THE BIG GUNS SPEAK

Sun (Christchurch), Volume I, Issue 149, 30 July 1914, Page 7

THE BIG GUNS SPEAK

AUSTRO-SERVIAN QUARREL BOMBARDMENT OF BELGRADE N A BRIDGE BLOWN UP FURTHER FIGHTING ON THE FRONTIER WIDESPREAD FINANCIAL PANIC: CONSOLS' RECORD FALL. Bussia has definitely announced that she will . take the field the moment Austrian troops cross the Servian frontier. The various Powers likely to be drawn into the conflict are hastening their military preparations, and in many countries the financial panic continues. Mr Asquith announced in the House of Commons that Britain is still endeavouring to circumscribe the area of conflict. There are reports of further fighting near the Drina River. The objective of the Servian troops is announced, and that country's aeroplanes are-said, to be active on the frontier. Considerable unrest prevails in Montenegro, while there has been considerable rioting in Germany. The Kaiser is active, and has had conferences with his Ministers and the Crown {Prince. In France a feeling of hope prevails that a European war may yet be averted. The Belgian Government is taking strict steps to ensure her neutrality and considerable difference of opinion exists in Italy as to her neutrality in the event of a general war. Five failures are reported on the Liverpool Stock Exchange, and two at Glasgow. Consols are down to £69 15/-. The Emperor of Austria has issued a touching manifesto referring to Servia's ingratitude for past support and regretting his inability to devote his declining years to the cause of peace. Later messages announce the bombardment of Belgrade by the Austrians, and that a bridge over the river Save has been blown up. Austria states she will observe Servia's territorial integrity, and it is reported that, owing to a scarcity, prices of food have advanced so much in Vienna as to cause rioting.

THE AREA OF CONFLICT. EFFORTS OF BRITAIN. ACUTE FINANCIAL DEPRESSION. By CaVle. —Press Association. —GojtyrijM. (Received July 30, 8.55 a.m.) . : ■ " LONDON, July 29? j The Manchester Stock Exchange is j at a standstill, . \ Two failures have been reported on the Glasgow Stock Exchange. The Berlin Bourse has closed. The Paris Bourse is at a standstill. -Mr Asquith, speaking in the House of Commons, stated that the situation •was extremely grave, but the Government was doing "everything it could to circumscribe the area of conflict. Mr Lloyd George, in the House of Commons, declared that the Bank of England authorities had informed him that there is nothing in the present financial situation, necessitating a meeting of brokers to deal with it. THE AGED EMPEROR. A TOUCHING MANIFESTO. INGRATITUDE OF SERVIA. . (Received July 30, 10 a.m.) VIENNA, July 29.' Emperor Franz Josef has issued a touching manifesto regretting his \ inability to consecrate his remaining years to peace, and that he is compelled, by a malevolent enemy's . intrigues to grasp the sword and defend the monarchy's honour. He refers bitterly to Servia's ingratitude for Austria's past support, and states that he tried peacefully to persuade her to desist from her criminal propaganda, which resulted in the murderous and well-carried-out conspiracy. He was fully conscious of his responsibility before the Almighty for the step taken. ; DEATH OR GLORY. AN AUSTRIAN ARCHDUKE. SUPPORT FOR THE STATE.. VIENNA, July 29. The Fidelity Pension Association of Hungarian workmen is buying a million kroner worth \.of Hungarian rentes (Government securities) to show its desire to support the State. The Archduke Joseph, speaking from the balcony of the Palace at Budapest, Baid: — Brothers, we will go together, fight together, and will either bring glory home or die together. SERVIAN TROOPS ACTIVE. AEROPLANES ON FRONTIER. UNREST IN MONTENEGRO. It is reported that the Servian troops have as their objective points, A aljevo, and Svilajnac. Strong divisions of volunteers and regulars are reported to be near Laznica. Servian aeroplanes are scouting on the frontier. Montenegrin women are assisting to build earthworks at certain points. Some disorder and disaffection is re-

