Reports of American diplomats in the Fall of 1916 indicated that the party in Germany which favored unrestricted submarine war without consideration for neutrals was growing in strength. It was opposed by most of the civilian officials of the Government, including the Chancellor, Bethmann Hollweg; Jagow and Zimmermann, the successive Foreign Secretaries, and Bernstorff, the Ambassador in Washington. But the Admirals who supported it were gradually winning over the all-powerful Generals Hindenburg and Ludendorff, and it appeared only a question of time until the promise to America of May, 1916, should be broken. And, as Bernstorff has expressed it, the President realized after the Sussex note there could be no more notes; any future German aggression would have to be met by action or endured with meekness.

In these circumstances the President was driven to seek opportunity for the mediation which he had been ready to offer, if asked, from the very beginning of the war. But to offer mediation, so long as the war was undecided, was a matter of extreme delicacy. The majority of intelligent Americans were strong partisans of the allied cause and firmly believed that that cause was bound to win in the long run. There was a minority which had equal sympathy for Germany and equal confidence in her ultimate success. To offer mediation while the war was still undecided would have been to offend both of these elements, as well as the warring nations themselves, all of which were still confident of victory. Specifically, to offer mediation during the course of the Presidential election would have been to drive over to Hughes all the pro-Ally elements in America, which in the state of mind of 1916 would have seen in such a proposal only a helping hand extended to a Germany whose cause was otherwise hopeless.

Woodrow Wilson's Administration and Achievements — Part 35

So, though during 1916 the President would have welcomed a request for mediation, he did not dare suggest it on his own account. And neither side dared to propose it, for such a request would have been taken as an admission of defeat. Nineteen hundred and sixteen was an indecisive year, but the fortune of war gave now one side and now the other the conviction that a few months more would bring it to complete victory. In such circumstances the losers dared not make a proposal which would hearten their enemies and the victors would not suggest the stopping of the war when they hoped that a few months more would see them in a much more favorable position.

Woodrow Wilson's Administration and Achievements — Part 35