The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY. (WEDNESDAY, DECEMBER 2, 1914.) THE WEEK.

Otago Witness, Issue 3168, 2 December 1914, Page 47

The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY. (WEDNESDAY, DECEMBER 2, 1914.) THE WEEK.

" Kacqaiißi alltvi netura, klind saptantia dixit.”— • JgTBSAL. •' «c«d naUir* k»d geed sea** mint avae Pons. The despatches of Field-marshal French are amongst the most illuminating things in connection with the war. All who have closely followed the progress of events will scarcely forget the fighting around Mons from August 18 to ?.6, when a comparatively small British force was called upon to ■ sustain the full strength of the German advance. On what is known as “Black Sunday” (August 23) England was stirred to its very centre by the publication of special war editions announcing the practical annihilation of the Expeditionary Force — intelligence which was so near the truth that it was actually passed for publication by the Press Bureau. How near to annihilation the British, army in the North of Franco actually was, was made evident a few days later in a despatch from Sir John French, which eloquently emphasised the fact that, hud it not been for tho conspicuous gallantry of the British troops, and the skill and bravery of their officers, tho worst fears expressed in the premature publications of “Black Sunday” might have been only too sadly realised. Punctuating the news of the terrible and strenuous fighting which has marked the progress of hostilities during the ensuing three months, tho emphasis has always been the same; outnumbered two or three and four to one, the British troops, even when temporarily dislodged owing to the sheer weight of the German advance, have always made good their resistance, and have always come off conquerors. As it_ was at Mons, so at the battle of the Aisne, and equally so, according to Sir John French’s last despatch, has it been at the battle of Ypres-Armentieres. A sentence or two from this last despatch makes the situation abundantly clear. In the neighbourhood of Ghent and Antwerp the “forces fought with the utmost gallantry without supports.” When tho German turning movement threatened the Channel ports “the British line was successfully resisting the enemy’s desperate attacks with marvellous fighting power and indomitable courage. No more arduous task was ever assigned to British soldiers, and never was the call answered more magnificently.” Again the officers and men are commended for “holding a front of very undue length with invariable success, courage, tenacity, and firmness.” And when the Prussian Guards received the Kaiser’s special command to break through the Allies’ lines at all costs. Sir John French, referring to tha repulse of that attack, says : “Sir Douglas Haig, assisted by divisional and brigade commanders, hold the line with marvellous courage. Words fail to express tha admiration of the incalculable services they rendered.” All this is true to British tradition and valour, and goes to support the prediction which the Governor-general of Australia ventured to make at St. Andrew’s dinner in Brisbane—viz., that Great Britain will ultimately win a complete victory. There is a pregnant paragraph at the close of Sir John French’s despatcji; “We are now possibly at tho last stages of the battle of YpresArmentieres. I regret the heavy casualties, but at least thrice as many of the enemy were placed hors do combat.” Lord Kitchener, too, stresses the fact that, whilst the British losses aro naturally heavy, they are slight when compared with those of the enemy. And the most heartening news is that the troops at the front are being adequately and efficiently reinforced. Lord Kitchener says that in Great Britain 30,000 troops are enrolling weekly, besides regiments which are being formed locallv. At the same time be significantly points out that the time is coming when more recruits will be rermired. Lord Kitchener adds that the British troops at the front ’nave been refitted, and arc in tha best of spirits, and confident of success under their leader. That is to sav. although right from the time when they went to the front, they have been painfully conscious of having to fight against tremendous odds, and to hold positions of great peril and of immense strategic importance in the face of overwhelming German forces, the British troops have never yet sustained defeat, and their continuous and conspicuous success gives them courage and heart to fight on. If, after four months’ fighting, victory all along the line is reported on the Eastern frontier, where the position of the Allies is said to he well-nigh impregnable, the, news from the western frontier is also equally encouraging. The "Russian advance, carried out under tremendous difficulties and ■with, much valour and skill, has endangered so large a section of the German army as to compel a precipitate retreat. Although, the Russian enveloping movement has not been completely successful, in that the < krman army Ins broken through one side of the trap, yet the German loss in men. ammunition, transport, and stores promises to he enormous, .md to render necessary the transfer of German troops from the eastern to the western frontier. The record of the week, however, has not. been alt victory—one or two disconcerting items must he recorded. The presence of German submarines outside Ha-rye resulting in tho sinking of a British merchantman seems to need some explanation, whilst the blowing up of the Bulwark off Sheenies* adds yet another to the.- terrible tragedies of the war. In

