FOOTNOTES: (continued 2)

People of France

For several weeks sanguinary combats have taken place between our heroic troops and the enemy's army. The bravery of our soldiers has gained for them at several points marked success, but to the north the pressure of the German forces has compelled us to retire.

This situation imposes upon the President of the Republic and the Government the painful decision that in order to watch over the national safety the duty of the authorities is to leave Paris. Under the command of an eminent leader a French army full of courage and energy will defend the capital and the patriotic population against the invader, but the war must be continued at the same time on the rest of the territory without peace or truce, without stay or weakness. The sacred struggle for the honour of the nation and reparation for violated right will continue.

None of our armies has been broken. If some have sustained too perceptible losses the gaps will be immediately filled from the depôts, and the call for recruits assures us for the morrow new resources in men and energy to endure and to fight.

That must be the watchword of the Allied British, Russian, Belgian, and French Armies—to endure and to fight, whilst on the sea the British aid us to cut the communications of our enemies with the world, to endure and to fight, whilst the Russians continue to advance to deal a decisive blow at the heart of the German Empire.

To the Government of the Republic belongs the duty of directing this stubborn resistance everywhere for French independence. To give this formidable struggle all its ardour and all its efficacy it is indispensable that the Government should remain free to act on the demand of the military authorities. The Government is removing its residence to a point where it can remain in constant relations with the whole of the country. It requests Members of Parliament not to hold aloof, in order to form before the enemy a united alliance.

The National Government does not leave Paris without having assured the defence of the city and the entrenched camp by all the means in its power. The Government knows there is no need to advise the Parisian population to calmness, resolution and coolness.

Frenchmen, be worthy in these tragic circumstances! We shall obtain a final victory; we shall obtain it by untiring will, by endurance and tenacity.

A nation which does not desire to perish and which, wishing to live, recoils neither before sufferings nor sacrifices is certain to conquer.

Two days afterwards an important declaration, signed by the representatives of England, Russia and France, was issued in London and in the other capitals. By this declaration the Governments concerned agreed not to conclude peace separately during the war. The following is the text of the declaration as issued by the Press Bureau on the afternoon of September 5th:

Declaration

The undersigned, duly authorised thereto by their respective Governments, hereby declare as follows:

The British, French, and Russian Governments mutually engage not to conclude peace separately during the present war. The three Governments agree that when terms of peace come to be discussed no one of the Allies will demand conditions of peace without the previous agreement of each of the other Allies. In faith whereof, the undersigned have signed this Declaration and have affixed thereto their seals.

Done in London in triplicate this 5th day of September, 1914.

(L.S.) E. GREY (His Britannic Majesty's Secretary of State for Foreign Affairs). (L.S.) PAUL CAMBON (Ambassador Extraordinary and Plenipotentiary of the French Republic). (L.S.) BENCKENDORFF (Ambassador Extraordinary and Plenipotentiary of His Majesty the Emperor of Russia). Paris, September 4th.

The adherence of Japan to this declaration was subsequently notified. Belgium could not participate in it for technical reasons, her neutrality being "guaranteed."

On the same day the French Minister for Foreign Affairs addressed a strongly-worded communication to the Powers with reference to the German atrocities in Belgium and France. This communication was as follows:

The numerous violations of international law by the Germans have led the Government of the Republic to address to the representatives of the Powers in Paris memoranda which are intended to set forth indisputable facts. These are selected merely as examples, and we could not bring to the notice of the Powers every act contrary to the laws of war of which we receive accounts day by day. This first series of memoranda will suffice to establish the two following classes of facts:

First, the armies and Government of Germany profess the deepest scorn for international law and for treaties solemnly recognised by Germany.

Secondly, the devastations of the invaded countries (incendiarism, murder, pillage, and atrocities) appear to be systematically pursued by order of the leaders, and are not due to acts of indiscipline.

It is necessary to emphasise this two-fold characteristic of the German proceedings. They constitute a negation of every human and international law, and bring back modern warfare, after centuries of civilisation, to the methods of barbarian invasions. We are confident that such facts will arouse the indignation of neutral States, and will help to make clear the meaning of the struggle which we are carrying on for the respect of law and the independence of nations.

To the communiqué were attached ten separate memoranda, setting forth various specific charges against the Germans.

The first memorandum dealt with the dispatch of wounded prisoners and similar atrocities.

A report from the Commander-in-Chief of the eastern armies, dated August 10th, stated that a considerable number of wounded had been finished off by shots fired point-blank into their faces, while others had been deliberately stamped and tramped upon. The Bavarian infantry systematically burned villages through which they had passed, although there had been no artillery fire which could provoke such measures.

The second memorandum detailed the circumstances of the bombardment of Pont-à-Mousson, an unfortified place, in violation of The Hague Convention, and the use of dum-dum bullets by the Germans was dealt with in the third memorandum. On August 10th, after an engagement, a French surgeon found a clip containing five cartridges with cylindro-conical bullets, the noses of which had been filed. Similar bullets were found in the bodies of French soldiers, and were forwarded to the Ministry of War.

In the fifth memorandum the German allegation that the civilian population had taken part in the war was strongly denied, and was declared to be nothing but a pretext put forward to justify the atrocities committed by the German troops and give them the appearance of reprisals. From the beginning of the war the Germans had made a practice of burning undefended villages and of assassinating the inhabitants, and evidence of this was to be found in letters and notebooks taken from Germans, dead or prisoners.

A notebook found on a corpse of a German lieutenant contained the following remark: "We have fired the church of Villerupt and shot the inhabitants. We pretended that scouts had taken refuge in the tower of the church and had fired on us from there. The fact was, it was not the inhabitants of Villerupt, but Customs officers and forest guards who fired on us."

The sixth memorandum gave detailed evidence in support of the charge that a systematic devastation of the country had been ordered by the German leaders. Letters found on German soldiers made it clear that the burning of villages and the shooting of the inhabitants were general measures, and that the orders were given by superior officers.

Attention was called to this violation of The Hague Convention, and it was pointed out that it was on the proposal of the German delegates at the second Hague Conference that an article was inserted declaring that the belligerent guilty of such violation should be liable to pay an indemnity.

In the remaining memoranda information was given as to the destruction of villages in the region of Paris, the murder of Red Cross nurses, and the burning of Affleville, under circumstances of particular brutality.

The statement concluded: "The Government of the Republic, respecting international conventions which it has ratified, protests against those violations of international law, and holds up to reprobation before the opinion of the world the behaviour of an enemy who respects no rule and goes back on his signature affixed to international agreements."

It was observed with immense satisfaction, not merely throughout the British Empire, but by our allies in the field, that Britain in her oversea possessions was quick to come forward with offers of help as soon as the situation on the Continent became known. In Canada, for example, the Government voted large supplies of wheat, cheese and so forth for the troops, and also undertook to raise two contingents, each 20,000 strong, to take part in the campaign. Patriotic funds were started in all the large towns throughout the Dominion, and the women of Canada raised funds for a supplementary naval hospital.

Similar measures were taken by the Australian Government, and both Ministers and ex-Ministers declared that Australia would offer "the vigour of her manhood, the bounty of her soil resources, her economic organisation, all she possesses to the last ear of corn and the last drop of blood." This quotation is taken from a speech by Mr. Millen, the Commonwealth Minister of Defence, speaking at Melbourne on August 23rd. Similar utterances were delivered by his colleagues and by the Parliamentary Opposition. An appeal to Australians to form an Imperial Expeditionary Force resulted in an almost immediate reply from 20,000 volunteers.

Offers of help on a proportionate scale came from New Zealand and South Africa; and the South African Government took steps both to guard the Union from German raids and to co-operate with the Imperial troops in any movement that might be made against the adjacent German colonies. A later and momentous step by the South African Union, taken at the request of the Imperial Government, was notified in the subjoined communications from Reuter's Agency:

Cape Town, Sept. 9th, 1914.

A special session of Parliament, necessitated by the situation arising from the war, and the mobilisation of the Defence forces, was opened to-day by Lord Buxton.

