The German Government was in this position: If the Allies accepted Germany's proposal it would enable the Government to unite all factions in Germany by making a peace which would satisfy the political parties as well as the people. If the Allies refused, the German Government calculated that the refusal would be so bitter that it would unite the German people political organisations and enable the Government to continue the war in any way it saw fit.
Nothing which had happened during the year so solidified the German nation as the Allies' replies to Berlin and to President Wilson. It proved to the German people that their Government was waging a defensive war because the Allies demanded annexation, compensation and guarantees, all of which meant a change in the map of Europe from what it was at the beginning of the war. The interests which had been demanding a submarine warfare saw their opportunity had come. They knew that as a result of the Allies' notes the public would sanction an unrestricted sea warfare against the whole world if that was necessary.
From December 12th until after Christmas, discussions of peace filled the German newspapers. By January 1st all possibilities of peace had disappeared. The Government and the public realised that the war would go on and that preparations would have to be made at once for the biggest campaign in the history of the world in 1917.
Throughout the peace discussions one thing was evident to all Americans. Opposition to American intervention in any peace discussion was so great that the United States would not be able to take any leading part without being faced by the animosity of a great section of Germany. When it was stated in the press that Joseph O. Grew, the American Charge d'Affaires, had received the German note and transmitted it to his Government, public indignation was so great that the Government had to inform all of the German newspapers to explain that Germany had not asked the United States to make peace; that Germany had in fact not asked any neutrals to make peace but had only handed these neutrals the German note in order to get it officially before the Allies. At this time the defiant attitude of the whole nation was well expressed in an editorial in the _Morgen Post_ saying: "If Germany's hand is refused her fist will soon be felt with increased force."