THE CAMPAIGNS.

Lyttelton Times, Volume CXVII, Issue 17523, 5 July 1917, Page 4

THE CAMPAIGNS.

The war news this morning is chiefly from the Russian front. The new offensive in Galicia continues and the battle front has been extended northwards, the Russians attacking along the fTarnopbl-Krasne railway towards Zloczov. Another thousand prisoners aro claimed and the " booty " includes twenty-one guns, proof that the new advance reached a greater depth than ,was attained in the attack on the Tsenittvka front. The achievements of the Russians are important, of course, hut the offensive is particularly impressive »s evidence of the recovery of the Russian armies from the revolutionary disorganisation. What wo are all anxioua *o know now is the effect of the Russian activity on the disposition of the enemy's forces. It is alleged that Germany cannot sustain losses on two fronts, without drastically shortening her lines, bat so far as the eastern and Bouth-eastern theatres aro concerned the fronts are already the shortest practicable, and a retraction would assist Germany only if she elected to leave the Austrians to defend their own frontiers. Tho whole question is one of man-power, of course, and tho evidence as to the German resources is conflicting. A day or two ago we had the report telegraphed by a correspondent in Holland that the German losses have been, enormously under-estimated 1 by those who count merely the names in the published lists. Mr Hilaire Belloc has always insisted that the Germans do not publish all their losses, and the French intelligence service usod ;to take the same view, but" both British and French General Staffs work on the ascertained facts regarding divisions in the field and reserves in the depots and training camps, and no official or even semi-official calculation of the remaining man-power of Germany bas been published for many months. There are significant indications of the enemy's position, however, such as the recent export of gold to Holland. The) obvious purpose of that shipment was to check the decline of German credit, and the decline of the enemy's credit, as shown in tho mark exchange value, as due, essentially, to the inability of Germany to pay for imports by exports. ' The .collapse of Germany's cx- • port trado Has been rapid. Its cause Ims been tho concentration of industrial Iwp er on war and while the in-

dustrhl demands of tho army have boon increasing there has been also a. very marked decrease in the amount of labour available for non-war industry. Wo may certainly read the export of gold to Holland, therefore, as positive evrlenco of the enemy's declining man-power. Some publicists go so far as to assert that Germany is even now maintaining a gigantic "bluff." Such a theory is untenable, because there is no possible prospect of winning the war by bluffing, and as wo havo said again and again, there is no real indication that Germany is yet near exhaustion. We should look, rather, for indications of weakness in Austria. Thera has been little fresh movement on tho British front. Tho Germans attacked strongly on tho Ailles sector, north of the Aisne, and on Hill 304 and in Avocourt wood, west, of the Mouse, tho fighting ending wholly in favour of the French. In neither battle was tho front affectod very wido and consequently no great importance attaches to tho operations, lut it is eminently satisfactory to know that even in local attacks tho French are' maintaining their positions against enemy concentrations.