In July and Aug. 1920 there were widespread food riots in
Saxony, but they did not assume the dimensions of the fighting
in Leipzig and in the Vogtland. In the first half of 1921 there
had been no further disturbances. (C. K.*)

SAZONOV, SERGIUS DMITRIEVICH (1866- ), Russian
statesman, came of a family of great Russian landowners. He
was educated at the Alexandrovsky Lycee. In politics he was
connected with a group which formed the Right Centre in the
Council of the Empire and supported the general policy of Stoly-
pin. Enlightened and convinced of the necessity of reforms, he
remained, however, a staunch supporter of the monarchical and
orthodox tradition of Imperial Russia. He entered the diplo-
matic service, and his first important post was that of Councillor
of Embassy in London, where he assisted Count Benckendorff in
the task of improving the relations between Great Britain and
Russia. He subsequently acquitted himself successfully as Rus-
sian Minister at the Vatican. He was appointed Minister of
Foreign Affairs in St. Petersburg at a critical juncture when Is-
volsky left that office for the Paris Embassy. Russian policy had
just disengaged itself from the coils of the traditional friendship
with Germany, and the Kaiser, though still corresponding with
" Dear Nicky " and keeping a personal representative in attend-
ance on the Tsar, had given up the scheme of cementing an
alliance with Russia against England and forcing France into the
combination. Germany was demonstrating " in shining armour "
by the side of Austria-Hungary, and was drawing Turkey away
from her former protectors, the Western Powers. The idea of the
penetration of the Near East was developing the more effectually
as the scheme of directing Russia towards the Far East had
proved unsuccessful. The backing of Austria and Turkey by
Germany meant necessarily the crushing of the Slavonic Balkan
States and a conflict with Russia. Sazonov was the most
appropriate person to oppose this aggressive tendency with
firmness and dexterity, but without chauvinism. He managed
to strengthen the ties of mutual confidence between Russia and
Great Britain by avoiding all kind of provocation in Central
Asia or in Persia; as to France, the solidity of the alliance was
beyond question. The treatment of the Balkan nationalities was
a much more complicated problem. And when, after the dis-
astrous squabble between the Balkan allies in 1913, the peace
of Bucharest left Bulgaria bleeding, humiliated and weakened,
the result was not only the destruction of the Balkan League,
but a lasting alienation of Bulgaria from Russia and from the



Western Entente. Russian diplomacy did not shine in those
days: ineffectual attempts at arbitration between Serbia and
Bulgaria, ineffectual discontent with the progress of the nego-
tiations at Bucharest, and eventual recognition of defeat in the
end, did not enhance the prestige of Russian foreign policy.

When the great crisis broke out in 1914, after the assassination
of the Archduke Franz Ferdinand, the Tsar and Sazonov found
themselves heavily handicapped by events. Both had tried to
avoid the outbreak of war: but it was impossible for Russia to
look on while Serbia was being delivered to the tender mercies of
an Austrian inquisition, or to allow Germany to mobilize under
the protection of specious formulas without herself taking any
steps as regards the slow mobilization of the Russian army.
Sazonov saw clearly that war had been decided upon in Berlin,
and he helped to make it clear to the Tsar that the German talk
about the ancient tie between the two Empires and the services
rendered to Russia during the Japanese war was mere manoeu-
vring for position. The precise sequence of events is narrated
elsewhere. Suffice it to say that the early course of the war
itself showed how the Balkan situation had been irremediably
jeopardized by preceding diplomatic mistakes and mishaps.
Turkey, Bulgaria and Greece fell away one after the other. Pos-
sibly none of these events could have been averted, but it is
sufficiently clear that neither the Entente Powers nor Russia in
particular were prepared for them, and that they did not take in
time measures which would have made them less injurious: the
Straits could have been forced when the " Goeben " and " Bres-
lau " passed them; Bulgaria might possibly have been won over
by concessions, or attacked with advantage before she was ready
to strike. In any case the actual results were disastrous; they
determined the isolation of Russia at a time when she stood great-
ly in need of technical help from her allies. As an indirect con-
sequence of the Balkan events there was a gradual change in the
Russian demands as regard Constantinople. It is interesting to
compare the reports of two conversations between the Tsar and
the French Ambassador, M. Paleologue. In Nov. 1914, Nicholas
II. restricted his claims to the opening and neutralization of the
Straits, the expulsion of the Turks from Europe and interna-
tional administration for Constantinople. In March 1915 he
declared that the Russian people were more and more intent on
the annexation of Constantinople as the ancient site of orthodox
Christianity. Sazonov succeeded in getting from the Western
Powers a promise to grant these demands in the hour of victory.

