WHITE RACES ARMING

Sun (Christchurch), Volume I, Issue 150, 31 July 1914, Page 7

WHITE RACES ARMING

THE EUROPEAN WAR CLOUD FIERCE FIGHTING AT BELGRADE EIGHT HUNDRED SERVIANS KILLED AUSTRIANS LOSE HEAVILY BEFORE CAPTURING THE CITY According to a German journal the Servians lost very heavily in the fighting near Belgrade. It is reported that eight hxm A of their men were killed, and that a whole division was captured. The Austrians are said to have lost two hundred men. In view of the unparalleled gravity of the situation, the leading statesmen in Britain have agreed to temporarily sink party differences and present a united front in the interests of peace. Diplomatic feeling in Britain is to the effect that the only hope of a Settlement is in Germany's reply to a proposal made to her to find a diplomatic "way out" acceptable to Austria, and which would be accepted by the Triple Entente. The cables also contain accounts of much enthusiasm in Russia. It is said that the Russian public, apparently assured of Britain's support, are confidently prepared to accept war. The London Stock Exchange is and an important failure is announced. Elaborate protections are being taken in Britain for the protection of magazines and stores. Later messages contain the views of M. Delcasse, the famous French statesman, who holds that the situation is grave, but not desperate. Consols have fallen to £7O, and the world-wide financial depression still prevails. Reservists of the German, Austrian, and Servian Armies, are hastening from abroad to rejoin the colours. The British coastguard and naval signal stations have all been placed on a war footing, and the Admiralty has asked Welsh coal owners to hold their stocks. Germany has asked Russia to explain her mobilisation, and if she is prepared to discontinue it. An artillery duel is in progress twenty i»iles south of Belgrade. It is hinted that in the event of a European war Japan may act as England's ally.

BATTLE OF BELGRADE. EIGHT HUNDRED SERVIANS i, KILLED. . WHOLE DIVISIOI* CAPTURED. AU^i^s, t x^E , 200 MEN; .v t ." • . ■■ V? By CkbU.—Trttt Ali»ci*ti6n. —Copyright. , (Received, 9.25 a.m.) , - BERLIN, July; 30. itspjigk ß /-;fceftuug^' l ■reports that t,wo Servian' Divisions' } ' were defeated and one of thenl was captured. . "Eight trians ~ were . Jailed.'.',", . ... ft .)? an K panic at Strasburg, and peoplcf are> preparing for a eiegar There have beefi auti-war demonstrations in Hamburg, and similar demonstrations in a score Of other cities. LONDON STOCK EXCHANGE. * . AN IMPORTANT FAIILURE. BELGIUM AND HOLLAND NEUTRAL. LONDON, July 30. The bank rate is 4 per cent. The Stock Exchange ie lifeless. There iias been one impoitant failure: ' : Belgium and Holland have declared -their absolute neutrality. RUSSIAN PUBLIC ACCEPT WAR. CONFIDENT OP BRITAIN'S SUPPORT. IMMENSE WAVE OF ENTHUSIASM. - (Received July 30, 8.30 a.m.) ST. PETERSBURG, July 30. " .Reuter states that an immense wave ®f enthusiasm is sweeping over the country. If the Tsar becomes General- ' issimo as proposed, tho Grand Duke Nicholas or General SutthimiinofE would fee second in command. The doubts regarding England 's support have'disappeared, and, confident of ' auch support, the Russian public is prepared to accept war. Popular demonstrations continue in St. Petersburg and Moscow, particularly in farewelling Servian reservists. GERMANY'S OBLIGATIONS. THE TRIPLE ALLIANCE. RUSSIAN MOBILISATION SERIOUS. (Received July 30, 8.30 a.m.) BERLIN, July 30. London telegrams announcing Russia's mobilisation are regarded as in tensely serious. Under the Triple Alliance Germany is bound to come to Austria's help immediately Austria is threatened by Russian mobilisation, While she is fighting a third Power. CALLING UP RESERVES. AUSTRIA'S ANTICIPATION. MONTH OLD PROCLAMATION. JOHANNESBURG, July 30. An Austrian notice, calling up the Jeserves, h<*9 been published. The imprint shows tnat it wasprinted in the State works at Vienna, and therefore must be a month old.