The Governor-General's first act was to read a personal message from the King, acknowledging the many proofs of loyalty displayed by South Africa in common with the rest of the Empire, and of its determination to play a part in the great conflict forced upon Great Britain. His Majesty relies with confidence upon the people of South Africa to maintain and to add fresh lustre to the splendid traditions of courage, determination, and endurance which they have inherited.

At the evening session of the House of Assembly General Botha moved the following resolution:

This House, fully recognising the obligations of the Union as a portion of the British Empire, respectfully requests the Governor-General to convey a humble address to his Majesty, assuring him of its loyal support in bringing to a successful issue the momentous conflict which has been forced upon him in defence of the principles of liberty and international honour, and of its whole-hearted determination to take all measures necessary for defending the interests of the Union and co-operating with His Majesty's Imperial Government to maintain the security and integrity of the Empire, and further humbly requesting His Majesty to convey to His Majesty the King of the Belgians its admiration for and its sincere sympathy with the Belgian people in their heroic stand for the protection of their country against the unprincipled invasion of its rights.

General Botha, who spoke with deep feeling, was followed with the most earnest attention by a thronged House. The Premier said that never had the Parliament of South Africa assembled at a more critical time. He emphasised that the Imperial Government had informed the Government that certain war operations in German South-West Africa were considered to be of strategic importance. The Imperial Government added that if the Union Government could undertake these operations they would be regarded as of great service to the Empire. The Empire to which South Africa belonged was involved in one of the greatest and cruellest wars which had ever befallen humanity.

General Botha continued: "The Government, after careful consideration, decided to comply with the request in the interests of South Africa as well as of the Empire. There could only be one reply to the Imperial Government's request.

"To forget their loyalty to the Empire in this hour of trial would be scandalous and shameful, and would blacken South Africa in the eyes of the whole world. Of this South Africans were incapable. They had endured some of the greatest sacrifices that could be demanded of a people, but they had always kept before them ideals, founded on Christianity, and never in their darkest days had they sought to gain their ends by treasonable means. The path of treason was an unknown path to Dutch and English alike.

"Their duty and their conscience alike bade them be faithful and true to the Imperial Government in all respects in this hour of darkness and trouble. That was the attitude of the Union Government; that was the attitude of the people of South Africa. The Government had cabled to the Imperial Government at the outbreak of war, offering to undertake the defence of South Africa, thereby releasing the Imperial troops for service elsewhere. This was accepted, and the Union Defence Force was mobilised."

With regard to the operations in South-West Africa, General Botha declared that there could be only one response to the Imperial Government's wishes, unless they wished to contemplate a situation much more serious than that which now confronted them.

He wished them to understand the seriousness of the position, and to accept the responsibility which they would be called upon to accept. He placed himself with confidence in the hands of the House. General Botha detailed the German entry into Union territory at Nakob (Nauby). This force was entrenched in kopjes in Union territory at the present time. He also described an affair at Scuitdrift in August. In addition to this, armed German forces were on the Union frontier in large numbers before there was any question of Union mobilisation.

The Premier said he quoted the foregoing to show the hostile attitude adopted by Germans in the neighbouring territory. He next referred to the White Paper on the diplomatic proceedings on the eve of war. These documents, he declared, showed that if ever Great Britain entered upon a war with clean hands it was this war.

Great confidence had been reposed in the people of South Africa. They had received a Constitution under which they could create a great nationality. Great Britain had given them this Constitution, and ever since had regarded them as a free people and as a sister State. As an example of how the Imperial Government treated them, General Botha said that last July the Union Government wanted to raise a loan of £4,000,000. They had raised only £2,000,000. As things were, it would be fatal to go into the money market just now, so the Imperial Government had now come to the assistance of the Union Government, and had lent the Union £7,000,000. That was the spirit of co-operation and brotherhood which invariably animated the Imperial towards the Union Government.

In his judgment it was the duty of the House to see that every effort was put forth to bring the country successfully and honourably out of this war, and that South Africa issued from it, not as a divided, but as a united, people.

Sir Thomas Smartt, leader of the Opposition, heartily congratulated General Botha on his speech, and assured the Government of the most cordial support of the Opposition.

London, Sept. 9th.

Reuter's Agency learns from an authoritative source that the line to be followed by the Union Government of South Africa, as outlined in General Botha's speech, has been well known in official circles for some time. From the outset there has been the closest touch between the Imperial and the Union Governments, both as regards the general attitude of the latter and the military requirements in view of the war with Germany. On the outbreak of war a brief but significant telegram was received from General Botha, containing merely the words, "We will do our duty."

What this implies as regards the neighbouring German colony cannot, for obvious reasons, be stated in detail at this stage. It may be declared, however, that the news of the crossing of the Orange River by two German forces spread like wildfire through South Africa and caused a feeling of the greatest indignation, and, without any suggestion from the Imperial Government, steps were at once taken—and have since been completed—for effectually dealing with German South-West Africa.

It was on the initiative of General Botha's Government that, on the outbreak of war with Germany, the Union Government telegraphed to London suggesting that the garrison of Imperial troops should be withdrawn, and offering the whole military resources of South Africa for the defence of the Union, including the native territories.

It had by this time become apparent that this meant not only defence, but also offensive operations against the adjoining German colony of 326,000 square miles in extent, with its garrison and fortifications. What this involved was perfectly well known to the authorities, who were aware of the large quantities of cannon, arms, and ammunition that had been poured into the country in the vain hope that the Boers would join the Germans when trouble arose.

The South African Government does not expect a "walk-over," but it is prepared for all eventualities. It has been a matter of the greatest gratification to the Union Government that, at this juncture, the Imperial Government offered to give South Africa all the financial assistance needed. In this connection it should be explained that all defence measures and warlike operations are being undertaken at the expense of the Union Government. The offer of the Imperial Government, which is of great value in view of the moratorium, is to lend what money may be necessary for the time being for war purposes.

At home, too, by way of showing how united the nation was at this critical time, it should be mentioned that after a two days' conference, the Parliamentary Committee of the Trades Union Congress, issued, on September 3rd, an important manifesto to trade unionists of the country on the war. It stated that the committee was especially gratified at the manner in which the Labour party in the House of Commons had responded to the appeal made to all political parties to give their co-operation in securing the enlistment of men to defend the interests of their country, and heartily endorsed the appointment upon the Parliamentary Recruiting Committee of four members of the party, and the placing of the services of the national agent at the disposal of that committee to assist in carrying through its secretarial work.

The manifesto proceeded:

The Parliamentary Committee are convinced that one important factor in the present European struggle has to be borne in mind, so far as our own country is concerned, namely, that in the event of the voluntary system of military service failing, the country in this its time of need, the demand for a national system of compulsory military service will not only be made with redoubled vigour, but may prove to be so persistent and strong as to become irresistible.

The prospect of having to face conscription, with its permanent and heavy burden upon the financial resources of the country, and its equally burdensome effect upon nearly the whole of its industries, should in itself stimulate the manhood of the nation to come forward in its defence, and thereby demonstrate to the world that a free people can rise to the supreme heights of a great sacrifice without the whip of conscription.

Another factor to be remembered in this crisis of our nation's history, and most important of all so far as trade unionists and Labour in general are concerned, is the fact that upon the result of the struggle in which this country is now engaged rests the preservation and maintenance of free and unfettered democratic government which in its international relationship has in the past been recognised, and must unquestionably in the future prove to be the best guarantee for the preservation of the peace of the world.

The mere contemplation of the overbearing and brutal methods to which people have to submit under a Government controlled by a military autocracy—living, as it were, continuously under the threat and shadow of war—should be sufficient to arouse the enthusiasm of the nation in resisting any attempt to impose similar conditions upon countries at present free from military despotism.

But if men have a duty to perform in the common interest of the State, equally the State owes a duty to those of its citizens who are prepared—and readily prepared—to make sacrifices in its defence and for the maintenance of honour. Citizens called upon voluntarily to leave their employment and their homes for the purpose of undertaking military duties have a right to receive at the hands of the State a reasonable and assured recompense, not so much for themselves as for those who are dependent upon them, and no single member of the community would do otherwise than uphold a Government which in such an important and vital matter took a liberal, and even generous, view of its responsibilities towards those citizens who come forward to assist in the defence of their country.