ported in Montenegro's recently acquired territory, where the populace is opposed to war. The World's Peace Congress has cancelled the meeting at Vienna, which had beeh fixed for September. FRANCE STILL HOPEFUL. Avoiding European war. POWERS EXCHANGING VIEWS. (Received July 30, 9.10 a.m.) PARIS, July 29. M. Bienvenu Martin, Minister of Justice, has received the German Ambassador. The newspapers have not abandoned their hope of the avoidance of a European war. / The Powers are actively exchanging views. RIOTING IN GERMANY. RUSSIA'S PACIFIC NOTE. A HEARTY ECHO. BERLIN, July" 29. The Emperor had an hour's conference with the Crown Prince and other princes at the Nous Palace. A German torpedo boat passed the battleship France, with. President Poincare aboard, and the vessels fired salutes. The Socialists have collided with the police, who drew their sabres. Several arrests were effected. Similar conflicts occurred at Stuttgart, where troops were requisitioned to guard the Legations. A semi-official announcement in the " Norddeutsche Allgemeinc Zeitung" states that the pacific tone of Russia's communique found a hearty echo in German}". It exhorts the nation to support tlie Government by a quiet, moderate attitude. The "Kreuz Zeitung" demands an immediate explanation of the despatch of troops to Wirballen, and declares that it is a mistake to allow Russia to gain ,a considerable start in mobilisation. RUSSIA AND AUSTRIA. EFFECT OF MOBILISATION. DOES IT IMPLY RUPTURE? (Received July 30, 9.10 a.m.) LONDON, July 29. Reuter says that the partial mobilisation in the south and south-west, of Russia does not imply a rupture with Austria. It is confidently hoped that the Powers will succeed in influencing the understanding between Austria and Russia. CONSOLS VERY LOW. GERMAN TRAFFIC PARALYSED. M ON T IvN EG RIN A R TILLER Y MOVING. •(Received July 30, 9.30 a.m.) LONDON, July 29. The Stock Exchange is at a standstill, dealers refusing to make prices. Consols are at £69 15/-. There have been five failures on the Liverpool Stock Exchange.

The Russian and Dutch Bourses have boon closed. Traffic 011 the eastern frontier of Germany is paralysed. All the serviceable horses in Russian Poland have been impounded. " A Montenegrin brigade of mountain artillery has reached Priboj. BELGIUM WATCHFUL. MILITIA CALLED UP. STRICT NEUTRALITY URGED. BRUSSELS, July 29. The Government is taking the most stringent measures to ensure neutrality. The frontier is" to be carefully watched day and night, particularly near Yerviers. A comprehensive system of signalling has been organised. Six classes of militia have been called up immediately, but all the reserves will be called to the colours if France or Germany violate the territory. ITALY'S NEUTRALITY. DISSENSIONS IN CABINET. JFER PROMISE TO AUSTRIA. t ROME, July 29. Dissensions have arisen in the Cabinet, the Premier, Salandra, wishing Italy to preserve strict neutrality in the event of a general war. YIENNA, July 29. ; The Press has completely transformed the. communication from the Italian

Ambassador, which did not contain a promise of Italy's help, if all the nations mobilise. Italy will mobilise in Lorn- | bardy, but will remain neutral. GOLD FROM AMERICA. EXPORT TO EUROPE. PLENTY LEFT IN VAULTS. WASHINGTON, July 29. Secretary McAdoo says that the strong financial position has enabled the United States to export large quantities of gold to Europe without risk. There are ample reserves of coin and bullion stored m the Treasury vaults. SITUATION IN BRITAIN. PARTIES' INSTANT DUTY. AN APPEAL TO HOME RULERS. ; "Times"' and "Sydney Sun" Services. (Received July *3O, 8 a.m.) LONDON, July 29. "The Times," in a leader, urges that the war imposes an instant duty upon the political parties. While the great Powers are furnishing their armour, it is obvious that England cannot turn asicse to engage in an election, and no change of Government is possible at. present. The paper appeals, to the Kome Rulers to agree to the exclusion of Ulster, including Fermanagh, subject t'i the reconsideration of the whole issue in the early future. " STRONG AS IRON." TRIPLE ALLIANCE ARMIES. AGED PRINCES VOLUNTEER. VIENNA, July 29. The Burgomaster, addressing the crowds, said that Central Europe is as strong as iron and would show the enemies of peace that it was the armies of the Triple Alliance which oidained the course of the world's 1-istorv. Two princes, one over sixty years of age, and the other over lifty, voluntarily reported themselves for military service. This symbolises the spirit of Austria. THE KAISER'S PART. HANDLING THE CRISIS. CONEKRRING WITH MINISTERS. "The. Times "s" Berlin correspondent s«';.ys:—"The Kaiser's name is being carefully kept out of public accounts of the crisis, and the public are not aware that he has conferred with the Imperial Chancellor and the Minister of War. The Kaiser is taking a more direct part in the handling of the present crisis than he has since November, 1908." ! < < •

