ENEMY'S FLEET POWERLESS

New Zealand Herald, Volume LI, Issue 15687, 14 August 1914, Page 5

ENEMY'S FLEET POWERLESS

* BRITISH NAVY SUPREME CONFIDENCE IN FINANCE. GERMAN FORCE ROUTED. s TWO BELGIAN VICTORIES. A clear and reassuring announcement by the British Admiralty is the feature of to-day's cables. This states that the British and French warships are keeping all the German vessels known to be in the Atlantic so busy that they can do no mischief. The Admiralty advises traders to "confidently and boldly" send their ships to sea. An exception is made of the North Sea, where the Germans have scattered mines indiscriminately.

Two important Belgian successes are recorded in to-day's war cables.

The left wing, of the Belgian Army fought a prolonged engagement with a massed force of German cavalry, infantry, and artillery. The Germans were completely routed. The news of the Belgian victory aroused great enthusiasm among the allied forces.

At Aineffe, near Liege, the Belgians defeated a regiment of German dragoons. The fight lasted three hours; 153 Germans were killed and 102 taken prisoner.

The greatest secrecy is being preserved regarding the position of the allied armies, but references in the cable messages suggest that they are not far from the scene of the German concentration. Scouts have determined the positions of nearly all the enemy's troops, which comprise 26 army i corps, and have reported that the bulk of the German Army is massed along a line of nearly 80 miles between Liege and Luxemburg.

An important arrangement, calculated to relieve the existing stringency of the money market and to revive the

Empire's trade and commerce, has been completed by Mr. Lloyd George with the Bank of England.

Further evidence of an improved financial condition is given by the decision of the Associated Banks of Australasia to resume the financial exchange arrangement between London and Australasia, which have been suspended since the outbreak of the war. •

An announcement that war has broken out between England

and Austria, was made in the House of Representatives by the Prime Minister last evening.

A declaration of war between Austria and Montenegro has also been made. The allied armies of Servia and Montenegro have invaded Bosnia, and penetrated as far as Serajevo, the capital, and the scene o! the assassinations which marked the beginning of the European war. Taking advantage of the disturbed conditions, Montenegro has occupied Scutari, which she resigned very unwillingly when the partition of territories was made after the second Balkan war. Roumanin has affirmed her neutrality, and her indention of upholding the Treaty of Bucharest, but the action' of Montenegro in breaking its provisions may involve Rouraania in the hostilities.