RIOTS IN LOS ANGELES. AUSTRO-SERB CONFLICT. KNIVES AND REVOLVERS. NEW YORK, July 30. Two Austrians were injured in a fight with Servians at Los Angelos, where the people of the warring countries clashed in a riot. One man was sliot in the back and another stabbed in the abdomen. Each is in a precarious condition. UNPARALLELED GRAVITY. , SPEECHES IN THE COMMONS. BRITAIN PRESENTS UNITED FRONT. (Received July 31, 9 a.m.) LONDON, July 30. The House of Commons was packed and feeling was intense when reference was made to the situation. Sir E. Grey regretted that he could not say the situation was less grave. So far there had been no difficulties with the Powers, though joint diplomatic action had not been possible. Mr Asquith said they were met at a time of gravity, which was almost un-' paralleled in anyone's experience. The issues of peace and war were hanging in the balance, with the risk of a catastrophe of which it was impossible t' measure the dimensions. It was of vital importance 'm the interests of the w<iole world that Britain, which had n» i nterests directly at stake, should present a united front, and be able to speak and act with the authority of an undivided nation. He had consulted Mr Bonar Law, who shared liis view, and therefore he proposed to. postpone the second reading of the Amending Bill till Monday, in the hope that the patriotism of all parties would contribute in all it's power, if not to avert, to circumscribe the calamities which were threatening J „'he world. In the meantime the business of Parliament would .be cc.nfhied to non-eon-trov'ersial matters. ' Mr Bonar Law said it was of the utmost importance that it should be! made plain that domestic differences would not prevent Britain from presenting a united front. He spoke with Sir Edward Carson's concurrence. FEVERISH PREPARATIONS. PROTECTING MAGAZINES AND STORES. SOLDIERS PATROL THE DOCKS. One thousand soldiers and 600 police have been drafted to Woolwich to protect the magazines and stores. All leave has been stopped, and there is much activity in the Tilbury a*ea. The Dublin Fusiliers, with machine guns, are patroJling the Essex River wall. Two anti-aircraft guns are guarding the Purflect oil stores, while soldiers are patrolling the Newport and other docks. ALL EYES ON GERMANY. A DIPLOMATIC WAY OUT. . A PESSIMISTIC TONE. Reuter learns that diplomatic circles consider that everything now depends

ou Germany's reply to the proposal that she should suggest a diplomatic way out, which will meet Austria's approval. It is believed that the Triple Entente will agree to any such suggestion. The feeling is rather pessimistic than it was yesterday, owing to the increase of the military party's influence in Germany, and the fear that some of the Powers do not want a settlement to be arrived at. THE FATE OF EUROPE. TREMBLES IN THE BALANCE. LAST HOPES OF PEACE. (Received July 31, S a.m.) LONDON, July 30. War shadows hang over Europe like a pall. Not even during the Napoleonic struggle was the spectacle seen of almost the whole white civilisation of the world arming simultaneously. The fate of Europe is in the balance, and hopes of peace depend on the last efforts of diplomacy in Russia. - f ■ The German cruiser Hertha, which was anchored in the Firth of Forth, suddenly departed at daylight, the night pickets having gathered the crew, who were ashore. "The Times" in a leader on the London markets, says:—"When allowance is made for the conditions, unexampled Within living memory, under which business was conducted last vteek, we have no hesitation in saying that the stock market is; sound and healthy." DEMONSTRATIONS IN AUSTRIA. "COUNTRY WELL PREPARED." MOBILISATION ROBS THE FARMERS. I VIENNA, July 30. I The reservists are noticeable in their | new uniforms during the processions which are being held in the evenings.) j The crowds enthusiastically display portraits of the Emperor, and are continually singing anthems. z | The Press declares that Austria has woll considered, and is adequately prepared for all - possible eventualities. The Austrian mobilisation robs the farmers of 50,000 labourers, and the school children are gathering in the harvest. Bavarian soldiers who have been engaged in harvesting have been (.ailed to the colours. Bohemians in London are petitioning the King to urge Austria not to send the Slavs to fight against their Servian brethren. Retired British officers are offering their services to Servia. WAITING FOR WAR, SYMPTOMS IN GERMANY. APPEAL'TO THE PEOPLE. (Received July 31, 10.5 a.m.) LONDON, July 30. Reuter's Berlin correspondent says jiiat "waiting for war" sums up the condition of things in Germany, where all the symptoms of a coming catastrophe prevail. The Town Council of Strasburg, in a manifesto, appeals to the people to remain calm, and to leave their money in the Savings' Banks. Measures are to be taken to combat the unprecedented rise in the price of provisions. "GRAVE, NOT DESPERATE." M. DELCASSE'S VIEW. GERMANY AND THE NORTH SEA. (Received July 31, 11.15 a.m.) I PARIS, July 30. M. Declasse, on being interviewed, said, the situation was grave, but not desperate. Peace or war depended on Germany. If Germany wants war she will find the North Sea closed by the British licet, and she will be quickly starved. CONFERENCE"BERLIN. MOBILISATION ORDER HOAX. RESERVE OFFICERS CALLED UP. (Received July 31, 11.15 a.m.) BERLIN, July 30. Officers arc returning to the garrisons by all trains. • The conference to-day at the Chancellor's palace included Herr von Bethmann Hollweg, General von Moltke,, Prince Henry, and many notables. The " Lokal Anzeiger" created a sensation by announcing that the Kaiser had signed a mobilisation order, but the edition was immediately suppressed. The proprietors issued a special explaining that they had been the victims of a "Koepeniclc" hoax. The Workmen's Congress at Essen, representing 1,250,000 non-Socialists, issued a manifesto declaring that the great majority of workmen repudiate the anti-war agitation. The reported calling up of reserve officers has created anxiety. CONSOLS AT £7O. DERENBERG COMPANY FAILS. EXCHANGE STILL LIFELESS. (Received. July 31, 11.15 a.m.) LONDON, July 30. The Stock Exchange has been lifeless all day. There was fair business in consols, which closed at £7O. Altogether there have been four failures, the most important being that of the Derenberg Company, which had extensive Continental connections.