HEAVY FIRING. BELGRADE IN DANGER. BOMBARDMENT ON THE TOWN. A BRIDGE DEMOLISHED. ST. PETERSBURG, July 29. A Belgrade telegram states that tire city is being bombarded. . A bridge over the river Save has bOen blown up. FAMINE THREATENED. FOOD SCARCE AT VIENNA. HIGH PRICES CAUSE RIOTS. VIENNA, July 29. Food prices have advanced 50 and even 100 per cent. There is only ten days' cold storage supply of meat. The authorities will probably admit'meat duty free. The public are clamouring against the rise in prices and assaulted the stallkeepers in the markets. The police dispersed the rioters. CONSOLS' SLIGHT RISE. STOCK EXCHANGE STAGNANT. SEVEN FAILURES REPORTED. (Received July 30, 11.10 a.m.) LONDON, July 29. The Stowk Exchange is still stagnant, members declining to deal "with the Continent, especially Germany. France is throwing large quantities of stock on the London market which till now lias taken everything sent. Consols closed at £7l after a Government broker had bought at £7O 10/-. Seven failures are reported altogether. I The Mediterranean Fleet is to arrive | at Malta to-mororw. The ships will coal and provision immediately. DEMONSTRATION IN PARIS. INTENTIONS OF AUSTRIA. SEBVIA'S TERRITORIAL INTEGRITY. PARIS, July 29. M. Poineare, the President, and M. Viviani, the Prime Minister, have returned to France. They received an ovation unprecedented in living memory. " Lc Temps'' has published a St. Petersburg telegram, announcing that Austria has officially informed Russia that she will respect Servia'B territorial integrity, and is even desirous of not occupying Belgrade. FIGHTING ON THE DRINA. SERVIANS FORCE PASSAGE. CONTACT WITH MONTENEGRINS. BERLIN, July 29. The "Vossiehe Zeitung" reports that fighting has taken place on the Drina. The Servians forced the n passage in many places, but many were killed or wounded. Farther south the Servians pushed pickets to Priboj in Novibazar, where they arc in contact with the Montenegrins. King Nicholas and the Montenegrin Government have gone to Padgoritza. PREPARATIONS IN BRITAIN. STATESMEN STILL HOPEFUL. SENSATIONAL FALLS IN STOCKS. The disposition of destroyers, sub- ' marines, and alrcra-ft is being altered,, 1 and their actual positions kept secret. Arrangements are being made for the protection of magazines, oil reservoirs, J and wireless stations, shipyards, and coal depots. General precautionary measures of wide scope are being taken. Leading British statesmen are still hopeful of localising the war. The flood of Continental sales has continued on the Stock Exchange, which closed before the declaration of war was known. Rio Tintos opened at (51, and closed at 56. Later there were street dealings at 54. Canadian Pacifies closed at 176}. Sensational falls took place after the declaration was announced. Offers at 163 failed to find buyers. Failures are feared. The underwriters- are doing a large business in war risks at 15 to 20 guineas per cent. against Britain, France, Germany, and Russia being involved in war inside six months. WAR WELCOMED. * ENTHUSIASM AT VIENNA. SERVIANS CONCENTRATING. VIENNA, July 29. The uews of the declaration of war seated no surprise, and was generally welcomed. There is a report that the Servians ire concentrating a large force at [STovibazar, with Montenegrin troops in 'lose contact, with the object of threatening Herzegovina and Bosnia, where ;he ground is favourable for guerrilla warfare. Count Berchtold, Austrian Foreign

THE SERVIAN ARMY.

WHERE IS IT?

AUSTRIA'S TWENTY-ONE DIVISIONS.