We respectfully commend this suggestion to the favourable consideration of the Government of the day.

Long life to the free institutions of all democratically-governed countries.

J.A. Seddon, Chairman W. Mosses

W.J. Davis, Vice-Chairman J.W. Ogden

A. Evans A. Smith

H. Gosling H. Smith

J. Hill J.B. Williams

J. Jenkins J.H. Williams

W. Matkin J. Sexton

C.W. Bowerman, Secretary.

A manifesto on the same lines was issued by Mr. Ben Tillett, on behalf of the Dockers' Union. Mr. Ben Tillett was usually regarded as being the leader of one of the extreme sections of the Labour movement; but his manifesto, which reads as follows, lacked nothing in patriotism:

Every resource at our command must be utilised for the purpose of preserving our country and nation. Every able-bodied man must either fight, or be ready to defend his country. Every family of those men who go to the front must be guaranteed a competence and food.

We first of all propose that all able-bodied men should shoulder the responsibilities this war imposes; that local units of men having worked and lived together constitute units of a thousand each, for the better purpose of training and preparation. That these units of our members or of trades unionists from a given area be registered.

Kaiserism and militarism should receive its death blow in this Armageddon. Our traditions at least stand for the best, our limitations and inequalities are largely of our own making; and will be so long as the workers are contented slaves, under a vicious wage system.

I want to see our own men drilled daily, even if the War Office cannot help us. There are plenty of open spaces, many of our men are ex-soldiers, they could help in the drilling. Municipal authorities and employers could help. Employed and unemployed could help; the War Office should help those who can enlist, subject to guarantees from the Government, giving protection to the families left behind.

It subsequently appeared that the preliminary steps taken by the South African Government were timely enough. The Daily Telegraph's Johannesburg correspondent, telegraphing on September 1st, said that the authorities had been perturbed by a number of serious reports to the effect that Germans were interfering with the natives, and inciting them to seditious gatherings. This action assumed such a character as to demand instant action. Alleged German missionaries were even sowing the seeds of discontent in the natives' minds against British rule, magnifying the temporary German success in Europe. It was suggested that the Government might turn the searchlight on all German mission stations in British South Africa. Intelligent natives had been informed that the Germans were "coming soon," when the natives would be given big pay, plenty of drink, and no passes would be necessary. They were also advised to go home, the evident purpose being to paralyse the mining industry.

On August 31st the English newspapers contained an important interview given by Mr. Winston Churchill to Mr. Willian G. Shepherd, the representative of the United Press Associations of America. The text of the interview, in Mr. Shepherd's own words, is as follows:

On my asking Mr. Churchill about the cause of the war, he handed me the celebrated White Paper of Sir Edward Grey's negotiations, saying: "There is our case, and all we ask of the American people is that they should study it with severe and impartial attention."

I then asked what was the underlying cause apart from the actual steps which had led to the rupture. He replied in effect that the war was started and was being maintained by the Prussian military aristocracy, which set no limits to its ambition of world-wide predominance. In a word, it is the old struggle of 100 years ago against Napoleon. The grouping of forces is different; the circumstances are different; the occasion is different; the man, above all, is different—happily. But the issue is the same. We are at grips with Prussian militarism. England stands right in the path of this evergrowing power. Our military force is perhaps small, but it is good and it will grow; our naval and financial resources are considerable; and with these we stand between this mighty army and a dominion which would certainly not be content with European limits.

I asked whether the end of the war would see some abatement of the struggle of armaments. Mr. Churchill replied:

That depends on the result. If we succeed, and if, as the result of our victory, Europe is rearranged, as far as possible, with regard to the principle of nationality, and in accordance with the wishes of the people who dwell in the various disputed areas, we may look forward with hope to a great relaxation and easement. But if Germany wins it will not be the victory of the quiet, sober, commercial elements in Germany, nor of the common people of Germany with all their virtues, but the victory of the blood and iron military school, whose doctrines and principles will then have received a supreme and terrible vindication.

"I cannot understand," he continued, "why Germany has not been contented with her wonderful progress since the Battle of Waterloo. For the last half century she has been the centre of Europe; courted by many; feared by many; treated with deference by all. No country has had such a reign of prosperity and splendour, yet all the time she has been discontented; solicitous of admiration; careless of International Law; worshipping force and giving us all to understand that her triumphs in the past and her power in the present were little compared to what she sought in the future.

"And now the great collision has come, and it is well that the democratic nations of the world—the nations, I mean, where the peoples own the Government, and not the Government the people—should realise what is at stake. The French, English, and American systems of government by popular election and parliamentary debate with the kind of civilisation which flows from such institutions are brought into direct conflict with the highly efficient Imperialist bureaucracy and military organisation of Prussia. That is the issue. No partisanship is required to make it plain. No sophistry can obscure it."

I asked whether the democracy of the United States, apart from the moral issues involved, had any direct interests in the result of the war.

"You are the judges of that," replied the First Lord. "You do not require me to talk to you of your interests. If England were to be reduced in this war, or another which would be sure to follow from it if this war were inconclusive, to the position of a small country like Holland, then, however far across the salt water your country may lie, the burden which we are bearing now would fall on to your shoulders.

"I do not mean by that that Germany would attack you, or that if you were attacked you would need to fear the result so far as the United States was concerned. The Monroe Doctrine, however, carries you very far in South as well as North America; and is it likely that victorious German militarism, which would then have shattered France irretrievably, have conquered Belgium, and have broken for ever the power of England, would allow itself to be permanently cut off from all hopes of that oversea expansion and development with which South America alone can supply it?

"Now the impact is on us. Our blood which flows in your veins should lead you to expect that we shall be stubborn enough to bear that impact. But if we go down and are swept in ruin into the past, you are the next in the line.

"This war is for us a war of honour; of respect for obligations into which we have entered; and of loyalty towards friends in desperate need. But now that it has begun it has become a war of self-preservation. The British democracy, with its limited monarchy, its ancient Parliament, its ardent social and philanthropic dreams, is engaged for good or for ill in deadly grapple with the formidable might of Prussian autocratic rule. It is our system of civilisation and government against theirs. It is our life or theirs.

"We are conscious of the greatness of the times. We recognise the consequence and proportion of events. We feel that, however inadequate we may be, however unexpected the ordeal may be, we are under the eye of history, and, the issue being joined, England must go forward to the very end."

While I was speaking to Mr. Churchill a telegram came in from Belgium announcing the total destruction of the town of Louvain as an act of military execution. Handing it to me, he said: "What further proof is needed of the cause at issue? Tell that to your American fellow-countrymen. You know," he added, "I am half American myself."

The most remarkable demonstration of enthusiastic loyalty, however, came from India. It was no surprise to those acquainted with the conditions in our great Asiatic Empire to know that all classes and creeds were united in their devotion to the British Crown; but it was evident from the comments which followed the statements in Parliament on September 9th that the munificent offers made to the Viceroy had astonished the whole world. By the middle of August it was known that many Indian Chiefs had been addressing inquiries to the Viceroy in the spirit of the ruler of the ancient State of Rewa, who wrote: "What orders from His Majesty for me and my troops?"

On September 9th, the Marquis of Crewe, the Secretary of State for India, in the House of Lords, and Mr. Charles Roberts, Under-Secretary of State for India, in the House of Commons, read telegrams from the Viceroy summarising the offers of the Indian chiefs. Amid glowing excitement and enthusiasm, the Houses learned that Sir Pertab Singh despite his seventy years "would not be denied his right to serve the King-Emperor," and that he was taking with him among his troops his young nephew, the Maharaja of Cooch Behar, a boy of sixteen. The State of Nepal sent seven battalions of Gurkhas, and there were many other offers of men, money, and jewels. The following long cablegram sent by the Viceroy to the Secretary of State for India on September 8th describes the offers of service:

Following is a summary of offers of service, money, etc., made in India to the Viceroy. The rulers of the Native States in India, who number nearly 700 in all, have with one accord rallied to the defences of the Empire and offered their personal services and the resources of their States for the war.