RESERVISTS ABROAD. HASTENING TO THE COLOURS. POSITION IN AUSTRALIA. (Received July 3.1, 11.15 a.m.) "LONDON, July 30. There have been enthusiastic scenes at the Austrian Embassy in London, hundreds of reservists arranging to rejoin tlie colours. (Received July 31,, 10.5 a.m.) MELBOURNE, July 31. The Consuls of Austria and Servia have not received the official notification of the declaration of war. The Servian Consul states that there are only about fifty Servians in Australia, and it is riot likely that Servia will require their assistance. PEKING, July 30. German reservists at Tientsin, Shanghai, and elsewhere are preparing to leave. There is great commercial depression. FINANCE IN FRANCE. SETTLEMENTS POSTPONED. AN IMPORTANT CONSULTATION. (Received July 31, 10.5 a.m.) PARIS, July 30. The/bank rate is 4} per cent. The settlement on the Bourse which was due to-morrow has been postponed for a month. ; The Vienna Bourse has closed, and those at Rojjie and Milan have suspended'the time for contracts. . Lord Stamfordham, tlie King's private secretary, with the Russian and German Ambassadors, has visited the Foreign Office. MAN OF THE HOUR. Silt EDWARD GREY. MOST IMPORTANT ON EARTH. (Received July 31, 10.5 *.m). SYDNEY, July 31. The State Governor, Sir v orald Strickland, speaking at the Chamber of Commerce banquet, said that in Sir Edward Grey the Empire was fortunate in having a Foreign Minister whose training and qualification made him the most important man on the face of the earth to-day. OCCUPATION OF BELGRADE. SERVIAN STEAMERS CAPTURED. DETAILS OF THE FIGHTING. VIENNA, July 30. A telegram, yrhich has been delayed in transmission, dated Wednesday, states that after a heavy bombardment, bj' gunbpata on the Danube, Belgrade was occupied.. The Emperor, who is at Ischl, is working from live in the morning until seven in the evening, with only brief pauses for meals. He desires to go to Budapest to be nearer the seat of operations. The Emperor's manifesto has intensified the manifestations of patriotism. Great ovations were accorded troops going to the front. It is announced that all Servians liable to military service will be arrested as prisoners of war. Early on Wednesday morning the Servians blew up a bridge at Semlin. Austrian infantry and artillery in co-operation with three monitors at the confluence of the Save and the Danube, fired on Servian positions, and damaged barracks and other public buildings in Belgrade. The Servians withdrew after a brief engagement. A detachment of Pioneers captured two Servian steamers laden with ammunition and. mines after a sharp encounter with the crew, who were in superior numbers. Shells fell in various quarters of Belgrade, causing great damage. A wellknown banker was wounded. An artillery duel is proceeding Cishnitswi, four miles from Belgrade. The Austrians have another bridge in sections on their shle of the Save, which they can erect in a couple of days. THE BRITISH NAVY. FIRST rT.~F.KT SETS FORTH. DETAILS OF GROWING TENSION. LONDON, July 30. An Admiralty Note circulated throughout the Fleet cautions officers and men against communicating information to newspaper representatives and other unauthorised persons. When the First Fleet left Portland there was an affecting scene on the piers. Thousands of relatives farewelled the bluejackets. Women in evening dress wished their husbands and sweethearts good-bye. As the ships passed out the bands played and the crews cheered. Direct diplomatic intercourse between Austria and Russia was suspended yesterday, indicating growing tension. It is understood Sir Edward Grey is preparing fresh suggestions. He had a lengthy interview with the Austrian Ambassador in the evening. It is understood in diplomatic circles that M. Sazonoff: intimated that though conversations with the Austrian Ambassador to St. Petersburg were resultless, he remains conciliatory to the end, and will welcome steps taken in other -quarters to bring about peace. Amongst many suggestions, one made at Berlin is that Russia might reconsider her action if England made clear