Mr Donohoe, the u Daily Chronicle's 5 ' correspondent,, reports that the. Servian legislative body sitting at Nisch

has called all able-bodied Servians to the Colours, irrespective of age. All business has been suspended in Belgrade, and the banks, offices, and hotels are closed. Foreign residents have left Belgrade. There is no sign of the Servian army. Search parties have been out, but have failed to locate it. Belgrade is now dominated by Austrian guns, which could put the Servian artillery out of action on the first day.

The military correspondent of "The Times" says Austria, is mobilising twenty-one divisions against Servia, of

Minister, in the official "Gazette," an

l- which the Twelfth Army Corps is il a'signed* as a covering force again: i- j iloumania. The other three armie (1 ; commanded bv Generals Potiorekt, Yc i I' »-I Frank, and Von Auffenberg, will prol (ably attempt an enveloping attack upo 1-jNisch and Kragujevatz, the Landsturi >-j divisions protecting the connnunic; f j ticJns. The right.' army will probabl a advance from Serajevo and Devat eastwards, the central from Semlin t j the south and eastwards, and the lel up the Moravia A r alley. Each arm will be sufficiently strong to offer stov resistance to the bulk of the Servia Army. General Conrad A T on Hoetzei dorf .will probably be in suprem command. PANIC IN BERLIN. ! | GRAVE FINANCIAL CRISIS. r I 11 jshX'RKT movements of troops -1 BIvRLIN, July 2f>. There is a grave possibility of a fiiian cial crisis. Scores of speculators ar unable to maintain.margins, aud ar dumping enormous blocks of stock "Bears" are taking advantage of th situation. Bankers in Berlin accord ingly conferred before the opening, o the Bourse with a view to supportinj standard stocks by means of a join j account, _ all banks -sharing losses an< profits proportionately. The- run on the savings banks con tinues, though these are only paying .150/- monthly, which the Statute re quires. No l>anks are paving more thai ten per cent, of. gold. There is a wholesale withdrawal o: ' Russian funds from German banks which accentuates the crisis. Despite denials, it is. palpable thai far-reaching precautionary disposition! of troops are in- progress. I A military Zeppelin airship has beer j despatched to Posen. « The fleet has . been ordered to return to Kiel. | " LONDON, July 29. j The '' Morning Post's'' St. Peters burg correspondent says that Germany • v.is still regarded as the worst omen ii | the situation. | AMERICA AITECTED. j STOCK EXCHANGE DEMORALISE! NEW YORK, July 29. j As a result of the war news, condi itions approaching a panic prevailed ok I the Stock Exchange. Leading stocks j lost, ten to fifteen points in a few minutes, and foreign exchange rates were demoralised, many brokers declining to deal. The product' ?, m&rttfcts::sfoorppd sharp advances, but cotton futures fell rapidly. • The conditions of the grtfat panic in j 1907 are being reproduced.., The gold ! shipments to Europe for this year are Lover twenty millions sterling, whichc is ; believed to be a record. Tlie possibility I of" gold being seized as contraband has | increased insurance for all vessels excepting American. • BEYOND A CERTAIN POINT. RUSSIA MUST STEP IN. INTENTIONS OF AUSTRIA. It is expectqd that Austria wiM : be ready, for. operations in the field before the end of the week. The reduction !of Servia to political servitude would {be more Advantageous to Austria than the re-occupation of Novibazar, as this would compel Austria, to give Italy territorial compensation. Though she may seize Mount Lovchen, .which commands Cattaro, it is suggested that Austria may content herself with the temporary occupation of Belgrade and then accept intervention such as Sir Edward Grey proposed. If Austria promises not to encroach on Servian territory Russia j might be persuaded not to intervene. [ The "Daily Telegraph's-' Paris cor- [ respondent points out that Russia may |be inclined to forbear, but if Austria {goes beyond a certain point Russia j must invade Galicia, with the Eouman- | ians attacking next door. Germany | will then make a violent attack on France in the hope of profiting by Russia's slow mobilisation. Finally the British Fleet may make a swift dash and annihilate the German navy. " The "Daily Chronicle's" correspondent has estimated that Austria's army against Servia will consist of only 16<J,000 men, as nine Army corps are | tied to the Russian frontier, where they have been on a war footing since the Balkan wars. AUSTRIA INSISTS ON WAR. AN ENVELOPING ATTACK. QUIET CALM IN FRANCE. LONDON, July 29. . The Vienna correspondent of "The Times" states that the entire policy of Austria since the crisis began has been to prevent the prevention of war. The absence of warlike news means that Austria is marching three armies, each 120,000 strong, upon Servia, attempting an enveloping attack. Russia is mobilising thirteen Army corps at various points, and none must suppose that Russia will flinch from armed intervention, now that Slavism is attacked. Germany is not too pleased at being dragged at the heels of the Austrian war chariot. While Austrians are pirouetting amongst the Servian hills in a secondary theatre of war, most of the burden of the decisive theatre falls on Germany's shoulders. The Paris correspondent of "The Times" reports that. France is exceptionally calm, though on the Boulevards there are long white fluttering lines of newspapers with eager readers, lie declares that the declaration does