From among the many Princes and nobles who have volunteered for active service, the Viceroy has selected the Chiefs of Jodhpur, Bikaner, Kishangarh, Rutlam, Sachin, Patiala, Sir Pertab Singh, Regent of Jodhpur, the Heir-Apparent of Bhopal and a brother of the Maharaja of Cooch Behar, together with other cadets of noble families. The veteran Sir Pertab would not be denied his right to serve the King-Emperor, in spite of his 70 years, and his nephew, the Maharaja, who is but 16 years old, goes with him.

All these have, with the Commander-in-Chief's approval, already joined the Expeditionary Forces. The Maharaja of Gwalior and the Chiefs of Jaora and Dholpur, together with the Heir-Apparent of Palanpur, were, to their great regret, prevented from leaving their States. Twenty-seven of the larger States in India maintain Imperial Service troops, and the services of every corps were immediately placed at the disposal of the Government of India on the outbreak of war.

The Viceroy has accepted from twelve States contingents of cavalry, infantry, sappers, and transport, besides a camel corps from Bikaner, and most of them have already embarked. As particular instances of generosity and eager loyalty of the Chiefs, the following may be quoted: Various Durbars have combined together to provide a hospital ship, to be called "The Loyalty," for the use of the Expeditionary Forces. The Maharaja of Mysore has placed Rs.50 lacs at the disposal of the Government of India for expenditure in connection with the Expeditionary Force.

The Chief of Gwalior, in addition to sharing in the expense of the hospital ship, the idea of which was originated with himself and the Begum of Bhopal, has offered to place large sums of money at the disposal of the Government of India and to provide thousands of horses as remounts. From Loharu, in the Punjab, and Las Bela and Kalat, in Baluchistan, come offers of camels with drivers, to be supplied and maintained by the Chiefs and Sardars.

Several Chiefs have offered to raise additional troops for military service should they be required, and donations to the Indian Relief Fund have poured in from all States. The Maharaja of Rewa has offered his troops, his treasury, and even his private jewellery, for the service of the King-Emperor. In addition to contributions to the Indian Fund, some Chiefs, namely, those of Kashmir, Bundi, Orchha, Gwalior and Indore, have also given large sums to the Prince of Wales' Fund.

The Maharaja of Kashmir, not content with subscribing himself to the Indian fund, presided at a meeting of 20,000 people held recently at Srinagar, and delivered a stirring speech, in response to which large subscriptions were collected.

Maharaja Holkar offers, free of charge, all horses in his State army which may be suitable for Government purposes. Horses also offered by Nizam's Government, by Jamnagar and other Bombay States. Every chief in the Bombay Presidency has placed the resources of his State at the disposal of Government, and all have made contributions to the relief fund.

Loyal messages and offers also received from Mehtar of Chitral and tribes of Khyber Agency as well as Khyber Rifles.

Letters have been received from the most remote States in India, all marked by deep sincerity of desire to render some assistance, however humble, to the British Government in its hour of need.

Last, but not least, from beyond the borders of India have been received generous offers of assistance from the Nepal Durbar; the military resources of the State have been placed at the disposal of the British Government, and the Prime Minister has offered a sum of Rs.3 lakhs to the Viceroy for the purchase of machine guns or field equipment for British Gurkha regiments proceeding over-seas, in addition to large donations from his private purse to the Prince of Wales' Fund and the Imperial Indian Relief Fund.

To the 4th Gurkha Rifles, of which the Prime Minister is honorary colonel, the Prime Minister has offered Rs.30,000 for the purchase of machine guns in the event of their going on service.

The Dalai Lama of Tibet has offered 1,000 Tibetan troops for service under the British Government. His Holiness also states that Lamas innumerable throughout the length and breadth of Tibet are offering prayers for success of British Army and for happiness of souls of all victims of war.

The same spirit has prevailed throughout British India. Hundreds of telegrams and letters received by Viceroy expressing loyalty and desire to serve Government, either in the field or by co-operation in India. Many hundreds also received by local administrations. They come from communities and associations, religious, political, and social, of all classes and creeds, also from individuals offering their resources or asking for opportunity to prove loyalty by personal service. Following may be mentioned as typical examples:

The All-India Moslem League, the Bengal Presidency Moslem League, the Moslem Association of Rangoon, the trustees of the Aligarh College, the Behar Provincial Moslem League, the Central National Mohammedan Association of Calcutta, the Khoja Community and other followers of Aga Khan, the Punjab Moslem League, Mohammedans of Eastern Bengal, citizens of Calcutta, Madras, Rangoon, and many other cities, Behar Landholders' Association, Madras Provincial Congress, Taluqoars of Oudh, Punjab Chiefs' Association, United Provinces Provincial Congress, Hindus of the Punjab, Chief Khalsa Diwan representing orthodox Sikhs, Bohra Community of Bombay, Parsee Community of Bombay.

Delhi Medical Association offer field hospital that was sent to Turkey during Balkan War; Bengalee students offer enthusiastic services for an ambulance corps, and there were many other offers of medical aid; Zemindars of Madras have offered 500 horses, and among other practical steps taken to assist Government may be noted the holding of meetings to allay panic, keep down prices, and maintain public confidence and credit. Generous contributions have poured in from all quarters to Imperial Indian Relief Fund.

The Secretary of State for India further announced that, in addition to the offers of service and assistance in connection with the war, which had been made in India to the Viceroy, the following offers had been received from Chiefs and others residing in this country:

Their Highnesses the Maharaja and the Maharani Maji Sahiba of Bharatpur: (1) The whole resources of their State; (2) Two motor-cars and a chauffeur, with all expenses; (3) Rs.2,000 to the Indian Relief Fund.

His Highness the Raja of Akalkot: Personal service in the field.

His Highness the Raja of Pudukota: "All I possess"; expresses his anxiety to serve in any capacity. Has placed his motor-car at the disposal of Government, and is returning to India to raise, subject to approval, a regiment of his subjects to release a Regular regiment.

His Highness the Gaekwar of Baroda: All his troops and resources.

Mir Ghulam Ali Khan of Khairpur: Personal service in the field.

The British Indian residents in this country of every class and creed, added the official statement, had been forward with loyal and generous offers of personal services and help.

At the same time the India Council issued a summary of the proceeding in the Viceroy's Council, from which it was evident that all the members, Hindus and Mohammedans, were eager to emphasise the fact that the various sections of the populace they represented wished to do all in their power to help the Empire at such a critical period. The text of the passage of Lord Hardinge's speech in the Viceroy's Council dealing with the dispatch of troops from India to the seat of war was as follows:

It is no longer a secret that India has already dispatched two splendid divisions of infantry to Europe and one cavalry brigade, while three more cavalry brigades will follow immediately. That we have been in a position to send over 70,000 combatants to fight for the Empire across the seas is a source of pride and satisfaction to India as a whole, and with the knowledge that practically all the ruling chiefs have placed their military forces and the resources of their States at the disposal of the Government, it is clear that we are not at the end of our military resources.

Among the chiefs selected to accompany the expeditionary force are the Maharaja Sir Pertab Singh, the Maharajas of Bikanir, Patiala, Rutlam, Kishengarh, and Jodhpur, the Nawabs of Jaora, Sachin, and Bhopal, and also the Malik Umar Hayat.

Steps were taken to circulate the announcement widely throughout the world; and Lord Lansdowne, in welcoming the offer in the House of Lords, remarked:

Few in this country realise how great a thing it is that these ruling chiefs should come forward in this way to assist us. I wonder how many realise that the Maharaja of Mysore rules over a population which exceeds that of Sweden, that the Maharaja Scindia of Gwalior has more subjects than the King of Denmark, that the Nizam of Hyderabad governs a people three times as numerous as the people of Ireland.

It is no small thing that these rulers should have come forward without exception and given practical proof of their desire to help. On behalf of those who sit on this side of the House I congratulate the Marquis of Crewe on the manner in which the India Office has been supported at this critical time, and I congratulate the Viceroy, to whom, at the moment when he must have had many sad preoccupations, the response of the people of India must have brought consolation and encouragement.

Our cordial thanks ought also to be conveyed to the people of India and to the loyal chiefs who have stood by us in so conspicuous a manner.