her intention to remaiu neutral. Russian and French public opinion, however, - is convinced that England intends to support the Entente. The Tsar and the Kaiser exchanged telegrams yesterday. MALTA, July ."0. There was incessant military' and naval preparation throughout the night. All leave has been stopped, and all officers have been recalled. RUSSIA HAS NOT SWERVED. THE DEFENCE OF SERVIA. "MIRACLE CAN AVERT WAR," Reuter's St. Petersburg correspondent says Russia has not swerved from her determination to defend Servia. Partial mobilisation has already been ordered, and there is every indication that the whole vast military machinery will soon be in motion. Political parties have sunk differertsces, and the general attitude is one of resolute confidence and readiness for all sacrifices. In Rbssian eyes the die is cast, and only a miracle can avert war. Austria's proposal to discu'as terms when Belgrade is occupied is regarded as inadmissible. SERVIANS CRAWL. RUSSIA HANDSOMELY SNUBBED. ALL EUROPE MAY BE AFLAME. Three Italian warships on the Clyde have been recalled. The military correspondent of "The Times'' says that Russia has done all in her power to avert hostilities, and has been handsomely snubbed for her pains. As a result of M. Sazonoff's pressing advice, Servia positively crawled in humiliation befpre Austria, and subsequently Russia commenced direct communication with Vienna. If war is unpfeventable, Germany is likely to use her whole armed strength. It is a terribly automatic war, and if Russian mobilisation is .announced it a ill l.e a miracle if all Europe is not aflame. Lloyd's are doing a large business in insurance against Britain fighting a Continental Power in three months. The rate is 20 guineas per cent. Flour has risen 2/6 per sack in Liverpool since Friday. If there is a : further increase it is expected tlie price of the quartern loaf will be increased a id. Fears are entertained that Continental countries will place an embargo on the export of wheat A MIDNIGHT CONFERENCE. PREPARATIONS IN GERMANY. SOCIALISTS OPPOSED TO WAR. A midnight conference was attended by the Chancellor, the Minister of Foreign Affairs, and all the high military and naval authorities. The result has not been announced. "lie Crown Prince conferred with the Kaiser for three hours. The . Prussian militSry organ says that the fighting power of Russia has been over-stated. In . recent times she has never, unaided, defeated a firstclass army. Preparations for war are complete in Germany, which can face the advent of grave, events with complete calm, trusting in God and her own right. Fervid patriotic demonstrations continue to be. held, but a strong underchiefly Socialist, opposes war. Many, crowded meetings, of protest have been held in Berlin and elsewhere. It is calculated that the losses on the Bourse since the end of June amount to . a hundred million sterling. The Reichsbank is besieged by persons changing notes for gold, which is prac- ' tically the only means of obtaining gold, ordinary banks paying in notes. COPENHAGEN, July 30. It is reported that 28 German warships passed through the" Great Belt goiii'g southwards, and another large fleet aTyived in the Baltic. THE RUSSIAN ARMY. MOBILISATION PROCEEDS. THIRTEEN CORPS READY. ST. PETERSBURG, July 30. The following army corps have been mobilised: — . The Seventh and Eighth, under General Nikstin. The Fifth, Thirteenth, Seventeenth, Twenty-fifth, and Grenadier Corps, under General Plava. The Ninth, " Tenth, Eleventh, and Twenty-first, under General Ivanoff. r ±he Sixteenth and Twenty-fourth, under General Salza. The incorporation of reserves raises this force ,to a strength of 700,000 men. The Tsar has ordered the temporary suspension of the resolution of the Council of Ministers restricting the service of Jews as directors of companies. QUIETLY MAKING READY. ACTIVITY IN FRANCE. I>o FINANCIAL PANIC. PARIS, July 30. The Government is quietly but rapidly preparing for- eventualities. The Paris reservoirs and, aviation factories are guarded. The manoeuvres have been cancelled. 1 Four Germans employed at the Corbel flour mills have been discharged and ,

repatriated Waggons in Paris liave been requisitioned, and the drivers held at the Government's disposal. The ! city 's stock of Hour is 7000 tons, and is J being rapidly augmented. Workingclass families are stocking provisions. There is no sign of financial panic, but gold is increasingly scarce. The Government has forbidden Socialists to hold anti-war meetings, and Socialist demonstrators, who in normal times are discharged, have been severely dealt with in" Court. Yesterday a group of » well-known aviators, including Garros and Chevillard, petitioned the Premier, offering to form an air squadron. EUROPE'S GOLD. THE ONLY CHANCE Or PEACE. CAN CONFLICT BE LOCALISED! European Governments have been for two years hunting for gold, especially France, Germany, and Bussia. The Triple Entente has in hand £426,000,000 in gold and silver, and the Triple Alliance £211,440,000. Russia has over £180,000,000, and France £182,000,000. The Foreign Office is still pessimistic. The only chance of peace, in its opinion, lies in Germany and Italy inducing Austria to postpone active hostilities and accept Sir Edward Grey's proposals. Diplomatists decline to be reassured by German hopes that the conflict can be