B' ilish Gallantry.

T-OSSrs Keli'forrrmcnts.

addition to official reports, the air is full of rumours, such, tor instance, that Austria is anxious for peace, that General Von der Goltz has been appointed com-mander-in-chief of the Sultan s iorces in Turkey, and that the Suez Canal is threatened. On the other hand, the temper of- the Empire as a whole shows sure indication that Britons are ready to lace any emergency. From India, Bom Australia, aye, from New Zealand itseh, there ■will be men and money forthcoming until the end is in sight. That end is not yet, but the ultimate issue is beyond all doubt. The co-operation that exists between Government and Opposition in war time, resolving itseli into the practically leaving in abeyance all party questions and all party controversy, is abundantly manifest m Mr Bonai Laws speech during the debate in the House of SSnons on Mr Lloyd OrorgoUu-ri Statement The Leader of the Sid Tli, while far from being cue or tiro. Chancellor ot the Bioheqners n.o ardent admirers, he preferred a n.an the Treasury with courage even when that courage was combined with M ness, rather than one who was afrai to do anything. Mr Bonar Law aaded that when the war broke out conditions were so abnormal that tney required treatment free of red tape, and he mis have added that the surrounding circumstances favoured the application of dia-txc treatment. During the week preceding the outbreak of the war, the first dawnmgs of the approach of anything unusual came from the Loudon Stock Exchange, where German syndicates had adroitly unloaded several millions’ worth of securities, proved so disconcerting that the committee of the London Stock Excnange took advantage of the approaching banx holiday on the Monday to close their doois on Saturday, August 1, oil the pretext that the holiday exodus, whicn is such a feature of London life at that season of the year, precluded the conduct of business. The war clouds were lowering ail day on Sunday. Monday was a bank ho iday, and this gave the Government time to think of the tremendous issues involved. How tremendous were those issues has been, for the first time, made public by the Chancellor of the Exchequer. ‘ Speaking in the House m Commons, Mr Lloyd George said that at the beginning of the war Great Britain could neither buy nor sell because the system of international exchange had broken down. The whole world owed England money, for Great Britain is i the great creditor nation—-America’s debit, for instance, alone being one tnousand million. Mr Lloyd George stressed the fact that the moratorium had not been enforced to save a few rich people but to safeguard British industry, commerce, labour, and life. With eighteen thousand millions worth of assets, it would have been ciiminal negligence to allow British credit to remain in doubt for twenty-four hours for the sake of £350,000,000, most of which was owing to British people. It was on. the fateful Sunday and Monday that this tremendous question was discussed. _ The Government wisely called in the aid of financial magnates and experts in money matters, for in this crisis party differences were forgotten, and all were for the State. The outcome is now history, the bank holiday was extended for two more days, and the Stock Exchange continued closed. Tha Government issued paper currency to stop the outflow of gold, and, eventually, the moratorium was declared. To quote the (Chancellor’s own words : “We decided that the credit of the State must be maintained at all costs. Thus the unimpeachable character of the_ British bill of exchange has been maintained, and the greatest financial catastrophe the world could ever have foreseen has been averted. The total loss as a result _of these bill transactions is about what it costs us for a single week of the war. Between £70,000,000 and £80,000,000 worth of securities were hypothecated before the outbreak of war, and if the banks had pressed, the bottom would have dropped out of the market.” Thanks to the Chancellor’s prompt action, the machinery of exchange was established, and, despite the war. Great Britain is still supreme in international trade and commerce. But, while according to Mr Lloyd George the praise he deserves in this matter, one small detail should not he lost sight of. Had Austria-Hungary chosen an earlier or later date than July 28 to declare war, and had Germany delayed mobilisation until after the 51st, the British Government would not have had the three days —Saturday, Sunday, and Monday—during which to deliberate, and a financial panic might have set in which no subsequent strong measures could altogether have allayed. This is one of the small causes upon which such mighty issues often depend. Another matter claiming the attention of the Government immediately war was declared was the question of food supplies. Here, again, they were able to demonstrate to the panicstricken populace that there was food enough and to spare on the spot, and that the trade routes were open for the maintenance of supplies. Since those initial measures, however, the problem of trade with netural countries has given grounds for embarrassment and perplexity, both to British traders and to the Government. By the declaration of London, which Great Britain agreed to observe at the beginning of the war, a large free list of raw materials and articles of peaceful commerce, was provided for. As time went on the importance of checking the German supplies of war material shipped to neutral ports, but really designed for Krupps, developed, and all sorts of restrictions and modifications were made, which have caused trouble with Holland and the United States. Copper and a number of other articles have been proclaimed conditional contraband, so that American cargoes to Holland and Scandinavia might be