In response to the offers of help, the King was pleased to issue the following message:

To the Governments and Peoples of My Self-Governing Dominions

During the past few weeks the peoples of My whole Empire at Home and Overseas have moved with one mind and purpose to confront and overthrow an unparalleled assault upon the continuity of civilisation and the peace of mankind.

The calamitous conflict is not of My seeking. My voice has been cast throughout on the side of peace. My Ministers earnestly strove to allay the causes of strife and to appease differences with which My Empire was not concerned. Had I stood aside when in defiance of pledges to which My Kingdom was a party the soil of Belgium was violated and her cities laid desolate, when the very life of the French nation was threatened with extinction, I should have sacrificed My honour and given to destruction the liberties of My Empire and of mankind. I rejoice that every part of the Empire is with Me in this decision.

Paramount regard for treaty faith and the pledged word of rulers and peoples is the common heritage of Great Britain and of the Empire.

My peoples in the Self-governing Dominions have shown beyond all doubt that they wholeheartedly endorse the grave decision which it was necessary to take.

My personal knowledge of the loyalty and devotion of My Oversea Dominions had led me to expect that they would cheerfully make the great efforts and bear the great sacrifices which the present conflict entails. The full measure in which they have placed their services and resources at My disposal fills Me with gratitude, and I am proud to be able to show to the world that My Peoples Oversea are as determined as the People of the United Kingdom to prosecute a just cause to a successful end.

The Dominion of Canada, the Commonwealth of Australia, and the Dominion of New Zealand have placed at My disposal their naval forces, which have already rendered good service for the Empire. Strong Expeditionary forces are being prepared in Canada, in Australia, and in New Zealand for service at the Front, and the Union of South Africa has released all British Troops and has undertaken important military responsibilities, the discharge of which will be of the utmost value to the Empire. Newfoundland has doubled the numbers of its branch of the Royal Naval Reserve and is sending a body of men to take part in the operations at the Front. From the Dominion and Provincial Governments of Canada large and welcome gifts of supplies are on their way for the use both of My Naval and Military Forces and for the relief of the distress in the United Kingdom which must inevitably follow in the wake of war. All parts of My Oversea Dominions have thus demonstrated in the most unmistakable manner the fundamental unity of the Empire amidst all its diversity of situation and circumstance.

To the Princes and Peoples of India, the King-Emperor sent a special message. The first two paragraphs were identical in wording with those in the message sent to the Dominions. The message to India then continued:

Paramount regard for treaty faith and the pledged word of rulers and peoples is the common heritage of England and of India.

Among the many incidents that have marked the unanimous uprising of the populations of My Empire in defence of its unity and integrity, nothing has moved me more than the passionate devotion to My Throne expressed both by My Indian subjects, and by the Feudatory Princes and the Ruling Chiefs of India, and their prodigal offers of their lives and their resources in the cause of the Realm. Their one-voiced demand to be foremost in the conflict has touched My heart, and has inspired to the highest issues the love and devotion which, as I well know, have ever linked My Indian subjects and Myself. I recall to mind India's gracious message to the British nation of goodwill and fellowship, which greeted My return in February, 1912, after the solemn ceremony of My Coronation Durbar at Delhi, and I find in this hour of trial a full harvest and a noble fulfilment of the assurance given by you that the destinies of Great Britain and India are indissolubly linked.

At the very beginning of the struggle, Germany had made a determined effort to win the friendship of the United States. From the great American Republic the great European autocracy wanted three things: moral support, money, and assistance in rescuing the German mercantile marine. German shipping to the amount of hundreds of thousands of tons was imprisoned in American ports; to venture outside would have been to court disaster from the strong squadrons of the British and French cruisers in the Atlantic. It was therefore suggested by the numerous Germans in New York and Washington, and by Germans who had become naturalised Americans, that with a view to the restoration of American shipping it would be a good plan to purchase from Germany the numerous German liners lying idle in American waters. The scheme did not make sufficient progress for any definite amount of money to be mentioned; but it was stated that the value of the steamers was estimated at £20,000,000—a sum which would have been very useful to Germany in carrying on the campaign.

Acting under instructions from their Governments, protests were lodged at Washington by the British and French Embassies against this proposed transfer of German merchant shipping to a neutral flag. Legally the transfer would have been objectionable; and in any case the scheme was supported in America almost entirely by financiers of German extraction and was bitterly opposed by all American shipowners and shipbuilders. It is satisfactory to state that the New York correspondent of The Daily Telegraph, cabling on September 1st, said that the American Government had decided not to buy the German vessels, but would confine itself to purchasing neutral ships only.

Apart from this matter, the sympathies of the United States, in spite of the fact that some 30,000,000 of its inhabitants were of German extraction, were favourable to the Allies and not to the Teutonic Powers. The German case was set forth in many American newspapers with all the force of which the German Press Bureau was capable; and many well-known German professors used their influence to show that the struggle was one between culture and barbarism, the culture being represented by Germany and the barbarism by Russia. Whatever sympathy such statements as these aroused at first was speedily transferred to the other side when the American public began to hear, not merely of the German atrocities in Belgium, but of the brutal manner in which the neutrality of small and friendly countries such as Belgium and Luxembourg had been violated by the invaders. The German Ambassador at Washington, Count Bernstorff, was kept busy explaining why "strictness" was necessary in warfare; but no one took kindly to his explanation regarding the burning of Louvain, viz.: "War is not an afternoon tea-party."

By the end of August, some of the American papers began to wonder why the German Press agents in America were able to flood the Press with what they alleged to be the only trustworthy news respecting the situation at the front. It was said that this news was being sent by wireless to the German Embassy at Washington by way of the Sayville Wireless Station. An investigation at Washington disclosed the interesting fact that the Sayville Wireless Station could not possibly be in direct communication with Germany, as the distance was too great. The German Ambassador's explanation was that the messages were being relayed by German warships; but this was not credited, as it was known that very few German warships were in the Atlantic and that they were being kept continually on the move by the British and French Fleets.

Various organisations, both in Germany and in the United States, attempted to appeal to American sentiments by issuing pamphlets containing alleged facts regarding the campaign. The influence of these pamphlets, however, was a great deal more than balanced by the Chancellor's contemptuous reference to the "scrap of paper," described in the first chapter of this book.

Furthermore, it was pointed out in the American Press that Germany, so far as her social and military system was concerned, represented the antithesis of American ideals, and that a victory for Germany would inevitably lead to the imposition of her strict military system upon the world in general. Again, as a result of the falling off in imports from England, France, and Germany, the American customs receipts declined very considerably, and it was announced early in September that it would be necessary, in view of this falling off, to raise some £20,000,000 by internal taxation. The American Press promptly blamed the Kaiser for thus inconveniencing the financial arrangements of the United States, and the feeling against Germany in America became stronger than ever.

By way of climax, a striking expression of opinion came from one of the best-known American educationalists, Professor W.G. Hales. Professor Hales communicated his views to the London correspondent of the New York Times, in which paper they appeared on September 7th. He advocated an immediate declaration of war by the United States against Germany for the latter's violation of The Hague Conventions, particularly in its use of floating mines and its destruction of Louvain.

"What has always been wanted," continued Professor Hales, "is a sanction for the pacts of nations. There could be no more splendid sanction than the declaration of a great nation outside the immediate conflict that, where she is a party, they shall, so far as lies in her power, be kept sacred.

"Germany has confessed enough. Louvain has been blotted out. For the German planting of mines in the open sea alone it is our duty to declare war. The facts have changed the whole aspects of things, since President Wilson's plea for patience was made. We should ourselves guarantee the commerce of neutrals and of the allied nations, leaving the English Fleet free to do its separate work. We should, by this mere act of declaration, shut off food from Germany. We should take our part in the great struggle instead of smugly sitting by while the world's work is done by other nations. Even Germany would then know that her plot against humanity had been both judged and doomed. The insolent cry, 'Deutschland über Alles', provides no exception for the United States. At the moment of Germany's success we must transform ourselves into a nation whose first business is war. Through South America she would strike at us next.