localised by the declaration of territorial disinterestedness on Austria's part. Russia cannot tolerate interference with Servia's status as an independent nation. The French view is that Austria; is trying to repeat the coup of 1909. It would be fatal for Russia to allow. herself to be bluffed a second time. M. Viviani has invited M. Belcass6, M. Pichon, and M. Ribot, tvho are not in the Ministry, to give their views on the situation, prior to a Cabinet meeting, at which M. Poincare presides. It is expected that Cabinet will recall the 1910 recruits, who did only two years' service. IN OTHER COUNTRIES. OPINION IN ITALY. AUSTRIA AND TERRITORIAL CONQUEST. i ROME, j|uly 30. The * * Oorriere* Della^Setj^'' a lead-i*-qr journal of Milan, though Vienna denies all .intention of territorial conquest, Austria can better attain her object by reducing Servia to political servitude than by occupying her territory. The siieeess of Austria' will upset the balance of power in tire Triple Alliance to the detriment of Italy.-/ • . ; TURKEY TO BE NEUTRAL. NOTE TO THE CONSTANTINOPLE, July 30. . Turkey has informed the Powers that she is adopting a neutral attitude ftt present. BELGIAN SOCIALISTS ACTIVE. GENERAL STRIKE SUGGESTED. - BRUSSELS, July 30. The International Socialist Bureau, 1 including Mr Keir Hardie, discussed the possibility of common action of the j, proletariat to prevent the extension of ■ the conflict. A general strike and revolutionary action were suggested, ; but a definite decision was postponed. J THE RISKS OF WAR. j SHIPPING RATES INCREASED. < DOUBLE PRICE TO CONTINENT. J SYDNEY, July 30. 5 The Marine Underwriters' Assoeia-; s tion has received a cable message, j' showing that the insurance rates for ] shipping outwards and homewards, via ] Suez, have been. increased, to 1 per { cent, for British-owned vessels, and 2i j per cent, for others; via the Cape, to { and from the United Kingdom, for 1 British-owned vessels the rate is J per cent., and for others 1 per cent. To and from the Continent double rates j are charged. .. BERLIN, July 30. 1 The Hamburg insurance market * quotes 4 per cent, for ships between 3 Australia and Hamburg on condition ! that upon the outbreak of war • ships ] will make for the nearest neutral port, J and remain there. • s < WORLD'S STOCK MARKETS. ! CHICAGO PIT IMPROVED. J SOME EXCITED SESSIONS. * j] NEW YORK, Julv 29. \\ The stock market has greatly im- ! ] proved. Heavy buying has rejdaced - the previous selling. The Chicago wheat market is quiet, prices falling slightly. , The Chicago Wheat Pit was crowded i to-day, and there were excited sessions. 1 Prices suffered a startling fall of four | * cents, then suddenly rebounded three ! j ceuts, and then had another fall. Busf- j t ■ £

3 ness was done in September options at 1 7/45 to and in December at 7/7 J to 7/10 J. s Several firms having important Con- - tinental connections are awaiting remittances from tlieir clients. Tnless such , are received, the position of many firms 3 will be jeopardised. ; FACING THE DRAIN. THE ENGLISH CRISIS. ' LONDON, July 30. . . i The' Stock Exchange crisis is largely r , financial, owing to foreign banks withdrawing funds used on the Stock Ex- i change in order to face the drain at g Home. The withdrawal of loans necessitates re-sales by holders of shares. THE JUTE TRADE. STATE OF STAGNATION. CALCUTTA, July 30. / ; ; The tension in Europe lias caused stagnation in Continental business in - jute. * Sellers refuse to operate, and the banks decline to transact forward, oi exchange business until the situation has been defined. DEPRESSION AT SYDNEY. " . - WHEAT AT STANDSTILL. SYDNEY, July 30. In sympathy with the London . vices, the stock markets were again f depressed to-day, though the rush to sell was less noticeable than, yesterday. Sales made . showed increased weakness, concessions being made on the previous day's prices: in. ijboth . - mining and investment stocks. 1 The . 7wheat market is practically at a stand- o still. Buyers are prepared to give as advance, but sellers are holding out. CROATIANS IN AUCKLAND. AN INDEPENDENCE LEAGUE., FREEDOM OF THE SLAY. / Press Association. • ] • AUCKLAND, July 31. Leading Auckland Croatians and' Dalmatians, at a meeting, resolved to fofeNQi* a Croatian Independence League, and' " to issue letters calling upon all patriotic Slavs,, Dalmatians, and Croatians, to . support the league in its efforts to .secure the independence of the Slavs. . They shall de.Ypte the money. o£" the war relief fund to pay the passages of Slavs unteering for service in Servia.- It is - reported that £250 has been subscribe , • ; - in two days; \ BALANCE IN. THi BALKANS. THE' KING''WHO' MADE iKTMAM^;^'Jg RECORD OF TRANSFORMATION.