inounces that Servia has not given a satisfactory reply, and that AustriaHungary finds it necessary to safeguard her rights and interests, and have recourse to force of arms. Austria announces that she will adhere to The Hague Convention of October 18, .1908, and the Declaration of London, of February 2(i, 1900, if Servia does likewise. FEELING IN FRANCE. A LARGE FORCE READY. TRIPLE ENTENTE SOLIDARITY. PARIS, July 29. The news of the declaration was received with calmness. Large commercial houses are taking a census of their staffs to see how their businesse can he carried on if war breaks out. Withdrawals from savings banks do not exceed normal amounts. Encounters with anti war Socialists on the boulevards continue, and many arrests have been made.

The railway rolling stock is ready for I any emergency. The guards in the Eiffel Tower wireless station have been reinforced. Leave in the frontier garrison has been stopped. France is able to put 800,000 men in the field immediately, and if'the field army is utilised the number will be 1,200,000: There already a huge concentration of troops at Verdun, Toul, Epinal, and Belfort. 'lt is generally believed that Sir Edward Grey 's speech implied absolute solidarity in the Triple Entente, and this has given the greatest satisfaction in France. The "Debats'' says that the stake at issue is an enltre change in the map of Europe, analogous to the change in 1864 and 1880: If France, Russia, and England allow Servia to be strangled as they allowed Denmark to be despoiled, they will be committing suicide.

RUSSIA WILL TAKE THE FIELD. WHEN SERVIAN BORDER IS CROSSED. ENGLAND'S SUPPORT EXPECTED. ST. PETERSBURG, July 29. The declaration of war was publicly known late in the evening. Many thousands cheered wildly in the main streets and demonstrated at the British Embassy and elsewhere. A strong opinion prevails that in the event of war England will actively support Russia and France'. Russia has accepted"the principle of Sir Edward Grey's proposal, but at the same time desires to continue a direct exchange of views-with Austria. It is generally believed that orders have been given to mobilise thirteen army corps. • ~ An Odessa telegram states that lights havq been extinguished along the Russian Black Sea, coast except at Sebastopol. where the harbour has been closed I to all except Russian warships. Moscow merchants- have opened a fund to assist Servia and many volunteers are offering for Servian service. , Russia's stock of gold, hoarded by M. Kokovtseff, is unprecedentedly large. It is considered that Russia is better able to stand the strain of war than any other country. - The high commands in the field have I already been decided. J Russian opinion is that the only hope of preventing a conflagration is in the combined efforts of the Powers in checking Austria after the capture of Belgrade. It is positively stated that Russia will take the field the moment Austria crosses the Servian border.