"I have been all my life a fighter for peace, but I appeal to President Wilson, the Senate, and my private fellow-citizens, of whatever descent, to end the system of aggression and defence by arms, and to replace it with international law and international police."

CHAPTER VI

The Economic Position—Moratorium Extension—Great Britain's Oversea Trade—Germany's Commerce—Question of Food Supplies—Importance of the Balkans—"Petrograd."

In the midst of military, diplomatic, and political turmoil, the responsible departments of the Government paid very necessary attention to finance. In the course of an interesting speech in the House of Commons on August 26th, Mr. Lloyd George showed that he was looking after the financial and commercial welfare of the country. His speech ranged over a variety of subjects, and he indicated that the new £1 and 10s. notes would in time be regarded as a recognised part of the regular currency, and that they would not be entirely supplanted by the coming issue of certificates. As to the latter, the Chancellor of the Exchequer stated that their object was really to create credit. This might be considered, if taken literally, a somewhat dangerous statement; but the hope was generally expressed that care would be taken in granting these certificates and preventing their over issue. As this speech was of considerable importance, a quotation from the official reports is given below:

The Chancellor of the Exchequer said he did not know why there should be any scarcity of silver. It was not due to any shortage of the issue from the mint, and it looked as if there had been some hoarding, a very stupid thing. When the public got more accustomed to the 10s. and £1 notes there would be less difficulty in getting silver. With regard to the design of the new notes they would be totally different from the designs of the Scottish notes, some of which were beautiful.

They had had to consider a good many things, such, for instance, whether the notes would be easily forgeable. Then they must have a watermark which could be easily seen. For these reasons they had had to disregard the very artistic designs of the Scottish notes. It was much more difficult to imitate simplicity. Therefore, they had decided in favour of the simple note because once they had started this currency it might very well become quite popular and part of the regular currency.

With regard to the certificates the object was really that they should rather create credit without issuing the actual notes. It was purely a certificate that the banks were entitled to so much currency. They need not draw upon it, although they could, and the knowledge that they had got so much credit at the Treasury enabled them to make their arrangements for financing the trade of the country.

A question raised by Sir A. Markham with regard to the clearing of German notes touched a very difficult, dangerous, and delicate operation. The real danger was that somehow or other bills which were due for this country to Germany might be honoured. For that reason they had to take very great care that the transaction was not one-sided. He hoped to be able in the course of the next few days to set up some form of machinery that would attempt the operation, but they must take very good care that they were not financing the enemy. Certificates would only cover the case of banks; they would not cover insurance companies.

Proceeding, Mr. Lloyd George said that with regard to the general question it was certainly desirable that a statement should be made as to the arrangements entered into by the Government with regard to the finance of the country, and he hoped in the course of a few days to do so.

There were two or three very special difficulties as to which he had not, personally, been able to make up his mind. The first was with regard to the moratorium. A number of hon. gentlemen thought it ought to be brought to a speedy termination. (Cries of "No," and "Hear, hear.") He would tell the House what had been done on the subject. He had issued a questionaire to some of the leading traders of the country; he had not merely consulted bankers in the City of London. Up to three o'clock that day he had received something like 8,000 replies to the question which he had put. They were in the proportion of something like 4,500 in favour of bringing the moratorium to an end on September 4th, to 3,500 in favour of extending it.

Bankers and financing houses were almost unanimously in favour of extending it.

Retail traders were in favour of putting an end to it, but only by a majority.

Manufacturers, he should say, were two to one in favour of bringing it to an end, but the one-third represented very important interests in the manufacturing world. They were very much afraid that if it were brought to an end there might be a crash. It was therefore a thing that could not be decided altogether by a majority.

Merchants, both in the foreign and home trades, were in favour of an extension of the moratorium.

He was inclined to consider whether it was possible to get a limited moratorium, which would protect those particular interests without interfering with those who would rather have no moratorium at all. While about 10,000 forms of inquiry had been issued, that did not represent all that had been done. He had endeavoured to ascertain the opinions of bakers, butchers, and other retailers through their societies. The result was that they were hopelessly divided on the subject. The Government would have to come to a decision within the next few days.

As an instance of different points of view, he might mention that at a meeting of traders at the Treasury last week, one gentleman said that as a colliery proprietor he would like to bring the moratorium to an end, but as a merchant he would like it to continue. He agreed that the steps which had been taken with regard to the discontinuing of bills involved risks, but this was a time when they must take risks; they must keep up the credit of the country, so that they might not find at the end of the war that the important business which they had been transacting for the whole civilised world had passed away to some other country.

A good deal depended on the banks. The Government had done for the banks as much as they could have expected. But the Government did not do it in order to strengthen the banks' finances or to increase their business, but to enable them to finance the trade of the country. If the Government and the country were prepared to take risks, the banks must take risks. He agreed that a very considerable number of banks had behaved admirably. He thought that the action of other banks had been due to timidity and over-caution. They had to think about their own depositors. He did not think they were considering their shareholders or the price of their shares, but they considered themselves to be trustees of their depositors.

The time had come, however, when the banks ought to make advances with the credit of the State behind them. He had called the attention of the banks to complaints he had received, and had said that unless the traders received the usual and even greater facilities for carrying on in this special emergency, he had no doubt the House of Commons would take action which would place behind the trade of the country the necessary credit. He was glad to be able to say that the banks had come to the conclusion, after careful consideration, that they could finance business much more liberally than they were able to do during the first fortnight.

An hon. member had called attention to the fact that the foreign exchanges had broken down, and that the bridge had not been quite repaired. That was true. It had been a very sudden snap of communications. He hoped every day for improvement, but if it was necessary to take any further action in order to expedite matters, then he might have to come to the House of Commons. But he did not think it was. The discounting of bills would have the effect that the banks would find it necessary in their own interest to use the liberated cash for the purpose of financing trade.

Later, on September 8th, Mr. Lloyd George, replying to a deputation from the Association of Municipal Corporations at the Treasury, referred to the important part which finance would play in the war. In the course of his speech he said:

In my judgment the last few hundred millions may win this war. This is my opinion. The first hundred millions our enemies can stand just as well as we can; but the last they cannot, thank God; and therefore I think cash is going to count much more than we can possibly imagine at the present moment. We are only at the beginning now. Of course if we have great victories and smashing victories that is all right, but then they may not come yet. We may have fluctuations, and things may last long.

We are fighting a very tough enemy, who is very well prepared for the fight, and he will probably fight to the very end before he will accept the only conditions upon which we can possibly make peace, if we are wise.

We financed Europe in the greatest war we ever fought, and that is what won. Of course, British tenacity and British courage always come in, and they always will; but let us remember that British cash told too. When the others were absolutely exhausted we were getting our second breath, and our third and our fourth, and we shall have to spend our last before we are beaten. I want the municipalities to remember that.

Our trade is not going. The seas are ours, and they will remain ours. We shall get not merely our own trade, except that of European countries, but we shall get a good deal of the enemy's trade as well, and, of course, there is always the business which is necessary in order to keep the war going. So that there will be a great deal of employment in the ordinary course of business.

While we are on this subject of finance and economics, it may be well to refer briefly to Germany's position. It was known that Germany alone among the European Powers kept a well filled war chest. It was understood that up to 1913, the war reserve amounted to £6,000,000 in gold. Under the new Army Law of 1913, it was stipulated that this reserve should be trebled. There was reason to believe that in addition the German Government had put aside for the purposes of the present war about £30,000,000 out of the £50,000,000 which it had been hoped to raise by last year's special war levy. Although some of this cash was spent on preparing the new Army Corps, and possibly also in strengthening the fortresses, it was generally believed that the greater part of it was kept in reserve to meet the initial expenses of the present campaign.

In addition to this, of course, large sums were obtained from Belgium in the form of war levies. The Province of Brabant, for example, was mulcted to the extent of £18,000,000, Brussels to the extent of £10,000,000, Liège £2,000,000, and smaller towns in proportion. From the cities on the French border, as well as from various towns in Belgium, large supplies of stores and food were also demanded, sometimes in addition to money and sometimes as a substitute.