„ - —— t In less than 50 years Rumania, the State that holds: the balance Of power in the Balkan States,, has been , trans- - formed from a poor, semi-barbaric country under the domination of the* Turks to a prosperous and enlightened State-, and. this has been through the energy and ideals of its sovereign, King Caral. j \ A SHAKY THRONE. '.people,' tired ,p|-"Tark|Bh- spolia.- - tion and the corrupitien of rfcheir oim. officials,, tired of poverty, oppression, i'nd war, decided in one bold stroke tp dethrone their ruler, who wjis vassal tb Turkey, and to choose one whose bipod should be a guarantee of the support of the big Powers. Prince Coniza..was .dethroned, and a. plebiscite was taken to decide who should reign, and practically • the whole of the people voted for Priiic? i Charles Hohenzollern. Russia, Turkey, • 'and Austria opposed hia election, and \ the other great Powers, officially at any rate, though it is known" that Napoleon 111. and Bismarck privately approved. So King Caral began his reign under difficulties... His people expected that immediately on his accession, a. new era would begin, that the bendage of Turkey would be loosed, that foreign capital would pour into the country; but none of these things happened. The king found on his ..accession that the armies of the Turk ready to mareh on Bucharest any day, and that on the first,sign of dis'dfdßr Russia would seize One'of his proviii'ce3 and Austria the other. There was not a penny in the National Excheques,and there was. not one regiment of the. Rumanian forces fit to be put into the field* He found also that the principal nobles of the country were_jsonspiring against him,; and that, because Tor-diplomacy sake he made a submissive visit to th'e Sultan, his people were turning against him. . ' ® . MAKING A NATION. ' i." ; His subjects complain now that Caral is too stern, : lacking humanity' ' 'r but the hard duty hj& set himself to wau effective in reducing the softer side his nature. He fought great difficulties amidst disadvantages, and had no help from his people. In the first six years of his reign his Ministers treated him as a servant, declaring thai if - -he did not do their will he would be It required a patient man with a sense of duty to put up with sueh ditions, but King Caral had jboth - patience and a strong sense and gradually, by years of fighting, Be won "power for himself and~Uis country. He worked night and day, denying himself pleasure, and that alone was suffbcient to make his people feel that he was uncanny. His nobles were against him, foreign agents were seeking /to dethrone him, and one out of every three leaders in his State was encouraging Russia to annex Rumania. But he

I -worked on. that an efficient f ' army was the first thing needful for | Rumania's independence, lie set to work I to reorganise the army on German lines. [ His people objected, so did the French I : Emperor, but he succeeded, though in I, the war' 1870 the people were wild t to join in the war, 011 the side of France !' ■of course. The mob even went so far | as to wreck the buildings of the GerI man Consulate, but this was too-much for the king —he summoned his Ministers and announced his intention of . abdicating. THE REWARD OF SACRIFICE. # ' | At once there was consternation, and strangely enough the move assured him { of the loyal support of his people. They told him that to do this would mean •that the Sultan would march his troops in and take full possession. He yielded, and dissolved Parliament, and at the next elections the loyal vote swamped jU all others. The five years that followed - the Franco-Prussian war were years of peace and prosperity for Rumania. The n ting built schools and railroads. The . people gave everything they could spare , to help him build up his army, and \ when in 1877 Russia declared war against Turkey Rumania was in a position to declare her independence, and did" so, though not without raising the ~ presentment of the great Powers. Ruv Yffania was forced to join in the war, s) and at the end came out financially poorer, for the fruits of her victories! were taken from her by the Russians, but in prestige she was richer, and the J popularity of the king was assured. MODERN CONDITIONS. ~ Once freedom was assured, he threw J himself into the work of providing better conditions for the people and ~ spreading education, and in this he had 5. the; assistance of his queen, Carmen Sylva. The people now worked with S / . him and made rapid progress. The little ■X- \ State now has an army of 300,000 of the finest soldiers in Europe. Fifty years j f ago the country was in the slough of j despond, vassals to the Turks, and j peasants lived in mud huts —there was 