[8] However, his increasing obsession with the idea that the Germans were conspiring to sexually corrupt British civilians led to his being invalided out of the army on grounds of mental instability, diagnosed with "paranoid delusional insanity".
In 1918 he convinced Billing to publish an article which claimed that 47,000 Britons were being blackmailed by Germans to "propagate evils which all decent men thought had perished in Sodom and Lesbia".
A second article, attacking the actress Maud Allan for her alleged association with the conspiracy, led to a sensational libel case, at which Spencer stood as a witness for Billing.
In addition to its attacks on alleged homosexuals, the Imperialist regularly suggested that leading members of the British establishment were Jewish and that "the ruling and representing of Britain has become a close tribal affair".
[13] The book argued that Jewish leaders had coordinated the Russian revolution and other recent events in world history.
[14] The book was published in several editions, later being issued by an organisation called The Britons with the added subtitle "shall the Jew win?".
The 1922 third edition included a preface written by John Henry Clarke, author of England Under the Heel of the Jew.
In 1920 Spencer became closely associated with Lord Alfred Douglas, who was increasingly obsessed by antisemitic conspiracy theories and who had also testified in the Billing trial.
Spencer called him "a foreign Jew" who was "an alien in Common Law and a perpetual enemy of this Christian empire".
[17] Shortly afterwards, Douglas published a pamphlet called The Murder of Lord Kitchener and the Truth about the Battle of Jutland and the Jews, in which he repeated his earlier accusations against Churchill.
[22][23] In 1938 Spencer sold his estate to African American preacher Father Divine to serve as a "heaven" for his followers.