A NYT editorial warns, "The German agent pervades the land."

THE RUMOR AS A WEAPON
As the channels of print are rapidly closed to the German Government's propagandists in the United States, they are resorting more and more to the spreading of poison by word of mouth. We are not now speaking of those who do the German Government's work without knowledge, the pacifists and Socialists, but of the actual agents of Wilhelmstrasse; for it is certain that this poison cannot be the product of any others. ...

With German-language papers now under strict censorship/ban by the Post Office, these agents' principle weapon is spreading rumors about sunk transport ships, mutinies, etc.