These amounts, large as they are, would not seem sufficient to carry on the war for any great length of time. Some calculations were made by Paris Correspondents of the Daily Telegraph at the outbreak of the campaign. The minimum cost was estimated there at £400,000,000.

The figures given by military writers coincided and agreed that about 8,500,000 men were under arms for land warfare. To these must be added 340,000 seamen. If the Balkan War were taken as an example, the cost of each man mobilised amounts to 10s. a day. This gives about £4,400,000 daily, or £132,000,000 monthly.

This figure is, however, considerably short of the mark, because it does not take into account the maintenance of the armies and fleets.

The German Reichstag authorised extraordinary expenditure to the extent of £250,000,000 to be obtained by a loan, and a further sum of £14,000,000 to be drawn on the gold and silver reserve of the Empire.

It is now well known that the tax of 5 per cent. on the stock of notes issued by the Reichsbank over and above its reserve in metal has been suppressed. The German Government will therefore secure the loan required by an issue of bank notes uncovered by a reserve of gold and silver.

This issue reminds one of the assignats of the first French Revolution, of which a few samples are kept as curious heirlooms in French families.

It was stated in Paris that the Austrian army on a war footing cost the Empire £800,000 a day, but the Austrian Treasury was emptied by the mobilisation during the Balkan wars, which drained the financial resources of the Empire for more than a year, and it is hard to see where the Austrian Monarchy can find the large sums required to keep the Imperial and Royal armies and navy during the present war.

There were many reasons that might be brought forward to show how Mr. Lloyd George was justified in asserting that England could stand the financial strain better than Germany. One great factor was responsible for this, namely, the command of the sea. It is true that during the war our trade with Germany, Russia, and France must be practically at a standstill. There are even pessimists who say that our general European trade must be severely crippled until the campaign is over. Even if we assume this to be the case, however, there is, relatively speaking, no cause for despondency. Our exports last year were valued at over £525,000,000. If most of these exports had been sent to European countries, there might possibly be some ground for concern. Of the huge total, however, the countries with which we are at war, Germany and Austria, took exports from us to the value of only £45,000,000; and our exports to every European country, including Germany and Austria, amounted to less than £180,000,000.

Expressed in other words, this means that roughly speaking, one-third of our exports went to European countries, and two-thirds to countries in other parts of the world. We have thus about two-thirds of our ordinary export trade to come and go on—thanks to our command of the sea—and, thanks to our command of the sea also, the oversea commerce of Germany and Austria has for the time being completely broken down. In view of this fact, the significance of which has hardly yet been generally appreciated, it is possible for us at the present time to capture, if not all, at least a large proportion of orders from oversea countries which in the ordinary way would be given to German or Austrian firms. It would be foolish to say, of course, that our economic life can proceed as usual during a European war in which we are involved; but it cannot be too emphatically pointed out that our economical conditions here are, or can at least be made, infinitely superior to those prevailing in the countries with which we are at war, or even in Russia or France. German commerce is ruined; our commerce can be made almost normal.

Take another point. We have a very large income from our investments abroad, which are valued at rather more than £4,000,000,000. It is estimated that our yearly income from this source is £200,000,000, and, in addition, for services rendered internationally, our bankers, brokers, shipping firms, and so on, receive an additional sum of £150,000,000. That is to say, in exchange not for goods but for services, we receive from various nations about £350,000,000 every year. True, a large proportion of this sum is derived from investments in countries affected by the war; and, on account of the war, many of these normal returns have fallen off. It must nevertheless be remembered that much of this large income comes to us from countries which are only slightly, if at all, affected by the dislocation—from India, for instance; Spain, the United States, all our own oversea dominions, and South America. Our interests in Central and South America alone are valued at £1,300,000,000.

There are other points to be remembered in connection with our position as traders. At least ten million men in France, Russia, and Germany have now been withdrawn from industry and are engaged in war. The effect of this on the remainder of the adult population and on normal production is naturally very considerable. In this country we have not as yet found it necessary to withdraw such large numbers of men from their ordinary work. Practically half a million men have joined the second army, and another half-million are asked for. The withdrawal of a million men from our industries is not likely to be seriously felt, especially as many thousands of these men will be taken from non-productive occupations. There is, therefore, no reason why we should not continue our normal export trade as well as—though of course to a smaller extent—our carrying trade.

And now for a glance at Germany's exports. In 1912 they amounted to £440,000,000, and of this figure £106,000,000 represented raw material, and no less than £295,000,000 manufactured articles. Such things as clocks, toys, musical instruments, paints, paper, glassware, iron and steel goods, gloves, hardware, and cutlery were poured into every country in the world. We ourselves took £70,000,000 worth of this stuff; India £6,000,000 worth; Australia £7,000,000; and Canada and South Africa about £3,000,000 worth each. To Argentina, in 1912, went German goods valued at nearly £13,000,000, and to the United States manufactured articles worth nearly £12,000,000. These are a few instances; the consular reports and Board of Trade statistics will furnish several others. A determined attempt must now be made to secure this trade. We shall, of course, have to compete with the United States, where for two or three years past eager attention has been paid to the possibilities of developing the South American market.

Germany, it must be remembered, did not enter upon this campaign without taking into consideration her own economic position, and especially her food supplies. Whether she was able to carry out the plans she knew she ought to carry out is another matter. The advanced state of her mobilisation at the time she declared war on Russia and France made it quite clear that her decision to put her fortunes to the test of the sword had not been taken in a day. Not even the perfect Prussian military machine could have thrown so many troops against the frontiers of France and Belgium at short notice, and it is certain that the Berlin Government, in addition to giving its attention to the organisation of the fighting forces, must have seriously considered the question of the nation's food supply. Yet the circumstantial reports which have filtered through relating to "food riots" in the capital and other large towns indicate that this important matter—perhaps because it is civil rather than military—has not had the consideration to which it is entitled.

Germany is, indeed, in an unfortunate position if her food supply is running short at this early stage of the campaign. So seldom in the history of our own country have our trade routes been blocked for even a short time that it is not easy for us to realise the situation of a country which is dependent for a large proportion of its daily bread upon foreign countries and happens to be cut off from communication with them.

The latest figures show that Germany imported agricultural products and foodstuffs in 1913 to the value of £351,836,900. These figures show but a slight deviation from those of 1912 and 1911, a deviation which changes in the population easily explain. Even when we make every allowance for wines and various luxuries which are classified under this heading, we shall be on the safe side in saying that Germany must import necessary foodstuffs every year to the value of not less than £180,000,000. This is a huge total, and it is accounted for by the fact, which has caused some concern already to German statesmen, that from an almost purely agricultural country Germany has, since the Franco-German War, developed at a remarkable rate into an industrial country. The producer has left the farm for the factory, and though one result has been a vast increase in the wealth of the German Empire, another has been to leave the Empire more and more dependent upon foreign countries for its supplies of the necessaries of life.

Germany obtains a great deal of her meat, wheat, eggs, barley, coffee, maize, butter, etc., from beyond her borders. In 1913, for example, Russia sent her grain and cereals to the extent of 3,600,000 tons, valued approximately at £30,000,000. In 1912 Argentina exported to her grain and livestock products worth nearly £11,000,000. From Hungary she received last year cereals valued at £4,000,000; and even little Roumania contributed £1,000,000 worth of wheat to the total.

The following short table, giving the import figures for 1911 and 1913, will show to what extent Germany is indebted to foreign countries for some common grain and cereal products:

1911. 1913.

(£ sterling.) (£ sterling.)

Wheat 19,943,750 21,472,850

Barley 23,105,250 20,347,750

Maize 4,336,000 5,309,600

Rye 3,800,600 4,100,200

Oats 3,742,800 3,946,300

Rice 4,408,200 3,926,000

Cocoa 2,775,300 2,796,000

Coffee 12,578,450 12,450,500

Eggs 8,567,900 4,504,800

With her coast blockaded by the British Fleet; France, Belgium, and Russia hostile; and squadrons of the Navy alert for prizes in the Mediterranean and the Atlantic, it is not likely that Germany can rely upon any imports of food until the war is over. Austria-Hungary, at grips with Servia, will require for her own use all the food she can get, even if the Straits of Otranto were open. The hostility of Servia prevents any possibility of food being imported via Greece.