The War Budget.

jlie Question of t'o (1 Supplies.

stopped. Iron ore also was included, greatly to the discomfiture of Sweden. At the beginning of the war, the export of coal was prohibited, but it was discovered that Germany was actually exporting coal and getting the benefit of the high prices from the neutral countries, so that the embargo was removed. But the most remarkable case was that of sugar. At the beginning of the war srigar rose higher than any other commodity, and great difficulty was caused to a host of British manufacturers who depend on this for their raw material. There was a remarkably fine fruit crop in England, and a good deal of it could not be preserved because of the scarcity of sugar. The bulk of raw sugar supplies come to England from Austria and Germany. The uerman Government was aware of this, and, from the outbreak of the war prohibited its export to neutral countries in order to injure Great Britain. This, however, spelt min to the German beet sugar interests, so the embargo was removed, and German sugar began to flow into Switzerland, Holland, and Scandinavia, thus enabling confectionery and cocoa manufacturers in those countries to cut out the British manufacturers. But the high prices in England eventually attracted German sugar to England. The Government then decided that this was putting money into the pockets of the enemy, and the import of sugar from Holland was prohibited. At the same time able and energetic measures were taken to restore the arrested flow. A Royal Commission was appointed, which, after pledging the great refiners to buy only of itself, cornered the sugar from the world’s available stocks. The result is that the British public are now able to buy sugar in retail quantities at a minimum of 3|d per lb. This war has driven the British Government into a really dashing experiment in State Socialism, and probably other experiments along the same line will be necessary before the war is over. The considerable rise in sugar which has taken place in New Zealand recently is certainly derived from the action of the British Government, and the Food Commission may well give the subject of the present monopoly consideration. A more serious matter, however, is the shortage of wheat and flour, which, however, thanks to the action of the Government, has not resulted in any perceptible appreciation in the price of bread. This shortage seems to be most acute in the south end of the South Island, but the Government importations from Australia and Canada promise to relieve the situation until the next harvest. The question has arisen as to what action the Government shall take in regard to holders of wheat who decline to sell at the price fixed by the Food Commission. And, while all unpatriotic, action on the part of wheat-holders is to be deprecated, yet, at the same time, care must be taken lest the farmer be unjustly dealt with. The New South Wales Government, taking the bull by the horns, has decided to requisition the entire wheat crop of the State with a view to its equitable distribution at a fair price. And it is a moot question whether the New Zealand tiovernment might not do well to'follow this example. Anything is preferable to piecemeal action, even though it involves a Socialistic experiment.

The Wheat Shortage.