- I - c- j not necessarily involve a general Euro- ; st. pean war. There is reason to believe « s, j that Germany has given more proofs n :of a desire for peace than have yet >- j become known. • 11 i Socialists are holding demonstrations, 11 { demanding that the Government exert i-[pressure on Russia to prevent war. 'z ON THE SYDNEY 'CHANGE. ;t A SEVERE DEPRESSION. [t | SYDNEY, July 29. ' The receipt of the news of -the actual < j declaration of war has severely affected 5 all Stock Exchanges. The metal sec- * : tions are very weak, with heavy selling j at materially reduced prices, especially copper and lead, and Shares investment "% stocks suffered to a lesser degree. '4 The wheat market is strong. Buyers £ freely offered 4/1, but sellers refused to quote or .do business, anticipating '• a further material rise. 2 € LOCAL GRAIN PROSPECTS. | e THE MARKETS NORMAL 4 e, - j The local grain market so far has e not been affected by the movements of 'J values oversea. Some firms have- this' morning withdrawn all quotations - for J * wheat, but any change likely will be I greatly influenced by the contracts t made by New Zealand importers of I flour with the Australian millers. It is usual for importers to make, lengthy. forward contracts with the Australians, - The steadying influence this will have' oS r will be further accentuated by the fact ' that the New Zealand millers hold eonsiderable stacks. In view of the 1 that the Australian merchant*) are hold-';,|| ing for a rise* the consensus of opinion p among the local grain men. is that a. 1 firming up of prices may be expected.- ' It all depends upon the Australian \'Ji trade. Nothing of an exeiting nature 2 Sis anticipated; • - ; ; JS GERMANY AND RUSSIA. "-J • . •- j 1 .. •■■■■.. A , RURAL INDUSTRY MENACED. -J TSAR THREATENS LABOUR I •SUPPLY. J • ■ J At this time, when rumours of wa* ; J , fly thick, a letter from the Berlin cor- " J respondent of an American paper, j written in May last, provides interest- . I ing reading. The correspondent says[Russia is threatening Germany with a legislative stroke which will hopelessly disorganise German agriculture, and .<ij i may even cause widespread ruin. M. ■..* Krivoschein, chief of the St. burg Department, of drafting ;i Bill which will prevent Russian subjects periodically, migrating- to. & 1 Germany as hired men. This Russian u i "hunger manoeuvre,'' as it is has created d minor panic in all Ger- vS many's eastern provinces. The land- < owners declare that if . the migration is stopped their 'fields...will go untilled, and. the urban population will have nothing "1 The whole: mechanism of. German- "J farm ing depends upon the work of near-» \l| ly half a million Russians (mostly Poles .J| •and Lithuanians) who come to Ger- 11 ninny every An three Prussian, provinces three-. .Jl fourths of the field-labour is done by -V I them. German field labour is- non-' existent. Hence most im- J Jportant industry." is entirely at the -* mercy ..of a- ! not very friendly , State* which can withdraw its help any day V; iji time of peace, ami wojifd certainly \ withdraw it, with disastrous 'results, the- .:,) moment wjir ! broke out. -4S Immigrant Workers. i Germany is to-day a greater im- " migration country than * even the United States; with the difference that i "* the immigrknts to Germany come for temporary work, and . always go-home after the efyd of the season, or aftfer the end of'a term of years. The 1910 'v census showed a million and a quarter. *\ -5 of these immigrant, workers; and last ■ " ; i year it is es|im;ite.i there were.a million -j and a half. Against this only 18,000 - i emigrated. 3 The invaders are Russian subject* Ox- -i •differ,e.it races—Austrian's, ; Poles, Hungarians, Slavonians, - Czechs, S' | Rumanians —and there is even a | j sprinkling of Servians. Men come with " their wives* and-sometimes; whole families come. Half a million are esti- ' -1 {mated to be? Austrian and more th,>n 400,000 each sends i from 100,000 to 150,000. Wbole industries depend mainly upon < >1 these foreigners." In some parts theymonopolise the road-making work and 1 i elsewhere the stone-carving work. Farming is -'entirely at their mercy. ;i And as nearly all the 400,000 Russians -4 go in for farm work, the threat of the ■ Russian Government, if carried out, -J; means chaos and ruin in parts,* and j also probably means another jump in ' juices, which have been rising ' ( years. . . - , Take Money Back Home. Even before the Russian threat, the,, -f harm done to Germany by the lack of , native .farm ( labour "caused "alarm.- The *• immigrants are less civilised than Ger- ij mans; they are mostly illiterate, always dirty and" often diseased; they accuinulate large sums, estimated at £ 35,000,000 dollars a year, and tOke them y' away with them.. Against this is the i fact" that they supply the farmer with cheap labour and release the more high- <-Is| ly-developed German for better-paid ' work.. The peril in war is dreaded. If U j great war broke out Russia would ate-*lfflj , once recall even such AS y'|| she did not 'tvia and Italy would Most of the native Germany farm heads would be summoned to the colours; so <• J that the production of food would practically cease, and if Germany's ports were blockaded by England or any | other enemy she must "either starve-or , surrender. Professor Adolf Wagner ad- - -ri. inits that the withdrawal of all foreign labour would disorganise the whole • economic machine. -|9