On this point a remarkable article, obviously inspired, and showing clearly enough why the Teutonic Powers were paying so much attention to the Balkans, appeared in the Frankfurter Zeitung so far back as January 7th, 1914. The writer said:

The countries comprising the Triple Alliance are changing daily from agricultural States to industrial States; and they are more and more compelled to depend upon the uninterrupted importation of their raw materials. A war with England, France, and Russia at the same time appears, fortunately, to be ever more improbable; but the possibility of such a conflict cannot be excluded, and far-seeing statesmen must reckon with it. The Triple Alliance countries, which are compelled to have recourse to large armies, cannot hope to compete successfully with the fleets of England and France on the high seas. In the event of a struggle, therefore, our oversea imports would, in a short time, be done away with, and our industries would languish for want of raw material. As things stand to-day, it is not merely the lack of wheat and meat that would drive the country to destruction. Coal and iron and heaven knows what else have also become essential to us. Where, then, shall the Triple Alliance countries look for their raw material if the sea routes are cut off? There is only one means of land communication, and it leads through Roumania, Bulgaria, and Turkey into Asia Minor. It follows that the Triple Alliance can never see this route barricaded by hostile States; the Triplice must keep this route open at all costs.... The German military mission in Constantinople is not merely helping to reorganise the Turkish army out of pure joy; it must, at the same time, serve both Turkey and the German Empire. One should also take notice of the determination of Germany and Austria not to consent to the proposal for the inter-nationalisation of the stretch of the Orient Railway between Adrianople and Constantinople. The States lying between the eastern border of Hungary and Asia Minor have, indeed, no choice; they must be the friends and allies of the Triple Alliance; or they must reckon with the unflinching hostility of the Triple Alliance in any conflict which threatens their independence. Austria, too, has no choice. Either the countries on the Lower Danube must be her friends, or she must seek to annihilate them. It is as Napoleon said: "the Power that commands Constantinople can command the whole world, provided that it can maintain itself there." And when Bismarck said that the whole Balkan Peninsula was not worth the bones of a Pomeranian grenadier, he could not have foreseen that this territory would one day become so essential a route for German imports that we should not, if necessary, shirk a conflict with Russia to maintain our freedom of trade there.

Servia, in this astonishing declaration, was not mentioned by name; but the hint to both her and Russia was sufficiently broad. Germany and Austria are cut off completely by the hostility of Servia; and, if Russia had not intervened, it is clear that this "means of land communication" would have been kept free from a "barricade," if any Power had thought of putting one up. In this connection it may be recalled that the White Paper relating to the European Crisis (Cd. 7,467) contains a significant telegram from Mr. H.D. Beaumont, of the International Financial Commission, to Sir Edward Grey:

Constantinople, July 29th, 1914.

I understand that the designs of Austria may extend considerably beyond the Sanjak and a punitive occupation of Servian territory. I gathered this from a remark let fall by the Austrian Ambassador here, who spoke of the deplorable economic situation of Salonika under Greek administration, and of the assistance on which the Austrian army could count from Mussulman population discontented with Servian rule.

The reference in the telegram was, of course, to the Bagdad concession; for Germany expected to be able to develop Asia Minor with the object of making it a country capable of furnishing the large proportion of foodstuffs and raw material which now enter Germany, from Russia, Argentina, Canada, France, and Great Britain. All the treaties and conventions relating to the concession specify this almost in so many words. Hence the desperate anxiety of Germany and Austria to secure Salonika as a port and to bring the Balkan States under Teutonic influence; since a single unfriendly nation—Servia, for instance—would have been an effective "barricade." The plan has failed and the failure has trebled the price of food in Austria and doubled it in Germany. Neither Government reckoned with a stern resistance; and the failure to do so has already led both countries well on the way to starvation.

Two instance of the bitterness with which the campaign was waged on both sides may be mentioned as a fitting conclusion to this volume. While the war was responsible for a good deal, one would hardly have expected it to affect the text of a Wagnerian music-drama. Yet the Vossische Zeitung gravely stated that "having regard to the fact that our ally, Austria-Hungary, and especially Hungary, is fighting so bravely by our side, Wagner's text to 'Lohengrin' was slightly altered at the opening performance in the Royal Opera House." In Wagner's own version Henry the Fowler sings, "Herr Gott, bewahr uns vor dem Ungarn Wut" ("Lord God, protect us from Hungaria's rage"). Knüpfer, who undertook the rôle, deleted the word "Ungarn" and substituted "Feinde" ("enemy")! The alteration is said to have been wildly applauded.

To balance this there is a Russian step to be referred to. On September 2nd the Telegraph's correspondent in the Russian capital announced that St. Petersburg was no more. An Imperial decree made it known that in future the Russian capital was to be called Petrograd. The change was in the air for some time. The German-sounding name of the city had long been a strange anomaly, and with the outbreak of war there was a widespread demand that it should be altered.

Among the Slav alternatives proposed were Petrogorod, Petrovsk, Petroff, and Sviato Petrovsk. The appellation actually selected is by no means novel in its use. There was a time when old-fashioned people pretty generally spoke of Petrograd, and not of Petersburg. The name now officially adopted for the capital is also applied to it in the works of Pushkin, Lermontoff, Alexei, Tolstoi, and Nekrasoff.

Dr. Dillon, commenting on the telegram, added:

What's in a name? The Russians hold that there is a good deal in it, else they would not have chosen the present moment to reconsider a proposal made many times during the past thirty-five years to change that of their capital on the Neva. The city heretofore known as St. Petersburg is in future to be called Petrograd. This apparent innovation is in reality a return to the old name which Peter the Great's second capital had borne from the beginning. All the old books published in that city during the latter part of Peter's reign and those of his immediate successors bear the word Petrograd on the title-pages. Grad and Gorod are two forms of the same word which means city or town. Etymologically it connotes an enclosed space, and belongs to the same root as the English word garden. It occurs in hundreds of Slav geographical names, as, for instance, in Novgorod—"new town"—Ivangorod, Elizabetgrad, Euxinograd. Constantinople itself is often called in Russian the "Emperor's city," Tsaregrad.

During the reigns of the Empresses Catherine, Anna, and Elizabeth the mania for adopting foreign names was rife in Russia, and on many places known in old Russian history German names were bestowed, most of which remain to this day.

After the Treaty of Berlin, when Count Ignatieff, who had been Russia's Ambassador in Constantinople, became at first Minister of the Interior and then President of the Slavonic Society, he, Komaroff, and a number of other Slavophiles inaugurated a movement in favour of altering those German names to their Russian equivalents, or to the original Slav appellations wherever there were any such. Before making the suggestion public Count Ignatieff asked me to draw up a list of those towns and cities, and to open a Press campaign in favour of the movement in the columns of the Press organ of the Imperial Russian Academy, the Peterburgskya Vedomosti, on the staff of which I was then a leader writer. I did so. But this attempt to Russify geographical names met with little support and encountered fierce opposition. The comic papers in particular made fun of it, and asked whether we would not include Oranienbaum—a summer residence near St. Petersburg—in our list, and call it Apelsinsk, or, say, in English "Orange-insk," and a number of other absurd translations were suggested for the benefit of the Slavophile reformers.

But the campaign was not wholly unsuccessful. The Emperor Alexander III., when he heard of it, is said to have remarked: "There is no need of going to extremes. But the cities which played a part in Russian history and had purely Russian names ought to have those names restored to them. And in this list we should include the university city of Dorpat and the city of Dunaburg. Henceforth they shall be known as Yurevo and Dvinsk." Among Russian Germans there was a great outcry at this "profanation," and most German prints and books—even those published in the Russian Empire—continued to refer to those towns as Dorpat and Dunaburg. But to-day they are known only as Yurevo and Dvinsk.

And now St. Petersburg has been added to the list.

In time, no doubt, Peterhof, Oranienbaum, Yekaterinburg, Orenburg, and a host of other places will also be rechristened, and Count Ignatieff's proposal will be fully carried out.

Wyman & Sons Ltd., Printers, London and Reading.