1 no education of any sort amongst them. kJ Now the power is taken from the chiefs ; of tillages, and peasants may become magistrates. The country had an orderly Parliamentary Government elected on popular franchise. Although not a wealthy country even now;, Rumania's present revenue amounts to £20,000,000 •where in 1866 it was only £2,000,000. When King Caral came to the throne | there was not a single line of railroad; now there are hundreds of miles of . comfortable lines extending to every part of the country. There were no , • banks, for the farmer, even if he had money, would never have dreamed of putting it into the hands of a State official, but now there are banks of all sorts in all towns and villages, from the great National Bank>to the rural banks the people. In 34 years 5,979,000 acres of land have passed from the grip of the nobles into the possession of ,the peasants, and the agricultural labourers are housed better than most of their class in Europe. THE KEY OF POWER. Rumania now has industries, besides y agriculture, and, most remarkable o£ all, sb.e has schools everywhere, two big high schools that rival the Lveees of Paris, museums, libraries, medical colleges, and institutions of all Yet in 18166 she spent nothing on education,, and to-day she spends £2,000,000 a year. Rumania has altogether changed in less than half a century, and if she is not a first-class' Power she is a ; Power in the Balkans too strong to be trifled with, and all this is due to the patient energy and strong sense/of duty of one man, King Caral, who sacrificed all,his years to achieve this result." It is his reward that he iias created a nation and that he is the king of a country that holds the balance of power in the Balkans. v CONDITIONS IN AUSTRIA. DEFICIENT WHEAT CROP. TRADE WITH SERVIA. : o The depression of the Vienna Bourse, which has,lasted so long, is giving way > to the total inactivity of the summer earlier in the year than usual, because the harvest prospects are very poor indeed. The situation in Hungary seems desperate when one considers that c' there are only three weeks to harvesting time, and the wheat'in tire, most fertile districts is not much over half its usual height and very spare. ' In Budapest corn priees are steadily rising, and will eontinue to do so so long as it is certain corii. duties will not be reduced in the commercial treaties with corn-growing countries about, to be renewed. There ear be no doubt that large quantities "? f . of corn for home consumption will have to be imported this year. Exorbitant Duties. The question is being discussed whether the Government is justified in' maintaining the exorbitant duties, when the entire population suffers so severely from heavy taxation and the high cost of living. The partial proluJbitioai of the import of cattle-a«dr-fhe high duties "very small class of ' . wealthy, individuals, who are growing - and more powerful year by year, in his work on the' nourishment • -of the Hungarian nation, shows that , there are 400,000 families in Hungary who own only one toch (1.6 acre), which is, of course, insufficient for their wants. At the same time there are only 1943 ... - persons iu Hungary whose property ex ceeds 1000 toch. These 1945 people own one-third of all Hungary. They aione profit duties which A of bfcead and meat to which make for parents to bring up their children sufficient food. The Powerful Agrarians. In - Galicia and Bohemia—where 10 per; cent, of all the land is entailed—the state of things is very much the same. Hungary has raised a demand for temporary suspension of the corn duties; ' the Chamber of Commerce in Budapest has dctie so in the most impressive manner. There is, however, very little hope that the Governments will dare to oppose the powerful Agrarians, who protest vehemently against such a measure, even for one year. The duties on cattle and pigs are so high that Servia finds it impossible to export its chief product to her neighbours, and naturally nurses its political grievances against Austria-Hungary all the mOre for this reason. Some hopes of bet,t«r relations are entertained, siuce a short time ago the Emperor granted a pardon to a number of Servians sentenced to long .terms of imprisonment for spying in Bosuia, and King Peter of Servia caused several Austrians and Hungarians accused of spying in Servia to be released. These measures should prove useful from mere than one point of view. Economic and financial hostility between the ne:;tdoor neighbours has proved fatal long enough. The imports from and the exports to Servia from Austria-Hungary before the wars amounted to exactly 48 million dinars way, ar-d gave an impetus to many branches of Austrian industry.