It is superfluous to say that Sazonov was staunch in his fidel-
ity to the Entente and in his opposition to the projects for a sep-
arate peace or armistice, which at times cropped up in court circles;
he had however, like all other moderate Liberals, the greatest
difficulty in resisting the discreditable influences which swayed
the Government in its reactionary policy. He opposed as far as
he could the assumption of the Army command by the Tsar, as
this measure could not effect any improvement in military mat-
ters, weakened the home Government and made it more acces-
sible to intrigues. He strongly urged the necessity of winning
over the Poles by a real measure of Home Rule, and he seemed
to have convinced the Tsar of the necessity of such a measure,
but this apparent success was really the occasion of his fall. The
Empress Alexandra brought pressure on the Tsar; the measure
was countermanded, and Sazonov was dismissed.

He was preparing to start for London as ambassador to suc-
ceed Count Benckendorff, when the revolution of March 1917
broke out. He deplored its advent, which brought an end to
Russia's participation in the war and plunged the country into
an abyss of uncertainty and misfortune. He consented, however,
to proceed to London as an envoy of the Provisional Govern-
ment when the fall of Milyukov and the subsequent degradation of
the Government made it necessary for him to step aside. He was
again put in charge of the Ministry of Foreign Affairs by Adml.
Kolchak, and proceeded to London and Paris in the hope of con-
tributing by his personal authority to win a recognition of the
claims of historical Russia from her former allies. Such hopes
proved to be in vain. The Peace Treaty of Versailles made only
general allusions to the possibility of her reappearance in the



374



SCAPA FLOW SCHEIDEMANN



future. Nor was Sazonov the man to curry favour with Esthonia,
Latvia and Georgia, in order to obtain help, at the cost of a renun-
ciation of the imperial interests of his country. (P. Vi.)

SCAPA FLOW, an expanse of sea, in the S. of the Orkneys,
bounded by Pomona on the N., Burray and South Ronaldshay
on the E. and S.E., and Hoy on the W. and S.W. The area
contains seven small islands and is about 15 m. in extreme
length (N. to S.), and about 8 m. in mean breadth. There are
two chief exits one, 7 m. in length and 2 m. in mean breadth,
into the Atlantic Ocean by Hoy Sound, and the other, 3$ m. in
length by 2 m. in mean breadth, into the North Sea by Holm
Sound. Scapa Flow contains several good anchorages, the best
being Longhope in the island of Hoy. When the danger of a war
with Germany came first to be apprehended, it was proposed to
establish the chief British naval base, in the event of war, at
Rosyth in the Firth of Forth, but it was afterwards decided that
a larger base in a natural harbour farther N. would be required,
and in 1912 it was proposed to construct defences both at Cro-
marty and at Scapa Flow. Permanent defences at Scapa were,
however, abandoned in 1913, owing to the developments of sub-
marine warfare, which rendered it very costly to protect the
various entrances. Immediately on the outbreak of war, bat-
teries were erected at Scapa and the Territorial Garrison Artil-
lery of the Orkneys were mobilized to man them. Scapa Flow
was preferred to the Cromarty Firth as his chief naval base by
Admiral Jellicoe, but no preparations had been made and every-
thing had to be improvised, guns being landed from the ships to
strengthen the defences. The absence of preparations came to be
felt more strongly with the rapid growth of the submarine men-
ace, for the depth and number of the entrances made it a seri-
ous problem to establish adequate defences. By the middle of