THE RUSSIAN ARMY. VASTLY IMPROVED IN RECENT YEARS. Mr J. Ellis Barker, writing in the "Fortnightlv Review," deals lucidly with the development and progress made by the Russian army, which is now regarded as a menace to Germany. The following is an extract from the article: — The Russian which had been mismanaged during many years, has of late been greatly improved, partly _ because the Japanese defeat has given Russia a rude and wholesome awakening; partly because her great prosperity ' has enabled Russia- to spend enormous sums upon her army and navy. The cost of living has greatly increased the world over, principally in consequence of the great rise in the prices of foodstuffs and of raw materials, and Russia, being chiefly a producer of foodstuffs and raw materials, has been greatly benefited by that rise. That may be seen from the great increase in the value of her foreign trade, and by the notable improvement of the Russian Budget. In 1910 Russia's expenditure on her ! army wks £52,500,000, and on her navy £9,800,000, together £62,300,000; in 1913 the expenditure 011 the army was £62,700,000, and 011 the navy £24,900,000, together equal to £87,600,000, or an increase of £25,300,000 as compared with 1910. The increase is truly startling, but it should henceforth exceed £100,000,000 per year, in view of the enormous increase in the peace .strength of the Russian Army. The Russian officers have worked very hard since the Japanese War. The great progress of the Russian Army is particularly noticeable in the technical services, in which the Russians were hitherto weakest. According to the French authorities, Russia occupies the second rank in I aviation. She intends building 400 ; aeroplanes during the present year. The j effective peace strength of the Russian ! Army is 1,385,000 men, and it is proI po.sed that this enormous number should ! be increased by 450,000 men. | RUSSIA DANGEROUS TO GERMANY. Russia has become more dangerous to Germany than she was in former times, because she has lost her former megalomania, her complacent belief in her invincibility, which caused her to fritter away her strength in Asia and to neglect her Western frontier, where "alone she is vulnerable, to the despair of General Kuropatkin and other leading soldiers. Russia has wisely abandoned the Pacific. She is satisfied to rule the Black Sea, where she is building three Dreadnoughts of 23,000 tons, and she intends concentrating her naval efforts upon the Baltic", where she is completing four Dreadnoughts of 23,000 tons, armed with twelve 12-inch guns, and has laid down four huge battlecruisers of 32,200 tons, armed with nine 14-incli guns. The Russian is supposed to have a very excellent' modern artillery, and it is being supplied with a new rifle since 1913. In 1910 Russia effected a most' important redistribution of , her troops, with a view to*accelerating their mobilisation, increasing their efficiency, ancl protecting herself against a surprise attack. Formerly a large part of her army was concentrated in the frontier fortresses, where the mobilisation was to take place in case of war. However, in view of the fact that distances are great in Russia, and that railways are few and slow, Russia's mobilisation takes much longer than that of Germany. Hence the danger was great that a mobilised German Army might have attacked the Russian Army before it had completed its mobilisation, and that Russia, being attacked unprepared, might be defeated by Germany in the same way in which the French troops were surprised and defeated in 1870 by the Germans, and the Turks by the Bulgarians in the recent war. " In both cases disaster was caused by the fact that an unready army was too slowly mobilised too near the frontier. In view of the possibility of a sudden attack, the Russian line of mobilisation has been drawn so far back from the German frontier that an advancing German Army will lose the advantage of its more rapid mobilisation, for it will find the Russian Army fully mobilised and ready for battle by the time it has covered the distance separating the German frontier from the line marking the points of assembly of the Russian Army. Towards the Frontier. Moreover, Russia is endeavouring to accelerate her mobilisation, and to quicken the transport of her mobilised troops towards the German frontier by improving her railways. If. we- allow forty trains per day on double lines, and twenty trains per day on single ones, and estimating the average speed of trains' at fifteen miles per hour, it appears that an army corps, which can be shipped in 120 trains, requires three days for advancing to the frontier on a double line of railways and six days for advancing to the frontier on "a single line. If we calculate the capacity of the Russian railways 011 this basis, we find that the four army corps concentrated in Vilna, can reach the German frontier in twenty days; that the five armycorps concentrated in Warsaw can reach the German frontier in thirty days, and that the four army corps of the St. Petersburg district can reach tlis German frontier in thirty-four or thirtyfive days. In other words, Russia can attack Germany with thirteen army corps five weeks after the beginning of her mobilisation, and can, at the same time, direct her twelve army corps of the Kieff, Moscow, and Kasau districts towards the frontier of Austria-Hun-gary. During those five weeks much may, of course, have happened between Germany and France. Germany is strengthening very greatly l'.er fortresses 011 the Russian frontier. Apparently it is her plan to act on the defensive in the east, to destroy the armies of France as rapidly as possible, and then to hurl her entire army at Russia. Russia remains a slowly moving colossus until her railway system is greatly improved, and she .intends completing her strategical railways as rapidly ;is possible. THE AUSTRIAN ARMY, A PESSIMISTIC VIEW. When the last mail left Europe the prospect of intervention in Albania was causing some discussion of Austrian and Italian military strength. It was pointed out that Italy has been crippled by the recent campaign ill Tripoli and by disorders at home, so that her army would be scarcely able to take the field in full strength. The condition of the Austrian Army is deplorable if we may believe the "Reichspost" (Vienna), an organ which represents the higher military circles of the country. In this authoritative paper we read: —

'' The Austrian Army has fallen upon evil days. The condition of the infantry iu the Austro-Hungarian forces may be called melancholy. For the past twenty

years tfie personnel of tiie modernised corps in field and heavy artillery, the technical departments, and the handlers of machine guns have been chosen from the infantry. The plight of the army may be guessed' when we learn that no recruits' offer themselves for these new branches of the army. Things have reached such a pitch that the Austrian infantry company has a roll-call of barely 80, in Germany and France the company numbers over' 160, iu Russia over 170, although the frontier troops are, much stronger, company for company. A company of between 70 and 80 men can neither be trained for active warfare nor can the officers learn from handling their command the technical skill necessary for leadership.''